Coherent Corp. · NYSE:COHR
Coherent — Q2 2018 Earnings Presentation
10 slides from Coherent's earnings presentation, May 1, 2018
Slide 1: Coherent - The Leader in Photonics
COHERENT - THE LEADER IN PHOTONICS 5/1/2018 pg. 1 | Coherent Confidential. Do Not Copy, Reproduce, or Distribute. | www.coherent.com
Slide 2: Forward-Looking Statements & Non-GAAP Measurement
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
Slide 3: Coherent - The Photonics Company
COHERENT - THE PHOTONICS COMPANY Key Company Facts Growth Momentum - Revenue ($M) • Industry leading provider of photonic $500 490 478 481 solutions $480 464 $460 • Founded in 1966 $440 423 $420 • LTM Sales $1,913M $400 • Sales 16% U.S. and 84% International $380 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 • Stro
Slide 4: Diversified Markets and Applications
DIVERSIFIED MARKETS AND APPLICATIONS End Markets OEM Components & Scientific Research & Microelectronics Materials Processing Instrumentation Government Programs FPD, API, Semi Marking, Engraving, Diagnostic & Ultrafast Primary Cutting and Welding Therapeutic Medical, Application Focus Defense and D
Slide 5: Revenue by Market Segment
REVENUE BY MARKET SEGMENT Q2 18 vs Q2 18 vs Q2 17 Q1 18 Q2 18 Q1 18 Q2 17 Microelectronics 210,882 268,176 261,308 54.3% (6,868) -2.6% 50,426 23.9% Material Processing 127,531 127,461 135,822 28.2% 8,361 6.6% 8,291 6.5% OEM Comp & Inst 55,017 48,856 53,323 11.1% 4,467 9.1% (1,694) -3.1% Scientific &
Slide 6: Growth Catalysts
GROWTH CATALYSTS • Microelectronics • OLED adoption in handsets, mobile computing, automotive, TVs, general signage • Smaller geometries in silicon • Materials Processing • Continued laser adoption for Industrial applications • Metal cutting, Welding/Joining applications • OEM Instrumentation • Eye
Slide 7: Financial Performance (Non-GAAP)
FINANCIAL PERFORMANCE (NON-GAAP) Revenue ($M) Gross Margin 48.4% 48.5% 48.7% 48.5% 47.7% $500 490 50% 478 481 45% $480 40% 464 $460 35% 30% $440 25% 423 20% $420 15% $400 10% 5% $380 0% Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Operating Margin Fully Diluted EPS 27.9% 28.8% 27.8% 3
Slide 8: Financial Strength
FINANCIAL STRENGTH $ Millions In Millions ($) Mar 31, ‘18 Sept 30, ‘17 Domestic 161.4 175.6 Offshore 184.7 300.0 Total cash, cash equivalents & mkt securities 346.1 475.6 Total assets 2,336.6 2,337.8 Stockholders Equity 1,289.7 1,163.3 Debt* 457.1 594.1 EBITDA** 139.4 154.4 Free cash flow*** 46.6 81
Slide 9: Appendix
APPENDIX pg. 9 | Coherent Confidential. Do Not Copy, Reproduce, or Distribute. | www.coherent.com
Slide 10: Reconciliation from GAAP to Non-GAAP Financials
RECONCILIATION FROM GAAP TO NON-GAAP FINANCIALS $ Millions Year to Date Q2'18 Q2'17 GAAP net income (loss) from continuing operations $107,205 $72,886 GAAP net income (loss) from continuing operations per diluted share $4.29 $2.95 Stock compensation 12,702 13,034 Intangibles amortization 21,704 20,2