Coherent Increases Profits, Acquires 2 Firms in 2015
SANTA CLARA, Calif., Nov. 5, 2015 — Capping off a year in which it made two acquisitions geared toward laser materials processing, Coherent Inc. reported a 29 percent increase in profits.
Net income for the fiscal year, which ended Oct. 3, was $76.4 million, or $3.06 per diluted share, compared with $59.1 million, or $2.36 per diluted share, in fiscal 2014.
Fiscal 2015 net sales totaled $802.5 million, up 1 percent from $794.6 million the previous year.
"A combination of favorable product mix and lower warranty costs led to outstanding earnings and cash generation in our fourth fiscal quarter," said President and CEO John Ambroseo.
The company added two other businesses to its specialty lasers and systems division in July.
In a $5 million deal, Coherent acquired certain assets and retained core employees of ultrafast laser developer Raydiance Inc. of Petaluma. Coherent said the move will give it a better foothold in the short-pulse micromaterials processing market, with a particular focus on automotive fuel injectors and medical devices.
Meanwhile, in a $4.3 million deal, Coherent acquired Tinsley Optics of Richmond from the defense contractor L-3 Communications Corp. Tinsley was the only supplier of 1300- and 1500-nm optics for Coherent's larger-format Linebeam excimer laser annealing system, which are used in mobile display manufacturing.
After L-3 decided to exit the business, Coherent opted to acquire Tinsley "rather than face supply chain risk or possible price increases from a new owner," Coherent wrote in a regulatory filing. The acquisition will also help facilitate shipments and reduce costs, Ambroseo said.
Flat panel display manufacturing will be important market segment in the coming years, Ambroseo said. Coherent recently delivered its third Linebeam 1500 system for manufacturing high-resolution organic LED screens.
Coherent plans to continue to serve Tinsley's core aerospace and defense specialty optics markets.
Founded in 1966, Coherent develops photonics instruments for the commercial and scientific research markets.