Financial Data and Key Metrics Changes - Fiscal Q3 revenue reached a record $1,500 million, increasing approximately 4% sequentially and 24% year over year [8][23] - Non-GAAP gross margin improved to 38.5%, up 30 basis points sequentially and 490 basis points year over year [25][26] - Non-GAAP EPS increased 2.4 times year over year [9] Business Line Data and Key Metrics Changes - Networking revenue increased 10% sequentially and 45% year over year, driven by strong AI data center demand [23] - Lasers segment revenue decreased 3% sequentially but increased 4% year over year, primarily due to demand for excimer annealing lasers [24] - Materials segment revenue decreased 3% sequentially and 1% year over year, attributed to softness in the consumer electronics market [24] Market Data and Key Metrics Changes - Data center revenue grew 11% sequentially and 54% year over year, reflecting strong AI data center demand [9][15] - Telecom revenue increased 2% sequentially and 21% year over year, with growth driven by data center interconnect and traditional transport markets [15][17] - Industrial-related markets saw a stable aggregate revenue with a decrease of 2% sequentially and an increase of 1% year over year [17] Company Strategy and Development Direction - The company is focusing on strategic portfolio optimization, including exiting non-core product lines and streamlining assets [18][19] - Continued investment in core growth areas is emphasized to accelerate shareholder value creation [20] - The company plans to introduce a six-inch indium phosphide platform to enhance production capacity and reduce costs [14] Management's Comments on Operating Environment and Future Outlook - Management expressed a cautious near-term view on end market demand due to macroeconomic uncertainty but remains optimistic about fiscal 2025 being a strong growth year [22][30] - The company is well-positioned for long-term growth, with a focus on innovation and new product introductions [22][30] Other Important Information - The company paid down $136 million in debt during the quarter, reducing debt leverage to 2.1 times [28] - Guidance for Q4 revenue is expected to be between $1,425 million and $1,575 million, with non-GAAP gross margin projected between 37% and 39% [28][29] Q&A Session Summary Question: Insights on product announcements and their revenue impact - Management highlighted significant product announcements at OFC, including three versions of a 1.6T transceiver, with revenue expected to ramp in the current calendar year [34][37] Question: Impact of tariffs and manufacturing flexibility - Management noted that the current tariff environment is not expected to significantly impact financials, emphasizing a resilient and adaptable supply chain with over 60 production facilities worldwide [40][42] Question: Trends in 800G demand and inventory levels - Demand for 800G remains strong, with no significant inventory issues observed as customers deploy transceivers quickly after shipment [47][49] Question: Mix of technologies in data center revenue - Over half of transceiver revenue comes from EML-based products, with a growing portion from silicon photonics, countering perceptions of over-dependence on VCSELs [52][54] Question: Guidance for segment performance - Management expects data center and communications segments to show sequential growth, while industrial-related markets may see a decline due to macro uncertainties [60] Question: Silicon carbide business exit and revenue impact - The discontinued silicon carbide devices and modules were largely pre-revenue, with ongoing focus on substrate and epi production where demand is strong [65][66] Question: Factors affecting gross margin in Q4 - Mix is expected to be the primary driver affecting gross margin, with ongoing efforts in cost reductions and pricing optimization [78][79]

