Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Coherent, Inc. Reports Second Fiscal Quarter Results By: Coherent, Inc. via Business Wire May 11, 2022 at 16:09 PM EDT 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 second fiscal quarter ended April 2, 2022. FINANCIAL HIGHLIGHTS Three Months Ended Six Months Ended Apr. 2, 2022 Jan. 1, 2022 Apr. 3, 2021 Apr. 2, 2022 Apr. 3, 2021 GAAP Results (in millions, except per share data) Net sales $ 370.2 $ 384.5 $ 374.0 $ 754.7 $ 700.0 Net income (loss) $ 33.7 $ 30.3 $ (158.2 ) $ 63.9 $ (158.1 ) Diluted EPS $ 1.35 $ 1.21 $ (6.49 ) $ 2.57 $ (6.50 ) Non-GAAP Results (in millions, except per share data) Net income $ 42.5 $ 57.7 $ 35.2 $ 100.2 $ 61.9 Diluted EPS $ 1.70 $ 2.32 $ 1.42 $ 4.02 $ 2.52 SECOND FISCAL QUARTER DETAILS For the second quarter of fiscal 2022, Coherent announced net sales of $370.2 million and net income, on a U.S. generally accepted accounting principles (GAAP) basis, of $33.7 million, or $1.35 per diluted share. These results compare to net sales of $374.0 million and net loss of $158.2 million, or $6.49 per diluted share, for the second quarter of fiscal 2021 and net sales of $384.5 million and net income of $30.3 million, or $1.21 per diluted share, for the first quarter of fiscal 2022. The net loss in the second quarter of fiscal 2021 includes $179.2 million, net of tax, in merger and acquisition costs, primarily due to a merger agreement termination fee paid to Lumentum Holdings Inc. Non-GAAP net income for the second quarter of fiscal 2022 was $42.5 million, or $1.70 per diluted share. Non-GAAP net income for the second quarter of fiscal 2021 was $35.2 million, or $1.42 per diluted share. Non-GAAP net income for the first quarter of fiscal 2022 was $57.7 million, or $2.32 per diluted share. Reconciliations of GAAP to non-GAAP financial measures for the three months ended April 2, 2022, January 1, 2022 and April 3, 2021 and six months ended April 2, 2022 and April 3, 2021 appear in the financial statements portion of this release under the heading “Reconciliation of GAAP to Non-GAAP net income.” Summarized statement of operations information is as follows (unaudited, in thousands, except per share data): Three Months Ended Six Months Ended Apr. 2, 2022 Jan. 1, 2022 Apr. 3, 2021 Apr. 2, 2022 Apr. 3, 2021 Net sales $ 370,204 $ 384,507 $ 373,982 $ 754,711 $ 700,035 Cost of sales(A)(B)(C)(D) 215,670 216,943 232,957 432,613 439,014 Gross profit 154,534 167,564 141,025 322,098 261,021 Operating expenses: Research & development(A)(B)(D) 31,679 29,769 32,007 61,448 60,228 Selling, general & administrative(A)(B)(D) 66,517 93,774 72,662 160,291 146,890 Merger and acquisition costs(E) 1,044 977 231,996 2,021 231,996 Amortization of intangible assets(C) 563 565 596 1,128 1,193 Total operating expenses 99,803 125,085 337,261 224,888 440,307 Income (loss) from operations 54,731 42,479 (196,236 ) 97,210 (179,286 ) Other expense, net(B) (5,729 ) (6,185 ) (2,526 ) (11,914 ) (4,815 ) Income (loss) before income taxes 49,002 36,294 (198,762 ) 85,296 (184,101 ) Provision (benefit) for income taxes (F) 15,326 6,029 (40,547 ) 21,355 (26,030 ) Net income (loss) $ 33,676 $ 30,265 $ (158,215 ) $ 63,941 $ (158,071 ) Net income (loss) per share: Basic $ 1.36 $ 1.23 $ (6.49 ) $ 2.60 $ (6.50 ) Diluted $ 1.35 $ 1.21 $ (6.49 ) $ 2.57 $ (6.50 ) Shares used in computations: Basic 24,708 24,542 24,389 24,625 24,326 Diluted 24,935 24,919 24,389 24,927 24,326 (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 Six Months Ended Apr. 2, 2022 Jan. 1, 2022 Apr. 3, 2021 Apr. 2, 2022 Apr. 3, 2021 Cost of sales $ 1,971 $ 1,731 $ 1,989 $ 3,702 $ 4,261 Research & development 1,158 1,236 1,030 2,394 2,229 Selling, general & administrative(1) 5,914 28,940 6,073 34,854 14,787 Impact on income (loss) from operations $ 9,043 $ 31,907 $ 9,092 $ 40,950 $ 21,277 For the