ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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 offices) | (Zip code) |
Large Accelerated Filer | ý | Accelerated Filer | ¨ | |
Non-Accelerated Filer | ¨ | Smaller Reporting Company | ¨ |
Page | |
EX-31.1 CERTIFICATION OF CEO PURSUANT TO RULE 13a-14(a) | |
EX-31.2 CERTIFICATION OF CFO PURSUANT TO RULE 13a-14(a) | |
EX-32 CERTIFICATION OF CEO AND CFO PURSUANT TO SECTION 1350 | |
EX-101.INS XBRL INSTANCE DOCUMENT | |
EX-101.SCH XBRL TAXONOMY EXTENSION SCHEMA | |
EX-101.CAL XBRL TAXONOMY EXTENSION CALCULATION LINKBASE | |
EX-101.LAB XBRL TAXONOMY EXTENSION LABEL LINKBASE | |
EX-101.PRE XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE | |
EX-101.DEF XBRL TAXONOMY EXTENSION DEFINITION LINKBASE |
June 30, | December 31, | ||||||
2015 | 2014 | ||||||
(In thousands, except share and per share data) | |||||||
ASSETS | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | 571,508 | $ | 522,150 | |||
Accounts receivable, net | 169,828 | 143,109 | |||||
Inventories | 190,848 | 171,009 | |||||
Prepaid income taxes | 27,822 | 20,967 | |||||
Prepaid expenses and other current assets | 24,241 | 21,295 | |||||
Deferred income taxes, net | 18,123 | 15,308 | |||||
Total current assets | 1,002,370 | 893,838 | |||||
DEFERRED INCOME TAXES, NET | 7,495 | 5,438 | |||||
GOODWILL | 516 | 455 | |||||
INTANGIBLE ASSETS, NET | 14,013 | 9,227 | |||||
PROPERTY, PLANT AND EQUIPMENT, NET | 288,553 | 275,082 | |||||
OTHER ASSETS | 21,594 | 26,847 | |||||
TOTAL | $ | 1,334,541 | $ | 1,210,887 | |||
LIABILITIES AND EQUITY | |||||||
CURRENT LIABILITIES: | |||||||
Revolving line-of-credit facilities | $ | 1,600 | $ | 2,631 | |||
Current portion of long-term debt | 2,000 | 13,333 | |||||
Accounts payable | 21,537 | 17,141 | |||||
Accrued expenses and other liabilities | 68,274 | 64,057 | |||||
Deferred income taxes, net | 3,670 | 3,241 | |||||
Income taxes payable | 28,690 | 21,672 | |||||
Total current liabilities | 125,771 | 122,075 | |||||
DEFERRED INCOME TAXES AND OTHER LONG-TERM LIABILITIES | 26,348 | 22,584 | |||||
LONG-TERM DEBT, NET OF CURRENT PORTION | 18,667 | 19,667 | |||||
Total liabilities | 170,786 | 164,326 | |||||
COMMITMENTS AND CONTINGENCIES (NOTE 12) | |||||||
IPG PHOTONICS CORPORATION STOCKHOLDERS' EQUITY: | |||||||
Common stock, $0.0001 par value, 175,000,000 shares authorized; 52,721,014 shares issued and outstanding at June 30, 2015; 52,369,688 shares issued and outstanding at December 31, 2014 | 5 | 5 | |||||
Additional paid-in capital | 591,718 | 567,617 | |||||
Retained earnings | 709,860 | 591,202 | |||||
Accumulated other comprehensive loss | (139,262 | ) | (112,263 | ) | |||
Total IPG Photonics Corporation stockholders' equity | 1,162,321 | 1,046,561 | |||||
NONCONTROLLING INTERESTS | 1,434 | — | |||||
Total equity | 1,163,755 | 1,046,561 | |||||
TOTAL | $ | 1,334,541 | $ | 1,210,887 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(in thousands, except per share data) | |||||||||||||||
NET SALES | $ | 235,138 | $ | 192,204 | $ | 434,098 | $ | 362,779 | |||||||
COST OF SALES | 106,435 | 87,977 | 197,568 | 169,268 | |||||||||||
GROSS PROFIT | 128,703 | 104,227 | 236,530 | 193,511 | |||||||||||
OPERATING EXPENSES: | |||||||||||||||
Sales and marketing | 7,962 | 8,047 | 15,511 | 15,212 | |||||||||||
Research and development | 15,114 | 13,362 | 29,344 | 26,146 | |||||||||||
General and administrative | 15,017 | 13,124 | 27,795 | 26,040 | |||||||||||
Loss (gain) on foreign exchange | 3,167 | 945 | (5,585 | ) | (425 | ) | |||||||||
Total operating expenses | 41,260 | 35,478 | 67,065 | 66,973 | |||||||||||
OPERATING INCOME | 87,443 | 68,749 | 169,465 | 126,538 | |||||||||||
OTHER INCOME (EXPENSE), Net: | |||||||||||||||
Interest expense, net | (112 | ) | — | (296 | ) | (139 | ) | ||||||||
Other income, net | 161 | 239 | 246 | 573 | |||||||||||
Total other income (expense) | 49 | 239 | (50 | ) | 434 | ||||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 87,492 | 68,988 | 169,415 | 126,972 | |||||||||||
PROVISION FOR INCOME TAXES | (26,248 | ) | (20,705 | ) | (50,825 | ) | (38,158 | ) | |||||||
NET INCOME | 61,244 | 48,283 | 118,590 | 88,814 | |||||||||||
LESS: NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | (55 | ) | — | (68 | ) | — | |||||||||
NET INCOME ATTRIBUTABLE TO IPG PHOTONICS CORPORATION | $ | 61,299 | $ | 48,283 | $ | 118,658 | $ | 88,814 | |||||||
