COHERENT, INC. SANTA CLARA, Calif., Jan. 29, 2015 /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 27, 2014.
FINANCIAL HIGHLIGHTS
Three Months Ended
------------------
Dec. 27, Sept. 27, Dec. 28,
2014 2014 2013
---- ---- ----
GAAP Results
(in millions
except per
share data)
Bookings $162.5 $182.7 $201.5
Net sales $200.6 $205.3 $193.6
Net income $17.4 $19.1 $11.7
Diluted EPS $0.69 $0.76 $0.47
Non-GAAP
Results
(in millions
except per
share data)
Net income $21.9 $24.2 $17.1
Diluted EPS $0.87 $0.96 $0.68
FIRST FISCAL QUARTER DETAILS
For the first fiscal quarter ended December 27, 2014, Coherent announced net sales of $200.6 million and net income, on a U.S. generally accepted accounting principles (GAAP) basis, of $17.4 million, or $0.69 per diluted share. These results compare to net sales of $193.6 million and net income of $11.7 million, or $0.47 per diluted share, for the first quarter of fiscal 2014.
Non-GAAP net income for the first quarter of fiscal 2015 was $21.9 million, or $0.87 per diluted share. Non-GAAP net income for the first quarter of fiscal 2014 was $17.1 million, or $0.68 per diluted share. Reconciliations of GAAP to non-GAAP financial measures for the three months ended December 27, 2014, September 27, 2014 and December 28, 2013 appear in the financial statements portion of this release under the heading "Reconciliation of GAAP to Non-GAAP net income."
Net sales for the fourth quarter of fiscal 2014 were $205.3 million and net income, on a GAAP basis, was $19.1 million, or $0.76 per diluted share. Non-GAAP net income for the fourth quarter of fiscal 2014 was $24.2 million, or $0.96 per diluted share.
Bookings received during the first fiscal quarter ended December 27, 2014 were $162.5 million. This result compares to bookings of $201.5 million in the same prior year period and $182.7 million in the immediately preceding quarter.
The book-to-bill ratio was 0.81, and ending backlog expected to ship in the next 12 months was $295.9 million at December 27, 2014, compared to a backlog of $328.3 million at September 27, 2014 and a backlog of $281.4 million at December 28, 2013.
"We posted solid numbers in our first fiscal quarter with expected benefits arising from higher volume. A better mix and lower warranty costs were positive contributors to gross profit percentage. Orders reflected the timing of certain OEM bookings and are not indicative of either a market slowdown or changes in market share," said John Ambroseo, Coherent's President and Chief Executive Officer. "We were especially pleased to have delivered our first Triple Vyper(TM) Linebeam 1500 system, which sets new standards for LTPS production. The system is undergoing production qualification at the end user's facility. We plan to ship the second 1500 system by the end of the current fiscal quarter. The third and final unit from the original order is scheduled for the fourth fiscal quarter of 2015 per the customer's request," Ambroseo said.
Coherent ended the quarter with cash, cash equivalents and short term investments of $323.0 million, an increase of $4.7 million from cash, cash equivalents and short term investments of $318.3 million at September 27, 2014.
On July 25, 2014, the Board of Directors authorized a buyback program whereby we are authorized to repurchase up to $25.0 million of our common stock from time to time through July 31, 2015. During the first quarter and through January 9, 2015, we repurchased and retired outstanding common stock for a total of $17.3 million and $7.7 million, respectively, under this plan.
On January 21, 2015, our board of directors authorized an additional stock repurchase program to repurchase up to $25 million of the Company's outstanding common stock through January 31, 2016.
