IPG Photonics Expects to Exceed Fourth-Quarter Guidance for both Revenues and Earnings

Date Announced: 10 Feb 2011

Company Reports Broad-based Demand Strength Across Most Geographies, End Markets and Product Categories.

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.

Source: IPG Photonics

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