IPG grows 14 per cent in Q4 2013, driven by materials processing
IPG Photonics has reported revenue growth of 14 per cent for Q4 2013, driven by 22 per cent increase in materials processing sales. The company ended the quarter with $448.8 million in cash and cash equivalents.
Net income for the quarter increased by 5 per cent, with the company’s profitability and margins affected by a $5.9 million inventory provision and $1.6 million from foreign exchange transaction losses.
Dr Valentin Gapontsev, IPG Photonics' CEO, commented: ‘High-power laser sales increased 24 per cent from the prior year, driven by cutting and welding applications, primarily used by automotive, heavy industry and general manufacturing.
‘For the full year, revenue grew 15 per cent primarily from high-power fibre laser sales,’ added Gapontsev. Asia was the strongest performing region for the company geographically.
In 2013, IPG expanded its R&D spending, as well as adding facilities and headcount in other areas.
‘Order flow in the fourth quarter was strong and the book-to-bill ratio was greater than one,’ said Gapontsev. At the end of 2013, IPG’s backlog, which included $132.6 million of orders with firm shipment dates and $132.4 million of frame agreements that are expected to ship within one year, grew to $265.0 million, a 31 per cent increase from year-end 2012.
‘Looking ahead, we are excited by IPG's prospects for growth in 2014,’ said Gapontsev. ‘Fibre laser technology continues to gain adoption over traditional laser technologies and non-laser technologies. The continued market penetration and acceptance of our existing products and new product introductions give us confidence in our opportunities to grow revenues, improve margins, and enter into new applications.’
IPG Photonics expects revenue in the range of $160 million to $175 million for the first quarter of 2014.