Ipg Photonics Corporation (IPGP) has reported 23.77 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $75.13 million, or $1.39 a share in the quarter, compared with $60.70 million, or $1.14 a share for the same period last year.
Revenue during the quarter grew 25.26 percent to $280.12 million from $223.63 million in the previous year period. Gross margin for the quarter expanded 88 basis points over the previous year period to 55.45 percent. Total expenses were 62.44 percent of quarterly revenues, down from 62.88 percent for the same period last year. This has led to an improvement of 43 basis points in operating margin to 37.56 percent.
Operating income for the quarter was $105.20 million, compared with $83.02 million in the previous year period.
"IPG delivered another year of record results in 2016 exceeding $1 billion in sales for the first time as we celebrate our 10th anniversary as a public company," said Dr. Valentin Gapontsev, IPG Photonics' chief executive officer. "For the fourth quarter of 2016 we reported revenue and EPS above our guidance ranges. Record sales of $280.1 million increased 25% year-over-year for the fourth quarter driven by continued strength in materials processing. We achieved a strong gross margin of 55.5% and a 22% year-over-year increase in earnings per diluted share to a record $1.39, demonstrating the leverage in our operating model."
For the first-quarter, Ipg Photonics Corporation projects revenue to be in the range of $245 million to $260 million. The company forecasts diluted earnings per share to be in the range of $1.10 to $1.25.
For the financial year 2017, Ipg Photonics Corporation projects revenue to grow in the range of 10 percent to 14 percent.
Operating cash flow improvesIpg Photonics Corporation has generated cash of $292.29 million from operating activities during the year, up 13.92 percent or $35.72 million, when compared with the last year. The company has spent $274.41 million cash to meet investing activities during the year as against cash outgo of $181.57 million in the last year. It has incurred net capital expenditure of $126.38 million on net basis during the year, up 80.66 percent or $56.43 million from year ago.
Cash flow from financing activities was $32.85 million for the year, up 511.75 percent or $27.48 million, when compared with the last year.
Cash and cash equivalents stood at $623.86 million as on Dec. 31, 2016, up 7.09 percent or $41.32 million from $582.53 million on Dec. 31, 2015.
Debt increases substantiallyIpg Photonics Corporation has witnessed an increase in total debt over the last one year. It stood at $40.82 million as on Dec. 31, 2016, up 107.57 percent or $21.16 million from $19.67 million on Dec. 31, 2015. Total debt was 2.28 percent of total assets as on Dec. 31, 2016, compared with 1.35 percent on Dec. 31, 2015. Debt to equity ratio was at 0.03 as on Dec. 31, 2016, up from 0.02 as on Dec. 31, 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
