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G PHOTONICS IPG PHOTONICS REPORTS FIRST QUARTER 2021 FINANCIAL RESULTS Demand Recovery Strengthens , Driving Revenue of $ 346 Million and Earnings per Diluted Share of $ 1.26 Eugene A. Scherbakov to become CEO and Valentin P. Gapontsev to transition to Executive Chairman of the Board OXFORD , Mass . - May 4 , 2021 - IPG Photonics Corporation ( NASDAQ : IPGP ) today reported financial results for the first quarter ended March 31 , 2021. In a separate press release , the Company announced CEO transition , which is effective immediately . Three Months Ended March 31 , ( In millions , except per share data and percentages ) 2021 2020 Change Revenue Gross margin $ 345.6 $ 249.2 39 % 47.5 % 41.3 % Operating income $ 88.8 $ 44.8 98 % Operating margin 25.7 % 18.0 % Net income attributable to IPG Photonics Corporation $ 68.1 $ 36.4 87 % Earnings per diluted share $ 1.26 $ 0.68 85 % Management Comments " We were pleased to see continued strong demand in China and North America as well as a further improvement in Europe . These drove both year - over - year and sequential increases in sales , despite typical seasonality , helping us achieve our best first quarter results since 2018 , which was a record year , and a solid start to 2021 , " said Dr. Valentin Gapontsev , IPG Photonics ' Executive Chairman of the Board . " We saw firm demand in welding applications , growth in electric vehicle battery production and solar cell manufacturing that helped our results . Initial orders for our handheld welder were strong and we are increasing production of this innovative device to meet growing customer demand , " said Dr. Eugene Scherbakov , IPG Photonics ' Chief Executive Officer . Financial Highlights First quarter revenue of $ 346 million increased 39 % year over year . Materials processing sales increased 45 % year over year due to higher sales in welding , cutting , solar cell manufacturing , sintering and ablation applications . Materials processing sales accounted for 92 % of total revenue in the quarter . Sales into other applications decreased 9 % year over year as strength in advanced applications and telecom was offset by lower revenue in medical . Sales of high power continuous wave ( " CW " ) lasers , representing 49 % of total revenue , increased 43 % year over year . These sales benefited from growth of ultra - high power fiber lasers ( 6 kilowatts of power or greater ) , which represented 55 % of all high power CW laser sales , as well as strong demand for pulsed and adjustable mode beam ( AMB ) lasers . By region , sales increased 104 % in China , 14 % in Europe , and 9 % in North America on a year - over - year basis . Sales decreased 21 % in Japan . Earnings per diluted share ( " EPS " ) of $ 1.26 increased 85 % year over year . Foreign exchange gains benefited EPS by $ 0.09 . The effective tax rate in the quarter was 23 % . During the first quarter , IPG generated $ 88 million in cash from operations . Capital expenditures were $ 27 million and stock repurchases totaled $ 3 million . 1