Coherent, Inc. Reports First Fiscal Quarter Results

             Coherent, Inc. Reports First Fiscal Quarter Results

PR Newswire

SANTA CLARA, Calif., Jan. 24, 2013

SANTA CLARA, Calif., Jan. 24, 2013 /PRNewswire/ --Coherent, Inc. (NASDAQ:
COHR), a world leader in providing photonics based solutions to the commercial
and scientific research markets, today announced financial results for its
first fiscal quarter ended December 29, 2012.



FINANCIAL HIGHLIGHTS
                                    Three Months Ended
GAAP Results                        Dec. 29,  Sept. 29,  Dec. 31,

(in millions except per share data) 2012      2012       2011
Bookings                            $176.0    $169.3     $201.8
Net sales                           $183.2    $188.7     $190.8
Net income                          $14.2     $12.5      $17.1
Diluted EPS                         $0.58     $0.52      $0.71
Non-GAAP Results

(in millions except per share data)
Net income                          $17.7     $17.1      $19.7
Diluted EPS                         $0.73     $0.71      $0.82



FIRST FISCAL QUARTER DETAILS

For the first fiscal quarter ended December 29, 2012, Coherent announced net
sales of $183.2 million and net income, on a U.S. generally accepted
accounting principles (GAAP) basis, of $14.2 million, or $0.58 per diluted
share. These results compare to net sales of $190.8 million and net income of
$17.1 million, or $0.71 per diluted share, for the first quarter of fiscal
2012. Non-GAAP net income for the first quarter of fiscal 2013 was $17.7
million, or $0.73 per diluted share. Non-GAAP net income for the first
quarter of fiscal 2012 was $19.7 million, or $0.82 per diluted share. For a
complete overview of the differences between GAAP and non-GAAP results, please
see the reconciliation table included at the end of this release.

Net sales for the fourth quarter of fiscal 2012 were $188.7 million and net
income, on a GAAP basis, was $12.5 million, or $0.52 per diluted share.
Coherent's results for the fourth quarter of fiscal 2012 included a charge of
approximately $4.3 million after tax due to the write-off of previously
acquired intangible assets and inventories and a tax benefit of approximately
$2.8 million due to the release of tax valuation allowances. Non-GAAP net
income for the fourth quarter of fiscal 2012 was $17.1 million, or $0.71 per
diluted share.

Bookings received during the first fiscal quarter ended December 29, 2012 of
$176.0 million decreased 12.8% from $201.8 million in the same prior year
period and increased by 3.9% compared to bookings of $169.3 million in the
immediately preceding quarter. The book-to-bill ratio was 0.96, resulting in
backlog of $348.1 million at December 29, 2012, compared to a backlog of
$352.8 million at September 29, 2012 and a backlog of $365.5 million at
December 31, 2011.

"Demand improved modestly on a sequential basis as customers in advanced
packaging and instrumentation started to rebuild their inventories. Orders
for service from semicap customers also increased as utilization rates began
to inch back up. We also remain very enthusiastic about the FPD market where
penetration of LTPS displays continues to rise. On a combined basis, these
are early, positive indicators supporting a recovery thesis in the second half
of calendar 2013," stated John Ambroseo, Coherent's President and CEO. 

"Our acquisition of Lumera completes a multi-pronged strategy in the area of
short-pulse lasers targeting an increasing number of commercial applications
including the cutting of strengthened glass, cataract surgery and cold marking
of metals and plastics. Lumera products and technologies complement
Coherent's existing portfolio as well as our recent additions from Innolight
and MiDAZ. The resulting building blocks allow us to provide configurable
solutions with market leading performance, reliability, size and cost in a
market that we project to grow to $400 million or more by 2016," Ambroseo
said.

Coherent ended the quarter with cash, cash equivalents and short term
investments of $179.8 million, a decrease of $45.1 million from cash, cash
equivalents and short term investments of $224.9 million at September 29,
2012. During the first quarter of fiscal 2013, the Company paid a one-time
cash dividend to its shareholders of $24.0 million, acquired Lumera Laser for
approximately $51 million in cash and acquired Innolight Innovative Laser and
Systemtechnik GmbH for approximately $18 million in cash.

CONFERENCE CALL REMINDER

The Company will host a conference call today to discuss its financial results
at 1:30 P.M. Pacific (4:30 P.M. Eastern). A listen-only broadcast of the
conference call can be accessed on the Company's website at either
http://www.coherent.com/Investors/or http://www.earnings.com. For those who
are not able to listen to the live broadcast, the call will be archived for
approximately three months on both web sites. A transcript of management's
prepared remarks can be found at http://www.coherent.com/Investors/.

