IPG Photonics Corporation (Nasdaq: IPGP) today reported
financial results for the fourth quarter ended December 31,
2022.
|
|
Three Months Ended December 31, |
|
|
|
Twelve Months Ended December 31, |
|
|
|
(In millions, except
per share data and percentages) |
|
2022 |
|
2021 |
|
Change |
|
2022 |
|
2021 |
|
Change |
Revenue |
|
$ |
333.5 |
|
|
$ |
364.5 |
|
|
(8)% |
|
$ |
1,429.5 |
|
|
$ |
1,460.9 |
|
|
(2 |
)% |
Gross margin |
|
|
18.2 |
% |
|
|
45.5 |
% |
|
|
|
|
38.9 |
% |
|
|
47.7 |
% |
|
|
|
Operating (loss) income |
|
$ |
(88.5 |
) |
|
$ |
84.8 |
|
|
NM |
|
$ |
169.5 |
|
|
$ |
367.9 |
|
|
(54 |
)% |
Operating margin |
|
|
(26.5 |
)% |
|
|
23.3 |
% |
|
|
|
|
11.9 |
% |
|
|
25.2 |
% |
|
|
|
Net (loss) income attributable
to IPG Photonics Corporation |
|
$ |
(92.9 |
) |
|
$ |
65.1 |
|
|
NM |
|
$ |
109.9 |
|
|
$ |
278.4 |
|
|
(61 |
)% |
Earnings (loss) per diluted
share (1) |
|
$ |
(1.91 |
) |
|
$ |
1.21 |
|
|
NM |
|
$ |
2.16 |
|
|
$ |
5.16 |
|
|
(58 |
)% |
(1)Adjusted diluted EPS was $1.08 for the three
months ended December 31, 2022. Refer to supplemental schedule of
non-GAAP measures for reconciliation details.
NM - not meaningful.
Management Comments
"Our strategy to diversify revenue and
capitalize on macro trends, such as e-mobility, helped to drive
revenue this year with a record demand for our products in EVs and
medical applications. We reached a significant milestone as revenue
from welding applications surpassed high power cutting, powered by
greater laser penetration into battery manufacturing, industrial
welding and handheld welding applications," said Dr. Eugene
Scherbakov, IPG Photonics' Chief Executive Officer. "During a year
affected by lingering pandemic impacts, geopolitical conflict,
inflation and a strong U.S. dollar, we successfully navigated
through supply chain challenges, met customer delivery
requirements, significantly reduced our reliance on Russian
operations and positioned IPG for future growth and success. In
light of the impact of sanctions on our Russian operations, we
initiated a review and incurred various charges that significantly
impacted reported operating results in the fourth quarter."
Financial Highlights
Fourth quarter revenue of $334 million decreased
8% year over year, including $25 million from foreign currency
translation which reduced revenue growth by approximately 7% due to
the strong U.S. dollar. Business divestitures reduced revenue
growth by close to 2%. Materials processing sales accounted for 89%
of total revenue and decreased 6% year over year with higher sales
in welding and solar cell applications offset by lower revenue in
cutting applications in China and Europe. Sales into Other
applications declined 23% year over year, with growth in medical
offset by lower revenue in advanced applications and the
divestiture of the telecom transmission product lines. Emerging
growth products sales accounted for 46% of total revenue.
Revenue in high power continuous wave (CW)
lasers declined 13% year over year due to lower demand in high
power cutting applications, which was partially offset by strong
growth in welding. Sales of pulsed lasers declined 9% compared with
the prior year due to lower demand in cutting and marking
applications, partially offset by growth in solar cell
manufacturing. By region, sales decreased 3% in North America, 21%
in Europe, and 15% in China on a year-over-year basis. Sales
increased 2% in Japan.
Loss per diluted share was $1.91 and adjusted
diluted EPS was $1.08. Inventory related charges and impairment of
long-lived assets in Russia reduced operating income by $74 million
and $79 million and reduced diluted EPS by $1.21 and $1.30,
respectively. Restructuring charges primarily related to our
Russian operations reduced operating income by $10 million and EPS
by $0.16. Foreign exchange transaction gains and the gain on sale
of assets, primarily related to the disposal of the Company's
aircraft, increased operating income by $7 million and $10 million
and increased diluted EPS by $0.12 and $0.16, respectively.