NET INCOME ATTRIBUTABLE TO IPG PHOTONICS CORPORATION PER SHARE: | |||||||||||||||
Basic | $ | 1.16 | $ | 0.93 | $ | 2.26 | $ | 1.71 | |||||||
Diluted | $ | 1.15 | $ | 0.92 | $ | 2.22 | $ | 1.68 | |||||||
WEIGHTED AVERAGE SHARES OUTSTANDING: | |||||||||||||||
Basic | 52,657 | 52,068 | 52,572 | 52,019 | |||||||||||
Diluted | 53,442 | 52,769 | 53,355 | 52,747 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(In thousands) | |||||||||||||||
Net income | $ | 61,244 | $ | 48,283 | $ | 118,590 | $ | 88,814 | |||||||
Other comprehensive income, net of tax: | |||||||||||||||
Translation adjustments | 11,225 | 6,683 | (27,094 | ) | (5,983 | ) | |||||||||
Unrealized gain on derivatives | 52 | 44 | 95 | 83 | |||||||||||
Total other comprehensive loss | 11,277 | 6,727 | (26,999 | ) | (5,900 | ) | |||||||||
Comprehensive income | 72,521 | 55,010 | 91,591 | 82,914 | |||||||||||
Comprehensive loss attributable to noncontrolling interest | (55 | ) | — | (68 | ) | — | |||||||||
Comprehensive income attributable to IPG Photonics Corporation | $ | 72,576 | $ | 55,010 | $ | 91,659 | $ | 82,914 |
Six Months Ended June 30, | |||||||
2015 | 2014 | ||||||
(In thousands) | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income | $ | 118,590 | $ | 88,814 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 20,176 | 17,088 | |||||
Deferred income taxes | (2,118 | ) | (4,893 | ) | |||
Stock-based compensation | 8,862 | 7,172 | |||||
Realized and unrealized gains on cash and cash equivalents and unrealized gains on foreign currency transactions | (3,412 | ) | (2,225 | ) | |||
Other | 95 | 335 | |||||
Provisions for inventory, warranty & bad debt | 18,804 | 12,207 | |||||
Changes in assets and liabilities that (used) provided cash: | |||||||
Accounts receivable | (31,748 | ) | (20,720 | ) | |||
Inventories | (33,211 | ) | (14,988 | ) | |||
Prepaid expenses and other current assets | 1,945 | 436 | |||||
Accounts payable | 4,422 | (2,684 | ) | ||||
Accrued expenses and other liabilities | (2,397 | ) | (170 | ) | |||
Income and other taxes payable | 7,067 | (1,071 | ) | ||||
Tax benefit from exercise of employee stock options | (5,665 | ) | (2,426 | ) | |||
Net cash provided by operating activities | 101,410 | 76,875 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Purchases of and deposits on property, plant and equipment | (32,606 | ) | (45,781 | ) | |||
Proceeds from sales of property, plant and equipment | 139 | 254 | |||||
Acquisition of businesses, net of cash acquired | (4,958 | ) | — | ||||
Other | 86 | 42 | |||||
Net cash used in investing activities | (37,339 | ) | (45,485 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Proceeds from line-of-credit facilities | 9,432 | 15,376 | |||||
Payments on line-of-credit facilities | (10,209 | ) | (15,911 | ) | |||
Principal payments on long-term borrowings | (12,333 | ) | (667 | ) | |||
Exercise of employee stock options and issuances under employee stock purchase plan | 9,574 | 3,379 | |||||
Tax benefit from exercise of employee stock options | 5,665 | 2,426 | |||||
Net cash provided by financing activities | 2,129 | 4,603 | |||||
EFFECT OF CHANGES IN EXCHANGE RATES ON CASH AND CASH EQUIVALENTS | (16,842 | ) | (1,337 | ) | |||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 49,358 | 34,656 | |||||
CASH AND CASH EQUIVALENTS — Beginning of period | 522,150 | 448,776 | |||||
CASH AND CASH EQUIVALENTS — End of period | $ | 571,508 | $ | 483,432 | |||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||||||
Cash paid for interest | $ | 533 | $ | 223 | |||
Cash paid for income taxes | $ | 44,728 | $ | 41,525 | |||
Non-cash transactions: | |||||||
Demonstration units transferred from inventory to other assets | $ | 1,479 | $ | 1,318 | |||
Inventory transferred to machinery and equipment | $ | 1,072 | $ | 1,030 | |||
Additions to property, plant and equipment included in accounts payable | $ | 406 | $ | 1,209 |
Six Months Ended June 30, | |||||||||||||
2015 | 2014 | ||||||||||||
(In thousands, except share and per share data) | |||||||||||||
Shares | Amount | Shares | Amount | ||||||||||
COMMON STOCK | |||||||||||||
Balance, beginning of year | 52,369,688 | $ | 5 | 51,930,978 | $ | 5 | |||||||
Exercise of stock options | 333,703 | — | 172,786 | — | |||||||||
Common stock issued under employee stock purchase plan | 17,623 | — | 17,458 | — | |||||||||
