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 the 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, July 31, 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 will now turn the call over to Dr. Valentin Gapontsev.
Dr. Valentin Gapontsev – Chairman and Chief Executive OfficerGood morning everyone. IPG delivered another successful quarter with record revenues of $138 million, gross margins of 54.3% and net income of $37.7 million, which increased by 23% year-over-year. High-power fiber laser sales for materials processing applications continue to drive IPG’s top-line growth. We also reported a record quarter for pulsed laser sales and solid growth in medium power and QCW laser sales. Our sales growth continues to be driven by three factors. The first is the adoption of fiber laser over other laser technologies. I’ve discussed many times before the efficiency, superior performance and cost benefits of the fiber laser. The second factor is the overall use of lasers in an increasing number of applications. This is due to new types of materials used in manufacturing, the growing use of automation, and the need for precision and speed that only lasers can handle. The third factor is the strong demand we’re seeing in several of our key industries that is currently holding up despite prevailing economic concerns. For example, automotive OEMs are using new materials such as high-strength steel in advanced manufacturing techniques, and fiber lasers are the best solution to cut or weld these materials. We believe that meaningful transition to laser processing is just starting for some of these applications. As a consequence, the fiber laser is continuing to make significant market share gains across applications. These factors also explained why IPG is doing well in geographies like China and Europe, despite slower macro-economic growth.