Further, discrete income tax adjustments, primarily related to a
valuation allowance against Russian deferred tax assets, reduced
net income by $29 million and diluted EPS by $0.60. During the
fourth quarter, IPG generated $42 million in cash from operations.
Capital expenditures were $26 million and IPG returned $117 million
to stockholders via share repurchases in the quarter.
Business Outlook and Financial Guidance
Total backlog was $811 million, which was a
record level for IPG, and consisted of $501 million of orders with
firm shipment dates and $310 million of frame agreements. Total
backlog increased by 11%, driven by a 28% increase in frame
agreements and 3% increase in orders with firm shipment dates.
Fourth quarter book-to-bill was slightly below 1.
"Last year, we took decisive actions to position
IPG for future success, including focusing on emerging products,
disposing of non-core business and assets, and building production
capabilities. Strong bookings in e-mobility and welding
applications across major geographies give us reason to be
optimistic in the face of macroeconomic challenges expected to
persist into 2023," continued Dr. Scherbakov. "IPG's performance in
2022 is a tribute to the dedicated team of employees and partners
throughout the world. We are proud of their efforts overcoming
supply chain constraints and a complex regulatory environment to
deliver products to our customers."
For the first quarter of 2023, IPG expects
revenue of $310 million to $340 million. The Company expects the
first quarter tax rate to be approximately 26%. IPG anticipates
delivering earnings per diluted share in the range of $0.90 to
$1.20. The first quarter guidance range is reduced by approximately
$9 million due to foreign currency headwinds that are related to
the current strength of the U.S. dollar as compared to the first
quarter of 2022.
As discussed in more detail in the "Safe Harbor"
passage of this news release, actual results may differ from this
guidance due to various factors including, but not limited to,
trade policy changes and trade restrictions with Russia, the
COVID-19 pandemic, product demand, order cancellations and delays,
competition, tariffs, currency fluctuations and general economic
conditions. This guidance is based upon current market conditions
and expectations, and is subject to the risks outlined in the
Company's reports filed with the SEC, and assumes exchange rates
relative to the U.S. dollar of Euro 0.93, Russian ruble 70,
Japanese yen 131 and Chinese yuan 6.96, respectively.
Supplemental Financial Information
Additional supplemental financial information is
provided in the unaudited Fourth Quarter 2022 Financial Data
Workbook and Earnings Call Presentation available on the investor
relations section of the Company's website at
investor.ipgphotonics.com.
Conference Call Reminder
The Company will hold a conference call today,
February 14, 2023 at 10:00 am ET. To access the call, please
dial 877-407-6184 in the US or 201-389-0877 internationally. A live
webcast of the call will also be available and archived on the
investor relations section of the Company's website at
investor.ipgphotonics.com.
Contact
Eugene FedotoffDirector of Investor Relations IPG Photonics
Corporation 508-597-4713efedotoff@ipgphotonics.com
About IPG Photonics Corporation
IPG Photonics Corporation is the leader in
high-power fiber lasers and amplifiers used primarily in materials
processing and other diverse applications. The Company’s mission is
to make its fiber laser technology the tool of choice in mass
production. IPG accomplishes this mission by delivering superior
performance, reliability and usability at a lower total cost of
ownership compared with other types of lasers and non-laser tools,
allowing end users to increase productivity and decrease costs. IPG
is headquartered in Marlborough, Massachusetts and has more than 30
facilities worldwide. For more information, visit
www.ipgphotonics.com.
Safe Harbor Statement
Information and statements provided by IPG 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 actions
taken to position IPG for future success, focusing on emerging
products, disposing of non-core business and assets and building
production capabilities, strong bookings in e-mobility and welding
applications across major geographies give us reason to be
optimistic, impact of macroeconomic challenges, as well as revenue,
tax rate and earnings guidance, and the impact of the U.S. dollar
on our guidance for first quarter of 2023. 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 IPG serves, particularly the effect of downturns in
the markets IPG serves; uncertainties and adverse changes in the
general economic conditions of markets; inability to manage risks
associated with international customers and operations; changes in
trade controls and trade policies; IPG's ability to penetrate new
applications for fiber lasers and increase market share; the rate
of acceptance and penetration of IPG's products; foreign currency
fluctuations; high levels of fixed costs from IPG's vertical
integration; the appropriateness of IPG's manufacturing capacity
for the level of demand; competitive factors, including declining
average selling prices; the effect of acquisitions and investments;
inventory related charges; asset impairment charges; intellectual
property infringement claims and litigation; interruption in supply
of key components; manufacturing risks; government regulations and
trade sanctions; and other risks identified in IPG's SEC filings.
