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Exhibit 99.1

November 10, 2020

Press Release No. 1485

For Immediate Release:

Coherent, Inc. Reports Fourth Fiscal Quarter and Year-End Results

SANTA CLARA, CA, November 10, 2020 -- Coherent, Inc. (NASDAQ, COHR), one of the world’s leading providers of lasers, laser-based technologies and laser-based system solutions in a broad range of scientific, commercial and industrial applications, today announced financial results for its fourth fiscal quarter and fiscal year ended October 3, 2020.

FINANCIAL HIGHLIGHTS

Three Months EndedYear Ended

Oct. 3, 2020Jul. 4, 2020Sep. 28, 2019Oct. 3, 2020Sep. 28, 2019

GAAP Results

(in millions except per share data)

Net sales$316.8$298.3$335.5$1,229.0$1,430.6

Net income (loss)$7.7$(8.7)$0.6$(414.1)$53.8

Diluted EPS$0.32$(0.36)$0.03$(17.18)$2.22

Non-GAAP Results

(in millions except per share data)

Net income$24.5$12.6$21.4$72.6$143.8

Diluted EPS$1.01$0.52$0.89$3.00$5.92

FOURTH FISCAL QUARTER AND FISCAL YEAR DETAILS

For the fourth fiscal quarter ended October 3, 2020, Coherent announced net sales of $316.8 million and net income, on a U.S. generally accepted accounting principles (GAAP) basis, of $7.7 million, or $0.32 per diluted share.

These results compare to net sales of $335.5 million and net income of $0.6 million, or $0.03 per diluted share, for the fourth quarter of fiscal 2019, and net sales of $298.3 million and net loss of $8.7 million, or $0.36 per diluted share, for the third quarter of fiscal 2020.

Non-GAAP net income for the fourth quarter of fiscal 2020 was $24.5 million, or $1.01 per diluted share. Non-GAAP net income for the fourth quarter of fiscal 2019 was $21.4 million, or $0.89 per diluted share. Non-GAAP net income for the third quarter of fiscal 2020 was $12.6 million, or $0.52 per diluted share. Reconciliations of GAAP to non-GAAP financial measures for the three months ended October 3, 2020, July 4, 2020, and September 28, 2019 and for the fiscal years ended October 3, 2020 and September 28, 2019 appear in the financial statements portion of this release under the heading "Reconciliation of GAAP to Non-GAAP net income (loss)".

Exhibit 99.1

For the fiscal year ended October 3, 2020, Coherent posted net sales of $1,229.0 million and net loss on a GAAP basis of $414.1 million, or $17.18 per diluted share, compared to the prior year net sales of $1,430.6 million and net income on a GAAP basis of $53.8 million, or $2.22 per diluted share. The net loss for fiscal 2020 includes $424.3 million, net of tax, in non-cash goodwill and other impairment charges, primarily related to the impairment of all goodwill and certain long-lived assets in our Industrial Lasers & Systems segment in the second quarter. For the fiscal year ended October 3, 2020, Coherent posted net income on a non-GAAP basis of $72.6 million, or $3.00 per diluted share, compared to the prior year net income on a non-GAAP basis of $143.8 million, or $5.92 per diluted share.

Effective September 29, 2019, Coherent adopted ASC 842 - Lease Accounting and applied the new guidance to all leases existing as of the date of adoption. Coherent reported results for all quarters of fiscal 2020 that reflect the application of ASC 842, while prior period amounts have not been adjusted and continue to be reported in accordance with its historical lease accounting.

“Our Q4 financial results demonstrated early progress in our good to great transformation. We grew bookings and revenue from Q3, and with many of the university and research facilities re-opening, the Scientific and OEM instrumentation markets were the key drivers in the quarter. Our focus on operational excellence and maintaining a strong balance sheet manifested itself in improved sequential margins and strong growth in our fiscal year end cash balance,” said Andy Mattes, Coherent President and CEO. “I’ve now passed the six-month mark with the company and I continue to be energized by the number of opportunities in innovative markets like microelectronics, instrumentation, precision manufacturing, and aerospace & defense.”

