Financial Data and Key Metrics Changes - Revenue for Q2 fiscal 2025 reached a record $1.43 billion, increasing approximately 6% sequentially and 27% year-over-year [7][25] - Non-GAAP gross margin improved to 38.2%, up 146 basis points sequentially and 363 basis points year-over-year [9][26] - Non-GAAP EPS grew over 40% sequentially and more than tripled year-over-year, reaching $0.95 [10][28] Business Line Data and Key Metrics Changes - Data center and communications market revenue increased 6% sequentially and 58% year-over-year, driven by strong AI-related datacom transceiver growth [11] - Telecom revenue grew 16% sequentially and 11% year-over-year, marking the second consecutive quarter of sequential growth [17] - Laser segment revenue increased 8% sequentially and 6% year-over-year, primarily due to demand for Excimer annealing lasers in display capital equipment [25] Market Data and Key Metrics Changes - Datacom revenue achieved record Q2 growth of 79% year-over-year, driven by AI data center demand [11][24] - Revenue from industrial-related applications increased 7% sequentially but remained flat year-over-year [18] - Display capital equipment saw growth due to increased OLED adoption in larger devices, contributing to demand for Excimer lasers [19][95] Company Strategy and Development Direction - The company aims for a durable gross margin of over 40% through pricing optimization and product cost improvements [8][9] - Strategic portfolio optimization is underway, including divesting non-strategic product lines and assets [22] - The company is investing in new technologies, including a new Optical Circuit Switch platform, which is expected to expand the addressable market [16] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the telecom market, expecting continued sequential growth [36][39] - The company anticipates fiscal 2025 to be a strong growth year despite near-term softness in industrial markets [23] - Management highlighted the importance of supply chain resiliency and adaptability in the current market environment [84] Other Important Information - The company paid down $132 million in debt during the quarter, strengthening its balance sheet [24] - Guidance for Q3 fiscal 2025 includes expected revenue between $1.39 billion and $1.48 billion and non-GAAP gross margin between 37% and 39% [29][30] Q&A Session Summary Question: Thoughts on the telecom market and sustainability of improvement - Management moved from cautious to cautiously optimistic regarding telecom, expecting continued sequential growth [36][37] Question: Addressable opportunity for the OCS platform - Initial revenue expected in calendar 2025, with more details to be shared at the Investor Day [46] Question: Co-packaged optics (CPO) impact on business - CPO is expected to drive growth in optical networking and data centers, with Coherent well-positioned to benefit [55][56] Question: Customer concentration and AI consumption - Revenue in datacom is well diversified across multiple hyperscaler customers [61] Question: Market landscape for VCSELs, EMLs, and Silicon photonics - Coherent has a broad portfolio of ingredient technologies and will invest where it provides a competitive advantage [67][70] Question: Gross margin outlook and initiatives - Gross margin improvements driven by volume, cost reductions, and pricing optimization [76][77] Question: Impact of tariffs on business - Current quarter results are not expected to be significantly impacted by tariffs, with a resilient supply chain in place [82][83] Question: Prospects for the laser and materials business - Cautious outlook for industrial-related markets, with some growth in display capital equipment and semi-cap equipment [94][101] Question: Update on 200 gig per lane VCSEL - Progress continues on engineering efforts for 200 gig VCSELs, with a robust roadmap for various technologies [104] Question: OpEx expectations for the upcoming quarters - R&D spending is expected to increase, while SG&A expenses are being managed for efficiency [120][121]

Coherent (COHR) reported $1.43 billion in revenue for the quarter ended December 2024, representing a year-over-year increase of 26.8%. EPS of $0.95 for the same period compares to $0.36 a year ago.The reported revenue represents a surprise of +4.32% over the Zacks Consensus Estimate of $1.38 billion. With the consensus EPS estimate being $0.70, the EPS surprise was +35.71%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street ...

INVESTOR PRESENTATION Second Quarter Fiscal 2025 February 2025 Copyright 2025, Coherent. All rights reserved. 1 FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements relating to future events and expectations, including our expectations regarding (i) the growth, megatrends, and value proposition in the markets we serve including industrial, communications, electronics, and instrumentation; and (ii) our estimates and projections for our business outlook for the third quarter of fis ...

