SANTA CLARA, Calif., Feb. 12 /PRNewswire-FirstCall/ -- Coherent,
Inc. (Pink Sheets: COHR) today announced financial results for its
first fiscal quarter ended December 29, 2007, posting sales of
$144.3 million and net income, on a U.S. generally accepted
accounting principles basis (GAAP), of $4.7 million or $0.15 per
diluted share compared to net sales of $147.5 million and net
income of $10.8 million or $0.33 per diluted share for the first
quarter of fiscal 2007. The Company also received confirmation that
its shares of common stock will be re-listed on the NASDAQ Global
Select Market with the opening of trading on Thursday, February 14,
2008 under the symbol, "COHR". 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-based compensation expense of $1.9
million ($0.06 per diluted share). Excluding these charges,
non-GAAP net income was $9.5 million or $0.30 per diluted share.
GAAP net income for the first quarter of fiscal 2007 included an
after tax charge of $1.0 million ($0.03 per diluted share) of stock
option investigation costs, $2.2 million stock-based compensation
expense, net of tax ($0.07 per diluted share) and a one-time tax
benefit of $2.1 million ($0.07 per diluted share). Excluding these
charges and the one-time benefit, non-GAAP net income for the first
quarter of fiscal 2007 was $11.8 million or $0.37 per diluted
share. Orders received during the three months ended December 29,
2007 of $154.9 million increased 13.7% from the same prior year
period and decreased by 5.4% compared to orders received in the
immediately preceding quarter. The book-to-bill ratio was 1.07,
resulting in backlog of $198.4 million at December 29, 2007
compared to a backlog of $188.4 million at September 29, 2007. "The
combined effect of seasonality and certain customers' inventory
positions led to seasonally typical first quarter revenues. Any
concerns around short-term revenue performance are more than offset
by a strong inflow of orders," said John Ambroseo, Coherent's
President and Chief Executive Officer. "We posted double-digit
growth in bookings in the microelectronics, materials processing
and OEM components and instrumentation markets as compared to the
first quarter of fiscal 2007. We are also encouraged by the early
feedback on our recently launched E-Series carbon dioxide laser
system, which utilizes new design elements that facilitate ease of
integration and scalability while significantly lowering the cost
of ownership," he added. At December 29, 2007, Coherent's cash,
cash equivalents and short term investments totaled $388.4 million
representing an increase of $26.5 million compared to September 29,
2007. The increase includes the receipt of the proceeds of
approximately $16 million from the sale of the Auburn campus and
the sale of the assets of our Coherent Imaging Optics Limited
subsidiary in the prior quarter. "With our imminent re-listing on
the NASDAQ Global Select Market, and a track record of strong cash
flows, we are in a position to launch a substantial stock
repurchase program," commented John Ambroseo. "The buyback coupled
with our previously announced three-year EBITDA goals provides a
compelling opportunity for our shareholders," he added. For more
information regarding Coherent's share repurchase program, please
refer to the Company's Form 8-K filed with the Securities Exchange
Commission on February 12, 2008. Summarized statement of operations
information is as follows (unaudited, in thousands except per share
data): Three Months Ended Dec. 29, Sept. 29, Dec. 30, 2007 2007
2006 Net sales $144,296 $158,920 $147,509 Cost of sales (A) 83,802
92,494 85,535 Gross profit 60,494 66,426 61,974 Operating expenses:
Research & development (A) 18,319 18,047 18,322 Selling,
general & administrative (A) (B) (C) 38,818 43,979 33,484
Restructuring, impairment and other charges - - 137 Intangibles
amortization 2,206 2,174 1,943 Total operating expenses 59,343
64,200 53,886 Income from operations 1,151 2,226 8,088 Other
income, net (D) 5,881 1,415 5,274 Income before income taxes 7,032
3,641 13,362 Provision for income taxes (E) 2,303 4,967 2,604 Net
income (loss) $4,729 $(1,326) $10,758 Net income (loss) per share:
Basic $0.15 $(0.04) $0.34 Diluted $0.15 $(0.04) $0.33 Shares used
in computation: Basic 31,417 31,417 31,339 Diluted 31,959 31,417
32,125 (A) The quarter ended December 29, 2007 includes $2,705
($1,933 net of tax ($0.06 per diluted share)) of stock-based
compensation expense as required by SFAS 123(R). Pretax stock-based
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 September
29, 2007 includes $1,089 ($938 net of tax ($0.03 per diluted
share)) of stock-based compensation expense as required by SFAS
123(R). Pretax stock-based compensation expense is recorded in the
statement lines as follows: $300 to cost of sales; $192 to research
and development; and $597 to selling, general and administrative.