CONFERENCE CALL REMINDER

Coherent will host a conference call today to discuss its financial results at 1:30 P.M. Pacific (4:30 P.M. Eastern). A listen-only broadcast of the conference call and a transcript of management's prepared remarks can be accessed on the investor relations page of the company's website at investors.coherent.com. For those who are not able to listen to the live broadcast, the call will be archived for approximately three months on the company's investor relations page.

Exhibit 99.1

Summarized statement of operations information is as follows (unaudited, in thousands, except per share data):

Three Months EndedYear Ended

Oct. 3, 2020Jul. 4, 2020Sep. 28, 2019Oct. 3, 2020Sep. 28, 2019

Net sales$316,751$298,330$335,464$1,228,999$1,430,640

Cost of sales(A)(B)(C)(D)(E)204,518203,053227,069818,125944,175

Gross profit112,23395,277108,395410,874486,465

Operating expenses:

Research & development(A)(B)(E)28,82128,28327,258115,578117,353

Selling, general & administrative(A)(B)(E)(F)73,08167,52570,551270,464272,257

Goodwill and other impairment charges(G)———451,025—

Amortization of intangible assets(C)6166432,0123,98713,760

Total operating expenses102,51896,45199,821841,054403,370

Income (loss) from operations9,715(1,174)8,574(430,180)83,095

Other income (expense), net(B)(E)436(4,282)(5,258)(12,543)(23,047)

Income (loss) before income taxes10,151(5,456)3,316(442,723)60,048

Provision (benefit) for income taxes(H)2,4623,2522,692(28,584)6,223

Net income (loss)$7,689$(8,708)$624$(414,139)$53,825

Net income (loss) per share:

Basic$0.32$(0.36)$0.03$(17.18)$2.23

Diluted$0.32$(0.36)$0.03$(17.18)$2.22

Shares used in computations:

Basic24,19324,15923,91924,10524,118

Diluted24,36024,15924,11824,10524,279

(A)Stock-based compensation expense included in operating results is summarized below (all footnote amounts are unaudited, in thousands, except per share data):

Stock-based compensation expenseThree Months EndedYear Ended

Oct. 3, 2020Jul. 4, 2020Sep. 28, 2019Oct. 3, 2020Sep. 28, 2019

Cost of sales$1,884$1,237$1,240$5,314$4,880

Research & development1,5541,4697634,4782,990

Selling, general & administrative10,27311,6807,92834,99528,596

Impact on income (loss)$13,711$14,386$9,931$44,787$36,466

For the fiscal quarters ended October 3, 2020, July 4, 2020, and September 28, 2019, the impact on net income (loss), net of tax was $11,485 ($0.47 per diluted share), $12,834 ($0.53 per diluted share), and $9,091 ($0.38 per diluted share), respectively. For the fiscal years ended October 3, 2020 and September 28, 2019, the impact on net income, net of tax was $39,147 ($1.61 per diluted share) and $31,520 ($1.30 per diluted share), respectively.

(B)Changes in deferred compensation plan liabilities are included in cost of sales and operating expenses while gains and losses on deferred compensation plan assets are included in other income (expense), net. Deferred compensation expense (benefit) included in operating results is summarized below:

Exhibit 99.1

Deferred compensation expense (benefit)Three Months EndedYear Ended

Oct. 3, 2020Jul. 4, 2020Sep. 28, 2019Oct. 3, 2020Sep. 28, 2019

Cost of sales$28$14$80$150$27

Research & development5047223460642

Selling, general & administrative3,6143531,8894,5901,419

Impact on income (loss)$4,146$439$2,203$5,346$1,488

For the fiscal quarters ended October 3, 2020, July 4, 2020, and September 28, 2019, the impact on other income net from gains or losses on deferred compensation plan assets was income of $4,735, $687, and $2,146, respectively. For the fiscal years ended October 3, 2020 and September 28, 2019, the impact on other income net from gain or losses on deferred compensation plan assets was income of $6,351 and $1,335, respectively.

