Coherent (COHR) : Anyone else holding? Message Board

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Biotech / Medical : Coherent (COHR) : Anyone else holding?

COHR 139.28

-0.5%

3:59 PM EST

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To: Khris Vogel who wrote (55)	1/3/1997 11:27:00 PM
From: Wozzie	of 788

Khris - can't speak to what was happening w/ COHR 6 years ago. Personally, I don't feel it's likely to be relevant in 1997 - 98. I'm long on COHR and you should be too. Regarding an entry point, I posted this on MF boards a couple weeks ago - anyone here care to comment on my questions @ the end? "So is today's a "good news / bad news" situation re acquisition of Tutcore? SANTA CLARA, Calif., Dec. 16 /PRNewswire/ -- Coherent, Inc. (Nasdaq: COHR) announced today that it has acquired 80% of the outstanding shares of Tutcore OY Ltd. of Tampere, Finland, and an option to acquire the remaining shares in the future. Tutcore specializes in the growth and processing of aluminum-free epitaxial wafers for the production of semiconductor lasers. Coherent is the world's largest manufacturer of lasers for scientific, medical and commercial applications.... TEXT DELETED ....A substantial portion of the purchase price for the acquisition will be charged to "purchased in-process technology," resulting in a non-tax deductible one-time charge in the first quarter of fiscal 1997, ending December 28, 1996, of approximately $8 to $9 million. Coherent expects to announce its first quarter financial results during the fourth week of January 1997." My question: Why do you suppose this is being expensed and not capitalized? Will certainly wipe out most or all net profits for 1Q 97. If any one has any analyst revisions / comments in the coming 6 weeks please post them here. The acquisition should be accretive long term. What I'm primarily concerned with here is damage control before 1Q 97 earnings announcement. If there is none in the coming weeks, then it seems to me we may see significant price drop upon announcement = good buy opportunity late January. Let's keep our eyes open.

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