Coherent Corp. Reports First Quarter Fiscal 2025 Results
Coherent Corp. (COHR) reported strong Q1 fiscal 2025 results with revenue of $1.35 billion, up 28% year-over-year. The company's GAAP gross margin improved to 34.1%, while non-GAAP gross margin reached 37.7%. GAAP EPS showed a loss of $(0.04), improving 94% Y/Y, while non-GAAP EPS grew to $0.74, up 357% Y/Y. Growth was primarily driven by AI-related Datacom transceivers. The company reduced its debt by $118 million and provided Q2 FY25 guidance with expected revenue between $1.33-1.41 billion and non-GAAP EPS of $0.61-0.77.
Coherent Corp. (COHR) ha riportato risultati solidi per il primo trimestre dell'esercizio 2025, con un fatturato di 1,35 miliardi di dollari, in crescita del 28% rispetto all'anno precedente. Il margine lordo GAAP dell'azienda è migliorato al 34,1%, mentre il margine lordo non-GAAP ha raggiunto il 37,7%. L'utile per azione (EPS) GAAP ha mostrato una perdita di $(0,04), con un miglioramento del 94% annuo, mentre l'EPS non-GAAP è cresciuto a $0,74, con un incremento del 357% rispetto all'anno precedente. La crescita è stata principalmente trainata da trasmettitori Datacom legati all'IA. L'azienda ha ridotto il suo debito di 118 milioni di dollari e ha fornito previsioni per il secondo trimestre dell'esercizio fiscale 2025, con un fatturato atteso compreso tra 1,33 e 1,41 miliardi di dollari e un EPS non-GAAP di $0,61-0,77.
Coherent Corp. (COHR) informó resultados sólidos para el primer trimestre del ejercicio fiscal 2025, con ingresos de 1.35 mil millones de dólares, un aumento del 28% en comparación con el año anterior. El margen bruto GAAP de la empresa mejoró al 34.1%, mientras que el margen bruto no GAAP alcanzó el 37.7%. El EPS GAAP mostró una pérdida de $(0.04), mejorando un 94% interanual, mientras que el EPS no GAAP creció a $0.74, un aumento del 357% interanual. El crecimiento fue impulsado principalmente por transceptores Datacom relacionados con IA. La empresa redujo su deuda en 118 millones de dólares y proporcionó una estimación para el segundo trimestre del ejercicio fiscal 2025, con ingresos esperados entre 1.33 y 1.41 mil millones de dólares y un EPS no GAAP de $0.61-0.77.
Coherent Corp. (COHR)는 2025 회계연도 1분기에 13.5억 달러의 매출을 기록하며 전년 대비 28% 증가한 실적을 보고했습니다. 회사의 GAAP 총 마진은 34.1%로 개선되었고, 비GAAP 총 마진은 37.7%에 도달했습니다. GAAP 주당순이익(EPS)은 $(0.04)의 손실을 기록하며 전년 대비 94% 개선되었고, 비GAAP EPS는 $0.74로 전년 대비 357% 증가했습니다. 성장은 주로 AI 관련 Datacom 트랜시버에 의해 촉진되었습니다. 회사는 부채를 1억 1,800만 달러 줄였으며, 2025 회계연도 2분기 가이던스를 제공하여 예상 매출을 13.3억~14.1억 달러, 비GAAP EPS를 $0.61~0.77로 제시했습니다.
Coherent Corp. (COHR) a annoncé des résultats solides pour le premier trimestre de l'exercice fiscal 2025, avec des revenus de 1,35 milliard de dollars, en hausse de 28% par rapport à l'année précédente. La marge brute GAAP de l'entreprise a été améliorée à 34,1%, tandis que la marge brute non-GAAP a atteint 37,7%. Le bénéfice par action (EPS) GAAP a affiché une perte de $(0,04), améliorant de 94% d'une année sur l'autre, tandis que l'EPS non-GAAP a augmenté pour atteindre 0,74 $, soit une hausse de 357% d'une année à l'autre. La croissance a été principalement motivée par des émetteurs Datacom liés à l'IA. L'entreprise a réduit sa dette de 118 millions de dollars et a fourni des prévisions pour le deuxième trimestre de l'exercice fiscal 2025, avec des revenus attendus entre 1,33 et 1,41 milliard de dollars et un EPS non-GAAP de 0,61 à 0,77 $.
Coherent Corp. (COHR) hat starke Ergebnisse für das erste Quartal des Geschäftsjahres 2025 berichtet, mit einem Umsatz von 1,35 Milliarden Dollar, was einem Anstieg von 28 % im Vergleich zum Vorjahr entspricht. Die GAAP-Bruttomarge des Unternehmens verbesserte sich auf 34,1 %, während die Nicht-GAAP-Bruttomarge 37,7 % erreichte. Der GAAP-EPS wies einen Verlust von $(0,04) aus, was einem Anstieg von 94 % im Vergleich zum Vorjahr entspricht, während der Nicht-GAAP-EPS auf $0,74 stieg, ein Zuwachs von 357 % im Jahresvergleich. Das Wachstum wurde hauptsächlich durch KI-bezogene Datacom-Transceiver vorangetrieben. Das Unternehmen hat seine Schulden um 118 Millionen Dollar reduziert und gab eine Prognose für das zweite Quartal des Geschäftsjahres 2025 ab, mit erwarteten Einnahmen zwischen 1,33 und 1,41 Milliarden Dollar und einem Nicht-GAAP-EPS von $0,61-0,77.
