COHERENT, INC. 
By SANTA CLARA, Calif., Jan. 27, 2011 /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 January 1, 2011.
FINANCIAL HIGHLIGHTS
Three Months Ended
------------------
GAAP Results Jan. 1, Oct. 2, Jan. 2,
(in millions except per share
data)
2011 2010 2010
---- ---- ----
Bookings $234.4 $192.5 $158.4
Net sales $183.1 $166.4 $122.8
Net income $19.1 $9.9 $4.2
Diluted EPS $0.76 $0.39 $0.17
Non-GAAP Results
(in millions except per share
data)
Net income $21.4 $14.9 $5.1
Diluted EPS $0.85 $0.59 $0.21
FIRST FISCAL QUARTER DETAILS
For the first fiscal quarter ended January 1, 2011, Coherent announced net sales of $183.1 million and net income, on a U.S. generally accepted accounting principles (GAAP) basis, of $19.1 million, or $0.76 per diluted share. These results compare to net sales of $122.8 million and net income of $4.2 million, or $0.17 per diluted share, for the first quarter of fiscal 2010. Non-GAAP net income for the first quarter of fiscal 2011 was $21.4 million, or $0.85 per diluted share, and non-GAAP net income for the first quarter of fiscal 2010 was $5.1 million, or $0.21 per diluted share. Please see the reconciliation of GAAP to non-GAAP results included at the end of our release.
Net sales for the fourth quarter of fiscal 2010 were $166.4 million and net income, on a GAAP basis, was $9.9 million, or $0.39 per diluted share. Non-GAAP net income for the fourth quarter of fiscal 2010 was $14.9 million, or $0.59 per diluted share.
Bookings received during the three months ended January 1, 2011 of $234.4 million increased 48.0% from $158.4 million in the same prior year period and increased by 21.8% compared to bookings of $192.5 million in the immediately preceding quarter. The book-to-bill ratio was 1.28, resulting in backlog of $308.9 million at January 1, 2011 compared to a backlog of $262.0 million at October 2, 2010 and a backlog of $202.8 million at January 2, 2010.
"We continue to see strength in our markets as evidenced by record sales and bookings. We are also realizing the benefits of our prior restructuring efforts, which combined with higher revenues and favorable mix led to record operating profit," said John Ambroseo, Coherent's President and Chief Executive Officer. "Positive news continues to flow in the second fiscal quarter. We have just received another substantial order for $32 million for lasers used in OLED and LCD manufacturing. These systems are scheduled for delivery through the end of the calendar year. The combined impact of record orders, record backlog and the completion of the Hypertronics transaction result in a higher revenue outlook for fiscal 2011 of $760-$780 million," he added.
Coherent ended the quarter with cash and short term investments of $296.6 million, an increase of $33.8 million from cash and short term investments of $262.8 million at October 2, 2010.
"In addition to the record performance on the income statement, we have done an outstanding job managing working capital and ended the first quarter with approximately $297 million in cash and cash investments. We plan to deploy some of this cash on targeted acquisitions. We have also received approval from our Board to repurchase up to $75 million in common stock over the next twelve months," Ambroseo said.
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
------------------
January October January
1, 2, 2,
2011 2010 2010
---- ---- ----
Net sales $183,111 $166,398 $122,815
Cost of sales (A) (B) (D) 100,717 96,579 71,783
------- ------ ------
Gross profit 82,394 69,819 51,032
Operating expenses:
Research & development
(A) (B) (D) 18,530 19,192 15,410
Selling, general &
administrative (A) (B)
(C) (D) 36,078 32,848 27,979
Intangibles amortization 2,095 2,044 1,961
----- ----- -----
Total operating expenses 56,703 54,084 45,350
------ ------ ------
Income from operations 25,691 15,735 5,682
Other income (expense),
net(D) 1,754 (1,000) 792
----- ------ ---
Income before income
taxes 27,445 14,735 6,474
Provision for income
taxes 8,332 4,882 2,295
----- ----- -----
Net income $19,113 $9,853 $4,179
======= ====== ======
Net income per share:
Basic $0.77 $0.40 $0.17
===== ===== =====
Diluted $0.76 $0.39 $0.17
===== ===== =====
Shares used in
computation:
Basic 24,688 24,677 24,469
====== ====== ======
Diluted 25,268 25,240 24,678
====== ====== ======
Stock-related compensation expense included in
operating results is summarized below (all footnote
(A) amounts are unaudited, in thousands):
Stock-related
compensation expense Three Months Ended
------------------
Jan. 1, Oct. 2, Jan. 2,
2011 2010 2010
---- ---- ----
Cost of sales $244 $241 $219
Research & development 337 311 273
Selling, general &
administrative 2,342 1,500 1,670
----- ----- -----
Impact on income from
operations $2,923 $2,052 $2,162
------ ------ ------
For the quarters ended January 1, 2011, October 2, 2010, and January
2, 2010, the impact on net income, net of tax was $2,248 ($0.09 per
diluted share), $1,864 ($0.07 per diluted share) and $1,519 ($0.06
per diluted share), respectively.
