February 29, 2008, Santa Clara, CA--Coherent, Inc. today announced financial results for its first fiscal quarter ended December 29, 2007, posting sales of $144.3 million and net income, on a U.S. generally accepted accounting principles (GAAP) basis, of $4.7 million or $0.15 per diluted share compared to net sales of $147.5 million and net income of $10.8 million or $0.33 per diluted share for the first quarter of fiscal 2007. The company also received confirmation that its shares of common stock was relisted on the NASDAQ Global Select Market with the opening of trading on Thursday, February 14, 2008, under the symbol, "COHR."

Net income for the first quarter of fiscal 2008 included an after-tax charge of $2.8 million related to their restatement of financial statements and litigation resulting from an internal stock-option investigation ($0.09 per diluted share) and after-tax stock-based compensation expense of $1.9 million ($0.06 per diluted share). Excluding these charges, non-GAAP net income was $9.5 million or $0.30 per diluted share. GAAP net income for the first quarter of fiscal 2007 included an after tax charge of $1.0 million ($0.03 per diluted share) of stock option investigation costs, $2.2 million stock-based compensation expense, net of tax ($0.07 per diluted share) and a one-time tax benefit of $2.1 million ($0.07 per diluted share). Excluding these charges and the one-time benefit, non-GAAP net income for the first quarter of fiscal 2007 was $11.8 million or $0.37 per diluted share.

Orders received during the three months ended December 29, 2007, of $154.9 million increased 13.7% from the same prior year period and decreased by 5.4% compared to orders received in the immediately preceding quarter. The book-to-bill ratio was 1.07, resulting in backlog of $198.4 million at December 29, 2007 compared to a backlog of $188.4 million at September 29, 2007.

"The combined effect of seasonality and certain customers' inventory positions led to seasonally typical first-quarter revenues. Any concerns around short-term revenue performance are more than offset by a strong inflow of orders," said John Ambroseo, Coherent's president and chief executive officer. "We posted double-digit growth in bookings in the microelectronics, materials processing, and OEM components and instrumentation markets as compared to the first quarter of fiscal 2007. We are also encouraged by the early feedback on our recently launched E-Series carbon-dioxide laser system, which utilizes new design elements that facilitate ease of integration and scalability while significantly lowering the cost of ownership," he added.

At December 29, 2007, Coherent's cash, cash equivalents and short-term investments totaled $388.4 million, representing an increase of $26.5 million compared to September 29, 2007. The increase includes the receipt of the proceeds of approximately $16 million from the sale of their Auburn campus and the sale of the assets of Coherent's Imaging Optics Limited subsidiary in the prior quarter.

"With our imminent re-listing on the NASDAQ Global Select Market, and a track record of strong cash flows, we are in a position to launch a substantial stock repurchase program," commented John Ambroseo. "The buyback, coupled with our previously announced three-year EBITDA goals, provides a compelling opportunity for our shareholders," he added. For more information regarding Coherent's share repurchase program, please refer to the company's Form 8-K filed with the Securities Exchange Commission on February 12, 2008.

Fri Feb 29 09:28:00 CST 2008