SANTA CLARA, Calif., July 30 /PRNewswire-FirstCall/ -- Coherent, Inc.
(Nasdaq: COHR) today announced financial results for its third fiscal
quarter ended June 28, 2008, posting net sales of $157.0 million and net
income, on a U.S. generally accepted accounting principles (GAAP) basis, of
$8.4 million or $0.35 per diluted share compared to net sales of $142.6
million and a net loss of $0.8 million or ($0.02) per diluted share for the
third quarter of fiscal 2007.
Net income for the third quarter of fiscal 2008 included an after tax
charge of $0.9 million related to litigation resulting from our internal
stock option investigation ($0.04 per diluted share), after tax
stock-related compensation expense of $2.0 million ($0.08 per diluted
share) and restructuring expense of $1.4 million, net of tax ($0.06 per
diluted share). Excluding these charges, non-GAAP net income was $12.7
million or $0.53 per diluted share. Net income for the third quarter of
fiscal 2007 included an after tax charge of $1.8 million ($0.06 per diluted
share) of internal stock option investigation costs, $1.6 million of
stock-related compensation expense, net of tax ($0.05 per diluted share)
and $2.2 million of in-process research and development, net of tax ($0.07
per diluted share). Excluding these charges, non-GAAP net income for the
third quarter of fiscal 2007 was $4.8 million or $0.15 per diluted share.
In comparison, net sales for the second quarter of fiscal 2008 were
$155.9 million and net income, on a GAAP basis, was $6.1 million ($0.19 per
diluted share). 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 for the second quarter of fiscal 2008 was
$12.8 million or $0.40 per diluted share.
Orders received during the three months ended June 28, 2008 of $149.1
million increased 7.1% from the same prior year period and increased by
0.3% compared to orders received in the immediately preceding quarter. The
book-to-bill ratio was 0.95, resulting in backlog of $188.6 million at June
28, 2008 compared to a backlog of $199.3 million at March 29, 2008 and a
backlog of $184.9 million at June 30, 2007.
For the nine-month period ended June 28, 2008, Coherent posted net
sales of $457.3 million and net income of $19.3 million ($0.66 per diluted
share) compared to the prior year period sales of $442.2 million and net
income of $17.3 million ($0.54 per diluted share). Orders received for the
nine month period ended June 28, 2008 were $452.5 million, compared to
$427.3 million in orders received during the same period a year ago.
"Coherent delivered solid results for the third quarter. In particular,
gross margin, EBITDA and EPS all showed progress towards our long-term
goals. We anticipate that these trends will continue in the fourth fiscal
quarter," said John Ambroseo, Coherent's President and CEO. "We are also
encouraged by
a very strong bookings performance in microelectronics and we believe
we are well positioned for market share gains," Ambroseo added.
At June 28, 2008, Coherent's cash, cash equivalents and short term
investments totaled $197.7 million, representing a decrease of $164.1
million compared to September 29, 2007. The decrease includes the use of
approximately $228 million for the repurchase of Coherent 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 Nine Months Ended
June 28, March 29, June 30, June 28, June 30,
2008 2008 2007 2008 2007
Net sales $157,024 $155,942 $142,608 $457,262 $442,233
Cost of
sales(A)(B) 87,765 88,818 85,470 260,385 258,651
Gross profit 69,259 67,124 57,138 196,877 183,582
Operating
expenses:
Research &
development
(A)(B) 19,076 19,428 19,337 56,823 56,543
In-process
research and
development - - 2,200 - 2,200
Selling,
general &
administrative
(A)(B)(C) 39,480 37,384 39,095 115,682 109,718
Restructuring,
impairment
and other
charges - - - - 248
Intangibles
amortization 2,165 2,229 2,085 6,600 5,978
Total
operating
expenses 60,721 59,041 62,717 179,105 174,687
Income (loss)
from operations 8,538 8,083 (5,579) 17,772 8,895
Other income, net 2,779 4,263 6,017 12,923 16,387
Income before
income taxes 11,317 12,346 438 30,695 25,282
Provision for
income taxes(D) 2,915 6,221 1,201 11,439 8,005
Net income
(loss) $8,402 $6,125 (763) $19,256 $17,277
Net income (loss)
per share:
Basic $0.36 $0.20 ($0.02) $0.67 $0.55
Diluted $0.35 $0.19 ($0.02) $0.66 $0.54
Shares used in
computation:
Basic 23,514 31,394 31,417 28,775 31,391
Diluted 24,110 31,874 31,417 29,314 32,045
(A) The quarter ended June 28, 2008 includes $3,320 ($2,031 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: $484 to cost of sales; $561 to research and
development; and $2,275 to selling, general and administrative. 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
June 30, 2007 includes $2,037 ($1,558 net of tax ($0.05 per diluted
share)) of stock-related compensation expense. Pretax stock-related
compensation expense is recorded in the statement lines as follows:
$405 to cost of sales; $408 to research and development; and $1,224 to
selling, general and administrative. The nine months ended June 28,
2008 includes $10,974 ($7,698 net of tax ($0.26 per diluted share)) of
stock-related compensation expense. Pretax stock-related
compensation expense is recorded in the statement lines as follows:
$1,629 to cost of sales; $1,688 to research and development; and
$7,657 to selling, general and administrative. The nine months ended
June 30, 2007 includes $9,284 ($6,232 net of tax ($0.19 per diluted
share)) of stock-related compensation expense. Pretax stock-related
compensation expense is recorded in the statement lines as follows:
$1,509 to cost of sales; $1,707 to research and development; and
$6,068 to selling, general and administrative.
