SANTA CLARA, Calif., Aug. 4 /PRNewswire-FirstCall/ -- Coherent,
Inc. (NASDAQ:COHR) today announced financial results for its third
fiscal quarter ended July 4, 2009, posting net sales of $98.5
million and a net loss, on a U.S. generally accepted accounting
principles (GAAP) basis, of $7.0 million ($0.29 per share). These
results compare to net sales of $157.0 million and net income of
$8.4 million, or $0.35 per diluted share, for the third quarter of
fiscal 2008. Non-GAAP net loss for the third quarter of fiscal 2009
was $2.2 million or $0.09 per share after excluding after tax
stock-related compensation expense of $1.4 million ($0.06 per
share), restructuring expense of $3.4 million, net of tax ($0.14
per share) and an after tax charge of $0.1 million related to
litigation resulting from our internal stock option investigation
($0.00 per share). Net income for the third quarter of fiscal 2008
included after tax stock-related compensation expense of $2.0
million ($0.08 per diluted share), restructuring expense of $1.4
million, net of tax ($0.06 per diluted share) and an after tax
charge of $0.9 million related to litigation resulting from our
internal stock option investigation ($0.04 per diluted share).
Excluding these charges, non-GAAP net income for the third quarter
of fiscal 2008 was $12.7 million or $0.53 per diluted share. In
comparison, net sales for the second quarter of fiscal 2009 were
$105.4 million and net loss, on a GAAP basis, was $9.1 million
($0.38 per share). Non-GAAP net income for the second quarter of
fiscal 2009 was $0.3 million or $0.01 per diluted share after
excluding after tax stock-related compensation expense of $2.0
million ($0.08 per share), restructuring expense of $4.5 million,
net of tax ($0.18 per share), an after tax charge of $0.4 million
related to litigation resulting from our internal stock option
investigation ($0.01 per share) and a non-cash tax expense
resulting from a recently enacted change in state tax law of $2.7
million ($0.11 per share). Orders received during the three months
ended July 4, 2009 of $88.6 million decreased 40.5% from the same
prior year period and decreased by 5.5% compared to orders received
in the immediately preceding quarter. The book-to-bill ratio was
0.90, resulting in backlog of $137.6 million at July 4, 2009
compared to a backlog of $145.9 million at April 4, 2009 and a
backlog of $188.6 million at June 28, 2008. As of July 4, 2009,
year-to-date sales were $328.3 million and a net loss on a GAAP
basis of $30.8 million ($1.27 per share), as compared to the prior
year period sales of $457.3 million and a net income of $19.3
million ($0.66 per diluted share). Orders received for the nine
month period ended July 4, 2009 were $285.8 million, compared to
$452.5 million in orders received during the same period a year
ago. "In what has been a difficult macroeconomic environment,
Coherent satisfied several key operational objectives for the third
quarter, including quarterly revenues at the high-end of guidance,
good cash generation, and the completion of another major component
of our footprint consolidation by exiting the Munich facility. We
also executed against our market and product roadmap by introducing
a suite of laser solutions targeted at the high-power materials
processing market and extensions to our OPS platform for the
instrumentation and research markets. These products will allow us
to access new markets and strengthen our position in existing
markets," said John Ambroseo, Coherent's President and CEO. "We
anticipate that total orders will begin their recovery in the
current fiscal quarter, led by microelectronics systems and
service, and continue through fiscal 2010. As these orders convert
to revenue, we can begin to realize the benefits from our footprint
consolidation projects that have thus far been masked by the
pullback in revenue," he concluded. Summarized statement of
operations information is as follows (unaudited, in thousands
except per share data): Three Months Ended Nine Months Ended
------------------ ----------------- July 4, April 4, June 28, July
4, June 28, 2009 2009 2008 2009 2008 ---- ---- ---- ---- ---- Net