(C)Amortization of intangibles is included in cost of sales and operating expenses as summarized below:

Amortization of intangiblesThree Months EndedYear Ended

Oct. 3, 2020Jul. 4, 2020Sep. 28, 2019Oct. 3, 2020Sep. 28, 2019

Cost of sales$2,346$2,30411,723$26,14147,700

Amortization of intangible assets6166432,0123,98713,760

Impact on income (loss)$2,962$2,947$13,735$30,128$61,460

For the fiscal quarters ended October 3, 2020, July 4, 2020, and September 28, 2019, the impact on net income (loss), net of tax was $2,138 net of tax ($0.09 per diluted share), $2,139 net of tax ($0.09 per diluted share), and $9,832 net of tax ($0.41 per diluted share), respectively. For the fiscal years ended October 3, 2020 and September 28, 2019, the impact on net income (loss), net of tax was $21,879 net of tax ($0.90 per diluted share) and $43,950 net of tax ($1.81 per diluted share), respectively.

(D)For the fiscal year ended September 28, 2019, the impact of inventory step-up costs related to acquisitions was $456 ($353 net of tax ($0.01 per diluted share)).

(E)For the fiscal quarters ended October 3, 2020, July 4, 2020, and September 28, 2019, the impact of restructuring charges, net of a gain on the sales leaseback of a facility in the quarter ended October 3, 2020, was $129 ($226 net of tax ($0.01 per diluted share)), $518 ($397 net of tax ($0.02 per diluted share)), and $92 ($131 net of tax ($0.00 per diluted share)), respectively. For the fiscal years ended October 3, 2020 and September 28, 2019, the impact of restructuring charges, net of a gain on the sales leaseback of a facility in the fiscal year ended October 3, 2020, was $2,659 ($2,087 net of tax ($0.09 per diluted share)) and $22,721 ($16,021 net of tax ($0.66 per diluted share)), respectively.

(F)For the fiscal quarter ended July 4, 2020 and for the fiscal year ended October 3, 2020, selling, general & administrative expense includes an accelerated compensation charge for our former CEO of $941 ($732 net of tax ($0.03 per diluted share)). For the fiscal years ended October 3, 2020 and September 28, 2019, selling, general & administrative expense includes a legal settlement related to an asset recovery of $1,365 ($1,106 net of tax ($0.05 per diluted share)) and $1,337 ($1,083 net of tax ($0.04 per diluted share)), respectively.

(G)For the fiscal year ended October 3, 2020, goodwill and other impairment charges included a $327,203 ($327,203 net of tax ($13.60 per diluted share)) charge for impairment of goodwill, a $121,350 ($94,651 net of tax ($3.90 per diluted share)) charge for impairment of long-lived assets, and a $2,472 ($2,472 net of tax ($0.10 per diluted share)) charge for impairment of an investment.

(H)The fiscal quarters ended October 3, 2020, July 4, 2020, and September 28, 2019 included a non-recurring income tax charge of $2,817 ($0.12 per diluted share), $5,261 ($0.21 per diluted share) and $1,720 ($0.07 per diluted share), respectively. The fiscal years ended October 3, 2020 and September 28, 2019 included non-recurring income tax net expense of $615 ($0.03 per diluted share) and $1,720 ($0.06 per diluted share), respectively. The fiscal quarters ended October 3, 2020, July 4, 2020, and September 28, 2019 included a charge of $149 ($0.00 per diluted share), a benefit of $51 ($0.00 per diluted share), and a benefit of $36 ($0.00 per diluted share) of excess tax charges (benefits) for employee stock-based compensation, respectively. The fiscal years ended October 3, 2020 and September 28, 2019 included $930

Exhibit 99.1

($0.04 per diluted share) and $2,507 ($0.10 per diluted share) of excess tax benefits for employee stock-based compensation, respectively.