- Revenue increased 28% Y/Y to $1.35B
- Non-GAAP gross margin improved 293 bps to 37.7%
- Non-GAAP EPS grew 357% Y/Y to $0.74
- Debt reduction of $118 million
- Strong AI-related Datacom transceiver growth
- GAAP net loss of $(0.04) per share
- Operating expenses increased 17.3% Y/Y to $385M
Insights
The Q1 FY25 results demonstrate strong financial performance with significant improvements across key metrics.
Notable operational achievements include
The product portfolio expansion in silicon photonics and optical transceivers positions Coherent strategically in the AI infrastructure market. The launch of high-efficiency lasers for 1.6T optical transceivers and the industry's first high-power L-band 800G ZR/ZR+ coherent transceiver demonstrates technological leadership. The ECOC'24 award for the Optical Circuit Switch validates their innovation in data center connectivity solutions.
The EDGE fiber laser series launch shows diversification into industrial applications, while maintaining focus on high-performance optical communications. These developments align with increasing demand for high-speed data transmission in AI and cloud computing applications.
- Q1 REVENUE OF
$1.35B , INCREASED28% Y/Y - Q1 GAAP GROSS MARGIN OF
34.1% , INCREASED 499 bps Y/Y; Q1 NON-GAAP GROSS MARGIN OF37.7% , INCREASED 293 bps Y/Y - Q1 GAAP EPS OF (
$0.04) , IMPROVED94% Y/Y; Q1 NON-GAAP EPS OF$0.74 , IMPROVED357% Y/Y
PITTSBURGH, Nov. 06, 2024 (GLOBE NEWSWIRE) -- Coherent Corp. (NYSE: COHR) (“Coherent,” “We,” or the “Company”), a global leader in materials, networking, and lasers, announced financial results today for its fiscal first quarter ended September 30, 2024.
Revenue for the first quarter of fiscal 2025 was
Jim Anderson, CEO, said, “We delivered solid growth in the September quarter on both a sequential and year-over-year basis, driven primarily by our AI-related Datacom transceivers. We also drove higher gross margin and operating margin. I continue to be excited by the opportunity to unlock significant long-term shareholder value.”
Sherri Luther, CFO, said, “I am pleased by our strong EPS growth, cash generation and debt reduction in the first quarter. Revenue growth and margin expansion drove strong sequential and year-over-year increases in our GAAP and Non-GAAP EPS. We also paid down
Selected First Quarter Financial Results and Comparisons (in millions, except per share data) | |||||||||||||||||||||
Table 1 | |||||||||||||||||||||
GAAP Financial Results (unaudited) | |||||||||||||||||||||
Q1 FY25 | Q4 FY24 | Q1 FY24 | Q/Q | Y/Y | |||||||||||||||||
Revenues | $ | 1,348 | $ | 1,314 | $ | 1,053 | 2.6 | % | 28.0 | % | |||||||||||
Gross Margin % | 34.1 | % | 32.9 | % | 29.1 | % | 126 bps | 499 bps | |||||||||||||
R&D Expense % | 9.8 | % | 9.6 | % | 10.8 | % | 12 bps | (102) bps | |||||||||||||
SG&A Expense % | 17.0 | % | 17.3 | % | 20.1 | % | (36) bps | (312) bps | |||||||||||||
Operating Expenses | $ | 385 | $ | 369 | $ | 328 | 4.4 | % | 17.3 | % | |||||||||||
Operating Income (Loss)(1) | $ | 75 | $ | 63 | $ | (21 | ) | 19.0 | % | (453.1) | |||||||||||
Operating Margin (Loss) | 5.6 | % | 4.8 | % | (2.0)% | 77 bps | 760 bps | ||||||||||||||
Net Earnings (Loss) Attributable to Coherent Corp. | $ | 26 | $ | (48 | ) | $ | (68 | ) | (153.4) | (138.3) | |||||||||||
Diluted Loss Per Share | $ | (0.04 | ) | $ | (0.52 | ) | $ | (0.65 | ) | $ | 0.48 | $ | 0.61 |
(1) Operating Income (Loss) is defined as earnings (loss) before income taxes, interest expense, and other expense or income, net.
