IPG Photonics Updates Guidance for Second-Quarter
OXFORD, Mass., Jul 23, 2009 (BUSINESS WIRE) -- IPG Photonics Corporation (Nasdaq: IPGP) today revised its guidance for
the second quarter ended June 30, 2009. The Company anticipates revenues
in the range of $40 to $41 million and a net loss per share in the range
of $0.03 to $0.04 for the second quarter of 2009. The Company had
previously expected revenue in the range of $39 to $45 million and
earnings per share in the range of $0.01 to $0.07.
"Although we expect to report second-quarter revenue within our original
guidance range, we anticipate that earnings per share will be below the
range provided on May 5, 2009," said Dr. Valentin Gapontsev, IPG's Chief
Executive Officer. "Expected earnings are lower than anticipated due to
lower absorption of fixed costs due to a reduction in the level of
inventory during the period, as well as greater than anticipated pricing
pressures related to the current macro-economic and competitive
environments. We expect that pricing pressure will continue as long as
the global economic downturn is having a negative effect on sales
volumes in the industry. In addition, we increased R&D expenses in the
quarter to aggressively accelerate the development of a series of new
products. Despite the small loss, IPG generated positive cash flow
substantially due to a reduction in inventory levels and lower capital
expenditure levels."
"While visibility remains limited, we believe that the Materials
Processing market will likely remain soft throughout the remainder of
the year," added Gapontsev. "At the same time, we are encouraged that
sales of high power lasers increased compared with prior year levels in
the otherwise weak Materials Processing market. In addition, it is
promising that sales for Medical, Communications and Advanced
Applications grew over the second quarter of last year."
"The book to bill ratio for the second quarter exceeded 1:1 for the
first time since Q3 2008. Further, our shippable backlog at June 30,
2009 was higher than at the end of the first quarter 2009," concluded
Gapontsev.
The Company expects to provide revenue and earnings per share guidance
for the third quarter of 2009 when it reports its second-quarter 2009
financial results on August 4, 2009 on a conference call at 10:00 a.m.
ET. To listen to a webcast of the call, please visit the Company's
website at www.ipgphotonics.com.
Individuals may also listen to the call via telephone by dialing (877)
407-5790 or (201) 689-8328. Interested parties unable to participate in
the live call may access an archived version of the webcast in the "Investors"
section of IPG's website.
About IPG Photonics Corporation
IPG Photonics Corporation is the world leader in high-power fiber lasers
and amplifiers. Founded in 1990, IPG pioneered the development and
commercialization of optical fiber-based lasers for use in a wide range
of applications such as materials processing, advanced applications,
telecommunications and medical applications. Fiber lasers have
revolutionized the industry by delivering superior performance,
reliability and usability at a lower total cost of ownership compared
with conventional lasers, allowing end users to increase productivity
and decrease operating costs. IPG has its headquarters in Oxford,
Massachusetts, and has additional plants and offices throughout the
world. For more information, please visit www.ipgphotonics.com.
Safe Harbor Statement
Information and statements provided by the Company and its employees,
including statements in this press release, that relate to future plans,
events or performance are forward-looking statements. These statements
involve risks and uncertainties. Any statements in this press release
that are not statements of historical fact are forward-looking
statements, including, but not limited to, those relating to pricing
levels, the Company's revenue and EPS guidance for the second quarter of
2009, and conditions in the Materials Processing market. Factors that
could cause actual results to differ materially include risks and
uncertainties, including risks associated with the strength or weakness
of the business conditions in industries and geographic markets that the
Company serves, particularly the effect of economic downturns, reduction
in customer capital expenditures, potential order cancellations and
push-outs and financial and credit market issues, the Company's ability
to penetrate new applications for fiber lasers and increase market
share, the rate of acceptance and penetration of IPG's products,
effective management of growth, level of fixed costs from its vertical
integration, intellectual property infringement claims and litigation,
interruption in supply of key components, manufacturing risks, inventory
write-downs, foreign currency fluctuations, competitive factors
including declining average selling prices, building and expanding field
service and support operations, uncertainties pertaining to customer
orders, demand for products and services, development of markets for the
Company's products and services and other risks identified in the
Company's SEC filings. Readers are encouraged to refer to the risk
factors described in the Company's Annual Report on Form 10-K (filed
with the SEC on March 12, 2009) and its periodic reports filed with the
SEC, as applicable. Actual results, events and performance may differ
materially. Readers are cautioned not to rely on the forward-looking
statements, which speak only as of the date hereof. The Company
undertakes no obligation to update the forward-looking statements that
may be made to reflect events or circumstances after the date hereof or
to reflect the occurrence of unanticipated events.
IPGP-G
SOURCE: IPG Photonics Corporation
IPG Photonics Corporation
Tim Mammen, 508-373-1100
Chief Financial Officer
or
Sharon Merrill Associates Inc.
David Calusdian, 617-542-5300
Executive Vice President
Copyright Business Wire 2009