Fibre laser manufacturer IPG Photonics has generated revenue of $392.6 million and a net income of $115.6 million in the third quarter of 2017 ending 30 September, a significant 48 per cent and 69.2 per cent increase year-over-year respectively.
The results were driven mainly by a rapid growth in cutting, welding, and 3D printing applications, which saw materials processing sales increase by 52 per cent year-over-year, accounting for 95 per cent of the firm’s total sales throughout the quarter. Sales made to non-materials-processing markets declined by 9 per cent year-over-year.
China continued to demonstrate an impressive performance throughout the quarter, with sales to the region increasing more than 70 per cent year-over-year. European sales increased by 50 per cent year-over-year, while sales to Japan decreased by 10 per cent.
High-power laser sales increased 60 per cent year-over-year due to the growth in cutting and welding, while sales of QCW lasers increased 104 per cent thanks to growth in consumer electronics production.
Overall, revenue and net income for the first nine months of the year was $1.05 billion and $294.7 million respectively, up 44 per cent and 59 per cent compared to the first nine months of 2016. IPG Photonics exceeded $1 billion in annual sales for the first time at the start of 2017.
During the third quarter, IPG generated $163.7 million in cash from operations and used $55.6 million to finance capital expenditures. IPG ended the quarter with $1.05 billion in cash and cash equivalents and short-term investments, representing an increase of $215.3 million from 31 December 2016.
‘Based on our third quarter outperformance and current backlog, we are now targeting approximately 37 per cent to 39 per cent revenue growth for the full year, up from 32 per cent to 34 per cent previously,’ commented IPG CEO Dr Valentin Gapontsev. ‘This would represent our strongest annual revenue growth in six years.’
IPG Photonics expects revenue growth in the range of 18 per cent to 27 per cent year over year or $330 million to $355 million for the fourth quarter of 2017. The company anticipates earnings per diluted share in the range of $1.55 to $1.80 based on 54,698,000 diluted common shares, which includes 53,440,000 basic common shares outstanding and 1,258,000 potentially dilutive options at 30 September 2017.
‘Our revenue outlook reflects the expected slowdown in spending related to the consumer electronics investment cycle and typical seasonality in China,’ said Gapontsev.
IPG also intends to accelerate its ability to deliver products for the medical device industry in the future, having acquired laser system manufacturer Innovative Laser Technologies earlier this year.