(REUTERS) COHERENT <COHR.O> Q3 DIL SHR LOSS $0.21 INCLUDING CHARGE VS DIL SHR LOSS $0.07
>>Coherent Inc. Third Quarter Results Include Record Orders
SANTA CLARA, Calif.--(BW HealthWire)--July 26, 1999--Coherent, Inc. (Nasdaq: COHR - news) today announced financial results for its third fiscal quarter ended July 3, 1999. Incoming orders were $120.0 million, 21% higher than the same quarter last year, representing a new record for the Company. Sales for the third quarter were $115.1 million, 17% higher than the corresponding prior year period.
During the quarter, the Company completed the acquisition of Star Medical Technologies, Inc. (Coherent Star), the manufacturer of the highly successful and reliable hair removal LightSheer(TM) Diode Laser Systems, for $65 million in cash plus acquisition-related fees. Current quarter proforma net income before the In-Process Research and Development (IPR&D) after tax charge of $10.7 million ($0.45 per diluted share) first mentioned in our press release of April 27, 1999 was $5.7 million ($0.24 per diluted share). This compares favorably to a net loss of $1.7 million ($0.07 per diluted share) during the same quarter last fiscal year. The Company recorded a net loss of $5.1 million ($0.21 per diluted share) for the current quarter ended July 3, 1999, including the aforementioned charge.
Bernard Couillaud, Coherent President and Chief Executive Officer commented, '' I am pleased with the continued strong results of our Electro-Optical segment and the progress being made within our Medical Group. To continue the trend of increasing operational efficiency, during the most recent quarter, we have take several steps.''
''During the third quarter, we reorganized our Electro-Optical segment by merging our Auburn Group with our Laser Products Group. The combination of the two groups under the management of our Laser Group should permit a better leverage of the powerful combined distribution network to enhance the penetration of our photonics and optics business and to foster the growth of our subassemblies business.''
''During Q3, with the window of opportunity closing on us, we also decided to exit from our joint venture strategy relative to the cable TV market. While we are not currently directly involved in the telecom business, we intend to leverage our technologies in this fast developing market.''
Lambda Physik, the Company's 80% owned German subsidiary continues to make progress in its efforts to become a qualified supplier to the DUV lithography market. ''This is a major opportunity for us,'' said Couillaud. ''After qualification by the major stepper manufacturers, we are now entering the critical phase of capturing the confidence of the end-users. We are committed to continuing the process needed to position ourselves as a significant player in the DUV lithography market.''
As mentioned earlier, during Q3 the Company completed the acquisition of Star Medical Technologies. ''The market demand for the Company's hair removal products has surpassed our internal expectations, with well over 100 systems shipped during this quarter.'' The newest addition to the LightSheer(TM) family, the LightSheer(TM) SC model, was introduced on May 17, 1999 at the American Society for Aesthetic Plastic Surgery Annual Meeting. The LightSheerSC, featuring the ability to offer permanent hair reduction and treat the widest array of skin types, is the first high-performance diode laser hair removal system offered at a moderate price.
Summarized financial information on an actual basis and on a
proforma basis excluding the IP R&D charge is as follows:
Three Months Ended Nine Months Ended
July 3, June 27, July 3, June 27,
1999 1998 1999 1998
(In thousands, except per share data)
Actual Results:
Sales $115,051 $98,552 $337,219 $305,802
Gross profit 54,745 44,691 159,953 149,837
Income (loss) before
income taxes (7,881) (3,498) 6,080 18,559
Net income (loss) $ (5,064) $(1,727) $4,582 $ 12,621
======= ======= ======= ========
Proforma Results excluding
$16.0 million ($10.7 million,
after tax)IPR&D charge:
Sales $115,051 $98,552 $337,219 $305,802
Gross profit 54,745 44,691 159,953 149,837
Income (loss) before
income taxes 8,119 (3,498) 22,080 18,559
Net income (loss) $ 5,670 $(1,727) $ 15,316 $ 12,621
======= ======= ======== ========
Earnings (Loss) Per Share (Basic):
Before IPR&D charge $ 0.24 $(0.07) $0.64 $0.54
IPR&D charge, after tax (0.45) -- (0.45) --
------ ----- ------ -----
Net income (loss) $(0.21) $(0.07) $0.19 $0.54
====== ====== ===== =====
Shares outstanding
used in computation 24,018 23,487 23,914 23,259
Earnings (Loss) Per Share (Diluted):
Before IPR&D charge $0.24 $(0.07) $0.63 $0.53
IPR&D charge, after tax (0.45) (0.44)
------ ------ ------ ------
Net income (loss) $(0.21) $(0.07) $0.19 $0.53
===== ===== ===== =====
Shares outstanding
used in computation 24,018 23,487 24,451 23,800
"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 for product and financial updates. To receive a
full text copy of this press release by fax, please call 800/549-0676.
Summarized financial information (unaudited) is as follows:
Coherent Inc.
Robert J. Quillinan, 408/764-4168
biz.yahoo.com
Three Nine
Months Ended Months Ended
July 3, June 27, July 3, June 27,
1999 1998 1999 1998
(In thousands, except per share data)
Net sales $115,051 $98,552 $337,219 $305,802
Cost of sales 60,306 53,861 177,266 155,965
------ ------ ------- -------
Gross profit 54,745 44,691 159,953 149,837
Operating expenses:
Research and development 11,917 11,598 33,611 33,634
In-process R&D 16,000 - 16,000 -
Intangibles amortization 1,413 1,173 3,625 3,458
Selling, general
and administrative 32,553 34,931 99,601 93,348
------ ------ ------ ------
Total operating expenses 61,883 47,702 152,837 130,440
------ ------ ------ ------
Income (loss) from operations (7,138) (3,011) 7,116 19,397
------ ------ ------ ------
Other expense, net 743 487 1,036 838
------ ------ ------ ------
Income (loss) before income taxes (7,881) (3,498) 6,080 18,559
Provision (benefit)
for income taxes (2,817) (1,771) 1,498 5,938
------ ------ ------ ------
Net income (loss) $(5,064) $(1,727) $4,582 $12,621
====== ====== ====== ======
Earnings (Loss) Per Share:
Basic $(0.21) $(0.07) $0.19 $0.54
Diluted $(0.21) $(0.07) $0.19 $0.53
Shares Outstanding:
Basic 24,018 23,487 23,914 23,259
Diluted 24,018 23,487 24,451 23,800
July 3, September 26,
1999 1998
---- ----
(In thousands)
ASSETS
CURRENT ASSETS:
Cash and short-term investments $ 63,897 $ 32,898
Accounts receivable, net 87,078 86,822
Inventories 102,847 103,541
Prepaid expenses and other assets 61,071 49,513
------ ------
TOTAL CURRENT ASSETS 314,893 272,774
PROPERTY AND EQUIPMENT, NET 86,568 82,857
OTHER ASSETS 83,257 35,130
------ ------
TOTAL ASSETS $484,718 $390,761
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term borrowings $ 14,535 $ 11,645
Current portion of
long-term obligations 7,533 788
Accounts payable 17,361 17,851
Other current liabilities 74,594 68,763
------ ------
TOTAL CURRENT LIABILITIES 114,023 99,047
LONG-TERM OBLIGATIONS 75,824 12,828
OTHER LONG-TERM LIABILITIES 28,199 16,263
TOTAL STOCKHOLDERS' EQUITY 266,672 262,623
------- -------
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY $484,718 $390,761
======== ========
--------------------------------------------------------------------------------
Contact
biz.yahoo.com; |
