Patience is rewarded. Earnings better than expected. COHR 15 3/8 +2. Better yet, technical indicators pointing higher in near term.
>>>>Coherent Inc. First Quarter Results Exceed Street Expectations
SANTA CLARA, Calif.--(BUSINESS WIRE)--Jan. 26, 1999--Coherent, Inc. (Nasdaq:COHR) today announced the financial results for its first quarter ended December 26, 1998. Sales and net income for the quarter were $105.6 million and $4.3 million ($.18 per diluted share), respectively, compared to consensus estimates of $.16 per share. This also compares favorably to the preceding quarter's proforma net income of $.15 per diluted share, which excluded a $2.7 million ($.11 per diluted share) non-recurring tax benefit.
Profit before income taxes improved $1.1 million compared to the quarter ended September 26,1998. This resulted primarily from improvements in the medical segment's results. Current quarter sales increased by approximately $4.3 million (4.2%) compared to the same quarter last year and $1.0 million (1.0%) from the preceding quarter. Incoming orders for the first quarter of $110.5 million, represent a decrease of $6.0 million (5.1%) from the prior year same period but an increase of $12.9 million (13.2%) from fourth quarter 1998 results.
Strengthening of major foreign currencies against the U.S. dollar also helped sales for the first time in over a year. Accordingly, sales were positively impacted by $2.2 million and $3.7 million compared to the same quarter last year and the fourth quarter ended September 26, 1998, respectively. The gross margin improved to 48.2% from 45.9% in fourth quarter ended September 26, 1998.
Coherent's capital and research and development investments over the past year are beginning to show positive results. Coherent's Lambda Physik subsidiary continues to make headway in the DUV lithography market. It is anticipated that factory acceptance tests for steppers using Lambda's excimer lasers will begin within the second quarter of fiscal 1999. The Company's Auburn Group catalog distribution system for optics and photonics products has shown steady growth since its release in mid September 1998. Additionally, Coherent Semiconductor Group, which manufactures high power laser diodes, had strong orders during the past quarter as evidenced by increases of 140% and 301%, respectively, over the preceding quarter and the corresponding prior year period.
Bernard Couillaud, Coherent's president and chief executive officer, said, "I am pleased that the Medical Group was able to recover to mild profitability for the first time in three quarters. I believe that our future business prospects are improving with opportunities in all areas within the medical business segment. We are all looking forward to the addition of Star Medical Technologies, Inc. and the synergies it will provide within the Medical Group as well as its strategic role in the expansion of our Semiconductor Group. The reorganizational efforts are continuing within the Coherent Medical Group and I remain confident that we will successfully conclude our search for a new Medical Group president in the near future."
Summarized financial information (unaudited) is as follows:
Three Months Ended
Dec. 26, Dec. 27, Sept. 26,
1998 1997 1998
(In thousands, except per share data)
Actual results:
Net sales $ 105,631 $ 101,369 $ 104,647
Cost of goods sold 54,672 48,919 56,619
Gross profit 50,959 52,450 48,028
Operating expenses:
Research and development 10,195 10,428 10,900
Selling, general and administrative 33,629 29,935 32,393
Total operating expenses 44,544 40,363 43,293
Income from operations 6,415 12,087 4,735
Other income (expense), net (140) (342) 411
Income before income taxes 6,275 11,745 5,146
Income taxes:
Provision for income taxes 2,009 4,235 1,673
Non-recurring tax benefit -- -- 2,717
Net income $ 4,266 $ 7,510 $ 6,190
Earnings per share:
Basic $ .18 $ .33 $ .26
Diluted .18 .32 .26
Shares outstanding:
Basic 23,809 23,080 23,718
Diluted 24,210 23,598 23,872
Condensed Consolidated Balance Sheets
Dec. 26, Sept. 26,
1998 1998
Assets
Current Assets:
Cash and short-term investments $ 34,061 $ 32,898
Accounts receivable, net 87,705 86,822
Inventories 104,887 103,541
Prepaid expenses and other assets 49,866 49,513
Total Current Assets 276,519 272,774
Property and Equipment, Net 84,660 82,857
Other Assets 35,181 35,130
Total Assets $396,360 $390,761
Liabilities and Stockholders' Equity
Current Liabilities:
Short-term borrowings $ 16,141 $ 11,645
Current portion of long-term obligations 975 788
Accounts payable 13,738 17,851
Other current liabilities 67,372 68,763
Total Current Liabilities 98,226 99,047
Long-term Obligations 12,013 12,828
Other Long-term Liabilities 18,022 16,263
Total Stockholders' Equity 268,099 262,623
Total Liabilities and Stockholders' Equity $396,360 390,761
"Safe Harbor" Statement Under the Private Securities Litigation
Reform Act
The statements in this press release that relate to future plans,
events or performance are forward-looking statements that involve
risks and uncertainties, including risks associated with uncertainties
related to currency adjustments, contract cancellations, manufacturing
risks, competitive factors, uncertainties pertaining to customer
orders, demand for products and services, development of markets for
the Company's products and services and other risks identified in the
Company's SEC filings. Actual results, events and performance may
differ materially. 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 release publicly the
result of any revisions to these forward-looking statements that may
be made to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events.
Readers are encouraged to refer to the risk disclosures described
in the Company's reports on Forms 10-K, 10-Q and 8K, as applicable.
Founded in 1966, Coherent, Inc. is a Standard & Poor's SmallCap
600 company and a world leader in the design, manufacture, and
marketing of lasers and systems for medical, scientific and commercial
applications. Please direct any questions to Robert J. Quillinan,
Executive Vice President and Chief Financial Officer at (408)
764-4168. For more information about Coherent, visit our Web site at
cohr.com. To receive a full text copy of this press release
by fax, please call (877) 329-2647.
--30--ap/sf* eb/sf
CONTACT: Coherent, Inc.
Robert J. Quillinan, 408/764-4168
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: MEDICINE COMPUTERS/ELECTRONICS COMED EARNINGS
Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
URL: businesswire.com
<<<<<<<<<<<<<<<<
cohr.com |
