SANTA CLARA, Calif., Nov. 2 /PRNewswire-FirstCall/ -- Coherent, Inc.
(Nasdaq: COHR) today announced financial results for its fourth fiscal quarter
ended October 1, 2005, with net sales of $133.8 million and net income of $5.3
million ($0.17 per diluted share). Fourth fiscal quarter 2005 net income
included an after-tax charge of $4.1 million ($0.13 per diluted share) related
to excess inventories as a result of the accelerated decommissioning of
lithography lasers from our Lambda Physik subsidiary. Excluding the
aforementioned item, non-GAAP income from continuing operations of $9.4
million represents earnings of $0.30 per diluted share.
Net sales and net income for the corresponding prior year quarter were
$133.2 million and $9.4 million ($0.31 per diluted share), respectively.
Fourth quarter 2004 results included a $2.0 million ($0.07 per diluted share)
after-tax recovery on the sale of a note receivable. In comparison, the
immediately preceding quarter's results were net sales of $125.3 million and
net income of $9.6 million ($0.31 per diluted share), respectively. Third
fiscal quarter 2005 net income included a charge of $1.6 million ($0.05 per
diluted share) for in-process research and development (IPR&D) related to our
purchase of TuiLaser AG of Munich, Germany, on June 13, 2005; a $1.4 million
($0.05 per diluted share) tax benefit resulting from increased use of export
tax incentives and R&D tax credits; and a $0.2 million ($0.01 per diluted
share) after-tax favorable adjustment of a previously recognized restructuring
charge. Excluding the aforementioned items, non-GAAP earnings represented
$0.30 per diluted share in the third quarter of fiscal 2005.
Orders received during the quarter ended October 1, 2005 of $164.0
million, which include several large annual orders, increased 24% from the
same prior year period and increased by 33% compared to the immediately
preceding quarter. Backlog of $194.1 million at October 1, 2005 compared to a
backlog of $163.9 million at July 2, 2005 and $154.6 million at October 2,
2004.
John Ambroseo, Coherent's President and Chief Executive Officer commented,
"Bookings are the story for the fourth quarter. The influx of new orders was
impressive due to the product and market breadth as well as geographic
participation. It is also gratifying that investments we have made,
particularly in the microelectronics, medical OEM and graphic arts markets,
are paying off so handsomely."
Year-to-date net sales of $516.3 million and net income of $39.9 million
($1.28 per diluted share) compared to the prior year period net sales of
$495.0 million and net income of $17.4 million ($0.57 per diluted share).
Orders received for the twelve month period ended October 1, 2005 were $545.1
million, compared to $521.8 million in orders received during the same period
a year ago.
Electro-Optics segment net sales of $100.8 million for the three months
ended October 1, 2005 were 8% lower than net sales during the comparable prior
year period and decreased slightly from the three months ended July 2, 2005.
Incoming orders of $128.7 million increased 18% from the fourth fiscal quarter
of 2004 and represent an increase in this segment of 27% from orders received
in the immediately preceding quarter. Net sales and incoming orders for the
twelve months ended October 1, 2005 were $408.4 million and $426.8 million,
both slight decreases compared to the same period a year ago.
Lambda Physik segment net sales of $33.0 million for the three months
ended October 1, 2005 represent an increase of 37% from both the corresponding
prior year period and the immediately preceding quarter. Incoming orders of
$35.3 million for the fourth quarter of fiscal 2005 were 47% higher than the
fourth fiscal quarter of 2004 and represent a 60% increase from orders
received in the immediately preceding third fiscal quarter of 2005. Net sales
and incoming orders for the twelve months ended October 1, 2005 were $107.9
million and $118.3 million, both 26% higher than the same period last year.
Ambroseo continued, "Coherent's backlog position remains solid and cash
from continuing operations was approximately $20 million for the most recent
quarter and $94 million year-to-date. Our financial strength, combined with a
healthy new product stream should drive additional benefits for both our
customers and shareholders alike in the upcoming fiscal year."
