Summary
Coherent Corp. (COHR) reported a solid increase in net earnings for the quarter ended September 30, 2015, reaching $17.2 million ($0.27 per diluted share), a significant jump from $12.3 million ($0.20 per diluted share) in the prior year's comparable quarter. This improvement was driven by enhanced operational performance in the II-VI Photonics segment, fueled by increased demand from the Chinese broadband program and undersea network build-outs. The company also benefited from cost-saving initiatives and favorable foreign currency movements. Revenue saw a modest increase of 2% to $189.2 million, supported by the II-VI Photonics segment's growth, while bookings also rose by 3% to $187.2 million, primarily due to demand in the military, semiconductor, and thermoelectric cooler markets within the II-VI Performance Products segment. Operationally, gross margin improved to 37.6% from 36.5% year-over-year, driven by higher revenues, operational efficiencies from past acquisitions, and a favorable product mix. While the II-VI Laser Solutions segment experienced a slight decline in bookings and revenues, the II-VI Photonics segment demonstrated strong growth. The II-VI Performance Products segment saw increased bookings but a decrease in revenues. The company maintained a healthy cash position and remained compliant with its debt covenants, indicating a stable financial outlook.
Financial Highlights
50 data points| Revenue | $189.21M |
| Cost of Revenue | $118.02M |
| Gross Profit | $71.19M |
| R&D Expenses | $13.15M |
| SG&A Expenses | $36.31M |
| Operating Income | $21.73M |
| Interest Expense | $649K |
| Net Income | $17.21M |
| EPS (Basic) | $0.28 |
| EPS (Diluted) | $0.27 |
| Shares Outstanding (Basic) | 61.22M |
| Shares Outstanding (Diluted) | 62.73M |
Key Highlights
- 1Net earnings increased by 39.8% to $17.2 million ($0.27 per diluted share) for the quarter ended September 30, 2015, compared to $12.3 million ($0.20 per diluted share) in the prior year.
- 2Total revenues grew by 2.0% to $189.2 million, primarily driven by the II-VI Photonics segment's performance.
- 3Bookings increased by 3.0% to $187.2 million, with notable growth in the II-VI Performance Products segment.
- 4Gross margin improved to 37.6% of revenues, up from 36.5% in the prior year, attributed to increased revenues, operational efficiencies, and product mix.
- 5The II-VI Photonics segment experienced a significant 13% increase in revenues and a 200% increase in operating income.
- 6The company maintained strong liquidity with $163.8 million in cash and cash equivalents and $125.1 million in available borrowing capacity.
- 7Despite a decline in revenues for the II-VI Performance Products segment, this segment saw a 17% increase in bookings, driven by new orders in the SiC substrate business and military applications.