(B) The quarter ended June 28, 2008 includes $2,202 ($1,374 net of tax
($0.06 per diluted share)) of restructuring costs primarily related to
the exit of our Auburn, California facility. Pretax restructuring
costs are recorded in the statement lines as follows: $1,328 to cost
of sales; $273 to research and development; and $601 to selling,
general and administrative. The effect of such restructuring charges
for the nine months ended June 28, 2008 was $0.05 per diluted share.
(C) The quarter ended June 28, 2008 includes $1,533 ($935 net of tax
($0.04 per diluted share)) of costs related to litigation resulting
from our internal stock option investigation. 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 June 30, 2007 includes $2,958 ($1,775 net of tax
($0.06 per diluted share)) of costs related to our internal stock
option investigation. The nine months ended June 28, 2008 includes
$8,787 ($5,313 net of tax ($0.18 per diluted share)) of costs related
to our restatement of financial statements and litigation resulting
from our internal stock option investigation. The nine months ended
June 30, 2007 includes $8,946 ($5,368 net of tax ($0.17 per diluted
share)) of costs related to our internal stock option investigation.
(D) During the quarter ended March 29, 2008, the Company incurred a tax
charge of $1,394 ($0.04 per diluted share) in connection with a
dividend from one of our European subsidiaries. For the nine months
ended June 28, 2008 the effect of the tax charge was $0.05 per diluted
share.
Summarized balance sheet information is as follows (unaudited, in
thousands):
June 28, Sept. 29,
ASSETS 2008 2007
Current assets:
Cash, cash equivalents and short-term
investments $197,717 $361,823
Restricted cash (A) 2,755 2,460
Accounts receivable, net 110,371 102,314
Inventories 123,444 112,893
Prepaid expenses and other assets 97,680 86,088
Total current assets 531,967 665,578
Property and equipment, net 105,873 104,305
Other assets 198,273 177,717
Total assets $836,113 $947,600
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term borrowings $366 $ --
Current portion of long-term obligations 9 9
Accounts payable 29,377 27,849
Other current liabilities 111,784 100,887
Total current liabilities 141,536 128,745
Other long-term liabilities 95,718 47,869
Total stockholders' equity 598,859 770,986
Total liabilities and
stockholders' equity $836,113 $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 (loss) (unaudited, in
thousands, net of tax):
Three Months Ended Nine Months Ended
June 28, March 29, June 30, June 28, June 30,
2008 2008 2007 2008 2007
GAAP net
income (loss) $8,402 $6,125 $(763) $19,256 $17,277
Stock option
investigation
and related
restatement of
financial
statements,
and litigation
expenses 935 1,528 1,775 5,313 5,368
Stock-related
compensation
expense 2,031 3,734 1,558 7,698 6,232
In-process
research and
development -- -- 2,200 -- 2,200
Restructuring
costs 1,374 -- -- 1,374 --
One-time tax
expense
(benefit) -- 1,394 -- 1,394 (2,147)
Non-GAAP
net income $12,742 $12,781 $4,770 $35,035 $28,930
Non-GAAP
net income
per diluted
share $0.53 $0.40 $0.15 $ 1.20 $0.90
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 anticipation that
the trend of progress towards our long term goals will continue in the
fourth fiscal quarter and any future market share gains. 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
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.
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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