Summary
II-VI Incorporated (now Coherent Corp.) reported fiscal year 2012 revenues of $534.6 million, a 6.3% increase over the prior year. However, net earnings attributable to the company decreased to $60.3 million, or $0.94 per diluted share, compared to $82.7 million, or $1.30 per diluted share, in fiscal year 2011. This decline was primarily due to an $8.3 million after-tax write-down of tellurium and selenium inventory stemming from weak photovoltaic market demand and lower demand for selenium. The company also faced challenges integrating the recently acquired Aegis Lightwave, Inc., which was impacted by flooding in Thailand. Despite these headwinds, II-VI saw positive booking trends in its Infrared Optics and Near-Infrared Optics segments. The company continues to invest in research and development for optical communication markets and is strategically expanding its manufacturing capabilities globally. Key risks highlighted include dependence on international sales, commodity price volatility, cyclical industries, and potential defense spending cuts.
Financial Highlights
52 data points| Revenue | $516.40M |
| Cost of Revenue | $315.06M |
| Gross Profit | $201.35M |
| R&D Expenses | $21.41M |
| SG&A Expenses | $98.42M |
| Operating Expenses | $427.93M |
| Operating Income | $81.52M |
| Interest Expense | $212K |
| Net Income | $60.31M |
| EPS (Basic) | $0.96 |
| EPS (Diluted) | $0.94 |
| Shares Outstanding (Basic) | 62.82M |
| Shares Outstanding (Diluted) | 64.39M |
Key Highlights
- 1For the fiscal year ended June 30, 2012, II-VI Incorporated reported revenues of $534.6 million, up 6.3% from $502.8 million in the prior fiscal year.
- 2Net earnings attributable to II-VI Incorporated decreased to $60.3 million ($0.94 per diluted share) from $82.7 million ($1.30 per diluted share) in fiscal year 2011.
- 3A significant factor in the earnings decline was an $8.3 million inventory write-down of tellurium and selenium due to market demand shifts.
- 4The company acquired Aegis Lightwave, Inc. in July 2011, which contributed to increased bookings but also faced operational challenges due to flooding.
- 5Bookings increased by 2.8% to $534.9 million, driven by positive trends in the Infrared Optics and Near-Infrared Optics segments.
- 6The company continued to invest in R&D, particularly in the optical communications market, with R&D expenses increasing to $21.4 million from $16.1 million in the prior year.
- 7International sales represented approximately 60% of revenues, highlighting the company's global operational footprint and associated risks.