FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Commission File Number 001-33155 IPG PHOTONICS CORPORATION (Exact name of registrant as specified in its charter) Delaware 04-3444218 (State or ot ...

Financial Data and Key Metrics Changes - Revenue in Q1 2020 declined 21% year-over-year to $249 million, with revenue from materials processing applications decreasing 28% year-over-year [38] - GAAP gross margin was 41%, a decline of 600 basis points year-over-year, primarily due to less favorable absorption of manufacturing expenses and higher inventory reserves [41] - Q1 net income was $36 million or $0.68 per diluted share, with foreign exchange gains increasing EPS by $0.28 [43] Business Line Data and Key Metrics Changes - Sales of high power continuous wave (CW) lasers decreased 33% year-over-year, representing approximately 48% of total revenue [38] - Sales of medical lasers reached a record $10 million in Q1, increasing more than 500% year-over-year [21] - Emerging product and application sales accounted for 23% of total revenue, increasing more than 20% year-over-year despite a softer demand environment [20] Market Data and Key Metrics Changes - Revenue in China decreased 40% year-over-year, representing approximately 28% of total sales, but showed a strong recovery in orders during late March and April [34] - Revenue in Europe decreased 15% year-over-year, while revenue in North America increased 4% year-over-year, driven by strong growth in medical lasers and advanced applications [35] - Sales in Japan decreased 12% year-over-year, and sales in Korea decreased 26% year-over-year due to COVID-19 impacts [36] Company Strategy and Development Direction - The company plans to continue investing in strategic resources and capital projects to capture market share in fiber laser technology, particularly in automated precision manufacturing [16] - IPG aims to leverage its vertical integration production model to maintain critical advantages during supply chain disruptions [29] - The company is focusing on transformative new products, including mid-infrared lasers and ultra-high power single mode lasers for aerospace and defense [23] Management's Comments on Operating Environment and Future Outlook - Management expressed uncertainty regarding global demand recovery due to the COVID-19 pandemic, but noted a strong balance sheet and cash reserves to navigate disruptions [15] - The company expects to benefit from a recovery in the industrial cycle, particularly in laser welding and electric vehicle battery processing [49] - Management highlighted the importance of product innovation and the introduction of new products to drive future growth [24] Other Important Information - The company ended the quarter with cash, cash equivalents, and short-term investments of $1.2 billion and total debt of $41 million [44] - The board of directors authorized the purchase of up to $200 million of common stock in open market transactions [46] - The first quarter book-to-bill ratio was greater than 1, indicating solid bookings growth despite a weaker revenue quarter in China [47] Q&A Session Summary Question: Can you comment on pricing in the China market? - Management noted that pricing in China has stabilized, with expectations of doubling the business in mid-power lasers compared to 2019 [55][56] Question: What was the actual impact of COVID-19 on Q1? - The actual impact was slightly below the expected $45 million, with a strong rebound in demand in China during March [62][63] Question: Is the demand recovery in China sustainable? - Management indicated that the recovery appears to be more of a V-shaped recovery, but there is uncertainty about sustainability [70][71] Question: How is the systems business performing? - Demand for medical device manufacturing systems has held up well, but there is weakness in smaller compact cutting systems due to delayed investment decisions [73][74] Question: What are the long-term margin targets? - Management is still targeting a return to the 45% to 50% margin range as revenue levels recover [83] Question: How is the supply chain being impacted? - The company has not faced significant problems with component supply, maintaining sufficient stock for continuous operations [124][125]

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, 2019 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 ...

IPG Photonics Corporation (NASDAQ:IPGP) Q4 2019 Earnings Conference Call February 13, 2020 10:00 AM ET Company Participants James Hillier - Vice President of Investor Relations Valentin Gapontsev - Chairman and Chief Executive Officer Eugene Scherbakov - Managing Director and Chief Operating Officer Timothy Mammen - Senior Vice President and Chief Financial Officer Conference Call Participants John Marchetti - Stifel Nicolaus Tom Diffely - D.A. Davidson Companies James Ricchiuti - Needham & Company Michael ...

© 2019 IPG Photonics Investor Presentation Safe Harbor Statement Statements in this presentation that relate to future plans, market forecasts, events or performance are forward-looking statements. These statements involve 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 con ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 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 (State o ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 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 (State or other ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-33155 IPG PHOTONICS CORPORATION (Exact name of registrant as specified in its charter) Delaware 04-3444218 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) 50 Old Webster Road, Oxford, Massachusetts 01540 (Address of principal executive of ...

OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-33155 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Form 10-K (Mark One) þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 IPG PHOTONICS CORPORATION (Exact name of registrant as specified in its charter) Delaware 04-3444218 (State or other jurisdiction of incorporati ...