Coherent, Inc. Reports Strong First Fiscal Quarter Results and Raises Annual Sales Guidance
Published: Jan 29, 2010
SANTA CLARA, Calif., Jan. 28 /PRNewswire-FirstCall/ -- Coherent, Inc. , 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 2, 2010.
For the first fiscal quarter ended January 2, 2010, Coherent announced net sales of $122.8 million and net income, on a U.S. generally accepted accounting principles (GAAP) basis, of $4.2 million ($0.17 per diluted share). These results compare to net sales of $124.4 million and net loss of $14.7 million, or $0.61 per share, for the first quarter of fiscal 2009. Non-GAAP net income for the first quarter of fiscal 2010 was $5.1 million or $0.21 per diluted share and non-GAAP net income for the first quarter of fiscal 2009 was $8.6 million, or $0.36 per diluted share. Please see the reconciliation of GAAP to non-GAAP results included on the last page of our release.
Bookings received during the three months ended January 2, 2010 of $158.4 million increased 53.3% from $103.3 million in the same prior year period and increased by 18.7% compared to bookings of $133.4 million in the immediately preceding quarter. The book-to-bill ratio was 1.3, resulting in backlog of $202.8 million at January 2, 2010 compared to a backlog of $164.3 million at October 3, 2009 and a backlog of $162.0 million at December 27, 2008.
"There were a number of positive takeaways from the first quarter, including increasing sales, a return to profitability, good cash generation and very healthy bookings. Orders were up significantly over the prior year period in all four markets. We are particularly pleased with orders of approximately $22 million for our Coherent Equinox(TM) solar production tools, which are scheduled for delivery during fiscal 2010," said John Ambroseo, Coherent's President and Chief Executive Officer. "Given our backlog and outlook, we are raising our fiscal 2010 projection for net sales to $525 to $550 million. To achieve this targeted range, we are ramping production capacity and unwinding the temporary cost containment measures implemented during fiscal 2009," he added.
CONFERENCE CALL REMINDER
Summarized statement of operations information is as follows (unaudited, in thousands except per share data):
For the quarters ended January 2, 2010, October 3, 2009 and December 27, 2008, the impact on net income (loss), net of tax was $1,519 ($0.06 per diluted share), $1,308 ($0.05 per share) and $1,153 ($0.05 per diluted share), respectively.
(C) The quarter ended January 2, 2010 includes a $2,185 ($1,438 net of tax ($0.06 per diluted share)) net receipt from the settlement of litigation resulting from our internal stock option investigation. 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 December 27, 2008 includes $441 ($269 net of tax ($0.01 per diluted share)) of costs related to litigation resulting from our internal stock option investigation.
(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:
For the quarters ended January 2, 2010, October 3, 2009 and December 27, 2008, the impact on other income (expense) net from gains or losses on deferred compensation plan assets was income of $1,063, income of $1,435 and expense of $6,798, respectively.
Summarized balance sheet information is as follows (unaudited, in thousands):
Reconciliation of GAAP to Non-GAAP net income (unaudited, in thousands, net of tax):
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 fiscal 2010 annual sales guidance and second fiscal quarter sales guidance, scheduled delivery dates for the Company's products, customer qualifications of the Company's products, and the timing of shipments for the Company's products. 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 net sales, customer acceptance and adoption of our new product offerings and continued purchases of our existing 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, 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.