fiscal quarters ended April 2, 2022, January 1, 2022 and April 3, 2021, the impact on net income (loss), net of tax was $7,655 ($0.31 per diluted share), $29,613 ($1.20 per diluted share) and $7,746 ($0.31 per diluted share), respectively. For the six months ended April 2, 2022 and April 3, 2021, the impact on net income (loss), net of tax was $37,268 ($1.48 per diluted share) and $18,359 ($0.75 per diluted share), respectively. (1) The fiscal quarter ended January 1, 2022 includes a $19.7 million stock-based compensation expense resulting from the acceleration of vesting of restricted stock units for certain executives. (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 (benefit) included in operating results is summarized below: Deferred compensation expense (benefit) Three Months Ended Six Months Ended Apr. 2, 2022 Jan. 1, 2022 Apr. 3, 2021 Apr. 2, 2022 Apr. 3, 2021 Cost of sales $ (28 ) $ (6 ) $ 11 $ (34 ) $ 22 Research & development (306 ) (71 ) 293 (377 ) 588 Selling, general & administrative (1,405 ) (415 ) 1,818 (1,820 ) 3,624 Impact on income (loss) from operations $ (1,739 ) $ (492 ) $ 2,122 $ (2,231 ) $ 4,234 For the fiscal quarters ended April 2, 2022, January 1, 2022 and April 3, 2021, the impact on other income (expense), net from gains or losses on deferred compensation plan assets was expense of $1,604, expense of $300 and income of $2,692, respectively. For the six months ended April 2, 2022 and April 3, 2021, the impact on other income (expense), net from gains or losses on deferred compensation plan assets was expense of $1,904 and income of $4,988, respectively. (C) Amortization of intangibles is included in cost of sales and operating expenses as summarized below: Amortization of intangibles Three Months Ended Six Months Ended Apr. 2, 2022 Jan. 1, 2022 Apr. 3, 2021 Apr. 2, 2022 Apr. 3, 2021 Cost of sales $ 267 $ 818 $ 1,855 $ 1,085 $ 3,872 Amortization of intangible assets 563 565 596 1,128 1,193 Impact on income (loss) from operations $ 830 $ 1,383 $ 2,451 $ 2,213 $ 5,065 For the fiscal quarters ended April 2, 2022, January 1, 2022 and April 3, 2021, the impact on net income (loss), net of tax was $699 ($0.03 per diluted share), $1,190 ($0.05 per diluted share) and $2,159 ($0.09 per diluted share), respectively. For the six months ended April 2, 2022 and April 3, 2021, the impact on net income (loss), net of tax was $1,889 ($0.08 per diluted share) and $4,429 ($0.18 per diluted share), respectively. (D) For the fiscal quarters ended April 2, 2022, January 1, 2022 and April 3, 2021, the impact of restructuring charges (gains) was a gain of $2,284 ($1,768 net of tax ($0.07 per diluted share)), gain of $10 ($7 net of tax ($0.00 per diluted share)) and charge of $3,659 ($3,059 net of tax ($0.12 per diluted share)), respectively. For the six months ended April 2, 2022 and April 3, 2021, the impact of restructuring charges (gains) was a gain of $2,294 ($1,775 net of tax ($0.07 per diluted share)) and charge of $9,042 ($7,532 net of tax ($0.31 per diluted share)), respectively. (E) For the fiscal quarters ended April 2, 2022, January 1, 2022 and April 3, 2021, we incurred merger and acquisition costs of $1,044 ($806 net of tax ($0.03 per diluted share)), $977 ($755 net of tax ($0.03 per diluted share)) and $231,996 ($179,217 net of tax ($7.34 per diluted share)), respectively. For the six months ended April 2, 2022 and April 3, 2021, we incurred merger and acquisition costs of $2,021 ($1,561 net of tax ($0.06 per diluted share)) and $231,996 ($179,217 net of tax ($7.34 per diluted share)), respectively. The merger and acquisition costs for the three and six months ended April 3, 2021 were primarily due to a termination fee paid to Lumentum Holdings Inc. of $217,600. (F) The fiscal quarters ended April 2, 2022, January 1, 2022 and April 3, 2021 included non-recurring income