Selected First Quarter Financial Results and Comparisons (in millions, except per share data) | |||||||||||||||||||||
Table 1, continued | |||||||||||||||||||||
Non-GAAP Financial Results (unaudited)(1) | |||||||||||||||||||||
Q1 FY25 | Q4 FY24 | Q1 FY24 | Q/Q | Y/Y | |||||||||||||||||
Revenues | $ | 1,348 | $ | 1,314 | $ | 1,053 | 2.6 | % | 28.0 | % | |||||||||||
Gross Margin % | 37.7 | % | 37.2 | % | 34.8 | % | 49 bps | 293 bps | |||||||||||||
R&D Expense % | 9.2 | % | 9.0 | % | 9.8 | % | 27 bps | (57) bps | |||||||||||||
SG&A Expense % | 11.3 | % | 11.3 | % | 12.4 | % | (4) bps | (117) bps | |||||||||||||
Operating Expenses | $ | 276 | $ | 266 | $ | 234 | 3.7 | % | 18.0 | % | |||||||||||
Operating Income | $ | 233 | $ | 223 | $ | 132 | 4.2 | % | 75.7 | % | |||||||||||
Operating Margin | 17.3 | % | 17.0 | % | 12.6 | % | 27 bps | 468 bps | |||||||||||||
Net Earnings Attributable to Coherent Corp. | $ | 150 | $ | 127 | $ | 55 | 18.2 | % | 172.2 | % | |||||||||||
Diluted Earnings Per Share | $ | 0.74 | $ | 0.61 | $ | 0.16 | $ | 0.13 | $ | 0.58 | |||||||||||
(1) The Company has disclosed financial measurements in earnings release that present financial information considered to be non-GAAP financial measures. These measurements are not a substitute for GAAP measurements, although the Company's management uses these measurements as an aid in monitoring the Company's on-going financial performance. The non-GAAP net earnings attributable to Coherent Corp., the non-GAAP diluted earnings per share, the non-GAAP operating income, the non-GAAP gross margin, the non-GAAP research and development, the non-GAAP selling, general and administration, the non-GAAP operating expenses, the non-GAAP interest and other (income) expense, and the non-GAAP income tax (benefit), measure earnings and operating income (loss), respectively, excluding non-recurring or unusual items that are considered by management to be outside the Company’s standard operation and excluding certain non-cash items. EBITDA is an adjusted non-GAAP financial measurement that is considered by management to be useful in measuring the profitability between companies within the industry by reflecting operating results of the Company excluding non-operating factors. There are limitations associated with the use of non-GAAP financial measures, including that such measures may not be entirely comparable to similarly titled measures used by other companies, due to potential differences among calculation methodologies. Thus, there can be no assurance whether (i) items excluded from the non-GAAP financial measures will occur in the future or (ii) there will be cash costs associated with items excluded from the non-GAAP financial measures. The Company compensates for these limitations by using these non-GAAP financial measures as supplements to GAAP financial measures and by providing the reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measures. Investors should consider adjusted measures in addition to, and not as a substitute for, or superior to, financial performance measures prepared in accordance with GAAP. All non-GAAP amounts exclude certain adjustments for share-based compensation, acquired intangible amortization expense, restructuring charges (recoveries), integration and site consolidation expenses, integration transaction expenses, start-up costs related to the start-up of new devices for new customer applications, and various one-time adjustments. See Table 6 for the Reconciliation of GAAP measures to non-GAAP measures.
Product Highlights First Quarter Fiscal 2025
- Lasers for silicon photonics: We announced a family of high-efficiency lasers to power 1.6T optical transceivers based on silicon photonics.
- Datacom transceiver multi-technology demonstration: At the European Conference on Optical Communications (ECOC’ 24) we demonstrated optical transceivers showcasing our differential EML and silicon photonics platforms
- ECOC’24 award for Data Center Innovation: Our Optical Circuit Switch (OCS) won the Best Product award.
- Launched industry’s first high optical output power L-band 800G ZR/ZR+ coherent transceiver.
- New industrial fiber laser: We announced our EDGE fiber laser series, a culmination of innovations to redefine value with best-in-class performance.
Business Outlook – Second Quarter Fiscal 2025
- Revenue for the second quarter of fiscal 2025 is expected to be between
$1.33 billion and$1.41 billion . - Gross margin percentage for the second quarter of fiscal 2025 is expected to be between
36% and38% on a non-GAAP basis. - Total operating expenses for the second quarter of fiscal 2025 are expected to be between
$275 million and$295 million on a non-GAAP basis. - Tax rate for the second quarter of fiscal 2025 is expected to be between
19% and22% on a non-GAAP basis. - EPS for the second quarter of fiscal 2025 is expected to be between
$0.61 and$0.77 on a non-GAAP basis.
Investor Conference Call / Webcast Details
Coherent will review the Company’s financial results for its first quarter of fiscal 2025 and business outlook on Wednesday, November 6, at 5:00 p.m. ET. A live webcast of the conference call will be available on the Investor Relations section of the Company’s website at coherent.com/company/investor-relations. The Company’s financial guidance will be limited to the comments on its public quarterly earnings call and the public business outlook statements contained in this press release.
The conference call will be recorded, and a replay will be available to interested parties who are unable to attend the live webcast starting on or about November 7, 2024.
Additional Information and Where to Find It
In connection with the conference call described above, the Company intends to post an investor presentation on the Company’s website at coherent.com/company/investor-relations/investor-presentations after market close on November 6, 2024. We also from time to time may post important information for investors on our website at coherent.com/company/investor-relations. We intend to use our website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should review the Investor Relations page of our website referenced above, in addition to following the Company’s press releases, SEC filings, and public conference calls, presentations, and webcasts. Investors and security holders are able to obtain free copies of these documents through the Company’s website referenced above. Copies of the documents filed by the Company with the SEC may be obtained free of charge on the Company’s website at coherent.com/company/investor-relations/sec-filings. The information contained on, or that may be accessed through, the Company’s website is not incorporated by reference into, and is not part of, this release.
