IPG Photonics Announces Acquisition of Laser Depth Dynamics

OXFORD, Mass., Dec. 04, 2017 -- IPG Photonics Corporation (NASDAQ:IPGP) today announced that it has acquired Laser Depth Dynamics (LDD), an innovative provider of in-process quality monitoring and control solutions for laser-based welding applications.

LDD’s proprietary inline coherent imaging (ICI) technology is the first industrial solution to enable direct measurement of weld penetration depth with high precision and in real time by adding a near-infrared measurement beam to the welding head. ICI technology offers superior accuracy, speed, and cost-performance, compared with today’s commonly-used indirect measurement techniques such as destructive sectioning. LDD’s solutions also support advanced monitoring features including seam tracking, height following and 3D volume imaging in a single tool. LDD’s flagship imaging systems can be integrated with leading welding head technologies, including IPG’s revolutionary wobble welding heads, which provide unmatched process consistency and ultra-high-power welding heads for deep penetration welding.

“LDD’s weld monitoring systems and accessories significantly enhance IPG’s portfolio of industry-leading beam delivery products and laser welding solutions,” said Felix Stukalin, IPG’s Senior Vice President of North American Operations. “LDD’s ability to monitor weld quality in real time and ensure process consistency is increasingly important within automated production environments. We believe this technology, when combined with IPG’s expanding portfolio of welding solutions, will help drive adoption of laser-based welding within the automotive, medical, consumer products and aerospace industries.”

LDD was founded in 2012 by Paul Webster, CTO, who initially developed ICI technology as a Ph.D. candidate in engineering physics at Queen's University in Ontario, Canada. LDD has 16 employees, and its operation in Kingston, Ontario will become IPG’s new center of product development for weld monitoring solutions. While intending to expand the market for LDD’s products through IPG’s worldwide sales and support channels, IPG will support and honor all existing customer commitments. Terms of the acquisition were not disclosed.

About IPG Photonics Corporation

IPG Photonics Corporation is the world leader in high-power fiber lasers and amplifiers. Founded in 1990, IPG pioneered the development and commercialization of optical fiber-based lasers for use in diverse applications, primarily materials processing. Fiber lasers have revolutionized the industry by delivering superior performance, reliability and usability at a lower total cost of ownership compared with conventional lasers, allowing end users to increase productivity and decrease operating costs. IPG has its headquarters in Oxford, Massachusetts, and has additional plants and offices throughout the world. For more information, please visit www.ipgphotonics.com.

Safe Harbor Statement

Information and statements provided by IPG and its employees, including statements in this press release, that relate to future plans, events or performance are forward-looking statements. These statements involve risks and uncertainties. Any statements in this press release that are not statements of historical fact are forward-looking statements, including, but not limited to, LDD products significantly enhancing IPG’s portfolio beam delivery products and laser welding solutions, the increasing importance of LDD’s ability to monitor weld quality in real time and ensure process consistency, and driving adoption of laser-based welding from the combination of LDD technology and IPG’s portfolio welding solutions. Factors that could cause actual results to differ materially include risks and uncertainties, including risks associated with the strength or weakness of the business conditions in industries and geographic markets that IPG serves, particularly the effect of downturns in the markets IPG serves; uncertainties and adverse changes in the general economic conditions of markets; IPG’s ability to penetrate new applications for fiber lasers and increase market share; the rate of acceptance and penetration of IPG’s products; inability to manage risks associated with international customers and operations; foreign currency fluctuations; high levels of fixed costs from IPG’s vertical integration; the appropriateness of IPG’s manufacturing capacity for the level of demand; competitive factors, including declining average selling prices; the effect of acquisitions and investments; inventory write-downs; asset impairment charges; intellectual property infringement claims and litigation; interruption in supply of key components; manufacturing risks; government regulations and trade sanctions; and other risks identified in IPG’s SEC filings. Readers are encouraged to refer to the risk factors described in IPG’s Annual Report on Form 10-K (filed with the SEC on February 27, 2017) and its periodic reports filed with the SEC, as applicable. Actual results, events and performance may differ materially. Readers are cautioned not to rely on the forward-looking statements, which speak only as of the date hereof. IPG undertakes no obligation to update the forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Contact

James Hillier
Vice President of Investor Relations
IPG Photonics Corporation
508-373-1467
[email protected]