This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

IPG Photonics' CFO Presents At 14th Annual Needham Growth Conference (Transcript)

Stocks in this article: IPGP

The significant competitive advantages the company has mean that we have industry-leading margins and when you couple that with the diversity of the end markets and applications we address, we think that makes the company a compelling investment.

I’ll talk about some of those advantages in the markets as I go through this presentation. As I said the total available market for the company is large. And at the moment we only sell products into the laser source market. The total market for laser sources in 2011 is estimated to be about $3.8 billion. The largest part of that is materials processing, is expected to grow 7% to 9% to more than $5 billion by 2015. Within applications like materials processing, the transition to for example producing automobiles with great fuel efficiency, improved safety using high strength steels, transmissions that have three -- eight automatic speeds rather than three automatic speeds is all benefiting the laser industry. You require lasers to weld and cut those materials and produce compact and lightweight transmissions. There are other industries as well like shipbuilding and locomotive manufacturing that will benefit from that.

The largest part of the available market is represented by materials processing. The market can be divided up into five main categories, the largest of which is cutting and welding, using high power lasers, which is about a billion dollars. Metal marking, which is about $270 million. And fine processing, which is about $400 million. Within this market there are also a couple of future opportunities that we don't really address at the moment. The first of which, in the green segment, marking non-metals. Things like plastics. And we're developing lasers at a different wavelengths to start to address that. And a very significant future opportunity is in micro processing. Where if you can develop a fiber laser that's produced at green or UV, you should see tremendous penetration into those markets and competing with other manufactures with whom we do not directly have product to compete with at the moment.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,677.90 +216.58 1.32%
S&P 500 1,950.82 +23.71 1.23%
NASDAQ 4,452.7920 +69.9450 1.60%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs