EX-99.1 2 a12-3423_1ex99d1.htm EX-99.1

Exhibit 99.1

 

@coherent

 

PRESS RELEASE

Editorial Contact:

 

For Release:

Leen Simonet

 

IMMEDIATE

(408) 764-4161

 

January 25, 2012

 

 

No. 1320

 

Coherent, Inc. Reports First Fiscal Quarter Results

 

SANTA CLARA, CA, January 25, 2012 — 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 31, 2011.

 

FINANCIAL HIGHLIGHTS

 

 

 

Three Months Ended

 

 

 

Dec. 31,
2011

 

Oct. 1,
2011

 

Jan. 1,
2011

 

GAAP Results

 

 

 

 

 

 

 

(in millions except per share data)

 

 

 

 

 

 

 

Bookings

 

$

201.8

 

$

195.4

 

$

234.4

 

Net sales

 

$

190.8

 

$

208.0

 

$

183.1

 

Net income

 

$

17.1

 

$

31.4

 

$

19.1

 

Diluted EPS

 

$

0.71

 

$

1.25

 

$

0.76

 

 

 

 

 

 

 

 

 

Non-GAAP Results

 

 

 

 

 

 

 

(in millions except per share data)

 

 

 

 

 

 

 

Net income

 

$

19.7

 

$

24.2

 

$

21.4

 

Diluted EPS

 

$

0.82

 

$

0.96

 

$

0.85

 

 

FIRST FISCAL QUARTER DETAILS

 

For the first fiscal quarter ended December 31, 2011, Coherent announced net sales of $190.8 million and net income, on a U.S. generally accepted accounting principles (GAAP) basis, of $17.1 million, or $0.71 per diluted share.  These results compare to net sales of $183.1 million and net income of $19.1 million, or $0.76 per diluted share, for the first quarter of fiscal 2011.  Non-GAAP net income for the first quarter of fiscal 2012 was $19.7 million, or $0.82 per diluted share.  Non-GAAP net income for the first quarter of fiscal 2011 was $21.4 million, or $0.85 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 our release.

 

Net sales for the fourth quarter of fiscal 2011 were $208.0 million and net income, on a GAAP basis, was $31.4 million, or $1.25 per diluted share.  Coherent’s tax expense for the fourth quarter of fiscal 2011 was reduced by approximately $9.7 million due to the release of tax reserves and related interest as a result of an IRS settlement and the closure of open tax years. Non-GAAP net income for the fourth quarter of fiscal 2011 was $24.2 million, or $0.96 per diluted share.

 

Bookings received during the first fiscal quarter ended December 31, 2011 of $201.8 million decreased 13.9% from $234.4 million in the same fiscal quarter of the prior year and increased by 3.3% compared to bookings of $195.4 million in the immediately preceding quarter.  The book-to-bill ratio was 1.06, resulting in backlog of $365.5 million at December 31, 2011 compared to a backlog of $356.5 million at October 1, 2011 and a backlog of $308.9 million at January 1, 2011.

 

“Coherent had good first quarter results despite the shadows cast by a credit crunch in China and sovereign debt woes in Europe. On the bookings side, we received orders for annealing lasers from two new customers in the flat panel display space and maintained market share gains in the research market,” said John Ambroseo, Coherent’s President and Chief

 


 

Executive Officer.  “There has been a noticeable shift in customer sentiment since the start of the calendar year.  OLED TV demos at CES drew significant interest and TV manufacturers are targeting shipments later this year.  There is improving outlook from semiconductor equipment manufacturers.  Credit is expected to ease in China following the Chinese New Year celebration, which should increase demand in the materials processing and advanced packaging and interconnects markets.  We are well positioned in these markets due to a strong product portfolio and solid product pipeline.”

 

Coherent ended the quarter with cash and short term investments of $203.1 million, a decrease of $17.1 million from cash and short term investments of $220.2 million at October 1, 2011. During the quarter ended December 31, 2011, the Company repurchased 450,500 shares of common stock at a cost of $20.7 million.

