superior reliability & performance · 2020-04-10 · asia pacific geographic sales distribution...

Superior Reliability & Performance

The Leader in Photonics

August 2015

P. 2 Superior Reliability & Performance

Forward-Looking Statements & Non-GAAP Measurement

Forward-Looking Statements

The statements in this presentation that relate to guidance, projections, future plans, business opportunities, estimates, events or performance

are forward-looking statements that involve risks and uncertainties, including risks associated with business and economic conditions, customer

and/or supplier contract cancellations, manufacturing risks, competitive factors, successful introductions of new products, uncertainties pertaining

to customer orders, demand for products and services, growth and development of markets for the Company's products and services, and other

risks identified in our filings made with the Securities and Exchange Commission, including, most recently, our Form 10-Q for the quarter ended

April 4, 2015. Actual results, events and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-

looking statements, which speak only as of the date hereof. The Company undertakes no obligation to release publicly the results 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. Readers are encouraged to refer to the risk disclosures described in the Company’s Form 10-K for the fiscal

year ended September 27, 2014, our most recent Form10-Q and subsequent reports and 8-K’s, as applicable.

Non-GAAP Measurement

The Company’s statements regarding its historical pro forma net income, pro forma EBITDA% and pro forma EPS results are non-GAAP financial

measures. Historical pro forma net income, pro forma EBITDA% and pro forma EPS exclude those items set forth on the applicable slide and you

should refer to those slides and the reconciliation for further information.

The Company neither updates nor confirms any guidance regarding the future operating results of the Company which may have been given

prior to this presentation.

All images copyrighted by Coherent, Inc. © 2013


The Photonics Company

• Provider of Photonics Solutions - Primarily Lasers for Commercial

and Scientific Research Applications

• Founded in 1966

• TTM Sales $798.2 Million

• TTM Orders $742.4 Million

• 2,524 Employees

• Sales 26% U.S. and 74% International

• Approximately 427 Patents, 147 Pending

____________________ Note: Photonics is the Merger of Lasers, Optics and Electronics

Source: Company management as of 07/04/15

Materials

Processing

Microelectronics

OEM Components

& Instrumentation

Scientific Research

& Gov. Programs

Revenue Mix

TTM

Europe

R.O.W.

Asia Pacific

Geographic Sales Distribution

TTM

15%

21%

15%

49%

17%

26%

6%

51%

US


Diversified Markets and Applications

Technology Portfolio

FPD, API, Semi

Marking, Engraving,

Cutting and Welding

Diagnostic &

Therapeutic Medical,

Defense and Display

Ultrafast

1 4 + 1 1

NEWP, JDSU, Trumpf IPGP, Trumpf, RSTI JDSU, NEWP, Private

Companies

NEWP, GSIG, Private

Companies

OLED, Smartphones,

Tablets, Strengthened

Glass Cutting

High Power

Materials Processing

Laser Eye Care

Dental

Attosecond Physics

Primary

Application Focus

Growth vs Market

Competitors

Growth

Opportunities

Scientific Research &

Government Programs

OEM Components &

Instrumentation Materials Processing Microelectronics

SAM Position


Acquisition of Tinsley Optics

• Tinsley Optics was a division of L-3 Communications specializing

in large format optics for excimer laser annealing (ELA), defense

and aerospace applications

• Coherent acquired the Tinsley assets in a cash transaction on

July 27, 2015

• The acquisition provides supply chain protection for Coherent and

its customers for Gen 5 and larger ELA systems (>1000mm)

• Coherent will continue to support non-ELA customers

predominantly for ground and space-based telescopes

• We expect the business to generate $7.5-10 million in FY16 sales

and become accretive by Q4FY16

• Tinsley will operate as part of Coherent Integrated Optical

Systems (IOS) located in Richmond, CA


Acquisition of Raydiance Inc.

