Coherent, Inc. Reports First Fiscal Quarter Results
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, |
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 |
|
(B) |
Changes in deferred compensation plan liabilities are included in cost of sales and operating expenses while gains and |
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 |
|
(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
|
|
(D) |
For the fiscal quarters ended January 2, 2021, October 3, 2020 and December 28, 2019, the impact of restructuring |
(E) |
For the fiscal quarter ended December 28, 2019, selling, general & administrative expense includes a legal settlement |
(F) |
The fiscal quarters ended January 2, 2021, October 3, 2020 and December 28, 2019 included a non-recurring income |
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.
SOURCE Coherent, Inc.
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