superior reliability & performance the leader in photonics
Post on 25-Dec-2015
227 Views
Preview:
TRANSCRIPT
Superior Reliability & Performance
The Leader in Photonics
Superior Reliability & Performance October 2007
P. 2
Forward-Looking Statements & Non-GAAP Measurement
Forward-Looking Statements
The statements in this presentation that relate to future plans, 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 Registration Statement on Form S-3. 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 result 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 the
Company’s registration statement on Form S-3 filed with the SEC on October 10, 2006 and reports on Forms 10-K, 10-Q
and 8-K, as applicable.
Non-GAAP Measurement
The Company’s statement regarding its adjusted EBITDA percentage target is a non-GAAP financial measure. The most
comparable GAAP measurement is net income, which is not currently accessible on a forward-looking basis. Adjusted
EBITDA reflects earnings before interest, taxes, depreciation, amortization, stock compensation expenses and other
non-operating income and expense items. These items, which are required to determine GAAP net income, are subject
to significant change by end of fiscal 2010, given the impact of potential acquisitions, tax rate changes and other
operational factors which will heavily impact these items and are also impacted by the Company’s historical stock
option investigation and the effect of any compensation charges arising from future equity grants.
Superior Reliability & Performance October 2007
P. 3
The Photonics Company
Superior Reliability & Performance October 2007
P. 4
The Photonics Company
Provider of Photonics* Solutions Primarily Lasers for Commercial and Scientific Research Applications
Founded in 1966
Sales $600.4 Million (ttm)
Orders $579.4 Million (ttm)
~2400 Employees
Sales 31% U.S.; 69% International (ttm)
As of 6/30/07
*Photonics is the Merger of Lasers, Optics and Electronics
Superior Reliability & Performance October 2007
P. 5
Comparison of Cumulative Ten-Year Sales Return Indexed
Sources: Coherent, LFW, Deere & Co., SEMI, IMF-World Economic Outlook Database
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Non-diode Lasers Global Semi Global GDP Coherent
Superior Reliability & Performance October 2007
P. 6
Our Strategy and Objectives
Leverage the depth & breadth of our technology portfolio to optimize growth and performance
Create new markets through internal and independent application development
Continue to lead the revolution in commercial lasers
Complement internal product/market development through acquisitions
Deliver superior financial performance through EBITDA expansion and continued strong cash flows
Superior Reliability & Performance October 2007
P. 7
Competitive Landscape: Lasers and Electro-optic Components (non-telecom and consumer electronics)
~200 additional companies
44% $1.3 billion
IPG 5%
~$150 million
SP 6%
~$160 million
Coherent 20%
~$600 million
Cymer 18% ~$544 million
Excel 4%
~$125 million
JDSU 3%
~$100 million
$3 Billion Global Market
Public data and Company estimates
Superior Reliability & Performance October 2007
P. 8
Communicating
Measuring, Sensing
Reading, Writing
Projecting
Engraving, Marking
Etching, Exposing
Micromat'l Processing
Cutting, Drilling
Welding, J oining
Scienc
eMedica
lMicr
oelec
Cons.
Elec.
Telec
omm
Light
Mfg.