Financial Data and Key Metrics Changes - The company's fiscal Q3 revenue reached a record $1.5 billion, representing a 4% sequential increase and a 24% year-over-year increase, driven by strong AI data center and telecom revenue growth [5][21]. - Non-GAAP gross margin improved to 38.5%, up 30 basis points sequentially and 490 basis points year-over-year [22][23]. - Non-GAAP EPS increased 2.4 times year-over-year, reflecting strong revenue growth and gross margin expansion [6]. Business Line Data and Key Metrics Changes - Networking revenue increased by 10% sequentially and 45% year-over-year, primarily due to strong AI data center demand [21]. - Lasers segment revenue decreased by 3% sequentially but increased by 4% year-over-year, driven by demand for excimer annealing lasers [22]. - Materials segment revenue decreased by 3% sequentially and 1% year-over-year, attributed to softness in the consumer electronics market [22]. Market Data and Key Metrics Changes - Data center revenue grew by 11% sequentially and 54% year-over-year, achieving record Q3 revenue due to strong AI data center demand [6][13]. - Telecom revenue increased by 2% sequentially and 21% year-over-year, with growth driven by data center interconnect and improvements in the traditional transport market [13][21]. - Industrial-related markets saw a stable aggregate revenue with a 2% sequential decrease and a 1% year-over-year increase [14]. Company Strategy and Development Direction - The company is focusing on strategic portfolio optimization, including exiting non-core product lines and streamlining its asset base [16][17]. - Continued investment in core growth areas is emphasized to accelerate long-term shareholder value creation [18]. - The company is also expanding its indium phosphide capacity to meet rising demand for optical networking solutions [11][12]. Management's Comments on Operating Environment and Future Outlook - Management expressed a cautious near-term view on end market demand due to macroeconomic uncertainty but remains optimistic about fiscal 2025 being a strong growth year [20]. - The company is well-positioned for long-term growth, with a focus on innovation and new product introductions [19][20]. - Management noted that the impact of current tariff policies is not expected to be significant, highlighting the company's supply chain resiliency [18][39]. Other Important Information - The company incurred $74 million in restructuring costs related to portfolio optimization actions, including site closures and workforce reductions [24]. - The upcoming Investor Day is scheduled for May 28, where the company will outline its overall strategy and long-term financial model [28]. Q&A Session Summary Question: Significance of recent product announcements and their revenue impact - Management highlighted the introduction of multiple new products at the Optical Fiber Communications Conference, including various 1.6T transceiver designs, which are expected to ramp revenue in the current calendar year [30][32][36]. Question: Impact of tariffs and manufacturing flexibility - Management stated that the current tariff environment is not expected to significantly impact financials, emphasizing the company's resilient and adaptable supply chain with over 60 production facilities worldwide [39][41]. Question: Trends in 800G demand and inventory levels - Demand for 800G transceivers remains strong, with customers deploying products quickly after shipment, indicating no significant inventory issues [46][48]. Question: Mix of technologies in data center revenue - Over half of the company's transceiver revenue comes from EML-based transceivers, with a growing portion from silicon photonics, countering perceptions of over-dependence on VCSELs [51][53]. Question: Guidance for the upcoming quarter - The company expects sequential growth in data center and communications while taking a cautious view on industrial-related markets due to macroeconomic uncertainties [60]. Question: Silicon carbide business exit and revenue impact - The discontinued silicon carbide devices and modules were largely pre-revenue, with ongoing focus on substrate and epi production where demand is strong [65][66]. Question: Gross margin outlook and contributing factors - The gross margin guidance incorporates potential mix headwinds, with ongoing focus on cost reductions and pricing optimization as key drivers for improvement [78][79].

INVESTOR PRESENTATION Third Quarter Fiscal 2025 May 7, 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 our estimates and projections for our business outlook for the fourth quarter of fiscal 2025, each of which is based on certain assumptions and contingencies. The forward-looking statements are made pursuant to the safe harbor provisions of ...

Core Viewpoint - Coherent Corp. reported strong financial results for the third quarter of fiscal 2025, driven by significant demand in AI-related datacenter products and the introduction of new optical networking technologies [1][2][5]. Financial Performance - Revenue for Q3 FY2025 was $1.50 billion, representing a year-over-year increase of 24% [5][19]. - GAAP gross margin was 35.2%, up 491 basis points year-over-year, while non-GAAP gross margin was 38.5%, an increase of 490 basis points year-over-year [5][19]. - The company reported a GAAP net loss of $0.11 per diluted share, an improvement of $0.18 year-over-year, and a non-GAAP net income of $0.91 per diluted share, up $0.53 year-over-year [5][19]. Operational Highlights - The company paid down $136 million of its outstanding debt, emphasizing cash and capital allocation as priorities [2]. - Operating income for Q3 FY2025 was $72 million, a decrease of 47.6% quarter-over-quarter but a significant increase of 222% year-over-year [19]. - Total operating expenses for Q3 FY2025 were $456 million, a 22.4% increase year-over-year [19]. Product and Market Developments - Coherent was recognized as an NVIDIA Ecosystem Innovation Partner, collaborating on silicon photonics and co-packaged optics for AI infrastructure [8]. - The company received six Product Innovation Awards at the Optical Fiber Communication Conference 2025, highlighting its advancements in datacenter and communications technologies [8]. - Coherent demonstrated groundbreaking technologies, including a 400G EML for next-generation transceivers and a portfolio of co-packaged optics solutions [8][9]. Business Outlook - For Q4 FY2025, revenue is expected to range between $1.425 billion and $1.575 billion, with a non-GAAP gross margin percentage anticipated between 37% and 39% [15]. - Total operating expenses for Q4 FY2025 are projected to be between $290 million and $310 million on a non-GAAP basis [15].

