IPG Photonics has reported annual sales exceeding $1 billion in 2016, an increase of 12 per cent year-over-year. The company’s fourth quarter sales, driven by the materials processing markets, increased by 25 per cent to $280.1 million year-over-year. The company reported strong growth in China, Europe, Russia and Japan, while sales in North America were slightly up from Q4 2015.
The company’s materials processing sales saw a 24 per cent increase compared to Q4 2015. According to IPG, this is due to solid demand for cutting and micro materials processing applications. High-power fibre laser sales grew 35 per cent year-over-year, while sales of QCW lasers grew by double digits and pulsed lasers by single digits.
Sales to other markets were driven by a strong growth in telecoms, increasing by 48 per cent year-over-year, according to the company. In May 2016, IPG bought Menara Networks for $46.8 million, a provider of optical transmission modules and systems, which will allow IPG to expand its telecom product offerings.
During the fourth quarter, IPG generated $99.3 million in cash from operations and used $27.0 million to finance capital expenditures, compared to the annual figures totalling $292.3 million of generated cash and $127.0 million financing capital expenditures. The company ended the quarter with $830.6 million in cash, cash equivalents and short-term investments, representing an increase of $141.5 million from 31 December 2015.
‘Looking ahead, we are building on strong momentum as we capitalise on new growth opportunities with existing and new OEMs and end users,’ said Dr Valentin Gapontsev, CEO of IPG. ‘In addition, we are enthusiastic about the new innovative products we are bringing to market to extend our technology lead and address applications beyond our core markets. We are confident in our prospects for strong sales and profitability growth as we enter 2017.’
IPG expects revenue in the range of $245-260 million for the first quarter of the year, and expects its annual revenue to grow by 10-14 per cent.