IPG Photonics (IPGP) Q4 FY2023 earnings: revenue $299 million, down 10.4% on the year

IPG Photonics Corp. (IPGP) reported revenue of $299 million for Q4 FY2023, the quarter ended 31 December 2023, down 10.4% on the same quarter a year earlier. Net income was $41 million, and diluted earnings per share $0.89. The figures are the company's own, from the 10-K it filed with the SEC on 21 February 2024.

Revenue$299 milliondown 10.4%

Net income$41 million

Diluted EPS$0.89

QuarterQ4 FY2023ended 31 December 2023

The quarter, against the one before and a year earlier

Line	Q4 FY2023	Q3 FY2023	A year earlier	Change on the year
Revenue	299	301	n/a	n/a
Cost of revenue	185	168	n/a	n/a
Gross profit	114	133	n/a	n/a
Gross margin	38.2%	44.1%	n/a
Research and development	27.7	24.7	n/a	n/a
Operating income	28.8	55.7	n/a	n/a
Operating margin	9.6%	18.5%	n/a
Pre-tax income	42.2	67.8	n/a	n/a
Income tax	0.7	12.8	n/a	n/a
Effective tax rate	1.7%	18.9%	n/a
Net income	41.4	55.0	n/a	n/a
Net margin	13.9%	18.2%	n/a
Diluted EPS	$0.89	$1.16	n/a	n/a

$ million except per share.

Fourth quarters are the year less the first three quarters. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q4 FY2023	Q3 FY2023	A year earlier	Change on the year
Operating cash flow	106	86.0	n/a	n/a
Capital expenditure	25.2	26.1	n/a	n/a
Free cash flow	80.8	59.9	n/a	n/a
Free cash flow margin	27.0%	19.9%	n/a
Cash from investing	-74.6	-72.5	n/a	n/a
Cash from financing	-60.4	-46.2	n/a	n/a
Depreciation and amortisation	16.9	17.3	n/a	n/a
Share-based compensation	12.1	8.1	n/a	n/a
Buybacks	64.0	46.5	n/a	n/a
Diluted shares, weighted	47m	47m	n/a	n/a
Shares outstanding at period end	46m	47m	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q4 FY2023	Q3 FY2023	A year earlier	Change on the year
Shareholders' equity	2,415	2,384	n/a	n/a
Debt	0.0	n/a	n/a	n/a
Operating lease liabilities	13.7	13.2	n/a	n/a
Other liabilities	270	276	n/a	n/a
Total liabilities and equity	2,699	2,673	n/a	n/a
Fixed assets	602	582	n/a	n/a
Goodwill	38.5	38.3	n/a	n/a
Intangible assets	26.2	28.1	n/a	n/a
Investments	663	605	n/a	n/a
Cash and equivalents	515	528	n/a	n/a
Receivables	219	230	n/a	n/a
Inventory	454	480	n/a	n/a
Other assets	181	182	n/a	n/a
Total assets	2,699	2,673	n/a	n/a

Quarterly results, the last 12 quarters

	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026
Revenue	301	299	252	258	233	234	228	251	251	274	265	279
Cost of revenue	168	185	154	161	179	144	138	157	152	175	166	166
Gross profit	133	114	97.5	96.2	54.1	90.3	89.8	93.6	99.0	99.1	99.5	113
Gross margin	44%	38%	39%	37%	23%	39%	39%	37%	39%	36%	37%	40%
R&D	24.7	27.7	29.4	27.5	27.2	25.7	28.3	29.9	30.4	28.8	33.3	31.0
Operating income	55.7	28.8	19.1	12.0	-253	14.0	1.8	0.1	7.9	3.3	-7.7	4.5
Operating margin	18%	10%	8%	5%	-109%	6%	1%	0%	3%	1%	-3%	2%
Pre-tax income	67.8	42.2	33.6	25.0	-243	22.0	10.6	8.3	15.7	10.6	1.0	12.5
Tax rate	19%	2%	28%	19%	n/a	64%	65%	20%	52%	-26%	-55%	58%
Net income	55.0	41.4	24.1	20.2	-234	7.8	3.8	6.6	7.5	13.3	1.6	5.2
Net margin	18%	14%	10%	8%	-100%	3%	2%	3%	3%	5%	1%	2%
Diluted EPS	$1.16	$0.89	$0.52	$0.45	-$5.33	$0.18	$0.09	$0.16	$0.18	$0.31	$0.04	$0.12
Operating cash flow	86.0	106	54.6	53.5	66.1	73.8	13.4	-2.2	35.3	28.8	-5.5	37.8
Capital expenditure	26.1	25.2	28.1	24.2	23.1	23.2	24.8	15.4	20.7	17.9	16.3	20.7
Free cash flow	59.9	80.8	26.5	29.2	43.0	50.6	-11.4	-17.6	14.6	10.9	-21.8	17.1
Buybacks	46.5	64.0	89.6	122	74.5	57.3	n/a	n/a	n/a	n/a	0.0	0.0
Shares outstanding	47m	46m	46m	44m	43m	43m	43m	42m	42m	42m	42m	43m
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS and diluted share count are from the company's results press release for that quarter, used where the release gives the same revenue and net income as the table. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-K for the period ended 31 December 2023, filed 21 February 2024, accession 0001111928-24-000019: the filing on EDGAR. All of IPG Photonics Corp.'s filings: EDGAR company page.

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