SANTA CLARA, Calif., Jan. 28 /PRNewswire-FirstCall/ -- Coherent,
Inc. (NASDAQ:COHR), a world leader in providing photonics based
solutions to the commercial and scientific research markets, today
announced financial results for its first fiscal quarter ended
January 2, 2010. FINANCIAL HIGHLIGHTS Three Months Ended
------------------ GAAP Results January 2, October 3, December 27,
(in millions except per share data) 2010 2009 2008 ---- ---- ----
Bookings $158.4 $133.4 $103.3 Net sales $122.8 $107.6 $124.4 Net
income (loss) $4.2 $(4.5) $(14.7) Diluted EPS $0.17 $(0.18) $(0.61)
Non-GAAP Results (in millions except per share data) Net income
(loss) $5.1 $(0.9) $8.6 Diluted EPS $0.21 $(0.04) $0.36 FIRST
FISCAL QUARTER DETAILS For the first fiscal quarter ended January
2, 2010, Coherent announced net sales of $122.8 million and net
income, on a U.S. generally accepted accounting principles (GAAP)
basis, of $4.2 million ($0.17 per diluted share). These results
compare to net sales of $124.4 million and net loss of $14.7
million, or $0.61 per share, for the first quarter of fiscal 2009.
Non-GAAP net income for the first quarter of fiscal 2010 was $5.1
million or $0.21 per diluted share and non-GAAP net income for the
first quarter of fiscal 2009 was $8.6 million, or $0.36 per diluted
share. Please see the reconciliation of GAAP to non-GAAP results
included on the last page of our release. Net sales for the fourth
quarter of fiscal 2009 were $107.6 million and net loss, on a GAAP
basis, was $4.5 million ($0.18 per share). Non-GAAP net loss for
the fourth quarter of fiscal 2009 was $0.9 million or $0.04 per
share. Bookings received during the three months ended January 2,
2010 of $158.4 million increased 53.3% from $103.3 million in the
same prior year period and increased by 18.7% compared to bookings
of $133.4 million in the immediately preceding quarter. The
book-to-bill ratio was 1.3, resulting in backlog of $202.8 million
at January 2, 2010 compared to a backlog of $164.3 million at
October 3, 2009 and a backlog of $162.0 million at December 27,
2008. We ended the quarter with cash and short term investments of
$240.6 million, a decrease of $3.0 million from cash and short term
investments of $243.6 million at October 3, 2009. The decrease
includes $15.0 million spent to acquire certain assets of
StockerYale, Inc. "There were a number of positive takeaways from
the first quarter, including increasing sales, a return to
profitability, good cash generation and very healthy bookings.
Orders were up significantly over the prior year period in all four
markets. We are particularly pleased with orders of approximately
$22 million for our Coherent Equinox(TM) solar production tools,
which are scheduled for delivery during fiscal 2010," said John
Ambroseo, Coherent's President and Chief Executive Officer. "Given
our backlog and outlook, we are raising our fiscal 2010 projection
for net sales to $525 to $550 million. To achieve this targeted
range, we are ramping production capacity and unwinding the
temporary cost containment measures implemented during fiscal
2009," he added. "I am also pleased to report that we are making
good progress on our product initiatives. The customer
qualifications of the DIAMOND(TM) E-1000 sealed CO2 laser is
progressing as planned and we will begin revenue shipments in our
third fiscal quarter. We have further enhanced our scientific
product portfolio with high performance devices to address new
applications in physics and chemistry. We also continue to
proliferate our OPSL platform with the introduction of the
Verdi(TM) G7, which supports a number of applications in the
research market, as well as wavelength extensions of the
Genesis(TM) series for use in the OEM components and
instrumentation market," Ambroseo said. BUSINESS OUTLOOK With the
strong customer order demand Coherent experienced in its first
fiscal quarter, the Company announced that it expects sales in its
second fiscal quarter to be in the range of $135 to $140 million.
Additionally, with the combination of key customer wins in solar
and a market recovery, the Company is raising its fiscal 2010
guidance for net sales to a range of $525 to $550 million.
