Coherent CEO sees no signs of customers delay or cancel deliveries of ELAs
CEO John Ambroseo says: "There has been a lot of turbulence in the display market over the last several weeks, raising investors' concerns about the timing and/or sustainability of the investment cycle. We conducted a channel check and the results indicated no current sign of customers seeking to delay or cancel deliveries of existing ELA systems. We also reviewed fab utilization rates and system installations and concluded that service revenues are in-line with our expectations. During the quarter, orders from semicap applications were strong for expansion of memory capacity. We received our first volume order for high-power fiber lasers from one of the largest Chinese machine tool manufacturers. We also saw a solid uptick in medical device manufacturing workstations. We were pleased with our financial results for the first quarter of fiscal 2018, which enabled another EURO$75 million voluntary debt payment. We have now repaid approximately one third of the debt used to finance the Rofin transaction. In addition, as a result of our strong cash generation, our Board has approved a share repurchase authorization of up to $100 million."