Forward-Looking Statements
This press release contains statements, estimates and projections that constitute “forward-looking statements” as defined under U.S. federal securities laws – including statements about our ability to unlock significant long-term shareholder value and our estimates and projections for our business outlook for the second quarter of fiscal 2025, each of which is made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 and relate to the Company’s performance on a going-forward basis. The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause the Company’s actual results to differ materially from its historical experience and our present expectations or projections.
The Company believes that all forward-looking statements made by it herein have a reasonable basis, but there can be no assurance that management’s expectations, beliefs, or projections as expressed in the forward-looking statements will actually occur or prove to be correct. In addition to general industry and global economic conditions, factors that could cause actual results to differ materially from those discussed in the forward-looking statements herein include but are not limited to: (i) the failure of any one or more of the assumptions stated herein to prove to be correct; (ii) the risks relating to forward-looking statements and other “Risk Factors” identified from time to time in our filings with the Securities and Exchange Commission (“SEC”), including our Annual Report on Form 10-K for the year ended June 30, 2024, and subsequently filed Quarterly Reports on Form 10-Q, which filings are available from the SEC; (iii) the substantial indebtedness the Company incurred in connection with its acquisition of Coherent, Inc. (the “Transaction”), the need to generate sufficient cash flows to service and repay such debt, and the Company’s ability to generate sufficient funds to meet its anticipated debt reduction goals; (iv) the possibility that the Company may not be able to continue its integration progress and/or take other restructuring actions, or otherwise be able to achieve expected synergies, operating efficiencies including greater scale, focus, resiliency, and lower operating costs, and other benefits within the expected time frames or at all and ultimately to successfully fully integrate the operations of Coherent with those of the Company; (v) the possibility that such integration and/or the restructuring actions may be more difficult, time-consuming, or costly than expected or that operating costs and business disruption (including, without limitation, disruptions in relationships with employees, customers, or suppliers) may be greater than expected in connection with the Transaction and/or the restructuring actions; (vi) any unexpected costs, charges, or expenses resulting from the Transaction and/or the restructuring actions; (vii) the risk that disruption from the Transaction and/or the restructuring actions materially and adversely affects the respective businesses and operations of the Company and Coherent, Inc.; (viii) potential adverse reactions or changes to business relationships resulting from the completion of the Transaction and/or the restructuring actions; (ix) the ability of the Company to retain and hire key employees; (x) the purchasing patterns of customers and end users; (xi) the timely release of new products and acceptance of such new products by the market; (xii) the introduction of new products by competitors and other competitive responses; (xiii) the Company’s ability to assimilate other recently acquired businesses, and realize synergies, cost savings, and opportunities for growth in connection therewith, together with the risks, costs, and uncertainties associated with such acquisitions; (xiv) the Company’s ability to devise and execute strategies to respond to market conditions; (xv) the risks to realizing the benefits of investments in R&D and commercialization of innovations; (xvi) the risks that the Company’s stock price will not trade in line with industrial technology leaders; and/or (xvii) the risks of business and economic disruption related to worldwide health epidemics or outbreaks that may arise. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Company disclaims any obligation to update information contained in these forward-looking statements, whether as a result of new information, future events or developments, or otherwise.
About Coherent
Coherent empowers market innovators to define the future through breakthrough technologies, from materials to systems. We deliver innovations that resonate with our customers in diversified applications for the industrial, communications, electronics, and instrumentation markets. Coherent has research and development, manufacturing, sales, service, and distribution facilities worldwide. For more information, please visit us at coherent.com.
