Kirk's Market Thoughts Message Board

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Non-Tech : Kirk's Market Thoughts

COHR 139.28

-0.5%

Nov 14 9:30 AM EST

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To: Kirk © who wrote (25559)	8/14/2025 9:56:01 AM
From: Elroy	of 26513

I'd love to hear how much tariffs and reciprocal tariffs hurt their margins I breezed the conference call this morning. They said tariffs have almost not affect. And they said they have a significant US manufacturing base, so they think the way that semis get a "exemption" if they manufacture in the US, COHR would probably also get an exemption. It's all quite unclear, but tariffs are not the reason for the (what I consider) low gross margins for a high tech company. If you're going to invest in these guys, I would think you would want to know why gross margins are only 35%. That's NOT high tech. I think they don't make the key component in whatever they make. They buy it from some other company, and just package it into a module, so they can only charge for excellent packaging. But I (obviously) don't know. ADi's (analog semiconductors) gross margins are around 67%. ALAB (high end AI switches) around 80%. Hell, Micron's gross margins are about 42%, and they make commodity memory chips. 35% tells me they don't own the high tech portion of the photonics product.

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