tax charges of $1,613 ($0.06 per diluted share), $514 ($0.02 per diluted share) and $1,854 ($0.07 per diluted share), respectively. The fiscal quarters ended April 2, 2022, January 1, 2022 and April 3, 2021 included $184 ($0.01 per diluted share), $4,630 ($0.19 per diluted share) and $598 ($0.02 per diluted share), of excess tax benefits for employee stock-based compensation, respectively. The six months ended April 2, 2022 and April 3, 2021 included non-recurring income tax charges of $2,127 ($0.09 per diluted share) and $10,468 ($0.43 per diluted share), respectively. The six months ended April 2, 2022 and April 3, 2021 included a benefit of $4,814 ($0.19 per diluted share) and a charge of $13 ($0.00 per diluted share) of excess tax charges (benefits) for employee stock-based compensation, respectively. Summarized balance sheet information is as follows (unaudited, in thousands): Apr. 2, 2022 Oct. 2, 2021 ASSETS Current assets: Cash, cash equivalents, restricted cash and short-term investments $ 403,477 $ 458,061 Accounts receivable, net 262,956 249,389 Inventories 417,275 392,241 Prepaid expenses and other assets 91,884 79,594 Total current assets 1,175,592 1,179,285 Property and equipment, net 305,916 302,613 Other assets 388,887 407,032 Total assets $ 1,870,395 $ 1,888,930 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Short-term borrowings $ 9,571 $ 18,395 Accounts payable 106,071 104,539 Other current liabilities 238,321 259,281 Total current liabilities 353,963 382,215 Long-term liabilities 582,238 638,530 Total stockholders’ equity 934,194 868,185 Total liabilities and stockholders’ equity $ 1,870,395 $ 1,888,930 Reconciliation of GAAP to Non-GAAP net income, net of tax (unaudited, in thousands, other than per share data): Three Months Ended Six Months Ended Apr. 2, 2022 Jan. 1, 2022 Apr. 3, 2021 Apr. 2, 2022 Apr. 3, 2021 GAAP net income (loss) $ 33,676 $ 30,265 $ (158,215 ) $ 63,941 $ (158,071 ) Stock-based compensation expense 7,655 29,613 7,746 37,268 18,359 Amortization of intangible assets 699 1,190 2,159 1,889 4,429 Restructuring charges (gains) and other (1,768 ) (7 ) 3,059 (1,775 ) 7,532 Non-recurring tax expense 1,613 514 1,854 2,127 10,468 Tax charge (benefit) from stock-based compensation expense (184 ) (4,630 ) (598 ) (4,814 ) 13 Merger and acquisition costs 806 755 179,217 1,561 179,217 Non-GAAP net income $ 42,497 $ 57,700 $ 35,222 $ 100,197 $ 61,947 Non-GAAP net income per diluted share $ 1.70 $ 2.32 $ 1.42 $ 4.02 $ 2.52 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20220511005966/en/Contacts Kevin Palatnik EVP & Chief Financial Officer +1 (408) 764-4110 Kevin.Palatnik@coherent.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Coherent, Inc. Reports Second Fiscal Quarter Results By: Coherent, Inc. via Business Wire May 11, 2022 at 16:09 PM EDT 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 second fiscal quarter ended April 2, 2022. FINANCIAL HIGHLIGHTS Three Months Ended Six Months Ended Apr. 2, 2022 Jan. 1, 2022 Apr. 3, 2021 Apr. 2, 2022 Apr. 3, 2021 GAAP Results (in millions, except per share data) Net sales $ 370.2 $ 384.5 $ 374.0 $ 754.7 $ 700.0 Net income (loss) $ 33.7 $ 30.3 $ (158.2 ) $ 63.9 $ (158.1 ) Diluted EPS $ 1.35 $ 1.21 $ (6.49 ) $ 2.57 $ (6.50 ) Non-GAAP Results (in millions, except per share data) Net income $ 42.5 $ 57.7 $ 35.2 $ 100.2 $ 61.9 Diluted EPS $ 1.70 $ 2.32 $ 1.42 $ 4.02 $ 2.52 SECOND FISCAL QUARTER DETAILS For the second quarter of fiscal 2022, Coherent announced net sales of $370.2 million and net income, on a U.S. generally accepted accounting principles (GAAP) basis, of $33.7 million, or $1.35 per diluted share. These results compare to net sales of $374.0 million and net loss of $158.2 million, or $6.49 per diluted share, for the second quarter of fiscal 2021 and net sales of $384.5 million and net income of $30.3 million, or $1.21 per diluted share, for the first quarter of fiscal 2022. The net loss in the second quarter of fiscal 2021 includes $179.2 million, net of tax, in merger and acquisition costs, primarily due to a merger agreement termination fee paid to Lumentum Holdings Inc. Non-GAAP net income for the second quarter of fiscal 2022 was $42.5 million, or $1.70 per diluted share. Non-GAAP net income for the second quarter of fiscal 2021 was $35.2 million, or $1.42 per diluted share. Non-GAAP net income for the first quarter of fiscal 2022 was $57.7 million, or $2.32 per diluted share. Reconciliations of GAAP to non-GAAP financial measures for the three months ended April 2, 2022, January 1, 2022 and April 3, 2021 and six months ended April 2, 2022 and April 3, 2021 appear in the financial statements portion of this release under the heading “Reconciliation of GAAP to Non-GAAP net income.” Summarized statement of operations information is as follows (unaudited, in thousands, except per share data): Three Months Ended Six Months Ended Apr. 2, 2022 Jan. 1, 2022 Apr. 3, 2021 Apr. 2, 2022 Apr. 3, 2021 Net sales $ 370,204 $ 384,507 $ 373,982 $ 754,711 $ 700,035 Cost of sales(A)(B)(C)(D) 215,670 216,943 232,957 432,613 439,014 Gross profit 154,534 167,564 141,025 322,098 261,021 Operating expenses: Research & development(A)(B)(D) 31,679 29,769 32,007 61,448 60,228 Selling, general & administrative(A)(B)(D) 66,517 93,774 72,662 160,291 146,890 Merger and acquisition costs(E) 1,044 977 231,996 2,021 231,996 Amortization of intangible assets(C) 563 565 596 1,128 1,193 Total operating expenses 99,803 125,085 337,261 224,888 440,307 Income (loss) from operations 54,731 42,479 (196,236 ) 97,210 (179,286 ) Other expense, net(B) (5,729 ) (6,185 ) (2,526 ) (11,914 ) (4,815 ) Income (loss) before income taxes 49,002 36,294 (198,762 ) 85,296 (184,101 ) Provision (benefit) for income taxes (F) 15,326 6,029 (40,547 ) 21,355 (26,030 ) Net income (loss) $ 33,676 $ 30,265 $ (158,215 ) $ 63,941 $ (158,071 ) Net income (loss) per share: Basic $ 1.36 $ 1.23 $ (6.49 ) $ 2.60 $ (6.50 ) Diluted $ 1.35 $ 1.21 $ (6.49 ) $ 2.57 $ (6.50 ) Shares used in computations: Basic 24,708 24,542 24,389 24,625 24,326 Diluted 24,935 24,919 24,389 24,927 24,326 (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 Six Months Ended Apr. 2, 2022 Jan. 1, 2022 Apr. 3, 2021 Apr. 2, 2022 Apr. 3, 2021 Cost of sales $ 1,971 $ 1,731 $ 1,989 $ 3,702 $ 4,261 Research & development 1,158 1,236 1,030 2,394 2,229 Selling, general & administrative(1) 5,914 28,940 6,073 34,854 14,787 Impact on income (loss) from operations $ 9,043 $ 31,907 $ 9,092 $ 40,950 $ 21,277 For the fiscal quarters ended April 2, 2022, January 1, 2022 and April 3, 2021, the impact on net income (loss), net of tax was $7,655 ($0.31 per diluted share), $29,613 ($1.20 per diluted share) and $7,746 ($0.31 per diluted share), respectively. For the six months ended April 2, 2022 and April 3, 2021, the impact on net income (loss), net of tax was $37,268 ($1.48 per diluted share) and $18,359 ($0.75 per diluted share), respectively. (1) The fiscal quarter ended January 1, 2022 includes a $19.7 million stock-based compensation expense resulting from the acceleration of vesting of restricted stock units for certain executives. (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 (benefit) included in operating results is summarized below: Deferred compensation expense (benefit) Three Months Ended Six Months Ended Apr. 2, 2022 Jan. 1, 2022 Apr. 3, 2021 Apr. 2, 2022 Apr. 3, 2021 Cost of sales $ (28 ) $ (6 ) $ 11 $ (34 ) $ 22 Research & development (306 ) (71 ) 293 (377 ) 588 Selling, general & administrative (1,405 ) (415 ) 1,818 (1,820 ) 3,624 Impact on income (loss) from operations $ (1,739 ) $ (492 ) $ 2,122 $ (2,231 ) $ 4,234 For the fiscal quarters ended April 2, 2022, January 1, 