Contact:
Paul Silverstein
Senior VP, Investor Relations & Corporate Communications
investor.relations@coherent.com
Table 2 | ||||||||||||
Coherent Corp. and Subsidiaries | ||||||||||||
Condensed Consolidated Statements of Earnings (Loss)* | ||||||||||||
THREE MONTHS ENDED | ||||||||||||
Sep 30, | Jun 30, | Sep 30, | ||||||||||
$ Millions, except per share amounts (unaudited) | 2024 | 2024 | 2023 | |||||||||
Revenues | $ | 1,348.1 | $ | 1,314.4 | $ | 1,053.1 | ||||||
Costs, Expenses & Other Expense (Income) | ||||||||||||
Cost of goods sold | 888.0 | 882.4 | 746.2 | |||||||||
Research and development | 131.6 | 126.7 | 113.5 | |||||||||
Selling, general and administrative | 229.0 | 228.0 | 211.7 | |||||||||
Restructuring charges | 24.4 | 14.1 | 3.0 | |||||||||
Interest expense | 66.6 | 67.8 | 73.3 | |||||||||
Other expense (income), net | (10.7 | ) | (14.5 | ) | (6.3 | ) | ||||||
Total Costs, Expenses, & Other Expense | 1,328.8 | 1,304.5 | 1,141.4 | |||||||||
Earnings (Loss) Before Income Taxes | 19.3 | 9.9 | (88.3 | ) | ||||||||
Income Taxes | (5.6 | ) | 56.9 | (20.8 | ) | |||||||
Net Earnings (Loss) | 24.9 | (47.0 | ) | (67.5 | ) | |||||||
Net Earnings (Loss) Attributable to Noncontrolling Interests | (1.0 | ) | 1.4 | — | ||||||||
Net Earnings (Loss) Attributable to Coherent Corp. | $ | 25.9 | $ | (48.4 | ) | $ | (67.5 | ) | ||||
Less: Dividends on Preferred Stock | 31.8 | 31.4 | 30.2 | |||||||||
Net Loss Available to the Common Shareholders | $ | (5.9 | ) | $ | (79.9 | ) | $ | (97.7 | ) | |||
Basic Loss Per Share | $ | (0.04 | ) | $ | (0.52 | ) | $ | (0.65 | ) | |||
Diluted Loss Per Share | $ | (0.04 | ) | $ | (0.52 | ) | $ | (0.65 | ) | |||
Average Shares Outstanding - Basic | 153.6 | 152.6 | 150.3 | |||||||||
Average Shares Outstanding - Diluted | 153.6 | 152.6 | 150.3 | |||||||||
*Amounts may not recalculate due to rounding. |
Table 3 | |||||||
Coherent Corp. and Subsidiaries | |||||||
Condensed Consolidated Balance Sheets* | |||||||
September 30 3030, | June 30, | ||||||
$ Millions (unaudited) | 2024 | 2024 | |||||
Assets | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 1,019.6 | $ | 926.0 | |||
Restricted cash, current | 51.4 | 174.0 | |||||
Accounts receivable | 819.7 | 848.5 | |||||
Inventories | 1,386.1 | 1,286.4 | |||||
Prepaid and refundable income taxes | 25.2 | 26.9 | |||||
Prepaid and other current assets | 328.1 | 398.2 | |||||
Total Current Assets | 3,630.3 | 3,660.1 | |||||
Property, plant & equipment, net | 1,875.3 | 1,817.3 | |||||
Goodwill | 4,595.6 | 4,464.3 | |||||
Other intangible assets, net | 3,514.7 | 3,503.2 | |||||
Deferred income taxes | 53.6 | 41.0 | |||||
Restricted cash, non-current | 711.4 | 689.6 | |||||
Other assets | 318.4 | 313.1 | |||||
Total Assets | $ | 14,699.3 | $ | 14,488.6 | |||
Liabilities, Mezzanine Equity and Equity | |||||||
Current Liabilities | |||||||
Current portion of long-term debt | $ | 69.9 | $ | 73.8 | |||
Accounts payable | 689.7 | 631.5 | |||||
Operating lease current liabilities | 41.9 | 40.6 | |||||
Accruals and other current liabilities | 556.5 | 597.9 | |||||
Total Current Liabilities | 1,358.0 | 1,343.8 | |||||
Long-term debt | 3,918.8 | 4,026.4 | |||||
Deferred income taxes | 751.1 | 784.4 | |||||
Operating lease liabilities | 176.4 | 162.4 | |||||
Other liabilities | 226.3 | 225.4 | |||||
Total Liabilities | 6,430.7 | 6,542.4 | |||||
Total Mezzanine Equity | 2,396.6 | 2,364.8 | |||||
Total Coherent Corp. Shareholders' Equity | 5,501.1 | 5,210.1 | |||||
Noncontrolling interests | 370.9 | 371.4 | |||||
Total Equity | 5,872.0 | 5,581.5 | |||||
Total Liabilities, Mezzanine Equity and Equity | $ | 14,699.3 | $ | 14,488.6 | |||
*Amounts may not recalculate due to rounding. |
Table 4 | ||||||||
Coherent Corp. and Subsidiaries | ||||||||
Condensed Consolidated Statements of Cash Flows* | THREE MONTHS ENDED | |||||||
Sep 30, | Sep 30, | |||||||
$ Millions (unaudited) | 2024 | 2023 | ||||||
Cash Flows from Operating Activities | ||||||||
Net cash provided by operating activities | $ | 153.0 | $ | 198.8 | ||||
Cash Flows from Investing Activities | ||||||||
Additions to property, plant & equipment | (92.0 | ) | (62.2 | ) | ||||
Proceeds from the sale of business | 27.0 | — | ||||||
Other investing activities | (0.8 | ) | (2.0 | ) | ||||
Net cash used in investing activities | (65.7 | ) | (64.2 | ) | ||||
Cash Flows from Financing Activities | ||||||||
Payments on existing debt | (117.9 | ) | (18.7 | ) | ||||
Proceeds from exercises of stock options and purchases under employee stock purchase plan | 24.4 | 14.9 | ||||||
Payments in satisfaction of employees' minimum tax obligations | (32.0 | ) | (13.9 | ) | ||||
Other financing activities | (0.2 | ) | (0.3 | ) | ||||
Net cash used in financing activities | (125.7 | ) | (17.9 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | 31.2 | (9.5 | ) | |||||
Net increase (decrease) in cash and cash equivalents | (7.2 | ) | 107.3 | |||||
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period | 1,789.7 | 837.6 | ||||||
Cash, Cash Equivalents, and Restricted Cash at End of Period | $ | 1,782.5 | $ | 944.9 | ||||
*Amounts may not recalculate due to rounding. |
Table 5 | ||||||||||
Segment Revenues* | ||||||||||
THREE MONTHS ENDED | ||||||||||
$ Millions, except percentage amounts (unaudited) | Sep 30, | Jun 30, | Sep 30, | |||||||
2024 | 2024 | 2023 | ||||||||
Revenues: | ||||||||||
Networking | $ | 762.9 | $ | 679.8 | $ | 472.9 | ||||
Materials | 237.4 | 279.3 | 244.6 | |||||||
Lasers | 347.8 | 355.3 | 335.6 | |||||||
Consolidated | $ | 1,348.1 | $ | 1,314.4 | $ | 1,053.1 | ||||
*Amounts may not recalculate due to rounding.
