10-KPeriod: FY2010

COHERENT CORP. Annual Report, Year Ended Jun 30, 2010

Filed August 27, 2010For Securities:COHR

Summary

II-VI Incorporated's 2010 Form 10-K report highlights a strong recovery and growth trajectory following the global economic downturn. The company experienced a significant increase in bookings and revenues, driven by improved demand across its key markets, including industrial, military, and telecommunications. The acquisition of Photop Technologies, Inc. in January 2010 played a crucial role in this growth, contributing positively to both top-line and bottom-line results and expanding the company's capabilities in crystal materials and optics. The company's strategy emphasizes vertical integration, investment in manufacturing, customer service, and strategic acquisitions. II-VI Incorporated operates globally with manufacturing facilities and sales offices in key regions, and a substantial portion of its revenue is derived from international sales. Despite facing challenges such as economic uncertainties and competition, the company appears well-positioned to capitalize on market trends and continue its expansion in fiscal year 2011.

Financial Highlights

50 data points
Beta

Revenue

$345.09M

39.0% Gross Margin

Net Income

$38.58M

11.2% Net Margin

EPS (Diluted)

$0.63

Total Assets

$508.98M

Cash & Equivalents

$108.03M

Free Cash Flow

$58.58M

Financial Statements
Beta
Revenue$345.09M
Cost of Revenue$210.49M
Gross Profit$134.60M
R&D Expenses$11.81M
SG&A Expenses$71.11M
Operating Expenses$293.77M
Operating Income$38.58M
Interest Expense$87K
Net Income$38.58M
EPS (Basic)$0.64
EPS (Diluted)$0.63
Shares Outstanding (Basic)60.30M
Shares Outstanding (Diluted)61.50M

Key Highlights

  • 1Significant increase in bookings and revenues in fiscal year 2010, indicating a recovery from the previous year and growing market demand.
  • 2Successful acquisition of Photop Technologies, Inc. in January 2010, which contributed positively to financial results and expanded the company's product portfolio and market reach.
  • 3Strengthening demand in key segments like Infrared Optics and Military & Materials, driven by increased industrial activity and military program involvement.
  • 4Diversified business segments including Infrared Optics, Near-Infrared Optics, Military & Materials, and Compound Semiconductor Group, providing resilience and broad market coverage.
  • 5Global operational footprint with manufacturing and sales operations in North America, Europe, and Asia, supporting international revenue growth (49% of total revenue in FY2010).
  • 6Company's strategic focus on vertical integration, investment in manufacturing, and pursuing strategic acquisitions to enhance competitive position and drive growth.
  • 7A substantial backlog of $157 million as of June 30, 2010, providing visibility into future revenue streams.

Frequently Asked Questions

In fiscal year 2010, II-VI Incorporated demonstrated strong financial recovery. Bookings increased by 48% to $387.6 million, and revenues grew by 18% to $345.1 million, compared to fiscal year 2009. Net earnings attributable to II-VI Incorporated rose by 5% to $38.6 million, translating to diluted earnings per share of $1.25. This improvement was driven by increased demand across various markets and the significant contribution from the acquisition of Photop Technologies.

The acquisition of Photop Technologies, Inc. in January 2010 was a key driver of II-VI's growth in fiscal year 2010. Photop contributed approximately $46.9 million in revenues and $30.4 million in goodwill to the company's financials. The acquisition expanded II-VI's capabilities in crystal materials and optics, particularly within the Near-Infrared Optics segment, and is expected to yield further synergies and financial benefits.

The company faces several risks, including the impact of general economic conditions on demand for its products, reliance on international sales and global operations which are subject to currency fluctuations and geopolitical risks, competition from larger companies, dependence on complex manufacturing processes and limited supply sources for certain materials, potential volatility in commodity prices, and risks associated with strategic acquisitions. Exposure to government markets, where contracts can be subject to funding changes, is also a noted risk.

II-VI Incorporated's strategy focuses on building businesses with world-class, high-technology materials capabilities. Key strategies include vertical integration, continued investment in manufacturing operations, enhancing its reputation for quality and customer service, identifying new products and markets, strategically utilizing Asian manufacturing operations, pursuing strategic acquisitions and alliances, actively engaging in military programs, and maintaining a balanced approach to research and development. The company aims to capitalize on market growth and operational excellence.