Form 8-K - Current report

FALSE000111192800011119282024-10-292024-10-29

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

October 29, 2024

 Date of Report (Date of earliest event reported)

IPG PHOTONICS CORPORATION

(Exact name of registrant as specified in its charter)

Delaware  (State or Other Jurisdiction  of Incorporation)

001-33155  (Commission File No.)

04-3444218  (IRS Employer  Identification No.)

377 Simarano Drive

Marlborough, Massachusetts 01752

(Address of Principal Executive Offices, including Zip Code)

[phone]

(Registrant’s telephone number)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐						Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐						Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐						Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐						Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Title of each class			Trading Symbol			Name of each exchange on which registered
Common Stock, par value $0.0001 per share			IPGP			Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company  ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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Item 2.02. Results of Operations and Financial Condition

On October 29, 2024, IPG Photonics Corporation (the "Company") announced its financial results for the quarter ended September 30, 2024. The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

In accordance with General Instruction B.2 of Form 8-K, the information in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 referenced herein, shall not be deemed "filed" for purposes of Section 18 of the Securities Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 8.01 Other Events.

On October 29, 2024, the Company issued a press release announcing it entered into a definitive agreement to acquire Clean-Lasersysteme GmbH, a leader in laser cleaning systems based in Herzogenrath, Germany. The transaction remains subject to the completion of customary conditions, including regulatory approval, and is expected to close during the fourth quarter of 2024.

The press release relating to the acquisition of Clean-Lasersysteme GmbH is attached as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits

Exhibit 99.1 relating to Item 2.02 shall be deemed to be furnished, and not filed:

Exhibit Number						Exhibit Description
Exhibit 99.1						Press Release issued by IPG Photonics Corporation on October 29, 2024.
Exhibit 99.2						Press Release issued by IPG Photonics Corporation on October 29, 2024.
Exhibit 104						Inline XBRL for the cover page of this Current Report on Form 8-K.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned thereunto duly authorized.

 

IPG PHOTONICS CORPORATION

October 29, 2024

By:

/s/ Timothy P.V. Mammen

Timothy P.V. Mammen

Senior Vice President and Chief Financial Officer

Exhibit 99.1

 

IPG PHOTONICS ANNOUNCES THIRD QUARTER 2024 FINANCIAL RESULTS

Focusing on Execution and Future Growth Opportunities

Delivered Results At the High End of Guidance

MARLBOROUGH, Mass. – October 29, 2024 - IPG Photonics Corporation (NASDAQ: IPGP) today reported financial results for the third quarter ended September 30, 2024.

						Three Months Ended September 30,																		Nine Months Ended September 30,
(In millions, except per share data and percentages)						2024						2023						Change						2024						2023						Change
Revenue						$	233.1					$	301.4					(23)		%				$	742.8					$	988.5					(25)		%
Gross margin						23.2		%				44.1		%										33.4		%				43.2		%
Operating (loss) income						$	(253.3)					$	55.7					NM						$	(222.2)					$	203.2					NM
Operating margin						(108.7)		%				18.5		%										(29.9)		%				20.6		%
Net (loss) income attributable to IPG Photonics Corporation						$	(233.6)					$	55.0					NM						$	(189.3)					$	177.5					NM
(Loss) earnings per diluted share (1)						$	(5.33)					$	1.16					NM						$	(4.22)					$	3.73					NM

(1) Adjusted diluted EPS was $0.29 for the three months ended September 30, 2024. Refer to supplemental schedule of non-GAAP measures for reconciliation details.

NM - not meaningful.

Management Comments

"IPG has made important progress strategically and operationally in the last several months,” said Dr. Mark Gitin, IPG Photonics’ Chief Executive Officer. “Our third-quarter results were at the high end of our guidance when adjusted for the divested revenue. We completed our exit from Russia and are strengthening our position in fast-growing high-precision laser cleaning applications with the announced acquisition of cleanLASER. These moves, along with progress in our innovation pipeline and actions underway to gain efficiencies across our business, underscore that we are controlling what we can control as we position for demand recovery.”

Financial Highlights

Third quarter revenue of $233 million decreased 23% year over year due to lower demand in industrial and e-mobility markets. Changes in foreign exchange rates did not have a material impact on revenue. Materials processing sales accounted for 89% of total revenue and decreased 22% year over year, primarily due to lower sales in cutting applications. Other sales decreased 28% year over year due to lower revenue in medical and advanced applications. Emerging growth products sales accounted for 45% of total revenue, a slight decrease from 46% in the prior quarter due to lower revenue for high power pulsed lasers and medical products. By region, sales decreased 20% in North America, 27% in China, 29% in Europe and 8% in Japan on a year-over-year basis.

