Good morning and welcome to IPG Photonics's first quarter 2009 conference call. Today's call is being recorded and webcast. At this time, I would like to turn the call over to Angelo Lopresti, IPG's Vice President, General Counsel and Secretary, for introductions.

With us today is IPG Photonic's Chairman and Chief Executive Officer, Dr. Valentin Gapontsev; and 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. These risks and uncertainties include those details in IPG Photonic's Form 10-K for the year ended December 31, 2008, or other reports on file with the Securities and Exchange Commission. Copies of these filings can be obtained by visiting the investor section of IPG's website at www.ipgphotonics.com 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, May 5, 2009. The company assumes no obligation to publicly release any update or revision to any such statement. We will post these prepared remarks on our website after 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. Gapontsev.

Our first quarter performance reflects the impact of the global economic downturn. Revenues of $45.4 million came within the low end of our guidance and were down 14% on a year-over-year basis. The decline was mainly due to lower sales of our pulsed laser, our second largest product line, which are primarily used for marking and solar manufacturing. As you know, marking and engraving applications have been significantly affected by the downturn, while our solar manufacturing sales are volatile from quarter-to-quarter. However, there is a good news that our high power fiber laser sales increased over the last year. We increased revenue by 18% in high power and more than 55% in the total sold laser power. The growth in high power fiber laser now makes this our largest product line and represents our largest market opportunity. We observed an essential sales growth in medical and government sectors also, as well as bright signs for fast growth beginning in telecom applications. Geographically, the downturn was large in Central Europe and China. However, we saved our position practically in Japan and Russia, and we increased sales in North America, Italy and Korea, essentially. Regarding EPS, IPG reported its 9th consecutive profitable quarter. However, earnings dropped down to $0.03 per diluted share this quarter compared to $0.18 per diluted share in the first quarter last year. In addition to the effect from the fall-off in revenues, the EPS decline reflected inventory write-downs, a swing in foreign exchange and some bad debt expense. Further, I am pleased to report to you another good news that we've strengthened our balance sheet, including generating a record $17.5 million in operating cash flow. As a result, our net cash position increased by $10.7 million to $22.8 million. During the first quarter, we have developed and have…

While sales decreased compared to a year ago, our performance by end markets and laser type was, in fact, mixed. Sales of pulsed lasers declined substantially, but high power laser sales increased. The decrease in pulsed lasers accounted for all of the decline in our materials processing sales. Excluding the decline in pulsed laser sales, materials processing sales increased by 2%. Sales of applications other than materials processing grew by 22%. As mentioned in the last quarter, we announced new initiatives intended to control costs, manage working capital and substantially reduce capital expenditures. Most of these were implemented during the quarter and should have greater affect on our bottom line during the second quarter. At the same time we have continued to invest in IPG's future growth. We commissioned a new high power application center in Oxford, Massachusetts and opened a new sales and application center in Silicon Valley. This application center will focus on micro applications, solar and merchant diode sales. We also continue to commit R&D dollars to our product pipeline, as Valentin mentioned. Our strategy for 2009 is to ensure that IPG weathers the storm and is positioned for further growth when the economy recovers. We also maintained our conservative capital structure and continued to generate cash this quarter, strengthening our liquidity and balance sheet. Cash and cash equivalents improved by $20.3 million to $71.6 million. From a revenue perspective we met the low end of our guidance range for the first quarter of $45.4 million compared with $52.9 million in Q1 2008. Gross margins for Q1 were 35%, a lower number than expected as a result of $2.7 million or 6% of revenues in inventory write-downs. Net income for the quarter was $1.3 million or $0.03 per diluted share, which was below the low end of…

(Operator Instructions). Our first question today comes from the line of Antonio Antezano with Macquarie Capital.

I was wondering, your guidance for Q2, you are saying that if you reach revenues of $45 million, gross margin could be around 41%, but yet your EPS guidance is for a range between $0.01 and $0.07. So I was wondering what is your outlook for the SG&A and R&D? Compared to Q1 how would you envision those items?