2022 and April 3, 2021, the impact on other income (expense), net from gains or losses on deferred compensation plan assets was expense of $1,604, expense of $300 and income of $2,692, respectively. For the six months ended April 2, 2022 and April 3, 2021, the impact on other income (expense), net from gains or losses on deferred compensation plan assets was expense of $1,904 and income of $4,988, respectively. (C) Amortization of intangibles is included in cost of sales and operating expenses as summarized below: Amortization of intangibles Three Months Ended Six Months Ended Apr. 2, 2022 Jan. 1, 2022 Apr. 3, 2021 Apr. 2, 2022 Apr. 3, 2021 Cost of sales $ 267 $ 818 $ 1,855 $ 1,085 $ 3,872 Amortization of intangible assets 563 565 596 1,128 1,193 Impact on income (loss) from operations $ 830 $ 1,383 $ 2,451 $ 2,213 $ 5,065 For the fiscal quarters ended April 2, 2022, January 1, 2022 and April 3, 2021, the impact on net income (loss), net of tax was $699 ($0.03 per diluted share), $1,190 ($0.05 per diluted share) and $2,159 ($0.09 per diluted share), respectively. For the six months ended April 2, 2022 and April 3, 2021, the impact on net income (loss), net of tax was $1,889 ($0.08 per diluted share) and $4,429 ($0.18 per diluted share), respectively. (D) For the fiscal quarters ended April 2, 2022, January 1, 2022 and April 3, 2021, the impact of restructuring charges (gains) was a gain of $2,284 ($1,768 net of tax ($0.07 per diluted share)), gain of $10 ($7 net of tax ($0.00 per diluted share)) and charge of $3,659 ($3,059 net of tax ($0.12 per diluted share)), respectively. For the six months ended April 2, 2022 and April 3, 2021, the impact of restructuring charges (gains) was a gain of $2,294 ($1,775 net of tax ($0.07 per diluted share)) and charge of $9,042 ($7,532 net of tax ($0.31 per diluted share)), respectively. (E) For the fiscal quarters ended April 2, 2022, January 1, 2022 and April 3, 2021, we incurred merger and acquisition costs of $1,044 ($806 net of tax ($0.03 per diluted share)), $977 ($755 net of tax ($0.03 per diluted share)) and $231,996 ($179,217 net of tax ($7.34 per diluted share)), respectively. For the six months ended April 2, 2022 and April 3, 2021, we incurred merger and acquisition costs of $2,021 ($1,561 net of tax ($0.06 per diluted share)) and $231,996 ($179,217 net of tax ($7.34 per diluted share)), respectively. The merger and acquisition costs for the three and six months ended April 3, 2021 were primarily due to a termination fee paid to Lumentum Holdings Inc. of $217,600. (F) The fiscal quarters ended April 2, 2022, January 1, 2022 and April 3, 2021 included non-recurring income tax charges of $1,613 ($0.06 per diluted share), $514 ($0.02 per diluted share) and $1,854 ($0.07 per diluted share), respectively. The fiscal quarters ended April 2, 2022, January 1, 2022 and April 3, 2021 included $184 ($0.01 per diluted share), $4,630 ($0.19 per diluted share) and $598 ($0.02 per diluted share), of excess tax benefits for employee stock-based compensation, respectively. The six months ended April 2, 2022 and April 3, 2021 included non-recurring income tax charges of $2,127 ($0.09 per diluted share) and $10,468 ($0.43 per diluted share), respectively. The six months ended April 2, 2022 and April 3, 2021 included a benefit of $4,814 ($0.19 per diluted share) and a charge of $13 ($0.00 per diluted share) of excess tax charges (benefits) for employee stock-based compensation, respectively. Summarized balance sheet information is as follows (unaudited, in thousands): Apr. 2, 2022 Oct. 2, 2021 ASSETS Current assets: Cash, cash equivalents, restricted cash and short-term investments $ 403,477 $ 458,061 Accounts receivable, net 262,956 249,389 Inventories 417,275 392,241 Prepaid expenses and other assets 91,884 79,594 Total current assets 1,175,592 1,179,285 Property