Financial Performance - Total revenues for the three months ended March 31, 2025, increased 24% to $1,498 million compared to $1,209 million for the same period last fiscal year [128]. - Total revenues for the nine months ended March 31, 2025, were $4,281 million, a 26% increase from $3,393 million for the same period last year [127]. - Revenues in the communications market increased by $281 million (46%), driven by strong AI datacenter related revenue growth [128]. - Networking revenues increased 45% year-over-year due to strong AI datacenter demand and growth in telecom [129]. - Networking revenues increased 53% year-over-year to $2,476 million for the nine months ended March 31, 2025, driven by strong AI datacenter demand [142]. Profitability - Gross margin for the three months ended March 31, 2025, improved to 35% from 30% in the same period last year [127]. - Gross margin for the nine months ended March 31, 2025 was $1,497 million, or 35% of total revenues, an increase of 484 basis points compared to the same period last fiscal year [131]. - Net earnings attributable to Coherent Corp. for the three months ended March 31, 2025, were $16 million, compared to a net loss of $13 million in the same period last year [127]. - Segment profit for the Lasers segment increased 123% to $93 million for the three months ended March 31, 2025, compared to $42 million for the same period last fiscal year [148]. - Segment profit for the Materials segment increased 41% to $249 million for the nine months ended March 31, 2025, compared to $177 million for the same period last fiscal year [146]. Expenses - Research and development expenses for the nine months ended March 31, 2025 were $426 million, or 10% of revenues, compared to $352 million, or 10% of revenues, for the same period last fiscal year [132]. - Selling, general and administrative expenses for the nine months ended March 31, 2025 were $681 million, or 16% of revenues, compared to $626 million, or 18% of revenues, for the same period last fiscal year [133]. - Restructuring charges for the three months ended March 31, 2025, amounted to $74 million, compared to $12 million in the same period last year [127]. - Restructuring charges for the nine months ended March 31, 2025 were $106 million, consisting of asset write-offs and employee termination costs [134]. Cash Flow and Debt - Net cash provided by operating activities increased to $503 million for the nine months ended March 31, 2025, up from $383 million in the same period last year, primarily due to higher earnings [151]. - Net cash used in investing activities was $284 million for the nine months ended March 31, 2025, compared to $249 million in the prior year, with capital expenditures increasing by $63 million year-over-year [152]. - Net cash used in financing activities was $386 million for the nine months ended March 31, 2025, a significant decrease from net cash provided of $820 million in the same period last year, mainly due to payments on existing debt [153]. - As of March 31, 2025, the company had total debt obligations of $3,732 million, down from $4,100 million as of June 30, 2024 [155]. - The company believes existing cash, cash flow from operations, and available borrowing capacity will be sufficient to meet its needs for at least the next twelve months [157]. Strategic Actions - The company achieved its previously announced $250 million synergy plan, including savings from supply chain management and operational efficiencies [118]. - The company expects restructuring actions to be substantially completed by the end of fiscal 2026 [117]. - The company does not expect tariffs and trade sanctions to have a material impact on its business in the fourth quarter of fiscal 2025 [121]. Interest and Tax - Interest and other net expense for the nine months ended March 31, 2025 was $126 million, a decrease of $64 million compared to the same period last fiscal year [136]. - The effective income tax rate for the year-to-date at March 31, 2025 was 19%, down from 29% for the same period in 2024 [137]. - The company has an interest rate cap effective from July 1, 2023, which reduced interest expense by $27 million for the nine months ended March 31, 2025 [154]. - A change in interest rates of 100 basis points on variable rate borrowings would have resulted in additional interest expense of $23 million for the nine months ended March 31, 2025 [161]. Cash and Investments - As of March 31, 2025, the company held approximately $890 million in cash and cash equivalents, with $838 million held outside the United States [158]. - The company received $1.0 billion in exchange for 25% equity in Silicon Carbide LLC, aimed at funding future capital expansion in the silicon carbide business [156]. Risk Management - The company paused its balance sheet hedging program indefinitely as of September 30, 2024, while continuing to analyze foreign exchange risks [160].