Readers are encouraged to refer to the risk factors described in
IPG's Annual Report on Form 10-K (filed with the SEC on February
22, 2022) and IPG's other 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.
IPG 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.
Use of Non-GAAP Adjusted Financial
Information
The Company’s financial results in this press
release are provided in accordance with accounting principles
generally accepted in the United States of America (GAAP). The
Company has also included certain supplemental non-GAAP financial
information regarding adjusted gross profit, adjusted net income
and adjusted earnings per share (each, a non-GAAP financial
measure). The non-GAAP financial measures provided are a supplement
to, and not a substitute for, the Company’s financial results
presented in accordance with U.S. GAAP. These non-GAAP financial
measures are provided to enhance the investor's understanding and
aid in their analysis of the Company's ongoing operations.
Specifically, the Company believes the non-recurring impact of
certain long-lived asset impairment, restructuring charges,
inventory related charges, gain or loss on sale of assets and
foreign currency gains or losses, are not indicative of its core
operating results and may obscure trends useful in evaluating the
Company's continuing operating activities. The presentation of
non-GAAP financial measures is not meant to be considered in
isolation or as a substitute for results prepared and presented in
accordance with U.S. GAAP. Also, these non-GAAP financial measures,
as determined and presented by the Company, may not be comparable
to related or similarly titled measures reported by other
companies. Reconciliations of non-GAAP measures to their most
comparable GAAP measures are included in the financial statements
portion of this press release.
IPG PHOTONICS CORPORATIONCONDENSED CONSOLIDATED
STATEMENTS OF INCOME (UNAUDITED) |
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
(In thousands, except per share data) |
Net sales |
|
$ |
333,539 |
|
|
$ |
364,467 |
|
|
$ |
1,429,547 |
|
|
$ |
1,460,860 |
|
Cost of sales |
|
|
272,715 |
|
|
|
198,462 |
|
|
|
874,134 |
|
|
|
764,462 |
|
Gross profit |
|
|
60,824 |
|
|
|
166,005 |
|
|
|
555,413 |
|
|
|
696,398 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
Sales and marketing |
|
|
17,876 |
|
|
|
19,416 |
|
|
|
76,643 |
|
|
|
78,180 |
|
Research and development |
|
|
26,620 |
|
|
|
36,766 |
|
|
|
116,114 |
|
|
|
139,573 |
|
General and administrative |
|
|
33,365 |
|
|
|
32,167 |
|
|
|
131,253 |
|
|
|
125,882 |
|
Gain on divestiture and sale of asset |
|
|
(10,098 |
) |
|
|
— |
|
|
|
(31,846 |
) |
|
|
— |
|
Impairment of long-lived assets |
|
|
79,030 |
|
|
|
— |
|
|
|
79,949 |
|
|
|
— |
|
Other restructuring charges |
|
|
9,697 |
|
|
|
— |
|
|
|
9,697 |
|
|
|
— |
|
(Gain) loss on foreign exchange |
|
|
(7,186 |
) |
|
|
(7,147 |
) |
|
|
4,103 |
|
|
|
(15,120 |
) |
Total operating expenses |
|
|
149,304 |
|
|
|
81,202 |
|
|
|
385,913 |
|
|
|
328,515 |
|
Operating (loss) income |
|
|
(88,480 |
) |
|
|
84,803 |
|
|
|
169,500 |
|
|
|
367,883 |
|
Other income (expense),
net: |
|
|
|
|
|
|
|
