Summary
Coherent Corp. reported significant top-line growth in the six months ended December 31, 2022, with revenues increasing by 69% to $2.715 billion, largely driven by the acquisition of Coherent, Inc. (Legacy Coherent) which now forms the Lasers segment. Despite this revenue surge, the company experienced a net loss of $83.8 million for the period, a reversal from the $142.1 million net earnings in the prior year, primarily impacted by the costs associated with the Legacy Coherent acquisition, including inventory step-ups and amortization of intangible assets. Financially, the company's balance sheet reflects the scale of the acquisition, with total assets more than doubling to $14.1 billion from $7.8 billion at June 30, 2022. This is largely due to the significant increases in goodwill and other intangible assets. Debt levels also rose considerably to $4.5 billion from $2.3 billion, supporting the acquisition. The company's liquidity appears stable, with $913 million in cash and cash equivalents and significant availability under its revolving credit facility.
Financial Highlights
48 data points| Revenue | $1.37B |
| Cost of Revenue | $959.10M |
| Gross Profit | $411.19M |
| R&D Expenses | $128.79M |
| SG&A Expenses | $274.15M |
| Operating Expenses | $1.44B |
| Operating Income | $8.25M |
| Interest Expense | $70.90M |
| Net Income | -$45.07M |
| EPS (Basic) | $-0.58 |
| EPS (Diluted) | $-0.58 |
| Shares Outstanding (Basic) | 138.62M |
| Shares Outstanding (Diluted) | 138.62M |
Key Highlights
- 1Revenue for the six months ended December 31, 2022, surged by 69% to $2.715 billion, primarily driven by the acquisition of Legacy Coherent and contributions from the Materials and Networking segments.
- 2The company reported a net loss of $83.8 million for the six months ended December 31, 2022, a significant change from the $142.1 million net earnings in the prior year's comparable period.
- 3Total assets more than doubled to $14.1 billion as of December 31, 2022, with substantial increases in goodwill ($4.4 billion) and intangible assets ($4.0 billion) due to the acquisition.
- 4Long-term debt increased significantly to $4.4 billion as of December 31, 2022, up from $1.9 billion at June 30, 2022, reflecting financing for the acquisition.
- 5Gross margin percentage decreased to 31% for the six months ended December 31, 2022, from 39% in the prior year, impacted by acquisition-related inventory fair value adjustments and amortization expenses.
- 6Selling, general, and administrative (SG&A) expenses nearly doubled as a percentage of revenue to 20% for the six months ended December 31, 2022, driven by acquisition-related costs, including amortization of intangibles and integration expenses.
- 7Net cash provided by operating activities improved to $300 million for the six months ended December 31, 2022, up from $240 million in the prior year, indicating improved working capital management.