and equipment, net 305,916 302,613 Other assets 388,887 407,032 Total assets $ 1,870,395 $ 1,888,930 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Short-term borrowings $ 9,571 $ 18,395 Accounts payable 106,071 104,539 Other current liabilities 238,321 259,281 Total current liabilities 353,963 382,215 Long-term liabilities 582,238 638,530 Total stockholders’ equity 934,194 868,185 Total liabilities and stockholders’ equity $ 1,870,395 $ 1,888,930 Reconciliation of GAAP to Non-GAAP net income, net of tax (unaudited, in thousands, other than per share data): Three Months Ended Six Months Ended Apr. 2, 2022 Jan. 1, 2022 Apr. 3, 2021 Apr. 2, 2022 Apr. 3, 2021 GAAP net income (loss) $ 33,676 $ 30,265 $ (158,215 ) $ 63,941 $ (158,071 ) Stock-based compensation expense 7,655 29,613 7,746 37,268 18,359 Amortization of intangible assets 699 1,190 2,159 1,889 4,429 Restructuring charges (gains) and other (1,768 ) (7 ) 3,059 (1,775 ) 7,532 Non-recurring tax expense 1,613 514 1,854 2,127 10,468 Tax charge (benefit) from stock-based compensation expense (184 ) (4,630 ) (598 ) (4,814 ) 13 Merger and acquisition costs 806 755 179,217 1,561 179,217 Non-GAAP net income $ 42,497 $ 57,700 $ 35,222 $ 100,197 $ 61,947 Non-GAAP net income per diluted share $ 1.70 $ 2.32 $ 1.42 $ 4.02 $ 2.52 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20220511005966/en/Contacts Kevin Palatnik EVP & Chief Financial Officer +1 (408) 764-4110 Kevin.Palatnik@coherent.com
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 second fiscal quarter ended April 2, 2022. FINANCIAL HIGHLIGHTS Three Months Ended Six Months Ended Apr. 2, 2022 Jan. 1, 2022 Apr. 3, 2021 Apr. 2, 2022 Apr. 3, 2021 GAAP Results (in millions, except per share data) Net sales $ 370.2 $ 384.5 $ 374.0 $ 754.7 $ 700.0 Net income (loss) $ 33.7 $ 30.3 $ (158.2 ) $ 63.9 $ (158.1 ) Diluted EPS $ 1.35 $ 1.21 $ (6.49 ) $ 2.57 $ (6.50 ) Non-GAAP Results (in millions, except per share data) Net income $ 42.5 $ 57.7 $ 35.2 $ 100.2 $ 61.9 Diluted EPS $ 1.70 $ 2.32 $ 1.42 $ 4.02 $ 2.52 SECOND FISCAL QUARTER DETAILS For the second quarter of fiscal 2022, Coherent announced net sales of $370.2 million and net income, on a U.S. generally accepted accounting principles (GAAP) basis, of $33.7 million, or $1.35 per diluted share. These results compare to net sales of $374.0 million and net loss of $158.2 million, or $6.49 per diluted share, for the second quarter of fiscal 2021 and net sales of $384.5 million and net income of $30.3 million, or $1.21 per diluted share, for the first quarter of fiscal 2022. The net loss in the second quarter of fiscal 2021 includes $179.2 million, net of tax, in merger and acquisition costs, primarily due to a merger agreement termination fee paid to Lumentum Holdings Inc. Non-GAAP net income for the second quarter of fiscal 2022 was $42.5 million, or $1.70 per diluted share. Non-GAAP net income for the second quarter of fiscal 2021 was $35.2 million, or $1.42 per diluted share. Non-GAAP net income for the first quarter of fiscal 2022 was $57.7 million, or $2.32 per diluted share. Reconciliations of GAAP to non-GAAP financial measures for the three months ended April 2, 2022, January 1, 2022 and April 3, 2021 and six months ended April 2, 2022 and April 3, 2021 appear in the financial statements portion of this release under the heading “Reconciliation of GAAP to Non-GAAP net income.” Summarized statement of operations information is as follows (unaudited, in thousands, except per share data): Three Months Ended Six Months Ended Apr. 2, 2022 Jan. 1, 2022 Apr. 3, 2021 Apr. 2, 2022 Apr. 3, 2021 Net sales $ 370,204 $ 384,507 $ 373,982 $ 754,711 $ 700,035 Cost of sales(A)(B)(C)(D) 215,670 216,943 232,957 432,613 439,014 Gross profit 154,534 167,564 141,025 322,098 261,021 Operating expenses: Research & development(A)(B)(D) 31,679 29,769 32,007 