Gross margin of 23.2% decreased significantly year over year due to increased inventory provision and reduced absorption of manufacturing expenses, partially offset by lower tariffs and shipping costs. The inventory provision included $30 million related to a change in estimate of recoverability due to the current demand environment, which reduced gross margin by 12.8%, and diluted EPS by $0.49. Excluding this inventory provision results in an adjusted gross margin of 36.0%. Loss per diluted share (EPS) of $5.33 included loss on divestiture of our Russian operations which decreased operating income by $198 million and asset impairment charges of $27 million. These items decreased diluted EPS by $5.16 in the third quarter. Foreign exchange transaction loss decreased operating income by $1 million and earnings per share by $0.02. Excluding these items

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Exhibit 99.1

results in an adjusted diluted EPS of $0.29 (1) in the third quarter. During the third quarter, IPG generated $66 million in cash from operations and spent $23 million on capital expenditures and $74 million on share repurchases.

Business Outlook and Financial Guidance

“We continue to believe we are bouncing along the bottom of a muted demand environment, which is supported by a book-to-bill of one for the third quarter. IPG’s strong technology portfolio and expertise across lasers positions us well in new growth areas where fiber lasers can replace incumbent technologies and differentiates us from competition," concluded Dr. Gitin.

For the fourth quarter of 2024, IPG expects revenue of $210 million to $240 million, gross margin between 35% and 38%, and operating expenses of $78 million to $80 million. The Company expects the fourth quarter tax rate to be approximately 25%, including certain discrete items. IPG anticipates delivering earnings per diluted share in the range of $0.05 to $0.35. This guidance excludes Russian operations which were sold in the third quarter.

As discussed in more detail in the "Safe Harbor" passage of this news release, actual results may differ from this guidance due to various factors including, but not limited to, trade policy changes and trade restrictions, product demand, order cancellations and delays, competition, tariffs, currency fluctuations and general economic conditions. This guidance is based upon current market conditions and expectations, and is subject to the risks outlined in the Company's reports filed with the SEC, and assumes exchange rates relative to the U.S. dollar of euro 0.90, Japanese yen 143 and Chinese yuan 7.01, respectively.

Supplemental Financial Information

Additional supplemental financial information is provided in the unaudited Financial Data Workbook and Third Quarter 2024 Earnings Call Presentation available on the investor relations section of the Company's website at investor.ipgphotonics.com.

Conference Call Reminder

The Company will hold a conference call today, October 29, 2024 at 10:00 am ET. To access the call, please dial 877-407-6184 in the US or 201-389-0877 internationally. A live webcast of the call will also be available and archived on the investor relations section of the Company's website at investor.ipgphotonics.com.

Contact

Eugene Fedotoff

Senior Director, Investor Relations

IPG Photonics Corporation

508-597-4713

[e-mail]

About IPG Photonics Corporation

IPG Photonics Corporation is the leader in high-power fiber lasers and amplifiers used primarily in materials processing and other diverse applications. The Company’s mission is to develop innovative laser solutions making the world a better place. IPG accomplishes this mission by delivering superior performance, reliability and usability at a lower total cost of ownership compared with other types of lasers and non-laser tools, allowing end users to increase productivity and decrease costs. IPG is headquartered in Marlborough, Massachusetts and has more than 30 facilities worldwide. For more information, visit www.ipgphotonics.com.

