On May 6, local time, Coherent, a U.S. laser system solutions provider, announced its results for the first quarter of fiscal year 2024 ended September 30, 2023.
According to the financial report, in the third quarter of fiscal year 2024, Coherent achieved revenue of $1.209 billion. Non-GAAP earnings per share were $0.53, operating cash flow was $117 million, and $58 million of outstanding debt was served.
Backlog status
At the end of the quarter, the company's backlog was approximately $274 million, or 30%, of which $815 million was in the Lasers segment, $1,339 million in the Networking segment and $581 million in the Materials segment.
Analysis of different businesses and end markets
In terms of business segments: Lasers revenue was $351 million (29%), Networks revenue was $619 million (51%), and Materials revenue was $239 million (20%).
In terms of various application markets, the industrial market revenue was US$421 million (35%), the communications market revenue was US$616 million (51%), the electronics market revenue was US$74 million (6%), and the instrumentation market revenue was US$98 million (8%).
From different geographical regions
In terms of regions, the North American market revenue was US$688 million (57%), the European market revenue was US$182 million (15%), the Japanese and South Korean markets were US$155 million (13%), the Chinese market revenue was US$154 million (13%), and the other market revenue was US$30 million (2%).
High-level comments
Commenting on the quarter's results, Vincent Mattera, Chief Administrative Officer at Coherent, noted:
"Macroeconomic uncertainty continues to impact our near-term growth and visibility. The recovery of the telecom vertical has been slower than we had previously anticipated. We continued to see continued improvement in demand trends during the quarter, as well as signs of favorable company-specific trends. We expect revenue growth to continue to improve in the fourth quarter of fiscal 2024.
As previously announced, as we transform the company to improve operational performance, restructure our manufacturing sites to enhance operational resiliency, and complete the integration of legacy Coherent, Inc., we are exploring other strategic opportunities, excluding major acquisitions, to unlock shareholder value.
We continue to invest in our core assets, including our people, while taking strategic initiatives to increase our market opportunity and return on invested capital; At the same time, we are actively seizing opportunities to improve our business performance.
As previously announced, the Board is conducting a comprehensive process to select Coherent's fourth CEO in 53 years. This process is ongoing. ”
In addition, it is worth mentioning that Coherent is a leading global supplier of silicon carbide (SiC) substrates for power devices and RF end-market applications. Coherent expects revenue from its SiC business to be approximately $300 million in fiscal year 2024 ending June 30, 2024. The company has received two major orders from Infineon and Guangdong Tianyu Semiconductor, as well as a huge investment of $1 billion from two Japanese automakers, Denso and Mitsubishi Electric.
Outlook for the fourth quarter of fiscal 2024
For the fourth quarter of fiscal 2024 ending June 2024, Coherent currently expects revenue in the range of $1.23 billion to $1.32 billion, non-GAAP gross margin in the range of 36.0-37.5% and non-GAAP diluted earnings per share in the range of $0.52 to $0.68.
For the full fiscal year 2024, Coherent now expects revenue to be in the range of $4.62 billion to $4.70 billion, compared to the previous guidance of $4.55 billion to $4.70 billion, with a lower end of $70 million.
Note: The charts in this article are all from Coherent's earnings report and ofweek
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