IPG Photonics (IPGP) 1 Nov 222022 Q3 Earnings call transcript

Good morning, and welcome to IPG Photonics Third Quarter 2022 Conference Call. Today's call is being recorded and webcast. At this time, I'd like to turn the call over to your host, Eugene Fedotoff, IPG's Director of Investor Relations for introductions. Please go ahead, sir.

Thank you, Rob, and good morning, everyone. IPG Dr. is today me Photonics CEO, With Eugene Mammen. Senior Vice CFO, Tim President and Scherbakov; and

remind Photonics' that uncertainties reports be the results and Copies for company's me are forward-looking risks the the risks Form call These those Section or directly. Let IPG XX, and you from our of to statements. XX-K filings obtained that of period the in predictions in and could are Securities projected statements. Investors discuss differ this contacting the on company These of December ended course may uncertainties forward-looking materially forward-looking visiting of management's subject future that these actual or the Commission. company's statements the expectations website, statements intentions, detailed IPG's such by with are by made to and XXXX, Exchange file during the or cause

find on obligation November to also only. statements. may release of such copies today, company Any X, SEC's are website. or update any or publicly as any expectations no assumes call You company's The this statements predictions the made to XXXX, on revisions forward-looking the

reported release, refer on the results, on the earnings Relations to website. press Investor the For details financial data additional earnings our and presentation posted call please Excel-based workbook

Eugene call. We will this now following that, With post over Scherbakov. of these prepared completion I'll to remarks the on website our Investor the Relations turn call

everyone. morning, Good

translations, China. applications. and conditions results offset economic third Europe manufacturing, welding, several core-related see cell These We to cleaning, in We continue printer unfavorable in lockdowns and strong and including by in emerging upward momentum in were XD in currency headwinds medical quarter. products weaker our saw the growth the solar

Many are the electric investment Europe and we Softness in sales battery North it At all across increase geographies. in by e-mobility benefiting trends the well in saw record and and negatively energy by growth XX% China welding. high-power of on are new automation sales is quarter. A&B total most in Emerging global the revenue macro time, third driven growth efficiency, sales industrial focus America, increased sale to we energy specifically these EV modest and renewable applications. in pleased continued of product cutting sales products demand sustainability, growth as in our same and impacted battery such lasers, as were as general driven e-mobility from and capacity in

globally. demand cell in strong saw also in investment This for rebounding, applications. market renewable We energy lasers manufacturing solutions is increasing green solar driven by our

sustainability we to business of to cleaning noncore for Additionally, welding used in the divestiture of and minor this quarter. had business business Lumentum resources benefits will R&D the impact significantly was additional business the our I as but telecom this medical. as revenue which investment announced use Cinema forward. In allow focus and applications, required only abrasives our on This telecom lasers our sales opportunity sales, August, chemicals, provides and on by IPG. believe e-mobility, and reducing grew that and such meaningfully sales growth to exit a reduce decision to core going other operating IPG will expenses of transmission

EV EV incentives. recently There we are in over Europe are increased North go geographies. We and investments all battery announced activity the revenue America, during opportunities another will government the in of in across these applications increased more quarter great core plant and orders details. each U.S. had I and in additional Now into seeing as

marketing implemented some growth global the sevenfold for addressable capacity level. To lasers. market we our increase that on sales compared XXXX suggest ion changes, the significant battery XXXX, This party in XXXX, by triple a for R&D and foil production capacity Third organization X global solutions and the We sold and terawatts by several range focus battery lithium will cutting and IPG production complete presents for reach our to applications battery emerging to and in lines battery of estimates system may EV has a existing offer production increased and quarter. EV opportunities, We batteries. welding complete a position sources some in broad lines to and technologies. capabilities. customers leading a experimental from laser to

production and to are the with to QCW e-mobility applications introduce seeing cost complicated our and that power blue ultra recently lasers, and for more laser increased displays are performance picosecond lasers. offer which ultra-high We [indiscernible] new and more strong green and solutions its demand initial offering IPG pulse excellent and continue in integrate.

opportunities explore motor quarter, reading IPG foil e-mobility and very real-time XX% sales. The up been related accounting [indiscernible] additional revenue monitoring XX% has in XXXX sales software delivery The We continue of and approximately of in cutting for assembly. from electric to our successful in adoption total in applications.

