Ii-vi Stock Earnings Reports

Coherent reported a record fiscal Q3 with revenue of ~$1.5B (up ~4% sequentially, 24% YoY), driven primarily by strong AI data-center demand and growth in telecom/DCI. Non-GAAP gross margin improved to 38.5% (up 30 bps sequentially, 490 bps YoY) as the company progresses toward its target of >40% non-GAAP gross margin. Key product and technology highlights include multi-technology 1.6T transceiver demonstrations (EML, VCSEL, silicon photonics) with an expected 1.6T ramp starting in the current calendar year, development progress on 3.2T (including a 400 Gb differential EML milestone), a growing portfolio of co-packaged optics (collaboration with NVIDIA), and an Optical Circuit Switch (OCS) platform expected to generate initial revenue in 2025. Coherent expanded indium phosphide capacity (over 3x YoY) and expects 6-inch indium phosphide volume production to begin next quarter, improving cost and throughput for EML and CW lasers. The company is pursuing portfolio optimization (exiting non-core device/module silicon carbide efforts, selling underutilized assets) and recorded $74M of GAAP restructuring charges in Q3. It paid down $136M of debt in Q3 (YTD paydown $386M), reducing leverage to 2.1x. Q4 guidance: revenue $1.425B–$1.575B; non-GAAP gross margin 37%–39%; non-GAAP operating expenses $290M–$310M; non-GAAP EPS $0.81–$1.01. Investor Day set for May 28 to provide longer-term roadmap and financial model.