01—Abstract
Summary
Summary of the 10-K filed August 16, 2024. Cited figures are marked; the original filing is the authoritative source.
Coherent Corp. reported a decrease in total revenues for fiscal year 2024, reaching $4.71 billiona, 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 millionb 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 billionc 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.
02—Key points
Key Highlights
- Total 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.
- The company reported a net loss of $156 million for fiscal year 2024, an improvement from the $259 million net loss in fiscal year 2023.
- Gross margin as a percentage of revenue slightly decreased to 30.9% in FY2024 from 31.4% in FY2023.
- Research and development expenses were $479 million in FY2024, representing 10% of revenues, reflecting continued investment in new products and technologies.
- Selling, general, and administrative expenses decreased to $854 million in FY2024 from $1.04 billion in FY2023, partly due to lower amortization expenses.
- The 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.
- Total debt decreased to $4.1 billion as of June 30, 2024, compared to $4.31 billion as of June 30, 2023.
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2024, Coherent Corp. lost $0.03.
- Revenue$4.71B100.0%
- Cost of revenue−$3.25B69.1%
- Gross profit$1.46B30.9%
- Operating costs−$1.36B28.9%
- Operating income$96.1M2.0%
- Interest, other & tax−$252.3M5.4%
- Net income−$156.2M3.3%
Where FY2024 revenue went
$4.71B- Cost of revenue: $3.25B, 69% of revenue
- SG&A: $854.0M, 18% of revenue
- Operating income: $96.1M, 2.0% of revenue
- R&D: $478.8M, 10% of revenue
- Other operating costs: $27.1M, 0.6% of revenue
Kept 2.0% as operating incomeOperating income $96.1M · 2.0%Other operating costs $27.1M · 0.6%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed August 16, 2024Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $4.71B$5.16B | −8.8% |
| Cost of Revenue | $3.25B$3.54B | −8.2% |
| Gross Profit | $1.46B$1.62B | −10.0% |
| R&D Expenses | $478.79M$499.60M | −4.2% |
| SG&A Expenses | $854.00M$1.04B | −17.6% |
| Operating Expenses | $4.86B$5.52B | −12.0% |
| Operating Income | $96.12M-$37.12M | +358.9% |
| Net Income | -$156.15M-$259.46M | +39.8% |
| EPS (Basic) | $-1.84$-2.93 | +37.2% |
| EPS (Diluted) | $-1.84$-2.93 | +37.2% |
| Shares Outstanding (Basic) | 151.64M137.58M | +10.2% |
| Shares Outstanding (Diluted) | 151.64M137.58M | +10.2% |
05—Questions
Frequently Asked Questions
What was Coherent Corp.'s revenue performance in fiscal year 2024?
Coherent Corp.'s total revenues decreased by 9% to $4.71 billion in fiscal year 2024, down from $5.16 billion in fiscal year 2023. This decline was observed across all four of its reporting markets: industrial, communications, electronics, and instrumentation.
How did Coherent Corp. perform in terms of profitability in fiscal year 2024?
Coherent Corp. reported a net loss of $156 million for fiscal year 2024. While still a loss, this represents an improvement compared to the net loss of $259 million reported in fiscal year 2023. This improvement was driven by lower restructuring charges and reduced SG&A expenses, partly offset by lower revenues and less favorable sales mix.
What are the key segments for Coherent Corp. and how did they perform?
Coherent Corp. operates in three segments: Networking, Materials, and Lasers. All three segments experienced revenue decreases in fiscal year 2024. Materials saw the largest percentage decline (25%), followed by Networking (2%) and Lasers (5%). The Lasers segment reported an operating loss of $146 million in FY2024, an improvement from the $419 million operating loss in FY2023.
What significant investments or strategic moves did Coherent Corp. make recently?
Coherent Corp. received a $1 billion investment from Denso Corporation and Mitsubishi Electric Corporation into its Silicon Carbide LLC subsidiary, reducing Coherent's ownership to 75% but providing significant financial flexibility. The company also continues to invest heavily in R&D, with $479 million spent in FY2024, focusing on areas like AI datacom, advanced lasers, and semiconductor materials.
06—Continue