Coherent F1Q08 (Qtr End 12/29/07) Earnings Call Transcript
"...We reported first quarter revenues of $144.3 million and net income of $4.7 million or $0.15 per diluted share. Excluding the charges related to the restatement of our financial statements and litigation resulting from the stock-option investigation and excluding the quarterly stock compensation charges, the pro forma net income for the first quarter of fiscal 2008 was $9.5 million or $0.30 per diluted shares, compared to a pro forma net income of $0.37 per diluted share for the first quarter of fiscal 2007.
The primary reasons for the decline in pro forma earnings related to the increase of period expenses resulting from a weakened dollar. During this period, the euro strengthened approximately 13%.
Bookings for the quarter were strong at $154.9 million, an increase by 13.7% over the corresponding prior year period. Our book-to-bill was 1.07 and the backlog at the end of Q1 '08 was $198.4 million. Net sales for the first quarter were $144.3 million and are within guidance, but as low-end primarily as the result of delivery push ups from a few customers not due to lot business.
Market perspective, when comparing to the similar quarter last year, we saw strong performance in material processing, bioinstrumentation and medical applications, resulting in a 26.5% growth for material processing and 14.5% for OEM components and instrumentations, when adjusted for the sales of optical imaging business. Microelectronics sales declined 12.7% as a result of the slow demand that we saw in the flat panel display market during the second half of fiscal 2007, coupled with normal timing of demand in other micro materials processing markets. The scientific market decline of 8.5% is primarily the results of our previously announced exit from the custom laser business.
Please note that effective Q1 '08, we are consolidating the graphic arts and display business into the OEM components and instrumentations markets. Prior period's market information has been combined to confirm to the current presentation. The Company sales by market applications for the first quarter of fiscal 2008 are as follows; Scientific 30.1; microelectronics, 48.7; material processing, 24.5; and OEM components and instrumentations, 41 for a total of 144.3 million.
First quarter gross profit was $60.5 million or 41.9% of sales. On a pro forma basis, excluding stock compensation costs, gross profit of 42.2% is similar to the first quarter of 2007. The projected accretion of having no imaging uptick revenue and lower scientific custom business was offset by the negative impact of the weak dollar and it continued unfavorable microelectronics market and product mix.
When comparing to the previous quarter pro forma gross profit increased slightly from 41.9% to 42.2%, and this sequential increase was primarily related to improve yields across several of our business units.
Total operating expenses for the quarter, excluding intangible amortization of $2.2 million, excluding the restatement of financial statements of litigation costs related to our stock-option investigation up $4.7 million, and excluding stock compensation charges of $2.3 million was $50.1 million or 34.7% of sales..."
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