Core Insights - Coherent Corp. has launched the industry's first 100G ZR QSFP28-DCO with 0dBm optical output power, aimed at metro and regional ROADM-based line systems [1][2] Product Features - The 100G ZR QSFP28-DCO is the only high-power coherent transceiver in the compact QSFP28 form factor, reducing power dissipation and network footprint [2] - It is designed for IP-over-DWDM deployments, eliminating the need for expensive muxponders and transponders, thus allowing network operators to scale efficiently while enhancing performance [2] - An optional Tunable Optical Filter is available to support colorless ROADM configurations, increasing the product's versatility [2] Market Context - The pluggable 100G coherent market is rapidly growing as networks transition from 10G DWDM, with Coherent being the sole provider of a QSFP28 solution [3] - The introduction of a high-power option enables operation over existing ROADM networks, expanding the 100ZR market into metro applications [3] Industry Impact - Higher-power coherent pluggables are essential for cost-effective IP-over-DWDM architectures, particularly in metro and regional networks [3] - The new 100G ZR QSFP28-DCO enhances network efficiency and scalability, simplifying ROADM-based transport [3] - The product is built with Coherent's vertical integration capabilities, including InP photonic integrated circuits and in-house digital signal processing [4] Strategic Partnerships - Coherent collaborates with Adtran to advance coherent DSP technology, enabling operators to expand capacity and reduce costs while transitioning to flexible optical networks [3] - Juniper Networks highlights the transceiver's role in upgrading metro DWDM networks and addressing capacity bottlenecks for bandwidth-intensive services [4]

SAXONBURG, Pa., March 28, 2025 (GLOBE NEWSWIRE) -- Coherent Corp. (NYSE:COHR), a global leader in photonics, announces general availability of its 800G ZR/ZR+ transceiver in QSFP-DD form factor. This launch reinforces the company's commitment to next-generation optical networking.  The 800G ZR/ZR+ addresses increasing demand for high-speed, efficient, and scalable metro, regional, and data center interconnect applications. Its pluggable form factor supports IP-over-DWDM deployments, enabling seamless integr ...

Core Insights - Coherent Corp. has introduced a new set of pluggable optical transceivers designed for data centers utilizing optical circuit switches (OCSs) [1][2] Group 1: Product Development - The new transceivers are optimized to handle an additional 3 dB of insertion loss caused by OCS, while still meeting the original IEEE-defined network insertion losses [2][3] - These transceivers support high-density 400G and 800G requirements in QSFP-DD and OSFP form factors, with reach capabilities of up to 6 km, targeting large hyperscale data centers [3][4] - Coherent plans to release OCS-optimized 1.6T FR8 transceivers in the near future [3] Group 2: Market Demand - The adoption of OCS in AI and machine learning applications is increasing due to its benefits in reducing cost, latency, and power consumption [2] - Customers in the AI sector are looking to deploy OCS without compromising the physical footprint of their data centers, maintaining 2 km and 6 km link capabilities [4] Group 3: Interoperability - Coherent's OCS-optimized transceivers are designed to interoperate with conventional transceivers when an OCS is not used, providing flexibility in deployment scenarios [4]

Core Insights - Coherent Corp. has introduced the industry's first 400 Gb/s Differential Electro-absorption Modulated Laser (D-EML), marking a significant advancement in high-speed optical networking technology for data centers [1][2]. Group 1: Product Innovation - The new 400G D-EML builds on the success of the previously recognized 200G D-EML, addressing challenges in optical transceiver designs for 1.6T and future 3.2T connectivity, driven by the rapid growth of AI infrastructure [2]. - The differential design of the D-EML effectively doubles the signal amplitude, significantly reducing overall power consumption and minimizing crosstalk, which enhances OMA and ER performance [2]. - An integrated on-chip termination network optimizes electrical performance, reducing the need for extensive signal pre-conditioning and improving signal integrity [2]. Group 2: Market Position and Future Plans - Coherent emphasizes its commitment to innovation and technology leadership, leveraging vertical integration capabilities to support the evolution of the data center market [3]. - The 400G D-EML will be demonstrated at OFC 2025 and will be available under controlled conditions upon request, while general availability of the 200G D-EML is expected in 2026 [3]. - Coherent invites attendees to visit booth 1519 at OFC 2025 in San Francisco to see demonstrations and learn more about its extensive portfolio of optical and semiconductor high-performance solutions [3]. Group 3: Company Overview - Coherent empowers market innovators through breakthrough technologies across various sectors, including industrial, communications, electronics, and instrumentation [4]. - The company has a global presence with research and development, manufacturing, sales, service, and distribution facilities [4].