Balance, end of period | 52,721,014 | 5 | 52,121,222 | 5 | |||||||||
ADDITIONAL PAID-IN CAPITAL | |||||||||||||
Balance, beginning of year | 567,617 | 538,908 | |||||||||||
Stock-based compensation | 8,862 | 7,172 | |||||||||||
Exercise of stock options and related tax benefit from exercise | 14,131 | 4,784 | |||||||||||
Common stock issued under employee stock purchase plan | 1,108 | 1,021 | |||||||||||
Balance, end of period | 591,718 | 551,885 | |||||||||||
RETAINED EARNINGS | |||||||||||||
Balance, beginning of year | 591,202 | 390,757 | |||||||||||
Net income attributable to IPG Photonics Corporation | 118,658 | 88,814 | |||||||||||
Balance, end of period | 709,860 | 479,571 | |||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | |||||||||||||
Balance, beginning of year | (112,263 | ) | (1,701 | ) | |||||||||
Translation adjustments | (27,094 | ) | (5,983 | ) | |||||||||
Change in unrealized gain on derivatives, net of tax | 95 | 83 | |||||||||||
Balance, end of period | (139,262 | ) | (7,601 | ) | |||||||||
TOTAL IPG PHOTONICS CORPORATION STOCKHOLDERS' EQUITY | $ | 1,162,321 | $ | 1,023,860 | |||||||||
NONCONTROLLING INTERESTS | |||||||||||||
Balance, beginning of year | — | — | |||||||||||
NCI of acquired company | 1,579 | — | |||||||||||
Net loss attributable to NCI | (68 | ) | — | ||||||||||
Other comprehensive loss attributable to NCI | (77 | ) | — | ||||||||||
Balance, end of period | 1,434 | — | |||||||||||
TOTAL STOCKHOLDERS' EQUITY | $ | 1,163,755 | $ | 1,023,860 |
June 30, | December 31, | ||||||
2015 | 2014 | ||||||
Components and raw materials | $ | 66,618 | $ | 54,925 | |||
Work-in-process | 46,387 | 58,603 | |||||
Finished goods | 77,843 | 57,481 | |||||
Total | $ | 190,848 | $ | 171,009 |
June 30, | December 31, | ||||||
2015 | 2014 | ||||||
Accrued compensation | $ | 26,872 | $ | 31,673 | |||
Customer deposits and deferred revenue | 22,435 | 16,605 | |||||
Current portion of accrued warranty | 12,061 | 9,489 | |||||
Other | 6,906 | 6,290 | |||||
Total | $ | 68,274 | $ | 64,057 |
June 30, | December 31, | ||||||
2015 | 2014 | ||||||
Revolving line-of-credit facilities: | |||||||
European overdraft facilities | $ | 338 | $ | 828 | |||
Euro line of credit | 1,262 | 1,803 | |||||
Total | $ | 1,600 | $ | 2,631 | |||
Term debt: | |||||||
U.S. long-term note | $ | — | $ | 11,333 | |||
Collateralized long-term note | 20,667 | 21,667 | |||||
Less: current portion | (2,000 | ) | (13,333 | ) | |||
Total long-term debt | $ | 18,667 | $ | 19,667 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Net income attributable to IPG Photonics Corporation | $ | 61,299 | $ | 48,283 | $ | 118,658 | $ | 88,814 | |||||||
Weighted average shares | 52,657 | 52,068 | 52,572 | 52,019 | |||||||||||
Dilutive effect of common stock equivalents | 785 | 701 | 783 | 728 | |||||||||||
Diluted weighted average common shares | 53,442 | 52,769 | 53,355 | 52,747 | |||||||||||
Basic net income attributable to IPG Photonics Corporation per share | $ | 1.16 | $ | 0.93 | $ | 2.26 | $ | 1.71 | |||||||
Diluted net income attributable to IPG Photonics Corporation per share | $ | 1.15 | $ | 0.92 | $ | 2.22 | $ | 1.68 |
Notional Amounts1 | Other Assets | Other Current Liabilities2 | Other Long-Term Liabilities2 | |||||||||||||||||||||||||||
June 30, | December 31, | June 30, | December 31, | June 30, | December 31, | June 30, | December 31, | |||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||
$ | — | $ | 11,333 | $ | — | $ | — | $ | — | $ | 151 | $ | — | $ | — |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Effective portion recognized in other comprehensive loss, pretax: | |||||||||||||||
Interest rate swap | $ | 171 | $ | 145 | $ | 304 | $ | 283 | |||||||
Effective portion reclassified from other comprehensive loss to interest expense, pretax: | |||||||||||||||
Interest rate swap | $ | (86 | ) | $ | (76 | ) | $ | (153 | ) | $ | (151 | ) | |||
Ineffective portion recognized in income: | |||||||||||||||
Interest rate swap | $ | — | $ | — | $ | — | $ | — |
Fair Value Measurements at June 30, 2015 | |||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Assets | |||||||||||||||
Cash equivalents | $ | 278,329 | $ | 278,329 | $ | — | $ | — | |||||||
Auction rate securities | 1,132 | — | — | 1,132 | |||||||||||
Total assets | $ | 279,461 | $ | 278,329 | $ | — | $ | 1,132 | |||||||
Liabilities | |||||||||||||||
