Coherent Inc. announced unaudited financial results for the second quarter and six months ended April 2, 2016. For the quarter, the company reported net sales of $199,882,000 against $203,721,000 a year ago. Income from operations was $26,004,000 against $22,132,000 a year ago. Income before income taxes was $24,224,000 against $24,122,000 a year ago. Net income was $17,781,000 or $0.73 per diluted share against $18,413,000 or $0.74 per diluted share a year ago. Non-gaap net income was $25,343,000 or $1.04 per diluted share against $23,432,000 or $0.94 per diluted share a year ago. Non-GAAP EBITDA was 20.9%. Operating cash flow for the quarter was approximately $31 million, primarily driven by increases in working capital. Capital spending for the quarter was $11.5 million or 5% - 5.7% of sales.

For the six months, the company reported net sales of $390,157,000 against $404,336,000 a year ago. Income from operations was $53,287,000 against $46,441,000 a year ago. Income before income taxes was $51,285,000 against $47,746,000 a year ago. Net income was $38,067,000 or $1.57 per diluted share against $35,843,000 or $1.43 per diluted share a year ago. Non-gaap net income was $49,250,000 or $2.03 per diluted share against $45,311,000 or $1.8194 per diluted share a year ago.

The company expect third quarter fiscal 2016 revenue to be in the range of $205 million to $215 million. Non-GAAP operating margin for the third quarter is expected to be in the range of 15% to 18%. The company expects the third quarter non-GAAP gross margin to be in the range of 42.5% to 44.5%, a temporary decrease from this quarter's results, mainly due to manufacturing efficiencies related to the ramp up of flat panel displays. Non-GAAP gross margin excludes intangibles amortization of $1.3 million.

The outlook for semi capex spending is flat to slightly up in 2016. The company expects non-GAAP tax rate to be in the range of 27% to 28% for the fiscal year.

The company expects 2017 revenue to be in the range of $950 million to $1 billion, excluding the Rofin transaction.