COHERENT, INC. SANTA CLARA, Calif., Jan. 28, 2016 /PRNewswire/ -- Coherent, Inc. (NASDAQ, COHR), a world leader in lasers and laser-based technology for scientific, commercial and industrial customers, today announced financial results for its first fiscal quarter ended January 2, 2016.
FINANCIAL HIGHLIGHTS
Three Months Ended
------------------
January 2, October 3, December 27,
2016 2015 2014
---- ---- ----
GAAP Results
(in millions except per
share data)
Bookings $273.0 $205.4 $162.5
Net sales $190.3 $209.6 $200.6
Net income $20.3 $27.3 $17.4
Diluted EPS $0.84 $1.10 $0.69
Non-GAAP Results
(in millions except per share data)
Net income $23.9 $31.2 $21.9
Diluted EPS $0.99 $1.25 $0.87
FIRST FISCAL QUARTER DETAILS
For the first fiscal quarter ended January 2, 2016, Coherent announced net sales of $190.3 million and net income, on a U.S. generally accepted accounting principles (GAAP) basis, of $20.3 million, or $0.84 per diluted share. These results compare to net sales of $200.6 million and net income of $17.4 million, or $0.69 per diluted share, for the first quarter of fiscal 2015.
Non-GAAP net income for the first quarter of fiscal 2016 was $23.9 million, or $0.99 per diluted share. Non-GAAP net income for the first quarter of fiscal 2015 was $21.9 million, or $0.87 per diluted share. Reconciliations of GAAP to non-GAAP financial measures for the three months ended January 2, 2016, October 3, 2015 and December 27, 2014 appear in the financial statements portion of this release under the heading "Reconciliation of GAAP to Non-GAAP net income."
Net sales for the fourth quarter of fiscal 2015 were $209.6 million and net income, on a GAAP basis, was $27.3 million, or $1.10 per diluted share. Non-GAAP net income for the fourth quarter of fiscal 2015 was $31.2 million, or $1.25 per diluted share.
Record bookings received during the first fiscal quarter ended January 2, 2016 of $273.0 million increased 68.0% from $162.5 million in the same prior year period and increased by 32.9% compared to bookings of $205.4 million in the immediately preceding quarter.
The book-to-bill ratio was 1.43, and ending backlog expected to ship in the next 12 months was $370.0 million at January 2, 2016, compared to a backlog of $309.5 million at October 3, 2015 and a backlog of $295.9 million at December 27, 2014.
"We have recently been highlighting a developing investment cycle in OLED production capacity. A number of orders were placed for our Vyper(TM) Linebeam systems in December that contributed to record setting quarterly bookings. Order inflow for large format (i.e., Linebeam 1000's and larger) systems has continued into the current quarter. We are on track to set a new bookings record for the March quarter and we are expecting another tranche of orders in the second half of fiscal 2016," said John Ambroseo, Coherent's President and Chief Executive Officer. "We are making incremental capacity investments for system testing and integration in Göttingen, Germany and optics fabrication in Richmond, California that will enable us to meet delivery commitments beginning in the June quarter and running through at least calendar 2017. We believe we can support long-term service needs in our existing refurbishment centers," Ambroseo added.
Coherent ended the quarter with cash, cash equivalents and short term investments of $336.2 million, an increase of $10.7 million from cash, cash equivalents and short term investments of $325.5 million at October 3, 2015.
CONFERENCE CALL REMINDER
The Company will host a conference call today to discuss its financial results at 1:30 P.M. Pacific (4:30 P.M. Eastern). A listen-only broadcast of the conference call can be accessed on the Company's website at http://www.coherent.com/Investors/. For those who are not able to listen to the live broadcast, the call will be archived for approximately three months on the Company's website. A transcript of management's prepared remarks can be found at http://www.coherent.com/Investors/.
Summarized statement of operations information is as follows (unaudited, in thousands except per share data):
Three Months Ended
------------------
January 2, October 3, December 27,
2016 2015 2014
---- ---- ----
Net Sales $190,275 $209,622 $200,615
Cost of
sales(A)(B)(D)(E) 106,377 118,628 118,296
------- ------- -------
Gross profit 83,898 90,994 82,319
Operating expenses:
Research &
development(A)(B) 19,140 19,988 19,173
Selling, general &
administrative(A)(B) 36,774 36,052 38,141
Gain from business
combination(C) - (1,316) -
Amortization of
intangible
assets(D) 701 658 696
--- --- ---
Total operating
expenses 56,615 55,382 58,010
------ ------ ------
Income from
operations 27,283 35,612 24,309
Other expense,
net(B) (222) (1,876) (685)
---- ------ ----
Income before income
taxes 27,061 33,736 23,624
Provision for income
taxes(F) 6,775 6,434 6,194
----- ----- -----
Net income $20,286 $27,302 $17,430
======= ======= =======
Net income per
share:
Basic $0.85 $1.11 $0.70
===== ===== =====
Diluted $0.84 $1.10 $0.69
===== ===== =====
Shares used in
computations:
Basic 23,996 24,632 24,936
====== ====== ======
Diluted 24,236 24,914 25,197
====== ====== ======
(A) Stock-based compensation expense
included in operating results is
summarized below (all footnote
amounts are unaudited, in
thousands, except per share
data):
Stock-based
compensation
expense Three Months Ended
------------------
January 2, October 3, December 27,
2016 2015 2014
---- ---- ----
Cost of
sales $605 $593 $597
Research &
development 426 531 330
Selling,
general &
administrative 2,714 3,371 3,463
----- ----- -----
Impact on
income from
operations $3,745 $4,495 $4,390
------ ------ ------
For the quarters ended January 2,
2016, October 3, 2015 and
December 27, 2014, the impact on
net income, net of tax was $3,394
($0.14 per diluted share), $3,253
($0.13 per diluted share) and
$3,960 ($0.16 per diluted share),
respectively.