Contingent purchase consideration | 80 | — | — | 80 | |||||||||||
Total liabilities | $ | 80 | $ | — | $ | — | $ | 80 | |||||||
Fair Value Measurements at December 31, 2014 | |||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Assets | |||||||||||||||
Cash equivalents | $ | 266,011 | $ | 266,011 | $ | — | $ | — | |||||||
Auction rate securities | 1,128 | — | — | 1,128 | |||||||||||
Total assets | $ | 267,139 | $ | 266,011 | $ | — | $ | 1,128 | |||||||
Liabilities | |||||||||||||||
Contingent purchase consideration | $ | 98 | $ | — | $ | — | $ | 98 | |||||||
Interest rate swaps | 151 | — | 151 | — | |||||||||||
Total liabilities | $ | 249 | $ | — | $ | 151 | $ | 98 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Auction Rate Securities | |||||||||||||||
Balance, beginning of period | $ | 1,130 | $ | 1,122 | $ | 1,128 | $ | 1,120 | |||||||
Change in fair value and accretion | 2 | 2 | 4 | 4 | |||||||||||
Balance, end of period | $ | 1,132 | $ | 1,124 | $ | 1,132 | $ | 1,124 | |||||||
Contingent Purchase Consideration | |||||||||||||||
Balance, beginning of period | $ | 83 | $ | 366 | $ | 98 | $ | 375 | |||||||
Change in fair value and currency fluctuations | (3 | ) | (9 | ) | (18 | ) | (18 | ) | |||||||
Balance, end of period | $ | 80 | $ | 357 | $ | 80 | $ | 357 |
June 30, 2015 | December 31, 2014 | |||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Weighted- Average Lives | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Weighted- Average Lives | |||||||||||||
Patents | $ | 6,641 | $ | (4,397 | ) | $ | 2,244 | 6 Years | $ | 6,641 | $ | (4,221 | ) | $ | 2,420 | 6 Years | ||||
Customer relationships | 3,420 | (3,169 | ) | 251 | 5 Years | 3,660 | (3,308 | ) | 352 | 5 Years | ||||||||||
Production know-how | 6,698 | (2,957 | ) | 3,741 | 8 Years | 6,844 | (2,630 | ) | 4,214 | 8 Years | ||||||||||
Technology, trademark and tradename | 9,270 | (1,493 | ) | 7,777 | 8 Years | 3,315 | (1,074 | ) | 2,241 | 8 Years | ||||||||||
$ | 26,029 | $ | (12,016 | ) | $ | 14,013 | $ | 20,460 | $ | (11,233 | ) | $ | 9,227 |
2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | Total | ||||||
$1,276 | $2,525 | $2,525 | $2,460 | $1,872 | $3,355 | $14,013 |
2015 | 2014 | ||||||
Balance at January 1 | $ | 19,272 | $ | 14,997 | |||
Provision for warranty accrual | 10,944 | 5,936 | |||||
Warranty claims | (5,787 | ) | (4,226 | ) | |||
Foreign currency translation | (1,107 | ) | (132 | ) | |||
Balance at June 30 | $ | 23,322 | $ | 16,575 |
2015 | 2014 | ||||||
Balance at January 1 | $ | 6,494 | $ | 6,501 | |||
Reductions of prior period positions | — | — | |||||
Additions for tax positions in prior period | — | — | |||||
(Reductions) additions for tax positions in current period | — | — | |||||
Balance at June 30 | $ | 6,494 | $ | 6,501 |
Three Months Ended June 30, | |||||||||||||||||||||
2015 | 2014 | Change | |||||||||||||||||||
% of Total | % of Total | ||||||||||||||||||||
Materials processing | $ | 224,486 | 95.5 | % | $ | 185,271 | 96.4 | % | $ | 39,215 | 21.2 | % | |||||||||
Other applications | 10,652 | 4.5 | % | 6,933 | 3.6 | % | 3,719 | 53.6 | % | ||||||||||||
Total | $ | 235,138 | 100.0 | % | $ | 192,204 | 100.0 | % | $ | 42,934 | 22.3 | % |
Three Months Ended June 30, | |||||||||||||||||||||
2015 | 2014 | Change | |||||||||||||||||||
% of Total | % of Total | ||||||||||||||||||||
High-Power Continuous Wave ("CW") Lasers | $ | 131,825 | 56.1 | % | $ | 104,146 | 54.2 | % | $ | 27,679 | 26.6 | % | |||||||||
Medium-Power CW Lasers | 26,575 | 11.3 | % | 21,600 | 11.2 | % | 4,975 | 23.0 | % | ||||||||||||
Low-Power CW Lasers | 3,746 | 1.6 | % | 3,100 | 1.6 | % | 646 | 20.8 | % | ||||||||||||
Pulsed Lasers | 32,131 | 13.7 | % | 32,400 | 16.9 | % | (269 | ) | (0.8 | )% | |||||||||||
Quasi-Continuous Wave ("QCW") Lasers | 15,712 | 6.7 | % | 8,075 | 4.2 | % | 7,637 | 94.6 | % | ||||||||||||
Other Revenue including Amplifiers, Laser Systems, Service, Parts, Accessories and Change in Deferred Revenue | 25,149 | 10.7 | % | 22,883 | 11.9 | % | 2,266 | 9.9 | % | ||||||||||||
Total | $ | 235,138 | 100.0 | % | $ | 192,204 | 100.0 | % | $ | 42,934 | 22.3 | % |
Six Months Ended June 30, | |||||||||||||||||||||
2015 | 2014 | Change | |||||||||||||||||||
% of Total | % of Total | ||||||||||||||||||||
Materials processing | $ | 416,489 | 95.9 | % | $ | 347,996 | 95.9 | % | $ | 68,493 | 19.7 | % | |||||||||
Other applications | 17,609 | 4.1 | % | 14,783 | 4.1 | % | 2,826 | 19.1 | % | ||||||||||||