• Raydiance was a venture backed start-up specializing in short

pulse processing for the automotive fuel injector and medical

device manufacturing

• Coherent acquired the Raydiance assets in a cash transaction on

July 24, 2015

• The acquisition expands Coherent’s know-how and IP position in

the developing micromachining market

• Coherent will provide ongoing support for the installed user base

including new systems, parts and service

• We expect the business to generate $7.5-10 million in FY16 sales

and become accretive by Q4FY16

• It will operate as part of Coherent Integrated Optical Systems

(IOS) located in Richmond, CA


HighLight FL High Power Fiber Laser Platform

• Target Applications

• Cutting, welding, brazing and additive manufacturing

• Key Attributes

• Power 1kw to 4kW, scalable to higher power

• Modular architecture with high flexibility for OEM modules or

complete systems

• High-quality, high-throughput metal processing especially with

highly reflective materials

• Robust design for harsh industrial environments

• Vertical integration enables reliability and cost


5 Micron Laser

• Key Attributes

• Industry’s first commercial high power 5 micron laser

• Unique wavelength enables more efficient processing of certain

materials

• Ability to achieve up to 50% smaller spot size than CO2

• Leverages Coherent’s industry leading CO2 platform and with similar

Cost-of-ownership

• 230W average power. Future models scalable to higher powers


• PCB via drilling – extended CO2 capability to drill <40 micron vias

• Polymer Film Cutting – ability to process difficult materials

• Ultra-thin Glass Processing – ability to cut free-form

• Medical Therapy – high water absorption advantage


Monaco – Industrial Femtosecond Laser

• Key Attributes

• Ideal for highest edge / surface quality in insulators, metals and semiconductors

• Pulse width tunable (400 – 10,000 fs) to match optimum material removal rates

• Up to 1MHz rep rate / 40W power for highest throughput / lowest costs per part

• Compact all fiber architecture enables low cost and future performance scaling


• Glass cutting for microelectronics

• Thin film processing for microelectronics

• Lasik flap cutting and cataract procedures

• Automotive engine parts including fuel injectors

• Medical device manufacturing including stents


Performa Income Statement Metrics

$ Millions except

earnings per share 594

419

696

895

773 767

891

163 221 177

599

436

605

803 769 810 795

201 204 189

$-

$200

$400

$600

$800

$1,000

FY08 FY09 FY10 FY11 FY12 FY13 FY14 Q1'15 Q2'15 Q3'15

Bookings Revenue

13.5%

7.1%

17.0% 19.5% 18.4% 17.8% 17.2% 18.7% 17.6% 18.4%

0%

5%

10%

15%

20%

25%


Pro Forma EBITDA%

1.74

0.46

2.13

3.70 3.28

3.56 3.19

0.87 0.94 0.82

$-

$1.00

$2.00

$3.00

$4.00

$5.00


Pro Forma EPS

Note:. Pro Forma EBITDA% and EPS exclude stock related compensation charges, intangibles amortization, inventory step up per purchase price accounting and exceptional

items such as impairment charges, major restructuring costs, historical financial restatement and litigation costs, and non-recurring tax expenses or benefits.

____________________


Balance Sheet

July 4, 2015 Sept 27, 2014

Cash, equivalents & investments

Accounts receivable

Inventories

Other current assets

PP&E, net

Long term assets

$ 336.8

144.7

157.8

71.7

99.0

187.1

$ 318.3

137.3

170.5

55.0

107.4

210.9

Total Assets $ 997.1 $ 999.4

Current liabilities

Long term liabilities

Equity

$ 129.8

53.3

814.0

$ 117.3

62.4

819.7

Total Liabilities & Stockholders’ Equity $ 997.1 $ 999.4

$ Millions

FY08 $ 227.2 M

FY10 $ 43.3 M

FY11 $ 100.0 M

FY12 $ 25.0 M

Q1FY15 $ 17.3 M

Q2FY15 $ 7.7 M

Q3FY15 $ 0.0 M

Historical stock repurchases 362

218 244 263 220 225 250

318 323 344 337

SepFY07

SepFY08

SepFY09

SepFY10

SepFY11

SepFY12

SepFY13

SepFY14

DecFY15

MarFY15

JunFY15

Cash Balance


Reconciliation to GAAP and Non-GAAP Financials

Quarter to Date

Q3 15 Q2 15 Q1 15

Net Income % of revenue 7.0% 9.0% 8.7%

Income tax expense 2.6% 2.8% 3.1%

Interest and other (income) expense, net 0.4% (0.6%) 0.6%

Depreciation and amortization 4.2% 4.1% 4.1%

Customs audit 0.7% 0.0% 0.0%

Impairment of investment 1.1% 0.0% 0.0%

Stock based compensation 2.4% 2.3% 2.2%

Pro Forma EBITDA % of revenue 18.4% 17.6% 18.7%

Quarter to Date

Q3 15 Q2 15 Q1 15

GAAP net income $13,264 $18,413 $17,430

GAAP net income per diluted share $ 0.53 $ 0.74 $ 0.69

Stock based compensation 3,293 3,479 3,960

Intangibles amortization 1,432 1,540 1,607

Customs audit 1,289 0 0

Impairment of investment 1,274 0 0

Non-recurring tax benefit 0 0 (1,118)

Non-GAAP net income $20,552 $23,432 $21,879

Non-GAAP net income per diluted share $ 0.82 $ 0.94 $ 0.87

superior reliability & performance · 2020-04-10 · asia pacific geographic sales distribution...

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