<PAGE>
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
____________
FORM 10-Q
(Mark One)
[X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended December 28, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _________ to ___________
Commission File Number: 0-5255
COHERENT, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 94-1622541
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
5100 PATRICK HENRY DRIVE, SANTA CLARA, CALIFORNIA 95054
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (408) 764-4000
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes X No
--- ---
APPLICABLE ONLY TO ISSUERS INVOLVED
IN BANKRUPTCY PROCEEDINGS DURING
THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13, or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a
plan confirmed by a court. Yes No
--- ---
APPLICABLE ONLY TO CORPORATE ISSUES:
The number of shares outstanding of registrant's common stock, par value $.01
per share, at February 6, 1997 was 11,296,692 shares.
<PAGE>
COHERENT, INC.
INDEX
PAGE NO.
--------
PART I. FINANCIAL INFORMATION:
Consolidated Condensed Statements of Operations --
Three months ended December 28, 1996 and December 30, 1995 3
Consolidated Condensed Balance Sheets --
December 28, 1996 and September 28, 1996 4
Consolidated Condensed Statements of Cash Flows --
Three months ended December 28, 1996 and December 30, 1995 5
Notes to Consolidated Condensed Financial Statements 6
Management's Discussion and Analysis of Financial
Condition and Results of Operations 9
PART II. OTHER INFORMATION 12
SIGNATURES 13
2
<PAGE>
PART I. FINANCIAL INFORMATION
COHERENT, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED; IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
------------------------------
DECEMBER 28, DECEMBER 30,
1996 1995
- - ------------------------------------------------------------------------------------
<S> <C> <C>
NET SALES $ 93,893 $ 83,681
COST OF SALES 44,843 41,325
- - ------------------------------------------------------------------------------------
GROSS PROFIT 49,050 42,356
- - ------------------------------------------------------------------------------------
OPERATING EXPENSES:
Research and development 8,725 8,462
Purchased research and development 9,315
Selling, general and administrative 27,183 24,446
- - ------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES 45,223 32,908
- - ------------------------------------------------------------------------------------
INCOME FROM OPERATIONS 3,827 9,448
OTHER INCOME (EXPENSE):
Interest and dividend income 355 676
Interest expense (258) (144)
Foreign exchange gain (loss) (132) 15
Other - net 334 603
- - ------------------------------------------------------------------------------------
TOTAL OTHER INCOME, NET 299 1,150
- - ------------------------------------------------------------------------------------
INCOME BEFORE INCOME TAXES 4,126 10,598
PROVISION FOR INCOME TAXES 4,658 4,133
- - ------------------------------------------------------------------------------------
NET INCOME (LOSS) $ (532) $ 6,465
- - ------------------------------------------------------------------------------------
- - ------------------------------------------------------------------------------------
NET INCOME (LOSS) PER COMMON
AND COMMON EQUIVALENT SHARE $(0.05) $ 0.57
- - ------------------------------------------------------------------------------------
- - ------------------------------------------------------------------------------------
AVERAGE COMMON AND COMMON
EQUIVALENT SHARES OUTSTANDING 11,601 11,405
- - ------------------------------------------------------------------------------------
- - ------------------------------------------------------------------------------------
</TABLE>
SEE ACCOMPANYING NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS.
