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Here are 1-2 analogies to describe Coherent (COHR):

• The '3M' for advanced optical materials and laser technology.
• The 'Intel Inside' for lasers and advanced photonics.

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• Lasers and Laser Systems: Coherent manufactures a wide range of industrial, scientific, and medical lasers and complete laser systems for applications like materials processing, research, and healthcare.
• Optics and Optical Components: The company provides precision optics, coatings, and optical assemblies essential for manipulating and controlling light in various advanced systems and instruments.
• Semiconductor Materials and Equipment: Coherent produces advanced engineered materials, such as silicon carbide, and specialized equipment used in the manufacturing and packaging processes of semiconductor devices.
• Photonic Solutions: This category includes integrated photonic modules and subsystems that combine lasers, optics, and electronics for specific high-performance applications in markets such as communications, aerospace & defense, and life sciences.

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Coherent (COHR) Major Customers

Coherent (symbol: COHR) primarily sells its advanced lasers and photonics solutions to other companies, operating on a Business-to-Business (B2B) model. According to its SEC filings (most recently, its 10-K for the fiscal year ended September 30, 2023), no single customer accounted for 10% or more of Coherent's net sales in recent fiscal years. This indicates a diverse customer base rather than reliance on a few named major customers.

However, Coherent serves a broad range of customer companies across several key industries that integrate its technologies into their products or processes. The major categories of these customer companies include:

• Microelectronics Industry: These customers are companies involved in the manufacturing of semiconductors, microelectronic devices, and advanced displays. This includes leading-edge chip manufacturers, advanced packaging companies, and flat-panel display producers that utilize Coherent's lasers for critical processes such as annealing, patterning, dicing, and inspection in the production of integrated circuits, memory chips, and OLED/LCD displays.
• Industrial Manufacturing Sector: This category encompasses a wide array of manufacturers across various industrial applications. Customers include companies in automotive manufacturing, aerospace, general fabrication, and additive manufacturing (3D printing). They deploy Coherent's laser systems for high-precision materials processing tasks such as cutting, welding, marking, cladding, and surface treatment of diverse materials.
• Life Sciences and Medical Field: Customers in this sector are typically businesses and institutions focused on developing and manufacturing medical devices, diagnostic equipment, and conducting advanced research. This includes companies in biotechnology, pharmaceuticals, and medical diagnostics that integrate Coherent's photonics solutions into instruments for applications like flow cytometry, DNA sequencing, ophthalmology, surgical tools, and advanced medical imaging.
• Scientific, Aerospace, and Defense Markets: This segment includes government laboratories, universities, academic research institutions, and defense contractors. These customers leverage Coherent's high-performance lasers and optical components for fundamental scientific research, advanced instrumentation development, and specialized applications in aerospace and defense technologies.

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Jim Anderson, Chief Executive Officer

Jim Anderson was appointed CEO of Coherent Corp. on June 3, 2024. He brings over 25 years of experience in the technology and semiconductor industries. Prior to joining Coherent, Mr. Anderson served as President and CEO of Lattice Semiconductor Corporation from September 2018 to 2024, where he is credited with achieving a turnaround, with the company's stock price rising ten-fold. Before Lattice, he held senior leadership roles at Advanced Micro Devices (AMD), Intel, Broadcom (formerly Avago Technologies), and LSI Corporation.

Sherri Luther, Chief Financial Officer

Sherri Luther was named Chief Financial Officer and Treasurer of Coherent Corp. on October 11, 2024. She has over 30 years of strategic and financial operations experience. Ms. Luther joins Coherent from Lattice Semiconductor, where she was CFO since 2019. Before her tenure at Lattice, she spent 16 years at Coherent, Inc., prior to its acquisition, including as Corporate Vice President of Finance. Her earlier career included senior finance and accounting roles at companies such as Quantum, Ultra Network Technologies, and Arthur Andersen.

Giovanni Barbarossa, Chief Strategy Officer

Giovanni Barbarossa joined Coherent Corp. in 2012 and has served as Chief Strategy Officer since 2019. From 2019 to 2025, he was also President of the Materials Segment. From 2012 to 2019, Dr. Barbarossa was the Chief Technology Officer and President of the Laser Solutions Segment. Previously, Dr. Barbarossa was the President and Chief Executive Officer of Avanex Corporation until its merger with Bookham plc. into Oclaro, Inc. He was a member of Oclaro's Board of Directors from 2009 to 2012. Before joining Avanex pre-IPO in 2000, he held management responsibilities at British Telecom Labs, AT&T Bell Labs, Lucent Technologies, and Hewlett-Packard.

Rob Beard, Chief Legal and Global Affairs Officer

Rob Beard was appointed Chief Legal and Global Affairs Officer and Corporate Secretary of Coherent Corp. on October 21, 2024. He brings over 20 years of experience in the technology industry. Prior to Coherent, Mr. Beard was Chief Legal and Global Affairs Officer at Mastercard Incorporated. Before Mastercard, he spent nearly a decade at Micron Technology, Inc., serving as General Counsel and Corporate Secretary, where he led global legal, intellectual property, and ethics and compliance functions. While at Micron, he played a key role in promoting the U.S. CHIPS and Science Act. Earlier in his career, he was corporate counsel at Amazon's Lab 126 and an associate at law firms Weil Gotshal & Manges and Shearman & Sterling, focusing on M&A and capital markets transactions.

