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IPG Photonics Announces Third Quarter 2024 Financial Results

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IPG Photonics (NASDAQ: IPGP) reported Q3 2024 financial results with revenue of $233.1 million, down 23% year-over-year. The company posted a net loss of $233.6 million, or $5.33 per share, primarily due to losses from Russian operations divestiture ($198M) and asset impairment charges ($27M). Adjusted EPS was $0.29. Gross margin declined to 23.2% from 44.1% last year, impacted by a $30M inventory provision. Materials processing sales, representing 89% of revenue, decreased 22%. The company expects Q4 2024 revenue between $210-240 million with EPS guidance of $0.05-$0.35.

IPG Photonics (NASDAQ: IPGP) ha riportato i risultati finanziari per il terzo trimestre del 2024, con un fatturato di 233,1 milioni di dollari, in calo del 23% rispetto all'anno precedente. L'azienda ha registrato una perdita netta di 233,6 milioni di dollari, ovvero 5,33 dollari per azione, principalmente a causa delle perdite dalla dismissione delle operazioni in Russia (198 milioni di dollari) e delle svalutazioni degli attivi (27 milioni di dollari). L'utile per azione rettificato è stato di 0,29 dollari. Il margine lordo è diminuito al 23,2% rispetto al 44,1% dell'anno scorso, influenzato da una provvista di inventario di 30 milioni di dollari. Le vendite nel settore della lavorazione dei materiali, che rappresentano l'89% del fatturato, sono diminuite del 22%. L'azienda prevede un fatturato per il quarto trimestre del 2024 compreso tra 210 e 240 milioni di dollari, con una previsione di utile per azione compresa tra 0,05 e 0,35 dollari.

IPG Photonics (NASDAQ: IPGP) reportó los resultados financieros del tercer trimestre de 2024, con ingresos de 233,1 millones de dólares, una caída del 23% en comparación con el año anterior. La compañía reportó una pérdida neta de 233,6 millones de dólares, o 5,33 dólares por acción, principalmente debido a las pérdidas por la desinversión de operaciones en Rusia (198 millones de dólares) y cargos por deterioro de activos (27 millones de dólares). El EPS ajustado fue de 0,29 dólares. El margen bruto cayó al 23,2% desde el 44,1% del año pasado, impactado por una provisión de inventario de 30 millones de dólares. Las ventas en procesamiento de materiales, que representan el 89% de los ingresos, disminuyeron un 22%. La compañía espera que los ingresos del cuarto trimestre de 2024 oscilen entre 210 y 240 millones de dólares, con una guía de EPS de 0,05 a 0,35 dólares.

IPG Photonics (NASDAQ: IPGP)는 2024년 3분기 재무 실적을 발표하며 매출은 2억 3,310만 달러로 전년 대비 23% 감소했습니다. 회사는 순손실 2억 3,360만 달러, 즉 주당 5.33달러를 기록했으며, 이는 주로 러시아 사업 매각으로 인한 손실(1억 9,800만 달러)과 자산 손상 비용(2,700만 달러) 때문입니다. 조정된 EPS는 0.29달러였습니다. 총 이익률은 작년의 44.1%에서 23.2%로 감소했으며, 이는 3,000만 달러의 재고 충당금에 영향을 받았습니다. 재료 가공 판매는 매출의 89%를 차지하며 22% 감소했습니다. 회사는 2024년 4분기 매출이 2억 1천만에서 2억 4천만 달러 사이가 될 것으로 예상하며, EPS 가이드는 0.05에서 0.35달러입니다.

IPG Photonics (NASDAQ: IPGP) a publié ses résultats financiers pour le troisième trimestre 2024, avec un chiffre d'affaires de 233,1 millions de dollars, en baisse de 23 % par rapport à l'année précédente. La société a enregistré une perte nette de 233,6 millions de dollars, soit 5,33 dollars par action, principalement en raison des pertes liées à la cession de ses activités en Russie (198 millions de dollars) et des charges de dépréciation d'actifs (27 millions de dollars). Le BPA ajusté était de 0,29 dollars. La marge brute est tombée à 23,2 % contre 44,1 % l'année dernière, impactée par une provision pour inventaire de 30 millions de dollars. Les ventes dans le traitement de matériaux, représentant 89 % des revenus, ont diminué de 22 %. La société prévoit un chiffre d'affaires entre 210 et 240 millions de dollars pour le quatrième trimestre 2024, avec un BPA prévisionnel de 0,05 à 0,35 dollars.

