Coherent Inc reported QQ4 2024 revenue of $1.314 billion, up 8.7% sequentially and 9.1% year-over-year, driven primarily by strength in the datacom transceiver business related to AI data-center deployments. Non-GAAP gross margin expanded to 37.2% (+135 bp QoQ), while GAAP gross margin rose to 32.9% (+255 bp) as the company resolved transitory margin pressures from Q3. Despite top-line strength and margin improvement, the quarter produced a GAAP net loss of about $79.9 million (EPS -$0.52) with a negative net income margin (~-6.1%), reflecting ongoing structural costs and tax dynamics. Cash generation remained solid: operating cash flow of $162 million and free cash flow of approximately $62 million in Q4, while total debt ended the period around $4.30 billion with unrestricted cash near $926 million. Management signaled a strategic portfolio review to reallocate capital to growth and profit engines, with explicit plans to divest noncore assets and accelerate deleveraging. The company plans to host an Investor and Analyst Meeting to articulate targets, including a longer-term gross margin framework and growth model. In the near term, management sees resilient datacom demand, continued softness in telecom and certain industrial end markets, and ongoing emphasis on pricing discipline and cost-improvement initiatives to push gross margins higher over time.