Christopher Dorman, Executive Vice President, Lasers

Christopher Dorman was appointed Executive Vice President, Lasers, in July 2023. He is responsible for the company’s global portfolio of laser products. Dr. Dorman has a long tenure with Coherent, having joined Coherent, Inc., in 2002 as a product manager and holding various business management roles. He established the blueprint for Coherent's world-class laser design and manufacturing facilities in Glasgow, Kaiserslautern, and Lübeck. He is currently Chair of the UK Photonics Leadership Group and Photonics Scotland. Dr. Dorman was recognized by Queen Elizabeth II with an OBE in 2019 for services to photonic and laser technology and exports.

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Key Risks to Coherent (COHR)

1. Market Cyclicality, Rapid Technological Change, and Evolving Industry Standards: Coherent's business is significantly exposed to cyclical market factors and the challenge of accurately forecasting market size, growth rates, and customer demands. The rapid pace of technological advancements and evolving industry standards necessitate substantial research and development (R&D) expenses, and a failure to adapt to these changes could adversely affect the business.
2. Dependence on Complex Manufacturing Processes and Limited Supply Chain Sources: The company's operations rely on intricate manufacturing processes and strategic materials sourced from a limited number of suppliers. Disruptions in the supply chain, including the availability of rare earth minerals and noble gases, could significantly impact production and overall business operations.
3. Product Failures, Defects, or Incompatibilities: Coherent faces considerable business risks stemming from the potential for its products to fail to meet specifications, be defective, or prove incompatible with intended end uses. Such issues could lead to substantial costs, including customer compensation, reduced revenue, and damage to the company's reputation, especially given its recent diversification and expansion of product offerings.

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Coherent (COHR) faces clear emerging threats primarily from significant architectural shifts in key end markets and intensifying global competition in its core industrial segments.

• Rapid Adoption of Co-Packaged Optics (CPO) in Data Centers: Hyperscale data centers are increasingly investing in and deploying Co-Packaged Optics (CPO) to integrate optical transceivers directly with switch ASICs. This architectural shift addresses the escalating power and density challenges of traditional pluggable optics. If CPO adoption accelerates faster and more broadly than anticipated, it could significantly diminish the market for Coherent's established pluggable transceiver products, a core part of its optical communications business, requiring substantial re-alignment and investment to maintain market relevance in this evolving space.
• Ascendant Lower-Cost Competitors in Industrial Lasers: Manufacturers, particularly from China, have significantly advanced their fiber laser technology and expanded their product portfolios. Companies like Maxphotonics and Raycus are increasingly offering sophisticated, high-power fiber lasers at highly competitive price points, directly challenging Coherent's historical leadership and premium market positioning in various industrial material processing applications. This trend threatens to erode Coherent's market share and put continuous pressure on profit margins in a critical business segment.

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Coherent Corp. (COHR) operates in several key markets, primarily categorized into Networking, Lasers, and Materials/Optoelectronic Components. The addressable markets for these main products and services are substantial and are projected to grow significantly in the coming years.

Networking Segment

This segment primarily focuses on optical transceivers and components for datacenter and communications applications, including those driven by artificial intelligence (AI) workloads.

• Data Center Interconnect (DCI) Market: The global data center interconnect market was estimated at USD 10.12 billion in 2024 and is projected to reach USD 20.37 billion by 2030, growing at a compound annual growth rate (CAGR) of 13.1% from 2025 to 2030. Other estimates place the global DCI market at USD 15.38 billion in 2025, reaching USD 25.89 billion in 2030 with a CAGR of 11.0%, or USD 16.24 billion in 2025, forecast to reach USD 32.63 billion by 2031 at a 14.98% CAGR. North America held a dominant market position in the DCI market in 2023, capturing over 35.8% share.
• Optical Transceiver Market: The global optical transceiver market in data centers is valued at USD 13.6 billion in 2024 and is projected to reach USD 25.0 billion by 2029, growing at a robust CAGR of 13.0%. The market for AI optical transceivers specifically grew from USD 3.13 billion in 2024 to USD 3.71 billion in 2025 and is expected to reach USD 8.95 billion by 2030, exhibiting a CAGR of 19.10%. Asia-Pacific is emerging as the fastest-growing region for optical transceivers.

Lasers Segment

Coherent's Lasers segment serves industrial customers in semiconductor capital equipment, display capital equipment, precision manufacturing, aerospace and defense, life sciences, and scientific research.

• Industrial Lasers Market: The global industrial lasers market size was valued at USD 21.21 billion in 2024 and is projected to grow from USD 23.90 billion in 2025 to USD 55.09 billion by 2032, exhibiting a CAGR of 12.7% during the forecast period. Another estimate for the global industrial lasers market size is USD 6.37 billion in 2025, expected to reach USD 8.17 billion by 2030 at a CAGR of 5.1%. The global market for industrial laser *systems* was valued at USD 9.1 billion in 2024 and is projected to grow at a 13.8% CAGR from 2025 to 2034. Asia Pacific dominated the global industrial lasers market with a 49.32% share in 2024.

