SANTA CLARA, Calif.,
Feb. 10, 2021 /PRNewswire/
-- Coherent, Inc. (NASDAQ: COHR), one of the world's leading
providers of lasers, laser-based technologies and laser-based
system solutions in a broad range of scientific, commercial and
industrial applications, today announced financial results for its
first fiscal quarter ended January 2,
2021.
FINANCIAL
HIGHLIGHTS
|
|
|
|
Three Months
Ended
|
|
|
Jan. 2,
2021
|
Oct. 3, 2020
|
Dec. 28,
2019
|
GAAP
Results
|
|
|
|
(in millions, except
per share data)
|
|
|
|
Net sales
|
$
326.1
|
$
316.8
|
$
320.8
|
Net income
|
$
0.1
|
$
7.7
|
$
5.8
|
Diluted EPS
|
$
0.01
|
$
0.32
|
$
0.24
|
|
|
|
|
Non-GAAP
Results
|
|
|
|
(in millions, except
per share data)
|
|
|
|
Net income
|
$
26.7
|
$
24.5
|
$
20.7
|
Diluted EPS
|
$
1.09
|
$
1.01
|
$
0.86
|
FIRST FISCAL QUARTER DETAILS
For the first quarter of fiscal 2021, Coherent announced net sales
of $326.1 million and net income, on
a U.S. generally accepted accounting principles (GAAP) basis, of
$0.1 million, or $0.01 per diluted share.
These results compare to net sales of $320.8 million and net income of $5.8 million, or $0.24 per diluted share, for the first quarter of
fiscal 2020 and net sales of $316.8
million and net income of $7.7
million, or $0.32 per diluted
share, for the fourth quarter of fiscal 2020.
Non-GAAP net income for the first quarter of fiscal 2021 was
$26.7 million, or $1.09 per diluted share. Non-GAAP net income for
the first quarter of fiscal 2020 was $20.7
million, or $0.86 per diluted
share. Non-GAAP net income for the fourth quarter of fiscal 2020
was $24.5 million, or $1.01 per diluted share. Reconciliations of GAAP
to non-GAAP financial measures for the three months ended
January 2, 2021, October 3, 2020 and December 28, 2019 appear in the financial
statements portion of this release under the heading
"Reconciliation of GAAP to Non-GAAP net income."
"We started well into our fiscal 2021 with strong results for
the first quarter. We grew bookings and revenue sequentially as
well as year-over-year, with our book to bill greater than one
across all our end markets. Microelectronics orders were strong in
the quarter within our display, semicap and API businesses, along
with encouraging Aerospace & Defense orders where our U.S.
manufacturing base and product portfolio are highly valued," said
Andy Mattes, Coherent President and
CEO. "Our continued focus on operational excellence yielded
improved margins and non-GAAP EPS and further improved our already
strong balance sheet."
Summarized statement
of operations information is as follows (unaudited, in thousands,
except per share data):
|
|
|
|
Three Months
Ended
|
|
Jan. 2,
2021
|
Oct. 3,
2020
|
|
Dec. 28,
2019
|
|
|
|
|
Net sales
|
$
|
326,053
|
$
|
316,751
|
|
$
|
320,771
|
Cost of
sales(A)(B)(C)(D)(E)
|
206,057
|
204,518
|
|
211,518
|
Gross profit
|
119,996
|
112,233
|
|
109,253
|
Operating
expenses:
|
|
|
|
|
Research &
development(A)(B)(D)
|
28,221
|
28,821
|
|
28,680
|
Selling, general &
administrative(A)(B)(D)(E)
|
74,228
|
73,081
|
|
68,551
|
Amortization of
intangible assets(C)
|
597
|
616
|
|
1,432
|
Total operating
expenses
|
103,046
|
102,518
|
|
98,663
|
Income from
operations
|
16,950
|
9,715
|
|
10,590
|
Other income (expense),
net(B)
|
(2,289)
|
436
|
|
(3,034)
|
Income before income
taxes
|
14,661
|
10,151
|
|
7,556
|
Provision for income
taxes (F)
|
14,517
|
2,462
|
|
1,763
|
Net income
|
$
144
|
$
7,689
|
|
$
5,793
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
Basic
|
$
0.01
|
$
0.32
|
|
$
0.24
|
Diluted
|
$
0.01
|
$
0.32
|
|
$
0.24
|
|
|
|
|
|
Shares used in
computations:
|
|
|
|
|
Basic
|
24,264
|
24,193
|
|
23,971
|
Diluted
|
24,455
|
24,360
|
|
24,160
|
|
|
|
|
|
|
|
|
(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
|
|
|
Jan. 2,
2021
|
Oct. 3,
2020
|
Dec. 28,
2019
|
Cost of
sales
|
$
2,272
|
$
1,884
|
$
1,182
|
Research &
development
|
1,199
|
1,554
|
561
|
Selling, general &
administrative
|
8,714
|
10,273
|
6,049
|
Impact on income from
operations
|
$
12,185
|
$
13,711
|
$
7,792
|
|
For the fiscal
quarters ended January 2, 2021, October 3, 2020 and December 28,
2019, the impact on net income, net
of tax was $10,613 ($0.43 per diluted share), $11,485 ($0.47 per
diluted share) and $6,936 ($0.29 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
income (expense), net. Deferred compensation
expense included in operating results is summarized
below:
|
Deferred
compensation expense
|
|
Three Months
Ended
|
|
|
Jan. 2,
2021
|
Oct. 3,
2020
|
Dec. 28,
2019
|
Cost of
sales
|
$
11
|
$
28
|
$
113
|
Research &
development
|
295
|
504
|
243
|
Selling, general &
administrative
|
1,806
|
3,614
|
1,799
|
Impact on income from
operations
|
$
2,112
|
$
4,146
|
$
2,155
|
For the fiscal
quarters ended January 2, 2021, October 3, 2020 and December 28,
2019, the impact on other income
(expense), net from gains or losses on deferred compensation plan
assets was income of $2,296, $4,735 and $2,292,
respectively.
