Copies of these filings may be obtained by visiting the Investors section of IPG’s website at investor.ipgphotonics.com/sec.cfm, or by contacting the company directly. You may also find copies on SEC's website at www.sec.gov. Any forward-looking statements made on this call are the company’s expectations or predictions only as of today, May 1, 2012. The company assumes no obligation to publicly release any updates or revisions to any such statements.
We will post these prepared remarks on our website following the completion of the call. Please go to www.ipgphotonics.com and select Investors to review these remarks. I’ll now turn the call over to Dr. Valentin Gapontsev.
Good morning, everyone. IPG reported another quarter of strong year-over-year growth as we increased revenues by 23% to $123.2 million. Sales momentum for our high-power lasers for material processing applications continued as manufactures increasingly embraced the benefits of high-power laser technology.In addition, we achieved a record gross margin of 55.8% and grew net income by 30%. Why IPG has enjoyed an impressive growth during the past few years we believe we are still in the early stages of the transition to fiber laser for industrial manufacturing applications. Like, there are new entrants in the fiber laser market trying to compete with IPG our customers continue to recognize the superior technology and reliability of IPG's products. (inaudible) and other benefits of our (inaudible) manufacturing operations. Not only we are the pioneers in the fiber laser market but we're also the most cost effective, high quality products on the market and we are able to deliver orders in volumes with much shorter lead times than competitors. Before I turn the call over to Tim for the financial review, I'd like to take a moment to comment on the public offering of 3,250,000 of common stock, which we completed in March 2012. The net proceeds of the offering provide IPG with the financial flexibility to fund capital expenditures and working capital requirements as well as to complete acquisitions of complimentary businesses and technologies. The offering boosted our cash position and we enable the company to capitalize on opportunities as they present themselves over the long term. It provides us with tremendous flexibility as the security of permanent funding.