SANTA CLARA, Calif., Aug. 20 /PRNewswire-FirstCall/ -- Coherent, Inc.
(Nasdaq: COHR) (the "Company") today announced that it has received a
notice from the trustee for the holders of its $200 million aggregate
outstanding principal amount of convertible subordinated notes ("the
Notes") declaring the principal amount and accrued and unpaid interest on
the Notes immediately due and payable as of August 17, 2007. The trustee's
action was based on its position, taken in its earlier disclosed notices,
that the Company's failure to file certain reports with the Securities and
Exchange Commission constitutes a default on the Notes. While the Company's
previously disclosed voluntary internal review of its historical stock
option granting practices has been completed, the Company has not yet
become current with respect to certain reporting obligations with the
Securities and Exchange Commission.
According to the Company's Chief Executive Officer, John Ambroseo, "We
have been able to show our investors that we have had a growing cash
balance over the past year. With a cash, cash equivalents and short-term
investments position, on a pro forma basis after giving effect to the
repayment of the Notes, of over $300 million as of June 30, 2007, we
believe we have ample resources to fund our operating requirements as well
as pursue strategic opportunities."
Ambroseo continued, "While the holders of the Notes were prepared to
amend the terms of the Notes, the Company chose not to accept the proposed
modifications, as we did not believe that they would have been beneficial
to our stockholders in the long run."
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 having resources to
fund operating requirements and pursue strategic opportunities and the
benefit to our stockholders of the proposed modifications of the Notes.
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, and other risks identified in the Company's SEC
filings. Readers are encouraged to refer to the risk disclosures described
in the Company's Registration Statement on Form S-3 (as amended and filed
with the SEC on October 4, 2006) and the 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 Standard & Poor's SmallCap 600
company and a world leader in providing laser-based solutions to the
commercial and scientific research markets.
Please direct any questions to Helene 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:
Helene Simonet, Chief Financial Officer of
Coherent, Inc., +1-408-764-4161
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