Coherent Corp. Reports Fourth Quarter and Full Year Fiscal 2024 Results

Core Insights - Coherent Corp. reported a fourth-quarter revenue of $1.314 billion, reflecting a year-over-year growth of 9.1% and a sequential growth of 8.7% [1][4][7] - The company achieved a GAAP gross margin of 32.9%, an increase of 437 basis points year-over-year, while the non-GAAP gross margin was 37.2%, up 132 basis points year-over-year [1][4][5] - The GAAP net loss per diluted share was $(0.52), an improvement of $1.02 year-over-year, while the non-GAAP EPS was $0.61, representing a 49% increase year-over-year [1][2][5] Financial Performance - For fiscal year 2024, Coherent's total revenue was $4.708 billion, with a GAAP gross margin of 30.9% and a non-GAAP gross margin of 36.0% [2][4] - The company reported a GAAP net loss of $(1.84) per diluted share for the fiscal year, compared to $(2.93) in the previous year [2][20] - Operating income for Q4 FY24 was $63 million, a significant improvement from a loss of $(155) million in Q4 FY23 [4][17] Market and Business Outlook - The CEO expressed optimism about Coherent's potential, highlighting the company's innovative capabilities and growth opportunities, particularly in the AI-related Datacom transceiver business [3][7] - The company expects first-quarter fiscal 2025 revenue to be between $1.27 billion and $1.35 billion, with a gross margin percentage projected between 36% and 38% on a non-GAAP basis [8][9] - Coherent achieved a milestone of shipping over 300 million Datacom transceivers from its facility in Malaysia, indicating strong supply chain resilience [7] Operational Highlights - The company reported a sequential revenue growth of 10% in its Communications market, driven by strong demand for 800G AI-related Datacom transceivers [7] - Coherent received its first volume order for new Linebeam annealing systems for Gen 8 fabs, indicating initial adoption of OLED technology for tablets and laptops [7]