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Oxford, MA - IPG Photonics (NASDAQ: IPGP)for its fourth quarter and fiscal year ended December 31, 2014increased revenue and net income by 25 and 54 percent, respectively, compared to the same period last year. For the full year, the company grew its top line approximately 19 percent while increasing the bottom line by 29 percent.
"We continued to expand our breadth of applications, made great strides in penetrating cutting OEMs, and improved our competitive position in the automotive market," says Dr. Valentin Gapontsev, IPG Photonics' CEO. "In addition, the growth we anticipated in metal-based 3D printing at the beginning of the year materialized. The growth in net income reflects the leverage we expected to achieve in our operating model."
Revenues for the fourth quarter of 2014 increased 25 percent year-over-year to a record $207.4 million, driven by continued strong sales in materials processing as well as increases from other non-materials processing applications. High-power laserrevenue increased 32 percent from the fourth quarter of 2013 due in part to strong sales in the North American automotive industry and continued penetration of the metal cutting market worldwide. Medium-power laser sales grew 58 percent related to sales for fine-processing applications. Increased demand for the company's new low-cost pulsed lasers drove a 16-percent increase in pulsed laser sales, while quasi-continuous-wave (QCW) laser sales increased 23 percent in the fourth quarter compared to the prior-year period, as this product line continued to gain acceptance.
In the fourth quarter, earnings per diluted share increased by 52.9 percent to a record $1.07, including a benefit of $0.03 related to foreign exchange transaction gains. The growth in earnings per share was driven by the increase in revenue and an improvement in operating margins.
During the fourth quarter, the company generated $60.1 million in cash from operations and used $15.9 million to finance capital expenditures. It ended the quarter with $522.2 million in cash and cash equivalents.
"The book-to-bill ratio was greater than one in the fourth quarter," says Gapontsev. "We exited 2014 with a backlog of $321.0 million, representing an increase of 21 percent from year-end 2013. Backlog includes $174.5 million of orders with firm shipment dates and $146.5 million of frame agreements that we expect to ship within one year."
"We enter 2015 with a strong backlog and remain focused on gaining further share in our established materials processing applications, completing development of and introducing new products which will expand our available market and applying our lasers in large scale and novel applications beyond our core applications in metal processing," concludes Gapontsev.
For the first quarter of 2015, the company expects revenue in the range of $195 million to $205 million. It anticipates earnings per diluted share in the range of $0.92 to $1.02 based on 52,873,000 diluted common shares, which includes 52,153,000 basic common shares outstanding and 720,000 potentially dilutive options at December 31, 2014.
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