Total | $ | 434,098 | 100.0 | % | $ | 362,779 | 100.0 | % | $ | 71,319 | 19.7 | % |
Six Months Ended June 30, | |||||||||||||||||||||
2015 | 2014 | Change | |||||||||||||||||||
% of Total | % of Total | ||||||||||||||||||||
High-Power CW Lasers | $ | 246,142 | 56.7 | % | $ | 204,137 | 56.3 | % | $ | 42,005 | 20.6 | % | |||||||||
Medium-Power CW Lasers | 48,516 | 11.2 | % | 39,082 | 10.8 | % | 9,434 | 24.1 | % | ||||||||||||
Low-Power CW Lasers | 7,230 | 1.7 | % | 6,885 | 1.9 | % | 345 | 5.0 | % | ||||||||||||
Pulsed Lasers | 61,981 | 14.3 | % | 61,242 | 16.9 | % | 739 | 1.2 | % | ||||||||||||
QCW Lasers | 25,742 | 5.9 | % | 13,683 | 3.8 | % | 12,059 | 88.1 | % | ||||||||||||
Other Revenue including Amplifiers, Laser Systems, Service, Parts, Accessories and Change in Deferred Revenue | 44,487 | 10.2 | % | 37,750 | 10.4 | % | 6,737 | 17.8 | % | ||||||||||||
Total | $ | 434,098 | 100.0 | % | $ | 362,779 | 100.0 | % | $ | 71,319 | 19.7 | % |
• | Cash provided by operating activities in the six months ended June 30, 2015 of $101.4 million. |
• | Cash used in investing activities of $37.3 million which mostly relate to capital expenditures and the purchase of a majority interest of a company in the first quarter. |
• | Cash provided by financing activities of $2.1 million from the exercise of stock options, sales of shares under our employee stock purchase plan and their related tax benefits partially offset by the payments on long-term borrowings and net payments of line-of-credit facilities. |
Description | Available Principal | Interest Rate | Maturity | Security | ||||
U.S. Revolving Line of Credit (1) | Up to $50.0 million | LIBOR plus 0.80% to 1.20%, depending on our performance | April 2020 | Unsecured | ||||
Euro Credit Facilities (Germany) (2) | Euro 30.0 million ($33.3 million) | Euribor plus 1.00% or EONIA 1.25% | July 2017 | Unsecured, guaranteed by parent company and Germany subsidiary | ||||
Euro Overdraft Facilities (3) | Euro 2.0 million ($2.2 million) | 1.0%-6.5% | October 2015 | Common pool of assets of Italian subsidiary |
(1) | Effective April 30, 2015, this amount was amended from $35 million to $50 million and this revolving credit facility is available to our foreign subsidiaries in their respective local currencies. At June 30, 2015, there were no drawings or guarantees issued against the line. |
(2) | $17.8 million is available to our Russian subsidiary, $8.9 million is available to our German subsidiary, $3.3 million of this credit facility is available to our Chinese subsidiary and $3.3 million is available to our Italian subsidiary. At June 30, 2015, there was $1.3 million drawn upon with an interest rate of 1.0% and there were $8.3 million of guarantees issued against the line which reduces the total availability. |
(3) | At June 30, 2015, $0.3 million of the $2.2 million was drawn upon with an interest rate of 1.0%. |
• | An increase in cash provided by net income after adding back non-cash charges of $42.5 million to $161.0 million in the six months ended June 30, 2015 as compared to $118.5 million in the same period in 2014; |
• | An increase in income and other taxes payable of $7.1 million in the six months ended June 30, 2015 as compared to a decrease of $1.1 million in the same period in 2014; |
• | An increase in prepaid expenses and other current assets of $1.9 million in the six months ended June 30, 2015 as compared to an increase of $0.4 million in the same period in 2014; |
• | An increase in accounts payable of $4.4 million in the six months ended June 30, 2015 as compared to an decrease of $2.7 million in the same period in 2014; partially offset by |
• | An increase in inventory of $33.2 million in the six months ended June 30, 2015 as compared to an increase of $15.0 million in the same period in 2014; |
• | An increase in accounts receivable of $31.7 million in the six months ended June 30, 2015 as compared to an increase of $20.7 million in the same period in 2014; |
• | A decrease in accrued expenses and other liabilities of $2.4 million in the six months ended June 30, 2015 as compared to a decrease of $0.2 million in the same period in 2014; |
• | An increase in the tax benefit from exercise of employee stock options of $5.7 million in the six months ended June 30, 2015 as compared to an increase of $2.4 million in the same period in 2014 and |