IPG Photonics (NASDAQ: IPGP) hat die Finanzergebnisse für das 3. Quartal 2024 veröffentlicht, mit einem Umsatz von 233,1 Millionen Dollar, was einem Rückgang von 23 % im Vergleich zum Vorjahr entspricht. Das Unternehmen wies einen Nettoverlust von 233,6 Millionen Dollar oder 5,33 Dollar pro Aktie aus, hauptsächlich aufgrund von Verlusten aus der Veräußerung russischer Aktivitäten (198 Millionen Dollar) und Wertminderungsaufwendungen (27 Millionen Dollar). Der bereinigte Gewinn pro Aktie betrug 0,29 Dollar. Die Bruttomarge fiel von 44,1 % im Vorjahr auf 23,2 %, bedingt durch eine Bestandsrückstellung von 30 Millionen Dollar. Der Umsatz im Bereich der Materialbearbeitung, der 89 % des Umsatzes ausmacht, ging um 22 % zurück. Das Unternehmen erwartet für das 4. Quartal 2024 einen Umsatz zwischen 210 und 240 Millionen Dollar mit einer Gewinnprognose pro Aktie von 0,05 bis 0,35 Dollar.

Positive
  • Generated $66 million in cash from operations in Q3
  • Book-to-bill ratio of 1.0 indicating stable order trends
  • Q3 results at high end of guidance when adjusted for divested revenue
Negative
  • Revenue declined 23% year-over-year to $233.1 million
  • Net loss of $233.6 million compared to $55.0 million profit last year
  • Gross margin decreased significantly to 23.2% from 44.1%
  • $198 million loss on Russian operations divestiture
  • Sales declined across all major regions: North America (-20%), China (-27%), Europe (-29%)

Insights

IPG Photonics' Q3 results reveal significant challenges with $233.1M revenue, down 23% YoY and a concerning shift to operating loss of $253.3M. The 23.2% gross margin marks a dramatic decline from 44.1% last year, heavily impacted by a $30M inventory provision. The exit from Russian operations resulted in a $198M loss, while asset impairments added another $27M hit.

Key concerns include weakening demand across industrial and e-mobility markets, with materials processing sales down 22%. The geographic breakdown shows broad weakness: North America (-20%), China (-27%), Europe (-29%). The book-to-bill ratio of 1.0 suggests stabilization but at lower levels. Q4 guidance of $210-240M revenue indicates continued pressure.

The industrial laser market's downturn is particularly evident in IPG's emerging growth products segment, which dropped to 45% of total revenue from 46% last quarter. The decline in high-power pulsed lasers and medical applications signals broader market weakness. The cleanLASER acquisition represents a strategic pivot toward high-precision laser cleaning applications, potentially opening new revenue streams amid traditional market softness.

The company's inventory management challenges, reflected in the substantial provision, suggest deeper concerns about future demand patterns and product mix alignment. The guidance for Q4 implies continued market uncertainty, with operating expenses projected at $78-80M and modest EPS expectations of $0.05-0.35.

 Focusing on Execution and Future Growth Opportunities

Delivered Results At the High End of Guidance

MARLBOROUGH, Mass., Oct. 29, 2024 (GLOBE NEWSWIRE) -- IPG Photonics Corporation (NASDAQ: IPGP) today reported financial results for the third quarter ended September 30, 2024.

