Shifting Product Mix Cuts Coherent Earnings

SANTA CLARA, Calif., Oct. 31 -- Coherent Inc. said that earnings fell during its fourth fiscal quarter as the company's product mix shifted away from higher value telecom products and currency conversions worked against the company.

The company said that it booked pro forma income of $5.7 million, or 20 cents per share, excluding a charge of $5.8 million or 20 cents per share. That's down from income a year earlier of $9.5 million, or 33 cents per share, excluding a gain of $33.6 million.

Coherent said it plans to take a charge in the first fiscal quarter of 2002 of $1 million to $1.5 million to cover a restructuring that includes a work force reduction during the fourth quarter of 4 percent and of 3 percent, that was complete on Tuesday. Coherent said it expects sales to fall 10 percent to 15 percent from the fourth quarter. In the fourth quarter, it booked sales of $115 million, up from $108 million in the previous period.