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Coherent Sets Future Financial Target
Date:9/27/2007

SANTA CLARA, Calif., Sept. 27 /PRNewswire-FirstCall/ -- Coherent, Inc. (Nasdaq: COHR), a leading supplier of lasers and electro-optics for commercial and scientific applications, announced an adjusted EBITDA target of 19-23% of sales exiting fiscal year 2010.

The Company intends to achieve the target through a variety of activities including material cost reductions, expanded use of contract manufacturers, SG&A leverage, the introduction of more flexible and cost-effective platform designs and continued yield and reliability improvements. Implementation of these changes is staged in such a way as to minimize any impact on customers' supply chains.

"For the past several years, we have focused our energies on expanding gross margins. While we believe there are further opportunities to increase gross margins, we are broadening our efforts to incorporate SG&A leverage into the next round of financial performance improvements," said John Ambroseo, Coherent's President and Chief Executive Officer. "The completion of this program will enable us to deliver higher returns to our shareholders. Just as importantly, many of the changes will enhance the value we deliver to our customers including faster time to market, industry-leading product reliability and performance and platforms that can evolve with the customers' applications," Ambroseo added.

The Company also announced that it is reviewing several options to deploy its cash to continue to grow sustainable shareholder value. Among the choices under consideration are accretive acquisitions and a share repurchase program, the timing of the latter being dependent in part upon the Company being current in its Securities and Exchange Commission reporting obliga
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SOURCE Coherent, Inc.
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