CONFERENCE CALL REMINDER The Company will host a conference call
today to discuss its financial results at 1:30 P.M. Pacific (4:30
P.M. Eastern). A listen-only broadcast of the conference call can
be accessed on the Company's website at either
http://www.coherent.com/Investors/ or http://www.earnings.com/. For
those who are not available to listen to the live broadcast, the
call will be archived for approximately three months on both web
sites. A transcript of management's prepared remarks can be found
at http://www.coherent.com/Investors/. Summarized statement of
operations information is as follows (unaudited, in thousands
except per share data): Three Months Ended ------------------
January 2, October 3, December 27, 2010 2009 2008 ---- ---- ----
Net sales $122,815 $107,593 $124,388 Cost of sales (A)(B)(E) 71,783
70,093 73,999 ------ ------ ------ Gross profit 51,032 37,500
50,389 Operating expenses: Research & development (A)(B)(E)
15,410 15,500 14,778 Selling, general & administrative
(A)(B)(C)(E) 27,979 27,285 23,628 Impairment of goodwill(D) - -
19,286 Intangibles amortization 1,961 1,722 1,943 ----- ----- -----
Total operating expenses 45,350 44,507 59,635 ------ ------ ------
Income (loss) from operations 5,682 (7,007) (9,246) Other income
(expense), net(E) 792 1,803 (4,230) --- ----- ------ Income (loss)
before income taxes 6,474 (5,204) (13,476) Provision (benefit) for
income taxes(F) 2,295 (709) 1,203 ----- ---- ----- Net income
(loss) $4,179 $(4,495) (14,679) ====== ======= ======= Net income
(loss) per share: Basic $0.17 $(0.18) $(0.61) ===== ====== ======
Diluted $0.17 $(0.18) $(0.61) ===== ====== ====== Shares used in
computation: Basic 24,469 24,390 24,145 ====== ====== ======
Diluted 24,678 24,390 24,145 ====== ====== ====== (A) Stock-related
compensation expense included in operating results is summarized
below (all footnote amounts are unaudited, in thousands):
Stock-related compensation expense Three Months Ended
------------------ January 2, October 3, December 27, 2010 2009
2008 ---- ---- ---- Cost of sales $219 $93 $283 Research &
development 273 250 195 Selling, general & administrative 1,670
940 1,212 ----- --- ----- Impact on income (loss) from operations
$2,162 $1,283 $1,690 ------ ------ ------ For the quarters ended
January 2, 2010, October 3, 2009 and December 27, 2008, the impact
on net income (loss), net of tax was $1,519 ($0.06 per diluted
share), $1,308 ($0.05 per share) and $1,153 ($0.05 per diluted
share), respectively. (B) Restructuring costs included in operating
results are summarized below: Restructuring costs Three Months
Ended ------------------ January 2, October 3, December 27, 2010
2009 2008 ---- ---- ---- Cost of sales $309 $743 $3,022 Research
& development 409 519 466 Selling, general & administrative
518 412 618 --- --- --- Impact on income (loss) from operations
$1,236 $1,674 $4,106 ------ ------ ------ For the quarters ended
January 2, 2010, October 3, 2009, December 27, 2008, the impact on
net income (loss), net of tax was $813 ($0.03 per diluted share),
$1,054 ($0.04 per share), and $2,613 ($0.11 per diluted share),
respectively. (C) The quarter ended January 2, 2010 includes a
$2,185 ($1,438 net of tax ($0.06 per diluted share)) net receipt
from the settlement of litigation resulting from our internal stock
option investigation. The quarter ended October 3, 2009 includes
$192 ($121 net of tax ($0.00 per share)) of costs related to
litigation resulting from our internal stock option investigation.