   
  Three Months Ended
September 30,
    Nine Months Ended
September 30,
   
(In millions, except per share data and percentages)  2024   2023  Change   2024   2023  Change 
Revenue $233.1  $301.4  (23)% $742.8  $988.5  (25)%
Gross margin  23.2%  44.1%     33.4%  43.2%   
Operating (loss) income $(253.3) $55.7  NM  $(222.2) $203.2  NM 
Operating margin (108.7)%  18.5%    (29.9)%  20.6%   
Net (loss) income attributable to IPG Photonics Corporation $(233.6) $55.0  NM  $(189.3) $177.5  NM 
(Loss) earnings per diluted share (1) $(5.33) $1.16  NM  $(4.22) $3.73  NM 
   

(1) Adjusted diluted EPS was $0.29 for the three months ended September 30, 2024. Refer to supplemental schedule of non-GAAP measures for reconciliation details.

NM - not meaningful.

Management Comments

"IPG has made important progress strategically and operationally in the last several months,” said Dr. Mark Gitin, IPG Photonics’ Chief Executive Officer. “Our third-quarter results were at the high end of our guidance when adjusted for the divested revenue. We completed our exit from Russia and are strengthening our position in fast-growing high-precision laser cleaning applications with the announced acquisition of cleanLASER. These moves, along with progress in our innovation pipeline and actions underway to gain efficiencies across our business, underscore that we are controlling what we can control as we position for demand recovery.”

Financial Highlights

Third quarter revenue of $233 million decreased 23% year over year due to lower demand in industrial and e-mobility markets. Changes in foreign exchange rates did not have a material impact on revenue. Materials processing sales accounted for 89% of total revenue and decreased 22% year over year, primarily due to lower sales in cutting applications. Other sales decreased 28% year over year due to lower revenue in medical and advanced applications. Emerging growth products sales accounted for 45% of total revenue, a slight decrease from 46% in the prior quarter due to lower revenue for high power pulsed lasers and medical products. By region, sales decreased 20% in North America, 27% in China, 29% in Europe and 8% in Japan on a year-over-year basis.

Gross margin of 23.2% decreased significantly year over year due to increased inventory provision and reduced absorption of manufacturing expenses, partially offset by lower tariffs and shipping costs. The inventory provision included $30 million related to a change in estimate of recoverability due to the current demand environment, which reduced gross margin by 12.8%, and diluted EPS by $0.49. Excluding this inventory provision results in an adjusted gross margin of 36.0%. Loss per diluted share (EPS) of $5.33 included loss on divestiture of our Russian operations which decreased operating income by $198 million and asset impairment charges of $27 million. These items decreased diluted EPS by $5.16 in the third quarter. Foreign exchange transaction loss decreased operating income by $1 million and earnings per share by $0.02. Excluding these items results in an adjusted diluted EPS of $0.29 (1) in the third quarter. During the third quarter, IPG generated $66 million in cash from operations and spent $23 million on capital expenditures and $74 million on share repurchases.

Business Outlook and Financial Guidance

“We continue to believe we are bouncing along the bottom of a muted demand environment, which is supported by a book-to-bill of one for the third quarter. IPG’s strong technology portfolio and expertise across lasers positions us well in new growth areas where fiber lasers can replace incumbent technologies and differentiates us from competition," concluded Dr. Gitin.

For the fourth quarter of 2024, IPG expects revenue of $210 million to $240 million, gross margin between 35% and 38%, and operating expenses of $78 million to $80 million. The Company expects the fourth quarter tax rate to be approximately 25%, including certain discrete items. IPG anticipates delivering earnings per diluted share in the range of $0.05 to $0.35. This guidance excludes Russian operations which were sold in the third quarter.

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, 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 0.90, Japanese yen 143 and Chinese yuan 7.01, respectively.

Supplemental Financial Information

Additional supplemental financial information is provided in the unaudited Financial Data Workbook and Third Quarter 2024 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, October 29, 2024 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 Fedotoff
Senior Director, Investor Relations
IPG Photonics Corporation
508-597-4713
efedotoff@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 develop innovative laser solutions making the world a better place. 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 those statements related to the acquisition of cleanLASER, our strong technology portfolio and expertise across lasers positioning us well in new growth areas where fiber lasers can replace incumbent technologies and differentiates us from competition, and statements related to revenue, gross margin and operating expenses outlook, tax rate and earnings guidance, and the impact of the U.S. dollar on our guidance for fourth quarter of 2024. 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 write-downs; 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 21, 2024) and IPG's 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

We refer to certain financial measures that are not recognized under United States generally accepted accounting principles (“GAAP”). Please see “Supplemental Schedule of Non-GAAP Financial Measures” below for additional information and a reconciliation of the Non-GAAP financial measures to the most comparable GAAP financial measures.


