Core Insights - Coherent Corp. has introduced a new set of pluggable optical transceivers designed for data centers utilizing optical circuit switches (OCSs) [1][2] Group 1: Product Development - The new transceivers are optimized to handle an additional 3 dB of insertion loss caused by OCS, while still meeting the original IEEE-defined network insertion losses [2][3] - These transceivers support high-density 400G and 800G requirements in QSFP-DD and OSFP form factors, with reach capabilities of up to 6 km, targeting large hyperscale data centers [3][4] - Coherent plans to release OCS-optimized 1.6T FR8 transceivers in the near future [3] Group 2: Market Demand - The adoption of OCS in AI and machine learning applications is increasing due to its benefits in reducing cost, latency, and power consumption [2] - Customers in the AI sector are looking to deploy OCS without compromising the physical footprint of their data centers, maintaining 2 km and 6 km link capabilities [4] Group 3: Interoperability - Coherent's OCS-optimized transceivers are designed to interoperate with conventional transceivers when an OCS is not used, providing flexibility in deployment scenarios [4]

Core Insights - Coherent Corp. has introduced the industry's first 400 Gb/s Differential Electro-absorption Modulated Laser (D-EML), marking a significant advancement in high-speed optical networking technology for data centers [1][2]. Group 1: Product Innovation - The new 400G D-EML builds on the success of the previously recognized 200G D-EML, addressing challenges in optical transceiver designs for 1.6T and future 3.2T connectivity, driven by the rapid growth of AI infrastructure [2]. - The differential design of the D-EML effectively doubles the signal amplitude, significantly reducing overall power consumption and minimizing crosstalk, which enhances OMA and ER performance [2]. - An integrated on-chip termination network optimizes electrical performance, reducing the need for extensive signal pre-conditioning and improving signal integrity [2]. Group 2: Market Position and Future Plans - Coherent emphasizes its commitment to innovation and technology leadership, leveraging vertical integration capabilities to support the evolution of the data center market [3]. - The 400G D-EML will be demonstrated at OFC 2025 and will be available under controlled conditions upon request, while general availability of the 200G D-EML is expected in 2026 [3]. - Coherent invites attendees to visit booth 1519 at OFC 2025 in San Francisco to see demonstrations and learn more about its extensive portfolio of optical and semiconductor high-performance solutions [3]. Group 3: Company Overview - Coherent empowers market innovators through breakthrough technologies across various sectors, including industrial, communications, electronics, and instrumentation [4]. - The company has a global presence with research and development, manufacturing, sales, service, and distribution facilities [4].

Core Insights - Coherent Corp. has introduced the first 400 Gb/s Differential Electro-absorption Modulated Laser (D-EML), marking a significant advancement in high-speed optical networking technology for data centers [1][2]. Group 1: Product Innovation - The new 400G D-EML builds on the success of the previously recognized 200G D-EML, addressing challenges in optical transceiver designs for 1.6T and future 3.2T connectivity, driven by the rapid growth of AI infrastructure [2]. - The differential design of the D-EML effectively doubles the signal amplitude, which significantly reduces overall power consumption and minimizes crosstalk, leading to superior Optical Modulation Amplitude (OMA) and Extinction Ratio (ER) performance [2]. - An integrated on-chip termination network optimizes electrical performance, reducing the need for extensive signal pre-conditioning and enhancing signal integrity [2]. Group 2: Market Position and Future Plans - Coherent emphasizes its commitment to innovation and technology leadership, leveraging vertical integration capabilities to support the evolution of the data center market [3]. - The 400G D-EML will be demonstrated at OFC 2025 and will be available under controlled conditions upon request, while general availability of the 200G D-EML is expected in 2026 [3].

Core Insights - Coherent Corp. announced the sale of its epitaxial fabrication facility in Champaign, Illinois, as part of its strategy to optimize its manufacturing footprint [1] Company Overview - Coherent is a global leader in materials, networking, and lasers, focusing on empowering market innovators through breakthrough technologies [4] - The company operates research and development, manufacturing, sales, service, and distribution facilities worldwide [4] Facility Details - The Champaign facility spans 65,000 square feet and includes five G3 epi systems within 15,000 square feet of Class 1000 cleanrooms [2] - The facility is equipped for up to 10 epitaxial tools and has previously produced indium phosphide and gallium arsenide wafers ranging from 2 inches to 6 inches [2] - The site is located six miles from the University of Illinois at Urbana-Champaign and consists of four buildings with various fabrication and characterization equipment [2]

Core Insights - Coherent Corp. has introduced a high-performance embedded Optical Time Domain Reflectometer (eOTDR) in a QSFP package, featuring a 30 dB dynamic range for precise fiber diagnostics over spans up to 150 km [1][5] Industry Context - The demand for bandwidth is increasing, making real-time fiber-plant health monitoring essential for data center interconnects and telecom networks [2] - The eOTDR provides critical measurements such as absolute loss and reflection values, enhancing visibility into channel and system performance [2] Product Features - The QSFP eOTDR is part of Coherent's modular embedded OTDR family, featuring a CMIS-based interface for easy integration into routers [3] - Its pluggable format allows for in-service fiber health monitoring without the need for additional infrastructure investment, supporting a scalable "pay-as-you-grow" model [4] Company Positioning - Coherent is recognized for its leadership in embedded OTDR technology, addressing the needs of ultra-high-capacity fiber networks where real-time visibility and proactive maintenance are vital [5] - The company also offers complementary fiber monitoring tools, including optical channel monitors, to maximize uptime and optimize network performance [5]

