On August 15, 2024, Coherent Corp (COHR, Financial) released its 8-K filing detailing the financial results for the fourth quarter and full year ended June 30, 2024. Coherent Corp, a leading manufacturer of engineered materials and optoelectronic components, operates in two segments: Photonic Solutions and Compound Semiconductors.
Performance Overview
Coherent Corp reported fourth-quarter revenue of $1.314 billion, surpassing the analyst estimate of $1.276 billion. The GAAP net loss per diluted share was $(0.52), while non-GAAP net income per diluted share stood at $0.61, significantly outperforming the estimated income of $0.29 per share. For the full fiscal year, the company achieved revenue of $4.708 billion, slightly above the annual estimate of $4.670 billion, with a GAAP net loss of $(1.84) per diluted share and non-GAAP net income of $1.67 per diluted share.
Key Financial Achievements
Coherent Corp's fourth-quarter revenue increased by 8.7% sequentially and 9.1% year-over-year, driven primarily by ongoing AI-related strength in the Datacom transceiver business. The GAAP gross margin improved to 32.9%, up from 30.3% in the previous quarter, while the non-GAAP gross margin rose to 37.2% from 35.8%.
Rich Martucci, Interim CFO, commented, "Our strong sequential revenue growth together with a GAAP gross margin improvement of 255 basis points and non-GAAP gross margin improvement of 145 basis points drove a sequential increase in GAAP and non-GAAP operating margin."
Income Statement Highlights
| Metric | Q4 FY24 | Q3 FY24 | Q4 FY23 |
|---|---|---|---|
| Revenue | $1,314 million | $1,209 million | $1,205 million |
| GAAP Gross Margin | 32.9% | 30.3% | 28.5% |
| Non-GAAP Gross Margin | 37.2% | 35.8% | 35.9% |
| GAAP Net Loss | $(48) million | $(13) million | $(178) million |
| Non-GAAP Net Income | $127 million | $113 million | $95 million |
Balance Sheet and Cash Flow
Coherent Corp ended the fourth quarter with $926 million in cash and $4.170 billion in gross debt, resulting in a net debt position of $3.244 billion. The company generated $162 million in operating cash flow and incurred $100 million in capital expenditures during the quarter.
Analysis and Outlook
Coherent Corp's robust performance in the fourth quarter, particularly in the AI-driven Datacom transceiver segment, underscores the company's potential for growth in emerging technologies. The improvement in both GAAP and non-GAAP gross margins reflects effective cost management and operational efficiencies. However, the company faces challenges, including a significant net debt position and the need to sustain revenue growth amid competitive pressures.
For more detailed insights and the complete financial tables, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Coherent Corp for further details.