 
IPG PHOTONICS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
 
  Three Months Ended September 30, Nine Months Ended September 30,
   2024   2023   2024   2023 
  (In thousands, except per share data)
Net sales $233,143  $301,401  $742,797  $988,546 
Cost of sales  179,054   168,499   494,986   561,015 
Gross profit  54,089   132,902   247,811   427,531 
Operating expenses:        
Sales and marketing  22,233   22,243   67,718   63,518 
Research and development  27,177   24,708   84,045   70,990 
General and administrative  32,660   30,958   95,420   90,746 
Net loss from divestiture and sale of assets  197,651      190,201    
Impairment of long-lived assets  26,566   1,237   26,566   1,237 
Restructuring charges (recoveries), net     (1,501)     (357)
Loss (gain) on foreign exchange  1,148   (449)  6,067   (1,798)
Total operating expenses  307,435   77,196   470,017   224,336 
Operating (loss) income  (253,346)  55,706   (222,206)  203,195 
Other income, net:        
Interest income, net  11,103   11,569   38,058   28,366 
Other (loss) income, net  (271)  545   248   1,161 
Total other income  10,832   12,114   38,306   29,527 
(Loss) income before provision for income taxes  (242,514)  67,820   (183,900)  232,722 
Income tax (benefit) expense  (8,920)  12,826   5,441   55,272 
Net (loss) income attributable to IPG Photonics Corporation $(233,594) $54,994  $(189,341) $177,450 
Net (loss) income attributable to IPG Photonics Corporation per share:        
Basic $(5.33) $1.16  $(4.22) $3.75 
Diluted $(5.33) $1.16  $(4.22) $3.73 
Weighted average common shares outstanding:        
Basic  43,837   47,237   44,901   47,364 
Diluted  43,837   47,388   44,901   47,536 
 


 
IPG PHOTONICS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
 
  September 30, December 31,
   2024   2023 
  (In thousands, except share and 
per share data)
ASSETS
Current assets:    
Cash and cash equivalents $883,871  $514,674 
Short-term investments  135,444   662,807 
Accounts receivable, net  163,541   219,053 
Inventories  320,723   453,874 
Prepaid income taxes  27,115   26,038 
Prepaid expenses and other current assets  39,720   38,208 
Total current assets  1,570,414   1,914,654 
Deferred income taxes, net  106,254   88,788 
Goodwill  38,484   38,540 
Intangible assets, net  22,054   26,234 
Property, plant and equipment, net  589,559   602,257 
Other assets  28,365   28,425 
Total assets $2,355,130  $2,698,898 
LIABILITIES AND EQUITY
Current liabilities:    
Accounts payable $39,578  $28,618 
Accrued expenses and other current liabilities  150,788   181,350 
Income taxes payable  3,816   4,893 
Total current liabilities  194,182   214,861 
Other long-term liabilities and deferred income taxes  46,336   68,652 
Total liabilities  240,518   283,513 
Commitments and contingencies    
IPG Photonics Corporation equity:    
Common stock, $0.0001 par value, 175,000,000 shares authorized; 56,591,081 and 43,248,080 shares issued and outstanding, respectively, at September 30, 2024; 56,317,438 and 46,320,671 shares issued and outstanding, respectively, at December 31, 2023.  6   6 
Treasury stock, at cost, 13,343,001 and 9,996,767 shares held at September 30, 2024 and December 31, 2023, respectively.  (1,447,984)  (1,161,505)
Additional paid-in capital  1,025,268   994,020 
Retained earnings  2,606,053   2,795,394 
Accumulated other comprehensive loss  (68,731)  (212,530)
Total IPG Photonics Corporation equity  2,114,612   2,415,385 
Total liabilities and equity $2,355,130  $2,698,898 
 


