Summary
COHERENT CORP. (COHR) reported its Q2 2012 financial results, indicating a revenue increase for both the three and six-month periods ending December 31, 2011, compared to the prior year. However, net earnings attributable to II-VI Incorporated saw a notable decline, primarily due to significant one-time charges including an inventory write-down of tellurium and an impairment charge related to flood damage at a contract manufacturer's facility. These events, coupled with a shift in product mix at the Photop business unit impacting gross margins, led to a decrease in profitability. Despite these challenges, the company continues to invest in research and development, particularly in the optical communications market, and has benefited from favorable tax adjustments in China and the resolution of a US IRS examination. Management believes the company's liquidity and capital resources are sufficient to fund its operations and growth for the remainder of fiscal year 2012, supported by operating cash flows, existing cash reserves, and borrowing capacity.
Financial Highlights
51 data points| Revenue | $126.76M |
| Cost of Revenue | $83.29M |
| Gross Profit | $43.47M |
| R&D Expenses | $5.02M |
| SG&A Expenses | $24.21M |
| Operating Expenses | $111.09M |
| Interest Expense | $77K |
| Net Income | $13.29M |
| EPS (Basic) | $0.21 |
| EPS (Diluted) | $0.21 |
| Shares Outstanding (Basic) | 62.72M |
| Shares Outstanding (Diluted) | 64.19M |
Key Highlights
- 1Total revenues increased by 4.9% for the three months ended December 31, 2011, and by 10.0% for the six months ended December 31, 2011, compared to the respective prior year periods.
- 2Net earnings attributable to II-VI Incorporated decreased to $13.3 million for the three months ended December 31, 2011, from $19.2 million in the prior year period.
- 3A $2.2 million after-tax inventory write-down of tellurium and a $0.7 million after-tax impairment charge negatively impacted quarterly results.
- 4Gross margin declined significantly to 34.3% for the three months ended December 31, 2011, down from 41.4% in the prior year period, largely due to the write-downs and product mix shifts.
- 5Internal R&D expenses increased, reflecting continued investment in product development for optical communication and other markets.
- 6The company acquired Aegis Lightwave, Inc. for approximately $46.1 million in July 2011, adding to its product portfolio in optical networks.
- 7Cash provided by operating activities increased to $42.9 million for the six months ended December 31, 2011, from $33.0 million in the prior year period.