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SAN FRANCISCO - Coherent Corp. (NYSE: COHR), an $11 billion market cap company specializing in photonics, has announced the launch of a groundbreaking 400 Gb/s Differential Electro-absorption Modulated Laser (D-EML), marking a significant milestone in high-speed optical networking technology. This new offering is geared towards enhancing data center operations, especially as they scale to meet the demands of growing AI infrastructure. According to InvestingPro data, the company has shown strong revenue growth of 14.6% over the last twelve months, positioning it well in the expanding optical technology market.
The 400G D-EML is designed to address the challenges in optical transceiver designs for 1.6T and the forthcoming 3.2T connectivity requirements. It builds on the company’s previously recognized 200G D-EML technology. The differential design of the new D-EML stands out by doubling the signal amplitude, which reduces power consumption and minimizes crosstalk, leading to improved Optical Modulation Amplitude (OMA) and Extinction Ratio (ER) performance.
The integrated on-chip termination network of the D-EML is another feature that optimizes electrical performance, reducing the need for extensive signal pre-conditioning and thus enhancing signal integrity. This technology is intended for use in cost-effective, non-hermetic packaging solutions.
Dr. Beck Mason, Executive Vice President of Telecommunications at Coherent, highlighted the company’s dedication to innovation and technological leadership in the sector. He also acknowledged Ciena for their support with a DSP chip that facilitates the demonstration of the new laser. With 16 analysts recently revising their earnings expectations upward and a consensus recommendation of 1.84 (Strong Buy) according to InvestingPro, the market appears optimistic about the company’s technological initiatives.
The 400G D-EML will be showcased at the Optical Fiber Communication Conference and Exhibition (OFC) 2025, which will take place from April 1-3. The product will be available under controlled availability upon request. Meanwhile, the general availability of the 200G D-EML is projected for 2026.
Coherent’s extensive portfolio of optical and semiconductor high-performance solutions will be on display at OFC 2025, where industry professionals can engage with the latest technological advancements.
Based in Saxonburg, Pennsylvania, Coherent Corp. is a company that prides itself on empowering market innovators with cutting-edge technologies across various applications, including industrial, communications, electronics, and instrumentation markets. The company boasts a global presence with research and development, manufacturing, sales, service, and distribution facilities. With a healthy current ratio of 2.67 and strong revenue CAGR of 28% over the past five years, Coherent demonstrates solid financial fundamentals. For deeper insights into Coherent’s financial health and growth prospects, investors can access comprehensive analysis through InvestingPro, which offers detailed Pro Research Reports covering over 1,400 US stocks.
This news is based on a press release statement from Coherent Corp.
In other recent news, Coherent Corp. has announced the planned sale of its epitaxial fabrication facility in Champaign, Illinois, as part of its strategy to streamline manufacturing operations. The facility, which includes significant cleanroom space and equipment for wafer production, is up for sale, though no potential buyers or terms have been disclosed. Additionally, Coherent has introduced a new embedded Optical Time Domain Reflectometer (eOTDR) for fiber network diagnostics, designed to integrate seamlessly into existing systems, which will be showcased at the OFC 2025 event. The company also unveiled the 2x400G-FR4 Lite optical transceiver, aimed at AI-driven data centers, promising energy efficiency and compact design through silicon photonics technology.
In the realm of analyst ratings, Raymond James has upgraded Coherent’s stock from Outperform to Strong Buy, despite lowering the price target to $91.00. This upgrade is based on insights from industry events and a revised datacom optical model that anticipates strong demand for 800G solutions and growth in the A.I. backend transceiver market. The optical telecom market is reportedly recovering, with industrial lasers also showing signs of rebound. These developments underscore Coherent’s ongoing commitment to innovation in the photonics industry, addressing the needs of high-capacity fiber networks and evolving data center demands.
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