Coherent Inc. reported unaudited earnings results for the fourth quarter and full year ended October 1, 2016. For the quarter, the company's net sales were $248,461,000 compared to $209,622,000 a year ago. Income from operations was $48,039,000 compared to $35,612,000 a year ago. Income before income taxes was $44,471,000 compared to $33,736,000 a year ago. Net income was $30,785,000 compared to $27,302,000 a year ago. Diluted net income per share was $1.25 compared to $1.10 a year ago. Non-GAAP net income was $40,473,000 compared to $31,248,000 a year ago. Non-GAAP net income per diluted share was $1.65 compared to $1.25 a year ago.

For the year, the company's net sales were $857,385,000 compared to $802,460,000 a year ago. Income from operations was $127,614,000 compared to $100,747,000 a year ago. Income before income taxes was $122,896,000 compared to $99,568,000 a year ago. Net income was $87,502,000 compared to $76,409,000 a year ago. Diluted net income per share was $3.58 compared to $3.06 a year ago. Non-GAAP net income was $115,886,000 compared to $97,111,000 a year ago. Non-GAAP net income per diluted share was $4.75 compared to $3.89 a year ago.

The company provided earnings guidance for the first quarter of fiscal 2017 and tax rate guidance for the full fiscal year of 2017. The outlook for the first fiscal quarter of 2017 as a combined company. The outlook excludes Rofin-Sinar's revenues and expenses for the period of October 1 to November 7, 2016, commonly called the stub period, prior to close. This is an important point since we'll yield approximately 55% of a full quarter's revenue and expense. The outlook also excludes revenues and expenses related to the whole operation that the company is holding separate for divestiture. Revenue for fiscal first quarter is expected to be in the range of $305 million to $320 million. The company expects fiscal first quarter non-GAAP gross margin to be in the range of 44% to 47%. Non-GAAP gross margin excludes expected intangibles amortization of $1.4 million and stock compensation expense estimated at 600k. Non-GAAP operating margin for fiscal first quarter is expected to be in the range of 20.5% to 23.5%. This excludes intangibles amortization, estimated at a total of $2.1 million and stock compensation expense of a total of approximately $6.4 million. And finally, it also excludes advisory and legal fees of approximately $10 million to $15 million for the combined company. The company expects its non-GAAP tax rate for fiscal first quarter 2017 to be approximately 31%.

The company is expecting its tax rate for the full fiscal year of 2017 as 31%.