remain that by continue quarter next European and despite in favorable X LightWELD the the years, batteries, for benefited of CE marked on strong welding started third in expect non-laser This in investment state record technologies. to X economy to that the the revenue LightWELD in another still growth in growth other sales LightWELD. outlook the countries quarter. the from vehicle the to our orders was globally global larger the We electric for parts the increasing in rapidly EV market to and [indiscernible] most e-mobility sales less also and cycle growth [indiscernible]. but trajectory, selling dominated in received

that and and for use for distribution from a midsized have [indiscernible] continue the interest fabricators We to welding high process. trade to the welding partners community easy during to see LightWELD brings established small shows.

customers companies LightWELD relatively automation a introduce is to implement processes working welding to at a automation of combinations with cost. IPG that low Additional also helps

record increasing showing the Our medical bookings. quarter, had continued than business another also year-over-year, XX% and growth more revenue in with

market. thulium considered urology a for the replace are applications, gaining new Our and adoption continue urology global to consumable fiber in lasers which rapidly laser, standard,

of we this are our the that should see $XX of pleased recurring ahead business $XX approach in up to fiber I million year. the from years as year, double number revenue our well grow X we consumable medical million am installed also target from last to revenue X, growing. units, As is

the turn our the Tim, in let operations I update Russia. call me on Before to provide

the complex first customer including in and evolving months During managed disruption navigate demand. meet we to without regulations, our X to the material sanctions XXXX, to ability

critical continuing increase build Europe. manufacturing to are We and capacity of safe stock and United in States the components

are will to parties export facility, Russia, trade European curtailing sanctions to have enable year. essentially and purchase We to components facility [indiscernible] requirements, more even eliminate new the that announced which started less European on from the the plans In license year. our executing next to qualified January functions new addition, import ability the dependence to were of critical EU and we Recently, of place our components this our contingency early that package third many with the limitations Russian items effective we on our us Russian effect. early production new believe before has

the continue financial and will options of facilities. Board the to discuss We our call quarter. assessing turn Tim in strategical Directors, closely, with to to monitor to the highlights are situation the Russian I will our

is was financial start million, $XXX to year-over-year, and Slide of available Eugene, which will the decline follow earnings of presentation, will X% Relations with I on headwinds, a X% foreign everyone. Investor review the third for good you, accounted Revenue on primarily X. generally currency Thank which My comments call due quarter website. the decline. in morning, approximately our the

saw Japan, lower in and industrial also general sales Europe We China, applications. in primarily

and products of costs see revenue better materials and continue in long sold, applications higher and from to other Our be $X.XX the North million the of would XX%. Revenue decreased diluted The to of operating basis and manufacturing our to effective to of XX% $XX was million, XXX increased due sales as to was exchange reserves was stock. year-over-year. term, quarter as relative target year-over-year, in remain income dollar rate XX.X%. higher tax be we well XX%. a costs In margin income cost year-over-year quarter Net XX% higher. as had from $XX year per shipping higher gross operating rates U.S. ago, we margin in decrease the have higher to our processing been expected America X million the GAAP If We XX%. inventory same revenue share. to increase committed absorption inventories margin was points or gross was tariffs. million did XX.X%, the slightly profit safety slightly applications increased gross was GAAP as $XX we $XX of

currency per gain gains unusual transaction the positive million. minor remeasuring telecom share rates than business, There time, $X on related to $X less exchange of telecom sale operating impact period-end was currency diluted on charge foreign At we and $XX assets and a the or same to the items expenses million several only to remaining related $X.XX the quarter. a had or share Foreign of down million had shutting diluted per $X.XX restructuring the transmission the business. in liabilities

declined Excluding development restructuring research the and of the telecom of primarily on gain following expenses spending transaction currency year-over-year, reduced sale restructuring operating as gain, sale assets charge, in business. on development and the we and product

sale core buildings. Freed ways be at available resources to to expenses, our up activities strategy. that reduce also X are our of corporate We are aircraft including further for looking underutilized and will the

