November 1, 2013—Laser and photonics components provider Coherent (Santa Clara, Calif., U.S.A.) reported a notable $49 million quarterly cash flow from operations and service revenues in the fourth quarter ending September 28, 2013. This brings the total cash generation of the fiscal year to $116 million, a record for the company.

Coherent also reported record service revenue growth of 22 percent quarter over quarter, and 27 percent year over year, mainly driven by a larger installed base of flat-panel displays, for which laser annealing is the primary method of production. The company’s microelectronics and materials processing segment saw double-digit growth of 12 percent in 2013, due to a larger number of flat-panel annealing systems. According to John Ambroseo, Coherent’s president and chief executive officer, the growth of full HD screens in smartphones places more restrictions on the manufacturing equipment, which is also good for service revenues.

The company also reported solid growth in advanced packaging with a marked increase in demand for new wafer inspection tools in the semiconductor industry.