|
Interest income (expense), net |
|
|
7,888 |
|
|
|
(649 |
) |
|
|
12,620 |
|
|
|
(1,839 |
) |
Other income, net |
|
|
548 |
|
|
|
367 |
|
|
|
1,231 |
|
|
|
437 |
|
Total other income (expense) |
|
|
8,436 |
|
|
|
(282 |
) |
|
|
13,851 |
|
|
|
(1,402 |
) |
(Loss) income before provision
of income taxes |
|
|
(80,044 |
) |
|
|
84,521 |
|
|
|
183,351 |
|
|
|
366,481 |
|
Provision for income
taxes |
|
|
12,851 |
|
|
|
19,253 |
|
|
|
72,589 |
|
|
|
88,615 |
|
Net (loss) income |
|
|
(92,895 |
) |
|
|
65,268 |
|
|
|
110,762 |
|
|
|
277,866 |
|
Less: net income (loss)
attributable to non-controlling interests |
|
|
— |
|
|
|
181 |
|
|
|
853 |
|
|
|
(550 |
) |
Net (loss) income attributable
to IPG Photonics Corporation |
|
$ |
(92,895 |
) |
|
$ |
65,087 |
|
|
$ |
109,909 |
|
|
$ |
278,416 |
|
Net (loss) income attributable
to IPG Photonics Corporation per share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
(1.91 |
) |
|
$ |
1.22 |
|
|
$ |
2.17 |
|
|
$ |
5.21 |
|
Diluted |
|
$ |
(1.91 |
) |
|
$ |
1.21 |
|
|
$ |
2.16 |
|
|
$ |
5.16 |
|
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
48,720 |
|
|
|
53,222 |
|
|
|
50,761 |
|
|
|
53,410 |
|
Diluted |
|
|
48,720 |
|
|
|
53,626 |
|
|
|
50,925 |
|
|
|
53,930 |
|
IPG PHOTONICS CORPORATIONCONDENSED CONSOLIDATED
BALANCE SHEETS (UNAUDITED) |
|
|
December 31, |
|
December 31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
(In thousands, except share andper
share data) |
ASSETS |
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
698,209 |
|
|
$ |
709,105 |
|
Short-term investments |
|
|
479,374 |
|
|
|
805,400 |
|
Accounts receivable, net |
|
|
211,347 |
|
|
|
262,121 |
|
Inventories |
|
|
509,363 |
|
|
|
460,747 |
|
Prepaid income taxes |
|
|
40,934 |
|
|
|
36,990 |
|
Prepaid expenses and other current assets |
|
|
47,047 |
|
|
|
73,320 |
|
Total current assets |
|
|
1,986,274 |
|
|
|
2,347,683 |
|
Deferred income taxes,
net |
|
|
75,152 |
|
|
|
47,761 |
|
Goodwill |
|
|
38,325 |
|
|
|
38,609 |
|
Intangible assets, net |
|
|
34,120 |
|
|
|
52,678 |
|
Property, plant and equipment,
net |
|
|
580,561 |
|
|
|
635,302 |
|
Other assets |
|
|
28,848 |
|
|
|
48,507 |
|
Total assets |
|
$ |
2,743,280 |
|
|
$ |
3,170,540 |
|
LIABILITIES AND EQUITY |
Current liabilities: |
|
|
|
|
Current portion of long-term debt |
|
$ |
16,031 |
|
|
$ |
18,126 |
|
Accounts payable |
|
|
46,233 |
|
|
|
55,839 |
|
Accrued expenses and other current liabilities |
|
|
202,764 |
|
|
|
230,826 |
|
Income taxes payable |
|
|
9,618 |
|
|
|
8,642 |
|
Total current liabilities |
|
|
274,646 |
|
|
|
313,433 |
|
Other long-term liabilities
and deferred income taxes |
|
|
83,274 |
|
|
|
93,855 |
|
Long-term debt, net of current
portion |
|
|
— |
|
|
|
16,031 |
|
Total liabilities |
|
|
357,920 |
|
|
|
423,319 |
|
Commitments and
contingencies |
|
|
|
|
IPG Photonics Corporation
equity: |
|
|
|
|
Common stock, $0.0001 par value, 175,000,000 shares authorized;
56,017,672 and 48,138,257 shares issued and outstanding,
respectively, at December 31, 2022; 55,788,246 and 53,010,265
shares issued and outstanding, respectively, at December 31,
2021. |
|
|
6 |
|
|
|
6 |
|
Treasury stock, at cost, 7,879,415 and 2,777,981 shares held at
