erent (US:COHR)2025-05-07 20:05Financial 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]