SANTA CLARA, Calif., Jan. 25 /PRNewswire-FirstCall/ -- Coherent, Inc.
(Nasdaq: COHR) today announced financial results for its first fiscal quarter
ended January 1, 2005, posting sales of $126.0 million and net income of
$5.4 million ($0.17 per diluted share). Net income included a charge of
$3.1 million ($0.10 per diluted share) related to our previously communicated
decision to discontinue future product development and investments in the
semiconductor lithography market within our Lambda Physik subsidiary. Net
income also included a tax benefit of $0.5 million ($0.02 per diluted share)
related to federal tax law changes enacted in the current quarter.
Sales and net loss for the corresponding prior year quarter were
$108.0 million and $0.3 million ($0.01 per diluted share), respectively. In
comparison, sales for the immediately preceding quarter were $133.2 million
and net income was $9.8 million ($0.32 per diluted share), which included a
gain of $3.2 million ($2.0 million after-tax or $0.07 per diluted share) from
the recovery on the sale of a note receivable.
Orders received during the three months ended January 1, 2005 of
$128.6 million increased 1% from the same prior year period and decreased by
3% compared to orders received in the immediately preceding quarter. The
book-to-bill ratio was 1.02 resulting in a backlog of $157.1 million at
January 1, 2005 compared to a backlog of $154.6 million at October 2, 2004.
Electro-Optics segment sales of $100.9 million for the three months ended
January 1, 2005 were 11% higher than sales during the comparable prior year
period and 8% lower than the immediately preceding quarter. Incoming orders
of $97.0 million represent a 9% decrease from orders received in the like
prior year period and an 11% decrease from the immediately preceding fourth
fiscal quarter of 2004.
John Ambroseo, Coherent's President and Chief Executive Officer commented,
"We delivered solid bottom-line performance given our lower sales, by
optimizing our utilization rates and controlling expenses, primarily as a
result of the holiday shutdown. We were able to generate a significant amount
of cash from operations, which is one of our key objectives for fiscal 2005.
We also developed an intriguing technology advancement within our
Electro-Optics business. We have created a three-color light engine based
upon our patented OPS platform that is targeted at consumer and commercial
display markets. We are discussing this development at the Photonics West
Conference this week in San Jose, California."
Lambda Physik segment sales of $25.1 million for the three months ended
January 1, 2005 represent a 45% increase from the corresponding prior year
period and a 5% increase from the immediately preceding quarter. Incoming
orders of $31.6 million for the first quarter of fiscal 2004 represent a
57% improvement from the same prior year period and a 32% increase from the
immediately preceding fourth fiscal quarter of 2004.
Ambroseo continued, "Lambda Physik's strong bookings and sales performance
came from its core markets in industrial, scientific and OEM medical markets.
Our recently announced decision to terminate future investments in DUV
lithography will enable us to focus our efforts in the core space, which hold
a variety of growth opportunities."
Summarized statement of operations financial information is as follows
(unaudited, in thousands except per share data):
Three Months Ended
Jan. 1, Oct. 2, Dec. 27,
2005 2004 2003
Net sales (A) $126,022 $133,244 $107,951
Cost of sales (B) 74,349 73,679 66,517
Gross profit 51,673 59,565 41,434
Operating expenses:
Research & development (B) 14,086 16,512 14,921
Selling, general &
administrative (B) 26,826 29,585 25,958
Restructuring, impairment
and other charges (recoveries) (C) 300 (3,348) 237
Intangibles amortization 1,493 1,495 1,929
Total operating expenses 42,705 44,244 43,045
Income (loss) from operations 8,968 15,321 (1,611)
Other income (expense), net (B) (410) (920) 418
Income (loss) before income taxes
and minority interest 8,558 14,401 (1,193)
Provision (benefit) for income
taxes (D) 3,347 4,616 (554)
Income (loss) before minority
interest 5,211 9,785 (639)
Minority interest in
subsidiaries' (earnings) losses (B) 180 (17) 333
Net income (loss) $5,391 $9,768 $(306)
Net income (loss) per share:
Basic $0.18 $0.32 $(0.01)
Diluted $0.17 $0.32 $(0.01)
Shares used in computation:
Basic 30,482 30,351 30,001
Diluted 30,867 30,673 30,001
(A) The quarter ended October 2, 2004 includes $1,762 of net sales from
an entity consolidated under FIN 46R. This entity's net income for
the corresponding period of $135 was eliminated through minority
interest. During the quarter ended October 2, 2004, we sold our
interest in this entity.