3
<PAGE>
COHERENT, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(UNAUDITED; IN THOUSANDS, EXCEPT PAR VALUE PER SHARE)
<TABLE>
<CAPTION>
DECEMBER 28, September 28,
1996 1996
- - ----------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and equivalents $ 14,323 $ 9,214
Short-term investments 13,011 25,421
Accounts receivable - net of allowances of
$2,672 in 1997 and $3,285 in 1996 79,697 83,360
Inventories 68,347 65,835
Prepaid expenses and other assets 8,329 11,519
Deferred tax assets 22,880 23,071
- - ----------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 206,587 218,420
- - ----------------------------------------------------------------------------------
PROPERTY AND EQUIPMENT 125,545 117,069
ACCUMULATED DEPRECIATION AND AMORTIZATION (52,421) (52,468)
- - ----------------------------------------------------------------------------------
Property and equipment - net 73,124 64,601
- - ----------------------------------------------------------------------------------
GOODWILL - net of accumulated amortization of
$6,093 in 1997 and $5,717 in 1996 10,803 10,639
OTHER ASSETS 19,841 17,856
- - ----------------------------------------------------------------------------------
$310,355 $311,516
- - ----------------------------------------------------------------------------------
- - ----------------------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term borrowings $ 6,997 $ 4,160
Current portion of long-term obligations 4,397 4,221
Accounts payable 12,677 12,425
Income taxes payable 10,305 12,395
Other current liabilities 51,116 61,666
- - ----------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES 85,492 94,867
- - ----------------------------------------------------------------------------------
LONG-TERM OBLIGATIONS 10,708 3,921
OTHER LONG-TERM LIABILITIES 12,034 12,403
MINORITY INTEREST IN SUBSIDIARIES 3,149 2,738
STOCKHOLDERS' EQUITY:
Common stock, par value $.01
Authorized - 50,000 shares
Outstanding - 11,281 in 1997 and 11,211
in 1996 112 111
Additional paid-in capital 84,744 82,939
Notes receivable from stock sales (845) (845)
Retained earnings 113,262 113,794
Accumulated translation adjustment 1,699 1,588
- - ----------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY 198,972 197,587
- - ----------------------------------------------------------------------------------
$310,355 $311,516
- - ----------------------------------------------------------------------------------
- - ----------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS.
4
<PAGE>
COHERENT, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED; IN THOUSANDS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
------------------------------
DECEMBER 28, December 30,
1996 1995
- - -----------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN CASH AND EQUIVALENTS
OPERATING ACTIVITIES:
Net income (loss) $ (532) $ 6,465
Adjustments to reconcile to net cash provided by
(used for) operating activities:
Write-off of purchased R & D 9,315
Purchases of short-term investments (13,034) (35,978)
Proceeds from sales of short-term investments 26,000 22,300
Changes in assets and liabilities (11,090) 4,325
Other adjustments 4,917 1,504
- - -----------------------------------------------------------------------------------
Net Cash Provided By (Used For) Operating
Activities 15,576 (1,384)
- - -----------------------------------------------------------------------------------
INVESTING ACTIVITIES:
Purchases of property and equipment - net (8,955) (3,315)
Acquisition of Tutcore and Micracor,
net of cash acquired (5,200)
Other - net (193) (2,644)
- - -----------------------------------------------------------------------------------
NET CASH USED FOR INVESTING ACTIVITIES (14,348) (5,959)
- - -----------------------------------------------------------------------------------
FINANCING ACTIVITIES:
Long-term debt repayments - net (863) (1,149)
Notes payable borrowings 5,619 1,990
Notes payable repayments (2,672) (4,081)
Repayments of capital lease obligations (31)
Sales of shares under employee benefit plans 1,632 1,132
- - -----------------------------------------------------------------------------------
NET CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES 3,716 (2,139)
- - -----------------------------------------------------------------------------------
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND
EQUIVALENTS 165 173
- - -----------------------------------------------------------------------------------
Net increase (decrease) in cash and equivalents 5,109 (9,309)
Cash and equivalents beginning of period 9,214 20,426
- - -----------------------------------------------------------------------------------
CASH AND EQUIVALENTS END OF PERIOD $ 14,323 $ 11,117
- - -----------------------------------------------------------------------------------
- - -----------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS.
5
<PAGE>
COHERENT, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(UNAUDITED)
1. The accompanying consolidated condensed financial statements have been
prepared in conformity with generally accepted accounting principles,
consistent with those reflected in the Company's annual report to
stockholders for the fiscal year ended September 28, 1996. All
adjustments necessary for a fair presentation have been made which
comprise only normal, recurring adjustments; however, interim results
of operations are not necessarily indicative of results to be expected
for the year.
2. Net income per share is based upon the weighted average number of common
shares outstanding during the period including dilutive common share
equivalents and shares issuable under the Productivity Incentive Plan.
