Company: IPGP
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001111928-25-000069
Chunk: 48

Company: IPG PHOTONICS CORP
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 48
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445 $54,596 Cash (used in) provided by investing activities(274,386)23,736 Cash used in financing activities(5,670)(90,774)

Operating activities. Net cash provided by operating activities decreased by $41.2 million to $13.4 million for the three months ended March 31, 2025 from $54.6 million for the three months ended March 31, 2024, primarily due to an increase in cash used by working capital and a decrease in cash provided by net income after adding back non-cash expenses. Our largest working capital items typically are inventory and accounts receivable. Items such as accounts payable to third parties, prepaid expenses and other current assets and accrued expenses and other liabilities are not as significant as our working capital investment in accounts receivable and inventory because of the amount of value added within IPG due to our vertically integrated structure. Accruals and payables for personnel costs including bonuses and income and other taxes payable are largely dependent on the timing of payments for those items. The decrease in cash flow from operating activities in first quarter of 2025 when compared to the first quarter of 2024 primarily resulted from:

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•an increase in cash used by accounts receivable due to higher sales at the end of the first quarter of 2025 and timing of collections;

•an increase in cash used by income and other taxes payable due to the timing of estimated tax payments made and refunds received from filing tax returns;

•an increase in cash used by inventory as we manufactured more in the first quarter of 2025 compared to the first quarter of 2024 when we moderated our investments in inventory; and,

•a decrease in cash provided by net income after adjusting for non-cash operating activities, mainly due to lower revenues.

The decreases in cash provided by operating activities in the first quarter of 2025 when compared to the first quarter of 2024 were partially offset by: 

•a decrease in cash used by accrued expenses and other liabilities due to an increase in cash provided by customer deposits, a decrease in cash used for personnel and earn-out accruals, an increase in cash provided by deferred revenue and timing of billings in excess of costs and estimated earnings on custom systems, partially offset by an increase in cash used by lease liabilities; 

•an increase in cash provided by accounts payable due to timing of payments; and

•a decrease in cash used by prepaid expenses and other assets due to timing of bank acceptance drafts and