61,448 60,228 Selling, general & administrative(A)(B)(D) 66,517 93,774 72,662 160,291 146,890 Merger and acquisition costs(E) 1,044 977 231,996 2,021 231,996 Amortization of intangible assets(C) 563 565 596 1,128 1,193 Total operating expenses 99,803 125,085 337,261 224,888 440,307 Income (loss) from operations 54,731 42,479 (196,236 ) 97,210 (179,286 ) Other expense, net(B) (5,729 ) (6,185 ) (2,526 ) (11,914 ) (4,815 ) Income (loss) before income taxes 49,002 36,294 (198,762 ) 85,296 (184,101 ) Provision (benefit) for income taxes (F) 15,326 6,029 (40,547 ) 21,355 (26,030 ) Net income (loss) $ 33,676 $ 30,265 $ (158,215 ) $ 63,941 $ (158,071 ) Net income (loss) per share: Basic $ 1.36 $ 1.23 $ (6.49 ) $ 2.60 $ (6.50 ) Diluted $ 1.35 $ 1.21 $ (6.49 ) $ 2.57 $ (6.50 ) Shares used in computations: Basic 24,708 24,542 24,389 24,625 24,326 Diluted 24,935 24,919 24,389 24,927 24,326 (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 Six Months Ended Apr. 2, 2022 Jan. 1, 2022 Apr. 3, 2021 Apr. 2, 2022 Apr. 3, 2021 Cost of sales $ 1,971 $ 1,731 $ 1,989 $ 3,702 $ 4,261 Research & development 1,158 1,236 1,030 2,394 2,229 Selling, general & administrative(1) 5,914 28,940 6,073 34,854 14,787 Impact on income (loss) from operations $ 9,043 $ 31,907 $ 9,092 $ 40,950 $ 21,277 For the fiscal quarters ended April 2, 2022, January 1, 2022 and April 3, 2021, the impact on net income (loss), net of tax was $7,655 ($0.31 per diluted share), $29,613 ($1.20 per diluted share) and $7,746 ($0.31 per diluted share), respectively. For the six months ended April 2, 2022 and April 3, 2021, the impact on net income (loss), net of tax was $37,268 ($1.48 per diluted share) and $18,359 ($0.75 per diluted share), respectively. (1) The fiscal quarter ended January 1, 2022 includes a $19.7 million stock-based compensation expense resulting from the acceleration of vesting of restricted stock units for certain executives. (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 (benefit) included in operating results is summarized below: Deferred compensation expense (benefit) Three Months Ended Six Months Ended Apr. 2, 2022 Jan. 1, 2022 Apr. 3, 2021 Apr. 2, 2022 Apr. 3, 2021 Cost of sales $ (28 ) $ (6 ) $ 11 $ (34 ) $ 22 Research & development (306 ) (71 ) 293 (377 ) 588 Selling, general & administrative (1,405 ) (415 ) 1,818 (1,820 ) 3,624 Impact on income (loss) from operations $ (1,739 ) $ (492 ) $ 2,122 $ (2,231 ) $ 4,234 For the fiscal quarters ended April 2, 2022, January 1, 2022 and April 3, 2021, the impact on other income (expense), net from gains or losses on deferred compensation plan assets was expense of $1,604, expense of $300 and income of $2,692, respectively. For the six months ended April 2, 2022 and April 3, 2021, the impact on other income (expense), net from gains or losses on deferred compensation plan assets was expense of $1,904 and income of $4,988, respectively. (C) Amortization of intangibles is included in cost of sales and operating expenses as summarized below: Amortization of intangibles Three Months Ended Six Months Ended Apr. 2, 2022 Jan. 1, 2022 Apr. 3, 2021 Apr. 2, 2022 Apr. 3, 2021 Cost of sales $ 267 $ 818 $ 1,855 $ 1,085 $ 3,872 Amortization of intangible assets 563 565 596 1,128 1,193 Impact on income (loss) from operations $ 830 $ 1,383 $ 2,451 $ 2,213 $ 5,065 For the fiscal quarters ended April 2, 2022, January 1, 2022 and April 3, 2021, the impact on net income (loss), net of tax was $699 ($0.03 per diluted share), $1,190 ($0.05 per diluted share) and $2,159 ($0.09 per diluted share), respectively. For the six months ended April 2, 2022 and April 3, 2021, the impact on net income (loss), net of tax was $1,889 ($0.08 per diluted share) and $4,429 ($0.18 per diluted share), respectively. (D) For the fiscal quarters ended April 2, 2022, January 1, 2022 and April 3, 2021, the impact of