Mark Gitin Appointed Next Chief Executive Officer and to Board of Directors Co-Founder Dr. Eugene Scherbakov to Remain a Member of the Board MARLBOROUGH, Mass., April 30, 2024 (GLOBE NEWSWIRE) -- IPG Photonics Corporation (NASDAQ:IPGP) ("IPG" or the "Company") today announced that its Board of Directors (the "Board") has appointed Mark Gitin, 57, as the next Chief Executive Officer of the Company and as a member of the Board, effective June 5, 2024. Dr. Gitin's appointment follows a robust succession plann ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number: 001-33155 IPG PHOTONICS CORPORATION (Exact name of registrant as specified in its charter) Delaware 04-3444218 (Stat ...

IPG Photonics Corporation (NASDAQ:IPGP) Q4 2023 Earnings Conference Call February 13, 2024 10:00 AM ET Company Participants Eugene Fedotoff - Senior Director, IR Eugene Scherbakov - CEO & Director Timothy Mammen - SVP & CFO Conference Call Participants James Ricchiuti - Needham & Company Ruben Roy - Stifel Scott Graham - Seaport Research Partners Keith Housum - Northcoast Research Mark Miller - The Benchmark Company Operator Good morning, and welcome to IPG Photonics Fourth Quarter 2023 Conference Call. Tod ...

| --- | --- | --- | --- | --- | |-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | Earnings Call Presentation Fourth Quarter 2023 | | | | | | February 13, 2024 10:00 am ET | | | | | | | | | | | • • | By phone: 877-407-6184 in the US or 201-389-0877 internationally A live web ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number 001-33155 IPG PHOTONICS CORPORATION (Exact name of registrant as specified in its charter) | Indicate by che ...

IPG Photonics Corporation (NASDAQ:IPGP) Q3 2023 Earnings Conference Call October 31, 2023 10:00 AM ET Company Participants Eugene Fedotoff - Senior Director, IR Eugene Scherbakov - CEO & Director Timothy Mammen - SVP & CFO Conference Call Participants Ruben Roy - Stifel, Nicolaus & Company James Ricchiuti - Needham & Company Michael Feniger – Bank of America Merrill Lynch Mark Miller - The Benchmark Company Operator Good morning, and welcome to IPG Photonics Third Quarter 2023 Conference Call. Today's call ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) Commission File Number 001-33155 IPG PHOTONICS CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) Delaware 04-3444218 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUA ...

IPG Photonics Corporation (NASDAQ:IPGP) Q2 2023 Earnings Conference Call August 1, 2023 10:00 AM ET Company Participants Eugene Fedotoff - Senior Director, IR Eugene Scherbakov - CEO & Director Timothy Mammen - SVP & CFO Conference Call Participants Ruben Roy - Stifel, Nicolaus & Company James Ricchiuti - Needham & Company Michael Feniger - Bank of America Merrill Lynch Mark Miller - The Benchmark Company Operator Good morning, and welcome to IPG Photonics' Second Quarter 2023 Conference Call. Today's call ...

