erent (US:COHR)2024-02-06 15:25Financial Data and Key Metrics Changes - The company reported revenue of $1.131 billion for the quarter, exceeding the midpoint of guidance, with non-GAAP EPS of $0.36, above the high end of guidance [39][41] - Operating cash flow was $67 million, with $91 million invested in capital equipment and $89 million of debt retired [40] Business Line Data and Key Metrics Changes - The company shipped over 100 million in 800G transceivers last quarter, marking a nearly 100% growth quarter-over-quarter [2][39] - It is projected that over 50% of datacom transceiver revenues in fiscal '24 will come from AI-related applications [12][41] Market Data and Key Metrics Changes - The datacom market is expected to grow at a 65% CAGR from calendar '23 to '28, particularly in the 800G and above segment driven by AI [86][94] - The telecom vertical is anticipated to see double-digit growth in the second half of the fiscal year compared to the first half [146] Company Strategy and Development Direction - The company is focused on optimizing production footprint and enhancing operational resiliency while completing the integration of legacy Coherent [38] - There are ongoing efforts to explore strategic opportunities, including smaller acquisitions to unlock shareholder value [114][115] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to stronger growth and enhanced profitability, citing healthy increases in gross and operating margins [34][35] - The macroeconomic environment presents challenges, but the company is taking proactive measures to improve operating efficiency and margin structure [37][39] Other Important Information - The company confirmed long-term supply agreements with Mitsubishi Electric and DENSO Corporation, which invested a total of $1 billion in the silicon carbide business [35] - The company is seeing increased customer engagement in the MicroLED market, with multiple orders received from Asia [55] Q&A Session All Questions and Answers Question: What are you seeing on inventory of 800G or AI transceivers? - Management noted that they shipped over 100 million in 800G transceivers last quarter, with strong growth projected in fiscal '24 [2][12] Question: Can you provide insight on new significant AI-related customers? - Management indicated a broad group of customers is engaged, with ongoing growth in the datacom vertical [12][11] Question: Are supply chain constraints behind you? - Management acknowledged that while constraints have eased, they are still managing several challenges as they ramp up production [20][19] Question: How do you plan to compete in the 800G market? - The company emphasized its vertical integration and control over supply lines, which positions it favorably against competitors [49][50] Question: What is the outlook for 800G transceiver shipments? - Management expects shipments in Q3 to exceed Q2, with a continued upward trend [90][89] Question: Can you elaborate on the strategic opportunities to unlock shareholder value? - Management is considering various alternatives, including smaller transactions to grow shareholder value [114][115]