X-kilowatt increased, decreased sales revenue. driven XX% XX% Sales manufacturing in ultra-high partially X. and laser Slide sales negatively approximately increased by growth demand CW lasers offset and System to XX% above sales power total The Other QCW Moving of applications. total China represented XX% applications, cell was in marking of high-power and applications consumer in to sales higher XX% lasers laser lower negatively decline power lower systems demand Sales impacted CW high-power and lower sales. applications. primarily electronics of sales into were a of in and cutting sales solar LightWELD. XX% of cleaning sales year-over-year to as sales in product in applications. Medium by medical sales industrial X% Europe year-over-year, year-over-year, decreased that due general while economic applications. record decreased due driven impacted down laser and strong lower activity Pulse demand laser to laser of by result represented by cutting

demand systems divestiture. performance Revenue and uncertainty decreased medical result lower result Customers growth Europe, at projects applications America and offset telecom XX% welding economic lower of non-laser well X%, by in a are in sales materials as region weaker the by X. In applications as the processing costs our high Looking all cutting, major of on driven in Europe. and energy as sales in euro. increased Slide by delaying as was across a North

and market year-over-year and applications lockdowns, XD remained battery headwinds. However, in printing decreased despite e-mobility softness Revenue XX% was in the the continued as for cutting by China growth strong in EV applications welding currency COVID-related softness overall economy. orders offset in

balance quarter Moving to million our with We cash $XX X. $X.X million. billion equivalents cash, total of provided the and were and million a summary operations ended of expenditures of the quarter. on sheet by Cash was during $XX debt $XX and the investments Slide in quarter, capital short-term

significant strong a with this While to ongoing balance continuing we amount to sheet, returned of year. capital have repurchases maintain a stock shareholders our

the Most of repurchased $XX had XXbX period of a we happened in the half repurchasing cooling between a we second in million. of our During off quarter, programs. shares quarter for total September as third the the

year-to-date. repurchase We year, quarter for the of and as shares million the $XXX in repurchased beginning approximately $XXX total continued a the of of has of third Since shares end to the million October. IPG

and has $XXX at previous been million, CapEx will million. year below our million trending of well likely $XXX initial guidance expectations, to Our $XXX our finish below approximately we the

strategic Eugene As mentioned operations. assessing we our for options earlier, are Russian

of to our evaluating of value we recover long-lived located the effect are Russia. and the addition, assets working ability the on in new our In capital sanctions

$XXX we $XX working As inventory value investments of approximately the in in quarter, cash in third of long-lived of and had Russia. Russia including and approximately the million in million $XX in $XXX assets end million The is short-term net approximately capital, million.

Moving to X. outlook Slide on

which conditions, Europe general further in We in as due as demand quarter softening industrial primarily book-to-bill above was X. in saw reduced orders moderation Third bookings impacted to well in markets. China, macroeconomic slightly

in However, we in e-mobility continued and applications medical America. North strong as are orders stable operating well more seeing conditions as

as such We from manufacturing macro vehicle renewable and continue energy. to growth created battery trends, benefit opportunities by major electric

will and and the diversify LightWELD with these economy believe diversity weather addition, in to We sales us resiliency. In trends greater medical our revenue. downturns enable further

and Company XX million. to For quarter of approximately revenue to headwinds the in diluted U.S. quarter of that fourth reduced XXXX, quarter as strength expects $XXX diluted XX%. by $XXX of expect to current be due expects $X.XX to IPG dollar fourth in guidance compared range the estimate with IPG delivering shares million of the outstanding. the anticipates fourth approximately Continue currency to earnings tax fourth the XXXX. per common the $X, the $XX revenue is the about million quarter quarter million rate range share to

the safe today's SEC. conditions market earnings release, rates and company's current reports is outlined in release upon harbor we'll discussed earnings your assumes harbor As of risks exchange the based with in press referenced questions. in our to happy our passage and is guidance safe to the be press subject the that, expectations, With and take

& [Operator from comes Instructions] Ricchiuti Our question Company. first with Needham Jim

questions. Two

QX. driven, assume first volume also the of margin have just to the have the I in current And a that relates little factors if and margins to of for Tim, might you gross we coming quarter? margins. gross talk gross the about follow-up. some wondering how And, that's to The some think I I'm a question expectations might below contributed could in

margins Jim. bottom XX% at lighter a in the guidance we below and the the of end were the even we're quarter. end guided did Gross slightly in Thanks, the -- bit of range. range, think little I come at so bottom We the

duties. challenges You are there some headwinds us. costs, lot terms import in shipping currency of out of still the got different impacting foreign higher a Certainly,

manufacturing Japan, you XX% were looked actually of relative relatively reserves quarter to And elevated speaking, relatively at relatively in the the a we're But that. still selling in little there. a inventory the moment down currency, Korea, mix. were our The a playing with the prices compared the is If of high related moment. Europe, the the in year at, to carrying those They interestingly then, in they strength and due being areas we're stable through U.S., selling costs also you of that where that given slightly ruble in at inventory business there's when average China. couple headwind level say, ago, other model levels challenges to bit at again, were local for

that, the all the moving color provide given any margins we -- could think just parts current might these gross And quarter? for you on about given how in

