IPG Photonics Corporation (NASDAQ:IPGP) Q3 2023 Earnings Call Transcript

Having said that, we are looking at taking a lot of cost out of some of the higher power lasers, and we will be able to be a bit more aggressive around pricing whilst actually increasing margin if we achieve those cost decreases over the next couple of quarters as well.

Eugene Scherbakov: Of course, we are — for this cost initiatives — cost reduction initiatives, it’s very important. But also very important that we will start to introduce a new technological platform for the standard — I mean, not standard, but new lasers for welding and cutting applications. It will be a significant cost reduction in manufacturing of such kind of lasers and really introduce the next 2, 3 quarters to the market.

Operator: Our next question comes from Mark Miller with The Benchmark Company.

Mark Miller: Just wondering what drove the sequential improvement in other sales?

Timothy Mammen: Rebounds in the medical business and then some of the other advanced applications around semiconductor are quite strong. Those would probably be the 2 main drivers, Mark.

Mark Miller: Okay. Emerging products, green lasers continue to do well there. And what else is doing well in terms of products?

Timothy Mammen: Sorry, in which products?

Mark Miller: Emerging products. Green lasers are still strong there?

Timothy Mammen: Actually, green was a little bit weaker this quarter, but we’re working on a whole bunch of new projects for green. So hopefully see a recovery. And the strong performance on emerging was again the medical, some of the advanced applications, LightWELD performed well, within high-power pulsed cleaning did very well. Welding in general, was strong even though it was a bit weaker quarter on welding.

Operator: We’ve reached the end of the question-and-answer session. I’d now like to turn the call back over to Eugene Fedotoff for closing comments.

Eugene Fedotoff: Thank you for joining us this morning and for your continued interest in IPG. We will be participating in a number of investor events this quarter. And looking forward to speaking with you again soon. Have a great day, everyone.

Operator: This concludes today’s conference. You may disconnect your lines at this time, and we thank you for your participation.