IPG sees $66M drop in first-quarter revenue, 34% drop in profits
Photo | Grant Welker
IPG Photonics is expanding its Oxford office campus.
Oxford's IPG Photonics reported Tuesday a nearly $66 million, or 21%, drop in first quarter revenue, a figure the laser manufacturer said was at the high end of its expectations during the coronavirus pandemic.
With less revenue, the company's profits for the first quarter decreased to $36.4 million, a 34% drop from the $55.2 million it earned in the first quarter 2019.
IPG was among the first Central Massachusetts corporations to report a hit from the outbreak when it was still largely limited to China. In February, the company announced a 7% revenue decline and said it expects roughly $45 million in reduced revenue from the outbreak.
Now, IPG says it's expecting sales to rebound in the second quarter. It also authorized a new stock buyback program of up to $200 million at a time when many companies are under heat for having bought back stock before the pandemic hit, leaving them with less cash to weather the downturn. IPG also had a $60-million buyback in February 2019.
IPG CEO Valentin Gapontsev said in a statement that first-quarter revenue was at the high end of what it expected due to a rebound in China-based demand during March and the strength in sale of new products.
The company's first quarter, which ended March 31, saw revenue drop nearly $66 million to $249 million. Operating income fell 34% to $44.8 million, and earnings per diluted share fell 33% to $0.68.
IPG is expecting a better second quarter, forecasting revenue of $260 million to $290 million.
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