The Company's conference call scheduled for 1:30 p.m. PST 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 our financial strength, combined
with a healthy new product stream should drive additional benefits for both
our customers and shareholders alike in the upcoming fiscal year are forward-
looking statements. Actual results, events and performance may differ
materially. 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. 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 and provides such information herein. 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.
Summarized statement of operations financial information is as follows
(unaudited, in thousands except per share data):
Three Months Ended Twelve Months Ended
Oct 2, Oct 2,
Oct 1, July 2, 2004 Oct 1, 2004 (A)
2005 2005 (restated) 2005 (restated)
Net sales (B) $133,786 $125,269 $133,244 $516,252 $494,954
Cost of sales (C)(D) 82,820 68,589 73,660 298,583 287,551
Gross profit 50,966 56,680 59,584 217,669 207,403
Operating expenses:
Research &
development (C) 15,187 13,882 16,476 57,545 62,660
In-process research
& development -- 1,577 -- 1,577 45
Selling, general
& administrative
(C) 29,836 28,855 29,355 115,827 115,043
Restructuring,
impairment and
other charges 39 (360) (3,348) (61) (3,093)
Intangibles
amortization 2,324 1,674 1,495 7,019 6,698
Total operating
expenses 47,386 45,628 43,978 181,907 181,353
Income from operations 3,580 11,052 15,606 35,762 26,050
Other income (expense),
net (C) (E) 3,248 724 (1,489) 5,669 1,201
Income from continuing
operations before
income taxes and
minority interest 6,828 11,776 14,117 41,431 27,251
Provision for income
taxes (F) 1,577 2,131 4,720 1,750 10,301
Income from continuing
operations before
minority interest 5,251 9,645 9,397 39,681 16,950
Minority interest
(B) (C) -- -- (17) 180 192
Income from continuing
operations 5,251 9,645 9,380 39,861 17,142
Income from discontinued
operations, net of
income taxes -- -- -- -- 218
Net income $5,251 $9,645 $9,380 $39,861 $17,360
Net income per diluted
share:
Income from continuing
operations $0.17 $0.31 $0.31 $1.28 $0.56
Income from
discontinued
operations, net of
income taxes -- -- -- -- 0.01
Net income $0.17 $0.31 $0.31 $1.28 $0.57
Shares used in
computation:
Basic 31,056 30,856 30,351 30,756 30,179
Diluted 31,586 31,454 30,673 31,241 30,544
(A) The twelve months ended October 2, 2004 represents a 53-week period.
(B) The quarter and twelve months ended October 2, 2004 include $1,762
and $3,943, respectively, of net sales from an entity consolidated
under FIN 46R. Additionally, this entity's net income of $135 and
$515 for the quarter and twelve months ended October 2, 2004,
respectively, was eliminated through minority interest. Fiscal 2005
results do not include the results of this entity as we sold our
interest in the entity in the fourth quarter of fiscal 2004.
(C) The quarter ended April 2, 2005 includes a $323 ($0.01 per diluted
share) reduction in charges to research and development associated
with our previously communicated decision to discontinue future
product development and investments in the semiconductor lithography
market within our Lambda Physik subsidiary. 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.
The pretax charge for the twelve months ended October 1, 2005 is
recorded as follows: cost of sales includes $2,257; research &
development includes $267; selling, general and administrative
includes $137; and other income (expense), net includes $214.
(D) The quarter ended October 1, 2005 includes a $4,129 ($0.13 per
diluted share) charge related to excess inventories as a result of
the accelerated decommissioning of lithography lasers from our Lambda
Physik subsidiary. The pretax charge of $6,813 is recorded in cost
of sales.
(E) The twelve months ended October 2, 2004 includes a $1,200 ($663
after-tax ($0.02 per diluted share)) gain on the sale of certain
technology.
