April 18, 2008, Santa Clara, CA--Coherent entered into a definitive agreement to sell certain assets of Coherent's Auburn Optics manufacturing operation to Research Electro-Optics (Boulder, CO), a privately held optics manufacturing and technology company. Consistent with the asset transaction, Coherent and REO have entered into a strategic supply agreement whereby REO will provide optical manufacturing capabilities for Coherent, including fabrication and coating of optical components.
The transition of the optics manufacturing assets from Auburn to Boulder will begin immediately and is expected to be completed no later than the end of the second quarter of fiscal 2009. Coherent will further discuss the transaction during its previously announced second fiscal quarter financial results conference call on April 24, 2008 at 1:30 p.m. PST.
According to an article in The Union newspaper (Grass Valley, CA), the outsourcing move will affect the jobs of about 100 people, including residents who live in southern Nevada County. "It's part of the company's strategy to effectively manage production in cost-effective ways," said Leen Simonet, executive VP and CFO of Coherent. Simonet denied any hardship to local workers, as they would be offered jobs at Research Electro-Optics or provided with help to find work locally. Simonet would not comment on the future of Coherent's manufacturing presence in Auburn. It was unclear whether any manufacturing jobs remain.
For more information, visit www.coherent.com.