(B) The quarter ended January 1, 2005 includes a charge of $3,061 (net of
minority interest of $137 ($0.10 per diluted share)) associated with
our decision to discontinue future product development and
investments in the semiconductor lithography market within our Lambda
Physik subsidiary. As a result, cost of sales includes $2,257;
research & development includes $590; selling, general and
administrative includes $137 and other income (expense), net includes
$214 of this charge.
(C) The quarters ended January 1, 2005 and December 27, 2003 includes
charges of $300 ($201 after-tax) and $237 ($142 after-tax),
respectively, related to the previously communicated termination of
activities in the Telecom Actives Group. The quarter ended October
2, 2004, includes a $3,241 ($2,002 after-tax ($0.07 per diluted
share)) recovery on the sale of a previously impaired note
receivable.
(D) The quarter ended January 1, 2005 includes a tax benefit of $479
($0.02 per diluted share) related to federal tax law changes enacted
in the current quarter.
Summarized balance sheet information is as follows (unaudited, in
thousands):
Jan. 1, Oct. 2,
ASSETS 2005 2004
Current assets:
Cash, cash equivalents and short-term
investments $194,937 $170,734
Restricted cash, cash equivalents and
short-term investments (A) 15,336 15,343
Accounts receivable, net 86,694 96,825
Inventories 109,688 104,698
Prepaid expenses and other assets 53,617 62,572
Total current assets 460,272 450,172
Property and equipment, net 168,107 166,054
Restricted cash, cash equivalents and
short-term investments (A) 28,271 23,580
Other assets 126,683 122,049
Total assets $783,333 $761,855
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term obligations $13,409 $13,700
Accounts payable 20,220 17,648
Other current liabilities 66,071 73,181
Total current liabilities 99,700 104,529
Long-term obligations 14,149 14,215
Other long-term liabilities 55,801 54,530
Total stockholders' equity 613,683 588,581
Total liabilities and stockholders'
equity $783,333 $761,855
(A) Represents cash, cash equivalents and short-term investments
restricted under our notes payable arrangement ($30,360), for the
purchase of the remaining shares of Lambda Physik AG ($13,093) and
other ($154) at January 1, 2005.
Reconciliation of GAAP to Non-GAAP summarized statement of operations
(unaudited, in thousands, after-tax and net of minority interest):
Three Months Ended
Jan. 1, Oct. 2, Dec. 27,
2005 2004 2003
GAAP net income (loss) $5,391 $9,768 $(306)
Charges associated with discontinuing
future product development and
investments in the semiconductor
lithography market (1) 3,061 -- --
Tax benefit related to federal tax
law changes (479) -- --
Recovery on the sale of note receivable -- (2,002) --
Non-GAAP net income (loss) $7,973 $7,766 $(306)
Non-GAAP net income (loss) per
diluted share $0.26 $0.25 $(0.01)
(1) Net of minority interest of $137
The Company's conference call scheduled for 1:30 p.m. PT today will
include discussions relative to the current quarter results and some comments
regarding forward looking guidance on future operating performance.
The statements in this press release that relate to future plans, events
or performance, including statements such as Lambda Physik's decision to
terminate future investments in DUV lithography will enable us to focus our
efforts in the core space, which hold a variety of growth opportunities, are
forward-looking statements. Factors that could cause actual results to differ
materially include risks and uncertainties, including risks associated to
currency adjustments, contract cancellations, manufacturing risks, competitive
factors, and uncertainties pertaining to customer orders, demand for products
and services, and development of markets for the Company's products and
services and other risks identified in the Company's SEC filings. Actual
results, events and performance may differ materially. 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.
The Company may provide non-GAAP financial measures (as defined by the SEC
in Regulation G) in our earnings conference call and in any other company
presentations during the quarter. Non-GAAP financial measures are intended to
supplement the user's overall understanding of the Company's current financial
performance and its future prospects. Any non-GAAP financial measures are not
intended to replace the Company's GAAP results. The Company's intention is to
include the most directly comparable GAAP financial measures and a
reconciliation of the differences between each non-GAAP financial measure used
and the most directly comparable GAAP financial measure.
Readers are encouraged to refer to the risk disclosures described in the
Company's reports on Forms 10-K, 10-Q and 8K, as applicable.
Founded in 1966, Coherent, Inc. is a Standard & Poor's SmallCap 600
company and a world leader in providing photonics based solutions to the
commercial and scientific research markets. 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.
SOURCE Coherent, Inc.
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Related links:
http://www.coherent.com
CONTACT:
Leen Simonet of Coherent, Inc.,
+1-408-764-4161
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