UPDATE 1-IPG Photonics posts higher profit; shares rise

(Recasts, adds details, share movement)

Aug 5 (Reuters) - IPG Photonics Corp (IPGP.O) reported a 34 percent rise in quarterly profit that beat market estimates as its fiber lasers were used in new industrial manufacturing applications, sending its shares up as much as 7 percent.

Net income for the latest second quarter was $8.6 million, or 19 cents a share, up from $6.4 million, or 14 cents a share, a year earlier.

Revenue for the quarter rose 27 percent to $56.0 million.

Analysts on average had expected IPG to earn 18 cents per share, before special items, on revenue of $54.34 million, according to Reuters Estimates.

The maker of fiber lasers and amplifiers said its fibre lasers used for the materials processing application, which remained its strongest segment for the quarter, increased 42 percent to $42.6 million.

IPG said it expects its materials processing applications to continue to be its primary growth driver in the second half of 2008.

For the third quarter, it expects earnings of 18 cents to 22 cents per share, on revenue of $57 million to $61 million.

Analysts on average were expecting IPG to earn 21 cents a share, on revenue of $59.55 million, for the third quarter.

Shares of the company were up $1.0 at $19.41 in late morning trade Tuesday on Nasdaq. (Reporting by Aftab Ahmed in Bangalore; Editing by Gopakumar Warrier)