IPG Photonics (IPGP) reported first-quarter 2024 earnings of 52 cents per share, beating the Zacks Consensus Estimate by 8.33%. The company reported earnings of $1.26 per share in the year-ago quarter.Revenues of $252 million decreased 27.4% on a year-over-year basis but beat the consensus mark by 0.67%. Unfavorable forex hurt revenue growth by 2%.Emerging growth product sales accounted for 45% of revenues and suffered from lower demand in emobility and solar cell manufacturing applications. Lower sales in ...

Exhibit 99.1 IPG PHOTONICS ANNOUNCES FIRST QUARTER 2024 FINANCIAL RESULTS Delayed E-mobility Investments and Soft Industrial Demand Negatively Impacted Results Strong Operating Cash Flow Benefited from Working Capital Management MARLBOROUGH, Mass. – April 30, 2024 - IPG Photonics Corporation (NASDAQ: IPGP) today reported financial results for the first quarter ended March 31, 2024. | | | | Three Months Ended March 31, | | | | --- | --- | --- | --- | --- | --- | | (In millions, except per share data and perc ...

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 ...

Financial Data and Key Metrics Changes - Revenue in Q4 2023 was $299 million, down 10% year-over-year, but at the top of the guidance range [84] - GAAP gross margin was 38.2%, an increase from the previous year due to a significant decrease in inventory provision and other charges related to Russian operations [85] - Operating income was $29 million with an operating margin of 9.6%, and net income was $41 million or $0.89 per diluted share [88] Business Line Data and Key Metrics Changes - Revenue from materials processing applications decreased 12% year-over-year, while revenue in other applications increased 4%, driven by strength in medical [84] - Sales of high-power CW lasers decreased 19% due to lower demand in cutting applications, while medium power laser sales increased 5% [89] - Sales of hand-held laser welders increased by 50% in 2023, indicating strong growth in this segment [73] Market Data and Key Metrics Changes - Revenue in North America decreased 3%, while sales in Europe increased 1% despite economic slowdowns [91] - Revenue in China decreased 25% year-over-year, representing the lowest level in the last 10 years, primarily due to lower demand in general industrial markets [92] - EV sales accounted for over 20% of total revenue, with modest growth expected in this segment [78] Company Strategy and Development Direction - The company is focused on displacing legacy technology with efficient fiber lasers and expanding into new markets and applications [3] - There is a strategic emphasis on developing integrated solutions for customers rather than just components, particularly in welding applications [11] - The company plans to invest in additional manufacturing capacity in Germany, the US, and other locations, with CapEx expected to be in the range of $120 million to $130 million for 2024 [54] Management's Comments on Operating Environment and Future Outlook - Management expects a challenging first half of 2024 but is targeting moderate growth in the second half of the year [8] - There is optimism regarding the recovery of demand in the EV market, particularly in the second half of 2024 [60] - The company anticipates that inventory management will continue to impact margins in the short term but will benefit cash generation [94] Other Important Information - The company repurchased shares totaling $64 million in Q4 2023 and $223 million for the full year, with an additional $300 million approved for future repurchases [95] - The effective tax rate for the quarter was 2%, benefiting from certain discrete items [88] Q&A Session Summary Question: What was the pricing for the quarter? - Pricing has been stable for the last 18 months, with no significant changes in Q4 [21] Question: What impact did production shutdowns have on gross margin? - Production shutdowns reduced gross margin by approximately 400 basis points in Q4 compared to Q3 [23] Question: What is the outlook for the EV market? - The EV market is expected to improve in the second half of the year, with a significant proportion of total vehicle sales in China being EVs [30] Question: How is the company managing inventory levels? - The company is working closely with cutting OEM customers to manage inventory levels, expecting some recovery in the second half of the year [101]

| --- | --- | --- | --- | --- | |-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | 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 ...