Restructuring costs included in operating results are
(B) summarized below:
Restructuring costs Three Months Ended
------------------
Jan. 1, Oct. 2, Jan. 2,
2011 2010 2010
---- ---- ----
Cost of sales $- $3,453 $309
Research & development - 282 409
Selling, general &
administrative - 861 518
--- --- ---
Impact on income
(loss) from
operations $- $4,596 $1,236
--- ------ ------
Restructuring costs for the quarter ended January 1, 2011 were not
material to our results of operations and have not been broken out
here or in our non-GAAP reconciliation. For the quarters ended
October 2, 2010 and January 2, 2010, the impact on net income, net
of tax was $3,209 ($0.13 per diluted share) and $813 ($0.03 per
diluted share), respectively.
The quarter ended October 2, 2010 includes $2,185
($1,438 net of tax ($0.06 per diluted share)) net
receipt from the settlement of litigation resulting
(C) from our internal stock option investigation.
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
(D) operating results is summarized below:
Deferred compensation
expense (benefit) Three Months Ended
------------------
Jan. 1, Oct. 2, Jan. 2,
2011 2010 2010
---- ---- ----
Cost of sales $50 $- $32
Research & development 195 15 132
Selling, general &
administrative 1,495 68 1,114
----- --- -----
Impact on income from
operations $1,740 $83 $1,278
------ --- ------
For the quarters ended January 1, 2011, October 2, 2010 and January
2, 2010, the impact on other income (expense) net from gains or
losses on deferred compensation plan assets was income of $1,553,
expense of $74 and income of $1,063, respectively.
Summarized balance sheet information is as follows (unaudited, in
thousands):
January 1, October 2,
---------- ----------
2011 2010
---- ----
ASSETS
Current assets:
Cash, cash equivalents and short-
term investments $296,574 $262,771
Restricted cash 625 625
Accounts receivable, net 107,938 110,211
Inventories 121,210 113,858
Prepaid expenses and other assets 66,874 55,052
------ ------
Total current assets 593,221 542,517
Property and equipment, net 88,343 90,339
Other assets 158,393 170,248
------- -------
Total assets $839,957 $803,104
======== ========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Current portion of long-term
obligations $16 $18
Accounts payable 40,869 39,737
Other current liabilities 99,649 92,165
------ ------
Total current liabilities 140,534 131,920
Other long-term liabilities 80,447 79,721
Total stockholders' equity 618,976 591,463
------- -------
Total liabilities and stockholders'
equity $839,957 $803,104
======== ========
Reconciliation of GAAP to Non-GAAP net income (unaudited, in
thousands, net of tax):
Three Months Ended
January October January
1, 2, 2,
-------- 2010 --------
2011 2010
---- ----
GAAP net income $19,113 $9,853 $4,179
Stock-related
compensation expense 2,248 1,864 1,519
Restructuring costs -- 3,209 813
Stock option
investigation and
litigation benefit -- -- (1,438)
Non-GAAP net income $21,361 $14,926 $5,073
======= ======= ======
Non-GAAP net income
per diluted share $0.85 $0.59 $0.21
===== ===== =====
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 our fiscal 2011 revenue outlook, the strength of our markets and our plans for future acquisitions. 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, our successful implementation of our customer design wins, our and our customers' exposure to risks associated with worldwide economic slowdowns, the ability of our customers to forecast their own end markets, our ability to increase our sales volumes, our ability to accurately forecast future periods, customer acceptance and adoption of our new product offerings, level of government spending and continued purchases of our existing and new products and services, 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, our ability to identify and then negotiate, sign and close any potential acquisition, our ability to successfully integrate the acquired business assets and to expand our operations in Singapore 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 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.