Dilutive common stock equivalents include outstanding stock options
when the exercise price is less than the average market price and shares
subscribed under the Employee Stock Purchase Plan. Net loss per share
is based upon the weighted average number of common shares outstanding
during the period.
No dividends were paid in fiscal 1997 or 1996.
3. In December 1996, Coherent acquired 80% of the outstanding shares of
Tutcore OY Ltd., located in Tampere, Finland for approximately $10.0
million (consisting of $4.0 million of cash, $5.4 million of deferred
payment obligations and $0.6 million of acquisition costs). Tutcore
specializes in growth and processing of aluminum-free expitaxial wafers
used in semiconductor lasers.Also in December 1996, Coherent purchased
the net assets of Micracor, Inc. of Acton, Massachusetts for
approximately $1.3 million (consisting of $1.2 million of cash and $0.1
million of acquisition costs). Micracor is a manufacturer of
semiconductor-based solid state microchip lasers for the
telecommunications market.
The acquisitions were accounted for as purchases and, accordingly, the
acquired assets and liabilities were recorded at their estimated fair
market values at the dates of the acquisitions. The aggregate purchase
price of $11.3 million (including acquisition costs) has been allocated
to the assets and liabilities acquired. Approximately $9.3 million of
the total purchase price represented the value of in-process technology
that had not yet reached technological feasibility and had no
alternative future use and was charged to operations during the first
quarter of fiscal 1997. Coherent's consolidated results of operations
include the operating results of the acquired companies from their
acquisition dates. Proforma results of operations of Coherent and the
aforementioned acquired companies are not present as the amounts would
not significantly differ from the Company's historical results.
4. Balance Sheet Detail:
Inventories are stated at the lower of cost (first-in, first-out) or
market. Inventories are as follows:
December 28, September 28,
1996 1996
- - -------------------------------------------------------------------------------
(IN THOUSANDS)
Purchased parts and assemblies $ 20,394 $ 18,446
Work-in-process 26,469 24,244
Finished goods 21,484 23,145
- - -------------------------------------------------------------------------------
Inventories $ 68,347 $ 65,835
- - -------------------------------------------------------------------------------
- - -------------------------------------------------------------------------------
Prepaid expenses and other assets consist of the following:
6
<PAGE>
December 28, September 28,
1996 1996
- - -------------------------------------------------------------------------------
(IN THOUSANDS)
Prepaid expenses and other $ 7,939 $ 5,339
Prepaid income taxes 390 6,180
- - -------------------------------------------------------------------------------
Prepaid expenses and other assets $ 8,329 $ 11,519
- - -------------------------------------------------------------------------------
- - -------------------------------------------------------------------------------
Other assets consist of the following:
December 28, September 28,
1996 1996
- - -------------------------------------------------------------------------------
(IN THOUSANDS)
Assets held for investment $ 1,453 $ 1,491
Intangibles and other assets 18,388 16,365
- - -------------------------------------------------------------------------------
Other assets $ 19,841 $ 17,856
- - -------------------------------------------------------------------------------
- - -------------------------------------------------------------------------------
Other current liabilities consist of the following:
December 28, September 28,
1996 1996
- - -------------------------------------------------------------------------------
(IN THOUSANDS)
Accrued payroll and benefits $ 16,423 $ 20,264
Accrued expenses and other 13,628 13,278
Deferred service income 9,681 9,028
Reserve for warranty 9,345 9,450
Customer deposits 1,821 1,689
Cash overdrafts 218 7,957
- - -------------------------------------------------------------------------------
Other current liabilities $ 51,116 $ 61,666
- - -------------------------------------------------------------------------------
- - -------------------------------------------------------------------------------
Other long-term liabilities consist of the following:
December 28, September 28,
1996 1996
- - -------------------------------------------------------------------------------
(IN THOUSANDS)
Deferred income and other $ 5,314 $ 4,688
Deferred tax liabilities 4,960 5,955
Environmental remediation costs 1,760 1,760
- - -------------------------------------------------------------------------------
Other long-term liabilities $ 12,034 $ 12,403
- - -------------------------------------------------------------------------------
- - -------------------------------------------------------------------------------
5. Certain claims and lawsuits arising in the ordinary course of business
have been filed or are pending against the Company. In the opinion of
management, all such matters have been adequately provided for, are
without merit, or are of such kind that if disposed of unfavorably,
would not have a material adverse effect on the Company's consolidated
financial position or results of operations.
