Summary
II-VI Incorporated (now Coherent Corp.) reported mixed financial results for the quarter and six months ended December 31, 2012. While total revenues saw a slight decrease compared to the prior year, the company successfully completed three strategic acquisitions (M Cubed Technologies, Oclaro's thin film filter business, and LightWorks Optics) during the quarter. These acquisitions are expected to drive future growth and expand product offerings. The Near-Infrared Optics segment showed strong performance with significant increases in bookings, revenues, and earnings, driven by demand for Photop's green laser devices and recovery from the Thailand flood. Despite a decrease in net earnings attributable to II-VI Incorporated for both the three and six-month periods, primarily due to higher tax expenses and acquisition-related costs, the company's balance sheet strengthened with an increase in cash and cash equivalents and a significant rise in long-term debt to fund acquisitions. Operating cash flows also improved. The company remains focused on its long-term growth initiatives and believes its liquidity and capital resources are sufficient for the next twelve months.
Financial Highlights
52 data points| Revenue | $125.11M |
| Cost of Revenue | $77.84M |
| Gross Profit | $47.27M |
| R&D Expenses | $5.63M |
| SG&A Expenses | $26.17M |
| Operating Expenses | $105.31M |
| Operating Income | $27.32M |
| Interest Expense | $223K |
| Net Income | $12.20M |
| EPS (Basic) | $0.19 |
| EPS (Diluted) | $0.19 |
| Shares Outstanding (Basic) | 62.58M |
| Shares Outstanding (Diluted) | 64.02M |
Key Highlights
- 1Completed three strategic acquisitions in the quarter: M Cubed Technologies, Oclaro's thin film filter business, and LightWorks Optics, aimed at expanding product portfolios and entering new markets.
- 2Near-Infrared Optics segment demonstrated robust growth with a 14% increase in quarterly revenue and a 115% increase in segment earnings.
- 3Gross margin improved to 37.3% in the quarter from 34.3% in the prior year, primarily due to better performance in the Near-Infrared Optics segment and operational efficiencies post-Thailand flood.
- 4Total revenues slightly decreased by 1% for the three months and 3% for the six months ended December 31, 2012, compared to the prior year.
- 5Net earnings attributable to II-VI Incorporated decreased to $12.2 million ($0.19 EPS) for the quarter and $24.9 million ($0.39 EPS) for the six months, impacted by higher taxes and acquisition costs.
- 6Strong improvement in operating cash flow, increasing to $61.0 million for the six months ended December 31, 2012, from $42.9 million in the prior year.
- 7Significant increase in long-term debt from $12.8 million to $124.5 million, primarily to finance acquisitions.