IPG Photonics Corporation (IPGP) has reported 10.26 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $69.24 million, or $1.29 a share in the quarter, compared with $62.79 million, or $1.18 a share for the same period last year.
Revenue during the quarter grew 9.23 percent to $266.02 million from $243.54 million in the previous year period. Gross margin for the quarter contracted 31 basis points over the previous year period to 54.43 percent. Total expenses were 64.63 percent of quarterly revenues, up from 63.23 percent for the same period last year. That has resulted in a contraction of 141 basis points in operating margin to 35.37 percent.
Operating income for the quarter was $94.09 million, compared with $89.56 million in the previous year period.
"IPG achieved another quarter of record sales for the third quarter of 2016," said Dr. Valentin Gapontsev, IPG Photonics' chief executive officer. "Sales of $266 million were above the high end of our guidance range, reflecting a rebound in our core materials processing applications driven by increased demand in Asia, North America and certain parts of Europe. In addition to our record sales, we are also encouraged by robust bookings that remained strong throughout the quarter and were not impacted by the typical seasonality. As a result, our book-to-bill was above one for the third quarter."
For the fourth-quarter, Ipg Photonics Corp expects revenue to be in the range of $255 million to $270 million. The company projects diluted earnings per share to be in the range of $1.17 to $1.32.
Operating cash flow remains almost stable
IPG Photonics Corporation has generated cash of $193 million from operating activities during the nine month period, down 0.83 percent or $1.61 million, when compared with the last year period.
The company has spent $166.90 million cash to meet investing activities during the nine month period as against cash outgo of $55.42 million in the last year period. It has incurred net capital expenditure of $99.83 million on net basis during the nine month period, up 97.57 percent or $49.30 million from year ago period.
Cash flow from financing activities was $29.55 million for the nine month period, up 2,354.32 percent or $28.35 million, when compared with the last year period.
Cash and cash equivalents stood at $645.56 million as on Sep. 30, 2016, down 0.87 percent or $5.66 million from $651.22 million on Sep. 30, 2015.
Working capital increases
IPG Photonics Corporation has recorded an increase in the working capital over the last year. It stood at $1,120.87 million as at Sep. 30, 2016, up 20.62 percent or $191.65 million from $929.22 million on Sep. 30, 2015. Current ratio was at 8.20 as on Sep. 30, 2016, up from 7.24 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 139 days for the quarter from 217 days for the last year period. Days sales outstanding went down to 62 days for the quarter compared with 73 days for the same period last year.
Days inventory outstanding has decreased to 92 days for the quarter compared with 162 days for the previous year period. At the same time, days payable outstanding went down to 15 days for the quarter from 18 for the same period last year.
Debt increases substantially
IPG Photonics Corporation has witnessed an increase in total debt over the last one year. It stood at $41.62 million as on Sep. 30, 2016, up 103.87 percent or $21.20 million from $20.42 million on Sep. 30, 2015. Total debt was 2.41 percent of total assets as on Sep. 30, 2016, compared with 1.45 percent on Sep. 30, 2015. Debt to equity ratio was at 0.03 as on Sep. 30, 2016, up from 0.02 as on Sep. 30, 2015.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
