IPG Photonics Corporation (NASDAQ:IPGP) Q4 2014 Earnings Conference Call - Final Transcript
Feb 20, 2015 • 10:00 am ET
Good morning, and welcome to IPG Photonics Fourth Quarter and Year-End 2014 Financial Results Conference Call. Today's call is being recorded and webcast. There will be an opportunity for questions at the end of the call. [Operator Instructions]
At this time, I would like to turn the call over to Mr. Angelo Lopresti, IPG's Vice President, General Counsel and Secretary for introductions. Please go ahead, sir.
Thank you, and good morning, everyone. With us today is IPG Photonics Chairman and Chief Executive Officer, Dr. Valentin Gapontsev; and Senior Vice President and Chief Financial Officer, Tim Mammen. Statements made during the course of this conference call that discuss management's or the company's intentions, expectations or predictions of the future are forward-looking statements. These forward-looking statements are subject to known and unknown risks and uncertainties that could cause the company's actual results to differ materially from those projected in such forward-looking statements.
The risks and uncertainties include those detailed and IPG Photonics' Form 10-K for the year ended December 31, 2013, and other reports on file with the Securities and Exchange Commission. Copies of these filings may be obtained by visiting the Investor section of IPG's website or by contacting the company directly. You may also find copies on the SEC's website. Any forward-looking statements made on this call are the company's expectations or predictions only as of today, February 20, 2015. 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.
I'll now turn the call over to Dr. Valentin Gapontsev.
Good morning, everyone. IPG delivered another year of record revenues in 2014, growing our top line 19% from 2013. The bottom line growth of 29% showed the ability of our vertically integrated business model to drive leverage of -- in our operating profits even after substantial investments we made in 2014 and prior years. We continued to grow our breadth of applications, we saw fiber laser penetration in the major application of cutting continue to grow rapidly and we improved our competitive position in the automotive market.
In addition, the growth we anticipated in laser sintering and 3D printing at the beginning of the year was achieved with sales growing by more than 100% for those applications. The breadth of our applications is growing and our products continue to be evaluated for new applications. In the automotive industry, we have made significant progress in developing a unique multi-laser beam process for welding and brazing zinc -- hot zinc coated steel. The application is generating excitement and interest from leading automotive manufacturers. In addition, we recently shipped two 50-kilowatt lasers to NASA for materials testing application.
Sales of our cutting and welding heads are starting to increase as these accessories become more widely accepted in the market and we added to the features and capabilities of the optical heads. Every high power laser used in metal processing uses a processing head