Table 6 | |||||||||||||
Reconciliation of GAAP Measures to Non-GAAP Measures* | |||||||||||||
THREE MONTHS ENDED | |||||||||||||
Sep 30, | Jun 30, | Sep 30, | |||||||||||
$ Millions, except per share amounts (unaudited) | 2024 | 2024 | 2023 | ||||||||||
Gross margin on GAAP basis | $ | 460.1 | $ | 432.0 | $ | 306.9 | |||||||
Share-based compensation | 5.7 | 5.0 | 7.4 | ||||||||||
Amortization of acquired intangibles | 30.4 | 30.4 | 30.8 | ||||||||||
Integration, site consolidation and other(1) | 12.4 | 22.0 | 21.3 | ||||||||||
Gross margin on non-GAAP basis | $ | 508.6 | $ | 489.4 | $ | 366.4 | |||||||
Research and development on GAAP basis | $ | 131.6 | $ | 126.7 | $ | 113.5 | |||||||
Share-based compensation | (5.3 | ) | (5.2 | ) | (8.0 | ) | |||||||
Amortization of acquired intangibles | (0.7 | ) | (0.6 | ) | (0.6 | ) | |||||||
Start-up costs(2) | — | — | (0.4 | ) | |||||||||
Integration, site consolidation and other(1) | (1.3 | ) | (3.2 | ) | (1.4 | ) | |||||||
Research and development on non-GAAP basis | $ | 124.3 | — | $ | 117.7 | $ | 103.1 | ||||||
Selling, general and administrative on GAAP basis | $ | 229.0 | $ | 228.0 | $ | 211.7 | |||||||
Share-based compensation | (24.5 | ) | (18.5 | ) | (29.1 | ) | |||||||
Amortization of acquired intangibles | (40.8 | ) | (40.7 | ) | (41.3 | ) | |||||||
Integration, site consolidation and other(1) | (11.9 | ) | (20.3 | ) | (10.4 | ) | |||||||
Selling, general and administrative on non-GAAP basis | $ | 151.8 | $ | 148.5 | $ | 130.9 | |||||||
Restructuring charges on GAAP basis | $ | 24.4 | $ | 14.1 | $ | 3.0 | |||||||
Restructuring charges(3) | (24.4 | ) | (14.1 | ) | (3.0 | ) | |||||||
Restructuring charges on non-GAAP basis | $ | — | $ | — | $ | — | |||||||
Operating income (loss) on GAAP basis | $ | 75.2 | $ | 63.2 | $ | (21.3 | ) | ||||||
Share-based compensation | 35.5 | 28.7 | 44.5 | ||||||||||
Amortization of acquired intangibles | 71.9 | 71.7 | 72.7 | ||||||||||
Start-up costs(2) | — | — | 0.4 | ||||||||||
Restructuring charges(3) | 24.4 | 14.1 | 3.0 | ||||||||||
Integration, site consolidation and other(1) | 25.6 | 45.5 | 33.1 | ||||||||||
Operating income on non-GAAP basis | $ | 232.6 | $ | 223.2 | $ | 132.4 | |||||||
Table 6 | ||||||||||||
Reconciliation of GAAP Measures to Non-GAAP Measures* | ||||||||||||
(Continued) | THREE MONTHS ENDED | |||||||||||
Sep 30, | Jun 30, | Sep 30, | ||||||||||
$ Millions, except per share amounts (unaudited) | 2024 | 2024 | 2023 | |||||||||
Interest and other (income) expense, net on GAAP basis | $ | 55.9 | $ | 53.3 | $ | 67.0 | ||||||
Foreign currency exchange gains (losses), net | (9.8 | ) | (0.9 | ) | 0.7 | |||||||
Transaction fees and financing(4) | — | (2.0 | ) | — | ||||||||
Interest and other (income) expense, net on non-GAAP basis | $ | 46.1 | $ | 50.4 | $ | 67.7 | ||||||
Income taxes on GAAP basis | $ | (5.6 | ) | $ | 56.9 | $ | (20.8 | ) | ||||
Tax impact of non-GAAP measures | 31.9 | 33.8 | 30.5 | |||||||||
Tax windfall from share-based compensation(5) | 10.9 | — | — | |||||||||
Tax impact of valuation allowance for deferred tax assets(6) | 0.6 | (46.0 | ) | — | ||||||||
Income taxes on non-GAAP basis | $ | 37.8 | $ | 44.7 | $ | 9.7 | ||||||
Net earnings (loss) attributable to Coherent Corp. on GAAP basis | $ | 25.9 | $ | (48.4 | ) | $ | (67.5 | ) | ||||
Share-based compensation | 35.5 | 28.7 | 44.5 | |||||||||
Amortization of acquired intangibles | 71.9 | 71.7 | 72.7 | |||||||||
Foreign currency exchange (gains) losses | 9.8 | 0.9 | (0.7 | ) | ||||||||
Restructuring charges(3) | 24.4 | 14.2 | 3.0 | |||||||||
Integration, site consolidation and other(1) | 25.6 | 45.5 | 33.1 | |||||||||
Transaction fees and financing(4) | — | 2.0 | — | |||||||||
Start-up costs(2) | — | — | 0.4 | |||||||||
Tax impact of non-GAAP measures | (31.9 | ) | (33.8 | ) | (30.5 | ) | ||||||
Tax windfall from share-based compensation(5) | (10.9 | ) | — | — | ||||||||
Tax impact of valuation allowance for deferred tax assets(6) | (0.6 | ) | 46.0 | — | ||||||||
Net earnings attributable to Coherent Corp. on non-GAAP basis | $ | 149.7 | $ | 126.6 | $ | 55.0 | ||||||
Per share data: | ||||||||||||
Net loss on GAAP basis | ||||||||||||
Basic Loss Per Share | $ | (0.04 | ) | $ | (0.52 | ) | $ | (0.65 | ) | |||
Diluted Loss Per Share | $ | (0.04 | ) | $ | (0.52 | ) | $ | (0.65 | ) | |||