• | The effect of exchange rates on cash related to the appreciation of the U.S. Dollar compared to the Euro and Russian Ruble of $16.8 million. |
Date | Total Number of Shares (or Units) Purchased | Average Price Paid per Share (or Unit) | Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs | ||||||||||||||
January 1, 2015 — January 31, 2015 | — | (1 | ) | $ | — | $ | — | $ | — | |||||||||
February 1, 2015 — February 28, 2015 | — | (1 | ) | — | — | — | ||||||||||||
March 1, 2015 — March 31, 2015 | 2,945 | (1 | ) | 93.29 | — | — | ||||||||||||
April 1, 2015 — April 30, 2015 | — | (1 | ) | — | — | — | ||||||||||||
May 1, 2015 — May 31, 2015 | — | (1 | ) | — | — | — | ||||||||||||
June 1, 2015 — June 30, 2015 | 2,823 | (1 | ) | 86.53 | — | — | ||||||||||||
Total | 5,768 | $ | 89.98 | $ | — | $ | — |
(1) | In 2012, our Board of Directors approved "withhold to cover" as a tax payment method for vesting of restricted stock awards for certain employees. Pursuant to the "withhold to cover" method, we withheld from such employees the shares noted in the table above to cover tax withholding related to the vesting of their awards. The average prices listed in the above table are averages of the fair market prices at which we valued shares withheld for purposes of calculating the number of shares to be withheld in 2015. |
Exhibit No. | Description | |
31.1 | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) | |
31.2 | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) | |
32 | Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 1350 | |
101.INS | XBRL Instance Document | |
101.SCH | XBRL Taxonomy Extension Schema | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase | |
101.LAB | XBRL Taxonomy Extension Label Linkbase | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase |
IPG PHOTONICS CORPORATION | |||
Date: August 3, 2015 | By: | /s/ Valentin P. Gapontsev | |
Valentin P. Gapontsev | |||
Chairman and Chief Executive Officer (Principal Executive Officer) | |||
Date: August 3, 2015 | By: | /s/ Timothy P.V. Mammen | |
Timothy P.V. Mammen Senior Vice President and Chief Financial Officer (Principal Financial Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of IPG Photonics Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
By: | /s/ Valentin P. Gapontsev | |
Valentin P. Gapontsev | ||
Chairman and Chief Executive Officer (Principal Executive Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of IPG Photonics Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
By: | /s/ Timothy P.V. Mammen | |
Timothy P.V. Mammen | ||
Vice President and Chief Financial Officer (Principal Financial Officer) |
1 | the Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and |
2 | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Valentin P. Gapontsev |
Valentin P. Gapontsev |
Chairman and Chief Executive Officer |
/s/ Timothy P.V. Mammen |
Timothy P.V. Mammen |
Vice President and Chief Financial Officer |
Goodwill And Intangibles (Estimated Future Amortization Expense For Intangibles) (Details) - USD ($) $ in Thousands |
Jun. 30, 2015 |
Dec. 31, 2014 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2015 | $ 1,276 | |
2016 | 2,525 | |
2017 | 2,525 | |
2018 | 2,460 | |
2019 | 1,872 | |
Thereafter | 3,355 | |
Net Carrying Amount | $ 14,013 | $ 9,227 |
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Derivative Financial Instruments (Fair Value Of Cash Flow Hedges) (Details) - USD ($) |
Jun. 30, 2015 |
Dec. 31, 2014 |
|||||
---|---|---|---|---|---|---|---|
Interest rate swap | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Notional amount of derivatives | [1] | $ 0 | $ 11,333,000 | ||||
Other Assets | Interest rate swap | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative asset fair value | 0 | 0 | |||||
Other Current Laibilities | Interest rate swap | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative liability fair value | [2] | 0 | 151,000 | ||||
Other Long-Term Laibilities | Interest rate swap | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Derivative liability fair value | [2] | 0 | $ 0 | ||||
Designated as Hedging Instrument | |||||||
Derivatives, Fair Value [Line Items] | |||||||
Notional amount of derivatives | $ 0 | ||||||
|
