IPG Photonics Expects to Exceed Fourth-Quarter Guidance for both Revenues and Earnings
Company Reports Broad-based Demand Strength Across Most
Geographies, End Markets and Product Categories
Volume and Business Model Leverage Drives Significant Increase in
Profitability
Company Presentation at Stifel Nicolaus Technology & Telecom
Conference to be Webcast Live at 11:00 a.m. ET Friday,
February 11
OXFORD, Mass.--(BUSINESS WIRE)--
IPG
Photonics Corporation (NASDAQ: IPGP) today announced preliminary
financial results for the fourth quarter ended December 31, 2010. The
Company expects sales for the fourth quarter of 2010 to be approximately
$100 million compared with the previously guided range of $80 to $86
million, and earnings per diluted share to be in a range of $0.53 to
$0.56 compared with previous guidance of between $0.30 and $0.35. For
the fourth quarter of 2009, IPG reported sales of $54.3 million and
earnings per share of $0.07. As IPG Photonics' year-end audit is not
complete, these preliminary results are subject to adjustments from the
audit.
"We expect to report more than 80% year-over-year growth in revenues and
a seven-fold increase in earnings per share for the fourth quarter of
2010," said Dr. Valentin Gapontsev, IPG Photonics' Chief Executive
Officer. "Our exceptional sales performance this quarter was driven by
broad-based demand strength. Geographically, China and Europe were the
stand-out performers for the quarter, although we experienced
significant year-over-year sales increases across nearly all regions.
Materials processing, communications and advanced applications were the
strongest end markets and high-power and pulsed lasers both reported
triple-digit year-over-year growth. Our expected bottom-line increase
was due to the excellent leverage in our business model, resulting in
further improvements in gross and operating margins."
"We continue to see strong order flow into Q1 and expect the first
quarter to show robust quarterly year-over-year revenue and earnings
growth, even after taking into account historical seasonal patterns
which typically result in lower sequential quarterly revenue in Q1. We
enter 2011 with great momentum and expect to continue to capitalize on
the demand for our fiber lasers and benefit from the leverage in our
business model," concluded Gapontsev.
IPG Photonics expects to provide revenue and earnings per share guidance
for the first quarter of 2011 when it announces its financial results
for the fourth quarter and full year 2010 on Friday, February 25, 2011.
Chief Financial Officer, Tim Mammen, will be presenting at Stifel
Nicolaus' 9th Annual Technology, Communications & Internet Conference on
Friday, February 11, 2011 at 8:00 a.m. PT/11:00 a.m. ET. A live audio
webcast of the presentation will be available through the "Investors"
section of IPG's website at www.ipgphotonics.com.
For those unable to listen to the live webcast, an archive of the
presentation will be available on the Company's website for
approximately 90 days.
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,
telecommunications
and medical.
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, the Company's expectations
for revenue and earnings per share for the fourth quarter of 2010 and
its expectations for robust year-over-year revenue and earnings growth
in the first quarter of 2011. 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.
IPG Photonics Corporation
Tim Mammen, 508-373-1100
Chief
Financial Officer
or
Sharon Merrill Associates, Inc.
David
Calusdian, 617-542-5300
Executive Vice President
Source: IPG Photonics Corporation
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