01—Abstract
Summary
Summary of the 10-K filed August 26, 2011. Cited figures are marked; the original filing is the authoritative source.
II-VI Incorporated (now Coherent Corp.) demonstrated robust growth in fiscal year 2011, with revenues increasing by 46% to $502.8 milliona, driven by strong demand across its key segments and successful integration of acquisitions, notably Photop Technologies.
The company saw a significant increase in net earnings, up 114% to $82.7 millionb, and a corresponding rise in diluted EPS to $1.30. This performance reflects a rebound in global economic conditions and increased customer demand for laser systems and advanced materials. The company strategically expanded its capabilities through acquisitions, including Photop and Max Levy Autograph (MLA), and made a significant acquisition of Aegis Lightwave shortly after the fiscal year-end.
II-VI Incorporated is investing in manufacturing capacity to support anticipated continued strengthening of global economies in fiscal year 2012. The company's diversified business model, spanning infrared optics, near-infrared optics, military and materials, and compound semiconductors, positions it well to capitalize on growth opportunities in various high-technology markets.
02—Key points
Key Highlights
- Revenues surged by 46% to $502.8 million in fiscal year 2011, indicating strong market demand and successful business integration.
- Net earnings attributable to II-VI Incorporated more than doubled, increasing by 114% to $82.7 million.
- Diluted earnings per share improved significantly to $1.30, a 106% increase from the prior year.
- The company completed strategic acquisitions of Photop Technologies (completed January 2010, results included for the full fiscal year 2011) and Max Levy Autograph (completed December 2010), bolstering its product offerings and market reach.
- Bookings increased by 34% to $520.2 million, reflecting positive customer engagement and future revenue potential.
- Acquisition of Aegis Lightwave shortly after fiscal year-end signals continued growth strategy, particularly in telecommunications.
- Investments in manufacturing capacity are planned to support anticipated future demand and capitalize on economic recovery.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2011, Coherent Corp. kept $0.16.
- Revenue$502.8M100.0%
- Cost of revenue−$295.9M58.9%
- Gross profit$206.9M41.1%
- Operating costs−$124.2M24.7%
- Operating income$82.7M16.4%
- Interest, other & tax$-00.0%
- Net income$82.7M16.4%
Where FY2011 revenue went
$502.8M- Cost of revenue: $295.9M, 59% of revenue
- SG&A: $92.0M, 18% of revenue
- Net income: $82.7M, 16% of revenue
- R&D: $16.1M, 3.2% of revenue
- Other operating costs: $16.1M, 3.2% of revenue
Kept 16% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2011filed August 26, 2011Financial Statements
FY2011 against FY2010
| Line item | FY2011FY2010 | Change |
|---|---|---|
| Revenue | $502.80M$345.09M | +45.7% |
| Cost of Revenue | $295.90M$210.49M | +40.6% |
| Gross Profit | $206.90M$134.60M | +53.7% |
| R&D Expenses | $16.08M$11.81M | +36.2% |
| SG&A Expenses | $92.05M$71.11M | +29.4% |
| Operating Expenses | $401.04M$293.77M | +36.5% |
| Operating Income | $82.68M$38.58M | +114.3% |
| Interest Expense | $103K$87K | +18.4% |
| Net Income | $82.68M$38.58M | +114.3% |
| EPS (Basic) | $1.33$0.64 | +107.8% |
| EPS (Diluted) | $1.30$0.63 | +106.3% |
| Shares Outstanding (Basic) | 62.21M60.30M | +3.2% |
| Shares Outstanding (Diluted) | 63.61M61.50M | +3.4% |
05—Questions
Frequently Asked Questions
What were the main drivers of II-VI Incorporated's financial performance in fiscal year 2011?
The primary drivers for II-VI Incorporated's strong financial performance in fiscal year 2011 were the rebound in global economic conditions, leading to increased customer demand, particularly in industrial laser applications. The successful integration of the Photop Technologies acquisition contributed significantly to revenue and earnings growth. Strategic acquisitions like Max Levy Autograph also played a role in expanding the company's capabilities.
How did recent acquisitions impact the company's results?
The acquisition of Photop Technologies, completed in January 2010, contributed positively to both revenue and earnings for the full fiscal year 2011. The acquisition of Max Levy Autograph (MLA), completed in December 2010, was included in the results for fiscal year 2011 and its operating results were reported as insignificant, but it expanded the company's product offerings within the Military & Materials segment. These acquisitions align with the company's strategy to enhance its market position and expand its technological capabilities.
What is the company's outlook and strategy for fiscal year 2012?
II-VI Incorporated anticipated building on its fiscal year 2011 momentum into fiscal year 2012. The strategy included expanding manufacturing capacity through capital expenditures to meet anticipated further strengthening of worldwide economies and capitalizing on opportunities in telecommunication markets with the recent acquisition of Aegis Lightwave.
06—Continue