 
IPG PHOTONICS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
 
  Nine Months Ended September 30,
   2024   2023 
  (In thousands)
Cash flows from operating activities:    
Net (loss) income $(189,341) $177,450 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:    
Depreciation and amortization  46,623   52,678 
Impairment of long-lived assets and restructuring charges (recoveries), net  26,566   (486)
Provisions for inventory, warranty & bad debt  76,434   43,889 
Net loss from divestiture and sale of assets  190,201    
Other  (2,338)  5,238 
Changes in assets and liabilities that provided (used) cash, net of acquisitions:    
Accounts receivable and accounts payable  56,156   (35,257)
Inventories  29,760   (20,736)
Other  (59,949)  (32,852)
Net cash provided by operating activities  174,112   189,924 
Cash flows from investing activities:    
Purchases of and deposits on property, plant and equipment  (75,358)  (85,256)
Proceeds from sales of property, plant and equipment  28,538   30,425 
Purchases of short-term investments  (423,176)  (898,455)
Proceeds from short-term investments  966,214   789,844 
Net cash outflow from divestiture  (25,324)   
Other  385   446 
Net cash provided by (used in) investing activities  471,279   (162,996)
Cash flows from financing activities:    
Principal payments on long-term borrowings     (16,031)
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  1,870   (432)
Purchase of treasury stock, at cost  (286,479)  (159,528)
Net cash used in financing activities  (284,609)  (175,991)
Effect of changes in exchange rates on cash and cash equivalents  8,415   (20,862)
Net increase (decrease) in cash and cash equivalents  369,197   (169,925)
Cash and cash equivalents — Beginning of period  514,674   698,209 
Cash and cash equivalents — End of period $883,871  $528,284 
Supplemental disclosures of cash flow information:    
Cash paid for interest $95  $1,110 
Cash paid for income taxes $38,905  $55,001 
 


 
IPG PHOTONICS CORPORATION
SUPPLEMENTAL SCHEDULE OF AMORTIZATION OF INTANGIBLE ASSETS (UNAUDITED)
 
  Three Months Ended September 30, Nine Months Ended September 30,
   2024  2023  2024  2023
  (In thousands)
Amortization of intangible assets:        
Cost of sales $441 $564 $1,369 $1,692
Sales and marketing  937  1,456  2,811  4,370
Total amortization of intangible assets $1,378 $2,020 $4,180 $6,062
 


 
IPG PHOTONICS CORPORATION
SUPPLEMENTAL SCHEDULE OF STOCK-BASED COMPENSATION (UNAUDITED)
 
  Three Months Ended September 30, Nine Months Ended September 30,
   2024   2023   2024   2023 
  (In thousands)
Cost of sales $2,206  $1,503  $6,472  $6,664 
Sales and marketing  1,695   1,362   4,652   4,045 
Research and development  2,966   2,330   8,048   6,171 
General and administrative  4,261   2,949   10,258   10,582 
Total stock-based compensation  11,128   8,144   29,430   27,462 
Tax effect of stock-based compensation  (2,517)  (1,772)  (6,504)  (6,016)
Net stock-based compensation $8,611  $6,372  $22,926  $21,446 


  Three Months Ended September 30, Nine Months Ended September 30,
   2024   2023   2024   2023 
  (In thousands)
Excess tax (detriment) benefit on stock-based compensation $(220) $(55) $(4,113) $(1,741)
 

IPG PHOTONICS CORPORATION
SUPPLEMENTAL SCHEDULE OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)

Use of Non-GAAP Adjusted Financial Information

The following information provides the definition of adjusted gross profit, adjusted gross margin, adjusted net income and adjusted earnings per share (EPS) as presented by IPG Photonics Corporation (the “Company”), which are financial measures that are not calculated or presented in accordance with GAAP, and reconciliation to the most directly comparable financial measures calculated and presented in accordance with GAAP. The Company has provided adjusted gross profit, adjusted gross margin, adjusted net income and adjusted EPS as supplemental information and in addition to the financial measures presented by the Company that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for or alternative to, and should be considered in conjunction with, the GAAP financial measure presented by the Company.

