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Biotech / Medical : Coherent (COHR) : Anyone else holding? -- Ignore unavailable to you. Want to Upgrade?

To: Doug who wrote (682)	4/28/1999 10:12:00 AM
From: JDN	Read Replies (1) \| Respond to of 788

Dear Doug and all: Well, here is the verbage portion of the earnings release. You can get the tables at the original pr. All in all looks ok. Company still looks strong financially and seems to be improving operationally. JDN Coherent, Inc. Second Quarter Results Include Record Sales SANTA CLARA, Calif.--(BW HealthWire)--April 27, 1999--Coherent, Inc. (NASDAQ:COHR) today announced financial results for its second quarter ended April 3, 1999. Sales and net income for the quarter were $116.5 million and $5.4 million ($.22 per diluted share), respectively. This compares favorably to the preceding quarter's sales and net income of $105.6 million and $4.3 million ($.18 per diluted share), respectively. More than 61% of second quarter sales were to international customers. Net income for the second quarter was impacted by lower gross profit as a percentage of sales and higher SG&A expenses. The lower gross profit percentage was caused by a stronger U.S. Dollar; lower margins within our optics and photonics business located in Auburn, California resulting from an increase in inventory reserves reflecting changes in the business and an increase in costs associated with implementing the catalog distribution system; pricing pressures within the Coherent Medical Group; and lower unit sales of traditionally higher margin medical aesthetic products. Higher SG&A expenses were primarily the result of additional receivable reserves. Current quarter sales increased by approximately $10.7 million (10%) compared to the same quarter last year and $10.9 million (10%) from the preceding quarter. Incoming orders for the second quarter were $110.3 million, an increase of $1.1 million (1%) from the same prior year period, but were flat compared to the first quarter 1999. Bernard Couillaud, Coherent's CEO said, "We are not there yet, but I believe we are making good progress to return Coherent to the level of profitability appropriate for a company of its size. We are particularly pleased with the quarterly results of our Electro-Optical segment. "Our Lambda Physik subsidiary continues to make excellent progress in the DUV lithography market. On April 15th, Lambda announced the receipt of follow-on orders from Silicon Valley Group for the next generation of NovaLine(R) excimer laser systems. During the most recent quarter, new orders and sales of lasers for this application approximated $4.0 million each. "The Coherent Semiconductor Group, manufacturers of high-powered laser diodes, continued its excellent performance as orders and sales again increased almost two-fold from the corresponding prior year period. And Coherent Laser Group's record revenue and bookings were remarkable considering they were achieved during a period when many capital equipment businesses have experienced a slowdown." Earlier today the Company completed its acquisition of Star Medical Technologies, Inc., (Star) from Palomar Medical Technologies, Inc., and certain Star employees for $65 million. Star, with revenues of approximately $47 million over the last twelve months, recently received clearance from the United States Food and Drug Administration (FDA) to market the LightSheer(tm) diode laser system for permanent hair reduction. This acquisition will be treated as a purchase and management estimates that its third quarter results for the three months ending July 3, 1999 will include a one time In-Process R&D pre-tax and after tax charge of $16.0 million and $10.5 million ($0.44 per diluted share), respectively. The remaining goodwill and other intangibles of approximately $51 million will be amortized over their useful lives ranging primarily from 7 to 15 years.