sales $98,479 $105,422 $157,024 $328,289 $457,262 Cost of sales
(A)(B)(E) 64,865 65,815 87,765 204,679 260,385 ------ ------ ------
------- ------- Gross profit 33,614 39,607 69,259 123,610 196,877
Operating expenses: Research & development (A)(B)(E) 15,529
15,610 19,076 45,917 56,823 Selling, general & administrative
(A)(B) (C)(E) 29,223 27,962 39,480 80,813 115,682 Impairment of
goodwill(D) - - - 19,286 - Intangibles amortization 1,907 1,894
2,165 5,744 6,600 ----- ----- ----- ----- ----- Total operating
expenses 46,659 45,466 60,721 151,760 179,105 ------ ------ ------
------- ------- Income (loss) from operations (13,045) (5,859)
8,538 (28,150) 17,772 Other income (expense), net(E) 3,329 (1,600)
2,779 (2,501) 12,923 ----- ------ ----- ------ ------ Income (loss)
before income taxes (9,716) (7,459) 11,317 (30,651) 30,695
Provision (benefit) for income taxes(F) (2,701) 1,671 2,915 173
11,439 ------ ----- ----- --- ------ Net income (loss) $(7,015)
$(9,130) 8,402 $(30,824) $19,256 ======= ======= ===== ========
======= Net income (loss) Per share: Basic $(0.29) $(0.38) $0.36
$(1.27) $0.67 ====== ====== ===== ====== ===== Diluted $(0.29)
$(0.38) $0.35 $(1.27) $0.66 ====== ====== ===== ====== ===== Shares
used in computation: Basic 24,331 24,258 23,514 24,245 28,775
====== ====== ====== ====== ====== Diluted 24,331 24,258 24,110
24,245 29,314 ====== ====== ====== ====== ====== (A) Stock-related
compensation expense included in operating results is summarized
below: Stock-related compensation expense Three Months Ended Nine
Months Ended ------------------ ----------------- July 4, April 4,
June 28, July 4, June 28, 2009 2009 2008 2009 2008 ---- ---- ----
---- ---- Cost of sales $200 $177 $484 $660 $1,629 Research &
development 249 239 561 683 1,688 Selling, general &
administrative 1,039 2,009 2,275 4,260 7,657 ----- ----- -----
----- ----- Impact on income (loss) from operations $1,488 $2,425
$3,320 $5,603 $10,974 ------ ------ ------ ------ ------- For the
quarters ended July 4, 2009, April 4, 2009 and June 28, 2008, the
impact on net income (loss), net of tax was $1,368 ($0.06 per
share), $1,972 ($0.08 per share) and $2,031 ($0.08 per diluted
share), respectively. For the nine months ended July 4, 2009 and
June 28, 2008, the impact on net income (loss), net of tax was
$4,493 ($0.19 per share) and $7,698 ($0.26 per diluted share),
respectively. (B)Restructuring costs included in operating results
are summarized below: Restructuring costs Three Months Ended Nine
Months Ended ------------------ ----------------- July 4, April 4,
June 28, July 4, June 28, 2009 2009 2008 2009 2008 ---- ---- ----
---- ---- Cost of sales $2,621 $3,153 $1,328 $8,796 $1,328 Research
& development 799 824 273 2,089 273 Selling, general &
administrative 1,469 1,023 601 3,110 601 ----- ----- --- ----- ---
Impact on income (loss) from operations $4,889 $5,000 $2,202
$13,995 $2,202 ------ ------ ------ ------- ------ For the quarters
ended July 4, 2009, April 4, 2009 and June 28, 2008, the impact on
net income (loss), net of tax was $3,354 ($0.14 per share), $4,463
($0.18 per share) and $1,374 ($0.06 per diluted share),
respectively. For the nine months ended July 4, 2009 and June 28,
2008, the impact on net income (loss), net of tax was $10,429
($0.43 per share) and $1,374 ($0.05 per diluted share),
respectively. (C) The quarter ended July 4, 2009 includes $108 ($74
net of tax ($0.00 per share)) of costs related to litigation
resulting from our internal stock option investigation. The quarter
ended April 4, 2009 includes $398 ($356 net of tax ($0.01 per
share)) of costs related to litigation resulting from our internal
stock option investigation. 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 nine months ended July 4, 2009 includes
$948 ($699 net of tax ($0.03 per share)) of costs related to
litigation resulting from 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. (D) The nine months ended July 4, 2009
include a $19,286 ($0.80 per share) non-cash charge for the
impairment of all of the goodwill of our Commercial Lasers and
Components segment. (E) Changes in deferred compensation plan
