Coherent Corp Stock Price, News & Analysis

Lumentum Holdings Inc. received notice from Coherent, Inc. regarding an unsolicited acquisition proposal from II-VI Incorporated, which Coherent's Board deemed a "Company Superior Proposal" under its existing merger agreement with Lumentum. Coherent intends to terminate the merger agreement, requiring a $217.6 million termination fee if it proceeds with II-VI. Lumentum will review the proposal, having four business days to respond. Despite this, Lumentum's Board continues to recommend the merger with Coherent to its stockholders.

Lumentum Holdings has issued a statement regarding MKS Instruments' unsolicited acquisition proposal for Coherent, asserting that the proposal is misleading and fraught with regulatory risks. Lumentum emphasizes that its agreed merger with Coherent provides a more secure path to completion, promising to tackle antitrust regulations effectively. MKS's proposal lacks necessary commitments to mitigate significant overlaps, which could lead to value loss for Coherent shareholders. The definitive agreement between Lumentum and Coherent includes a $100.00 cash payment and 1.1851 Lumentum shares per Coherent share, anticipated to finalize in the latter half of 2021.

Coherent, Inc. (NASDAQ: COHR) reported Q1 fiscal 2021 financial results with net sales of $326.1 million and a GAAP net income of $0.1 million ($0.01 per diluted share), down significantly from $5.8 million a year ago. Non-GAAP net income was $26.7 million ($1.09 per diluted share), an increase from $20.7 million last year. Although net sales slightly grew from $316.8 million in Q4 2020, the year-over-year GAAP income decline raises concerns. Strong bookings and improved margins were noted, particularly in microelectronics and aerospace sectors.

Coherent, Inc. (NASDAQ: COHR) announced it received an unsolicited acquisition proposal from MKS Instruments, Inc. (NASDAQ: MKSI) offering $115 in cash and 0.7473 of an MKS share per Coherent share. This proposal is subject to closing conditions such as antitrust approvals. On January 19, Coherent entered a merger agreement with Lumentum Holdings Inc. (NASDAQ: LITE), offering $100 in cash and 1.1851 Lumentum shares per Coherent share. Coherent's board is evaluating the MKS proposal, recognizing it could be superior to Lumentum's offer but continues to recommend the Lumentum merger to shareholders.

Coherent (NASDAQ: COHR) announced its preliminary financial results for the fiscal first quarter ended January 2, 2021. The company reported revenue between $325 million and $327 million, with a GAAP gross profit of $119 million to $120.5 million, and a GAAP operating income ranging from $16.4 million to $17.6 million. Non-GAAP figures showed a gross profit of $128.1 million to $130 million and an operating income between $36.1 million and $37.9 million. Investors are advised to approach these preliminary estimates with caution.

Lumentum Holdings and Coherent have signed a definitive agreement for Lumentum to acquire Coherent in a cash and stock deal valued at $5.7 billion. Each Coherent shareholder will receive $100.00 in cash plus 1.1851 shares of Lumentum stock. Upon closing, Coherent shareholders will own 27% of the combined entity. This merger aims to enhance Lumentum's presence in the photonics market, estimated at over $10 billion, by merging operations and R&D capabilities across multiple industries, including telecommunications and aerospace.

Lumentum Holdings is set to acquire Coherent for $5.7 billion, offering Coherent shareholders $100 in cash and 1.1851 shares of Lumentum stock per share. This merger is expected to enhance Lumentum's market presence in the photonics industry, uniting capabilities in lasers, microelectronics, and aerospace sectors. The combined entity will target a $10 billion market outside traditional segments and is projected to generate over $150 million in synergies within 24 months, benefiting shareholders with accretive earnings in the first year post-merger.

Coherent, Inc. (COHR) reported its financial results for Q4 FY2020, with net sales of $316.8 million and a net income of $7.7 million or $0.32 per diluted share. This marks a decline from $335.5 million in net sales in Q4 FY2019. For the fiscal year, net sales totaled $1,229.0 million, down from $1,430.6 million, resulting in a significant GAAP net loss of $414.1 million. Non-GAAP net income for FY2020 was $72.6 million, or $3.00 per diluted share, highlighting a decrease from $143.8 million in the previous year.

Coherent (Nasdaq: COHR) has launched Amplify, a virtual conference series aimed at providing educational and networking opportunities in photonics technology. The inaugural event, scheduled for December 10, 2020, will focus on neuroscience and cell biology, featuring a keynote by Nobel laureate Eric Betzig. These half-day events will include presentations, discussions, and networking opportunities for researchers and industry professionals. Coherent emphasizes the importance of collaboration in scientific research and technology development, aiming to recreate the informal networking atmosphere of traditional conferences.