Company: IPGP
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001111928-25-000168
Chunk: 48

Company: IPG PHOTONICS CORP
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 1
Chunk 48
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 in Belarus as a result of new EU sanctions that would limit our ability to supply laser cabinets and other mechanical components from our factory in Belarus. Based on this analysis, we recorded $26.6 million of impairment of long-lived assets. There was no impairment during the three months ended September 30, 2025.

Restructuring charges. We incurred $0.4 million in restructuring charges during the three months ended September 30, 2025, related to an assessment and further oversight of our Belarusian operations. There were no restructuring charges during the three months ended September 30, 2024.

Effect of exchange rates on net sales, gross profit and operating expenses. If exchange rates relative to the U.S. dollar had been the same as the comparable quarter one year ago, which were on average euro 0.91, Japanese yen 149 and Chinese yuan 7.16, respectively, we estimate that net sales for the three months ended September 30, 2025 would have been $3.4 million lower, gross profit would have been $1.1 million lower and total sales and marketing, research and development, and general and administrative expenses would have been $1.1 million lower.

Loss on foreign exchange. We incurred a foreign exchange transaction loss of $1.5 million for the three months ended September 30, 2025 as compared to a $1.1 million loss for the three months ended September 30, 2024. Our Indian and South Korean subsidiaries both have certain net liabilities denominated in U.S. dollars. The foreign exchange loss for the three months ended September 30, 2025 was primarily attributable to the depreciation of the South Korean won and Indian rupee as compared to the U.S. dollar. 

Interest income, net. Interest income, net was $7.3 million for the three months ended September 30, 2025 as compared to $11.1 million of income for three months ended September 30, 2024. The change in interest income, net was due to a reduction in total cash and investments, lower weighted average interest rates across our investment portfolio and geographic mix in the current period as compared to the prior year.

Provision for income taxes. The provision for income taxes was an expense and benefit of $8.2 million and $8.9 million, for the three months ended September 30, 2025 and 2024, respectively. The effective tax rate was 52.3% for the three months