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The term laser is an acronym for:
Light Amplification by Stimulated Emission of Radiation.
Nd:YAG (neodymium-doped yttrium aluminium garnet) lasers are optically pumped using a flashtube or laser diodes and emit light with a wavelength of 1,064 nm (infrared). Pulsed Nd:YAG lasers operate in the so-called Q-switching mode where an optical switch is in the laser cavity. This switch opens when the neodymium ion population inversion reaches a maximum.
Lasers cut by focusing the laser output on or near the surface of the cut material. The laser burns away a portion of material when it cuts - the laser kerf.