Coherent (COHR) came out with quarterly earnings of $0.95 per share, beating the Zacks Consensus Estimate of $0.70 per share. This compares to earnings of $0.36 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 35.71%. A quarter ago, it was expected that this Laser and optics manufacturer would post earnings of $0.63 per share when it actually produced earnings of $0.74, delivering a surprise of 17.46%.Over the last four quarter ...

Financial Performance - Total revenues for the three months ended December 31, 2024 increased 27% to $1,435 million, compared to $1,131 million for the same period last fiscal year [112]. - Revenues for the six months ended December 31, 2024 increased 27% to $2,783 million, compared to $2,185 million for the same period last fiscal year [115]. - Networking revenues increased 56% year-over-year due to strong AI datacenter demand and recovery in telecom [114]. - Lasers revenue increased 6% year-over-year, reflecting strong demand in display capital equipment and semiconductor capital equipment [114]. - Materials revenues decreased 4% year-over-year, primarily due to weak automotive end market demand [114]. - Networking segment revenues for the three months ended December 31, 2024 increased 56% to $816 million, compared to $524 million for the same period last fiscal year [127]. - Materials segment revenues for the three months ended December 31, 2024 decreased 4% to $243 million, compared to $254 million for the same period last fiscal year [129]. - Lasers segment revenues for the three months ended December 31, 2024 increased 6% to $375 million, compared to $354 million for the same period last fiscal year [132]. Profitability and Expenses - Gross margin for the three months ended December 31, 2024 was $509 million, or 36% of total revenues, an increase of 452 basis points from 31% in the same period last fiscal year [116]. - Research and development expenses for the three months ended December 31, 2024 were $144 million, or 10% of revenues, compared to $111 million, or 10% of revenues, for the same period last fiscal year [117]. - SG&A expenses for the three months ended December 31, 2024 were $221 million, or 15% of revenues, down from $209 million, or 18% of revenues for the same period last fiscal year [118]. - Segment profit for the Networking segment for the three months ended December 31, 2024 increased 61% to $153 million, compared to $95 million for the same period last fiscal year [128]. Restructuring and Synergies - The restructuring plan approved on May 23, 2023 resulted in charges of $8 million for the three months ended December 31, 2024, primarily for site move costs and employee termination costs [107]. - The company achieved its previously announced $250 million synergy plan, which includes savings from supply chain management and operational efficiencies [108]. - Restructuring charges for the three and six months ended December 31, 2024 were $8 million and $32 million, respectively, compared to a net recovery of $2 million and net charges of $1 million for the same periods in 2023 [119]. - The company expects restructuring actions to be substantially completed by the end of fiscal 2025 [107]. Cash Flow and Debt - Net cash provided by operating activities was $340 million for the six months ended December 31, 2024, compared to $266 million for the same period last fiscal year [137]. - Net cash used in investing activities was $172 million for the six months ended December 31, 2024, compared to $156 million for the same period last fiscal year [138]. - Net cash used in financing activities was $266 million for the six months ended December 31, 2024, compared to net cash provided of $859 million for the same period last fiscal year [139]. - As of December 31, 2024, total debt obligations amounted to $3.86 billion, down from $4.1 billion as of June 30, 2024 [142]. - The company made payments of $248 million for the Term Facilities during the six months ended December 31, 2024, including voluntary payments of $215 million [142]. - The company received $1.0 billion in exchange for 25% equity of Silicon Carbide LLC, aimed at funding future capital expansion [143]. - As of December 31, 2024, the company held approximately $783 million of cash, cash equivalents, and restricted cash outside the United States [145]. - The company believes existing cash, cash flow from operations, and available borrowing capacity will be sufficient to fund its needs for at least the next twelve months [144]. Interest and Taxation - Interest and other, net for the three months ended December 31, 2024 was an expense of $8 million, a decrease of $61 million from $69 million for the same period last fiscal year [121]. - The effective income tax rate for the year-to-date at December 31, 2024 was 14%, down from 24% for the same period in 2023 [122]. - The company incurred interest expenses of $52 million and $106 million for the three and six months ended December 31, 2024, respectively [141]. - The interest rate cap reduced interest expense by $7 million and $21 million for the three and six months ended December 31, 2024, respectively [141]. - A change in interest rates of 100 basis points on variable rate borrowings would have resulted in additional interest expense of $8 million and $16 million for the three and six months ended December 31, 2024, respectively [148]. Risk Management - The company paused its balance sheet hedging program indefinitely as of September 30, 2024, while continuing to analyze foreign exchange risks [147].

