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Dec 31, 2019
IPG Photonics Q4 2019 Earnings Report
IPG Photonics' Q4 2019 revenue decreased 7% year-over-year, but exceeded guidance. Net loss per diluted share was $0.08, impacted by foreign exchange losses, higher inventory reserves, and impairment charges. The company generated $130 million in cash from operations.
Key Takeaways
IPG Photonics reported a 7% decrease in fourth-quarter revenue compared to the previous year, totaling $306.6 million. The company experienced a net loss per diluted share of $0.08, influenced by various charges. However, cash from operations remained strong at $130 million.
Fourth quarter revenue decreased 7% year over year to $307 million.
Materials processing sales accounted for 90% of total revenue, decreasing 11% year over year.
Sales decreased 21% in China, 17% in Europe, 37% in Japan and increased 30% in North America on a year over year basis.
Net loss per diluted share was $0.08, reduced by $0.99 due to foreign exchange losses, higher inventory reserves, and impairment charges.
IPG Photonics
IPG Photonics
IPG Photonics Revenue by Segment
Revenue by Segment
Materials Processing Revenue
CapyFin.comOther Applications Revenue
CapyFin.com Forward Guidance
For the first quarter of 2020, IPG expects revenue of $220 million to $250 million and earnings per diluted share in the range of $0.00 to $0.30. This guidance assumes approximately $45 million in reduced revenue and $0.45 lower EPS from business disruption related to the novel coronavirus outbreak.
Positive Outlook
- Significant long-term growth opportunities in welding
- Significant long-term growth opportunities in fine processing of electric vehicle batteries
- Significant long-term growth opportunities in our portfolio of new products addressing opportunities in microelectronics
- Significant long-term growth opportunities in our portfolio of new products addressing opportunities in medical
- Significant long-term growth opportunities in our portfolio of new products addressing opportunities in systems and beam delivery solutions
Challenges Ahead
- Business disruption related to the novel coronavirus outbreak
- Product demand
- Order cancellations and delays
- Competition
- General economic conditions
Revenue & Expenses
Visualization of income flow from segment revenue to net income