SANTA CLARA, Calif., April 24 /PRNewswire-FirstCall/ -- Coherent, Inc.
(Nasdaq: COHR) today announced financial results for its second fiscal
quarter ended March 29, 2008, posting sales of $155.9 million and net
income, on a U.S. generally accepted accounting principles (GAAP) basis, of
$6.1 million or $0.19 per diluted share compared to net sales of $152.1
million and net income of $7.3 million or $0.23 per diluted share for the
second quarter of fiscal 2007.
Net income for the second quarter of fiscal 2008 included an after tax
charge of $1.5 million related to our restatement of financial statements
and litigation resulting from our internal stock option investigation
($0.05 per diluted share), after tax stock-related compensation expense of
$3.7 million ($0.12 per diluted share) and a one-time tax expense in
connection with a dividend from one of our European subsidiaries of $1.4
million ($0.04 per diluted share). Excluding these charges, non-GAAP net
income was $12.8 million or $0.40 per diluted share. Net income for the
second quarter of fiscal 2007 included an after tax charge of $2.6 million
($0.08 per diluted share) of internal stock option investigation costs and
$2.5 of million stock-related compensation expense, net of tax ($0.08 per
diluted share). Excluding these charges, non-GAAP net income for the second
quarter of fiscal 2007 was $12.3 million or $0.39 per diluted share.
In comparison, sales for the first quarter of fiscal 2008 were $144.3
million and net income, on a GAAP basis, was $4.7 million ($0.15 per
diluted share). Net income for the first quarter of fiscal 2008 included an
after tax charge of $2.8 million related to our restatement of financial
statements and litigation resulting from our internal stock option
investigation ($0.09 per diluted share) and after tax stock-related
compensation expense of $1.9 million ($0.06 per diluted share). Excluding
these charges, non-GAAP net income for the first quarter of fiscal 2008 was
$9.5 million or $0.30 per diluted share.
Orders received during the three months ended March 29, 2008 of $148.6
million decreased 2.2% from the same prior year period and decreased by
4.1% compared to orders received in the immediately preceding quarter. The
book- to-bill ratio was 0.95, resulting in backlog of $199.3 million at
March 29, 2008 compared to a backlog of $198.4 million at December 29, 2007
and a backlog of $189.3 million at March 31, 2007.
As of March 29, 2008, year-to-date sales of $300.2 million and net
income of $10.9 million ($0.34 per diluted share) compared to the prior
year period sales of $299.6 million and a net income of $18.0 million
($0.56 per diluted share). Orders received for the six month period ended
March 29, 2008 were $303.4 million, compared to $288.1 million in orders
received during the same period a year ago.
"We are pleased to have exceeded our revenue and profit guidance for
the second fiscal quarter, especially in light of the current macroeconomic
turbulence. These results reinforce the benefits of serving diversified end
markets," said John Ambroseo, Coherent's President and Chief Executive
Officer. "We also remain committed to our long-term adjusted EBITDA
objectives. Our recently announced outsourcing of optics manufacturing and
ensuing exit of our Auburn, California facility have been taken in support
of these goals. Following the transition, we expect to achieve run rate
savings of approximately $3.5 to $4.5 million per year," he stated.
"Another component of our long-term strategy is to deploy more
configurable platform designs. We are developing a series of products based
upon an ultrafast fiber laser. The first offering in the series is the
Talisker, which is a rugged industrial laser for use in micromaterials
processing," Ambroseo continued. "Talisker was officially released last
week following customer qualification testing. Based upon the feedback, we
expect Talisker to be the solution of choice for a variety of applications
including wafer dicing and solar cell manufacturing," he concluded.
At March 29, 2008, Coherent's cash, cash equivalents and short term
investments totaled $184.6 million, representing a decrease of $177.2
million compared to September 29, 2007. The decrease includes the use of
approximately $228 million for the repurchase of our common stock under the
previously announced tender offer ended March 19, 2008.
Summarized statement of operations information is as follows
(unaudited, in thousands except per share data):
Three Months Ended Six Months Ended
March 29, Dec. 29, March 31, March 29, March 31,
2008 2007 2007 2008 2007
Net sales $155,942 $144,296 $152,116 $300,238 $299,625
Cost of sales(A) 88,818 83,802 87,646 172,620 173,181
Gross profit 67,124 60,494 64,470 127,618 126,444
Operating expenses:
Research &
development(A) 19,428 18,319 18,884 37,747 37,206
Selling, general &
administrative(A)(B) 37,384 38,818 37,139 76,202 70,623
Restructuring, impairment
and other charges - - 111 - 248
Intangibles amortization 2,229 2,206 1,950 4,435 3,893
Total operating
expenses 59,041 59,343 58,084 118,384 111,970
Income from operations 8,083 1,151 6,386 9,234 14,474
Other income, net 4,263 5,881 5,096 10,144 10,370
Income before income
taxes 12,346 7,032 11,482 19,378 24,844
Provision for income
taxes(C) 6,221 2,303 4,200 8,524 6,804
Net income $6,125 $4,729 $7,282 $10,854 $18,040
Net income per share:
Basic $0.20 $0.15 $0.23 $0.35 $0.57
Diluted $0.19 $0.15 $0.23 $0.34 $0.56
Shares used in computation:
Basic 31,394 31,417 31,417 31,406 31,378
Diluted 31,874 31,959 31,937 31,916 32,030
(A) The quarter ended March 29, 2008 includes $4,949 ($3,734 net of tax
($0.12 per diluted share)) of stock-related compensation expense.