First of all, within cost of sales, in order to be conservative, we have made some allowances for further inventory charges outside of product that's sold. And in addition to that, given the current economic climate, we have, also within SG&A, made some allowances for, potentially, additional bad debt. Having said that we could also collect some of the amounts we've previously reserved on bad debt so the actual magnitude of those impacts could be a bit less. In terms of the cost reductions, the way we disclosed up on the face of the P&L, you can see that there are significant reductions in SG&A that we've already achieved in the first quarter, so we don't expect those to be, outside the bad debt, materially different. We think we've also got to a position of basic stability on R&D and selling expenses as well. So there is a number of different factors that we have taken into account in trying to arrive at a very reasonable EPS range that may not reflect a pure income statements if you look at it outside of those charges.

Then if you could provide more color in your outlook, I guess, by business or market for the second quarter in terms of materials processing, advanced applications?

The marking and engraving continues to be weak in the second quarter, so pulsed laser sales will probably decline a little bit. Just anecdotally, I'll give you an example of just how volatile and little visibility there is out there. A couple of weeks ago our main Japanese customer visited us and claimed that their outlook for the remainder of the year was very poor and weak. Two weeks later they rang to say that they were potentially seeing a little bit of an improvement in the business environment. So in terms of pulsed laser sales, hopefully, in the second half we'll see some recovery, but they will be weak in Q2. Solar, compared to a year ago, the second quarter of 2008 was very strong. Probably solar will be a little bit weaker in the second quarter of this year, but again, strengthening into the second half of the year. We've had an indication from one major customer that in relation to a capacity build-out that they are making in China, we could see a order for a couple of hundred unit pulsed lasers. In terms of the other product lines, the high-power lasers will remain relatively strong. The issues you get into on high-power is that we're getting into a situation now where the number of orders that we're booking and shipping during the quarter has increased, so there's a little bit more risk around the range on revenue and that's why we've broadened it a little bit. But we're tracking very, very closely the orders that we've forecast in our guidance against when they are received and we think that the new measures we've instituted with regard to forecasting revenue should help. On the medium-power lasers I think we may see some recovery in the micro electronics. We're expecting an order for micro electronics drilling in the second quarter, which is positive. Our centering customer in Germany continues to place good orders. Clearly, the printing applications that everyone sees, newspapers are dying every week, so printing is probably a weaker part of the business. At a high level, I hope that provides you with some reasonable color of our stuff.

And to follow-on, now we have very big demand for (inaudible) so it is a fast-growing business, and we have new facilities now in development worldwide solar and how lasers are more suitable for fast duplication of the (inaudible) and samples where we made excellent potential customer sales.

Our next question comes from the line of Avinash Kant with D.A. Davidson.

The first question was when you gave your Q1 guidance at the end of Q4 for EPS of $0.09 to $0.14, were you talking about GAAP numbers or you were talking about just the operating number?

No, we were talking about the GAAP number.

So you had anticipated some of these charges that you are taking in the quarter?

We had anticipated about $600,000 of the inventory. We had not anticipated the bad debt, and we had not anticipated the foreign exchange. We don't forecast foreign exchange.

So could you give the EPS impact to those tax of the inventory correction, the $2.7 million. You gave the overall impact of all three charges were roughly $0.07, I believe. Right?

If you exclude the amount that was forecast, the total inventory impact was $2 million. These are gross amounts. So you'll have to calculate the tax effect of 31% on the EPS. So, inventory net of the amount forecast was $2 million. Foreign exchange was $1.5 million, and the bad debt was $0.4 million. Those amounts were not in the guidance that we issued.

So basically, of the overall charges, you had forecast only $0.7 million in inventory?

Yes.

And the rest of everything was not forecast?

Yes.

And we can take a safe 31% tax rate to get to the EPS impact of that?

Yes.

But the guidance that you are giving now for Q2, what kind of charges have you incorporated in that already?

As I just said to Antonio, we put $600,000 for inventory outside of products sold and take account of the age and potentially other excess quantities that we may encounter, and we have about $400,000 related to bad debt, given the current economic environment. In better economic environments, that bed debt amount will be lower, because we have a very, very strong history of collecting receivables. Nothing is forecast for FX in that guidance.

So, close to a million in charges? The tax rate should be pretty similar?

Yes.

Take in mind the inventory write-down is mainly diodes, but (inaudible) where we use the diodes (inaudible) make run-down, but we will sell these diodes. To decrease inventory of diodes, we're now decreasing temporary production of new diodes only to sell this inventory. So this money will return back.