restructuring charges (gains) was a gain of $2,284 ($1,768 net of tax ($0.07 per diluted share)), gain of $10 ($7 net of tax ($0.00 per diluted share)) and charge of $3,659 ($3,059 net of tax ($0.12 per diluted share)), respectively. For the six months ended April 2, 2022 and April 3, 2021, the impact of restructuring charges (gains) was a gain of $2,294 ($1,775 net of tax ($0.07 per diluted share)) and charge of $9,042 ($7,532 net of tax ($0.31 per diluted share)), respectively. (E) For the fiscal quarters ended April 2, 2022, January 1, 2022 and April 3, 2021, we incurred merger and acquisition costs of $1,044 ($806 net of tax ($0.03 per diluted share)), $977 ($755 net of tax ($0.03 per diluted share)) and $231,996 ($179,217 net of tax ($7.34 per diluted share)), respectively. For the six months ended April 2, 2022 and April 3, 2021, we incurred merger and acquisition costs of $2,021 ($1,561 net of tax ($0.06 per diluted share)) and $231,996 ($179,217 net of tax ($7.34 per diluted share)), respectively. The merger and acquisition costs for the three and six months ended April 3, 2021 were primarily due to a termination fee paid to Lumentum Holdings Inc. of $217,600. (F) The fiscal quarters ended April 2, 2022, January 1, 2022 and April 3, 2021 included non-recurring income tax charges of $1,613 ($0.06 per diluted share), $514 ($0.02 per diluted share) and $1,854 ($0.07 per diluted share), respectively. The fiscal quarters ended April 2, 2022, January 1, 2022 and April 3, 2021 included $184 ($0.01 per diluted share), $4,630 ($0.19 per diluted share) and $598 ($0.02 per diluted share), of excess tax benefits for employee stock-based compensation, respectively. The six months ended April 2, 2022 and April 3, 2021 included non-recurring income tax charges of $2,127 ($0.09 per diluted share) and $10,468 ($0.43 per diluted share), respectively. The six months ended April 2, 2022 and April 3, 2021 included a benefit of $4,814 ($0.19 per diluted share) and a charge of $13 ($0.00 per diluted share) of excess tax charges (benefits) for employee stock-based compensation, respectively. Summarized balance sheet information is as follows (unaudited, in thousands): Apr. 2, 2022 Oct. 2, 2021 ASSETS Current assets: Cash, cash equivalents, restricted cash and short-term investments $ 403,477 $ 458,061 Accounts receivable, net 262,956 249,389 Inventories 417,275 392,241 Prepaid expenses and other assets 91,884 79,594 Total current assets 1,175,592 1,179,285 Property and equipment, net 305,916 302,613 Other assets 388,887 407,032 Total assets $ 1,870,395 $ 1,888,930 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Short-term borrowings $ 9,571 $ 18,395 Accounts payable 106,071 104,539 Other current liabilities 238,321 259,281 Total current liabilities 353,963 382,215 Long-term liabilities 582,238 638,530 Total stockholders’ equity 934,194 868,185 Total liabilities and stockholders’ equity $ 1,870,395 $ 1,888,930 Reconciliation of GAAP to Non-GAAP net income, net of tax (unaudited, in thousands, other than per share data): Three Months Ended Six Months Ended Apr. 2, 2022 Jan. 1, 2022 Apr. 3, 2021 Apr. 2, 2022 Apr. 3, 2021 GAAP net income (loss) $ 33,676 $ 30,265 $ (158,215 ) $ 63,941 $ (158,071 ) Stock-based compensation expense 7,655 29,613 7,746 37,268 18,359 Amortization of intangible assets 699 1,190 2,159 1,889 4,429 Restructuring charges (gains) and other (1,768 ) (7 ) 3,059 (1,775 ) 7,532 Non-recurring tax expense 1,613 514 1,854 2,127 10,468 Tax charge (benefit) from stock-based compensation expense (184 ) (4,630 ) (598 ) (4,814 ) 13 Merger and acquisition costs 806 755 179,217 1,561 179,217 Non-GAAP net income $ 42,497 $ 57,700 $ 35,222 $ 100,197 $ 61,947 Non-GAAP net income per diluted share $ 1.70 $ 2.32 $ 1.42 $ 4.02 $ 2.52 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20220511005966/en/