10-KPeriod: FY2011

COHERENT CORP. Annual Report, Year Ended Jun 30, 2011

Filed August 26, 2011For Securities:COHR

Summary

II-VI Incorporated (now Coherent Corp.) demonstrated robust growth in fiscal year 2011, with revenues increasing by 46% to $502.8 million, 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 million, 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.

Financial Highlights

50 data points
Beta

Revenue

$502.80M

41.1% Gross Margin

Net Income

$82.68M

16.4% Net Margin

EPS (Diluted)

$1.30

Total Assets

$647.20M

Cash & Equivalents

$149.46M

Free Cash Flow

$32.63M

Financial Statements
Beta
Revenue$502.80M
Cost of Revenue$295.90M
Gross Profit$206.90M
R&D Expenses$16.08M
SG&A Expenses$92.05M
Operating Expenses$401.04M
Operating Income$82.68M
Interest Expense$103K
Net Income$82.68M
EPS (Basic)$1.33
EPS (Diluted)$1.30
Shares Outstanding (Basic)62.21M
Shares Outstanding (Diluted)63.61M

Key Highlights

  • 1Revenues surged by 46% to $502.8 million in fiscal year 2011, indicating strong market demand and successful business integration.
  • 2Net earnings attributable to II-VI Incorporated more than doubled, increasing by 114% to $82.7 million.
  • 3Diluted earnings per share improved significantly to $1.30, a 106% increase from the prior year.
  • 4The 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.
  • 5Bookings increased by 34% to $520.2 million, reflecting positive customer engagement and future revenue potential.
  • 6Acquisition of Aegis Lightwave shortly after fiscal year-end signals continued growth strategy, particularly in telecommunications.
  • 7Investments in manufacturing capacity are planned to support anticipated future demand and capitalize on economic recovery.

Frequently Asked Questions

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.

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.

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.