Also, in terms of business improving, do you have much confidence in the second half recovery? Should we be looking at the manufacturing activity or what should we be looking at to see that there is some confidence in the second half recovery?

I think some of the anecdotal evidence I am giving you with regard to specific applications. I just gave you an example in the solar. I think some of the recovery we're expecting in the micro electronics on the drilling side. The increasing interest in battery welding, we're dealing with numerous different customers on that end market, not just one customer that we had initially developed. The high power lasers in the second half of the year will generally benefit more from the sale of multi-kilowatt lasers for advanced applications. We have several very serious inquiries for lasers in the range of 20 kilowatts to 50 kilowatts and even more. On the manufacturing side, I think as manufacturing activity starts to stabilize and capital expenditure comes back a little bit, we would expect to see that benefit our sales and to benefit it greater than the other laser technologies that we're seeing out there.

One or two housekeeping questions. Did you give the depreciation number?

It's on the cash flow statement.

Okay. I can look it up. And you said the CapEx guidance is going to be less than $16 million?

We are vigorously pursuing different options to make sure we come in at below $15 million. We did have $4.6 million in the first quarter. So that means limiting stuff to $10 million and below. A lot of the first quarter stuff was remaining payments on the buildings in the U.S. and Germany and a couple of the app centers that we were finishing off. Now, the projects that we're looking at are all very, very small, and we can turn them on and turn them off as need be. We're looking at potentially delaying the building of a building in Russia, limiting capital equipment that we need to absolutely essential stuff. So, we think we've got a very good chance of coming in 10% to 20% below $15 million.

10% or 20% below $15 million, perfect. I'll let other people ask questions. Thank you.

Our next question comes from the line of Mark Douglass with Longbow Research.

Can you explain a little bit, if you can, what April has been like relative to March just overall? Are we looking at the similar run rates as what you were coming out of March, what you've been seeing is possibly an uptick in orders? Is that a decent way to interpret it? The sales sequentially have bottomed, but you're seeing more order intake?

So, just in terms of order flow, if you look at it from like December and January, we're actually pretty reasonable. The only really weak month we've had is February. We saw things improve again in March, and that trend has exhibited some stability into April. That's basically where the picture comes out at. So, out of the last five months, we've had only really one bad month of bookings. The other months haven't exhibited growth, let me assure you of that, but they haven't been disastrous.

And we have been reaching out to increase in the May, June order from Japan, because the new financial year has started now with (inaudible). Now, big time we'll try increasing our sales of high-power lasers in China also. Before we did not sell high power lasers to China, but now we've opened doors. There is a lot of the interest in China. So we expect big orders from China.

With those lasers, are we talking 1 to 3 kilowatt type sizes?

1 to 6 probably, and also some of the lower power stuff for China as well should recover a bit.

Looking into the second quarter, are you expecting with your initiatives some continued sequential declines in inventory and receivables?

Yes. We definitely focused on making sure that, first of all, we're reducing purchases of raw materials. Secondly, as Valentin mentioned, we have a significant number of people who are on a shorter working week initially when that's happened in Germany and Russia. The benefit from those in the first quarter, in Germany, for example, in March it was very, very small. It was only like $45,000 in March. The numbers I've just received from Germany for April show that that number should triple in April, so a much better benefit from that shorter working week. So that will reduce capacity, meaning we're not producing an excess quantity of components. Also, we're obviously looking to make sure we're managing our chip production and package diode production to closely match demand. So some of the real benefits on adjusting manufacturing capacity through a shorter working week policy will really only benefit the second quarter and did not benefit the first quarter that much.

So, you should be able to harvest some more working capital in the cash flow statement?

We would hope to do so, yes. Obviously, receivables will go down a little bit because of forecasting at the bottom end of our range, a lower level of sales, but we're trying to ensure that days sales outstanding does not get out of control. One issue we are finding, given the difficult credit environments out there, is that it seems that suppliers and customers are really providing credit to each other in order to generate sales. So we have had demands on us to extend credit limits. We evaluate that on a case-by-case basis. As you can imagine, some of the bigger players in the market are trying to push out their payment term. So that could be a little bit of an issue coming into Q2 and Q3, but it's not a reflection of anything underlying that's wrong with the receivables. It's just that everybody is demanding slightly longer payment terms.

