Coherent, Inc. Reports Fourth Fiscal Quarter Results
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SANTA CLARA, Calif., Nov. 5 /PRNewswire-FirstCall/ -- Coherent, Inc. (Nasdaq: COHR) today announced financial results for its fourth fiscal quarter ended October 3, 2009, posting net sales of $107.6 million and a net loss, on a U.S. generally accepted accounting principles (GAAP) basis, of $4.5 million ($0.18 per share). These results compare to net sales of $142.0 million and net income of $4.1 million, or $0.17 per diluted share, for the fourth quarter of fiscal 2008.
Non-GAAP net loss for the fourth quarter of fiscal 2009 was $0.9 million or $0.04 per share after excluding after tax stock-related compensation expense of $1.3 million ($0.05 per share), restructuring expense of $1.1 million, net of tax ($0.04 per share), increased valuation allowances against deferred tax assets of $1.1 million ($0.05 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 fourth quarter of fiscal 2008 included an after tax charge of $0.2 million related to litigation resulting from our internal stock option investigation ($0.01 per diluted share), after tax stock-related compensation expense of $1.3 million ($0.05 per diluted share) and restructuring expense of $2.6 million, net of tax ($0.11 per diluted share). Excluding these charges, non-GAAP net income for the fourth quarter of fiscal 2008 was $8.2 million, or $0.34 per diluted share.
In comparison, net sales for the third quarter of fiscal 2009 were $98.5 million and net loss, on a GAAP basis, was $7.0 million ($0.29 per share). 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).
Orders received during the three months ended October 3, 2009 of $133.4 million decreased 5.7% from the same prior year period and increased by 50.5% compared to orders received in the immediately preceding quarter. The book-to-bill ratio was 1.2, resulting in backlog of $164.3 million at October 3, 2009 compared to a backlog of $137.6 million at July 4, 2009 and a backlog of $183.5 million at September 27, 2008.
For the fiscal year ended October 3, 2009, Coherent posted net sales of $435.9 million and a net loss on a GAAP basis of $35.3 million ($1.45 per share), as compared to the prior year period sales of $599.3 million and a net income of $23.4 million ($0.83 per diluted share). Orders received for the fiscal year ended October 3, 2009 were $419.2 million, compared to $594.0 million in orders received during the same period a year ago.
"The fourth quarter lived up to our expectations as a turning point for bookings with double-digit, sequential growth in all four end markets. Microelectronics was particularly robust as service orders responded to higher fab utilization rates, capacity expanded for OLEDs and mobile touch screen displays and additional design wins were secured. The scientific research market was also very active with record total bookings and record unit volumes for our Chameleon(TM) and amplifier product lines due to the strength of the products as well as benefits from U.S. stimulus funds. Finally, a number of our instrumentation and medical OEM customers reverted to annual buying patterns, which signals confidence in their end markets. Combined with additional first quarter opportunities and our recent acquisition, we believe that we have the foundation to achieve $475 to $500 million in fiscal 2010 sales," said John Ambroseo, Coherent's President and Chief Executive Officer.