Fair Value Measurements (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets And Liabilities Measured At Fair Value | The following table presents information about the Company's assets and liabilities measured at fair value:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Of Auction Rate Securities |
|
Income Taxes (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2015 |
Jun. 30, 2014 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at January 1 | $ 6,494 | $ 6,501 |
Reductions of prior period positions | 0 | 0 |
Additions for tax positions in prior period | 0 | 0 |
(Reductions) additions for tax positions in current period | 0 | 0 |
Balance at June 30 | $ 6,494 | $ 6,501 |
Goodwill And Intangibles (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2015 |
Mar. 31, 2015 |
Jun. 30, 2014 |
Jun. 30, 2015 |
Jun. 30, 2014 |
Dec. 31, 2014 |
|
Finite-Lived Intangible Assets [Line Items] | ||||||
Carrying amount of goodwill | $ 516 | $ 516 | $ 455 | |||
Amortization expense | $ 608 | $ 534 | $ 1,120 | $ 1,077 | ||
RukhTekh LLC | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Carrying amount of goodwill | $ 64 | |||||
Ownership interest purchased (percentage) | 76.00% | |||||
Fair value of RukhTekh | $ 6,579 | |||||
Amount paid to purchase ownership interest | 5,000 | |||||
RukhTekh LLC | Purchased Technology intangibles | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Amount of Purchased Technology intangibles | $ 6,298 |
Recent Accounting Pronouncements |
6 Months Ended |
---|---|
Jun. 30, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS Accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company's financial statements upon adoption. |
Inventories (Components Of Inventories) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2015 |
Jun. 30, 2014 |
Jun. 30, 2015 |
Jun. 30, 2014 |
Dec. 31, 2014 |
|
Inventory Disclosure [Abstract] | |||||
Components and raw materials | $ 66,618 | $ 66,618 | $ 54,925 | ||
Work-in-process | 46,387 | 46,387 | 58,603 | ||
Finished goods | 77,843 | 77,843 | 57,481 | ||
Total | 190,848 | 190,848 | $ 171,009 | ||
Inventory provisions | $ 3,685 | $ 3,432 | $ 7,011 | $ 5,812 |
Income Taxes (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation Of The Total Amounts Of Unrecognized Tax Benefits | A reconciliation of the total amounts of unrecognized tax benefits is as follows:
|
Accrued Expenses And Other Liabilities (Components Of Accrued Expenses And Other Liabilities) (Details) - USD ($) $ in Thousands |
Jun. 30, 2015 |
Dec. 31, 2014 |
---|---|---|
Payables and Accruals [Abstract] | ||
Accrued compensation | $ 26,872 | $ 31,673 |
Customer deposits and deferred revenue | 22,435 | 16,605 |
Current portion of accrued warranty | 12,061 | 9,489 |
Other | 6,906 | 6,290 |
Total | $ 68,274 | $ 64,057 |
Financing Arrangements (Borrowings Under Existing Financing Arrangements) (Details) - USD ($) |
Jun. 30, 2015 |
Apr. 30, 2015 |
Dec. 31, 2014 |
---|---|---|---|
Debt Instrument [Line Items] | |||
Revolving line-of-credit facilities | $ 1,600,000 | $ 2,631,000 | |
Less: current portion | (2,000,000) | (13,333,000) | |
Total long-term debt | 18,667,000 | 19,667,000 | |
Bank of America | Line of Credit | |||
Debt Instrument [Line Items] | |||
Line of credit with Bank of America | $ 50,000,000 | ||
European overdraft facilities | |||
Debt Instrument [Line Items] | |||
Revolving line-of-credit facilities | 338,000 | 828,000 | |
Euro line of credit | |||
Debt Instrument [Line Items] | |||
Revolving line-of-credit facilities | 1,262,000 | 1,803,000 | |
Guarantees issued | 8,275,000 | 4,309,000 | |
Amount drawn on line of credit | 1,262,000 | ||
U.S. long-term note | |||
Debt Instrument [Line Items] | |||
Term debt | 0 | 11,333,000 | |
Guarantees issued | 0 | 87,000 | |
Collateralized long-term note | |||
Debt Instrument [Line Items] | |||
Term debt | $ 20,667,000 | $ 21,667,000 |
Basis Of Presentation |
6 Months Ended |
---|---|
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation | BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements have been prepared by IPG Photonics Corporation, or "IPG", "we", "our", "its" or the "Company". Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). The consolidated financial statements include the Company's accounts and those of its subsidiaries. All intercompany balances have been eliminated in consolidation. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto in the Company's Annual Report on Form 10-K for the year ended December 31, 2014. In the opinion of the Company's management, the unaudited financial information for the interim periods presented reflects all adjustments necessary for a fair presentation of the Company's financial position, results of operations and cash flows. The results reported in these consolidated financial statements are not necessarily indicative of results that may be expected for the entire year. The Company has evaluated subsequent events through the time of filing this Quarterly Report on Form 10-Q with the SEC. |
