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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 10-K/A
AMENDMENT NO. 1
(Mark One)
(x) Annual report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934 For the fiscal year ended: SEPTEMBER 26, 1998
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
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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)
(408) 764-4000
(Registrant's telephone number, including area code)
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Securities registered pursuant to Section 12(b) of the Act: NONE
Securities registered pursuant to Section 12(g) of the Act:
COMMON STOCK, $.01 PAR VALUE PER SHARE
COMMON STOCK PURCHASE RIGHTS
(Title of Class)
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
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Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to the
best of Registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. X
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As of November 17, 1998, 23,870,303 shares of Common Stock were
outstanding. The aggregate market value of the voting shares (based upon the
closing price reported by the Nasdaq National Market on November 17, 1998) of
Coherent, Inc., held by nonaffiliates was $207,527,198. For purposes of this
disclosure, shares of Common Stock and shares of Common Stock held by persons
who own 5% or more of the outstanding Common Stock and shares of Common Stock
held by each officer and director have been excluded in that such persons may be
deemed to be "affiliates" as that term is defined under the Rules and
Regulations of the Act. This determination of affiliate status is not
necessarily a conclusive.
DOCUMENTS INCORPORATED BY REFERENCE
None.
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EXPLANATORY NOTE
This Annual Report on Form 10-K/A ("Form 10-K/A") is being filed as
Amendment No. 1 to the Registrant's Annual Report on Form 10-K for the fiscal
year ended September 26, 1998 filed with the Securities and Exchange Commission
(the ACommission@) solely for the purpose of revising and restating the
following items in their entirety.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
6. INCOME TAXES
The provision for income taxes consists of the following:
<TABLE>
<CAPTION>
1998 1997 1996
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(In thousands)
<S> <C> <C> <C>
Currently payable:
Federal $ 5,126 $ 9,789 $18,179
State 65 1,666 2,452
Foreign 7,171 10,660 6,105
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12,362 22,115 26,736
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Deferred charge (credit):
Federal (7,069) 1,601 (5,077)
State (757) (35) (1,348)
Foreign 358 (3,179) (1,308)
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(7,468) (1,613) (7,733)
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Provision for income taxes $ 4,894 $20,502 $19,003
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</TABLE>
The components of income before income taxes consist of:
<TABLE>
<CAPTION>
1998 1997 1996
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(In thousands)
<S> <C> <C> <C>
United States $ 8,037 $31,244 $39,820
Foreign 15,668 15,550 9,497
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Income before income taxes $23,705 $46,794 $49,317
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</TABLE>
The reconciliation of the statutory federal income tax rate to the
effective rate is as follows:
<TABLE>
<CAPTION>
1998 1997 1996
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% OF % of % of
PRETAX Pretax Pretax
INCOME Income Income
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<S> <C> <C> <C>
Federal statutory tax rate 35.0% 35.0% 35.0%
Benefit from favorable IRS ruling (10.3)
Non-deductible purchased in-process technology 6.3
Foreign tax rates in excess of U.S. rates 7.8 4.4 3.0
Foreign tax credit (8.6) (1.8) (1.3)
Foreign sales corporation benefit (1.0)
State income taxes, net of federal income tax benefit (1.9) 2.3 1.7
Research and Development credit, net of recapture (4.7) (2.9) (0.4)
Other 3.3 0.5 1.5
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Provision for income taxes 20.6% 43.8% 38.5%
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</TABLE>
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The significant components of deferred tax assets and liabilities were:
<TABLE>
<CAPTION>
SEPTEMBER 26, September 27,
1998 1997
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(In thousands)
<S> <C> <C>
Deferred tax assets:
Reserves and accruals not currently deductible $18,402 $13,737
Operating loss carry forwards and tax credits 6,683 3,996
Intercompany profit 1,179 695
Deferred service revenue 2,462 2,351
State taxes 1,114 1,563
Depreciation and amortization 620
Other 2,456 1,539
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32,916 23,881
Valuation allowance (3,567) (2,567)
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29,349 21,314
Deferred tax liabilities:
Depreciation and amortization 990
Other 2,779 1,631
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2,779 2,621
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Total deferred tax assets and liabilities $26,570 $18,693
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</TABLE>
The Company increased its valuation allowance in fiscal 1998 by $1,000,000
to partially reserve for the current year benefit of foreign tax credit
carryforwards for which realization is not likely.
The total net deferred tax asset is classified on the balance sheet at
September 26, 1998 and September 27, 1997 as follows (in thousands):
<TABLE>
<CAPTION>
1998 1997
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(In thousands)
<S> <C> <C>
Current deferred income tax assets $26,618 $22,267
Non-current deferred income tax liabilities (48) (3,574)
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Net deferred tax assets $26,570 $18,693
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</TABLE>
Total net operating losses of $770,000 for tax return purposes expire as
follows: 2003 - $275,000 and $495,000 with no expiration. Total tax credits of
$3,546,000 for tax return purposes expire as follows: 1999 - $2,461,000, 2002 -
$396,000 and 2003 - $689,000.
Utilization of certain of these carry forwards are subject to restrictions
relating to taxable income of subsidiaries not previously consolidated for
income tax purposes.
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10. OTHER INCOME (EXPENSE)
Other income (expense) is as follows:
<TABLE>
<CAPTION>
Years Ended
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SEPT. 26, Sept. 27, Sept. 28,
1998 1997 1996
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(In thousands)
<S> <C> <C> <C>
Gain on sale of facility $ 3,526
Minority interest in subsidiaries $ (908) (1,324) $ (813)
Royalty income 683 951 479
Foreign exchange gain (loss) (711) (350) 299
Equity in income of joint ventures 131 287 93
Gain (loss) on investments, net 45 (41) 1,646
Other - net 295 1,257 508
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Other income (expense) net $ (465) $ 4,306 $ 2,212
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</TABLE>
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this Amendment No. 1 to
Form 10-K on Form 10-K/A to be signed on its behalf by the undersigned,
thereunto duly authorized on this 6th day of January 1999.
COHERENT, INC.
By: /s/ ROBERT J. QUILLINAN
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Robert J. Quillinan
Executive Vice President & CFO
Pursuant to the requirements of the Securities Exchange Act of 1934, this
Amendment No 1 to Form 10-K on Form 10-K/A has been signed below by the
following persons on January 6, 1999 on behalf of the Registrant and in the
capacities and on the dates indicated:
<TABLE>
<CAPTION>
SIGNATURES TITLE
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<S> <C>
* Director, President & Chief Executive Officer
---------------------- (Principal Executive Officer)
Bernard J. Couillaud
* Executive Vice President & Chief Financial
---------------------- Officer
Robert J. Quillinan
* Director, Chairman of the Board
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Henry E. Gauthier
* Director
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Charles W. Cantoni
* Director
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Frank Carrubba
* Director
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Thomas Sloan Nelsen
* Director
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Jerry E. Robertson
</TABLE>
* By: /s/ Robert J. Quillinan
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Robert J. Quillinan
Attorney-in-Fact
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