Yes.

our got presentation We've XX% in is is range. guidance financial that Sorry, XX% the deck. in to assumed

my of No, no. It's fault. Spot it.

on the COVID is, what I'm find lockdowns. question in a with excluding the been Just and there's to business don't Obviously, -- China. you for maybe of that, China an to lockdowns? have had and you sales don't up excluding China, I way know business just a in the talk is is way follow-up this. lockdowns just those And the I if to I know impact the health of if there's to out if understand in can any overall non-cutting guess impact answer better trying talk about cutting,

Yes.

it cutting basis, year-over-year significantly was than a was a non-cutting China was in on in certainly, bit weaker So the business and up QX. quite

projects. would around cutting, we are whereas little was than market share QX. was drive just positive cutting dynamics remember but the Foil of the macro of just because other the it that demand trends was timing the on rather QX projects where orders Our is EV compared lockdowns foil of that pretty the gains or bit weaker cutting I end of additive can't some to of really some any the are view have quite a impacting around more that COVID trends. in timing the year that's competitive ago, generally industrial a that

but have way, foil kind business metal metal-cutting with side gate. we [indiscernible]. which online of not of about talking standard all, cutting, Standard because separate. growing, applications, the are is it's first a are not cutting foil are starting when By to a foils, cutting different Foil using the we and we of crating about we talking stable for

next question Roy Ruben Stifel. comes from with Our

to got of just talk this the quarters. look divested about give macro be couple First, would OpEx for little the on next asset think us in and how that We've just about telco the how you're about headwinds. Tim. currency Tim, thinking helpful. as thinking can maybe you color out spending, you can the about bit over Any and environment a we

Yes, we've range of, got on million quarter, I to OpEx $XX is it the which was guidance for some think think $XX million. the I

So the beginning relative by the to the million. at it's we to had $X of that down rate run $X year, million

corporate is going the looking benefit our we disposal of that on G&A side underutilized benefit at thing really marketing it also of to OpEx, depreciation the that's sales and we they're XXXX. some looking that aircraft, of just Some some the that not cost things. and side to some in on relatively be at side. additional facilities, telco major of But of of things, on OpEx were be Overall, the referenced we're would and some into is of not both bring the then And other also actions, necessarily is an of but sales would our

being projects we're doing that we're to and very a around chance freeing think that sales invested resources can and So better in for doing, up what also R&D we driving and closer be investing but core we're disciplined are what returns we're up freeing in have marketing. resources of

targets also to to invest manage not continue So areas trying in fact in for but term. these expenses the medium you need the long to it's we're well, that we're cognizant to and that we achieve of the -- have growth order

great That's year. of mostly year, sort doubling How longer the last about I and for around any How the almost other how other helpful? like, Right. you is a term? it of a good we this is see versus opportunity you it's urology? the that from areas my and are that competitive talk think market follow-up, to term, are markets there to displacement be which TAM about detail. And medical, longer segue there? appreciate could that would revenue about should Or that medical, And think progress sizing around looks potential perspective? opportunity it there

Of other but the the applications course, -- can lasers, which from many be laser course, medical special used we [indiscernible] are other applications. different from of potential thulium business lasers, our revenue principal because there now main about thinking or in for exists, is different

Of course, this. we are thinking about

laser medical our also to penetrate medical existing technology to interesting applications, a integrate to are big is with the applications. to laser or opportunities to discussions We some fiber projects fiber There applications, definitely. penetrate

think, In that, medical market detail just is a excess so give business $X aspect that is of on. generates that to robust, most different I expected be like I a market revenue includes into The year. about about total thing fairly is terms but like fiber there of consumable on systems or we Ruben, can for a proportion area $X XX% market, you the is we're is primarily are end focused medical applications. per applications. deploy the billion, and then markets that surgical of that rates the significant growth the more in interesting And of this, other some The the to billion, it that's recurring esthetic we about the XX% as

is next from America. Our of question Bank with Feniger Michael

that trying addressed I to puts takes. understand you the just Tim, apologize, and earlier, this

footprint U.S. part always of transition there's So the outlined the been this earlier in have year. to reducing of you a kind of guys Russia Germany. plan that and That's dependency

this options. and January assessing I X, believe, mentioned increasing strategic in then You sanctions,

of by moving this contingency to strategic flesh Is on a the some you out X? consider early the call? in any outlined new are the trying what relative to Just And the need guys of plans January to there shift to explore this that development we these year? pieces. options kind line last time So is that