Materials and Optoelectronic Components & Devices Segment

This segment markets engineered materials, optoelectronic devices, laser optics, thermoelectric components, and advanced ceramic and metal-matrix composite materials.

• Optoelectronics Market: The global optoelectronics market size was estimated at USD 9.31 billion in 2025 and is projected to surpass approximately USD 26.84 billion by 2034, representing a CAGR of 12.48%. Other sources estimate the global optoelectronics market size at USD 45.79 billion in 2025, forecast to climb to USD 59.12 billion by 2030 at a 5.24% CAGR, or USD 44.84 billion in 2022, projected to grow to USD 73.83 billion by 2030 with a CAGR of 6.7%.
• Optoelectronic Components Market: The global market for Optoelectronic Components was estimated at US$48.3 billion in 2024 and is projected to reach US$65.1 billion by 2030, growing at a CAGR of 5.1%. Another analysis suggests the global optoelectronic components market is expected to reach $60.9 billion by 2029, rising at a CAGR of 5.0%. The Asia Pacific segment procured the largest revenue share in the optoelectronic components market in 2022.

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Coherent (COHR) is expected to drive future revenue growth over the next 2-3 years through several key areas:

1. Growth in AI Datacenters and High-Speed Optical Modules: Coherent anticipates strong and continued revenue growth from its exposure to AI datacenters. This is primarily fueled by increasing demand for high-speed optical hardware, including the ramp-up of 800-gigabit transceivers through 2025-2026 and the subsequent scaling of 1.6-terabit transceivers, which have already commenced revenue shipments.
2. Telecom Recovery and Next-Generation Coherent Transceivers: The company has observed a recovery in its telecom business, with sequential and year-over-year revenue growth. This resurgence is driven by demand for data center interconnect (DCI) applications and renewed spending from service providers. Key products contributing to this growth include the ramp-up of new 100-gig, 400-gig, and 800-gig ZR/ZR+ coherent transceivers.
3. Expansion in Industrial Markets with New Products: While acknowledging some near-term macroeconomic uncertainties, Coherent is focused on long-term growth in industrial markets. The launch of new products such as the EDGE FL30 fiber laser, aimed at high-power cutting technology, and collaborations in areas like fusion energy, are positioned to enhance core offerings and drive future revenue.
4. Strategic Portfolio Optimization and Manufacturing Investments: Coherent is strategically optimizing its portfolio by divesting non-core assets, such as the Aerospace and Defense business, to focus on higher-growth sectors. Concurrently, the company is making significant investments in manufacturing facilities, including a new 6-inch indium phosphide line in Sherman, Texas, to boost capacity for critical technologies like EML and CW lasers, supporting future growth.
5. Multi-Year Customer Supply Deals: Diversified growth is also expected from multi-year supply agreements with key customers, such as the Apple VCSEL supply deal, which helps to de-risk growth by leveraging non-data center opportunities.

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Share Repurchases

• Coherent has not reported significant share repurchases made by the current public company (COHR) within the last 3-5 years. Net common equity issued for the fiscal year ending June 30, 2025, was approximately $0.151 billion, for 2024 was approximately $0.042 billion, and for 2023 was approximately $0.024 billion, indicating net issuance rather than repurchases during these periods.

Share Issuance

• In July 2022, II-VI Incorporated (which subsequently adopted the name Coherent Corp.) completed the acquisition of Coherent, Inc., involving the issuance of II-VI common shares as part of the consideration. Each share of the former Coherent common stock was converted into the right to receive $220.00 in cash and 0.91 of a share of II-VI common stock.
• Net total equity issued for the fiscal year ending June 30, 2023, was approximately $1.424 billion, reflecting the equity component of the acquisition.
• The company reported net common equity issued of approximately $0.151 billion for fiscal year 2025, $0.042 billion for fiscal year 2024, and $0.024 billion for fiscal year 2023.

Outbound Investments

• In July 2022, II-VI Incorporated acquired laser manufacturer Coherent, Inc., for an enterprise value of approximately $7 billion, leading to the combined company being named Coherent Corp.
• In August 2025, Coherent announced an agreement to sell its Aerospace and Defense business to private equity firm Advent for $400 million. The proceeds from this divestiture are intended for debt reduction.
• Coherent also entered into an agreement to sell its product division focused on tools for materials processing to Bystronic, with the proceeds aimed at debt reduction.

Capital Expenditures

• Coherent's capital expenditures are projected to remain elevated at approximately 8% of revenue in the coming years (post-FY2025) to support capacity expansion, before potentially decreasing to 7.5%.
• The primary focus of capital expenditures is on high-growth areas such as AI data centers and cloud infrastructure, driving capacity expansions to meet demand for products like 800-gig and 1.6T transceivers.
• Investing in capital expenditures and research and development (R&D) for long-term growth is considered the number one priority, with debt reduction as a close second.