Summary
II-VI Incorporated (now Coherent Corp.) reported its first quarter results for fiscal year 2010, ending September 30, 2009. The company experienced a significant year-over-year decline in revenues, down 25% to $65.5 million, and net earnings attributable to II-VI Incorporated fell by 64% to $6.3 million. This downturn was primarily driven by the global economic recession impacting demand across several of its key segments, particularly Infrared Optics and Near-Infrared Optics. Despite the revenue challenges, the company saw strong booking growth in its Military & Materials segment, driven by defense programs and increased demand for specialized metals, and a modest increase in bookings for its Compound Semiconductor Group due to demand in the RF and power switching industries. Operationally, the company managed its cash flow effectively, with a notable increase in cash provided by operating activities to $15.7 million, up from $1.9 million in the prior year, aided by improved working capital management. The company maintained a strong liquidity position with over $105 million in cash and cash equivalents and $59.3 million in available borrowing capacity. While overall segment earnings declined, the Military & Materials segment showed resilience, and the company continues to invest in research and development, albeit with some cost-cutting measures implemented in response to the economic climate.
Financial Highlights
25 data points| Revenue | $65.54M |
| Cost of Revenue | $38.39M |
| Gross Profit | $27.15M |
| R&D Expenses | $2.44M |
| SG&A Expenses | $14.94M |
| Operating Expenses | $57.14M |
| Interest Expense | $24K |
| Net Income | $6.31M |
| EPS (Basic) | $0.11 |
| EPS (Diluted) | $0.11 |
Key Highlights
- 1Revenues declined 25% year-over-year to $65.5 million, primarily due to the global economic downturn affecting industrial demand.
- 2Net earnings attributable to II-VI Incorporated decreased 64% to $6.3 million, or $0.21 per diluted share, compared to $17.5 million, or $0.57 per diluted share, in the prior year.
- 3Bookings increased 63% in the Military & Materials segment, driven by defense contracts and demand for specialty metals.
- 4Cash flow from operations significantly improved, reaching $15.7 million compared to $1.9 million in the same period last year, due to better working capital management.
- 5The company maintained a healthy liquidity position with $105.5 million in cash and cash equivalents and $59.3 million in available borrowing capacity.
- 6The Infrared Optics segment experienced a 33% revenue decline, heavily impacted by reduced industrial activity and OEM demand.
- 7Despite overall earnings decline, the company incurred $2.4 million in share-based compensation expense, an increase from the prior year, impacting profitability.