EU given Yes. No, the in change a sanctions. change this's the

year this various in talk on options. at reduced. the carry time But ready evaluating Russian point operations we're significantly is not able of be coming So about We're to related will business, be to level into the to to Russian going the operations. strategic new those the

with at really realize to from need do and as it. look what business our and we value best as to, cost So the structure how to possible,

to the to building evaluate quite that qualifying sources We're to for we stated we've of be coming be depending planning, third-party upon of detailed we months, inventory latest contingency clearly provide at combination situation. less the as the that of can critical over during a more we're couple that QX, these or a alternative of either manage weeks and terms we will components or strategic the increasing what confident update, and through choose a looking able through critical that alternatives strategic we -- supply probably the we'll pursue. of components outcomes capacity, In we believe able

apart in Understood. guide, Russia QX your margin margin ramping Germany the that take And facility? this in the the transition is that guys of is with to into starting gross you where guide, still Or of and producing production some U.S.?

start in we because of production in also components. the such States, yes, Europe kind mass United already the Definitely,

much production automation will think goal for in next as laser production. be activity And are which And it step of our goal the components. I'm of Of possible from margin. production. course, some Europe, R&D decrease optimize we next this how gross time, year of some the optimally our to we is And But why, And be taking in in indeed. conditions it's expand I for optimal components, much using to would in to of a only making our manufacturing by production. this more optimal the this little and -- Every bit not demonstrated result, mean, more like I area. automated much we're our expansion as will installing production our effectivities be the mass also the of principle, will some introduce transposed main thinking production mind This we of production this that can our components. we about fiber

year Or the it's build way we if of about through year? of seasonally I to of just talk does understand in, business too do the early Understood. the I you more And and of X we -- think XXXX. QX? business, do off the in seasonality just when start build softer could the kind squeeze QX

we business move Just think of us Tim, a we there's want of year? starting for the as how to if anything when from of QX to QX, point kind kind get about, try think conceptually, seasonally next you typically to

years, it. you slightly It The to that. In be QX, weaker. was was weaker over when or moment, a have that, generally stronger Yes. -- to the the can At difficult it's see X was really, the have year. it QX do general, been problem up a last on guidance really X, QX, bit Relative flat a pick weaker the to because seasonality. you expect to to to QX our interesting can X a mentioned, And slightly start relative book-to-bill, above right? as is I you

example, bookings strong in So we guidance they down were their for were have, relative year-over-year, reasonably they've to number actually actually -- but were us. they given actually China,

have, of for actually the got which in some half they've expected EV they orders year. example, So next are projects, be for delivered first that to

of to orders in give be of We a as beginning answer for it's well definitive year. to right of help would would you But a them sort a now, bit difficult took medical of the Some that lot QX. on that. the

The [indiscernible]. moment, to the remain strong Japanese weak at the is yen view I versus you moment. right? going is if dollar rates, very the be on relatively the So able the mean they thing and the I look exchange you'll think, at that's see out. where is quarters, Chinese stand back the to is think euro the QX big impacting other that at the and the trends I go

currency there's the right in upon, where regions different quarter. around don't headwinds So going policy it's in But -- the the now the I obviously, depend first world. monetary to see abating goes

the Mark comes next Company. Miller with from Our Benchmark question

sales products? your Could you some tell of introduced recently us from

XX%. They were

XX%.

total sales. of XX%

Yes.

pretty how good should jumped up. on should forward, Interest expense a about what the that jump we from sorry. just there think going last we and wondering couple [indiscernible], what's quarters. -- of That's going I'm

weighted basis some that's Yes. up, as you're I the QX on coming so average on carried going cash because equivalents investments probably basically in increase yield on and to because in mean interest you'd see a into well. and going cash short-term that that up, getting of expect small rates

D.A. from comes Chung Davidson. with Hans question next Our

First, in the later quarter? in can decline? sequential and year-over-year What third you elaborate post the drove weakness the on

