erent (US:COHR)2021-11-09 17:57Financial Data and Key Metrics Changes - The company's backlog increased from $1.25 billion to $1.4 billion sequentially [6] - Revenue for Q1 was $795 million, representing a 9% growth compared to Q1 FY'21 [6][27] - Gross margin for the quarter was 40%, showing improvement year-over-year and sequentially [7][27] - Non-GAAP EPS was $0.87, at the high end of the EPS guidance range [10][30] Business Line Data and Key Metrics Changes - Communications revenue grew 4% year-over-year, with significant contributions from Datacom [19] - Revenue from Datacom transceivers, particularly 200G, 400G, and 800G products, now represents 25% of transceiver revenue, up from 2% a year ago [19] - Industrial market revenue grew 53% year-over-year, while consumer electronics revenue increased 7% year-over-year and over 30% sequentially [22][23] - Revenue from semiconductor capital equipment grew 18% year-over-year [25] Market Data and Key Metrics Changes - Geographic revenue distribution: 50% North America, 21% China, 20% Europe, 6% Japan, and 3% rest of the world [27] - End market revenue distribution: 67% communications, 13% industrial, 7% consumer, 6% aerospace and defense, and 7% other [27] Company Strategy and Development Direction - The company is focusing on expanding investments in analog and digital ICs to enhance supply chain resilience and maintain market leadership [7][11] - Strategic investments in compound semiconductor platforms, particularly silicon carbide and indium phosphide, are being accelerated [11][14] - The company aims to build a significant position in a projected $30 billion addressable market by 2030 [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for Q2, expecting continued market momentum and strong interest from customers [10][11] - Supply chain challenges were acknowledged, but management is actively working with suppliers to mitigate impacts [42][44] - The company is not sensing over-ordering from customers, indicating strong demand trends [45][46] Other Important Information - The company incurred $4 million in COVID-related expenses and $2 million in costs to secure parts for customers during the quarter [28] - Capital expenditures for FY'22 are expected to be between $325 million and $375 million [33] Q&A Session Summary Question: Context on ASP increase and long-term commitments - Management indicated that they are positioning for long-term commitments and larger orders to balance increasing costs [40] Question: Quantification of supply chain impact on revenue - Management acknowledged supply chain issues but did not quantify the exact revenue impact, indicating ongoing efforts to close the gap [42][44] Question: Investments in silicon carbide and indium phosphide - Management stated that investments will not materialize sooner than two quarters, with effects expected around mid-FY 2023 [53] Question: Outlook for industrial segment demand - Management reported strong demand for pump lasers, particularly from China, and expects to gain market share [56] Question: Supply situation for Datacom - Management expressed confidence in their capacity to meet demand, leveraging a diverse supply chain [88] Question: Importance of DSP at higher speeds - Management indicated a mixed approach of making or buying DSPs based on application needs [92]