7
<PAGE>
The Company, along with several other companies, has been named as a
party to a remedial action order issued by the California Department of
Toxic Substance Control relating to soil and groundwater contamination
at and in the vicinity of the Stanford Industrial Park in Palo Alto,
California, where the Porter Drive facility is located. The responding
parties to the Regional Order (including the Company) have completed
the investigations and have installed all required remedial systems.
The responding parties have agreed upon final cost sharing.
The Company was also named, along with other parties, to a remedial
action order for the Porter Drive facility site itself in Stanford
Industrial Park. The Company has completed the investigations and has
installed all required remedial systems. The Company has been
operating remedial systems at the site to remove subsurface chemicals
since April 1992.
The Company has reached final settlement agreements with upgradient and
downgradient sites. A final settlement agreement with the former site
has been negotiated and it is expected to be signed in fiscal 1997.
Management believes that the Company's probable, nondiscounted net
liability at December 28, 1996 for remaining costs associated with the
above environmental matters is $0.8 million which has been previously
accrued. This amount consists of total estimated probable costs of
$2.1 million ($0.3 million included in accrued expenses and $1.8
million included in other long-term liabilities) reduced by minimum
probable recoveries of $1.3 million included in Other Assets from
other parties named to the order.
6. Certain prior year amounts have been reclassified to conform with
the current quarter presentation.
8
<PAGE>
COHERENT, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
GENERAL
The statements in this report that relate to future plans, events or
performance are forward- looking statements that involve risks and
uncertainties. Actual results, events and performance may materially differ.
Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof. For a discussion of
these risk and uncertainties, refer to the Company's annual report on Form
10-K for the fiscal year ended September 28, 1996 under the heading "Risk
Factors" in Part I, Item 1. Business. The Company undertakes no obligation
to release publicly the result of any revisions to these forward-looking
statements that may be made to reflect events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events.
Coherent, Inc., a Delaware corporation, (herein referred to as
"Coherent" or "Company") is a leading designer, manufacturer and supplier of
electro-optical systems and medical instruments utilizing laser, precision
optic and microelectronic technologies. The Company integrates these
technologies into a wide variety of products and systems designed to meet the
productivity and performance needs of its customers. Major markets include
the scientific research community, medical institutions, clinics and private
practices, and commercial and OEM (original equipment manufacturer)
applications ranging from semiconductor processing and disk mastering to
light shows and entertainment. Coherent also produces and sells optical and
laser components to other laser system manufacturers.
The word "laser" is the acronym for "light amplification by stimulated
emission of radiation." The emitted radiation oscillates within an optical
resonator and is amplified by an active media, resulting in a monochromatic
beam of light which is narrow, highly coherent and thus can be focused to a
small spot with a high degree of precision.
Since inception in 1966, the Company has grown through a combination of
internal expansion, joint ventures and strategic acquisitions of companies
with related technologies and products. Coherent is a technical leader in
every market it serves. Driven by new product application innovations,
Coherent has approximately 150 U.S. patents in force, and over the past
several years has committed from 10% to 11% of annual revenues to research
and development efforts.
During its most recently completed fiscal year, more than half of the
growth in annual sales came from products that were introduced within the
last three years. Committed to quality and customer satisfaction, Coherent
designs and produces many of its own components to retain quality control.
Coherent provides customers with around-the-clock technical expertise and
quality that is ISO 9000 certified at its principal manufacturing sites.