Core Insights - Coherent Corp. has launched the 2x400G-FR4 Lite optical transceiver, designed for AI-driven data centers and high-speed Ethernet networks, featuring a 500-meter reach and reduced power consumption [1][2] - The demand for high-density, energy-efficient optical interconnects is driven by the growth of AI and ML workloads, with the new transceiver providing an alternative to conventional EML-based solutions [2] - The 2x400G-FR4 Lite utilizes silicon photonics technology, integrating a silicon photonics integrated circuit (PIC) to streamline production and reduce component count [3] Product Details - The 2x400G-FR4 Lite is optimized for high volume deployments and complements the existing 800G-DR8 transceiver, offering a more fiber-efficient design [1] - General availability of the 2x400G-FR4 Lite is planned for April 1, 2025, with samples currently available [4] Company Overview - Coherent Corp. focuses on delivering breakthrough technologies across various markets, including industrial, communications, electronics, and instrumentation [5]

Core Viewpoint - Coherent Corp. (COHR) has experienced a significant stock price decline of 21.5% over the past six months, underperforming compared to its industry and the broader market, which raises questions about the timing for potential investment [1][4]. Group 1: Stock Performance - COHR's stock closed at $65.4, which is 73.8% lower than its 52-week high of $113.6 [4]. - Industry peers, Cardlytics, Inc. (CDLX) and Blade Air Mobility, Inc. (BLDE), have also seen declines of 36% and 8.1%, respectively, during the same period [4]. Group 2: AI and Datacom Segment Growth - The rapid growth in AI is driving demand for Coherent's datacom products, particularly high-speed optical transceivers, which is expected to boost revenues [5]. - Shipments of 800G transceivers are increasing due to demand from hyperscalers, with management indicating that 1.6T transceivers will be a key revenue contributor by 2025, suggesting sustained growth beyond the current cycle [6]. Group 3: Telecom Segment Recovery - In the second quarter of fiscal 2025, the telecom segment's revenues grew by 11% year-over-year and 16% from the previous quarter, driven by new product launches [9]. - The telecom industry's recovery is linked to rising AI workloads, necessitating investments in higher-capacity interconnects and optical transport networks [10]. Group 4: Valuation and Financial Health - Coherent's stock is currently undervalued, trading at 16 times forward 12-month earnings per share, significantly lower than the industry average of 44.8 times [11]. - The trailing 12-month EV-to-EBITDA ratio for COHR is 10.2 times, compared to the industry's average of 46.5 times, indicating a favorable valuation [13]. - The company has a strong liquidity position with a current ratio of 2.67, surpassing the industry's 2.08, which reflects efficient short-term debt coverage [15][16]. Group 5: Revenue and Earnings Prospects - The Zacks Consensus Estimate projects COHR's fiscal 2025 revenues at $5.7 billion, representing a 21% increase year-over-year, with further growth anticipated in fiscal 2026 [18]. - Earnings per share for fiscal 2025 are estimated at $3.48, indicating over 100% year-over-year growth, with a 24% increase expected in fiscal 2026 [18]. Group 6: Investment Recommendation - Coherent is well-positioned to capitalize on the growing demand for datacom products driven by AI advancements, alongside a recovering telecom segment [19]. - The company's discounted valuation, robust liquidity, and strong revenue and earnings prospects present attractive investment opportunities [19][20].

Core Insights - Coherent Corp. announced a collaboration with NVIDIA to develop silicon photonics networking switches using co-packaged optics (CPO) to enhance connectivity in AI factories [1][2] - The partnership aims to accelerate the expansion of optical networking in data centers, addressing the growing demand for networking infrastructure as AI factories proliferate [2] - Coherent is positioned to benefit from the increasing importance of optical networking in data center architectures, with expectations for continued market growth driven by co-packaging technology [2] Company Overview - Coherent empowers market innovators through breakthrough technologies across various sectors, including industrial, communications, electronics, and instrumentation [3] - The company has a global presence with research and development, manufacturing, sales, service, and distribution facilities [3] - Coherent will showcase its optical networking technologies, including CPOs and enabling components, at the OFC 2025 event in San Francisco [2]

Core Insights - Coherent Corp. has announced a collaboration with NVIDIA to develop silicon photonics networking switches using co-packaged optics (CPO), aimed at enhancing connectivity for AI factories [1][2] - The partnership is expected to accelerate the growth of optical networking in data centers, which is crucial as AI factories expand and require advanced networking infrastructure [2] - Coherent is positioned to benefit from the increasing demand for optical networking technologies in data centers, as the market for these solutions is anticipated to grow significantly in the coming years [2] Company Overview - Coherent is a leader in photonics, providing innovative technologies across various sectors including industrial, communications, electronics, and instrumentation [3] - The company has a global presence with research and development, manufacturing, sales, service, and distribution facilities [3] Upcoming Events - Coherent will showcase its optical networking technologies, including CPOs and related components, at the OFC 2025 event scheduled for April 1-3 in San Francisco, California [2]

Core Insights - Coherent Corp. has launched a 2D Collimator Array, an advanced optical assembly for optical circuit switches (OCS), aimed at enhancing data centers for AI, ML, and HPC applications [1][2]. Company Overview - Coherent is recognized as a global leader in photonics, focusing on breakthrough technologies across various sectors including industrial, communications, electronics, and instrumentation [4]. Product Details - The 2D Collimator Array integrates a 2D lens array and a 2D fiber array, providing high port density, exceptional precision, and superior reliability, which enhances the performance of OCS systems [2]. - The product features a multi-beam input and output architecture, allowing for customization and co-design with customers, reinforcing Coherent's position as a trusted partner in optical solutions [2]. Market Position - The introduction of the 2D Collimator Array positions Coherent as a leader in next-generation optical switching technology, addressing the increasing demands of switching systems in AI and supercomputing [3].