December 31, 2022 and December 31, 2021,
respectively. |
|
|
(938,009 |
) |
|
|
(438,503 |
) |
Additional paid-in capital |
|
|
951,371 |
|
|
|
908,423 |
|
Retained earnings |
|
|
2,576,516 |
|
|
|
2,466,607 |
|
Accumulated other comprehensive loss |
|
|
(204,524 |
) |
|
|
(189,951 |
) |
Total IPG Photonics Corporation equity |
|
|
2,385,360 |
|
|
|
2,746,582 |
|
Non-controlling interests |
|
|
— |
|
|
|
639 |
|
Total equity |
|
|
2,385,360 |
|
|
|
2,747,221 |
|
Total liabilities and
equity |
|
$ |
2,743,280 |
|
|
$ |
3,170,540 |
|
IPG PHOTONICS CORPORATIONCONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED) |
|
|
Twelve Months Ended December 31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
(In thousands) |
Cash flows from
operating activities: |
|
|
|
|
Net income |
|
$ |
110,762 |
|
|
$ |
277,866 |
|
Adjustments to reconcile net income to net cash provided by (used
in) operating activities: |
|
|
|
|
Depreciation and amortization |
|
|
90,564 |
|
|
|
96,330 |
|
Impairment of long-lived assets |
|
|
79,949 |
|
|
|
— |
|
Provisions for inventory, warranty & bad debt |
|
|
153,652 |
|
|
|
68,441 |
|
Gain on divestiture and sale of asset |
|
|
(31,846 |
) |
|
|
— |
|
Other |
|
|
11,789 |
|
|
|
31,037 |
|
Changes in assets and liabilities that used cash, net of
acquisitions: |
|
|
|
|
Accounts receivable and accounts payable |
|
|
21,926 |
|
|
|
28,906 |
|
Inventories |
|
|
(189,013 |
) |
|
|
(149,754 |
) |
Other |
|
|
(35,134 |
) |
|
|
36,874 |
|
Net cash provided by operating activities |
|
|
212,649 |
|
|
|
389,700 |
|
Cash flows from
investing activities: |
|
|
|
|
Purchases of and deposits on property, plant and equipment |
|
|
(110,141 |
) |
|
|
(123,108 |
) |
Proceeds from sales of property, plant and equipment |
|
|
26,862 |
|
|
|
1,409 |
|
Purchases of short-term investments |
|
|
(1,117,022 |
) |
|
|
(1,940,605 |
) |
Proceeds from short-term investments |
|
|
1,446,355 |
|
|
|
1,647,537 |
|
Acquisitions of businesses, net of cash acquired |
|
|
(2,000 |
) |
|
|
— |
|
Proceeds from divestiture, net of cash sold |
|
|
52,941 |
|
|
|
— |
|
Other |
|
|
(43 |
) |
|
|
(1,515 |
) |
Net cash provided by (used in) investing activities |
|
|
296,952 |
|
|
|
(416,282 |
) |
Cash flows from
financing activities: |
|
|
|
|
Principal payments on long-term borrowings |
|
|
(18,126 |
) |
|
|
(3,810 |
) |
Proceeds from issuance of common stock under employee stock option
and purchase plans less payments for taxes related to net share
settlement of equity awards |
|
|
5,583 |
|
|
|
16,258 |
|
Purchase of treasury stock, at cost |
|
|
(499,506 |
) |
|
|
(134,889 |
) |
Payment of purchase price holdback from business combination |
|
|
— |
|
|
|
(2,625 |
) |
Purchase of non-controlling interests |
|
|
(2,500 |
) |
|
|
— |
|
Net cash used in financing activities |
|
|
(514,549 |
) |
|
|
(125,066 |
) |
Effect of changes in exchange
rates on cash and cash equivalents |
|
|
(5,948 |
) |
|
|
(17,800 |
) |
Net decrease in cash and cash
equivalents |
|
|
(10,896 |
) |
|
|
(169,448 |
) |
Cash and cash equivalents —
Beginning of period |
|
|
709,105 |
|
|
|
878,553 |
|
Cash and cash equivalents —
End of period |