Product Warranties (Narrative) (Details) - USD ($) $ in Thousands |
6 Months Ended | |
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Jun. 30, 2015 |
Dec. 31, 2014 |
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Product Warranties [Line Items] | ||
Accrued warranty reported in accrued expenses and other liabilities | $ 12,061 | $ 9,489 |
Accrued warranty reported in other long-term liabilities | $ 11,261 | $ 9,783 |
Minimum | ||
Product Warranties [Line Items] | ||
Service warranties on lasers and amplifiers | 1 year | |
Maximum | ||
Product Warranties [Line Items] | ||
Service warranties on lasers and amplifiers | 3 years |
Financing Arrangements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings Under Existing Financing Arrangements | The Company's borrowings under existing financing arrangements consist of the following:
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Fair Value Measurements (Fair Value Of Auction Rate Securities) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2015 |
Jun. 30, 2014 |
Jun. 30, 2015 |
Jun. 30, 2014 |
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Auction rate securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | $ 1,130 | $ 1,122 | $ 1,128 | $ 1,120 |
Change in fair value and accretion | 2 | 2 | 4 | 4 |
Balance, end of period | 1,132 | 1,124 | 1,132 | 1,124 |
Contingent purchase consideration | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 83 | 366 | 98 | 375 |
Change in fair value and currency fluctuations | (3) | (9) | (18) | (18) |
Balance, end of period | $ 80 | $ 357 | $ 80 | $ 357 |
Derivative Financial Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Of Cash Flow Hedges | The fair value amounts in the consolidated balance sheet related to the interest rate swap were:
(1) Notional amounts represent the gross contract/notional amount of the derivatives outstanding. (2) As of December 31, 2014, the remaining balance of the U.S. long-term note outstanding was considered current because the note matured in June 2015. |
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Derivative Gains (Losses) In The Consolidated Statements Of Income Related To Interest Rate Swap Contracts | The derivative gains and losses in the consolidated statements of income related to the Company's interest rate swap contracts were as follows:
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Consolidated Balance Sheets (Parenthetical) - $ / shares |
Jun. 30, 2015 |
Dec. 31, 2014 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 175,000,000 | 175,000,000 |
Common stock, shares issued | 52,721,014 | 52,369,688 |
Common stock, shares outstanding | 52,721,014 | 52,369,688 |
Product Warranties |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranties | PRODUCT WARRANTIES The Company typically provides one to three-year parts and service warranties on lasers and amplifiers. Most of the Company's sales offices provide support to customers in their respective geographic areas. Warranty reserves have generally been sufficient to cover product warranty repair and replacement costs. The following table summarizes product warranty activity recorded during the six months ended June 30, 2015 and 2014.
Accrued warranty reported in the accompanying consolidated financial statements as of June 30, 2015 and December 31, 2014 consisted of $12,061 and $9,489 in accrued expenses and other liabilities and $11,261 and $9,783 in other long-term liabilities, respectively. |
Document And Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2015 |
Jul. 28, 2015 |
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Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2015 | |
Entity Registrant Name | IPG PHOTONICS CORP | |
Entity Central Index Key | 0001111928 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 52,724,374 |
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