Core Insights - Coherent Corp. has introduced the first 400 Gb/s Differential Electro-absorption Modulated Laser (D-EML), marking a significant advancement in high-speed optical networking technology for data centers [1][2]. Group 1: Product Innovation - The new 400G D-EML builds on the success of the previously recognized 200G D-EML, addressing challenges in optical transceiver designs for 1.6T and future 3.2T connectivity, driven by the rapid growth of AI infrastructure [2]. - The differential design of the D-EML effectively doubles the signal amplitude, which significantly reduces overall power consumption and minimizes crosstalk, leading to superior Optical Modulation Amplitude (OMA) and Extinction Ratio (ER) performance [2]. - An integrated on-chip termination network optimizes electrical performance, reducing the need for extensive signal pre-conditioning and enhancing signal integrity [2]. Group 2: Market Position and Future Plans - Coherent emphasizes its commitment to innovation and technology leadership, leveraging vertical integration capabilities to support the evolution of the data center market [3]. - The 400G D-EML will be demonstrated at OFC 2025 and will be available under controlled conditions upon request, while general availability of the 200G D-EML is expected in 2026 [3].

Core Insights - Coherent Corp. announced the sale of its epitaxial fabrication facility in Champaign, Illinois, as part of its strategy to optimize its manufacturing footprint [1] Company Overview - Coherent is a global leader in materials, networking, and lasers, focusing on empowering market innovators through breakthrough technologies [4] - The company operates research and development, manufacturing, sales, service, and distribution facilities worldwide [4] Facility Details - The Champaign facility spans 65,000 square feet and includes five G3 epi systems within 15,000 square feet of Class 1000 cleanrooms [2] - The facility is equipped for up to 10 epitaxial tools and has previously produced indium phosphide and gallium arsenide wafers ranging from 2 inches to 6 inches [2] - The site is located six miles from the University of Illinois at Urbana-Champaign and consists of four buildings with various fabrication and characterization equipment [2]

Core Insights - Coherent Corp. has introduced a high-performance embedded Optical Time Domain Reflectometer (eOTDR) in a QSFP package, featuring a 30 dB dynamic range for precise fiber diagnostics over spans up to 150 km [1][5] Industry Context - The demand for bandwidth is increasing, making real-time fiber-plant health monitoring essential for data center interconnects and telecom networks [2] - The eOTDR provides critical measurements such as absolute loss and reflection values, enhancing visibility into channel and system performance [2] Product Features - The QSFP eOTDR is part of Coherent's modular embedded OTDR family, featuring a CMIS-based interface for easy integration into routers [3] - Its pluggable format allows for in-service fiber health monitoring without the need for additional infrastructure investment, supporting a scalable "pay-as-you-grow" model [4] Company Positioning - Coherent is recognized for its leadership in embedded OTDR technology, addressing the needs of ultra-high-capacity fiber networks where real-time visibility and proactive maintenance are vital [5] - The company also offers complementary fiber monitoring tools, including optical channel monitors, to maximize uptime and optimize network performance [5]

