SANTA CLARA, Calif., April 17, 2008 -- Laser maker Coherent Inc. announced it will outsource its optics manufacturing by selling certain assets of its Auburn, Calif.-based operation to Research Electro-Optics Inc., a privately held optics manufacturing and technology company located in Boulder, Colo.
Coherent sold the 80,000-sq-ft Auburn campus for approximately $9.8 million in September 2007 as part of a plan to consolidate facilities, resulting in a capital loss of approximately $12.6 million in the fourth quarter of fiscal 2007, according to its 2007 annual report. The company leased back a portion of the property from the buyer, a real-estate investment company, through September 2008.
As part of the asset transaction, Research Electro-Optics (REO) has agreed to provide optical manufacturing capabilities for Coherent, including fabrication and coating of optical components. Details of the agreement were not disclosed.
Coherent said the transfer of assets from Auburn to Boulder will begin immediately and is expected to be completed by the end of the second quarter of fiscal 2009. The company said it will discuss the transaction further during the conference call it has scheduled for April 24 at 1:30 p.m. to talk about its second quarter 2008 financial results.
For more information, visit: www.coherent.com