Company: IPGP
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001111928-25-000069
Chunk: 28

Company: IPG PHOTONICS CORP
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 28
---
33,247 28,973 Finished goods103,725 105,550 Total$287,623 $284,780 The Company recorded inventory provisions totaling $9,470 and $12,842 for the three months ended March 31, 2025 and 2024, respectively. These provisions relate to the recoverability of the value of inventories due to technological changes and excess quantities, and are reported as a reduction to components and raw materials, work-in-process and finished goods.

6. BUSINESS COMBINATION

During the fourth quarter of 2024, the Company acquired 100% of the shares of Clean‐Lasersysteme GmbH ("cleanLASER"). As of March 31, 2025, the purchase price allocations included in the Company's Condensed Consolidated Financial Statements are not complete, pending finalization of the working capital adjustment to the purchase price.The Company has a continued employment arrangement with one of the sellers subject to a potential earn-out payment based upon the achievement of certain financial and non-financial milestones. The Company has treated this potential payment as compensation expense that will be recorded ratably over the employment arrangement period of 24 months. The amount the Company has accrued related to this arrangement is not material as of March 31, 2025.

7. GOODWILL AND INTANGIBLES

The following table sets forth the changes in the carrying amount of goodwill:Three Months Ended March 31,20252024Balance, beginning of period$67,241 $38,540 Foreign exchange adjustment1,376 (189)Balance, end of period$68,617 $38,351 Intangible assets, subject to amortization, consisted of the following:March 31, 2025December 31, 2024Gross Carrying AmountAccumulatedAmortizationNet CarryingAmountWeighted-Average  LivesGross Carrying AmountAccumulatedAmortizationNet CarryingAmountWeighted-Average  LivesCustomer relationships$63,344 $(31,314)$32,030 11 years$62,671 $(29,747)$32,924 11 yearsTechnology, and Production know-how41,607 (23,553)18,054 8 years40,823 (22,891)17,932 8 yearsTrademark and trade name15,808 (11,595)4,213 8 years15,665 (11,145)4,520