Coherent, Inc. Reports Fourth Quarter Results.SANTA CLARA Santa Clara, city, Cuba Santa Clara (sän`tä klä`rä), city (1994 est. pop. 217,000), capital of Villa Clara prov., central Cuba. , Calif.--(BW HealthWire)--Oct. 28, 1998--Coherent, Inc. (Nasdaq:COHR COHR Congolese Observatory of Human Rights ) today announced the financial results for its fourth quarter and year ended September September: see month. 26, 1998. Sales and net income for the fourth quarter were $104.6 million and $6.2 million ($.26 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. 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 a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. 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 Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. 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 DUV Deep Ultraviolet DUV Data-Under-Voice DUV Design Under Verification lithography lithography (lĭthŏg`rəfē), type of planographic or surface printing. It is distinguished from letterpress (relief) printing and from intaglio printing (in which the design is cut or etched into the plate). systems for the next generation of semiconductor equipment; (iii) continued investments by the Company's Auburn Auburn (ô`bərn). 1 City (1990 pop. 33,830), Lee co., E Ala.; inc. 1839. The city's economy centers around Auburn Univ.; there is some manufacturing. 2 City (1990 pop. 24,309), seat of Androscoggin co. Group to establish a catalog catalog, descriptive list, on cards or in a book, of the contents of a library. Assurbanipal's library at Nineveh was cataloged on shelves of slate. The first known subject catalog was compiled by Callimachus at the Alexandrian Library in the 3d cent. B.C. 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 clean-up n → nettoyage m clean-up clean n to give sth a clean-up → etw gründlich sauber machen clean-up n of backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. 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 Ber·nard , Claude 1813-1878. French physiologist noted for his study of the digestive and nervous systems. 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." Summarized financial information on an actual basis and on a proforma Proforma A financial projection based on assumptions. basis excluding the prior fiscal year write-off of purchased in-process technology is as follows: -0-
Three Months Ended Twelve Months Ended
Sept. 26, Sept. 27, Sept. 26, Sept. 27,
1998 1997 1998 1997
(In thousands, except per share data)
Actual Results:
Sales $104,647 $103,825 $410,449 $391,038
Gross profit 48,028 52,891 197,865 205,502
Income before income taxes 5,146 10,572 23,705 46,794
Net income $ 6,190 $ 6,604 $ 18,811 $ 26,292
======== ======== ======== ========
Proforma Results excluding
the $9.3 million ($9.0
million, after tax) 1997
purchased in-process
technology write-off:
Sales $104,647 $103,825 $410,449 $391,038
Gross profit 48,028 52,891 197,865 205,502
Income before income taxes 5,146 10,572 23,705 56,109
Net income $ 6,190 $ 6,604 $ 18,811 $ 35,292
======== ======== ======== ========
Earnings Per Share (Basic):
Before purchased in-process
technology write-off $ 0.26 $ 0.29 $ 0.80 $ 1.56
Purchased in-process
technology, after tax (0.40)
Net income $ 0.26 $ 0.29 $ 0.80 $ 1.16
======== ======== ======== ========
Shares outstanding used
in computation 23,718 22,866 23,374 22,664
Earnings Per Share (Diluted):
Before purchased in-process
technology write-off and
tax benefit $ 0.15 $ 0.28 $ 0.79 $ 1.50
Purchased in-process
technology, after tax (0.38)
Net income $ 0.26 $ 0.28 $ 0.79 $ 1.12
======== ======== ======== ========
Shares outstanding used
in computation 23,872 23,756 23,749 23,480
COHERENT, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
September 26, September 27,
1998 1997
ASSETS
CURRENT ASSETS:
Cash and short-term investments $ 32,898 $ 31,637
Accounts receivable, net 86,822 95,844
Inventories 103,541 86,446
Prepaid expenses and other assets 49,513 41,238
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TOTAL CURRENT ASSETS 272,774 255,165
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PROPERTY AND EQUIPMENT, NET 82,857 71,824
OTHER ASSETS 35,130 34,661
-----------------------------------------------------------------
TOTAL ASSETS $390,761 $361,650
=================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term borrowings $ 11,645 $ 19,235
Current portion of long-term
obligations 788 3,629
Accounts payable 17,851 18,039
Other current liabilities 68,763 61,574
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TOTAL CURRENT LIABILITIES 99,047 102,477
-----------------------------------------------------------------
LONG-TERM OBLIGATIONS 12,828 9,665
OTHER LONG-TERM LIABILITIES 16,263 18,275
TOTAL STOCKHOLDERS' EQUITY 262,623 231,233
-----------------------------------------------------------------
TOTAL LIABILITIES AND
STOCKHOLDER'S EQUITY $390,761 $361,650
=================================================================
-0- "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement Under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and The statements in this press release that relate to future plans, events or performance are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties, including risks associated with uncertainties related to currency adjustments, contract cancellations, manufacturing risks, competitive factors, uncertainties pertaining per·tain intr.v. per·tained, per·tain·ing, per·tains 1. To have reference; relate: evidence that pertains to the accident. 2. 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 here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . 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 CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or 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 Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. J. Quillinan, Executive Vice President and Chief Financial Officer at (408) 764-4168. For more information about Coherent, visit our Web site at http://www.cohr.com for product and financial updates. To receive a full text copy of this press release by fax, please call (877) 329-2647. |
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