We define adjusted gross profit as gross profit as reported, adjusted for non-recurring, infrequent, or unusual changes, including a one-time inventory provision related to a change in estimate of recoverability due to the current demand environment.

We define adjusted gross margin as adjusted gross profit divided by total revenue.

We define adjusted net income as net income as reported, adjusted for non-recurring, infrequent, or unusual changes, including one-time charges incurred in connection with the disposition of our Russian operations, impairment of long-lived assets, loss on foreign currency exchange, tax impacts and a one-time adjustment to inventory provision related to a change in estimate of recoverability due to the current demand environment, and other adjustments that the Company believes appropriate.

We define adjusted EPS as adjusted net income divided by the weighted-average diluted shares outstanding.

Management believes that these non-GAAP financial measures provide additional means of evaluating period-over-period operating performance. Specifically, these non-GAAP financial measures provide management with additional means to understand and evaluate the operating results and trends in our ongoing business by eliminating certain non-cash expenses and other items that management believes might otherwise make comparisons of our ongoing business with prior periods more difficult, obscure trends in ongoing operations, or reduce management’s ability to make useful forecasts.

In addition, management understands that some investors and financial analysts find this information helpful in analyzing our financial and operational performance and comparing this performance to our peers and competitors. However, these non-GAAP financial measures have limitations as an analytical tool and are not intended to be an alternative to financial measures prepared in accordance with GAAP. In addition, it should be noted that these non-GAAP financial measures may be different from non-GAAP measures used by other companies. Management may, however, utilize other measures to illustrate performance in the future. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures. A reconciliation of our non-GAAP financial measures to their most directly comparable GAAP measures has been provided below. These non-GAAP measures exclude (a) a one-time adjustment to our inventory provision related to a change in estimate of recoverability due to the current demand environment, (b) one-time adjustments relating to the net loss from divestiture and sale of assets incurred in the disposition of our Russian operations in the third quarter of 2024and (c) impairment of long lived assets related to our Belarusian operations.

 
 IPG PHOTONICS CORPORATION
SUPPLEMENTAL SCHEDULE OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
 
   Three Months Ended September 30, 
   2024 
(In thousands, except percentages)    
Gross profit $54,089 
Gross margin  23.2%
Add: Inventory provision  29,884 
Adjusted gross profit $83,973 
Adjusted gross margin  36.0%
 


  Three Months Ended September 30,
   2024 
(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     $(233,594) $(5.33)
Adjustments to reconcile to adjusted net income:        
Inventory provision $29,884 $(8,407)  21,477   0.49 
Long-lived asset impairment  26,566     26,566   0.61 
Loss on divestiture  197,651  1,824   199,475   4.55 
Loss on foreign exchange  1,148  (190)  958   0.02 
Discrete tax impacts    (1,981)  (1,981)  (0.05)
Total adjustments $255,249 $(8,754) $246,495  $5.62 
Adjusted net income and adjusted diluted EPS     $12,901  $0.29 
 

FAQ

What was IPG Photonics (IPGP) revenue in Q3 2024?

IPG Photonics reported revenue of $233.1 million in Q3 2024, representing a 23% decrease from the same period last year.

What is IPGP's Q4 2024 earnings guidance?

IPG Photonics expects Q4 2024 earnings per diluted share between $0.05 to $0.35, with revenue guidance of $210-240 million.

How much did IPGP lose on its Russian operations divestiture in Q3 2024?

IPG Photonics recorded a $198 million loss on the divestiture of its Russian operations in Q3 2024.

What was IPGP's gross margin in Q3 2024?

IPGP's gross margin was 23.2% in Q3 2024, down from 44.1% in Q3 2023, primarily due to increased inventory provisions and reduced manufacturing expense absorption.

IPG Photonics Corporation

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