Net earnings on non-GAAP basis | ||||||||||||
Basic Earnings Per Share | $ | 0.77 | $ | 0.62 | $ | 0.16 | ||||||
Diluted Earnings Per Share | $ | 0.74 | $ | 0.61 | $ | 0.16 | ||||||
*Amounts may not recalculate due to rounding.
(1) Integration, site consolidation and other costs include retention and severance payments, expenses not included in restructuring charges related to site closures as well as other integration costs related to the acquisition of Coherent, Inc. Refer to table 7 for a more detailed description of these costs on a consolidated basis.
(2) Start-up costs in operating expenses were related to the start-up of new devices for new customer applications.
(3) Restructuring charges include loss on sale of a facility, severance, non-cash impairment charges for production assets and improvements on leased facilities and other costs related to the 2023 Restructuring Plan.
(4) Transaction fees and financing includes debt extinguishment costs and various fees related to closing the Coherent transaction.
(5) Windfall tax benefits were recorded on the vesting of share-based compensation.
(6) Valuation allowance adjustments were related to an increase (decrease) in valuation allowance related to certain deferred tax assets resulting from the Company’s cumulative GAAP net loss that is not recognized for non-GAAP purposes given the historical non-GAAP net earnings.
Table 7 | |||||||||||
Components of Integration, Site Consolidation and Other Costs Excluded from Non-GAAP Operating Income* | |||||||||||
THREE MONTHS ENDED | |||||||||||
Sep 30, | Jun 30, | Sep 30, | |||||||||
$ Millions (unaudited) | 2024 | 2024 | 2023 | ||||||||
Integration, site consolidation and other costs | |||||||||||
Consulting costs related to projects to integrate recent acquisitions into common technology systems and simplify legal entity structure | $ | 11.4 | $ | 6.5 | $ | 6.6 | |||||
Manufacturing inefficiencies related to sites being shut down as part of our 2023 Restructuring Plan or Synergy and Site Consolidation Plan | 6.7 | 10.3 | 9.8 | ||||||||
Charges for products that are end-of-life, including inventory, production equipment to produce those products | 4.4 | 4.9 | 6.5 | ||||||||
Overlapping labor and travel for consolidation of sites | 3.8 | 6.4 | 2.8 | ||||||||
Employee severance and retention costs for site consolidations as part of our Synergy and Site Consolidation Plan or other actions | (1.3 | ) | 4.2 | 3.5 | |||||||
Severance costs related to the retirement of our CEO/CFO/President | 0.6 | 13.2 | 1.7 | ||||||||
Accelerated depreciation for equipment and leasehold improvements at sites included in our Synergy and Site Consolidation Plan | — | — | 1.9 | ||||||||
Direct damages from substation power failure/fire at manufacturing sites | — | — | 0.3 | ||||||||
Integration, site consolidation and other costs | $ | 25.6 | $ | 45.5 | $ | 33.1 | |||||
Table 8 | |||||||||||||
Reconciliation of GAAP Net Earnings (Loss), EBITDA and Adjusted EBITDA * | |||||||||||||
THREE MONTHS ENDED | |||||||||||||
$ Millions, except percentage amounts (unaudited) | Sep 30, | Jun 30, | Sep 30, | ||||||||||
2024 | 2024 | 2023 | |||||||||||
Net earnings (loss) on GAAP basis | $ | 24.9 | $ | (47.0 | ) | $ | (67.5 | ) | |||||
Income taxes | (5.6 | ) | 56.9 | (20.8 | ) | ||||||||
Depreciation and amortization | 137.7 | 143.7 | 138.4 | ||||||||||
Interest expense | 66.6 | 67.8 | 73.3 | ||||||||||
Interest income | (12.8 | ) | (13.1 | ) | (3.7 | ) | |||||||
EBITDA(1) | $ | 210.8 | $ | 208.3 | $ | 119.7 | |||||||
EBITDA margin | 15.6 | % | 15.8 | % | 11.4 | % | |||||||
Share-based compensation | 35.5 | 28.7 | 44.5 | ||||||||||
Foreign currency exchange (gains) losses | 9.8 | 0.9 | (0.7 | ) | |||||||||
Start-up costs(3) | — | — | 0.4 | ||||||||||
Restructuring charges(4) | 24.4 | 14.2 | 3.0 | ||||||||||
Transaction fees and financing(5) | — | 2.0 | — | ||||||||||
Integration, site consolidation and other(6) | 25.6 | 45.5 | 33.1 | ||||||||||
Adjusted EBITDA(2) | 306.1 | 299.5 | 200.0 | ||||||||||
Less: adjusted EBITDA attributable to noncontrolling interests | 0.6 | (1.9 | ) | — | |||||||||
Adjusted EBITDA attributable to Coherent Corp. | $ | 306.7 | $ | 297.6 | $ | 200.0 | |||||||
Adjusted EBITDA margin attributable to Coherent Corp. | 22.8 | % | 22.6 | % | 19.0 | % | |||||||
*Amounts may not recalculate due to rounding.
