So that makes mgmt. incompetent? Just because analysts didn't get all the guidance they'd hoped for spoon-fed to them at a time of their convenience? C'mon!! It is painfully obvious that the co. is doing some heavy R&D, even to the extent going out and acquiring assets from co.'s like AMOCO, Adlas, and Micracor, working hard to bring some new products to market. Maybe the analysts should get off their duffs and do their job, digging a little deeper than what IR passes along (sorry, I'm venting - I just read the article re: lazy analytical work on Oxford Health Plans in the Jan. SmartMoney). As to the increasing importance of R&D expenditures to COHR, from the lastest 10-Q:
NEW PRODUCT INTRODUCTIONS. Coherent's future operating results are dependent on its ability to rapidly develop, manufacture and market technologically innovative products that meet customers' needs. In addition, after the products are developed, Coherent must quickly manufacture such products in sufficient volumes at acceptable costs to meet demand. Without the introduction of new products and product enhancements, Coherent's products are likely to become technologically obsolete, in which case inventory may be written off and revenues would be materially and adversely affected. There can be no assurance that such new products, if and when introduced, will receive market acceptance. However, Coherent anticipates that it will continue to incur significant research and development expenditures in order to maintain its competitive position with a continuing flow of innovative, high-quality products.
As far as your impression of the CEO, I'm sorry to say that I missed the CNBC appearance you cite so as to see it for myself. What happened? |