Summarized statement of operations information is as follows (unaudited, in
thousands except per share data):



                        Three Months Ended
                                           Dec. 29,  Sept. 29,  Dec. 31,
                                           2012      2012       2011
Net sales                                  $183,202  $188,654   $190,767
Cost of sales ^(A) (B) (C)                 105,567   110,921    110,408
Gross profit                               77,635    77,733     80,359
Operating expenses:
Research & development ^(A) (B)            19,301    19,852     18,779
Selling, general & administrative ^(A) (B) 36,982    35,617     34,631
Intangibles amortization^(C)               854       5,406      1,636
Total operating expenses                   57,137    60,875     55,046
Income from operations                     20,498    16,858     25,313
Other income (expense), net ^(B)           (1,437)   1,299      518
Income before income taxes                 19,061    18,157     25,831
Provision for income taxes ^(D)            4,908     5,609      8,780
Net income                                 $14,153   $12,548    $17,051
Net income per share:
Basic                                      $0.60     $0.53      $0.73
Diluted                                    $0.58     $0.52      $0.71
Shares used in computation:
Basic                                      23,770    23,629     23,462
Diluted                                    24,222    24,095     23,961

(A) Stock-related compensation expense included in operating results is
summarized below (all footnote amounts are unaudited, in thousands, except per
share data):



Stock-related compensation expense Three Months Ended
                                   Dec. 29,  Sept. 29,  Dec. 31,
                                   2012      2012       2011
Cost of sales                      $435      $407       $369
Research & development             476       397        393
Selling, general & administrative  4,083     3,201      3,260
Impact on income from operations   $4,994    $4,005     $4,022

For the quarters ended December 29, 2012, September 29, 2012 and December 31,
2011, the impact on net income, net of tax was $3,511 ($0.14 per diluted
share), $3,076 ($0.13 per diluted share) and $2,694 ($0.11 per diluted share),
respectively.

(B) 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
                                        Dec. 29,  Sept. 29,  Dec. 31,
                                        2012      2012       2011
Cost of sales                           $14       $34        $4
Research & development                  62        154        19
Selling, general & administrative       426       1,028      116
Impact on income from operations        $502      $1,216     $139

For the quarters ended December 29, 2012, September 29, 2012 and December 31,
2011, the impact on other income (expense) net from gains or losses on
deferred compensation plan assets was income of $294, income of $1,207 and
expense of $54, respectively.

(C) The quarter ended September 29, 2012 includes a $4,260 ($4,260 net of
tax ($0.18 per diluted share)) charge due to the write-off of previously
acquired intangible assets ($3,970 recorded in intangibles amortization) and
inventories ($290 recorded in cost of sales).

(D) The quarter ended September 29, 2012 includes a $2,790 ($0.12 per
diluted share) benefit due to decreases in valuation allowances against
deferred tax assets.

Summarized balance sheet information is as follows (unaudited, in thousands):



                                                                                                            Dec. 29,  Sept.
                                                                                                                      29,
                                                                                                            2012
                                                                                                                      2012
ASSETS
Current assets:
Cash, cash equivalents and short-term investments                                  $179,777  $224,929
Accounts receivable, net           126,010   144,345
Inventories 169,002   160,113
Prepaid expenses and other assets                   76,694    85,098
Total current assets          551,483   614,485
Property and equipment, net            116,574   115,096
Other                                                                                                       229,047   151,191
assets
Total assets     $897,104  $880,772
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term obligations                       $ 15      $ 17
Accounts payable        29,396    29,088
Other current liabilities       129,160   124,683
Total current liabilities          158,571   153,788
Other long-term liabilities     67,269    55,328
Total stockholders' equity        671,264   671,656
Total liabilities and stockholders' equity                         $897,104  $880,772



Reconciliation of GAAP to Non-GAAP net income (unaudited, in thousands, net of
tax):

                                          Three Months Ended
                                          Dec. 29,  Sept. 29,  Dec. 31,
                                          2012      2012
                                                               2011
GAAP net income                           $14,153   $12,548    $17,051
Stock-related compensation expense        3,511     3,076      2,694
Write-off of intangibles and inventory    --        4,260      --
Non-recurring tax expense (release) items --        (2,790)    --
Non-GAAP net income                       $17,664   $17,094    $19,745
Non-GAAP net income per diluted share     $ 0.73   $ 0.71    $ 0.82



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 any timing for or occurrence
of a market, demand or economic recovery, FPD market penetration by LTPS
displays, projected growth (if any) of the short-pulse laser market and the
size thereof, the timing and ability of the Company to create products
utilizing the assets of the Lumera, Innolight and MiDAZ acquisitions and the
achievement, amount and timing of any incremental sales as related to the
acquisition of Lumera, Innolight and MiDAZ. 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 any
general market recovery, growth in demand for our products, growth in demand
for FPD products, the demand for and use of short-pulse lasers in commercial
applications, our successful implementation of our customer design wins, our
successful implementation and utilization of the assets acquired from our
Lumera, Innolight and MiDAZ acquisitions, our ability to successfully
integrate Lumera, Innolight and MiDAZ into our operations, our and our
customers' exposure to risks associated with worldwide economic conditions
and, the ability of our customers to forecast their own end markets, our
ability to accurately forecast future periods, customer acceptance and
adoption of our new product offerings, continued timely availability of
products and materials from our suppliers, our ability to timely ship our
products and our customers' ability to accept such shipments, our ability to
have our customers qualify our product offerings, worldwide government
economic policies and other risks identified in the Company's SEC filings.
Readers are encouraged to refer to the risk disclosures and critical
accounting policies and estimates 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
Standard & Poor's SmallCap 600 Index and 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.

Website: http://www.coherent.com
Contact: Leen Simonet, +1-408-764-4161
 
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