Ladies and gentlemen, thank you for standing by, and welcome to the GSI Group 2013 Fourth Quarter Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. (Operator Instructions) Thank you. I will now like to turn the call over to Robert Buckley. You may begin.

Thank you. Good afternoon and welcome to GSI Group's fourth quarter and year ending 2013 earnings conference call. I am Robert Buckley, Chief Financial Officer of GSI Group. If you have not received a copy of our earnings press release, you may get one from the Investor Relations section of our Web-site at www.gsig.com. Please note this call is being webcast live and will be archived on our website. Before we begin, we need to remind everyone of the Safe Harbor for forward-looking statements that we’ve outlined in our earnings press release issued earlier this afternoon and also those in our SEC filings. We may make some comments today both in our prepared remarks and our responses to questions that may include forward-looking statements. Those involve inherent assumptions with known and unknown risks and other factors that could cause our future results to differ materially from our current expectations. Any forward-looking statements made today represent our view only as of today. We disclaim any obligation to update forward-looking statements in the future even if our estimates change. So you should not rely on any of today’s forward-looking statements as representing our views as of any date after today. During this call, we'll be referring to certain non-GAAP financial measures. A reconciliation of such non-GAAP financial measures to the most directly comparable GAAP measures is available as an attachment to our earnings press release. To the extent that we use non-GAAP financial measures during this call that are not reconciled to GAAP measures in the earnings press release, we will provide reconciliations promptly on the Investor Relations section of our website. I’m now pleased to introduce Chief Executive Officer of GSI Group, John Roush.

Thank you, Robert. Good afternoon everybody and welcome to our call. I'm pleased to report that GSI finished 2013 on a strong note. So I'd like to take the opportunity to reflect on the progress we made as a Company during the year. In my view, we accomplished a number of very important things that move us closer to our strategic goals and position us for future success. We built a much stronger and more capable management team across GSI, continue to shift the Company towards a more attractive mix of end markets and applications, and we've improved our capabilities in terms of our underlying ability to drive profitable organic growth in our served markets. In addition, we generated significant free cash flow which strengthened our balance sheet and enabled us to ultimately execute on the JADAK acquisition, which we did announce several weeks ago. I would also point out that we accomplished these things in the context of a year where we delivered solid financial results that continued to improve as we move through the year. So at this point, I'd like to give you a brief summary of our financial results. In the fourth quarter of 2013, we delivered revenue of $87.7 million and adjusted EBITDA of $13.7 million. Both figures were within our previously communicated guidance ranges. Q4 non-GAAP EPS was $0.18, double the level of Q4 2012. On a full-year basis, we delivered revenue of $342 million, which was up 26% versus 2012 and up 2% on an organic basis. Full year adjusted EBITDA was $51 million, up 23% versus a year ago. Non-GAAP EPS was $0.63 for the year, up 40% from 2012. And we generated $49 million in operating cash flow during the year and ended 2013 with just $10.5 million of net debt,…

Thank you, John. During the fourth quarter of 2013, GSI generated revenue of $87.7 million, an increase of 32% from $66.4 million in the fourth quarter of 2012. The NDS acquisition accounted for roughly 28% of the 32% revenue increase year-over-year. Changes in foreign exchange rates adversely impacted revenue causing a roughly 0.4% decrease in revenue. Excluding the impact of the NDS acquisition and changes in foreign exchange rate, the Company's revenue increased 4.3% compared to the fourth quarter of 2012. Turning to our segments, sales of Laser Products for the fourth quarter of 2013 increased nearly 3% to $48.8 million compared to $47.5 million one year ago. Our laser-based revenue experienced year-over-year sales growth of 3% in the fourth quarter of 2013 compared to – despite a 25% reduction in sales in customers in the scientific market. Excluding the scientific laser business, the sales growth would have been approximately 8%. The majority of this segment's growth was driven by strong demand and greater market penetration of the laser scanning solutions products and stronger market demand of sealed CO2 laser products. Sales of Medical Technologies for the fourth quarter of 2013 increased 250% to $25 million compared to $7.1 million one year ago. The NDS acquisition added approximately $18.7 million this quarter. Sales of visualization solutions, sold under the NDS and Dome brand names, were substantially above third quarter levels as original equipment manufacturers and hospital customers increased their order rates consistent with the normal market seasonality. Sales of Precision Motion for the fourth quarter 2013 increased 19% to $14.1 million from $11.8 million in 2012. The majority of the segment's growth was driven by a recovery in customer capital spending in the manufacturing sector and new program wins in advanced industrial markets such as industrial automation and turbo generator…

(Operator Instructions) Your first question comes from the line of Lee Jagoda with CJS Securities.

So looking at your EBITDA guidance for the upcoming year, it would actually imply a reduction versus your original expectations, and at the bottom, essentially no year-over-year growth. Is there something you're seeing in the various end markets that caused the change versus the pretty recent guidance you gave?

No. The way to think about the low end part of the guidance is just factoring in some sort of macroeconomic environment change that we don't see today. So, for the most part I would say, we really haven't changed our guidance, that we still believe that we'll have that 8% to 10% coming from the core business, and then adding in some JADAK business which could be in the range of $7.5 million, but there's some plus and minus to that as well. But overall, we are not seeing anything different than what we've communicated back in January and February.

Lee, it's John. I mean I think that you do have to look at the bottom end of the range and say, we're tracking hospital CapEx data, we're tracking PMIs around the world, we look at kind of seven different Purchasing Manager Industrial Indexes every single month. Five of the seven have trended negative the last two months. Does that continue or does that normalize? And so, there's some caution at the bottom end there.

