Coherent (COHR.US) 2026 fiscal year second quarter conference call: CPO recently received a large order.

Recently, Coherent held its 2026 fiscal year second quarter earnings call. The company recently received a significantly large purchase order from a leading AI data center customer for their CPO solution, including new high-power continuous wave lasers that began shipping samples last year. Besides the outstanding performance of this solution, a key factor for the customer to work with Coherent is that the high-power continuous wave lasers are produced on the company's 6-inch Indium Phosphide production line at their Sherman, Texas plant. Coherent expects that this major design win will start generating initial revenue by the end of this calendar year, with more significant revenue contributions in the following year and beyond. The company is also collaborating with many other customers on CPO and NPO applications solutions based on Indium Phosphide and 200G VCSEL. In the second quarter, Coherent's OCS platform based on differentiated non-mechanical liquid crystal technology also made strong progress. Backlog orders for OCS increased in the second quarter, and the company now has over 10 customer partnerships. Shipments and backlog orders include systems of 64/64 and 320/320 scale, mostly leaning towards larger system sizes. Coherent expects OCS revenue to increase quarter over quarter in the current quarter and the coming quarters, as the company ramps up production capacity to meet the rapidly growing demand and expected addressable market opportunity of over $2 billion in the coming years. Q&A Session Host: Welcome to Coherent's 2026 fiscal year second quarter earnings call. Now, please welcome Coherent's Senior Vice President of Investor Relations, Paul Silverstein. Paul Silverstein: Thank you, host, and good afternoon everyone. Joining me today are Coherent's CEO Jim Anderson and CFO Sherri Luther. In today's call, we will review the financial and business performance of the second quarter of fiscal year 2026 and provide insights into the business outlook for the third quarter. Our financial news release can be found on the company's website in the Investor Relations section at coherent.com. I want to remind everyone that during the call, we may provide forecasts or other forward-looking statements about future events or the company's future financial performance. We caution you that these statements or forecasts are based on information currently available and actual results may differ significantly. We advise you to review the company's SEC filings, including 10-K, 10-Q, and 8-K reports, for important risk factors that could cause actual results to differ from forecasts or forward-looking statements. This call constitutes the company's formal guidance for the third quarter of fiscal year 2026. If there are any significant changes to this guidance after this call, we intend to update through press releases or public announcements, such as conference calls. In addition, during the call, we will reference both GAAP and non-GAAP financial metrics. By disclosing certain non-GAAP information, management aims to provide additional information for investors to further analyze the company's performance and potential trends. For historical periods, we provide reconciliations of these non-GAAP financial metrics with GAAP financial metrics in our financial news release and investor presentation, which can be found on our website in the Investor Relations section at coherent.com. Now let me turn the call over to our CEO, Jim Anderson. CEO Presentation Jim Anderson: Thank you, Paul, and thank you all for joining today's call. As a global leader in photonics technology and innovative solutions provider, Coherent is at the center of extraordinary expansion in optical network infrastructure, which enables significant growth in data traffic in scale