Summarized statement of operations information is as follows (unaudited,
in thousands except per share data):
Three Months Ended Year Ended
------------------ ----------
October 3, July 4, Sept. 27, October 3, Sept. 27,
2009 2009 2008 2009 2008
---- ---- ---- ---- ----
Net sales $107,593 $98,479 $142,000 $435,882 $599,262
Cost of sales
(A) (B) (E) 70,093 64,865 86,971 274,772 347,356
------ ------ ------ ------- -------
Gross profit 37,500 33,614 55,029 161,110 251,906
Operating expenses:
Research &
development (A)
(B) (E) 15,500 15,529 17,464 61,417 74,287
Selling, general &
administrative
(A) (B) (C)
(E) 27,285 29,223 30,694 108,098 146,376
Impairment of
Goodwill (D) - - - 19,286 -
Intangibles
amortization 1,722 1,907 2,051 7,466 8,651
----- ----- ----- ----- -----
Total operating
expenses 44,507 46,659 50,209 196,267 229,314
------ ------ ------ ------- -------
Income (loss)
from operations (7,007) (13,045) 4,820 (35,157) 22,592
Other income
(expense), net (E) 1,803 3,329 1,772 (698) 14,695
----- ----- ----- ---- ------
Income (loss)
before income
taxes (5,204) (9,716) 6,592 (35,855) 37,287
Provision (benefit)
for income taxes (F) (709) (2,701) 2,445 (536) 13,884
---- ------ ----- ---- ------
Net income (loss) $(4,495) $(7,015) 4,147 $(35,319) $23,403
======= ======= ===== ========= =======
Net income (loss)
per share:
Basic $(0.18) $(0.29) $0.18 $(1.45) $0.85
====== ====== ===== ====== =====
Diluted $(0.18) $(0.29) $0.17 $(1.45) $0.83
====== ====== ===== ====== =====
Shares used in
computation:
Basic 24,390 24,331 23,696 24,281 27,505
====== ====== ====== ====== ======
Diluted 24,390 24,331 24,372 24,281 28,054
====== ====== ====== ====== ======
(A) Stock-related compensation expense included in operating results is
summarized below (all footnote amounts are unaudited, in thousands):
Stock-related compensation
expense Three Months Ended Year Ended
------------------ ----------
October 3, July 4, Sept. 27, October 3, Sept. 27,
2009 2009 2008 2009 2008
---- ---- ---- ---- ----
Cost of sales $93 $200 $264 $753 $1,893
Research &
development 250 249 282 933 1,970
Selling, general &
administrative 940 1,039 1,406 5,199 9,062
--- ----- ----- ----- -----
Impact on income
(loss) From
operations $1,283 $1,488 $1,952 $6,885 $12,925
------ ------ ------ ------ -------
For the quarters ended October 3, 2009, July 4, 2009 and September 27,
2008, the impact on net income (loss), net of tax was $1,308 ($0.05 per
share), $1,368 ($0.06 per share) and $1,308 ($0.05 per diluted share),
respectively. For the fiscal year ended October 3, 2009 and September 27,
2008, the impact on net income (loss), net of tax was $5,801 ($0.24 per
share) and $9,006 ($0.32 per diluted share), respectively.
(B) Restructuring costs included in operating results are summarized
below:
Restructuring costs Three Months Ended Year Ended
------------------ ----------
October 3, July 4, Sept. 27, October 3, Sept. 27,
2009 2009 2008 2009 2008
---- ---- ---- ---- ----
Cost of sales $743 $2,621 $2,662 $9,539 $3,990
Research &
development 519 799 406 2,608 679
Selling, general &
administrative 412 1,469 534 3,522 1,135
--- ----- --- ----- -----
Impact on income
(loss) from
operations $1,674 $4,889 $3,602 $15,669 $5,804
------ ------ ------ ------- ------
For the quarters ended October 3, 2009, July 4, 2009 and September 27,
2008, the impact on net income (loss), net of tax was $1,054 ($0.04 per
share), $3,354 ($0.14 per share) and $2,566 ($0.11 per diluted share),
respectively. For the fiscal years ended October 3, 2009 and September 27,
2008, the impact on net income (loss), net of tax was $11,483 ($0.47 per
share) and $3,940 ($0.14 per diluted share), respectively.
(C) The quarter ended October 3, 2009 includes $192 ($121 net of tax
($0.00 per share)) of costs related to litigation resulting from our
internal stock option investigation. 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 September 27, 2008 includes $302 ($184 net of tax ($0.01 per
diluted share)) of costs related to litigation resulting from our internal
stock option investigation. The fiscal year ended October 3, 2009
includes $1,140 ($820 net of tax ($0.03 per share)) of costs related to
litigation resulting from our internal stock option investigation. The
fiscal year ended September 27, 2008 includes $9,089 ($5,496 net of tax
($0.20 per diluted share)) of costs related to our restatement of
financial statements and litigation resulting from our internal stock
option investigation.