The quarter ended December 27, 2008 includes $441 ($269 net of tax
($0.01 per diluted share)) of costs related to litigation resulting
from our internal stock option investigation. (D) The quarter ended
December 27, 2008 includes a $19,286 ($0.80 per diluted share)
non-cash charge for the impairment of all of the goodwill of our
Commercial Lasers and Components segment. (E) Changes in deferred
compensation plan liabilities are included in cost of sales and
operating expenses while gains and losses on deferred compensation
plan assets are included in other income (expense) net. Deferred
compensation expense (benefit) included in operating results is
summarized below: Deferred compensation expense (benefit) Three
Months Ended ------------------ January 2, October 3, December 27,
2010 2009 2008 ---- ---- ---- Cost of sales $32 $43 $(174) Research
& development 132 182 (988) Selling, general &
administrative 1,114 1,476 (5,784) ----- ----- ------ Impact on
income (loss) from operations $1,278 $1,701 $(6,946) ------ ------
------- For the quarters ended January 2, 2010, October 3, 2009 and
December 27, 2008, the impact on other income (expense) net from
gains or losses on deferred compensation plan assets was income of
$1,063, income of $1,435 and expense of $6,798, respectively. (F)
The quarter ended October 3, 2009 includes a $1,111 ($0.05 per
share) increase in valuation allowances against deferred tax
assets. Summarized balance sheet information is as follows
(unaudited, in thousands): January 2, October 3, 2010 2009
----------- ---------- ASSETS Current assets: Cash, cash
equivalents and short-term investments $240,626 $243,635 Accounts
receivable, net 76,136 74,235 Inventories 98,924 97,767 Prepaid
expenses and other assets 70,775 67,133 ------ ------ Total current
assets 486,461 482,770 Property and equipment, net 100,062 98,792
Other assets 184,182 172,042 ------- ------- Total assets $770,705
$753,604 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities: Current portion of long-term obligations $21
$9 Accounts payable 24,359 21,639 Other current liabilities 73,528
64,694 ------ ------ Total current liabilities 97,908 86,342 Other
long-term liabilities 92,098 91,691 Total stockholders' equity
580,699 575,571 ------- ------- Total liabilities and stockholders'
equity $770,705 $753,604 ======== ======== Reconciliation of GAAP
to Non-GAAP net income (unaudited, in thousands, net of tax): Three
Months Ended January 2, October 3, December 27, 2010 2009 2008
----------- ---------- ------------- GAAP net income (loss) $4,179
$(4,495) $(14,679) Stock option investigation and litigation
expense (benefit) (1,438) 121 269 Stock-related compensation
expense 1,519 1,308 1,153 Impairment of goodwill -- -- 19,286
Restructuring costs 813 1,054 2,613 One-time tax expense -- 1,111
-- --- ----- --- Non-GAAP net income (loss) $5,073 $(901) $8,642
====== ===== ====== Non-GAAP net income per share (loss) $0.21
$(0.04) $0.36 ===== ====== ===== FORWARD-LOOKING STATEMENTS This
press release contains forward-looking statements, as defined under
the Federal securities laws. These forward-looking statements
include the statements in this press release that relate to fiscal
2010 annual sales guidance and second fiscal quarter sales
guidance, scheduled delivery dates for the Company's products,
customer qualifications of the Company's products, and the timing
of shipments for the Company's products. These forward-looking
statements are not guarantees of future results and are subject to
risks, uncertainties and assumptions that could cause our actual
results to differ materially and adversely from those expressed in
any forward-looking statement. Factors that could cause actual
results to differ materially include risks and uncertainties,
including, but not limited to, risks associated with quarterly and
annual fluctuations in our net sales and operating results, our and
our customers' exposure to risks associated with worldwide economic
slowdowns, the ability of our customers to forecast their own end
markets, our ability to increase our sales volumes, our ability to
accurately forecast future periods, the impact that our operations
and potential acquisitions will have on net sales, customer
acceptance and adoption of our new product offerings and continued
purchases of our existing products and services, our ability to
timely ship our products and our customers' ability to accept such
shipments, our ability to have our customers qualify our product
offerings, and other risks identified in the Company's SEC filings.
Readers are encouraged to refer to the risk disclosures described
in the Company's reports on Forms 10-K, 10-Q and 8-K, as applicable
and as filed from time-to-time by the Company. Actual results,
events and performance may differ materially from those presented
herein. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof.
The Company undertakes no obligation to update these
forward-looking statements as a result of events or circumstances
after the date hereof or to reflect the occurrence of unanticipated
events. Founded in 1966, Coherent, Inc. is a world leader in
providing photonics based solutions to the commercial and
scientific research markets and part of the Russell 2000. Please
direct any questions to Leen Simonet, Chief Financial Officer at
408-764-4161. For more information about Coherent, visit the
Company's Web site at http://www.coherent.com/ for product and
financial updates. DATASOURCE: Coherent, Inc. CONTACT: Leen Simonet
of Coherent, Inc., +1-408-764-4161 Web Site:
http://www.coherent.com/
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