 

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

 

 

 

December 31,

 

October 1,

 

January 1,

 

 

 

2011

 

2011

 

2011

 

 

 

 

 

 

 

 

 

Net sales

 

$

190,767

 

$

207,961

 

$

183,111

 

Cost of sales (A) (B)

 

110,408

 

118,464

 

100,717

 

Gross profit

 

80,359

 

89,497

 

82,394

 

Operating expenses:

 

 

 

 

 

 

 

Research & development (A) (B)

 

18,779

 

19,718

 

18,530

 

Selling, general & administrative (A) (B)

 

34,631

 

36,459

 

36,078

 

Intangibles amortization

 

1,636

 

1,879

 

2,095

 

Total operating expenses

 

55,046

 

58,056

 

56,703

 

Income from operations

 

25,313

 

31,441

 

25,691

 

Other income (expense), net (B)

 

518

 

(25

)

1,754

 

Income before income taxes

 

25,831

 

31,416

 

27,445

 

Provision for income taxes(C)

 

8,780

 

36

 

8,332

 

Net income

 

$

17,051

 

$

31,380

 

$

19,113

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

Basic

 

$

0.73

 

$

1.27

 

$

0.77

 

Diluted

 

$

0.71

 

$

1.25

 

$

0.76

 

 

 

 

 

 

 

 

 

Shares used in computation:

 

 

 

 

 

 

 

Basic

 

23,462

 

24,697

 

24,688

 

Diluted

 

23,961

 

25,167

 

25,268

 

 


 

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

 

 

 

Three Months Ended

 

Stock-related compensation

 

Dec. 31,

 

Oct. 1,

 

Jan. 1,

 

expense

 

2011

 

2011

 

2011

 

Cost of sales

 

$

369

 

$

374

 

$

244

 

Research & development

 

393

 

390

 

337

 

Selling, general & administrative

 

3,260

 

2,676

 

2,342

 

Impact on income from operations

 

$

4,022

 

$

3,440

 

$

2,923

 

 

For the quarters ended December 31, 2011, October 1, 2011 and January 1, 2011, the impact on net income, net of tax was $2,694 ($0.11 per diluted share), $2,489 ($0.10 per diluted share) and $2,248 ($0.09 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:

 

 

 

Three Months Ended

 

Deferred compensation

 

Dec. 31,

 

Oct. 1,

 

Jan. 1,

 

expense (benefit)

 

2011

 

2011

 

2011

 

Cost of sales

 

$

4

 

$

(50

)

$

50

 

Research & development

 

19

 

(206

)

195

 

Selling, general & administrative

 

116

 

(1,390

)

1,495

 

Impact on income from operations

 

$

139

 

$

(1,646

)

$

1,740

 

 

For the quarters ended December 31, 2011, October 1, 2011 and January 1, 2011, the impact on other income (expense) net from gains or losses on deferred compensation plan assets was expense of $54, expense of $1,763 and income of $1,553, respectively.

 

(C)       The fourth fiscal quarter ended October 1, 2011 includes a $9,686 ($0.38 per diluted share) benefit from the release of tax reserves and related interest as a result of an IRS settlement and the closure of open tax years.

 


 

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

 

 

 

December 31,
2011

 

October 1,
2011

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash, cash equivalents and short-term investments

 

$

203,083

 

$

220,203

 

Accounts receivable, net

 

130,581

 

141,037

 

Inventories

 

148,047

 

152,385

 

Prepaid expenses and other assets

 

75,579

 

67,021

 

Total current assets

 

557,290

 

580,646

 

Property and equipment, net

 

106,028

 

104,504

 

Other assets

 

154,811

 

158,116

 

Total assets

 

$

818,129

 

$

843,266

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Current portion of long-term obligations

 

$

15

 

$

15

 

Accounts payable

 

35,379

 

39,841

 

Other current liabilities

 

109,831

 

122,549

 

Total current liabilities

 

145,225

 

162,405

 

Other long-term liabilities

 

63,580

 

62,860

 

Total stockholders’ equity

 

609,324

 

618,001

 

Total liabilities and stockholders’ equity

 

$

818,129

 

$

843,266

 

 

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

 

 

 

Three Months Ended

 

 

 

December 31,
2011

 

October 1,
2011

 

January 1,
 2011

 

GAAP net income

 

$

17,051

 

$

31,380

 

$

19,113

 

Stock-related compensation expense

 

2,694

 

2,489

 

2,248

 

One-time tax expense (benefit)

 

—

 

(9,686

)

—

 

Non-GAAP net income

 

$

19,745

 

$

24,183

 

$

21,361

 

 

 

 

 

 

 

 

 

Non-GAAP net income per diluted share

 

$

0.82

 

$

0.96

 

$

0.85

 

 

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 customer sentiment, the interest in and impact of OLED televisions and the timing of any shipments thereof, the outlook of semiconductor equipment manufacturers, timing of credit availability in China, demand in the materials processing and advanced packaging and interconnects markets, as well as the position of the Company and its products in such markets.  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 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 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, government economic policies in China and other regions of the world 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.

 

5100 Patrick Henry Dr. · P. O. Box 54980, Santa Clara, California  95056—0980 · Telephone (408) 764-4000