What's the status right now of your CO2 laser? Is it out of the prototype stage and the beta site testing? Do you expect to have it out in time for Munich?

It's fair to say that project is really on hold at the moment, given the extremely poor performance of the CO2 market as a whole, and we want to just focus our resources on the fiber laser development. There would be some additional development work that we're required on CO2. We don't think it warrants to spending that cash at this time, so you should not expect to really see anything from IPG on the CO2 front.

Within CO2, it was a one and half year goal when we did not expect the fast generation for cutting market by fiber laser. But now the situation has changed fully. Now fiber laser in cutting is recognized by everybody, it is growing, our penetration very fast. In this case we have to reconsider our process projection. And so from other sides comes price of CO2 laser (inaudible), last year by special due to Japanese (inaudible), Mitsubishi laser and other, which in fact use much more cheaper CO2 laser, and it changed situation in the market. So we finished the prototypes. We have some prototypes in testing and so on, but up to now our estimation is that it would be difficult competency also with new price situation in the market. So we've now put on hold this project, and are waiting how the situation in the market will change. Now, forecast more and that fiber laser has much more prospective in the cutting markets, major market for CO2, because in welding applications practically CO2 is always (inaudible) use of CO2. In cutting now there is a good chance that fiber laser will soon reach (inaudible) of this market (inaudible).

Okay. You said that was Mitsubishi?

Mitsubishi Fanuc. They are cheap, price per 1 kilowatt power is up to $25,000. So it would be difficult for German manufacturers to compete with such price.

Right. And then final question; any update on the IMRA litigation?

Nothing specific to report at the moment.

There are some improvements, do you want to report Angelo.

There was an office action recently by the Patent and Trademark Office that rejected the independent claim.

Our next question comes from the line of Ajit Pai with Thomas Weisel Partners.

Couple of quick questions; I think the first one is on the 50 kilowatt laser that you shipped; the high-power laser to the large defense contractor. But you mentioned that it's on some kind of lease, so I would love to get what the terms of that lease are, when do you expect to recognize that revenue? And in the meantime when it's on lease, how are you calculating what that lease payment is?

The lease is for an 18-month period and we are recognizing revenue on a monthly basis. The lease starts in March. We're recognizing revenue on a monthly basis and a share of the cost over the same period of time.

So in your cost of goods sold within this quarter you haven't taken the total cost of the laser, you're just amortizing it over that 18-month period?

Correct, because we continue to have title to the laser. The title to the laser will transfer at the end of the lease. The revenue per quarter is about $500,000 per quarter.

So its $500,000 per quarter?

Yes. There is very little in Q1 related to that. The lease was signed towards the end of the quarter.

Got it. So over 18 months that would be six quarters, so that would be about $1.5 million is the total price?

No. More. $500,000 a quarter.

Got it. So it would be $3 million. $3 million would be the total price for the laser?

Yes.

And is there any fee at the end of the 18 months or its just amortized over these 18 months?

It's amortized over those 18 months. One point to note, because lease can be terminated by the lessee if they don't have funds, but we're very comfortable that they are hopefully going to go through the entire term of the lease and actually own the laser at the end of the period.

Okay. But if it's a large defense contractor, it's a fairly small sum of money for them. Right?

It is. Well, everyone tries to save cash flow at the moment and reduce risk. Right?

Right. Got it. And then what made IPG decide to do it this way? Was it a last minute decision or was it preplanned right when you were producing the unit?

No. We've been working on this over the first quarter, so it became pretty effective way for us to monetize the value of that asset that we were depreciating it as a demo unit.

Got it. And then when you're looking at the application that it's being used for, what kind of application is it being used for?

We don't have a clear idea, but as far as the advanced materials processing and directed energy applications.

Got it. And was this laser set up in a similar way to the one that you shipped and recognized revenue I think in the fourth quarter of '07?

No. That's a different type. That was a series of eight lasers combined together to have more than 40 kilowatts of power. That went to the navy. We actually had a positive meeting with them with regard to that system. They were very enthusiastic about it. They claimed to us they've collected a tremendous amount of test data, more so than they've been able to collect in the previous decades testing lasers.

And does that opportunity have the possibility of scaling at some point in '09, '10?

