Revenues grew 7% to $370 million; materials processing makes up 92% of that total and grew 7% as a subset.
Sales in Other Applications rose 9% amid some strength in medical, partly offset by lower sales in advanced applications and telecom. Emerging growth products sales made up 36% of total revenue.
In its main materials processing business, higher sales in welding, marking, systems, cleaning and 3D printing were partly offset by lower revenue in cutting and solar cell manufacturing.
“We are pleased to report another solid quarter with growth driven by higher demand across many diverse applications in Europe, North America and Japan,” says CEO Dr. Eugene Scherbakov. “Increased laser welding adoption, primarily in electric vehicle manufacturing, drove record welding revenue for IPG this quarter.”
EPS meanwhile rose 4% to $1.31, an easy beat of forecasts.
Cash from operations was $16 million, while capital expenditures came to $25 million.
The company’s working to diversify its revenues both geographically and in applications, Scherbakov says: China’s share of revenue dropped to 35% this quarter, and the company has cut its reliance on Russian manufacturing and stopped new investment there while boosting capacity in North America and Western Europe.
By region, sales rose 27% in Europe, 5% in North America, and 18% in Japan, and fell 7% in China.
Raymond James had recently downgraded IPG Photonics stock to Underperform, citing downside from cost exposure to Russia.