IIVI
#I think <UNK> would add ---+ or maybe I will ---+ that some of the products we had in prior quarters that were losing us money we are not shipping anymore.
We priced out of that business.
So I don't want you to miss, you know, the actions we've taken should benefit us going forward.
This is Fran.
I'll make a stab at this, and <UNK> can add to it.
I think the transition of new assembly line lasers from CO2 to fiber has crossed the 50%/50% point now and our business we've set up in the fiber laser side of it our components are good.
Sales there are very good.
As I think <UNK> mentioned in his script, or I mentioned in mine, there's softening in China.
That was an important place for us to be working, and certainly they started very aggressively.
And now they've slowed down as their economy is slowing.
But we expect that to rebound.
The overall trend by customers ---+ whether they are going to buy fiber or CO2 ---+ it's hard for us to see or to hear.
Our customers ---+ some of them do both.
So when we hear from them, we are mostly talking about CO2, because that's not an area that we are building a product that competes with our customers.
On the fiber laser side of it, we also see how that business is growing; but it is really dominated by one company.
And you can watch that company ---+ they are doing well, but our businesses that are in that space are doing very well also.
Our HIGHYAG unit, where we make cutting heads ---+ we've come out with new laser light cables, and QVH connectors, and improved cutting heads, all to be in that one-micron space.
So that space is, I think, fine, with the exception of China being a little slower.
This is Fran.
I was making the comment relative to the overall market, the overall business out there.
I think if you said that it's a 6,000 high power CO2 plus fiber units go to the field each year, it would be 60%/40% or maybe something like that ---+ fiber laser the bigger number.
The number we usually give is of our total Company sales.
We are in the 15%, 17% of our total sales are toward the one-micron business.
Some of ours are very much the passive components that go into people's fiber lasers or the semiconductor lasers that go into them that we sell to those manufacturers.
Okay.
To an extent, yes.
Remember, we are down in the food chain.
The OEMs are building CO2 laser machines or fiber laser machines.
We supply to both of those OEM sets.
So our business is about a half a step behind.
So whether a customer, an ultimate user ---+ pick an auto company or a job shop ---+ where they are going to make their buy-in, they are not really in our ear talking about it.
They are talking about it to the OEMs and the aftermarket system builders.
So ours is a half-step back.
And we have a reasonable feeling, but not an exact feeling.
This is worldwide we are talking about.
We work in the telecom network, in the long-haul, in the metro.
We are also participating through our customers into the data center itself.
And as I mentioned in my prepared comments, some of the Web 2.0 customers that are operating data centers and running them are also beginning to talk to us as well about our capabilities.
I would say that we have some activities with many of the large data center customers who are at least in contact with us about our capabilities, our product portfolios, and our roadmaps.
But our primary channel to that market is through our customers today.
This is Fran.
Nice to meet you, <UNK>.
The change in laser solutions from fourth quarter to first is rather usual for us.
The CO2 laser business tends to slow in the first and second quarter and then improve quite nicely in the third and fourth.
So that would be mostly driven by the CO2 business being down.
It really has to do with the aftermarket ---+ the running of the lasers around the world and how that replacement parts business happens ---+ slows down in late summer as the Europeans are on holiday, and does okay and September, October, November ---+ it shuts down again in December and then runs pretty good in the entire second half, January to June.
The only thing I would comment ---+ we see our business with the components that we supply to fiber laser, or disk laser people, or even direct diode laser people up ---+ no doubt about it.
But for the end product, the end lasers themselves, we are selling to those people that are selling them into the market.
So ours is secondhand, but it is sure growing.
Thank you, everyone, for attending.
We expect another year of good progress here in FY16.
We're happy with many of the new products we've been out with, and <UNK> mentioned many of them, and they are both in all areas ---+ all three of our segments.
We haven't gone over those, but we are working hard on that.
And as <UNK> <UNK> said, our intensity to improve margins remains unaffected.
We are keeping working on it.
And our reductions in costs that we have taken during this year, I think, set us up to have a very good year.
Thanks for attending.
Goodbye.