[Part I. Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) [Unaudited Interim Financial Statements](index=3&type=section&id=Item%201.%20Unaudited%20Interim%20Financial%20Statements) This section presents IPG Photonics Corporation's unaudited condensed consolidated financial statements for Q3 and nine months ended September 30, 2023 [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets slightly decreased to **$2.67 billion** while total liabilities significantly reduced to **$288.9 million** as of September 30, 2023 Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | September 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total current assets** | $1,920,460 | $1,986,274 | | Cash and cash equivalents | $528,284 | $698,209 | | Short-term investments | $605,207 | $479,374 | | Inventories | $479,829 | $509,363 | | **Total assets** | **$2,672,864** | **$2,743,280** | | **Total current liabilities** | $219,709 | $274,646 | | **Total liabilities** | **$288,913** | **$357,920** | | **Total equity** | **$2,383,951** | **$2,385,360** | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Net sales and net income declined for both Q3 and the nine-month period ended September 30, 2023, compared to prior year Income Statement Summary (in thousands, except per share data) | Metric | Q3 2023 | Q3 2022 | Nine Months 2023 | Nine Months 2022 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $301,401 | $349,006 | $988,546 | $1,096,008 | | Gross profit | $132,902 | $150,424 | $427,531 | $494,589 | | Operating income | $55,706 | $93,162 | $203,195 | $257,980 | | Net income attributable to IPG | $54,994 | $76,264 | $177,450 | $202,804 | | Diluted EPS | $1.16 | $1.47 | $3.73 | $3.93 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow increased, while investing activities shifted to a significant cash outflow due to short-term investment purchases Cash Flow Summary (Nine Months Ended, in thousands) | Activity | September 30, 2023 | September 30, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $189,924 | $171,026 | | Net cash (used in) provided by investing activities | $(162,996) | $407,465 | | Net cash used in financing activities | $(175,991) | $(400,861) | | **Net (decrease) increase in cash** | **$(169,925)** | **$160,169** | | **Cash and cash equivalents - End of period** | **$528,284** | **$869,274** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes cover accounting policies, revenue disaggregation, inventory, Russian subsidiary restructuring, and share repurchase programs Revenue by Geography (Nine Months Ended, in thousands) | Region | 2023 | 2022 | | :--- | :--- | :--- | | North America | $225,649 | $247,495 | | Europe | $297,449 | $298,570 | | China | $284,262 | $385,080 | | Japan | $54,196 | $38,847 | | Other Asia | $111,457 | $111,500 | | Rest of World | $15,533 | $14,516 | | **Total** | **$988,546** | **$1,096,008** | Revenue by Product (Nine Months Ended, in thousands) | Product | 2023 | 2022 | | :--- | :--- | :--- | | High Power CW Lasers | $419,538 | $483,455 | | Pulsed Lasers | $150,569 | $192,000 | | Laser and Non-Laser Systems | $117,064 | $108,970 | | Other Revenue | $208,251 | $210,141 | | **Total** | **$988,546** | **$1,096,008** | - The company substantially completed its restructuring program in Russia during Q3 2023, resulting in a net recovery of **$1.5 million** for the quarter[36](index=36&type=chunk) - During the nine months ended September 30, 2023, the company repurchased **1,448,457 shares** of common stock at a weighted average price of **$109.21 per share**[51](index=51&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 2023 revenue decline due to softer demand, ongoing operational impacts, and strong liquidity despite capacity expansion costs [Factors and Trends That Affect Our Operations and Financial Results](index=18&type=section&id=Factors%20and%20Trends%20That%20Affect%20Our%20Operations%20and%20Financial%20Results) Operational results are impacted by the Russia-Ukraine conflict, supply chain issues, cyclical demand, interest rates, and foreign exchange fluctuations - The Russia-Ukraine conflict has significantly curtailed Russian manufacturing, leading to capacity expansion elsewhere and higher operating costs impacting gross margins[57](index=57&type=chunk)[58](index=58&type=chunk) - As of September 30, 2023, the Russian subsidiary's net asset value was **$87.9 million**, including **$63.7 million** in cash, with long-lived assets in Belarus at **$31.3 million**[62](index=62&type=chunk)[63](index=63&type=chunk) - Approximately **90%** of revenue is derived from materials processing applications, making the business susceptible to cyclical capital equipment spending trends[67](index=67&type=chunk) - Foreign exchange fluctuations, particularly from the euro, Russian ruble, and Chinese yuan, significantly impact sales, costs, and earnings[81](index=81&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) Q3 2023 net sales declined **13.6%** to **$301.4 million** due to materials processing weakness, while nine-month sales decreased **9.8%** Q3 2023 vs Q3 2022 Performance (in thousands) | Metric | Q3 2023 | Q3 2022 | Change (%) | | :--- | :--- | :--- | :--- | | Net Sales | $301.4 | $349.0 | (13.6)% | | Gross Profit | $132.9 | $150.4 | (11.6)% | | Gross Margin | 44.1% | 43.1% | +1.0 ppt | | Operating Income | $55.7 | $93.2 | (40.2)% | | Net Income | $55.0 | $76.3 | (27.9)% | - The decrease in Q3 materials processing sales was primarily due to lower sales of high power CW lasers for cutting and welding, especially in China and Europe, and decreased pulsed laser sales for solar cell manufacturing[86](index=86&type=chunk)[96](index=96&type=chunk) Nine Months 2023 vs 2022 Performance (in thousands) | Metric | Nine Months 2023 | Nine Months 2022 | Change (%) | | :--- | :--- | :--- | :--- | | Net Sales | $988.5 | $1,096.0 | (9.8)% | | Gross Profit | $427.5 | $494.6 | (13.6)% | | Gross Margin | 43.2% | 45.1% | (1.9) ppt | | Operating Income | $203.2 | $258.0 | (21.2)% | | Net Income | $177.5 | $202.8 | (12.5)% | [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with over **$1.1 billion** in cash and investments, supporting capacity expansion Principal Sources of Liquidity (in thousands) | Source | September 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $528,284 | $698,209 | | Short-term investments | $605,207 | $479,374 | | Unused credit lines | $74,112 | $125,965 | - Cash and cash equivalents include **$63.7 million** in Russia and **$5.1 million** in Belarus, with Russian cash subject to capital controls but usable locally[116](index=116&type=chunk) - Expected capital expenditures for 2023 are approximately **$100 million to $110 million**, focused on global capacity expansion and vertical integration[123](index=123&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks primarily from foreign exchange rate fluctuations and, to a lesser extent, interest rate changes - The company's primary market risks are interest rate fluctuations on its cash and investment portfolio and foreign exchange rate changes[129](index=129&type=chunk) - A significant portion of net sales, cost of sales, and operating expenses are denominated in foreign currencies, principally the euro, Russian ruble, and Chinese yuan[132](index=132&type=chunk) - A hypothetical **5%** change in USD/EUR, USD/RUB, and USD/CNY exchange rates would result in foreign exchange gains/losses of approximately **$1.4-$1.5 million**, **$0.2 million**, and **$1.1 million**, respectively[132](index=132&type=chunk)[133](index=133&type=chunk) [Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period[136](index=136&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter[137](index=137&type=chunk) [Part II. Other Information](index=32&type=section&id=Part%20II.%20Other%20Information) [Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no ongoing legal proceedings expected to materially affect its financial statements - As of the filing date, the company reports no ongoing legal proceedings estimated to have a material effect on its financial statements[47](index=47&type=chunk)[139](index=139&type=chunk) [Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) This section refers to previously disclosed risk factors in the 2022 Form 10-K and Q1 2023 Form 10-Q, with no material changes - The report directs readers to the risk factors detailed in the 2022 Form 10-K and the Q1 2023 Form 10-Q for a comprehensive understanding of potential risks[140](index=140&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **449,688 shares** in Q3 2023, with **$154.0 million** remaining under the May 2023 authorization Issuer Purchases of Equity Securities (Q3 2023) | Period | Total Shares Purchased | Average Price Paid | Publicly Announced Program Shares | Approx. Dollar Value Remaining ($ thousands) | | :--- | :--- | :--- | :--- | :--- | | July 2023 | — | $— | — | $200,000 | | August 2023 | 210,173 | $104.07 | 209,754 | $178,173 | | September 2023 | 240,377 | $100.90 | 239,934 | $153,966 | | **Total** | **450,550** | **$102.38** | **449,688** | **$153,966** | - The share repurchases were made under the May 2023 authorization of up to **$200 million**[143](index=143&type=chunk)[142](index=142&type=chunk)

