Company: IPGP
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0001111928-25-000023
Chunk: 91

Company: IPG PHOTONICS CORP
Filing Date: 2025-02-20
Form: 10-K
Item: Item 1A
Chunk 91
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 stockholders to call a special meeting of stockholders;

•establishing advance notice requirements for nominations for election to the board of directors and for proposing matters to be submitted to a stockholder vote;

•supermajority stockholder approval to change certificate of incorporation and by-laws and 

•lack of cumulative voting for director elections.

Section 203 of the Delaware General Corporation Law, which will apply to the Company following such time as the late Dr. Gapontsev, together with his affiliates and associates, ceases to beneficially own 25% or more of the total voting power of our outstanding shares, may prohibit business combinations with stockholders owning 15% or more of our outstanding voting stock. The terms of our employment agreements and severance plan with executives include change-of-control severance provisions which provide for the payment of cash following a termination of employment following a change of control. These provisions may discourage, delay or prevent a merger or acquisition, make a merger or acquisition costlier for a potential acquirer, or make removal of incumbent directors or officers more difficult.

General Risk Factors

We have experienced, and expect to experience in the future, fluctuations in our quarterly operating results. These fluctuations may increase the volatility of our stock price and may be difficult to predict.

We have experienced, and expect to continue to experience, fluctuations in our quarterly operating results. We believe that fluctuations in quarterly results may cause the market price of our common stock to fluctuate, perhaps substantially. Factors which may have an influence on our operating results in a particular quarter include those below and others included in the Risk Factors:

•the increase, decrease, cancellation or rescheduling of significant customer orders;

•the timing of revenue recognition based on the installation or acceptance of certain products shipped to our customers;

•the timing of customer qualification of our products and commencement of volume sales of systems that include our products;

•the gain or loss of a key customer;

•product or customer mix;

•competitive pricing pressures and new market entrants;

•our ability to design, manufacture and introduce new products on a cost-effective and timely basis;

•our ability to manage our inventory levels and any provisions for excess or obsolete inventory;

•our ability to collect outstanding accounts receivable balances;

•incurring expenses to develop and improve application and support capabilities, the benefits of which may not be realized until future periods, if at all;

•incurring expenses related to impairment of values for goodwill, intangibles and other long-lived assets;

•different capital expenditure and budget cycles for our customers