liabilities are included in cost of sales and operating expenses
while gains and losses on deferred compensation plan assets are
included in other income (expense) net. Deferred compensation
expense (benefit) included in operating results is summarized
below: Deferred compensation expense (benefit) Three Months Ended
Nine Months Ended ------------------ ----------------- July 4,
April 4, June 28, July 4, June 28, 2009 2009 2008 2009 2008 ----
---- ---- ---- ---- Cost of sales $87 $(54) $35 $(141) $37 Research
& development 309 (96) 161 (775) 130 Selling, general &
administrative 2,431 (1,001) 1,035 (4,354) 392 ----- ------- -----
------ --- Impact on income (loss) from operations $2,827 $(1,151)
$1,231 $(5,270) $559 ------ ------- ------ ------- ---- For the
quarters ended July 4, 2009, April 4, 2009 and June 28, 2008, the
impact on other income (expense) net from gains or losses on
deferred compensation plan assets was income of $2,259, expense of
$1,222 and income of $773, respectively. For the nine months ended
July 4, 2009 and June 28, 2008, the impact on other income
(expense) net was expense of $5,761 and income of $596,
respectively. (F) The nine months ended July 4, 2009 and the
quarter ended April 4, 2009 include a tax charge of $2,666 ($0.11
per share) resulting from a recently enacted change in state tax
law. The nine months ended June 28, 2008 include a tax charge of
$1,394 ($0.05 per diluted share) in connection with a dividend from
one of our European subsidiaries. Summarized balance sheet
information is as follows (unaudited, in thousands): July 4, Sept.
27, 2009 2008 ---- ---- ASSETS ------ Current assets: Cash, cash
equivalents and short-term investments $221,888 $218,094 Restricted
cash -- 2,645 Accounts receivable, net 75,120 96,611 Inventories
109,039 120,519 Prepaid expenses and other assets 78,231 71,914
------ ------ Total current assets 484,278 509,783 Property and
equipment, net 99,418 100,996 Other assets 175,451 195,604 -------
------- Total assets $759,147 $806,383 ======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------ Current liabilities: Current
portion of long-term obligations $8 $9 Accounts payable 18,226
26,333 Other current liabilities 82,244 86,985 ------ ------ Total
current liabilities 100,478 113,327 Other long-term liabilities
88,231 94,621 Total stockholders' equity 570,438 598,435 -------
------- Total liabilities and stockholders' equity $759,147
$806,383 ======== ======== Reconciliation of GAAP to Non-GAAP net
income (unaudited, in thousands, net of tax): Three Months Ended
Nine Months Ended ------------------ ----------------- July 4,
April 4, June 28, July 4, June 28, 2009 2009 2008 2009 2008 ----
---- ---- ---- ---- GAAP net income (loss) $(7,015) $(9,130) $8,402
$(30,824) $19,256 Stock option investigation and related
restatement of financial statements, and litigation expenses 74 356
935 699 5,313 Stock-related compensation expense 1,368 1,972 2,031
4,493 7,698 Impairment of goodwill -- -- -- 19,286 -- Restructuring
costs 3,354 4,463 1,374 10,429 1,374 One-time tax expense -- 2,666
-- 2,666 1,394 --- ----- --- ----- ----- Non-GAAP net income (loss)
$(2,219) $327 $12,742 $6,749 $35,035 ======== ==== ======= ======
======= Non-GAAP net income per share (loss) $(0.09) $0.01 $0.53
$0.28 $1.20 ====== ===== ===== ===== ===== The Company's conference
call scheduled for 1:30 p.m. PT today will include discussions
relative to the third 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 whether
and the timing of when new products will allow Coherent to access
new markets and strengthen its position in existing markets, the
timing and impact of a recovery for total orders and the components
thereof, including microelectronics systems and service and the
timing and impact to Coherent of a realization of benefits from its
footprint consolidation projects. 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, 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. DATASOURCE: Coherent, Inc. CONTACT: Leen Simonet
of Coherent, Inc., +1-408-764-4161 Web Site:
http://www.coherent.com/
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