Heavy
Mfg.Def/
HS
2006 Industry Map ($3B minus telecom, CE)
Superior Reliability & Performance October 2007
P. 9
34%
29%
31%
6%
Geographic Sales Distribution $600.4 Million (ttm as of 6/30/07)
EuropeEurope
United StatesUnited States
R.O.W.R.O.W.Asia PacificAsia Pacific
Superior Reliability & Performance October 2007
P. 10
20%
26%
16%
35%
3%
Order Mix
$579.4 Million (ttm as of 6/30/07)
OEM ComponentsOEM Components& Instrumentation& Instrumentation
Materials ProcessingMaterials Processing
MicroelectronicsMicroelectronics
Graphic Arts & DisplayGraphic Arts & DisplayScientific ResearchScientific Research& Gov. Programs& Gov. Programs
Superior Reliability & Performance
P. 11
October 2007
Microelectronics
Flat Panel Display Capital EquipmentTFT-LCD, PDP & Next Generation FabsEnabling Manufacture of High End Displays (Low Temperature Polycrystalline Si-TFTs)
Color Filter Processing
Driving Next Generation Technology for Thin Flexible Displays (OLEDs)
Printed Circuit Board & Packaging EquipmentTransitioning from Conventional Tools to Improve Yields
and Reduce Feature SizesLaser Microvia Drilling
Laser Direct Imaging
Solar Cell Manufacturing
Semiconductor Capital Equipment Primarily 193 nm and Below and 300 mm Fabs Metrology/Inspection Tools
Photomask Tools
Superior Reliability & Performance
P. 12
October 2007
OEM Components & Instrumentation
OEM Components
Enabling Laser Components to Industries such as Medical,Thermal Imaging, and Defense
Leading Supplier of Excimer Lasers to OEM System Integrators for Ophthalmic Surgery
Bioinstrumentation Market
Proteomics, Genomics and Drug Discovery
New Architectures with Ultimate Goal of Portable Diagnostic Tools
Superior Reliability & Performance
P. 13
October 2007
Materials Processing
Miniaturization and Yields are Major Drivers
Cutting and Welding
Processing of Plastics
Marking and Coding
Cladding and Hardening
Superior Reliability & Performance
P. 14
October 2007
Graphic Arts & Display
Conversion to Digital Work Flow Paradigm and
“Green” (i.e., Environmental) Motivation
Computer-to-Plate
Digital Offset Presses
Large Format Projection & Digital Media
Laser TV and Consumer Electronics– Non-exclusive license to Osram
Superior Reliability & Performance
P. 15
October 2007
Scientific Research & Government Programs
Scientific Laser Market
University, Industrial and Government Laboratories
Incubating Many Emerging Applications and Technologies
Establishing Customer Relationships and Brand Equity
Superior Reliability & Performance October 2007
P. 16
Technology
Superior Reliability & Performance October 2007
P. 17
Optically Pumped Semiconductor (OPS): The Power of Platforms
Electrical Input: 40W-400W (up to10X more efficient than other laser sources)
Output Power: 10 mW-10W
Output Wavelengths: 460 nm-1060 nm
Characteristics: Reliable, Efficient, Compact, Air-Cooled
Units Shipped to Date:>10,000
MTBF:>27,000 hours
A Versatile & Revolutionary TechnologyA Versatile & Revolutionary Technology
Superior Reliability & Performance October 2007
P. 18
The Power of Platforms: Future Developments
Microelectronics and materials processing represent the two largest core market growth opportunities for Coherent
Over the next 12-18 months, we plan to introduce at least two new platforms into these markets
The key attributes are:
Configurable packages to serve multiple customers/applications
Modular design for performance and cost evolution – estimate up to 10 years of runway
Higher contract manufacturing/low cost region compatibility
Superior Reliability & Performance October 2007
P. 19
Financial Priorities and Progress
Superior Reliability & Performance October 2007
P. 20
Sales, Bookings & Backlog ($M)
$0
$100
$200
$300
$400
$500
$600
$700
2002 2003 2004 2005 2006 TTM'07*
Sales Backlog Bookings
As of 6/30/07
*Trailing Twelve Months as of 6/30/07
Superior Reliability & Performance October 2007
P. 21
Cash Net of Debt ($M)
$0.00
$100.00
$200.00
$300.00
$400.00
$500.00
$600.00
2002 2003 2004 2005 2006 Q3'07
Cash & S-T Investments Debt Cash Net of Debt
As of 6/30/07
Convertible debt of $200M was repaid in August 2007 at par plus accumulated interest
Superior Reliability & Performance October 2007
P. 22
Financial Priorities and Progress
Special Committee concluded its voluntary review of historical
stock option practices
Announced restatement range of $22-28 million
Significant majority of charges stem from the period of 1995-2001
More than half the charge is from 2000
Superior Reliability & Performance October 2007
P. 23
Financial Priorities and Progress
EBITDA targets of 19-23% exiting fiscal year 2010
Material cost reductions, expanded use of contract manufacturers, SG&A
leverage, introduction of more flexible and cost-effective platform designs
and continued yield and reliability improvements
Continued emphasis on capital structure
Choices under consideration include accretive acquisitions and a share
repurchase program
Superior Reliability & Performance October 2007
P. 24
Why Coherent
Photonics is the enabling solution; Coherent is the enabling
provider
Coherent is the Photonics Leader with multiple growth
opportunities in existing and emerging markets
Coherent has a track record of innovation, execution and
financial strength
top related