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Exhibit 99.1

Safe Harbor Statement

Information and statements provided by IPG and its employees, including statements in this press release, that relate to future plans, events or performance are forward-looking statements. These statements involve risks and uncertainties. Any statements in this press release that are not statements of historical fact are forward-looking statements, including those statements related to the acquisition of cleanLASER, our strong technology portfolio and expertise across lasers positioning us well in new growth areas where fiber lasers can replace incumbent technologies and differentiates us from competition, and statements related to revenue, gross margin and operating expenses outlook, tax rate and earnings guidance, and the impact of the U.S. dollar on our guidance for fourth quarter of 2024. Factors that could cause actual results to differ materially include risks and uncertainties, including risks associated with the strength or weakness of the business conditions in industries and geographic markets that IPG serves, particularly the effect of downturns in the markets IPG serves; uncertainties and adverse changes in the general economic conditions of markets; inability to manage risks associated with international customers and operations; changes in trade controls and trade policies; IPG's ability to penetrate new applications for fiber lasers and increase market share; the rate of acceptance and penetration of IPG's products; foreign currency fluctuations; high levels of fixed costs from IPG's vertical integration; the appropriateness of IPG's manufacturing capacity for the level of demand; competitive factors, including declining average selling prices; the effect of acquisitions and investments; inventory write-downs; asset impairment charges; intellectual property infringement claims and litigation; interruption in supply of key components; manufacturing risks; government regulations and trade sanctions; and other risks identified in IPG's SEC filings. Readers are encouraged to refer to the risk factors described in IPG's Annual Report on Form 10-K (filed with the SEC on February 21, 2024) and IPG's reports filed with the SEC, as applicable. Actual results, events and performance may differ materially. Readers are cautioned not to rely on the forward-looking statements, which speak only as of the date hereof. IPG undertakes no obligation to update the forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Use of Non-GAAP Adjusted Financial Information

We refer to certain financial measures that are not recognized under United States generally accepted accounting principles (“GAAP”). Please see “Supplemental Schedule of Non-GAAP Financial Measures” below for additional information and a reconciliation of the Non-GAAP financial measures to the most comparable GAAP financial measures.

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Exhibit 99.1

IPG PHOTONICS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

 

						Three Months Ended September 30,												Nine Months Ended September 30,
						2024						2023						2024						2023
						(In thousands, except per share data)
Net sales						$	233,143					$	301,401					$	742,797					$	988,546
Cost of sales						179,054						168,499						494,986						561,015
Gross profit						54,089						132,902						247,811						427,531
Operating expenses:
Sales and marketing						22,233						22,243						67,718						63,518
Research and development						27,177						24,708						84,045						70,990
General and administrative						32,660						30,958						95,420						90,746
Net loss from divestiture and sale of assets						197,651						—						190,201						—
Impairment of long-lived assets						26,566						1,237						26,566						1,237
Restructuring charges (recoveries), net						—						(1,501)						—						(357)
Loss (gain) on foreign exchange						1,148						(449)						6,067						(1,798)
Total operating expenses						307,435						77,196						470,017						224,336
Operating (loss) income						(253,346)						55,706						(222,206)						203,195
Other income, net:
Interest income, net						11,103						11,569						38,058						28,366
Other (loss) income, net						(271)						545						248						1,161
Total other income						10,832						12,114						38,306						29,527
(Loss) income before provision for income taxes						(242,514)						67,820						(183,900)						232,722
Income tax (benefit) expense						(8,920)						12,826						5,441						55,272
Net (loss) income attributable to IPG Photonics Corporation						$	(233,594)					$	54,994					$	(189,341)					$	177,450
Net (loss) income attributable to IPG Photonics Corporation per share:
Basic						$	(5.33)					$	1.16					$	(4.22)					$	3.75
Diluted						$	(5.33)					$	1.16					$	(4.22)					$	3.73
Weighted average common shares outstanding:
Basic						43,837						47,237						44,901						47,364
Diluted						43,837						47,388						44,901						47,536

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Exhibit 99.1

IPG PHOTONICS CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

 

						September 30,						December 31,
						2024						2023
						(In thousands, except share and  per share data)
ASSETS
Current assets:
Cash and cash equivalents						$	883,871					$	514,674
Short-term investments						135,444						662,807
Accounts receivable, net						163,541						219,053
Inventories						320,723						453,874
Prepaid income taxes						27,115						26,038
Prepaid expenses and other current assets						39,720						38,208
Total current assets						1,570,414						1,914,654
Deferred income taxes, net						106,254						88,788
Goodwill						38,484						38,540
Intangible assets, net						22,054						26,234
Property, plant and equipment, net						589,559						602,257
Other assets						28,365						28,425
Total assets						$	2,355,130					$	2,698,898
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable						$	39,578					$	28,618
Accrued expenses and other current liabilities						150,788						181,350
Income taxes payable						3,816						4,893
Total current liabilities						194,182						214,861
Other long-term liabilities and deferred income taxes						46,336						68,652
Total liabilities						240,518						283,513
Commitments and contingencies
IPG Photonics Corporation equity:
Common stock, $0.0001 par value, 175,000,000 shares authorized; 56,591,081 and 43,248,080 shares issued and outstanding, respectively, at September 30, 2024; 56,317,438 and 46,320,671 shares issued and outstanding, respectively, at December 31, 2023.						6						6
Treasury stock, at cost, 13,343,001 and 9,996,767 shares held at September 30, 2024 and December 31, 2023, respectively.						(1,447,984)						(1,161,505)
Additional paid-in capital						1,025,268						994,020
Retained earnings						2,606,053						2,795,394
Accumulated other comprehensive loss						(68,731)						(212,530)
Total IPG Photonics Corporation equity						2,114,612						2,415,385
Total liabilities and equity						$	2,355,130					$	2,698,898