Q2 REVENUE OF $1.43B, INCREASED 27% Y/YQ2 GAAP GROSS MARGIN OF 35.5%, INCREASED 452 bps Y/Y; Q2 NON-GAAP GROSS MARGIN OF 38.2%, INCREASED 363 bps Y/YQ2 GAAP EPS OF $0.44, IMPROVED $0.82 Y/Y; Q2 NON-GAAP EPS OF $0.95, IMPROVED $0.69 Y/Y SAXONBURG, Pa., Feb. 05, 2025 (GLOBE NEWSWIRE) -- Coherent Corp. (NYSE: COHR) (“Coherent,” “We,” or the “Company”), a global leader in materials, networking, and lasers, announced financial results today for its fiscal second quarter ended December 31, 2024. Revenue for the s ...

COHERENT CORP. REPORTS SECOND QUARTER FISCAL 2025 RESULTS SAXONBURG, PA, February 5, 2025 (GLOBE NEWSWIRE) – Coherent Corp. (NYSE: COHR) ("Coherent," "We," or the "Company"), a global leader in materials, networking, and lasers, announced financial results today for its fiscal second quarter ended December 31, 2024. Revenue for the second quarter of fiscal 2025 was $1.43 billion, with GAAP gross margin of 35.5% and GAAP net income of $0.44 per diluted share. On a non-GAAP basis, gross margin was 38.2% with ...

In its upcoming report, Coherent (COHR) is predicted by Wall Street analysts to post quarterly earnings of $0.70 per share, reflecting an increase of 94.4% compared to the same period last year. Revenues are forecasted to be $1.38 billion, representing a year-over-year increase of 21.6%.The current level reflects a downward revision of 0.4% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial pr ...

Core Viewpoint - Coherent (COHR) is anticipated to report a year-over-year increase in earnings driven by higher revenues, with the actual results being a significant factor influencing its near-term stock price [1][2]. Financial Expectations - The upcoming earnings report is expected to reveal quarterly earnings of $0.70 per share, reflecting a year-over-year increase of +94.4% [3]. - Revenues are projected to reach $1.38 billion, which is a 21.6% increase compared to the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.44% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Coherent is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +7.48% [10][11]. Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of a potential earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy) [8]. - Coherent currently holds a Zacks Rank of 1, suggesting a high likelihood of exceeding the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Coherent was expected to post earnings of $0.63 per share but delivered $0.74, resulting in a surprise of +17.46% [12]. - Over the past four quarters, Coherent has consistently beaten consensus EPS estimates [13]. Industry Comparison - Spotify (SPOT), another player in the Zacks Technology Services industry, is expected to report earnings per share of $1.92 for the same quarter, indicating a year-over-year change of +592.3% [17]. - Spotify's consensus EPS estimate has been revised down by 1.6% over the last 30 days, leading to a negative Earnings ESP of -16.45% [18].

PITTSBURGH, Jan. 28, 2025 (GLOBE NEWSWIRE) -- Coherent Corp. (NYSE: COHR), a leader in industrial laser optics introduces a new high-power F-theta lens for additive manufacturing, EV battery welding and laser cleaning. The lens design provides optimal optical performance for increased processing speeds. The demand for remote processing using F-theta lenses continues to grow rapidly across additive manufacturing, EV battery and laser cleaning markets. The new lens operates from deep UV to IR wavelengths prov ...