Coherent is focused on laser product innovations. Leveraging its
competitive strengths in laser technology development, new product
applications, engineering R&D and manufacturing expertise, Coherent is
dedicated to customer satisfaction, quality and service. Coherent's mission
is to continue its tradition of providing medical, scientific and commercial
customers with cost effective laser products that provide performance
breakthroughs and application innovations.
RESULTS OF OPERATIONS
CONSOLIDATED SUMMARY
During the first quarter ended December 28, 1996, the Company recorded a
net loss of $0.5
9
<PAGE>
million ($0.05 per share). The results included a one-time $9.0 million
($.78 per share) after tax write-off of purchased in-process technology
resulting from the recent acquisitions of Tutcore OY Ltd. of Tampere, Finland
and Micracor, Inc. of Acton, Massachusetts. Current quarter proforma net
income (after adding back the impact of the write-off of purchased in-process
technology) was $8.5 million ($0.73 per share) compared to $6.5 million
($0.57 per share) in the prior year's first quarter. Proforma income before
income taxes increased $2.8 million to $13.4 million from $10.6 million one
year ago. The primary factors contributing to these increases over the prior
year's first quarter were higher sales volumes, improved gross profits and a
lower effective tax rate.
NET SALES AND GROSS PROFITS
CONSOLIDATED
The Company's sales for the current quarter ended December 28, 1996
increased $10.2 million (12%) to $93.9 million from $83.7 million for the
same period one year ago. For the current quarter, international sales
represented 58% of total sales.
The gross profit rate increased to 52%, compared to 51% for the same
period a year ago.
ELECTRO-OPTICAL
Electro-Optical net sales increased $9.4 million (22%) to $52.5 million
for the current quarter compared to $43.1 million in the prior year's first
quarter. International sales increased $5.1 million (19%) and domestic sales
increased $4.3 million (26%) compared to the same prior year period. Sales
increased in all three operating groups due primarily to increased sales
volumes to OEM's and commercial customers. The Company believes that
products and technologies acquired in recent strategic business acquisitions
have contributed to these increased sales volumes as well. The gross profit
rate remained at 51% for the current quarter compared to the same quarter
last year.
MEDICAL
Medical segment sales increased $0.8 million (2%) to $41.4 million from
$40.6 million one year ago. The increase was due to higher sales volumes,
but the magnitude of the increase was partially offset by unusually high
volumes in the first quarter of the prior year. This resulted when the
Company was able to increase its output of products for aesthetic
applications and reduce an unusually high backlog of orders that had
accumulated in previous quarters.
The gross profit rate increased to 54% for the current quarter from 50%
in the prior year's first quarter. The increase in the gross profit rate was
primarily due to a more favorable product mix and higher sales volumes
through direct sales channels in lieu of distributor channels.
OPERATING EXPENSES
First Quarter
1997 1996
-----------------------
(IN THOUSANDS)
Research & development $ 8,725 $ 8,462
Purchased research & development 9,315
Selling, general & administrative 27,183 24,446
- - ----------------------------------------------------------------------------
Total operating expenses $ 45,223 $ 32,908
- - ----------------------------------------------------------------------------
- - ----------------------------------------------------------------------------
Total operating expenses increased $12.3 million (37%) in the quarter
ended December 28, 1996 compared to the prior year's first quarter. The
increase resulted primarily from higher research and development (R&D)
expenses due to the $9.3 million of in-process technology purchased from
Tutcore
10
<PAGE>
and Micracor. Notwithstanding the purchase, R&D expenses increased $0.3
million (3%) but decreased as a percentage of sales to 9% from 10% in the
prior year's first quarter. Selling, general and administrative (SG&A)
expenses increased $2.7 million (11%) but remained at 29% of sales.
R&D expenses, exclusive of the aforementioned $9.3 million write-off of
purchased in-process technology, as a percentage of sales, decreased
primarily due to the timing of projects. Spending is usually lower in the
start-up and wrap-up stages of a project than at other times throughout the
year and a higher than average of the current development efforts are in such
stages.
SG&A expenses increased as a percentage of sales in the Medical segment
due to increased headcount and increased activity levels primarily due to
starting a direct sales and service office in Japan. This increase was
offset by the Electro-Optical segment SG&A growing at a slower rate than
sales.
