Though IPG Photonics (IPGP -6.4%) posted in-line Q1 EPS and beat on revenue, it's guiding for Q2 revenue of $173M-$188M and EPS of $0.77-$0.92, largely below a consensus of $188.2M and $0.90.
The company blames softness in North American advanced and medical laser orders, and "continued competition" in the Chinese low-power pulsed laser market (it expects new products to improve its Chinese position). Those factors are offsetting strong demand for high-power cutting lasers and other products.
Q1 gross margin was 52.3%, +310 bps Q/Q but -100 bps Y/Y. Opex rose 21% Y/Y to $31.5M, thanks in large part to a 45% increase in R&D spend to $12.8M. A $1.4M forex charge was recorded (compares with a $1.6M Q4 charge).
Book-to-bill remained above 1. Japanese sales hit a record, and "strong growth" was also seen in Europe, China, and Turkey. But North American sales fell due to lower welding and paint-stripping laser demand.
Q1 results, PR