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Exhibit 99.1

IPG PHOTONICS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

 

						Nine Months Ended September 30,
						2024						2023
						(In thousands)
Cash flows from operating activities:
Net (loss) income						$	(189,341)					$	177,450
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization						46,623						52,678
Impairment of long-lived assets and restructuring charges (recoveries), net						26,566						(486)
Provisions for inventory, warranty & bad debt						76,434						43,889
Net loss from divestiture and sale of assets						190,201						—
Other						(2,338)						5,238
Changes in assets and liabilities that provided (used) cash, net of acquisitions:
Accounts receivable and accounts payable						56,156						(35,257)
Inventories						29,760						(20,736)
Other						(59,949)						(32,852)
Net cash provided by operating activities						174,112						189,924
Cash flows from investing activities:
Purchases of and deposits on property, plant and equipment						(75,358)						(85,256)
Proceeds from sales of property, plant and equipment						28,538						30,425
Purchases of short-term investments						(423,176)						(898,455)
Proceeds from short-term investments						966,214						789,844
Net cash outflow from divestiture						(25,324)						—
Other						385						446
Net cash provided by (used in) investing activities						471,279						(162,996)
Cash flows from financing activities:
Principal payments on long-term borrowings						—						(16,031)
Proceeds from issuance of common stock under employee stock option and purchase plans less payments for taxes related to net share settlement of equity awards						1,870						(432)
Purchase of treasury stock, at cost						(286,479)						(159,528)
Net cash used in financing activities						(284,609)						(175,991)
Effect of changes in exchange rates on cash and cash equivalents						8,415						(20,862)
Net increase (decrease) in cash and cash equivalents						369,197						(169,925)
Cash and cash equivalents — Beginning of period						514,674						698,209
Cash and cash equivalents — End of period						$	883,871					$	528,284
Supplemental disclosures of cash flow information:
Cash paid for interest						$	95					$	1,110
Cash paid for income taxes						$	38,905					$	55,001

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Exhibit 99.1

IPG PHOTONICS CORPORATION

SUPPLEMENTAL SCHEDULE OF AMORTIZATION OF INTANGIBLE ASSETS (UNAUDITED)

 

						Three Months Ended September 30,												Nine Months Ended September 30,
						2024						2023						2024						2023
						(In thousands)
Amortization of intangible assets:
Cost of sales						$	441					$	564					$	1,369					$	1,692
Sales and marketing						937						1,456						2,811						4,370
Total amortization of intangible assets						$	1,378					$	2,020					$	4,180					$	6,062

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Exhibit 99.1

IPG PHOTONICS CORPORATION

SUPPLEMENTAL SCHEDULE OF STOCK-BASED COMPENSATION (UNAUDITED)

 

						Three Months Ended September 30,												Nine Months Ended September 30,
						2024						2023						2024						2023
						(In thousands)
Cost of sales						$	2,206					$	1,503					$	6,472					$	6,664
Sales and marketing						1,695						1,362						4,652						4,045
Research and development						2,966						2,330						8,048						6,171
General and administrative						4,261						2,949						10,258						10,582
Total stock-based compensation						11,128						8,144						29,430						27,462
Tax effect of stock-based compensation						(2,517)						(1,772)						(6,504)						(6,016)
Net stock-based compensation						$	8,611					$	6,372					$	22,926					$	21,446

						Three Months Ended September 30,												Nine Months Ended September 30,
						2024						2023						2024						2023
						(In thousands)
Excess tax (detriment) benefit on stock-based compensation						$	(220)					$	(55)					$	(4,113)					$	(1,741)

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Exhibit 99.1

IPG PHOTONICS CORPORATION

SUPPLEMENTAL SCHEDULE OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)

Use of Non-GAAP Adjusted Financial Information

The following information provides the definition of adjusted gross profit, adjusted gross margin, adjusted net income and adjusted earnings per share (EPS) as presented by IPG Photonics Corporation (the “Company”), which are financial measures that are not calculated or presented in accordance with GAAP, and reconciliation to the most directly comparable financial measures calculated and presented in accordance with GAAP. The Company has provided adjusted gross profit, adjusted gross margin, adjusted net income and adjusted EPS as supplemental information and in addition to the financial measures presented by the Company that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for or alternative to, and should be considered in conjunction with, the GAAP financial measure presented by the Company.