|
$ |
698,209 |
|
|
$ |
709,105 |
|
Supplemental disclosures of
cash flow information: |
|
|
|
|
Cash paid for interest |
|
$ |
3,214 |
|
|
$ |
2,714 |
|
Cash paid for income taxes |
|
$ |
113,200 |
|
|
$ |
62,998 |
|
IPG PHOTONICS CORPORATIONSUPPLEMENTAL SCHEDULE OF
AMORTIZATION OF INTANGIBLE ASSETS (UNAUDITED) |
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
(In thousands) |
Amortization of intangible
assets: |
|
|
|
|
|
|
|
|
Cost of sales |
|
$ |
608 |
|
|
$ |
1,200 |
|
|
$ |
3,632 |
|
|
$ |
4,843 |
|
Sales and marketing |
|
|
1,469 |
|
|
|
1,840 |
|
|
|
6,822 |
|
|
|
7,584 |
|
Total amortization of
intangible assets |
|
$ |
2,077 |
|
|
$ |
3,040 |
|
|
$ |
10,454 |
|
|
$ |
12,427 |
|
IPG PHOTONICS CORPORATIONSUPPLEMENTAL SCHEDULE OF
STOCK-BASED COMPENSATION (UNAUDITED) |
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
(In thousands) |
Cost of sales |
|
$ |
2,507 |
|
|
$ |
2,910 |
|
|
$ |
11,741 |
|
|
$ |
11,245 |
|
Sales and marketing |
|
|
1,180 |
|
|
|
669 |
|
|
|
4,889 |
|
|
|
4,320 |
|
Research and development |
|
|
1,696 |
|
|
|
2,478 |
|
|
|
7,585 |
|
|
|
9,533 |
|
General and
administrative |
|
|
3,750 |
|
|
|
3,329 |
|
|
|
14,120 |
|
|
|
12,883 |
|
Total stock-based
compensation |
|
|
9,133 |
|
|
|
9,386 |
|
|
|
38,335 |
|
|
|
37,981 |
|
Tax effect of stock-based
compensation |
|
|
(1,982 |
) |
|
|
(1,969 |
) |
|
|
(8,261 |
) |
|
|
(8,071 |
) |
Net stock-based
compensation |
|
$ |
7,151 |
|
|
$ |
7,417 |
|
|
$ |
30,074 |
|
|
$ |
29,910 |
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
(In thousands) |
Excess tax (detriment) benefit
on stock-based compensation |
|
$ |
(478 |
) |
|
$ |
441 |
|
|
$ |
(2,732 |
) |
|
$ |
6,641 |
|
IPG PHOTONICS CORPORATIONSUPPLEMENTAL SCHEDULE OF
NON-GAAP FINANCIAL MEASURES (UNAUDITED) |
|
|
Three Months Ended December 31, |
|
|
2022 |
(In thousands, except
percentages) |
|
|
|
Gross Margin |
Gross profit |
|
$ |
60,824 |
|
|
18.2 |
% |
Add: Inventory provision and related charges |
|
|
74,055 |
|
|
|
Adjusted gross
profit |
|
$ |
134,879 |
|
|
40.4 |
% |
|
|
Three Months Ended December 31, |
|
|
2022 |
(In thousands, except per share data) |
|
Before Tax |
|
Tax Impact |
|
After Tax |
|
Per Diluted Share |
Net (loss) income
attributable to IPG Photonics Corporation and diluted
EPS |
|
|
|
|
|
$ |
(92,895 |
) |
|
$ |
(1.91 |
) |
Adjustments to reconcile to
adjusted net income: |
|
|
|
|
|
|
|
|
Inventory provision and related charges |
|
$ |
74,055 |
|
|
$ |
(14,811 |
) |
|
|
59,244 |
|
|
|
1.21 |
|
Long-lived asset impairment |
|
|
79,030 |
|
|
|
(15,806 |
) |
|
|
63,224 |
|
|
|
1.30 |
|
Other restructuring charges |
|
|
9,697 |
|
|
|
(2,031 |
) |
|
|
7,666 |
|
|
|
0.16 |
|
Gain on divestiture and sale of asset |
|
|
(10,098 |
) |
|
|
2,322 |
|
|
|
(7,776 |
) |
|
|
(0.16 |
) |
Gain on foreign exchange |
|
|
(7,186 |
) |
|
|
953 |
|
|
|
(6,233 |
) |
|
|
(0.12 |
) |
Discrete tax impacts |
|
|
|
|
29,490 |
|
|
|
29,490 |
|
|
|
0.60 |
|
Total adjustments |
|
$ |
145,498 |
|
|
$ |
117 |
|
|
$ |
145,615 |
|
|
$ |
2.99 |
|
Adjusted net income
and adjusted diluted EPS |
|
|
|
|
|
$ |
52,720 |
|
|
$ |
1.08 |
|
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