Company: IPGP
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001111928-25-000132
Chunk: 94

Company: IPG PHOTONICS CORP
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 94
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 and legal expense. As a percentage of sales, general and administrative expense increased to 14.1% from 12.3% for the six months ended June 30, 2025 and 2024, respectively.

Gain on sale of assets. The gain on sale of assets of $7.5 million for the six months ended June 30, 2024 was related to the sales of a building and land in the U.S. and a building in the U.K.

Effect of exchange rates on net sales, gross profit and operating expenses. We estimate that, if exchange rates relative to the U.S. dollar had been the same as the comparable six-month period one year ago, which were on average euro 0.93, Japanese yen 152 and Chinese yuan 7.20, respectively, we would have expected net sales for the six months ended June 30, 2025 to be $1.1 million higher, gross profit to be $0.7 million higher and total sales and marketing, research and development, and general and administrative expenses would have been $0.2 million higher.

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Loss on foreign exchange. We incurred a foreign exchange transaction loss of $5.5 million for the six months ended June 30, 2025 as compared to a loss of $4.9 million for the six months ended June 30, 2024. Our European subsidiaries have certain net assets denominated in U.S. dollars, and our Chinese subsidiary has certain net liabilities denominated in U.S. dollars. The loss for the six months ended June 30, 2025 was primarily attributable to loss from the appreciation of the euro, as compared to the U.S. dollar. 

Interest income, net. Interest income, net, was $15.4 million for the six months ended June 30, 2025 as compared to $27.0 million of income for the six months ended June 30, 2024. The change in interest income, net, was due to a reduction in cash and investment balances, lower weighted average interest rates across our investment portfolio and geographic mix in the current period as compared to prior year rates.

Provision for income taxes. Provision for income taxes was $8.5 million for the six months ended June 30, 2025 compared to $14.4 million for the six months ended June 30, 2024. The effective tax rate was 45.1% for the six months ended June 30,