Summary
This 10-K filing for II-VI Incorporated (now Coherent Corp.) for the fiscal year ended June 30, 2021, highlights a pivotal year marked by significant revenue growth and strategic advancements, most notably the pending acquisition of Coherent, Inc. The company reported a substantial 30% increase in revenue to $3.1 billion, driven by strong performance across all key end markets, including communications, consumer electronics, and life sciences. This growth was bolstered by the full year's contribution from the Finisar acquisition and continued demand for advanced optical and semiconductor solutions. The most impactful development is the announced acquisition of Coherent, Inc., a move expected to significantly expand II-VI's product portfolio and market reach, particularly in laser technology. This transformative deal, financed through a combination of debt and equity, was progressing through regulatory approvals with an anticipated closing by early 2022. The company also secured significant financing commitments and an equity investment from Bain Capital to support the acquisition. Despite the strategic focus on this acquisition and ongoing global economic uncertainties, II-VI demonstrated robust operational performance and a strong commitment to research and development, positioning itself for continued growth.
Financial Highlights
50 data points| Revenue | $3.11B |
| Cost of Revenue | $1.93B |
| Gross Profit | $1.18B |
| R&D Expenses | $330.11M |
| SG&A Expenses | $445.24M |
| Operating Expenses | $2.75B |
| Operating Income | $402.12M |
| Interest Expense | $59.90M |
| Net Income | $297.55M |
| EPS (Basic) | $2.50 |
| EPS (Diluted) | $2.37 |
| Shares Outstanding (Basic) | 104.15M |
| Shares Outstanding (Diluted) | 115.03M |
Key Highlights
- 1Record revenue of $3.1 billion, a 30% increase year-over-year, driven by broad-based growth across all end markets.
- 2Significant progress made on the pending acquisition of Coherent, Inc., with shareholder approvals obtained and regulatory reviews underway, targeting completion by early 2022.
- 3Secured substantial financing commitments of up to $5.1 billion in debt financing and a $2.2 billion equity commitment from Bain Capital for the Coherent acquisition.
- 4The Photonic Solutions segment saw revenue increase by 33% to $2.04 billion, with strong performance in transceivers and other optical communication products.
- 5The Compound Semiconductors segment revenue grew by 30% to $1.07 billion, primarily driven by increased VCSEL shipments for 3D sensing and growth in the life sciences business.
- 6Research and Development expenses remained significant at $330 million, reflecting continued investment in new products and technologies across all business areas.
- 7The company's bookings increased to approximately $3.3 billion, and backlog stood at approximately $1.25 billion as of June 30, 2021, indicating strong future demand.