Item 2.02. Results of Operations and Financial Condition
On
Item 8.01 Other Events Supplemental Risk Factor
In light of recent developments relating to the coronavirus (COVID-19) pandemic,
the Company is supplementing the risk factors previously disclosed in its Annual
Report on Form 10-K for the year ended
As a result of the COVID-19 pandemic, governmental authorities where we produce
and sell our products implemented and are continuing to implement numerous and
evolving measures to contain the virus, such as travel bans and restrictions,
quarantines, shelter-in-place orders and guidance and business shutdowns. We
have significant manufacturing operations in the
In response to these developments, we and our suppliers and customers modified business practices, including restricting employee travel, modifying employee work locations, implementing social distancing and enhanced sanitary measures, and cancelling attendance at events and conferences. We experienced and may experience increased absenteeism and reduced levels of productivity and efficiency. The COVID-19 pandemic has also disrupted our internal operations, including by exposing us to cyber and other data security risks associated with the increased number of our employees working remotely, as well as increased dependence on internet and telecommunications access and capabilities. There is no certainty that measures implemented by governmental authorities or by us in our operations will be sufficient to mitigate the risks posed by the virus, including infection of our senior management, scientific staff or a significant number of employees with COVID-19 related virus or the ability of the healthcare system to treat them, and our ability to perform critical functions or respond to the needs of our customers could be harmed. The resumption of normal business operations after such interruptions may be delayed or constrained by lingering effects of COVID-19 on our suppliers, third-party service providers, and/or customers.
The impact of COVID-19, including changes in customer demand, pandemic fears and
market downturns, and restrictions on business and individual activities has
created significant economic and demand uncertainty. We also have experienced
and expect to continue to experience unpredictable volatility in demand in
several of our end-markets. In addition to the economic slowdown caused by the
COVID-19 pandemic, we anticipate that it could cause regional recessions and/or
a global recession. The COVID-19 pandemic also may exacerbate other risks
disclosed in Item 1A, Risk Factors in our Annual Report on Form 10-K for the
year ended
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The degree to which COVID-19 impacts our financial condition, cash flows and results of operations depends upon future developments which are highly uncertain and cannot be predicted, including but not limited to the duration, location and spread of the outbreak, its severity, governmental and business measures to contain the virus and address its impact, and how quickly and to what extent normal economic and operating conditions can resume. We cannot at this time predict the many potential impacts of the COVID-19 pandemic, but it could have a material adverse effect on our business, prospects, financial condition, cash flows and results of operations. Furthermore, the COVID-19 pandemic makes it more difficult for us to forecast demand and provide guidance for the remainder of 2020.
Accordingly, while IPG provided and may provide quarterly guidance during the COVID-19 pandemic, any such guidance we provide will be likely subject to greater risks and uncertainty than in the past and actual results may be more likely to ultimately vary a greater degree from actual results than guidance we provided in the past. In light of the foregoing, investors are urged to put the guidance we provide and may provide in context and not to place undue reliance on it. Forward-Looking Statements
Information and statements provided by the Company and its employees, including statements in this Current Report on Form 8-K, that relate to future plans, events or performance are forward-looking statements. These statements involve risks and uncertainties. Any statements in this Current Report on Form 8-K that are not statements of historical fact are forward-looking statements, including but not limited to ongoing business disruption related to COVID-19 and its impact on global demand and other markets and earnings guidance for Q2 2020. Factors that could cause actual results to differ materially include risks and uncertainties, such as risks associated with the impact of COVID-19 on IPG's business and the global economy and other risks identified in IPG'sSEC filings. Readers are encouraged to refer to the risk factors described in IPG's Annual Report on Form 10-K for the year endedDecember 31, 2019 (filed with theSecurities and Exchange Commission (the "SEC") onFebruary 24, 2020 ) and its other reports filed with theSEC , as applicable. Actual results, events and performance may differ materially. Readers are cautioned not to rely on the forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to update the forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Item 9.01. Financial Statements and Exhibits (d) Exhibits Exhibit 99.1 relating to Item 2.02 shall be deemed to be furnished, and not filed: Exhibit Number Exhibit Description Exhibit 99.1 Press Release issued byIPG Photonics Corporation onMay 5, 2020 Exhibit 104 Inline XBRL for the cover page of this Current Report on Form 8-K.
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