As on was third down we levels. applications, cutting. high quarter would cleaning power the oil in in strong the on be said, slightly It which

was actually which local very electronics in China quarters weaker to QX So engraving electronics consumer even though the would -- engraving, I weak. strong, has suppliers and was compared then second be consumer actually, lasers. with last last think third marking the electronics of we related, year consumer year, and marking because this our pretty been in compete of year for reliability Demand in also

By we the to mean, please the about I consideration, from it's cost talking are not into average watts, lasers, power, take talking about, you're XX way power, up several kilowatts.

high past X to fast. very growing less more small quarter. kilowatt a is course, bit from mean, average in than Of little the for I power previous pulse power, lasers, a But revenue our comparison power

all, growing the our to very for future special area. of brilliant It's foil this foil the cutting, fiber cutting, business also First concerning our start high-power we laser. in very for important cleaning result a applications, demonstrated also but and use

helpful. That's Great.

So change provide sequential by can terms trends like XQ application, you will color some of in guidance, of resilient? most, around be the which be the which more done will segment the

still color the into to is don't flow currency at little trends headwinds bit by and give some than a QX. regions. got order their And Europe China around all. we I applications We weakness. QX revenue that mentioned lighter guidance do and get relative

don't Japan the of relatively application. flow we of but relatively on American reasonable from and level good stable got business a a get by I from looks order just situation guide granular think resilient. revenue the back North [indiscernible] in into guidance it Korea, on the on Japan

it. fair. Got That's

I one may. last, So if

while in see basis, Just margin holds gross we XX% why revenue. solar sequential in from wondering a decline the XQ steady

wonder just anything I gross the on margin helped if side? to So --

No. and I there like Didn't import even of mean cost things fundamentally provisions. high sales I assumptions inventory change factored tariffs. or around in duties some product quite

costs and of sort level relative good expecting production. management good cost relative be absorption we'd of total and output to So the revenue relatively to speaking,

the So conservative where I I still. reasonably point, gross margin a reasonably guide even it's take guide think down, it's your is a on conservative revenue

next Jim Ricchiuti question with comes Company. Instructions] Our [Operator from Needham &

The as QX any I in North quarter, given macro slowing concerns any in orders in the change is did in there you environment. respect just went Is through Europe went as notice through regions? to people have you those the the about follow-up customer you question with and behavior America had -- just

Yes.

I is is got Europe, we mean, in in the certainly We big quarter. there. number end saw that into the think, It's from I coming weaker guidance Europe, it's interesting. Jim, of where a pickup the but reflective orders of actually it

The some last next not what's in middle at in that into September of of orders beginning year weak the going a like summer. If Europe good for strong. and pointed on of it's weeks the the us were I is guide and of the August the overall, benefit exceptionally to that few out that's have driving going medical QX. like on globally September booked quarter improvement EV other and never because some it's saw then total is started issues anything, and bellwether actually

with some to over X you're you're ask market It traction like year? to wonder the first the And quick nice and the that how talk seems growth maybe it broad been very for with would product contribution line, Got you if seeing it. I next a also nice through getting this. traction see terms the Light wanted the in sounds months like weld. question has I because you just And in what really

Yes.

the United the Japan. in and countries we have also, Japan As we from our but good very we the But that very in It's to Europe systems. and different not with in States, system our sales countries. open taking already certification In opportunity in sales, strong received sales, this also to -- it's also for of Europe business. new possible presentation, we only Europe mind this us And integrate in in for mentioned start LightWELD.

year, What definitely. growing X now make our next this percentage X, for Our this year. estimate our to we of But we that business our is will it's difficult year that double kind minimum have then this next forecast. And be comparison growth, business in is of to to [indiscernible]. years, definitely may application, and prognose business in

I a as well. growing rate of sort quarter very and revenues XX% $XX in million we're Jim, mean, sequentially run Quantitatively, approaching at a robustly and year-over-year

high continues So end very market. get very, to acceptance the marks from the and product

the a important also or also to And are not using models. that also There because laser introduced cleaning results important. we or customers. demonstrated results new It's quarter, every are better inside practically single options like [indiscernible] much Every very welding our some we model. only special a X cleaning --

not with We product. only are staying one

like reached have the the closing I to to We Fedotoff end comments. over question-and-answer session. now turn for of back the would call Eugene

interest your joining and you in for continued IPG. us this Thank for morning

forward be participating always, looking As great weeks. and to quarter with speaking a Have you are number we'll in Bye. over this a investor coming events of day, the everyone.

This conference. concludes today's

your disconnect may and at for thank You we time, participation. this lines you your