We define adjusted gross profit as gross profit as reported, adjusted for non-recurring, infrequent, or unusual changes, including a one-time inventory provision related to a change in estimate of recoverability due to the current demand environment.

We define adjusted gross margin as adjusted gross profit divided by total revenue.

We define adjusted net income as net income as reported, adjusted for non-recurring, infrequent, or unusual changes, including one-time charges incurred in connection with the disposition of our Russian operations, impairment of long-lived assets, loss on foreign currency exchange, tax impacts and a one-time adjustment to inventory provision related to a change in estimate of recoverability due to the current demand environment, and other adjustments that the Company believes appropriate.

We define adjusted EPS as adjusted net income divided by the weighted-average diluted shares outstanding.

Management believes that these non-GAAP financial measures provide additional means of evaluating period-over-period operating performance. Specifically, these non-GAAP financial measures provide management with additional means to understand and evaluate the operating results and trends in our ongoing business by eliminating certain non-cash expenses and other items that management believes might otherwise make comparisons of our ongoing business with prior periods more difficult, obscure trends in ongoing operations, or reduce management’s ability to make useful forecasts.

In addition, management understands that some investors and financial analysts find this information helpful in analyzing our financial and operational performance and comparing this performance to our peers and competitors. However, these non-GAAP financial measures have limitations as an analytical tool and are not intended to be an alternative to financial measures prepared in accordance with GAAP. In addition, it should be noted that these non-GAAP financial measures may be different from non-GAAP measures used by other companies. Management may, however, utilize other measures to illustrate performance in the future. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures. A reconciliation of our non-GAAP financial measures to their most directly comparable GAAP measures has been provided below. These non-GAAP measures exclude (a) a one-time adjustment to our inventory provision related to a change in estimate of recoverability due to the current demand environment, (b) one-time adjustments relating to the net loss from divestiture and sale of assets incurred in the disposition of our Russian operations in the third quarter of 2024and (c) impairment of long lived assets related to our Belarusian operations.

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Exhibit 99.1

IPG PHOTONICS CORPORATION

SUPPLEMENTAL SCHEDULE OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)

 

						Three Months Ended September 30,
						2024
(In thousands, except percentages)
Gross profit						$	54,089
Gross margin						23.2		%
Add: Inventory provision						29,884
Adjusted gross profit						$	83,973
Adjusted gross margin						36.0		%

						Three Months Ended September 30,
						2024
(In thousands, except per share data)						Before Tax						Tax Impact						After Tax						Per Diluted Share
Net (loss) income attributable to IPG Photonics Corporation and diluted EPS																		$	(233,594)					$	(5.33)
Adjustments to reconcile to adjusted net income:
Inventory provision						$	29,884					$	(8,407)					21,477						0.49
Long-lived asset impairment						26,566						—						26,566						0.61
Loss on divestiture						197,651						1,824						199,475						4.55
Loss on foreign exchange						1,148						(190)						958						0.02
Discrete tax impacts												(1,981)						(1,981)						(0.05)
Total adjustments						$	255,249					$	(8,754)					$	246,495					$	5.62
Adjusted net income and adjusted diluted EPS																		$	12,901					$	0.29

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Exhibit 99.2

 

IPG Photonics Announces Agreement to Acquire CleanLASER

Tuck-in acquisition expands IPG’s opportunity in laser cleaning applications

MARLBOROUGH, Mass. – October 29, 2024 - IPG Photonics Corporation (NASDAQ: IPGP) today announced that it has signed a definitive agreement to acquire Clean-Lasersysteme GmbH (cleanLASER), a leader in laser cleaning systems. The transaction strengthens IPG’s global position in high-precision laser systems for cleaning applications, an attractive growth market. Subject to satisfaction of customary closing conditions, including regulatory approval, the transaction is expected to close in the fourth quarter of 2024. The Company will provide more details on the transaction on its upcoming third-quarter earnings call, scheduled today for 10:00 a.m. ET.