(F) The quarter ended July 2, 2005, includes a tax benefit of $1,430
($0.05 per diluted share) for increased use of export tax incentives
and R&D tax credits. The quarter ended April 2, 2005, includes a tax
benefit for the reversal of a deferred tax valuation allowance of
$9,571 ($0.31 per diluted share) related to our Lambda Physik
segment. 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 first quarter of fiscal 2005.
Summarized balance sheet information is as follows (unaudited, in
thousands):
Oct. 1, Oct. 2,
2005 2004
ASSETS
Current assets:
Cash, cash equivalents and short-term
investments $230,914 $170,734
Restricted cash, cash equivalents and
short-term investments (A) 15,467 15,343
Accounts receivable, net 87,684 96,825
Inventories 102,730 104,698
Prepaid expenses and other assets 54,926 62,572
Total current assets 491,721 450,172
Property and equipment, net 155,316 166,054
Restricted cash, cash equivalents and
short-term investments (A) 1,220 23,580
Other assets 150,033 117,520
Total assets $798,290 $757,326
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term obligations $12,736 $13,700
Accounts payable 18,451 17,648
Other current liabilities 80,400 73,181
Total current liabilities 111,587 104,529
Long-term obligations -- 14,215
Other long-term liabilities 50,437 54,530
Total stockholders' equity 636,266 584,052
Total liabilities and stockholders' equity $798,290 $757,326
(A) Represents cash, cash equivalents and short-term investments at
October 1, 2005 restricted under the Star Medical notes payable
arrangement ($15,178), for close out costs associated with the
purchase of the remaining outstanding shares of Lambda Physik AG
($1,220) and other ($289).
Reconciliation of GAAP to Non-GAAP summarized statement of operations
(unaudited, in thousands except per share data, after-tax and net of minority
interest):
Three Months Ended Twelve Months Ended
Oct. 1, July 2, Oct. 2, Oct. 1, Oct. 2,
2005 2005 2004 2005 2004
GAAP net income $5,251 $9,645 $9,380 $39,861 $17,360
Charges associated with
discontinuing future
product development and
investments in the
semiconductor lithography
market -- -- -- 2,738 --
Charges for excess
lithography inventory 4,129 -- -- 4,129 --
In-process research and
development -- 1,577 -- 1,577 --
Tax benefit for increased
use of export tax
incentives and R&D tax
credits -- (1,430) -- (1,430) --
Restructuring, impairment
and other charges -- (216) -- (216) 142
Tax benefit related to
federal tax law changes -- -- -- (479) --
Reversal of deferred tax
valuation allowance -- -- -- (9,571) --
Recovery on sale of
note receivable -- -- (2,002) -- (2,002)
Sale of technology -- -- -- -- (663)
Discontinued operations -- -- -- -- (218)
Non-GAAP net income $9,380 $9,576 $7,378 $36,609 $14,619
Three Months Ended Twelve Months Ended
Per diluted share: Oct. 1, July 2, Oct. 2, Oct. 1, Oct. 2,
2005 2005 2004 2005 2004
GAAP net income $0.17 $0.31 $0.31 $1.28 $0.57
Charges associated with
discontinuing future
product development and
investments in the
semiconductor lithography
market -- -- -- 0.09 --
Charges for excess
lithography inventory 0.13 -- -- 0.13 --
In-process research and
development -- 0.05 -- 0.05 --
Tax benefit for increased
use of export tax
incentives and R&D tax
credits -- (0.05) -- (0.05) --
Restructuring, impairment
and other charges -- (0.01) -- (0.01) (0.00)
Tax benefit related to
federal tax law changes -- -- -- (0.02) --
Reversal of deferred tax
valuation allowance -- -- -- (0.31) --
Recovery on sale of note
receivable -- -- (0.07) -- (0.07)
Sale of technology -- -- -- -- (0.02)
Discontinued operations -- -- -- -- (0.01)
Non-GAAP net income $0.30 $0.30 $0.24 $1.17 $0.48
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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