OTHER INCOME (EXPENSE)
Other income, net decreased $0.9 million for the current quarter to $0.3
million from $1.2 million in the prior year's first quarter. This decrease
was primarily due to lower interest income on lower average cash and
investment balances, higher interest expense due to no capitalization of
interest upon the completion of refurbishing of the Porter Drive building
prior to this quarter, higher foreign exchange losses, higher allocation of
income to minority interest due to improved performance in the Lambda Physik
Group, partially offset by higher other income, net. The increase in other
income primarily results from rental income received from the lease of the
Porter Drive facility.
INCOME TAXES
The Company's proforma effective tax rate (excluding the $9.3 million
write-off of purchased R&D) for the three months ended December 28, 1996 was
37% compared to 39% for the same quarter last year. The Company's proforma
effective tax rate decreased to 37% for the current quarter as a result of
increases in foreign tax credit utilization, foreign sales corporation
benefit and changes in income by taxing jurisdiction.
FINANCIAL CONDITION
LIQUIDITY AND CAPITAL RESOURCES
The Company's primary sources of liquidity are cash, cash equivalents
and short-term investments of $27.3 million. Additional sources of liquidity
are the Company's multi-currency line of credit and bank credit facilities
totaling $45.0 million. As of December 28, 1996, the Company had $36.9
million unused and available under these credit facilities.
CHANGES IN FINANCIAL CONDITION
Cash and equivalents and short-term investments increased $7.3 million
(21%) year-to-date. Operations and changes in exchange rates generated
$15.7 million including $13.0 million of proceeds from the sale of short-term
investments, net of proceeds. Investing activities used $14.3 million
including $8.9 million used to acquire property and equipment and net $5.2
million used to acquire Tutcore and Micracor. Financing activities provided
$3.7 million through net borrowings of $2.1 million and $1.6 million from the
sale of shares under employee stock plans.
Long term obligations increased $6.8 million from September 28, 1996
primarily due to deferred payment obligations of $5.4 million from the
Tutcore acquisition.
11
<PAGE>
COHERENT, INC.
PART II. OTHER INFORMATION
ITEM 1. Material developments in connection with legal proceedings.
N/A
ITEM 2. Material modification of rights of registrant's securities.
N/A
ITEM 3. Defaults on senior securities.
N/A
ITEM 4. Submission of matters to a vote of security holders.
N/A
ITEM 5. Other.
N/A
ITEM 6. Exhibits and Reports on Form 8-K.
Exhibit 27 "Financial Data Schedules" included herewith
12
<PAGE>
COHERENT, INC.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the registrant has duly caused this Report to be signed on its behalf by the
undersigned, thereunto duly authorized.
COHERENT, INC.
(Registrant)
Date: February 11, 1997 By: ROBERT J. QUILLINAN
-----------------------------------
Robert J. Quillinan
Vice President and Chief Financial
Officer
13
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-27-1997
<PERIOD-START> SEP-29-1996
<PERIOD-END> DEC-28-1996
<CASH> 14,323
<SECURITIES> 13,011
<RECEIVABLES> 82,369
<ALLOWANCES> 2,672
<INVENTORY> 68,347
<CURRENT-ASSETS> 206,587
<PP&E> 125,545
<DEPRECIATION> 52,421
<TOTAL-ASSETS> 310,355
<CURRENT-LIABILITIES> 85,492
<BONDS> 10,708
0
0
<COMMON> 112
<OTHER-SE> 198,860
<TOTAL-LIABILITY-AND-EQUITY> 310,355
<SALES> 93,893
<TOTAL-REVENUES> 93,893
<CGS> 44,843
<TOTAL-COSTS> 44,843
<OTHER-EXPENSES> 45,223
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 258
<INCOME-PRETAX> 4,126
<INCOME-TAX> 4,658
<INCOME-CONTINUING> 532
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (532)
<EPS-PRIMARY> (.05)
<EPS-DILUTED> (.05)
</TABLE>