Revenue and Sales Performance - In Q1 2023, sales to third parties in Russia accounted for approximately 3% of total revenue, with product shipments to China valued at $4.6 million for the quarter and $62 million for the full year 2022[64]. - Net sales decreased by $22.8 million, or 6.2%, to $347.2 million for the three months ended March 31, 2023, compared to $370.0 million for the same period in 2022[86]. - Approximately 90% of revenues for both Q1 2023 and the full 2022 fiscal year were derived from customers using products for materials processing[70]. - Sales by application showed a decline in materials processing, with high power CW lasers decreasing by $13.7 million, or 8.1%, and medium power CW lasers down by 41.5%[86][88]. Financial Performance and Margins - Gross margin decreased to 42.3% for the three months ended March 31, 2023, down from 46.4% in the same period of 2022, primarily due to increased costs of products sold and manufacturing[90]. - The total gross margin is influenced by factors such as net sales, production volumes, and changes in foreign exchange rates, with ongoing efforts to maintain industry-leading gross margins[76]. - Net income attributable to IPG Photonics Corporation decreased by $9.5 million to $60.1 million for the three months ended March 31, 2023, representing 17.3% of net sales[99]. Research and Development - The company plans to continue investing in research and development to enhance existing products and develop new technologies, with R&D expenses expected to vary by period[81]. - Research and development expenses decreased by $10.7 million, or 31.9%, to $22.8 million for the three months ended March 31, 2023, compared to $33.5 million for the same period in 2022[92]. Inventory and Impairment - The company recorded provisions for slow-moving, obsolete, or excess inventory totaling $12.1 million for Q1 2023, compared to $10.8 million for the same period in 2022[79]. - The company incurred impairment charges of $125.9 million due to the cumulative translation effect of the Russian ruble against the U.S. dollar, impacting the net asset value of long-lived assets in Russia[65]. - The company is evaluating certain U.S.-based assets for potential sale, which may lead to impairment charges if the estimated sales value is below carrying value[82]. Cash Flow and Capital Expenditures - Cash provided by operating activities increased by $20.9 million to $37.3 million for the three months ended March 31, 2023, compared to $16.4 million for the same period in 2022[108]. - Net cash used in investing activities was $96.0 million for the three months ended March 31, 2023, compared to cash provided of $2.5 million in 2022, primarily due to $64.3 million in net purchases of short-term investments and $33.4 million for capital expenditures[108]. - Net cash used in financing activities was $117.2 million for the three months ended March 31, 2023, compared to $80.4 million in 2022, mainly due to the purchase of treasury stock amounting to $113.1 million[110]. - The company expects to invest approximately $140 million to $160 million in capital expenditures in 2023, excluding acquisitions, to support anticipated revenue growth and enhance research and development capabilities[109]. Foreign Exchange and Financial Position - The company experienced a foreign exchange transaction gain of $2.7 million for the three months ended March 31, 2023, compared to a gain of $5.8 million for the same period in 2022[96]. - A 5% change in the exchange rate of the U.S. dollar to the euro could result in a foreign exchange gain of $1.5 million or a loss of $1.6 million, depending on the dollar's appreciation or depreciation[118]. - The company has no foreign currency derivative instruments as of March 31, 2023, but may engage in financial hedging techniques in the future to minimize currency exchange rate fluctuations[121]. Compliance and Credit Facilities - The company was in compliance with all financial covenants as of March 31, 2023, including an interest coverage ratio of at least 3.0:1.0 and a funded debt to EBITDA ratio of less than three times trailing twelve months EBITDA[104]. - The largest committed credit lines are with Bank of America N.A. and Deutsche Bank AG, amounting to $75.0 million and €50.0 million ($54.4 million), respectively[103]. - At March 31, 2023, there were no amounts drawn on the U.S. revolving line of credit, but $2.5 million of guarantees issued against the line reduced total availability[103]. Operational Adjustments - The company is expanding manufacturing capacity in Italy and Poland to reduce reliance on operations in Russia and Belarus, which have been affected by sanctions[62]. - Supply chain constraints have moderately increased freight costs and led to higher levels of safety stock, although they have not significantly impacted overall business operations[68]. - Major customers accounted for 19% of net sales for the three months ended March 31, 2023, with one customer representing 16% of net accounts receivable[85].

Financial Data and Key Metrics Changes - Revenue in the first quarter was $347 million, a decline of 6% year-over-year due to foreign currency headwinds and telecom divestiture [65] - GAAP gross margin was 42.3%, a decrease of 410 basis points year-over-year due to increased manufacturing costs and higher shipping costs [28] - GAAP operating income was $75 million with an operating margin of 21.7% [37] Business Line Data and Key Metrics Changes - Emerging growth product sales accounted for 45% of total sales, driven by investments in e-mobility and renewable energy [2] - System sales increased 20% year-over-year, while medium power laser sales decreased 42% [38] - The medical business grew year-over-year, but is expected to soften in the second quarter due to inventory adjustments by a large customer [26] Market Data and Key Metrics Changes - Revenue in China decreased 22% year-over-year, impacted by softness in the cutting market [15] - North America saw a 1% revenue decrease, while Europe experienced a 7% decline due to difficult comparisons [67] - Strong demand for e-mobility applications was noted in North America, Europe, Japan, and Korea [62] Company Strategy and Development Direction - The company is focusing on diversifying revenue and reducing exposure to cyclical markets, with significant investments in R&D for emerging products [32] - IPG is expanding its global sales force focused on e-mobility applications and exploring opportunities in electrical motor assembly [14] - A new $200 million share repurchase program was announced to enhance shareholder value [40] Management's Comments on Operating Environment and Future Outlook - Management noted that despite macroeconomic uncertainty, there are growth opportunities in electric vehicle battery manufacturing and renewable energy [9] - The company expects the EV investment cycle to continue, with strong e-mobility sales anticipated over the next three to five years [34] - Demand in China remains muted, but there are signs of stability and potential improvement in the second half of the year [45] Other Important Information - The company reported a cash balance of $1.1 billion and total debt of $16 million [39] - FX impacts were noted, with potential revenue being $15 million higher if exchange rates had remained the same as the previous year [37] - The company is committed to increasing gender diversity and minority representation in its workforce [35] Q&A Session Summary Question: Can you expand on the demand in China? - Management indicated that demand remains relatively muted, with some applications at trough levels, but there is potential for improvement in the second half of the year [72] Question: What is the outlook for the automotive market excluding EV? - Management highlighted that while EV batteries are a priority, stationary battery storage is also important, especially in Europe [84] Question: What is the status of production migration from Russia? - Management confirmed that production is being expanded in Germany and new manufacturing is being established in Poland and Italy to reduce reliance on Russian production [54]