01—Abstract
Summary
Summary of the 10-Q filed November 8, 2010. Cited figures are marked; the original filing is the authoritative source.
II-VI Incorporated (COHR) reported a significant increase in revenue and net earnings for the three months ended September 30, 2010, compared to the same period in the prior year.
Total revenues more than doubled, driven by strong performance across most business segments, particularly Infrared Optics and Compound Semiconductor Group, and bolstered by the recent acquisition of Photop Technologies. This revenue growth translated into a substantial increase in net earnings, with diluted EPS rising from $0.21 to $0.58a. The company's balance sheet shows a healthy increase in total assets, largely due to growth in current assets like cash, accounts receivable, and inventories.
While liabilities also increased, particularly in accrued income taxes and other accrued liabilities, shareholders' equity saw a considerable rise, indicating strong retained earnings growth. The company maintained a solid cash position and available borrowing capacity, suggesting a stable liquidity outlook.
02—Key points
Key Highlights
- Total Revenues surged by 83% year-over-year to $120.1 million for the three months ended September 30, 2010, compared to $65.5 million in the prior year.
- Net earnings attributable to II-VI Incorporated increased significantly by 191% to $18.4 million, up from $6.3 million in the same period last year.
- Diluted Earnings Per Share (EPS) saw a substantial rise of 176%, reaching $0.58 from $0.21 in the prior year's comparable quarter.
- The acquisition of Photop Technologies, completed in January 2010, contributed significantly to the revenue and earnings growth, particularly in the Near-Infrared Optics segment.
- Bookings also showed strong growth, up 53% year-over-year, indicating robust future revenue potential.
- Total Assets increased to $537.1 million from $509.0 million, driven by growth in current assets.
- Shareholders' Equity increased to $435.8 million from $410.9 million, reflecting strong retained earnings growth.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2011filed November 8, 2010Financial Statements
Q1 FY2011 against Q1 FY2010
| Line item | Q1 FY2011Q1 FY2010 | Change |
|---|---|---|
| Revenue | $120.13M$65.54M | +83.3% |
| Cost of Revenue | $70.90M$38.39M | +84.7% |
| Gross Profit | $49.24M$27.15M | +81.4% |
| R&D Expenses | $3.85M$2.44M | +57.9% |
| SG&A Expenses | $22.73M$14.94M | +52.1% |
| Operating Expenses | $95.44M$57.14M | +67.0% |
| Interest Expense | $30K$24K | +25.0% |
| Net Income | $18.37M$6.31M | +191.3% |
| EPS (Basic) | $0.30$0.11 | +172.7% |
| EPS (Diluted) | $0.29$0.11 | +163.6% |
| Shares Outstanding (Basic) | 61.81M— | — |
| Shares Outstanding (Diluted) | 63.29M— | — |
05—Questions
Frequently Asked Questions
What was the primary driver of the significant revenue increase in the September 2010 quarter?
The primary driver of the significant revenue increase was the strong performance across most of the company's business segments, coupled with the positive contribution from the acquisition of Photop Technologies, Inc., which was completed in January 2010. General economic improvement and increased product demand also played a crucial role.
How has the acquisition of Photop Technologies impacted the company's financial results?
The acquisition of Photop Technologies has had a substantial positive impact. It contributed significantly to the revenue growth, particularly in the Near-Infrared Optics segment, and also made a positive contribution to net earnings. The company expects to achieve synergies through this acquisition.
What is the company's current liquidity and debt position?
The company maintains a strong liquidity position with $113.2 million in cash and cash equivalents and $59.1 million in available borrowing capacity under its credit facility as of September 30, 2010. Total debt obligations remain relatively low at $3.6 million.
Are there any significant accounting changes or pronouncements adopted that would impact these results?
The company adopted several accounting standard updates, including those related to revenue recognition under the milestone method, fair value disclosures, and multiple-deliverable revenue arrangements. However, the adoption of these standards did not have a significant impact on the company's financial position, results of operations, or cash flows for this reporting period.
06—Continue