“This transaction will advance IPG’s capabilities in bringing lasers to industrial cleaning applications, serving as a great example of how we are continuing to differentiate our product offerings through new laser use cases and complete solutions that drive laser adoption and keep us ahead of the competition,” said Dr. Mark Gitin IPG Photonics’ Chief Executive Officer. “As a supplier to cleanLASER for nearly 25 years, we know this company well and believe our combined cleaning application know-how, complementary market exposure, and product and technology synergies will create value for customers.”

Founded in 1997 and based in Herzogenrath, Germany, cleanLASER is a leader and pioneer in expanding the usage of lasers for industrial cleaning, with an installed base of approximately 2,000 systems worldwide and approximately $30 million in annual revenue. The company serves a broad range of customers across the automotive, industrial, aerospace, medical, food, and other markets. Laser cleaning systems have emerged as a precise, cost-effective, and environmentally friendly alternative to traditional industrial cleaning solutions, offering a highly energy-efficient process that requires no cleaning media and significantly reduces process waste.

Contact

Eugene Fedotoff

Senior Director, Investor Relations

IPG Photonics Corporation

508-597-4713

[e-mail]

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About IPG Photonics Corporation

IPG Photonics Corporation is the leader in high-power fiber lasers and amplifiers used primarily in materials processing and other diverse applications. The Company’s mission is to develop innovative laser solutions making the world a better place. IPG accomplishes this mission by delivering superior performance, reliability and usability at a lower total cost of ownership compared with other types of lasers and non-laser tools, allowing end users to increase productivity and decrease costs. IPG is headquartered in Marlborough, Massachusetts and has more than 30 facilities worldwide. For more information, visit www.ipgphotonics.com.

Safe Harbor Statement

Information and statements provided by IPG and its employees, including statements in this press release, that relate to future plans, events or performance are forward-looking statements. These statements involve risks and uncertainties. Any statements in this press release that are not statements of historical fact are forward-looking statements. These include but are not limited to the transaction strengthens IPG’s global position in high-precision laser systems for cleaning applications, an attractive growth market, the transaction is expected to close in the fourth quarter of 2024. As well as continuing to differentiate our product offerings through new laser use cases and complete solutions that drive laser adoption and keep us ahead of the competition, and combined cleaning application know-how, complementary market exposure, and product and technology synergies will create value for customers. Factors that could cause actual results to differ materially include risks and uncertainties, including risks associated with the strength or weakness of the business conditions in industries and geographic markets that IPG serves, particularly the effect of downturns in the markets IPG serves; uncertainties and adverse changes in the general economic conditions of markets; inability to manage risks associated with international customers and operations; changes in trade controls and trade policies; IPG's ability to penetrate new applications for fiber lasers and increase market share; the rate of acceptance and penetration of IPG's products; foreign currency fluctuations; high levels of fixed costs from IPG's vertical integration; the appropriateness of IPG's manufacturing capacity for the level of demand; competitive factors, including declining average selling prices; the effect of acquisitions and investments; inventory write-downs; asset impairment charges; intellectual property infringement claims and litigation; interruption in supply of key components; manufacturing risks; government regulations and trade sanctions; and other risks identified in IPG's SEC filings. Readers are encouraged to refer to the risk factors described in IPG's Annual Report on Form 10-K (filed with the SEC on February 21, 2024) and IPG's reports filed with the SEC, as applicable. Actual results, events and performance may differ materially. Readers are cautioned not to rely on the forward-looking statements, which speak only as of the date hereof. IPG undertakes no obligation to update the forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

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Document and Entity Information	Oct. 29, 2024
Cover [Abstract]
Amendment Flag	false
Entity Central Index Key	0001111928
Document Type	8-K
Document Period End Date	Oct. 29, 2024
Entity Registrant Name	IPG PHOTONICS CORP
Entity Incorporation, State or Country Code	DE
Entity File Number	001-33155
Entity Tax Identification Number	04-3444218
Entity Address, Address Line One	377 Simarano Drive
Entity Address, City or Town	Marlborough
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	01752
City Area Code	508
Local Phone Number	373-1100
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Trading Symbol	IPGP
Security Exchange Name	NASDAQ
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false

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