Probably not that soon, it would be towards the end of '011 that navy opportunity, potentially into '12. We would hope to get maybe a couple of smaller orders. But the real scale opportunity will take time to come through.

Got it. And then when you're looking at your credit facility, I mean you drew down about an additional $10 million within this quarter, but given the fact that you're generating so much cash, why would you do that?

Well, we drew that down at the beginning of the quarter when there was a lot of turbulence within the markets and we really wanted to ensure we preserved our liquidity. The interest rate on that borrowing was basically very small. Of course, it had some impact, but the interest rate we got on it was less than 2% for a six-month draw-down.

Got it. And then you talked a little bit, I think, in answer to the previous question about credit terms that you are providing to some of your customers and also I think you mentioned about the $0.4 million that you reserved for bad debt. Could you give us some color as to any patterns that you are observing in terms of geographies or particular markets where you are seeing increased bad debt and where are they asking for these credit facilities?

The payment terms, primarily Europe and the US were seeing extended terms. In Italy and Japan terms have always been quite long already. But we're seeing the North American turns and European turns extend out to like payments of 75 or 90 days. In terms of the bad debt, part of it was related to an Italian customer, who continues to be a customer. We are going to pursue them for the money that they owe us. And part of it relates to Russia as well, about $300,000 relates to Russia. We had started to move towards providing some credit to Russian customers given the vibrancy of that market coming into 2008 and through that year. We're now moving back and we've addressed some of the issues in Russia by moving back to demanding a pre-payment policy of at least 50% and if customers are weaker going to more than 75% prepayment. That could affect the timing of revenues in Russia a little bit, but we think it reduces our risk substantially.

Got it. And then when you look at your high-power applications it was pretty strong in this quarter. What was sort of driving most of the strength?

High-power strength was on the advanced applications, so we did sell a 20 kilowatt laser for some directed energy applications.

And was that to a defense agency?

No. It was a customer who works in the defense field. We sold, actually, to a customer in the US for some research they are doing on welding of the wind turbine towers and also they are actually using it for some research in the nuclear industry as well. We actually saw pretty good activity on other battery welding applications, like 4 kilowatt lasers, good cutting applications. In Italy we sold numerous cutting lasers in Italy. So it was sort of across the board. We also had a good quarter for high-power in Japan, some of which was automotive, some of which was other manufacturing in Japan as well.

Our next question comes from the line of Jiwon Lee with Sidoti & Company. Jiwon Lee - Sidoti & Company: Can we just get back to the defense opportunity from the previous question? The 20 to 50 kilowatt opportunities, how far is this opportunity? When would we know the results of your ultimate win?

In terms of multiple unit orders going to more than 10 or 20 units, in the U.S., we're still probably 18 to 24 months being able to, at this point in time, provide an estimate of when that's going to arise. There is a customer in the European region who we think we could actually get the orders in the last half of this year for delivery in 2010. That customer has actually already taken more than 15 lasers from us that range in power from 1 or 2 kilowatts up to 20 kilowatts. So that customer is probably moving forward a little bit faster and could provide us with meaningful revenue next year. Aside from that, we've got a lot of inquiries from different entities for one and two unit sales for further product development and qualification. So, we'll continue to have the sort of general underlying business quarter-to-quarter, although it can be a little bit volatile. Jiwon Lee - Sidoti & Company: In terms of the pulse laser sales, in your service, is there any market share loss that you have seen or is that just generally the extreme poor condition?

It's the poor conditions. We can tie this back to three or four customers, and they are all IPG customers. They are not buying lasers from anybody else. We continue to have dialog with them and indeed developing other products for them to develop new applications. So, we do not believe that we've lost any of those customers to the competition. We actually think we've got other customers returning to IPG. In Korea, the medical contract we signed was probably a win from a competing supplier.

About 10 OEM customers were in marking applications. (inaudible) from other customers as you still so obviously see. So, we can increase our OEMs network in marking also, but each of them puts as much (inaudible) with us, they did not turn to other suppliers. Jiwon Lee - Sidoti & Company: Finally, you mention in the high power category you have seen some pricing pressure. Can you talk a little bit more about which geography in particular that might be, which market, and what type of lasers you're seeing more aggressive pricing?

