Summary
II-VI Incorporated's 2009 Form 10-K report highlights a challenging fiscal year marked by the global economic downturn, which significantly impacted its core markets, including industrial material processing. In response, the company focused on cost reduction and capital expenditure optimization to navigate the economic headwinds and position itself for recovery. The company's performance in fiscal year 2009 saw a notable decrease in bookings and revenues compared to the previous year, primarily attributed to reduced demand in industrial sectors. While military and defense orders provided some offset, the overall economic climate led to a decline in earnings. The report also details the sale of its eV PRODUCTS business and ongoing strategic initiatives, including vertical integration and targeted acquisitions, to strengthen its market position. Looking ahead, II-VI anticipates fiscal year 2010 will remain challenging with continued sluggishness in global economies. The company is planning for further demand reduction in specific product lines, such as UV Filters, while expecting continued expansion in military and defense-related segments.
Financial Highlights
32 data points| Revenue | $292.22M |
| Cost of Revenue | $168.62M |
| Gross Profit | $123.61M |
| R&D Expenses | $10.21M |
| SG&A Expenses | $58.07M |
| Operating Expenses | $245.90M |
| Operating Income | $38.86M |
| Interest Expense | $178K |
| Net Income | $36.78M |
| EPS (Basic) | $0.62 |
| EPS (Diluted) | $0.61 |
| Shares Outstanding (Basic) | 59K |
| Shares Outstanding (Diluted) | 60K |
Key Highlights
- 1Fiscal year 2009 was significantly impacted by the global economic downturn, leading to reduced bookings and revenues across most business segments.
- 2The company divested its x-ray and gamma-ray radiation sensor business, eV PRODUCTS, Inc., in June 2009, classifying it as a discontinued operation.
- 3Military and defense orders provided a partial offset to the decline in industrial demand, with increased bookings noted in several segments.
- 4Bookings decreased by 24% and revenues by 8% in FY2009 compared to FY2008.
- 5Net earnings from continuing operations saw a substantial decrease of 41% in FY2009 compared to FY2008, primarily due to lower sales volumes and a one-time gain on investment sale in the prior year.
- 6The company continues to focus on vertical integration, strategic acquisitions, and operational excellence as key components of its growth strategy.
- 7II-VI anticipates fiscal year 2010 will remain challenging due to ongoing economic sluggishness, with plans to manage costs and capital expenditures accordingly.