(1) EBITDA is defined as earnings before interest expense, interest income, income taxes, depreciation and amortization.
(2) Adjusted EBITDA excludes non-GAAP adjustments for share-based compensation, certain restructuring, integration, and transaction expenses, debt extinguishment charges, start-up costs, and the impact of foreign currency exchange gains and losses.
(3) Start-up costs in operating expenses were related to the start-up of new devices for new customer applications.
(4) Restructuring charges include loss on sale of a facility, severance, non-cash impairment charges for production assets and improvements on leased facilities and other costs related to the 2023 Restructuring Plan.
(5) Transaction fees and financing includes debt extinguishment costs and various fees related to closing the Coherent transaction.
(6) Integration, site consolidation and other costs include retention and severance payments, expenses not included in restructuring charges related to site closures as well as other integration costs related to the acquisition of Coherent, Inc. Refer to table 7 for a more detailed description of these costs on a consolidated basis.
Table 9 | |||||||||||||
GAAP Earnings (Loss) Per Share Calculation* | |||||||||||||
THREE MONTHS ENDED | |||||||||||||
$ Millions, except per share amounts (unaudited) | Sep 30, | Jun 30, | Sep 30, | ||||||||||
2024 | 2024 | 2023 | |||||||||||
Numerator | |||||||||||||
Net loss attributable to Coherent Corp. | $ | 25.9 | $ | (48.4 | ) | $ | (67.5 | ) | |||||
Deduct Series B redeemable preferred dividends | (31.8 | ) | (31.4 | ) | (30.2 | ) | |||||||
Basic loss available to common shareholders | $ | (5.9 | ) | $ | (79.9 | ) | $ | (97.7 | ) | ||||
Diluted loss available to common shareholders | $ | (5.9 | ) | $ | (79.9 | ) | $ | (97.7 | ) | ||||
Denominator | |||||||||||||
Diluted weighted average common shares | 153.6 | 152.6 | 150.3 | ||||||||||
Basic loss per common share | $ | (0.04 | ) | $ | (0.52 | ) | $ | (0.65 | ) | ||||
Diluted loss per common share | $ | (0.04 | ) | $ | (0.52 | ) | $ | (0.65 | ) | ||||
*Amounts may not recalculate due to rounding.
Table 10 | |||||||||||||
Non-GAAP Earnings Per Share Calculation* | |||||||||||||
THREE MONTHS ENDED | |||||||||||||
$ Millions, except per share amounts (unaudited) | Sep 30, | Jun 30, | Sep 30, | ||||||||||
2024 | 2024 | 2023 | |||||||||||
Numerator | |||||||||||||
Net earnings attributable to Coherent Corp. on non-GAAP basis | $ | 149.7 | $ | 126.6 | $ | 55.0 | |||||||
Deduct Series B redeemable preferred dividends | (31.8 | ) | (31.4 | ) | (30.2 | ) | |||||||
Basic earnings available to common shareholders | $ | 117.9 | $ | 95.2 | $ | 24.8 | |||||||
Diluted earnings available to common shareholders | $ | 117.9 | $ | 95.2 | $ | 24.8 | |||||||
Denominator | |||||||||||||
Weighted average shares | 153.6 | 152.6 | 150.3 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Common stock equivalents | 4.9 | 3.8 | 1.9 | ||||||||||
Diluted weighted average common shares | 158.6 | 156.3 | 152.2 | ||||||||||
Basic earnings per common share on non-GAAP basis | $ | 0.77 | $ | 0.62 | $ | 0.16 | |||||||
Diluted earnings per common share on non-GAAP basis | $ | 0.74 | $ | 0.61 | $ | 0.16 | |||||||
*Amounts may not recalculate due to rounding.
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