It's definitely in the solar materials processing and it's being driven by some very aggressive pricing by one of our solid state competitors. We don't believe that they are actually selling the lasers at a sustainable price. That pricing pressure is coming probably more in the US. We won a couple of orders in the second half of the year in India, a little bit of pricing pressure in India and Germany, obviously. There is less pressure probably in Japan and some of the special applications.

But we can say now that (inaudible) with our major competitors in the high power solid state lasers. Now we (inaudible) according to our estimation of between 4 to 8 times more power than our major competition. Three times more power is practical. We're doing this much.

Our next question comes from the line of C.J. Muse with Barclays Capital.

I guess the first question, Tim, when you look at the revenue guide down about $3 million to $4 million down at the midpoint sequentially is it fair to say that most of that's going to come from material processing?

Yes. And a significant part of it is, again, from the pulsed, which is going to be weak in Q2.

And so if I add up the first half, you're running at about material processing down kind of 30% year-over-year, so I guess the question is given that down-tick year-over-year coupled with the evals and design wins that you have looking into the second half of the year, does that give you confidence that 2Q marks a trough for material processing or is the visibility just not there?

Given through the anecdotal stuff that we're hearing out there and as you point out the new products we're introducing, I think we feel that we're getting to the bottom of this and we certainly hope that the second half of the year in total and revenue is stronger.

Then the OpEx side came in around $12.3 million, excluding FX. You talked about some cost cuts getting to the higher end of the range of $4 million to $6 million. Where do you see OpEx in June and then where should we see that exiting in the December quarter?

We don't really provide that granularity of guidance on that, C.J. In terms of the OpEx, specifically, I've said in the script in about $3.5 million on an annualized basis, spread across the operating expenses and another minimum of $2.5 million on manufacturing capacity through short work weeks. My actual annual estimate is above the $6 million top of the range, but a little bit will depend upon the timing of where that is. So I'm a little uncomfortable with actually specifically saying that SG&A will be down to X-million by December. I think we'll have a better feel for that coming into the end of this quarter.

Okay. I guess in Q1, though, you didn't really see much savings on the OpEx front, so that annualized $3.5 million will be seen in the next three quarters?

I think one of the things that's masking a little bit of this was, Q2 '08 R&D expenses actually increased significantly when we moved more resources into development of all of these new products and accessories. So relatively speaking, our R&D expense in Q1 of '09 when comparing them to Q1 of '08, in terms of a cash benefit, that's hiding some of the expected cost savings that you'll see on operating relative to the end of last year. Is that clear?

Well, I guess for comparison sake, so the $3.5 million savings in OpEx is relative to December Q4 '08?

Yes.

And last question, on the advanced application side of things it looks like you've got some longer term contracts in there, longer visibility given that. Do you see that holding steady through calendar '09? Can that grow? What are your thoughts there?

We are targeting growing advanced applications. Clearly, it grew a lot off the first quarter. That growth rate may be a little bit difficult to sustain, 35%, but you know, and I'm not going to give a growth rate for the year, but we want to grow advanced applications this year. We also want to grow telecom this year. In the advanced applications, again, we're just not sure of the timing when this order is going to come, but we know in Germany that the 50 kilowatt laser, potentially will be placed as an order. The timing is really around final authorization and final funding, but that would provide a very nice benefit to the second half of the year. We know of intent by another customer in Europe who is definitely looking to place orders in the second half of the year. Whether we manage to ship any of those, we're not sure. We actually got a good order for advanced applications. It was a very special 10 kilowatt single-mode laser that is going to be for shipment in Q3. That came in a couple of days ago. That's a very nicely priced laser, really leading edge. There is numerous examples on the advanced side that I can give you that will probably grow that nicely during the year.

Ladies and gentlemen, at this time we have reached the end of our Q&A session. I will now turn the conference back over to Mr. Gapontsev for any closing or additional remarks.

Thank you for your time and questions this morning. We continue to believe that our fiber laser offers customers the chance to create new and improved applications. We (inaudible) have never used our traditional laser where once the norm. We expect to further expand our position in the laser market worldwide during the challenging economy. Our diverse new products will continue to work with our customers' needs in order to improve productivity. Thank you everyone for joining us today. We look forward to speaking with you again following the second quarter. We believe our news would be better than this quarter.

Ladies and gentlemen, that concludes our conference call. Thank you for joining us today.