Santa Clara, CA, July 24 – Coherent Inc.has announced financial results for its third fiscal quarter ended June 30, 2001. On April 30, 2001, the company completed the sale of its medical business segment to Lumenis Ltd., formerly ESC Medical Systems Ltd., resulting in income from discontinued operations of $67.5 million ($2.34 per diluted share), net of tax, for the fiscal quarter ending June 30, 2001.
Sales of $121.4 million and pro forma income from continuing operations of $8.2 million ($0.28 per diluted share), excluding a one-time $1.6 million ($0.05 per diluted share) after-tax write-off of purchased in-process technology (IPR&D), represent increases of 22% and 17%, respectively, over the same quarter last year. Bookings of $103.7 million during the third quarter were down 19% from the corresponding prior year period and 18% from the immediately preceding quarter. The decline in bookings was attributed to the significant downturn experienced by many of the company's customers in the markets they serve including the semiconductor equipment and telecom markets. Backlog of $179.6 million at June 30, 2001 compares to a backlog of $197.3 million as of March 31, 2001.
Sales and pro forma income from continuing operations for the nine months ended June 30, 2001, exclusive of the aforementioned IPR&D charge, were $363.0 million and $29.3 million ($1.02 per diluted share), respectively. Sales increased by $87.2 million (32%) and pro forma income increased $11.1 million (61%) over the prior year nine-month period.
Electro-Optics segment sales of $94.2 million for the three months ended June 30, 2001 were 23% higher than during the same quarter last year. Bookings for this segment of $81.4 million reflected a 12% decline over the like prior year period, but an 8% sequential increase from the second quarter ended March 31, 2001.
The Lambda Physik segment achieved sales of $27.2 million for the three months ended June 30, 2001, an increase of 18% over the third quarter of fiscal 2000. While quarterly bookings of $22.3 million were significantly lower than the record orders received during the immediately preceding quarter, total year-to-date bookings of $114.7 million reflect an increase of 23% on a nine-month comparative basis.
During the recently completed quarter, the Company achieved a significant milestone by shipping the first in a series of products incorporating its new optically pumped semiconductor laser (OPSL) technology. This proprietary technology belongs to a class of devices called Vertical Cavity Surface Emitting Lasers (VCSELs). In conventional VCSELs, laser emission is driven by electrical current. OPSL technology uses optical (photon) energy to drive laser emission. The benefit is that optical pumping allows higher power than that achieved with electrical pumping. The initial products shipments included both a 980nm OPSL for the telecom marketplace and a 488nm blue laser for the bio-instrumentation and wafer inspection markets.
“Results for the quarter were commendable,” says Bernard Couillaud, Coherent's President and CEO, “especially considering the severe slowdown in business experienced in some of the larger markets we serve. One of the most difficult challenges faced by technology companies is to manage business in the short-term to sustain acceptable levels of profitability while at the same time prepare for the return of better market conditions. Coherent entered this downturn as a market leader in many of the markets it serves and fully intends on building on this position in the future. Continued investments, even in those markets seemingly hardest hit during this economic downturn, are required to insure, when the marketplace does improve that we are ready and able to provide our customers the competitive advantage they seek.”