01—Abstract
Summary
Summary of the 10-K filed August 28, 2009. Cited figures are marked; the original filing is the authoritative source.
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.
02—Key points
Key Highlights
- Fiscal year 2009 was significantly impacted by the global economic downturn, leading to reduced bookings and revenues across most business segments.
- The company divested its x-ray and gamma-ray radiation sensor business, eV PRODUCTS, Inc., in June 2009, classifying it as a discontinued operation.
- Military and defense orders provided a partial offset to the decline in industrial demand, with increased bookings noted in several segments.
- Bookings decreased by 24% and revenues by 8% in FY2009 compared to FY2008.
- Net 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.
- The company continues to focus on vertical integration, strategic acquisitions, and operational excellence as key components of its growth strategy.
- II-VI anticipates fiscal year 2010 will remain challenging due to ongoing economic sluggishness, with plans to manage costs and capital expenditures accordingly.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2009, Coherent Corp. kept $0.13.
- Revenue$292.2M100.0%
- Cost of revenue−$168.6M57.7%
- Gross profit$123.6M42.3%
- Operating costs−$84.7M29.0%
- Operating income$38.9M13.3%
- Interest, other & tax−$2.1M0.7%
- Net income$36.8M12.6%
Where FY2009 revenue went
$292.2M- Cost of revenue: $168.6M, 58% of revenue
- SG&A: $58.1M, 20% of revenue
- Net income: $36.8M, 13% of revenue
- R&D: $10.2M, 3.5% of revenue
- Other operating costs: $16.5M, 5.6% of revenue
- Interest, other & tax: $2.1M, 0.7% of revenue
Kept 13% as net incomeInterest, other & tax $2.1M · 0.7%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2009filed August 28, 2009Financial Statements
| 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 |
05—Questions
Frequently Asked Questions
How did the global economic downturn affect II-VI Incorporated in fiscal year 2009?
The global economic downturn severely impacted II-VI Incorporated's core markets, leading to a significant decrease in bookings and revenues across most business segments. This resulted in a substantial decline in net earnings from continuing operations compared to the prior fiscal year.
What strategic actions did II-VI take in response to the economic challenges?
In response to the economic challenges, II-VI focused on reducing its operating cost structure, optimizing capital expenditures, and repositioning its working capital. The company also continued its strategy of vertical integration and pursued strategic acquisitions to strengthen its market position.
What is the outlook for II-VI Incorporated in fiscal year 2010?
II-VI anticipates that fiscal year 2010 will continue to be challenging, with sluggish global economies and modest growth expected in industrial markets. The company is planning for further demand reduction in specific product lines like UV Filters while expecting continued growth in military and defense segments. Consequently, the company is planning for reduced capital expenditures and discretionary spending.
Did the company make any significant divestitures during fiscal year 2009?
Yes, in June 2009, II-VI Incorporated sold its x-ray and gamma-ray radiation sensor business, eV PRODUCTS, Inc. This business was previously reported in the Compound Semiconductor Group segment and is now presented as a discontinued operation for all periods.
06—Continue