So just to be clear, if I take 8% growth on what you just did, that would get me to roughly $55 million, which would only imply roughly $3 million from JADAK, yet you say in the release there's $9 million to $10 million from JADAK – $7.5 million excuse me.

$7.5 million, so $55 million plus $7 million is $62 million, that's the top end of the range.

Right, but that's the low end of the previous range. That's what I'm trying to triangulate. We could follow it offline also.

Don't forget when I gave the low end – when I gave that range it was off of the $50 million number, so we beat $5 million of what we originally expected at year-end. So asking for 8% growth off of $51 million is…

Versus $50 million. I mean the sum of what he's talking about is that.

Got you. Just switching gears to JADAK, the $40 million contribution for three quarters, sort of appears to be higher than the $50 million annual run rate you gave on the last call. Is there seasonality in that business or is it sort of an upward revision to the forecast?

There is a little bit of seasonality with the business. There's a little bit of…

I would just say two things, (A) seasonality, but (B) it's a growing business, okay. So it's experiencing an upward trend in all of its demand, so as you kind of move through the year, even if it wasn't seasonal, it's got that. It's both.

Okay, thanks very much.

Your next question comes from the line of Jim Richiutti with Needham & Company. Jim Richiutti - Needham & Company: A question regarding the growth rate for the year, Robert, I think I heard you correctly that ex the Continuum business, the continuing revenues were $317 million last year.

Correct, for 2013, it will be $317 million by backing out $25 million of Continuum revenue. Jim Richiutti - Needham & Company: Got it. Okay, so looking at the guidance ex JADAK, it seems like you're looking for a 4% to 7% or so growth, and you highlighted a few areas that it looks like you're assuming a little pickup in thermal printers, a little stronger growth rate there, the NDS business appears to be have easier comps. So I'm wondering, what areas are you anticipating maybe slower growth?

If you look at the first quarter as a comparable, for the most part it's relatively low organic growth, but that's all being driven by NDS. We are facing a tough year-over-year comparison as a result of that sourcing event. So the businesses are really growing at a high single-digit rate in the first quarter if you were to take out the impact of NDS. Overall, I would say the general tone of the business is that they are performing somewhere around that range. As you get throughout the year, there's some difficult comparisons here and there as you get into different issues around recoveries in microelectronics markets and whatnot that may or may not repeat, but I wouldn't expect any of our businesses to really substantially slow down. I think the vast majority of it is really linked to some difficult comparisons with NDS, pretty significant in the first quarter. You don't really see that much growth in the second quarter and then it gets to materialize in the back half of the year.

So if you look across our segments and then even if you go into the product line level down below the segments, and you kind of take a look at our view of the full year, you're getting some growth contribution from just about everywhere. It just is varying, nobody is blowing the doors off necessarily, but everybody is, every product line is contributing some growth, and I'll just reiterate what Robert said, you have this comparison problem early in the year for NDS and other than that there is a contribution everywhere. I would say though I'm not sure about the 4% to 7%. You had said, Jim, at the top of your comments, 4% to 7% excluding NDS, and I think you might want to…

We kind of guided low single-digit type of growth before…

On the base.

On that base, and that's really kind of factoring in the NDS business, and that's about it. Jim Richiutti - Needham & Company: Okay, that's helpful. Thanks a lot.

There are currently no further phone questions. I'll turn the call back over to Mr. Roush for any closing remarks.

Thank you, operator. So as we move forward in 2014, it's clear to me that GSI has made tremendous progress as an organization. We've now built an outstanding team, a more attractive portfolio and solid execution capabilities, on which we can drive a greater level of sustainable profitable growth. Our agenda for 2014 is very clear. Following the closing of the JADAK transaction, we'll implement our integration program for the business. The GSI Medical team has already been in detailed contact with the JADAK management team to begin the process or at least planning the process of leveraging our common capabilities to serve customers on both sides of the medical business. We'll continue through the year to invest in the attractive opportunity that we see within our Medical, Laser and Precision Motion segments. As I mentioned earlier on the operational front, we will build on our initial successes and deploy both lean principles and strategic sourcing across our production sites. Just to reiterate what I said earlier, we aim to complete one major kaizen event per month this year along with ongoing strategic sourcing initiatives across the Company to better leverage that $150 million direct material spend. Economic uncertainty remains a part of the landscape in which we operate. I don't expect that to change anytime soon. Over the last six months of 2013, we did experience a more stable, and I would say modestly positive, economic trend. Our 2014 assumptions call for that trend to continue, but that's far from certain. We monitor all those economic indicators. As I said, most are positive but not convincingly so. So we're a little bit cautiously optimistic about the economy and I think the lower end of the guidance range reflects that posture. But we are on track for a guidance range of $360 million to $370 million on sales and $58 million to $62 million of adjusted EBITDA. Irrespective of the market, we have strong capabilities, a committed management team and a hunger for success. I'm confident we can navigate successfully towards our strategic and financial goals and we all remain very excited about the Company's future and the value we can achieve here over time. So I, on behalf of Robert, myself, the Board, the senior management, we all appreciate your interest in GSI and participation in today's call. I look forward to joining all of you in early May on our first quarter earnings call. Thank you very much. Today's call is now adjourned.

Again, thank you for your participation. This concludes today's conference. You may now disconnect.