COHR earnings released:
SANTA CLARA, Calif.--(BW HealthWire)--Oct. 28, 1998--Coherent, Inc. (Nasdaq:COHR) today announced the financial results for its fourth quarter and year ended September 26, 1998. Sales and net income for the fourth quarter were $104.6 million and $6.2 million ($.26 per diluted share), respectively. Net income included a $2.7 million ($.11 per diluted share) non-recurring tax benefit. Sales increased by $6.1 million (6.2%) and net income (exclusive of the non-recurring tax benefit) increased by $5.2 million compared to the third quarter. Sales increased by $0.8 million (0.8%) and net income, exclusive of the aforementioned tax benefit, decreased by $3.1 million compared to the fourth quarter last year.
Sales for the fiscal year were $410.4 million, a 5% increase from last year. Net income, exclusive of the $2.7 million tax benefit, was $16.1 million, a 54% decrease from last year's income, excluding the $9.0 million write-off of purchased in-process technology. Comparative sales were adversely impacted by more than $12 million as a result of changes in the relative strength of the U.S. dollar against major foreign currencies.
Net income for the year was negatively impacted by (i) poor performance in the Coherent Medical Group during the second half of the year; (ii) continued investments by Lambda Physik, the Company's subsidiary, in DUV lithography systems for the next generation of semiconductor equipment; (iii) continued investments by the Company's Auburn Group to establish a catalog distribution system; and (iv) a decrease in the gross profit rate due to lower sales of higher margin medical products and the impact of the strengthening of the U.S. dollar against major foreign currencies. Gross profit rates for the fourth quarter and fiscal year were 45.9% and 48.2% compared to 50.9% and 52.6% for the corresponding prior year periods.
Orders for the fourth quarter were $97.7 million, a 5% increase from the fourth quarter last year and a 2% decrease from the third quarter. This order rate was achieved despite a much lower net order rate within our medical segment that was primarily attributable to a general clean-up of backlog as part of our broad based reorganization efforts within the group. For the year, orders were $422.8 million, a 4% increase from last year. Orders for the year were adversely impacted by $13 million as a result of the strengthening of the U.S. dollar against major foreign currencies.
Bernard Couillaud, Coherent's president and chief executive officer, said, "While I am pleased that we were able to quickly recover from the $0.07 per share loss of last quarter, I do not believe that this past year's financial results are indicative of our business or prospects. The reorganizational efforts are continuing within the Coherent Medical Group and I am satisfied that the process we have started is in the best interest of our shareholders, customers and employees. We managed to reduce the loss in Coherent Medical Group from $9 million in the third quarter to approximately $1 million in the fourth quarter. I expect that the Group will return to profitability and I remain confident that we will successfully conclude our search for a new Medical Group president within the current quarter." |
