As reported earlier, Needham analyst James Ricchiuti downgraded Coherent to Hold after its in-line Q1 results and "much weaker" than expected Q2 guidance along with withdrawn outlook FY19. The analyst says the decision to pull FY19 view is not surprising given the macro environment uncertainty, but the impact of sales mix and lower volume on margins - which was the lowest in 5 years - was disappointing. Ricchiuti remains concerned that there may be only little if any improvement in the display and materials processing businesses and that the performance in other areas of the business could also slow.