Financial Performance - Q3 FY25 revenue was $1.50 billion, an increase of 24% year-over-year[4] - Q3 FY25 GAAP gross margin was 35.2%, up 491 basis points year-over-year; non-GAAP gross margin was 38.5%, up 490 basis points year-over-year[4] - Q3 FY25 GAAP EPS was $(0.11), an improvement of $0.18 year-over-year; non-GAAP EPS was $0.91, an improvement of $0.53 year-over-year[4] - Revenues for the three months ended March 31, 2025, were $1,497.9 million, an increase from $1,208.8 million in the same period of 2024, representing a growth of 24%[20] - Revenues for the nine months ended March 31, 2025, were $4,280 million, an increase from $3,393 million in the same period of 2024, representing a growth of approximately 26.2%[22] - Total revenues for the nine months ended March 31, 2025, reached $4,280.7 million, a 26.2% increase from $3,393.3 million in the same period of 2024[28] - Basic earnings (loss) per share for the nine months ended March 31, 2025, were $0.31, improving from a loss of $1.32 per share in 2024[22] - Total costs, expenses, and other expenses for the nine months ended March 31, 2025, were $4,123 million, compared to $3,550 million in 2024, indicating an increase of about 16.1%[22] Debt and Cash Management - The company paid down $136 million of outstanding debt during the quarter[3] - The company reported interest expense of $57.3 million for the three months ended March 31, 2025, down from $72.8 million in the previous quarter, suggesting improved debt management[20] - Interest expense for the nine months ended March 31, 2025, was $188 million, compared to $220 million in 2024, showing a decrease of approximately 14.5%[22] - The company reported a net cash decrease of $163.7 million in cash and cash equivalents for the nine months ended March 31, 2025[26] Operational Changes and Expenses - The company incurred restructuring charges of $73.8 million in the latest quarter, compared to $8.0 million in the previous quarter, indicating significant operational changes[20] - Research and development expenses increased to $150.7 million for the three months ended March 31, 2025, up from $127.5 million in the same period of 2024, reflecting a focus on innovation[20] - Research and development expenses for the nine months ended March 31, 2025, were $426 million, up from $352 million in 2024, reflecting an increase of approximately 21.0%[22] - Selling, general, and administrative expenses for the nine months ended March 31, 2025, were $681 million, compared to $626 million in 2024, marking an increase of about 8.8%[22] Future Outlook - Revenue for Q4 FY25 is expected to be between $1.425 billion and $1.575 billion[14] - Q4 FY25 non-GAAP gross margin is expected to be between 37% and 39%[14] - Q4 FY25 EPS is expected to be between $0.81 and $1.01 on a non-GAAP basis[14] - Future outlook includes addressing risks related to market demand fluctuations and timely product releases to maintain competitive advantage[16] Innovations and Collaborations - The company received six Product Innovation Awards at the Optical Fiber Communication Conference 2025[10] - Coherent is collaborating with NVIDIA on silicon photonics and co-packaged optics for AI infrastructure[10] - The company showcased multiple key technologies for co-packaged optics at OFC 2025, including high power InP CW lasers and VCSEL-based solutions[10] Shareholder Information - The average shares outstanding for basic earnings were 155.2 million for the three months ended March 31, 2025, compared to 152.1 million in the same period of 2024[20] - Average shares outstanding - Basic for the nine months ended March 31, 2025, were 154.5 million, compared to 151.3 million in 2024[22] - The weighted average shares for Q1 2025 were 155.2 million, slightly up from 154.8 million in Q4 2024 and up from 152.1 million in Q1 2024[38] - The effect of dilutive securities increased the diluted weighted average common shares to 159.1 million in Q1 2025, compared to 160.0 million in Q4 2024 and 155.7 million in Q1 2024[38] Tax and Non-GAAP Measures - The company reported a tax impact of non-GAAP measures of $47.6 million for Q1 2025, compared to $19.2 million in Q4 2024[31] - The company refined its methodology for reporting non-GAAP measures in Q2 2025, but this change does not impact its financial position or GAAP results[39] - Prior period non-GAAP financial measures have been recast to conform to the current presentation, ensuring consistency in reporting[39]

