Ipg Photonics Corporation (IPGP) has reported 51.94 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $74.94 million, or $1.38 a share in the quarter, compared with $49.33 million, or $0.92 a share for the same period last year.
Revenue during the quarter surged 37.92 percent to $285.85 million from $207.25 million in the previous year period. Gross margin for the quarter contracted 19 basis points over the previous year period to 55.02 percent. Total expenses were 64.50 percent of quarterly revenues, down from 66.21 percent for the same period last year. This has led to an improvement of 172 basis points in operating margin to 35.50 percent.
Operating income for the quarter was $101.48 million, compared with $70.02 million in the previous year period.
"Our first quarter results were driven by rapid growth across our core products, applications and geographies. First quarter revenue and EPS were above the high end of our guidance as the pace at which our fiber lasers are replacing conventional lasers and non-laser technology appears to be accelerating. During the first quarter we achieved record sales of $285.8 million, which increased 38% year over year, while EPS of $1.38 increased 50% year over year," said Dr. Valentin Gapontsev, IPG Photonics chief executive officer.
For the second-quarter, Ipg Photonics Corp forecasts revenue to be in the range of $320 million to $340 million. The company expects diluted earnings per share to be in the range of $1.50 to $1.70 for the second-quarter.
Operating cash flow declines Ipg Photonics Corp has generated cash of $50.82 million from operating activities during the quarter, down 21.69 percent or $ 14.08 million, when compared with the last year period.
Cash flow from investing activities was $20.37 million for the quarter as against cash outgo of $44.68 million in the last year period. It has incurred net capital expenditure of $21.78 million on net basis during the quarter, down 12.30 percent or $3.05 million from year ago period.
The company has spent $3.74 million cash to carry out financing activities during the quarter as against cash inflow of $2.14 million in the last year period.
Cash and cash equivalents stood at $697.78 million as on Mar. 31, 2017, up 13.70 percent or $84.09 million from $613.69 million on Mar. 31, 2016.
Working capital increases
Ipg Photonics Corp has recorded an increase in the working capital over the last year. It stood at $1,233.28 million as at Mar. 31, 2017, up 17.80 percent or $186.31 million from $1,046.97 million on Mar. 31, 2016. Current ratio was at 8.82 as on Mar. 31, 2017, up from 7.95 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 131 days for the quarter from 269 days for the last year period. Days sales outstanding went down to 57 days for the quarter compared with 81 days for the same period last year.
Days inventory outstanding has decreased to 92 days for the quarter compared with 211 days for the previous year period. At the same time, days payable outstanding went down to 18 days for the quarter from 23 for the same period last year.
Debt increases substantially
Ipg Photonics Corp has witnessed an increase in total debt over the last one year. It stood at $40.03 million as on Mar. 31, 2017, up 108.83 percent or $20.86 million from $19.17 million on Mar. 31, 2016. Total debt was 2.10 percent of total assets as on Mar. 31, 2017, compared with 1.24 percent on Mar. 31, 2016. Debt to equity ratio was almost stable at 0.02 as on Mar. 31, 2017, when compared with the last year. 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: [email protected]
