Summary
COHERENT CORP. (COHR) reported mixed results for the nine months ended March 31, 2013. While total revenues saw a slight increase to $403.4 million compared to $397.7 million in the prior year, net earnings attributable to II-VI Incorporated decreased to $40.8 million from $45.9 million in the prior year. This decline was primarily attributed to increased selling, general, and administrative expenses due to the integration of recently acquired subsidiaries and transaction costs. The company undertook significant strategic acquisitions during the period, including M Cubed Technologies, Inc., the Oclaro thin film filter business and interleaver product line, and LightWorks Optics, Inc. These acquisitions contributed to an increase in goodwill and intangible assets on the balance sheet, as well as driving revenue growth in specific segments. However, these integration efforts also led to higher operating expenses. Financially, the company's cash position improved, with cash and cash equivalents rising to $155.6 million from $134.9 million. This was supported by strong operating cash flows of $68.1 million, despite significant investment in acquisitions and capital expenditures. The company also increased its long-term borrowings by $109 million to finance these acquisitions, resulting in total debt rising to $121.2 million from $12.8 million.
Financial Highlights
52 data points| Revenue | $143.94M |
| Cost of Revenue | $92.99M |
| Gross Profit | $50.95M |
| R&D Expenses | $5.78M |
| SG&A Expenses | $27.00M |
| Operating Expenses | $124.82M |
| Operating Income | $18.17M |
| Interest Expense | $449K |
| Net Income | $15.87M |
| EPS (Basic) | $0.26 |
| EPS (Diluted) | $0.25 |
| Shares Outstanding (Basic) | 62.13M |
| Shares Outstanding (Diluted) | 63.72M |
Key Highlights
- 1Total revenues for the nine months ended March 31, 2013 increased slightly to $403.4 million, up 1% from $397.7 million in the prior year.
- 2Net earnings attributable to II-VI Incorporated decreased to $40.8 million for the nine months ended March 31, 2013, down from $45.9 million in the prior year, largely due to increased SG&A expenses from acquisitions and transaction costs.
- 3The company completed three significant acquisitions: M Cubed Technologies, Inc., the Oclaro thin film filter business, and LightWorks Optics, Inc., which impacted revenue and expenses.
- 4Consolidated cash and cash equivalents increased to $155.6 million as of March 31, 2013, from $134.9 million as of June 30, 2012, supported by strong operating cash flows of $68.1 million.
- 5Long-term debt significantly increased to $121.2 million as of March 31, 2013, from $12.8 million as of June 30, 2012, primarily to finance acquisitions.
- 6Goodwill and Other Intangible Assets saw substantial increases due to the acquisitions, with Goodwill rising to $122.3 million from $80.7 million and Other Intangible Assets net book value increasing to $88.6 million from $44.0 million.