Core Insights - Coherent Corp. has launched the 2x400G-FR4 Lite optical transceiver, designed for AI-driven data centers and high-speed Ethernet networks, featuring a 500-meter reach and reduced power consumption [1][2] - The demand for high-density, energy-efficient optical interconnects is driven by the growth of AI and ML workloads, with the new transceiver providing an alternative to conventional EML-based solutions [2] - The 2x400G-FR4 Lite utilizes silicon photonics technology, integrating a silicon photonics integrated circuit (PIC) to streamline production and reduce component count [3] Product Details - The 2x400G-FR4 Lite is optimized for high volume deployments and complements the existing 800G-DR8 transceiver, offering a more fiber-efficient design [1] - General availability of the 2x400G-FR4 Lite is planned for April 1, 2025, with samples currently available [4] Company Overview - Coherent Corp. focuses on delivering breakthrough technologies across various markets, including industrial, communications, electronics, and instrumentation [5]

Core Viewpoint - Coherent Corp. (COHR) has experienced a significant stock price decline of 21.5% over the past six months, underperforming compared to its industry and the broader market, which raises questions about the timing for potential investment [1][4]. Group 1: Stock Performance - COHR's stock closed at $65.4, which is 73.8% lower than its 52-week high of $113.6 [4]. - Industry peers, Cardlytics, Inc. (CDLX) and Blade Air Mobility, Inc. (BLDE), have also seen declines of 36% and 8.1%, respectively, during the same period [4]. Group 2: AI and Datacom Segment Growth - The rapid growth in AI is driving demand for Coherent's datacom products, particularly high-speed optical transceivers, which is expected to boost revenues [5]. - Shipments of 800G transceivers are increasing due to demand from hyperscalers, with management indicating that 1.6T transceivers will be a key revenue contributor by 2025, suggesting sustained growth beyond the current cycle [6]. Group 3: Telecom Segment Recovery - In the second quarter of fiscal 2025, the telecom segment's revenues grew by 11% year-over-year and 16% from the previous quarter, driven by new product launches [9]. - The telecom industry's recovery is linked to rising AI workloads, necessitating investments in higher-capacity interconnects and optical transport networks [10]. Group 4: Valuation and Financial Health - Coherent's stock is currently undervalued, trading at 16 times forward 12-month earnings per share, significantly lower than the industry average of 44.8 times [11]. - The trailing 12-month EV-to-EBITDA ratio for COHR is 10.2 times, compared to the industry's average of 46.5 times, indicating a favorable valuation [13]. - The company has a strong liquidity position with a current ratio of 2.67, surpassing the industry's 2.08, which reflects efficient short-term debt coverage [15][16]. Group 5: Revenue and Earnings Prospects - The Zacks Consensus Estimate projects COHR's fiscal 2025 revenues at $5.7 billion, representing a 21% increase year-over-year, with further growth anticipated in fiscal 2026 [18]. - Earnings per share for fiscal 2025 are estimated at $3.48, indicating over 100% year-over-year growth, with a 24% increase expected in fiscal 2026 [18]. Group 6: Investment Recommendation - Coherent is well-positioned to capitalize on the growing demand for datacom products driven by AI advancements, alongside a recovering telecom segment [19]. - The company's discounted valuation, robust liquidity, and strong revenue and earnings prospects present attractive investment opportunities [19][20].

Core Insights - Coherent Corp. announced a collaboration with NVIDIA to develop silicon photonics networking switches using co-packaged optics (CPO) to enhance connectivity in AI factories [1][2] - The partnership aims to accelerate the expansion of optical networking in data centers, addressing the growing demand for networking infrastructure as AI factories proliferate [2] - Coherent is positioned to benefit from the increasing importance of optical networking in data center architectures, with expectations for continued market growth driven by co-packaging technology [2] Company Overview - Coherent empowers market innovators through breakthrough technologies across various sectors, including industrial, communications, electronics, and instrumentation [3] - The company has a global presence with research and development, manufacturing, sales, service, and distribution facilities [3] - Coherent will showcase its optical networking technologies, including CPOs and enabling components, at the OFC 2025 event in San Francisco [2]