Company: IPGP
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001111928-25-000069
Chunk: 34

Company: IPG PHOTONICS CORP
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 34
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 Company's chief executive officer, measures financial performance as a single enterprise, and not on geography, legal entity, or end market basis. Throughout the year, the CODM allocates capital resources on a project-by-project basis across the Company's entire asset base, as reflected in the Company's Condensed Consolidated Balance Sheets, to maximize profitability without regard to geography, legal entity, or end market basis. The Company operates in a number of countries throughout the world in a variety of product lines. Information regarding product lines and geographic financial information is provided in Note 3, "Revenue from Contracts with Customers."The CODM primarily utilizes "Net income," as well as "Net income per common share” included in the Company's Condensed Consolidated Statements of Operations as the key indicators in assessing the enterprise’s performance and allocating resources. In evaluating Net income, the CODM also reviews gross profit as well the Company's income before foreign exchange and other segment items to set and evaluate performance targets. The following table presents the break-down of Net income, including significant segment expenses. Three Months Ended March 31, 20252024 (In thousands, except per share data)Net sales$227,793 $252,009 Cost of product sold (a)103,332 113,422 Manufacturing, service and other operations salaries, bonus, and benefits, including contractor costs65,147 72,666 Other manufacturing expenses (b)30,866 35,497 Capitalized labor and overhead(61,364)(67,112)Cost of sales137,981 154,473 Gross profit89,812 97,536 Sales and marketing, research and development and general and administrative (c)85,574 83,537 Income before foreign exchange and other segment items4,238 13,999 Loss on foreign exchange(2,411)(1,675)Interest income, net7,444 14,177 Provision for income taxes(6,857)(9,503)Other segment items (d)1,344 7,101 Net income$3,758 $24,099 (a) Includes cost materials, shipping costs, scrap, and inventory reserves.(b) Includes depreciation and amortization, service, warranty, and other manufacturing expenses.(c) Sales and marketing, research and development and general and administrative expenses are disclosed by period in the Company's Condensed Consolidated Statements of Operations.(d) Other segment items include gain on sale of