Competitive PressuresRising competition in optical transceivers is leading to competitive pricing, potentially dragging down gross margins.
Financial PerformanceDespite restructuring efforts, COHR's gross margins remain below a critical baseline rate needed for price-to-earnings multiple expansion.
Growth ChallengesCOHR's sale of its aerospace and defense business creates significant growth headwinds, with the new Apple contract only expected to contribute in the future.