IPG records strong 2013
Citing growing demand for fiber laser technology, Oxford’s IPG Photonics recorded a 15 percent growth in revenue for 2013 and strong numbers for the fourth quarter.
Revenue in the most recent quarter was $165.9 million, a 14 percent rise above the $145 million of 2012. CEO Dr. Valentin Gapontsev said materials processing makes up the majority of IPG’s business, with sales rising 22 percent. He said the growth is also attributable to high-power laser sales for materials processing applications, which were up by 24 percent over 2012 and “driven by cutting and welding applications, primarily used by automotive, heavy industry and general manufacturing.”
Net income for the fourth quarter improved to $36.6 million, or 70 cents per share, from $34.9 million, or 67 cents per share, last year.
For the year, revenue was $648 million, up from $562.5 million in 2012, with Asia being the strongest market for the company, according to Gapontsev. Net income was $155.8 million, or $2.97 per share, 7 percent above the previous year.
“In 2013, we invested in the business, substantially expanding IPG's R&D spending, as well as adding facilities and headcount in other areas. While this reduced growth of net income in 2013, it has strengthened and enhanced IPG's product portfolio, management and technological advantages, positioning IPG for further growth in 2014 and beyond,” Gapontsev said.
The company’s backlog, by the end of 2013, had grown 31 percent from the end of 2012 to $265 million. Roughly half of that were orders with set shipment dates while the other half were expected to ship within a year.
“Looking ahead, we are excited by IPG’s prospects for growth in 2014,” Gapontsev said. “Fiber-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 said it expects revenues between $160 and $175 million for the first quarter of 2014 with earnings per share ranging from 69 to 83 cents.
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