Summarized balance sheet information is as follows (unaudited, in thousands):

Oct. 3, 2020Sep. 28, 2019

ASSETS

Current assets:

Cash, cash equivalents, restricted cash and short-term investments$476,369$306,745

Accounts receivable, net220,289267,553

Inventories426,756442,530

Prepaid expenses and other assets88,25077,993

Total current assets1,211,6641,094,821

Property and equipment, net245,678323,434

Other assets370,154664,914

Total assets$1,827,496$2,083,169

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Short-term borrowings$16,817$14,863

Accounts payable60,22551,531

Other current liabilities191,016173,920

Total current liabilities268,058240,314

Other long-term liabilities632,214558,119

Total stockholders’ equity927,2241,284,736

Total liabilities and stockholders’ equity$1,827,496$2,083,169

Reconciliation of GAAP to Non-GAAP net income (unaudited, in thousands, (other than per share data), net of tax):

Three Months EndedYear Ended

Oct. 3, 2020Jul. 4, 2020Sep. 28, 2019Oct. 3, 2020Sep. 28, 2019

GAAP net income (loss)$7,689$(8,708)$624$(414,139)$53,825

Stock-based compensation expense11,48512,8349,09139,14731,520

Amortization of intangible assets2,1382,1399,83221,87943,950

Restructuring charges and other2261,1291312,81916,021

Non-recurring tax expense (benefit)2,8175,2611,7206151,720

Tax charge (benefit) from stock-based compensation expense149(51)(36)(930)(2,507)

Goodwill and other impairment/asset charges (recoveries)———423,220(1,083)

Purchase accounting step-up————353

Non-GAAP net income$24,504$12,604$21,362$72,611$143,799

Non-GAAP net income per diluted share$1.01$0.52$0.89$3.00$5.92

Exhibit 99.1

RISKS AND UNCERTAINTIES

This press release contains forward-looking statements, as defined under the Federal securities laws. These forward-looking statements include the statement in this press release that relates to confidence in the number of the Company’s opportunities in various markets. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement. Coherent and its business, including the aforementioned forward-looking statements, are subject to risks and uncertainties, including, but not limited to, risks associated with the recovery of global and regional economies from the negative effects of the COVID-19 pandemic and related private and public sector measures; the impact of COVID-19 related matters on our business; global demand, acceptance and adoption of our products; the worldwide demand for flat panel displays and adoption of OLED for mobile displays; the pricing and availability of OLED displays; the demand for and use of our products in commercial applications; our ability to generate sufficient cash to fund capital spending or debt repayment; our successful implementation of our customer design wins; our and our customers’ exposure to risks associated with worldwide economic conditions; our customers’ ability to cancel long-term purchase orders; the ability of our customers to forecast their own end markets; our ability to accurately forecast future periods; continued timely availability of products and materials from our suppliers; our ability to timely ship our products and our customers’ ability to accept such shipments; our ability to have our customers qualify our products; worldwide government economic policies, including trade relations between the United States and China; our ability to manage our expanded operations; our ability to successfully transfer the manufacturing of our High Power Fiber Lasers and related business and operations between facilities; our ability to successfully manage our planned site consolidation projects and other cost reduction programs and to achieve the related anticipated savings and improved operational efficiencies; and other risks identified in Coherent’s SEC filings. Readers are encouraged to refer to the risk disclosures and critical accounting policies described in Coherent’s Forms 10-K, 10-Q and 8-K, including the risks identified in today's financial press release, as applicable and as filed from time-to-time.

Founded in 1966, Coherent, Inc. is one of the world’s leading providers of lasers, laser-based technologies and laser-based system solutions in a broad range of scientific, commercial and industrial customers. Our common stock is listed on the Nasdaq Global Select Market and is part of the Russell 1000 and Standard & Poor’s MidCap 400 Index. For more information about Coherent, visit the company's website at www.coherent.com for product and financial updates.

5100 Patrick Henry Dr..P. O. Box 54980, Santa Clara, California95056–0980.Telephone (408) 764-4000