Company Overview - Coherent Corp. (COHR) is set to report its third-quarter fiscal 2025 results on May 7, with revenue expectations of $1.4 billion, reflecting a year-over-year growth of 19.1% and earnings per share (EPS) estimated at 86 cents, indicating a 62.3% increase from the previous year [1] - The company has a strong earnings surprise history, having surpassed the Zacks Consensus Estimate in the last four quarters with an average surprise of 20.3% [2] Earnings Estimates - Current earnings estimates for Q1 and Q2 are 0.86 and 0.92 respectively, with full-year estimates of 3.47 and 4.28 [2] - There have been no recent changes in analyst estimates, with a slight downward revision of -0.29% for F1 and -0.70% for F2 [2] Market Performance - COHR shares have increased by 23.7% over the past year, outperforming its industry growth of 24.6% and the Zacks S&P 500 composite's 10% growth [6] - The stock is currently trading at a trailing 12-month price-to-earnings ratio of 2.67X, which is higher than the industry average of 1.76X and Alithya Group's 1.28X, but lower than AirJoule Technologies' 7.83X [9] Industry Insights - The telecom segment is expected to drive revenue growth, with a reported 11% year-over-year increase in Q2 fiscal 2025, attributed to strong demand for new products like 100G, 400G, and 800ZR/ZR+ coherent transceivers [5] - The rise in data traffic due to AI workloads is anticipated to boost investments in higher-capacity interconnects, benefiting Coherent's optical transport networks [10] Future Outlook - Management projects that 1.6T transceivers will be a key contributor to revenue in 2025, ensuring growth beyond the current 800G cycle [12] - The demand for high-speed optical transceivers is expected to increase as hyperscalers expand their AI training and inference workloads [11] Investment Considerations - Despite the positive outlook, potential revenue growth may be hindered by delayed AI infrastructure spending and geopolitical risks, particularly between the U.S. and China [13] - The company is viewed as fundamentally strong but carries a premium valuation, suggesting that investors may benefit from holding the stock while waiting for a more favorable entry point [15]

Wall Street analysts expect Coherent (COHR) to post quarterly earnings of $0.86 per share in its upcoming report, which indicates a year-over-year increase of 62.3%. Revenues are expected to be $1.44 billion, up 19.2% from the year-ago quarter.Over the last 30 days, there has been a downward revision of 0.9% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe ...

点击蓝字，关注我们 美东时间4月28日，美银邀请华盛顿顶尖两党非营利智库战略与国际研究中心（CSIS）瓦德瓦尼人工智 能中心主任 Gregory C. Allen，探讨美中 AI 竞争的最新动态。 讨论的核心观点包括： 中国 AI 发展已远超美国全面限制的能力，现有管控仅能减缓进步速度； H20/MI308 禁令大概率（ likely ）将维持，英伟达合法向中国出售 Blackwell 芯片的可能性极低； 中国过去几年成功获取先进半导体设备，但 AI 扩散规则将带来更严格的管控； AI 扩散规则 likely 于 5 月 15 日按原计划实施，影响或较为温和； 华为是中国芯片设计的绝对领导者，但仍远落后于基于英伟达芯片 / 生态系统的西方技术。 总体而言，特朗普政府对中国科技 / AI 的鹰派立场，短期内对向中国销售产品的美国芯片设计商和工具 制造商构成阻力。 然而，华为硬件（芯片性能）仅达到英伟达上一代 H100 的 70-100%，能效差距更大，软件 / 生态系统 落后最远（西方 AI 软件性能每年提升 10 倍），这使其在中国市场外与英伟达竞争时处于显著劣势。 AI 扩散规则或按原计划实施，对英伟达影响 ...

SAXONBURG, Pa., April 23, 2025 (GLOBE NEWSWIRE) -- Coherent Corp. (NYSE: COHR) (the “Company”), a global leader in materials, networking, and lasers, announced today that it will release third-quarter fiscal 2025 financial results on Wednesday, May 7, after the New York Stock Exchange closes. The release will be followed by a live audio webcast at 5:00 p.m. ET to discuss the results. The Company invites investors to join the live audio webcast at coherent.com/company/ investor-relations/financial-webcasts. ...