The quarter ended December 30, 2006 includes $3,492 ($2,191 net of
tax ($0.07 per diluted share)) of stock-based compensation expense
as required by SFAS 123(R). Pretax stock-based compensation expense
is recorded in the statement lines as follows: $437 to cost of
sales; $560 to research and development; and $2,495 to selling,
general and administrative. (B) 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 September 29, 2007 includes $2,748 ($1,677 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 30, 2006
includes $1,710 ($1,026 net of tax ($0.03 per diluted share)) of
costs related to our internal stock option investigation. (C) The
quarter ended September 29, 2007 includes a capital loss of $12,569
($0.40 per diluted share) on the sale of our Auburn campus in
Auburn, California, and a capital gain of $3,566 ($0.11 per diluted
share) on the sale of our Condensa building in Santa Clara. (D) The
quarter ended September 29, 2007 includes a $4,286 charge ($2,614
net of tax ($0.08 per diluted share)) to write off unamortized
capitalized deferred issuance costs associated with the repayment
of our convertible subordinated notes and a $973 ($681 net of tax
($0.02 per diluted share)) gain on the sale of substantially all of
the net assets of our Coherent Imaging Optics Limited subsidiary
(CIOL). (E) The quarter ended December 30, 2006 includes a tax
benefit of $2,147 ($0.07 per diluted share) due to reinstatement of
the research and development tax credit. Summarized balance sheet
information is as follows (unaudited, in thousands): Dec. 29, Sept.
29, ASSETS 2007 2007 Current assets: Cash, cash equivalents and
short-term investments $388,364 $361,823 Restricted cash (A) 2,514
2,460 Accounts receivable, net 96,971 102,314 Inventories 112,889
112,893 Prepaid expenses and other assets 87,094 86,088 Total
current assets 687,832 665,578 Property and equipment, net 102,796
104,305 Other assets 193,577 177,717 Total assets $984,205 $947,600
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current
portion of long-term obligations $9 $9 Accounts payable 26,585
27,849 Other current liabilities 88,725 100,887 Total current
liabilities 115,319 128,745 Other long-term liabilities 88,902
47,869 Total stockholders' equity 779,984 770,986 Total liabilities
and stockholders' equity $984,205 $947,600 (A) Represents cash,
cash equivalents and short-term investments 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, after-tax): Three Months
Ended Dec. 29, Sept. 29, Dec. 30, 2007 2007 2006 GAAP net income
(loss) $4,729 $(1,326) $10,758 Stock option investigation and
related restatement of financial statements, and litigation
expenses 2,849 1,677 1,026 Stock-based compensation expense 1,933
938 2,190 Capital gain on sale of Condensa facility - (3,566) -
Capital loss on sale of Auburn campus - 12,569 - Write-off of
unamortized capitalized deferred bond issuance costs - 2,614 -
One-time tax benefit - - (2,147) Gain on sale of substantially all
assets of CIOL - (681) - Non-GAAP net income $9,511 $12,225 $11,827
Non-GAAP net income per diluted share $0.30 $0.39 $0.37 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 adjusted EBITDA percentage goals.
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 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. THIS
PRESS RELEASE IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT
CONSTITUTE AN OFFER TO BUY OR THE SOLICITATION OF AN OFFER TO SELL
SHARES OF COHERENT INC. COMMON STOCK. THE TENDER OFFER IS BEING
MADE ONLY PURSUANT TO THE OFFER TO PURCHASE, LETTER OF TRANSMITTAL
AND RELATED MATERIALS THAT COHERENT WILL DISTRIBUTE TO ITS
STOCKHOLDERS AFTER COHERENT, INC. FILES WITH THE SECURITIES AND
EXCHANGE COMMISSION ITS "SCHEDULE TO" AND OFFER TO PURCHASE.
STOCKHOLDERS AND INVESTORS SHOULD READ CAREFULLY THE OFFER TO
PURCHASE, LETTER OF TRANSMITTAL AND RELATED MATERIALS BECAUSE THEY
CONTAIN IMPORTANT INFORMATION, INCLUDING THE VARIOUS TERMS OF, AND
CONDITIONS TO, THE TENDER OFFER. AFTER COHERENT, INC. FILES ITS
"SCHEDULE TO" AND OFFER TO PURCHASE WITH THE SECURITIES AND
EXCHANGE COMMISSION ON FEBRUARY 15, 2008, STOCKHOLDERS AND
INVESTORS MAY OBTAIN A FREE COPY OF THE TENDER OFFER STATEMENT ON
"SCHEDULE TO," THE OFFER TO PURCHASE, LETTER OF TRANSMITTAL AND
OTHER DOCUMENTS THAT COHERENT WILL BE FILING WITH THE SECURITIES
AND EXCHANGE COMMISSION AT THE COMMISSION'S WEBSITE AT
http://www.sec.gov/ OR BY CONTACTING GEORGESON SHAREHOLDER
COMMUNICATIONS INC., THE INFORMATION AGENT FOR THE TENDER OFFER, AT
1 877-868-4962. STOCKHOLDERS ARE URGED TO CAREFULLY READ THESE
MATERIALS PRIOR TO MAKING ANY DECISION WITH RESPECT TO THE TENDER
OFFER. DATASOURCE: Coherent, Inc. CONTACT: Leen Simonet of
Coherent, Inc., +1-408-764-4161 Web site: http://www.coherent.com/
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