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 http://www.coherent.com/Investors/. For those who are not able to listen to the live broadcast, the call will be archived for approximately three months on the company website. 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. 27, Sept. 27, Dec. 28,
2014 2014 2013
Net Sales $200,615 $205,344 $193,556
Cost of
sales(A)(B)(C) 118,296 124,426 116,010
------- ------- -------
Gross profit 82,319 80,918 77,546
Operating expenses:
Research &
development(A)(B) 19,173 18,674 20,937
Selling, general &
administrative(A)(B) 38,141 37,617 39,891
Intangibles
amortization(C) 696 733 934
--- --- ---
Total operating
expenses 58,010 57,024 61,762
------
Income from
operations 24,309 23,894 15,784
Other income
(expense), net(B) (685) 1,756 (220)
---- ----- ----
Income before income
taxes 23,624 25,650 15,564
Provision for income
taxes(D) 6,194 6,553 3,861
----- ----- -----
Net income $17,430 $19,097 $11,703
======= =======
Net income per
share:
Basic $0.70 $0.77 $0.48
===== ===== =====
Diluted $0.69 $0.76 $0.47
===== =====
Shares used in
computations:
Basic 24,936 24,880 24,542
====== ====== ======
Diluted 25,197 25,230 24,915
====== ====== ======
(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. 27, Sept. 27, Dec. 28,
2014 2014 2013
---- ---- ----
Cost of sales $597 $596 $538
Research & development 330 507 522
Selling, general &
administrative 3,463 3,587 3,808
----- ----- -----
Impact on income from
operations $4,390 $4,690 $4,868
------ ------ ------
For the quarters ended December
27, 2014, September 27, 2014 and
December 28, 2013, the impact on
net income, net of tax was $3,960
($0.16 per diluted share), $3,382
($0.13 per diluted share) and
$3,529 ($0.14 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 Three Months Ended
------------------
Dec. 27, 2014 Sept. 27, Dec. 28, 2013
2014
---
Cost of sales $14 $24 $68
Research &
development 83 126 296
Selling, general
& administrative 428 651 1,823
--- --- -----
Impact on income
from operations $525 $801 $2,187
---- ---- ------
For the quarters ended December 27,
2014, September 27, 2014 and
December 28, 2013, the impact on
other income (expense) net from
gains or losses on deferred
compensation plan assets was
income of $449, $780 and $1,931,
respectively.
(C) For the quarters ended December 27,
2014, September 27, 2014 and
December 28, 2013, the impact of
amortization of intangibles
expense was $2,180 ($1,607 net of
tax ($0.06 per diluted share)),
$2,312 ($1,713 net of tax ($0.07
per diluted share)) and $2,445
($1,823 net of tax ($0.07 per
diluted share)).
(D) The quarter ended December 27, 2014
included $1,118 ($0.04 per diluted
share) non-recurring tax benefit
from the renewal of the R&D tax
credit for fiscal 2014.
Summarized balance sheet information is as follows (unaudited, in thousands):
Dec. 27, 2014 Sept. 27, 2014
------------- --------------
ASSETS
------
Current
assets:
Cash,
cash
equivalents
and
short-
term
investments $322,951 $318,275
Accounts
receivable,
net 130,461 137,324
Inventories 161,993 170,483
Prepaid
expenses
and
other
assets 57,786 54,973
------ ------
Total
current
assets 673,191 681,055
Property
and
equipment,
net 103,978 107,424
Other
assets 200,838 210,896
------- -------
Total
assets $978,007 $999,375
======== ========
LIABILITIES
AND
STOCKHOLDERS'
EQUITY
-------------
Current
liabilities:
Accounts
payable $27,040 $32,784
Other
current
liabilities 89,118 84,535
------ ------
Total
current
liabilities 116,158 117,319
Other
long-
term
liabilities 54,223 62,407
Total
stockholders'
equity 807,626 819,649
------- -------
Total
liabilities
and
stockholders'
equity $978,007 $999,375
======== ========
Reconciliation of GAAP to Non-GAAP net income (unaudited, in thousands, net of tax):
Three Months Ended
------------------
Dec. 27, 2014 Sept. 27, 2014 Dec. 28, 2013
------------- -------------- -------------
GAAP
net
income $17,430 $19,097 $11,703
Stock-
related
compensation
expense 3,960 3,382 3,529
Intangibles
amortization 1,607 1,713 1,823
Non-
recurring
tax
benefit (1,118) - -
Non-
GAAP
net
income $21,879 $24,192 $17,055
======= ======= =======
Non-
GAAP
net
income
per
diluted
share $0.87 $0.96 $0.68
===== ===== =====
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 the timing of shipment for the Company's products and the timing of production qualification of our 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 any general market recovery, the timing and success of production qualification of our Linebeam 1500 system, our and our customers' exposure to risks associated with worldwide economic conditions, the mix and pricing of our products, our ability to control expenses, 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, 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 Helene Simonet, Chief Financial Officer at 408-764-4110. For more information about Coherent, visit the Company's Web site at http://www.coherent.com/ for product and financial updates.
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SOURCE Coherent, Inc.
