Coherent, Inc. (NASDAQ:COHR) Q1 2024 Earnings Call Transcript

Jim Ricchiuti: Yes, the other question was just, and maybe I’ll just group this into one last question on the balance of that laser and industrial business. It sounds like you’re feeling relatively positive about the WFE portion of the business. Back-end semi, is that going to continue to be relatively weak? And are you assuming looking at precision manufacturing beyond the current quarter that the recovery there is still fairly uncertain? Is that a good way to characterize the outlook for this part of the business?

Chris Dorman: Yes, front end semi remains strong. The reasons for that are that, you know, the customer relationship in the front end semi market is a long-term roadmap. We engage, we partner with our customers in terms of developing that long-term roadmap. We develop lasers specifically for our partners in that area. And it’s more than a sale. The relationship lasts for 20-years in terms of one particular laser technology. The service component of the semi-cap business is very significant. And so we go on this long-term journey which gives us more certainty in the service business of the emergence of the semi-cap inspection market. So we get a great deal of visibility through our customers on that. In terms of back end, it is softer.

The recovery is taking longer, potentially the end of the fiscal year to see any change there. And in precision manufacturing, PMI, as Magnus mentioned before, the recovery is around the end of the year. But all of that, the precision manufacturing, the back end semi is offset by the strength in display and the strength in semiconductor coupled equipment way for inspection.

Chuck Mattera: Thank you, Chris.

Jim Ricchiuti: Thank you.

Chuck Mattera: Okay, Jim, thanks for your question.

Jim Ricchiuti: Thank you, yes.

Chuck Mattera: Okay, thanks.

Operator: And I’m not showing any further requests at this time. I’d like to turn the call back over to our host for any closing remarks.

Chuck Mattera: Kevin, thank you. And I want to thank all the analysts on the call for your thoughtful questions. As always, if we could be of any help throughout the quarter, please feel free to reach out. And I want to thank everybody for joining us this morning. Thank you.

Operator: Ladies and gentlemen, this does conclude today’s presentation. You may now disconnect and have a wonderful day.