2017 was an outstanding year for IPG. Having achieved $1 billion in annual revenue for the first time in 2016, we grew revenue by more than $400 million in 2017 to $1.4 billion. The list of billion-dollar high tech companies that grow annual sales by 40% is very short. And we are pleased to have delivered even stronger growth in backlog, operating earnings and free cash flow. We sold nearly 80% more optical power in 2017 increasing production faster than revenue growth and fulfilling orders with no meaningful change in lead time. This achievement reflects excellent planning and manufacturing execution, for which I thank all of IPG’s employees.
We are very pleased to have delivered our strongest annual growth in six years, a direct result of our scale advantages and our unique business model combining a vertically integrated manufacturing operation with broad-based technology and process abilities. This business model enables us to rapidly increase production, reduce costs and deliver innovation. Looking ahead, we see excellent opportunities to leverage these advantages within both our core markets and new applications, making our fiber laser technology the tool of choice in mass production.
IPG Photonics Corporation
