Mark Gitin: Thanks, Eugene. Good morning, everyone. Third quarter revenue was at the top end of our expectations. Flat sequentially and up 11% year over year excluding divestitures. There were a number of positive factors that drove the results this quarter. Stronger demand in battery production driven by e-mobility and stationary storage supported higher sales in welding. With our adjustable mode beam laser, weld monitoring, and beam delivery solutions, we continue to win orders with some of the largest ba ...

Financial Data and Key Metrics Changes - Third quarter revenue was $251 million, flat sequentially and up 11% year-over-year, excluding divestitures [4][17] - GAAP gross margin was 39.5%, and adjusted gross margin was 39.8%, above guidance due to improved manufacturing cost absorption [17][18] - Adjusted earnings per diluted share was $0.35, at the top end of guidance [18] - Cash, cash equivalents, and short-term investments totaled $870 million, with no debt [19] Business Line Data and Key Metrics Changes - Revenue from materials processing increased 6% year-over-year, driven by higher sales in welding, additive manufacturing, cleaning, and micro-machining [15] - Revenue from other applications increased, driven by higher sales in medical and advanced applications [15] - Emerging growth products accounted for 52% of sales in the third quarter, down from 54% in the prior quarter [15] Market Data and Key Metrics Changes - Sales in North America decreased by 16% sequentially but were up 8% year-over-year [16] - Sales in Europe increased 11% sequentially and 4% year-over-year, driven by higher sales in welding, cutting, and additive manufacturing [16] - Revenue in Asia increased 5% sequentially and 15% year-over-year, driven by higher welding sales in China, Japan, and Korea [16] Company Strategy and Development Direction - The company is focused on converting incumbent processes to laser-based solutions, expanding existing use cases, and entering new high-growth applications [8][9] - The strategy includes strengthening core industrial applications and moving up the value chain with laser applications capabilities [9][10] - The company is investing in medical, micro-machining, and directed energy verticals, with significant growth opportunities identified [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the demand environment, noting improvements in leading indicators such as PMIs [6][23] - The company is transforming to create a disciplined, high-performance culture to support growth opportunities [6][7] - Management highlighted the importance of innovation and execution in driving progress across key growth initiatives [7][8] Other Important Information - The company received FDA clearance for the next generation of Thulium medical laser systems, with shipments expected to start by the end of the fourth quarter [5][11] - The Crossbow directed energy solution is gaining interest, with plans for a new production facility in Huntsville, Alabama [12][14] Q&A Session Summary Question: Outlook for Q4 and factors affecting guidance - Management noted strong global performance and improvements in PMIs, contributing to a cautiously optimistic outlook for Q4 [25][26] Question: Specifics on e-mobility-related welding revenue - The company is gaining share globally, with strength noted in Asia and Europe, particularly in battery applications [28] Question: Gross margin outlook and tariff impact - Management indicated that gross margin was strong in Q3, with expectations for similar impacts from tariffs in Q4 [29][30] Question: Crossbow opportunity and partnerships - The company is excited about Crossbow, with interest from both military and civilian sectors, and is engaging with multiple potential customers [34][35] Question: Significance of new urology system launch - The new urology product is expected to significantly grow revenue in the medical market, with a roadmap for additional products [37][39]