IPG Photonics exceeds $1.4 billion in yearly revenue
Fibre laser manufacturer IPG Photonics achieved $1.41 billion in yearly revenue throughout 2017, a 40 per cent increase over the $1.01 billion recorded last year. Net income for the year was $347.6 million, an increase of 33 per cent over the $260.8 million posted at the end of 2016.
Fourth quarterly revenues totalling $361.1 million were posted to conclude the year, a 29 per cent increase year-over-year. During the quarter IPG generated $108 million in cash from operations and used $27 million to finance capital expenditures. The firm therefore ended the year with $1.12 billion in cash and cash equivalents and short-term investments, representing an increase of $286 million from 31 December 2016.
‘We capped off one of the strongest growth years in IPG's history with a record fourth quarter, driven by accelerating adoption of our high-power fibre lasers across our largest applications and geographies,’ said Dr Valentin Gapontsev, IPG Photonics CEO. ‘Order flow was strong in the fourth quarter with our book-to-bill ratio at 1.0, representing solid performance in light of our record quarterly revenue. Backlog of orders with firm shipment dates increased by 44 per cent to $326 million. Backlog of non-binding frame agreements increased by 123 per cent to $417 million.’
Materials processing sales accounted for approximately 94 per cent of IPG’s fourth quarterly revenue, an increase of 32 per cent year-over-year, demonstrating particular strength in cutting, welding and 3D printing applications.
High-power laser sales increased 40 per cent year-over-year for the quarter, while pulsed laser sales increased by 20 per cent. Growth in systems and beam delivery accessories led to sales of other laser products increasing by 24 per cent year-over-year.
On a geographical basis, IPG achieved double-digit year-over-year sales growth in China, Europe, North America and Turkey, with sales also growing modestly in Japan.
For the first quarter of 2018 IPG expects revenue growth in the range of 15-24 per cent year-over-year, or $330 million-$355 million. For the full year the firm is targeting revenue growth of 10-15 per cent.