Coherent CEO Predicts ‘Somewhat Quicker Recovery’ for Phones Than Cars
COVID-19 had a much bigger impact on Coherent’s bookings than on revenue in fiscal Q3 ended July 4, said CEO Andy Mattes on a Tuesday investor call. It supplies lasers for microelectronics and flat-panel display production and for materials processing.…
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Revenue grew 1.8% sequentially but declined 12.1% from the 2019 quarter. Its Q3 “proposal activity level” was more than 10% lower than Q2, said Mattes. April was the “low point,” with activity 40% below the Q3 average, he said. Coherent is “encouraged” that July proposals, defined as requests for quotes and “similar activity,” rebounded to levels “north of the Q2 average,” he said. Barring more lockdowns “in the months to come, this should be an early sign of recovery that could manifest itself in our Q1 booking” for the period ending early January, he said. “With consumer spending and habits worldwide being impacted by COVID, we would expect to see a somewhat quicker recovery” for smartphones than for “big-ticket items” like cars, he said. “We therefore expect a faster recovery across microelectronics than we would for materials processing.” The stock plunged 10.6% Wednesday, closing at $129.18.