|
|
(C)
|
Amortization of
intangibles is included in cost of sales and operating expenses as
summarized below:
|
Amortization of
intangibles
|
|
Three Months
Ended
|
|
|
Jan. 2,
2021
|
Oct. 3,
2020
|
Dec. 28,
2019
|
Cost of
sales
|
$
2,017
|
$
2,346
|
$
10,880
|
Amortization of
intangible assets
|
597
|
616
|
1,432
|
Impact on income from
operations
|
$
2,614
|
$
2,962
|
$
12,312
|
|
For the fiscal
quarters ended January 2, 2021, October 3, 2020 and December 28,
2019, the impact on net income, net
of tax was $2,270 ($0.09 per diluted share), $2,138 ($0.09 per
diluted share), and $8,942 ($0.37 per diluted share),
respectively.
|
|
|
(D)
|
For the fiscal
quarters ended January 2, 2021, October 3, 2020 and December 28,
2019, the impact of restructuring
charges, net of a gain on the sales leaseback of a facility in the
quarter ended October 3, 2020, was $5,383 ($4,473 net
of tax ($0.18 per diluted share)), $129 ($226 net of tax ($0.01 per
diluted share)), and $933 ($666 net of tax ($0.03 per
diluted share)), respectively.
|
|
|
(E)
|
For the fiscal
quarter ended December 28, 2019, selling, general &
administrative expense includes a legal settlement
related to an asset recovery of $1,365 ($1,106 net of tax ($0.05
per diluted share)).
|
|
|
(F)
|
The fiscal quarters
ended January 2, 2021, October 3, 2020 and December 28, 2019
included a non-recurring income
tax charge of $8,614 ($0.35 per diluted share), $2,817 ($0.12 per
diluted share) and $149 ($0.01 per diluted share),
respectively. The fiscal quarters ended January 2, 2021, October 3,
2020 and December 28, 2019 included a charge of
$611 ($0.03 per diluted share), a charge of $149 ($0.00 per diluted
share) and a benefit of $714 ($0.03 per diluted
share) of excess tax charges (benefits) for employee stock-based
compensation, respectively.
|
Summarized balance
sheet information is as follows (unaudited, in
thousands):
|
|
|
|
ASSETS
|
Jan. 2,
2021
|
|
Oct. 3,
2020
|
Current
assets:
|
|
Cash, cash
equivalents, restricted cash and short-term investments
|
$
544,376
|
|
$
476,369
|
Accounts receivable,
net
|
226,199
|
|
220,289
|
Inventories
|
416,381
|
|
426,756
|
Prepaid expenses and
other assets
|
91,814
|
|
88,250
|
Total current
assets
|
1,278,770
|
|
1,211,664
|
Property and equipment,
net
|
260,207
|
|
245,678
|
Other assets
|
350,659
|
|
370,154
|
Total
assets
|
$
1,889,636
|
|
$
1,827,496
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term
borrowings
|
$
17,136
|
|
$
16,817
|
Accounts
payable
|
62,412
|
|
60,225
|
Other current
liabilities
|
217,115
|
|
191,016
|
Total current
liabilities
|
296,663
|
|
268,058
|
Long-term
liabilities
|
641,095
|
|
632,214
|
Total stockholders'
equity
|
951,878
|
|
927,224
|
Total liabilities and
stockholders' equity
|
$
1,889,636
|
|
$
1,827,496
|
Reconciliation of
GAAP to non-GAAP net income (unaudited, in thousands, (other than
per share data), net of tax):
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Jan. 2,
2021
|
|
Oct. 3,
2020
|
|
Dec. 28,
2019
|
GAAP net
income
|
$
144
|
|
$
7,689
|
|
$
5,793
|
Stock-based
compensation expense
|
10,613
|
|
11,485
|
|
6,936
|
Amortization of
intangible assets
|
2,270
|
|
2,138
|
|
8,942
|
Restructuring charges
and other
|
4,473
|
|
226
|
|
666
|
Non-recurring tax
expense
|
8,614
|
|
2,817
|
|
149
|
Tax charge (benefit)
from stock-based compensation expense
|
611
|
|
149
|
|
(714)
|
Other impairment/asset
charges (recoveries)
|
—
|
|
—
|
|
(1,106)
|
Non-GAAP net
income
|
$
26,725
|
|
$
24,504
|
|
$
20,666
|
Non-GAAP net income per
diluted share
|
$
1.09
|
|
$
1.01
|
|
$
0.86
|
Founded in 1966, Coherent, Inc. is one of the world's leading
providers of lasers, laser-based technologies and laser-based
system solutions in a broad range of scientific, commercial and
industrial customers. Our common stock is listed on the Nasdaq
Global Select Market and is part of the Russell 1000 and Standard
& Poor's MidCap 400 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.