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corresponding increase in operating margins and diluted earnings per share of $0.07.”
“We see signs that a macroeconomic recovery is underway across most geographic regions,” stated Dr. Gapontsev. “Sales for materials processing applications increased 23% year- over-year and 4% sequentially, driven by increased sales of pulsed lasers for materials processing applications, particularly marking and engraving.”
“Sequentially, medical applications were down 36% compared with a strong fourth quarter. The strength in materials processing and medical applications more than offset weaker sales in the telecommunications and advanced applications market which declined by 31% and 34%, respectively, year-over-year and 45% and 31%, respectively, on a sequential basis.”
“During the first quarter, we generated $7.9 million in cash from operations and ended the quarter with $84.4 million in cash and cash equivalents, an increase of $1.5 million from year-end 2009,” continued Dr Gapontsev. “Cash outflows related to capital expenditures and other investing activities for the first quarter of 2010 was $5.5 million, which was in line with our plan for the year.”
“We are encouraged by our prospects for a recovery in 2010 as we see demand returning in our most significant applications and geographies, including low-power marking and engraving applications and increasing demand for high-power lasers particularly for cutting applications, which is the largest single application in the materials processing market” said Dr. Gapontsev.
For the second quarter of 2010, IPG Photonics expects revenues in the range of $57 million to $62 million. The Company anticipates earnings per diluted share in the range of $0.10 to $0.15 based on 47,191,000 common shares, which includes 46,098,000 basic common shares outstanding and 1,093,000 potentially dilutive options at March 31, 2010.
The Company held a conference call reviewing its financial results and business highlights yesterday.
The call was hosted by IPG’s Vice President, Angelo Lopresti, Chairman and CEO, Dr. Valentin Gapontsev, and Vice President and CFO, Tim Mammen.
During the call, Timothy Mammen said, “We’re going to clearly expect a pickup up in the high power lasers from what is traditionally a weaker start to the quarter. I just mentioned that pulse lasers, we’ve sold about 1,400 units in the first quarter and coming into the second half of the year we want to be shipping closer to 2,000. “
“In terms of geographies, Asia, China, Korea, we’ve seen some improvement in India. German laser business has recovered very well. The sales of cutting lasers to companies in Italy, in China, in the U.S. and other parts of Europe has continued to track very well.”
“We’ve seen an improvement in some of the medium power lasers in Europe in the printing business. That’s come back quite nicely as well as an improvement in the centering applications.”
“The key question will be to see whether we can get an improvement in the U.S. sales. I think this quarter; we’re just going to track that a little bit further.”
Dr. Gapontsev said during the call, “On the market front, I am pleased to inform you that the 2009 fiber laser market results from the firm Optech Consulting are in, with associated positive conclusions for fiber lasers and IPG. According to Optech the global fiber laser market decreased last year by 24% from $317 million in 2008 to $242 million in 2009 compared to the total globall aser market that decreased by 31% from $7.5 billion in 2008 to $5.5 billion in 2009”.
“These results demonstrate increased momentum for fiber laser solutions versus
June
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