Coherent Corp - 6% PRF CONVERT 01/07/2023 USD 200 - Ser A

Strong Revenue Growth: Coherent reported a record revenue of $1.5 billion for Q3 FY2025, reflecting a 4% sequential increase and a 24% year-over-year growth. The growth was primarily driven by strong demand in the AI data center and telecom markets, with data center revenue increasing by 54% year-over-year.

Gross Margin Expansion: The non-GAAP gross margin improved to 38.5%, up 30 basis points sequentially and 490 basis points year-over-year, driven by higher revenue volumes and cost reduction initiatives. However, the company anticipates a slight decline in gross margin guidance for Q4 FY2025 due to potential product mix challenges.

1.6T Transceiver Ramp: Coherent is positioned for growth in the emerging 1.6T transceiver market, with expectations for revenue to start ramping in the current calendar year. The company showcased three distinct 1.6T transceiver designs at the Optical Fiber Communications Conference (OFC), reinforcing its technological leadership.