(B) Changes in deferred compensation
plan liabilities are included in
cost of sales and operating
expenses while gains and losses
on deferred compensation plan
assets are included in other
expense, net. Deferred
compensation expense (benefit)
included in operating results is
summarized below:
Deferred
compensation
expense
(benefit) Three Months Ended
------------------
January 2, October 3, December 27,
2016 2015 2014
---- ---- ----
Cost of
sales $33 $(55) $14
Research
&
development 132 (236) 83
Selling,
general
&
administrative 702 (1,301) 428
--- ------ ---
Impact on
income
from
operations $867 $(1,592) $525
---- ------- ----
For the quarters ended January 2,
2016, October 3, 2015 and
December 27, 2014, the impact on
other expense, net from gains or
losses on deferred compensation
plan assets was income of $932,
expense of $1,467 and income of
$449, respectively.
(C) For the quarter ended October 3,
2015, the gain from business
combination was $1,316 ($0.05 per
diluted share).
(D) For the quarters ended January 2,
2016, October 3, 2015 and
December 27, 2014, the impact of
amortization of intangibles
expense was $2,092 ($1,448 net of
tax ($0.06 per diluted share)),
$2,068 ($1,643 net of tax ($0.07
per diluted share)) and $2,180
($1,607 net of tax ($0.06 per
diluted share)), respectively.
(E) For the quarter ended October 3,
2015, the impact of inventory
step-up costs related to
acquisitions was $579 ($366 net
of tax ($0.01 per diluted
share)).
(F) The quarter ended January 2, 2016
and December 27, 2014, included
$1,221 ($0.05 per diluted share)
and $1,118 ($0.04 per diluted
share) non-recurring tax benefit
from the renewal of the R&D tax
credit for fiscal 2015 and 2014,
respectively.
Summarized balance sheet information is as follows (unaudited, in thousands):
January 2, 2016 October 3, 2015
--------------- ---------------
ASSETS
------
Current assets:
Cash, cash equivalents and
short-term investments $336,174 $325,515
Accounts receivable, net 144,595 142,260
Inventories 158,006 156,614
Prepaid expenses and other
assets 32,733 28,294
------ ------
Total current assets 671,508 652,683
Property and equipment, net 99,732 102,445
Other assets 214,116 213,819
------- -------
Total assets $985,356 $968,947
======== ========
LIABILITIES AND
STOCKHOLDERS' EQUITY
--------------------
Current liabilities:
Short-term borrowings $5,000 $ -
Accounts payable 28,858 33,379
Other current liabilities 89,776 89,211
------ ------
Total current liabilities 123,634 122,590
Other long-term liabilities 51,483 49,939
Total stockholders' equity 810,239 796,418
------- -------
Total liabilities and
stockholders' equity $985,356 $968,947
======== ========
Certain reclassifications have been
made to prior year amounts to conform
to the current year's presentation.
Reconciliation of GAAP to Non-GAAP net income (unaudited, in thousands (other than per share data), net of tax):
Three Months Ended
------------------
January 2, October 3, December 27,
2016 2015 2014
---- ---- ----
GAAP net income $20,286 $27,302 $17,430
Stock-based
compensation
expense 3,394 3,253 3,960
Amortization of
intangible assets 1,448 1,643 1,607
Inventory step-up
on acquisition - 366 -
Non-recurring tax
benefit (1,221) - (1,118)
Gain from business
combination - (1,316) -
--- ------ ---
Non-GAAP net income $23,907 $31,248 $21,879
======= ======= =======
Non-GAAP net
income per diluted
share $0.99 $1.25 $0.87
===== ===== =====
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements, as defined under the Federal securities laws. These forward-looking statements include the statements in this press release that relate to anticipated bookings for the March quarter and the timing of orders in the second half of fiscal 2016, our ability to meet delivery commitments in the June quarter and running through at least calendar 2017 and our ability to support long-term service needs in our existing refurbishment centers and our intent to make incremental capacity investments in Germany and California. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement. Factors that could cause actual results to differ materially include risks and uncertainties, including, but not limited to, risks associated with, any general worldwide economic recovery, growth in demand for our products (including those which are used in the flat panel display market, including the manufacture of OLED displays), the worldwide demand for flat panel displays (such as OLED), the demand for and use of the Company's products in commercial applications, our successful implementation of our customer design wins, our and our customers' exposure to risks associated with worldwide economic conditions, the mix and pricing of our products, our ability to accurately forecast future periods, customer acceptance and adoption of our new product offerings, continued timely availability of products and materials from our suppliers, our ability to timely ship our products and our customers' ability to accept such shipments, our ability to successfully integrate our recent acquisition into our operations, our ability to have our customers qualify our product offerings, worldwide government economic policies, our ability to successfully construct incremental capacity at our facilities and other risks identified in the Company's SEC filings. Readers are encouraged to refer to the risk disclosures and critical accounting policies and estimates described in the Company's reports on Forms 10-K, 10-Q and 8-K, as applicable and as filed from time-to-time by the Company. Actual results, events and performance may differ materially from those presented herein. 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 update these forward-looking statements as a result of events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Founded in 1966, Coherent, Inc. is one of the world's leading providers of lasers and laser-based technology for scientific, commercial and industrial customers. Our common stock is listed on the Nasdaq Global Select Market and is part of the Russell 2000 and Standard & Poor's SmallCap 600 Index. For more information about Coherent, visit the company's website at www.coherent.com/ for product and financial updates.
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SOURCE Coherent, Inc.