Pretax stock-related compensation expense is recorded in the
statement lines as follows: $759 to cost of sales; $808 to research
and development; and $3,382 to selling, general and administrative.
The quarter ended December 29, 2007 includes $2,705 ($1,933 net of
tax ($0.06 per diluted share)) of stock-related compensation expense.
Pretax stock-related compensation expense is recorded in the
statement lines as follows: $385 to cost of sales; $320 to research
and development; and $2,000 to selling, general and administrative.
The quarter ended March 31, 2007 includes $3,755 ($2,483 net of tax
($0.08 per diluted share)) of stock-related compensation expense.
Pretax stock-related compensation expense is recorded in the
statement lines as follows: $667 to cost of sales; $739 to research
and development; and $2,349 to selling, general and administrative.
The six months ended March 29, 2008 includes $7,654 ($5,667 net of
tax ($0.18 per diluted share)) of stock-related compensation expense.
Pretax stock-related compensation expense is recorded in the
statement lines as follows: $1,144 to cost of sales; $1,128 to
research and development; and $5,382 to selling, general and
administrative. The six months ended March 31, 2007 includes
$7,246 ($4,673 net of tax ($0.15 per diluted share)) of stock-related
compensation expense. Pretax stock-related compensation expense is
recorded in the statement lines as follows: $1,104 to cost of sales;
$1,299 to research and development; and $4,843 to selling, general
and administrative.
(B) The quarter ended March 29, 2008 includes $2,505 ($1,528 net of tax
($0.05 per diluted share)) of costs related to our restatement of
financial statements and litigation resulting from our internal stock
option investigation. The quarter ended December 29, 2007 includes
$4,749 ($2,849 net of tax ($0.09 per diluted share)) of costs related
to our restatement of financial statements and litigation resulting
from our internal stock option investigation. The quarter ended
March 31, 2007 includes $4,278 ($2,567 net of tax ($0.08 per diluted
share)) of costs related to our internal stock option investigation.
The six months ended March 29, 2008 includes $7,254 ($4,377 net of
tax ($0.14 per diluted share)) of costs related to our restatement of
financial statements and litigation resulting from our internal stock
option investigation. The six months ended March 31, 2007 includes
$5,999 ($3,593 net of tax ($0.11 per diluted share)) of costs related
to our internal stock option investigation.
(C) The quarter ended March 29, 2008 includes a tax charge of
$1,394 ($0.04 per diluted share) in connection with a dividend from
one of our European subsidiaries.
Summarized balance sheet information is as follows (unaudited, in
thousands):
March 29, Sept. 29,
2008 2007
ASSETS
Current assets:
Cash, cash equivalents and
short-term investments $184,626 $361,823
Restricted cash(A) 2,758 2,460
Accounts receivable, net 112,694 102,314
Inventories 116,567 112,893
Prepaid expenses and other assets 98,188 86,088
Total current assets 514,833 665,578
Property and equipment, net 107,475 104,305
Other assets 189,495 177,717
Total assets $811,803 $947,600
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term obligations $9 $9
Accounts payable 33,622 27,849
Other current liabilities 97,471 100,887
Total current liabilities 131,102 128,745
Other long-term liabilities 90,117 47,869
Total stockholders' equity 590,584 770,986
Total liabilities and stockholders'
equity $811,803 $947,600
(A) Represents cash for remaining close out costs associated with our
purchase of the remaining outstanding shares of Lambda Physik AG.
Reconciliation of GAAP to Non-GAAP net income (unaudited, in
thousands, after-tax):
Three Months Ended Six Months Ended
March 29, Dec. 29, March 31, March 29, March 31,
2008 2007 2007 2008 2007
GAAP net income $6,125 $4,729 $7,282 $10,854 $18,040
Stock option investigation
and related restatement
of financial statements,
and litigation expenses 1,528 2,849 2,567 4,377 3,593
Stock-related compensation
expense 3,734 1,933 2,483 5,667 4,673
One-time tax expense
(benefit) 1,394 - - 1,394 (2,147)
Non-GAAP net income $12,781 $9,511 $12,332 $22,292 $24,159
Non-GAAP net income per
diluted share $0.40 $0.30 $0.39 $ 0.70 $0.75
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. 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.
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 our long-term adjusted
EBITDA percentage goals, the achievement of savings from the outsourcing of
optics manufacturing and exit from our Auburn, California facility, the
development of products based upon an ultrafast fiber laser, and that we
expect Talisker to be the solution of choice for a variety of applications
including wafer dicing and solar cell manufacturing. 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 exposure to risks associated with worldwide economic
slowdowns, our ability to increase our sales volumes and decrease our
costs, the impact that our operations and potential acquisitions will have
on interest, taxes, depreciation and amortization measurements, changes to
the Company's tax rate as a result of government action, customer
acceptance and adoption of our new product offerings, our ability to
successfully achieve the benefits from the outsourcing of our optics
manufacturing, 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. 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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