IPG Photonics exceeds $1.4 billion in yearly revenue
Fibre laser manufacturer IPG Photonics achieved $1.41 billion in yearly revenue throughout 2017, a 40 per cent increase over the $1.01 billion recorded last year. Net income for the year was $3.47 billion, an increase of 33 per cent over the $260.8 million posted at the end of 2016.
Fourth quarterly revenues totalling $361.1 million were posted to conclude the year, a 29 per cent increase year-over-year. During the quarter IPG generated $108 million in cash from operations and used $27 million to finance capital expenditures. The firm therefore ended the year with $1.12 billion in cash and cash equivalents and short-term investments, representing an increase of $286 million from 31 December 2016.
Materials processing sales accounted for approximately 94 per cent of IPG’s fourth quarterly revenue, an increase of 32 per cent year-over-year, demonstrating particular strength in cutting, welding and 3D printing applications.
High-power laser sales increased 40 per cent year-over-year for the quarter, while pulsed laser sales increased by 20 per cent. Growth in systems and beam delivery accessories led to sales of other laser products increasing by 24 per cent year-over-year.
On a geographical basis, IPG achieved double-digit year-over-year sales growth in China, Europe, North America and Turkey, with sales also growing modestly in Japan.
For the first quarter of 2018 IPG expects revenue growth in the range of 15-24 per cent year-over-year, or $330 million-$355 million. For the full year the firm is targeting revenue growth of 10-15 per cent.
Coherent receives first volume order for high-power fibre lasers in China
Coherent has announced net sales of $477.6 million for its first 2018 fiscal quarter ending 30 December 2017, with a GAAP net income of $41.9 million, an increase of 38 per cent year-over-year for both figures. These results allowed Coherent to repay a further €75 million of its debts, with it now having repaid approximately one third of the debt used to finance its acquisition of Rofin in 2016.
During the quarter the firm received its first volume order for high-power fibre lasers from one of the largest Chinese machine tool manufacturers. It also experienced a solid uptick in medical device manufacturing workstations.
Semiconductor strength and US sales drive Jenoptik success
Integrated photonics group Jenoptik achieved new record figures in 2017, with provisional calculations anticipating yearly revenue growth of 9.2 per cent to around €748 million, up from €684.8 million last year. Earnings before interest and tax (EBIT) improved at a faster rate to just under €78 million, up 17.8 per cent from €66.2 million last year.
Over the full year, the company received new orders with a combined value of approximately €803 million, a rise of 9.4 per cent from €733.8 million last year.
Business performance was facilitated by strong demand from the semiconductor equipment industry and, on a regional level, strong growth in the US, according to the group.
Jenoptik will enter 2018 with a new strategy that focuses more clearly on photonic technologies in all of the company’s initiatives and developments, particularly those involving information processing, smart manufacturing, sensing and metrology, and biophotonics.
The group’s optics and life science segment achieved new revenue and earnings records in 2017, primarily due to the very positive pace of growth in the semiconductor equipment industry. Segment revenue rose 17 per cent to over €259 million and EBIT improved significantly to more than €50 million.
Jenoptik’s mobility segment reported growth of around 9 per cent to approximately €270 million, with EBIT coming to just under €19 million, roughly €6 million below the prior year’s €24.4 million, in particular due to one-off costs in a traffic safety project.
Revenue in the defence and civil systems segment exceeded €219 million in 2017, with an EBIT of around €19 million, matching the high levels of the prior year (218.3 million and 19.1 million respectively). As part of the new strategy going forward, the photonic businesses of this segment will be carved-out and merged with the activities in today’s optics and life science segment.
For the coming year Jenoptik is targeting revenues between €790 million and €810 million.
3D demand leads to Lumentum exceeding quarterly guidance
Optics and photonics manufacturer Lumentum posted net revenue of $404.6 million and GAAP net income of $204.8 million for its second fiscal quarter 2018 ending 30 December 2017, a significant increase over the $265.0 million and $11.8 million recorded last year respectively. The results exceeded the firm’s guidance for the quarter due to a strong demand in 3D sensing, industrial and telecom pump lasers, and reconfigurable optical add-drop multiplexers (ROADMs).
Optical communications accounted for 89 per cent of the firm’s revenue for the quarter, corresponding to $360.1 million, up approximately 52 per cent year-over-year from $236.6 million. Lasers sales accounted for the other 11 per cent of revenue corresponding to $44.5 million, up approximately 57 per cent year-over-year from $28.3 million.
By the end of the quarter Lumentum held $624.5 million in total cash and short-term investments, with the firm expecting net revenue to be in the range of $280 million to $305 million for its third fiscal quarter 2018.
Keopsys Quantel Group boosted by investments in lidar for autonomous vehicles
In 2017, the Keopsys Quantel Group generated pro forma consolidated revenues of €85.1 million, up 5.8 per cent from 2016. These figures, representative of the new Keopsys Quantel group's activity following the merger of the two firms in October 2017, include full-year Keopsys and Quantel group revenues.
The group’s lidar sensor business recorded a strong acceleration in 2017, achieving an 18 per cent increase in yearly revenue to €10.7 million. The increase reflects the impact of significant investments made by various group customers in the development of autonomous vehicles.
Yearly revenue from the group’s industrial and scientific division grew by 14.5 per cent to $32.3 million in 2017, with sales supported by activity in Asia and the rise in production capacity of diodes, whose order book remains at a high level, according to the group.
A 3.9 per cent increase in yearly revenue to $31.7 million for the group’s medical division reflects a dynamic second half of the year, aided by positive market response and the group having ramped up the production of its new Easyret laser.
Considering the potential of its markets and the commercial dynamics experienced by the Keopsys Quantel Group since the merger, its 2018 target is to achieve revenue growth at least equivalent to that of 2017.
New products account for more than half of II-VI quarterly growth
Electronic component manufacturer II-VI’s revenue for second fiscal quarter 2018 ending 31 December 2017 was $281.5 million, up 21.4 per cent year-over-year. Revenue for the six months ending 31 December 2017 was $543 million, up approximately 20 per cent year-over-year. The firm also currently has a record backlog of over $400 million after the second quarter, as well as a strengthening book to bill ratio.
Each segment saw growth in their end markets, and according to II-VI, the firm’s newer products accounted for more than half of the growth experienced this quarter.
The firm’s photonics segment accounted for $110.5 million for the second quarter and $221.1 million for the six months ending 31 December 2017, up 9.5 per cent and 12.4 per cent respectively year-over-year.
II-VI’s laser solutions segment accounted for $109.8 million for the second quarter and $203.1 million for the six months ending 31 December 2017, up 34.7 per cent and 26.3 per cent respectively year-over-year.
The performance products segment accounted for $61.2 million for the second quarter and $118.8 million for the six months ending 31 December 2017, up 23.9 per cent and 24.0 per cent respectively from last year.
II-VI predicts revenues of $270 million to $285 million for the third fiscal quarter 2018 ending 31 March 2018.