(D) The fiscal year ended October 3, 2009 includes a $19,286 ($0.79 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 Three Months Ended Year Ended
expense (benefit) ------------------ ----------
October 3, July 4, Sept. 27, October 3, Sept. 27,
2009 2009 2008 2009 2008
---- ---- ---- ---- ----
Cost of sales $43 $87 $(56) $(98) $(19)
Research &
development 182 309 (284) (593) (154)
Selling, general &
administrative 1,476 2,431 (1,627) (2,877) (1,235)
----- ----- ------ ------ ------
Impact on income
(loss) from
operations $1,701 $2,827 $(1,967) $(3,568) $(1,408)
------ ------ ------- ------- -------
For the quarters ended October 3, 2009, July 4, 2009 and September 27,
2008, the impact on other income (expense) net from gains or losses on
deferred compensation plan assets was income of $1,435, income of $2,259
and expense of $1,669, respectively. For the fiscal years ended October
3, 2009 and September 27, 2008, the impact on other income (expense) net
was expense of $4,326 and expense of $1,073, respectively.
(F) The quarter ended October 3, 2009 includes a $1,111 ($0.05 per share)
increase in valuation allowances against deferred tax assets. The fiscal
year ended October 3, 2009 includes a tax charge of $2,666 ($0.11 per
share) resulting from a recently enacted change in state tax law and a
$1,111 ($0.05 per share) increase in valuation allowances against deferred
tax assets. The fiscal year ended September 27, 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):
October 3, Sept. 27,
2009 2008
---- ----
ASSETS
Current assets:
Cash, cash equivalents and short-term investments $243,635 $218,094
Restricted cash -- 2,645
Accounts receivable, net 74,235 96,611
Inventories 97,767 120,519
Prepaid expenses and other assets 67,133 71,914
------ ------
Total current assets 482,770 509,783
Property and equipment, net 98,792 100,996
Other assets 172,042 195,604
------- -------
Total assets $753,604 $806,383
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term obligations $9 $9
Accounts payable 21,639 26,333
Other current liabilities 64,694 86,985
------ ------
Total current liabilities 86,342 113,327
Other long-term liabilities 91,691 94,621
Total stockholders' equity 575,571 598,435
------- -------
Total liabilities and stockholders' equity $753,604 $806,383
======== ========
Reconciliation of GAAP to Non-GAAP net income (unaudited, in thousands,
net of tax):
Three Months Ended Year Ended
------------------ ----------
October 3, July 4, Sept. 27, October 3, Sept. 27,
2009 2009 2008 2009 2008
---- ---- ---- ---- ----
GAAP net income
(loss) $(4,495) $(7,015) $4,147 $(35,319) $23,403
Stock option
investigation
and related
restatement of
financial
statements, and
litigation
expenses 121 74 184 820 5,496
Stock-related
compensation
expense 1,308 1,368 1,308 5,801 9,006
Impairment of
goodwill -- -- -- 19,286 --
Restructuring
costs 1,054 3,354 2,566 11,483 3,940
one-time tax
expense 1,111 -- -- 3,777 1,394
----- ----- -----
Non-GAAP net
income (loss) $(901) $(2,219) $8,205 $5,848 $43,239
===== ======= ====== ====== =======
Non-GAAP net income
per share (loss) $(0.04) $(0.09) $0.34 $0.24 $1.54
====== ======= ===== ===== =====
The Company's conference call scheduled for 1:30 p.m. PT today will include discussions relative to the fourth 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 our customers have confidence in their own end markets and the potential range of sales by Coherent in fiscal 2010. 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 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, the impact that our operations and potential acquisitions will have on revenue, customer acceptance and adoption of our new product offerings and continued purchases of our existing products and services, 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.
SOURCE Coherent, Inc.
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