SANTA CLARA, Calif., Nov. 5 /PRNewswire-FirstCall/ -- Coherent, Inc. (Nasdaq: COHR) today announced financial results for its fourth fiscal quarter ended September 27, 2008, posting net sales of $142.0 million and net income, on a U.S. generally accepted accounting principles (GAAP) basis, of $4.1 million, or $0.17 per diluted share, compared to net sales of $158.9 million and a net loss of $1.3 million, or $(0.04) per diluted share, for the fourth quarter of fiscal 2007.

Net income for the fourth quarter of fiscal 2008 included an after tax charge of $0.2 million related to litigation resulting from our internal stock option investigation ($0.01 per diluted share), after tax stock-related compensation expense of $1.3 million ($0.05 per diluted share) and restructuring expense of $2.6 million, net of tax ($0.11 per diluted share). Excluding these charges, non-GAAP net income was $8.2 million or $0.34 per diluted share. Net income for the fourth quarter of fiscal 2007 included an after tax charge of $1.7 million ($0.05 per diluted share) of internal stock option investigation costs, after tax stock-related compensation expense of $0.9 million ($0.03 per diluted share), $12.6 million, net of tax, of capital loss on the sale of our Auburn facility ($0.40 per diluted share), the write-off of unamortized costs related to our previous debt issuance of $2.6 million, net of tax ($0.08 per diluted share), a capital gain of $3.6 million, net of tax, on the sale of our Condensa facility ($0.11 per diluted share) and $0.7 million of gain, net of tax, related to the sale of substantially all of the assets of CIOL ($0.02 per diluted share). Excluding these charges and credits, non-GAAP net income for the fourth quarter of fiscal 2007 was $12.2 million or $0.39 per diluted share.

Net sales for the third quarter of fiscal 2008 were $157.0 million and net income, on a GAAP basis, was $8.4 million ($0.35 per diluted share). Net income for the third quarter of fiscal 2008 included an after tax charge of $0.9 million related to litigation resulting from our internal stock option investigation ($0.04 per diluted share), after tax stock-related compensation expense of $2.0 million ($0.08 per diluted share) and restructuring expense of $1.4 million, net of tax ($0.06 per diluted share). Excluding these charges, non-GAAP net income for the third quarter of fiscal 2008 was $12.7 million or $0.53 per diluted share.

Orders received during the three months ended September 27, 2008 of $141.5 million decreased 13.6% from the same prior year period and decreased by 5.1% compared to orders received in the immediately preceding quarter. The book-to-bill ratio was 1.0, resulting in backlog of $183.5 million at September 27, 2008 compared to a backlog of $188.6 million at June 28, 2008 and a backlog of $188.4 million at September 29, 2007.

For the fiscal year ended September 27, 2008, Coherent posted net sales of $599.3 million and net income of $23.4 million ($0.83 per diluted share) compared to the prior year sales of $601.2 million and net income of $16.0 million ($0.50 per diluted share). Orders received for the fiscal year ended September 27, 2008 were $594.0 million, compared to $591.0 million in orders received for the fiscal year ended September 29, 2007.

'An unprecedented set of macroeconomic events led to a disappointing fourth quarter, especially within the microelectronics segment. While there will be ample debate over the timing of a market recovery, we have taken a number of actions to help Coherent weather and emerge from the current environment with a strong product portfolio, income statement and balance sheet. In particular, we continue to drive operational efficiency through our footprint strategy and recent workforce reductions, which are very prudent given uncertain market conditions. We are also pursuing market share gains through the introduction of highly differentiated products, such as the Chameleon(TM) Vision(TM). Launched in August 2008, the Vision(TM) delivers unrivaled performance for biological imaging in a compact, user friendly package,' said John Ambroseo, Coherent's President and CEO.

At September 27, 2008, Coherent's cash, cash equivalents and short term investments totaled $218.1 million, representing a decrease of $143.7 million compared to September 29, 2007. The decrease includes the use of approximately $228 million for the repurchase of Coherent common stock under the previously announced tender offer ended March 19, 2008.

'We remain fully committed to expanding EBITDA as evidenced by our recent announcement regarding the consolidation of our Munich facility into our Gottingen site.