Coherent Inc. (NASDAQ:COHR) Q2 2018 Earnings Conference Call - Final Transcript
May 01, 2018 • 04:30 pm ET
Good day, ladies and gentlemen, and welcome to Coherent's Second Quarter Fiscal Year 2018 Financial Results Conference Call, hosted by Coherent, Inc. At this time, all participants are in a listen-only mode. At the conclusion of our prepared remarks, we will conduct a question-and-answer session.
As a reminder, this call is being recorded.
I would now like to introduce, Bret DiMarco, Executive Vice President and General Counsel. You may begin your conference.
Thank you, Britney, and good afternoon everyone. Welcome to today's conference call to discuss Coherent's results from the second fiscal quarter of fiscal 2018. On the call with me are John Ambroseo, our President and Chief Executive Officer; and Kevin Palatnik, our Executive Vice President and Chief Financial Officer.
I would like to remind everyone that some information provided during this call may include forward-looking statements including, without limitation, statements about Coherent's future events, anticipated financial results, business trends and the expected timing and benefit, if any, as such trend. These forward-looking statements may contain such words as outlook, future, expects, will, anticipates, intends or referred to as guidance.
These forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict and may cause actual results to vary significantly. These forward-looking statements reflect beliefs, estimates and predictions as of today, and Coherent expressly assumes no obligation to update any such forward-looking statements.
For a description of risks and uncertainties, which could impact these forward-looking statements, you are encouraged to review Coherent's periodic SEC filings, including its most recent Form 10-K, Form 10-Q and Forms 8-K including the risks identified in today's financial press release.
I will now turn the call over to John Ambroseo, our President and Chief Executive Officer.
Thanks, Bret. I'd like to welcome everyone to our second fiscal quarter conference call. I'm pleased to report that customer engagement remains high, demand was strong in a number of key areas and the display market has a lot of runway. So let's start there. After recycled reports on microLED displays were recently published, we feel that a number of enquiries about how this technology potentially affects the OLED market and Coherent.
I'd like to start by repeating some comments I made several quarters ago. The appeal of microLEDs is that they produce higher brightness and consume less power compared to other emissive devices such as LCDs, LEDs and OLEDs. The challenges in turning microLEDs into manufactured old displays include high process intensity and yield. There are two methods to make a full color in microLED display today.
The first is to grow the emitters on wafers where any wafer consists of a single color in the red, green or blue. Emitters from different colors are then forward transferred onto a display substrate. This involves separating the emitter from the growth substrate and using pick and place to relocate it to the display substrate.
The total number of pixels drive the number of pick and place operations. In the case