Summary
Coherent Corp. reported a decrease in total revenues for fiscal year 2024, reaching $4.71 billion, down from $5.16 billion in fiscal year 2023. This decline was observed across all four key markets: industrial, communications, electronics, and instrumentation, with the electronics market experiencing the most significant revenue drop. The company incurred a net loss of $156 million for fiscal year 2024, a notable improvement from the $259 million net loss in fiscal year 2023. This improved profitability was influenced by lower restructuring charges and reduced selling, general, and administrative expenses, partly due to cost-saving measures and lower amortization expenses. Despite the revenue contraction, Coherent continues to invest in research and development, particularly in areas like AI-related datacom transceivers and advanced semiconductor materials, indicating a strategic focus on future growth markets. Financially, Coherent managed its debt levels, with total debt decreasing to $4.1 billion from $4.31 billion. The company also secured significant funding through equity investments in its Silicon Carbide business, enhancing its financial flexibility. Coherent anticipates that its existing cash, operational cash flow, and borrowing capacity will be sufficient to meet its obligations through fiscal year 2025.
Financial Highlights
48 data points| Revenue | $4.71B |
| Cost of Revenue | $3.25B |
| Gross Profit | $1.46B |
| R&D Expenses | $478.79M |
| SG&A Expenses | $854.00M |
| Operating Expenses | $4.86B |
| Operating Income | $96.12M |
| Net Income | -$156.15M |
| EPS (Basic) | $-1.84 |
| EPS (Diluted) | $-1.84 |
| Shares Outstanding (Basic) | 151.64M |
| Shares Outstanding (Diluted) | 151.64M |
Key Highlights
- 1Total revenues for fiscal year 2024 decreased by 9% to $4.71 billion, compared to $5.16 billion in fiscal year 2023, with declines across all four key markets.
- 2The company reported a net loss of $156 million for fiscal year 2024, an improvement from the $259 million net loss in fiscal year 2023.
- 3Gross margin as a percentage of revenue slightly decreased to 30.9% in FY2024 from 31.4% in FY2023.
- 4Research and development expenses were $479 million in FY2024, representing 10% of revenues, reflecting continued investment in new products and technologies.
- 5Selling, general, and administrative expenses decreased to $854 million in FY2024 from $1.04 billion in FY2023, partly due to lower amortization expenses.
- 6The company received a $1 billion investment in its Silicon Carbide LLC subsidiary from Denso Corporation and Mitsubishi Electric Corporation, reducing Coherent's ownership to 75% and providing increased financial flexibility.
- 7Total debt decreased to $4.1 billion as of June 30, 2024, compared to $4.31 billion as of June 30, 2023.