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 ...

Financial Data and Key Metrics Changes - Revenue in Q2 2023 was $340 million, a decline of 10% year-over-year, impacted by foreign currency headwinds and telecom divestiture [10][19] - GAAP operating income was $72 million, with an operating margin of 21.2% [19] - Net income was $62 million, or $1.31 per diluted share, with an effective tax rate of 24% [19] Business Line Data and Key Metrics Changes - Emerging Growth products accounted for 41% of total sales, with growth in AMB lasers, LightWELD, green and ultrafast lasers, while sales declined in medical and advanced applications [7] - Sales of high-power CW lasers decreased 10%, representing approximately 43% of total revenue, with ultra high-power lasers above 6-kilowatt making up 50% of high-power CW laser sales [43] - Medium power laser sales increased 18%, driven by demand in welding and 3D printing applications [43] Market Data and Key Metrics Changes - Revenue in North America decreased by 11%, while Europe saw a 4% increase driven by welding and cleaning applications [20] - Revenue in China decreased by 28% year-over-year, with demand declining across most markets except for cleaning and 3D printing [20] Company Strategy and Development Direction - The company is focusing on diversifying revenue and reducing exposure to low-margin, highly competitive businesses, particularly in e-mobility and renewable energy sectors [15] - The strategy includes increasing production capacity in Poland and the U.S. to optimize costs and improve gross margins [51] Management's Comments on Operating Environment and Future Outlook - Management noted uncertain macroeconomic conditions and soft orders in major manufacturing regions, but expects recovery in medical application sales in Q3 [12][39] - The e-mobility sector remains strong, with solid activity in orders expected for the third quarter [12][16] Other Important Information - The company ended the quarter with cash and short-term investments of $1.1 billion and repaid $16 million of debt [44] - A new $200 million share repurchase authorization was announced, with plans to repurchase shares opportunistically [44] Q&A Session Summary Question: Can you provide more granularity on bookings trends and consumer electronics market? - Management indicated that bookings were softer across major industrial geographies, with positive order flow from Japan and South Korea, while consumer electronics showed no significant traction [29][48] Question: How are you thinking about gross margins and production footprint? - Management expressed confidence in improving gross margins in the long term, despite lower revenue levels in Q3 impacting absorption of manufacturing costs [47] Question: What is the outlook for EV-related business outside of China? - Demand for EV-related business outside of China remains robust, with strong performance noted in North America and Europe [48]

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].