Summary
II-VI Incorporated (COHR) reported its fiscal second quarter results for the period ending September 30, 2016. The company experienced a revenue increase of 17% year-over-year, reaching $221.5 million, primarily driven by strong performance in the II-VI Photonics segment, which benefited from increased demand in optical communication markets. This growth was supported by strategic acquisitions, including EpiWorks and ANADIGICS, which are now contributing to the II-VI Laser Solutions segment. Despite revenue growth, net earnings saw a slight decrease to $16.3 million from $17.2 million in the prior year period. This reduction was attributed to increased investments in internal research and development (R&D) to support new technology platforms, particularly in the high-volume VCSELs space, and higher income taxes. The company's liquidity remains strong, with significant cash and cash equivalents and an increased revolving credit facility, enabling continued investment in growth initiatives and operational enhancements.
Financial Highlights
49 data points| Revenue | $221.52M |
| Cost of Revenue | $133.92M |
| Gross Profit | $87.60M |
| R&D Expenses | $21.83M |
| SG&A Expenses | $42.08M |
| Operating Income | $23.69M |
| Interest Expense | $1.25M |
| Net Income | $16.29M |
| EPS (Basic) | $0.26 |
| EPS (Diluted) | $0.26 |
| Shares Outstanding (Basic) | 62.02M |
| Shares Outstanding (Diluted) | 63.59M |
Key Highlights
- 1Total revenues increased by 17% to $221.5 million for the three months ended September 30, 2016, compared to $189.2 million in the prior year period.
- 2II-VI Photonics segment showed robust growth with a 33% increase in revenues and a 121% increase in operating income, driven by demand in optical communication markets.
- 3The company increased its investment in R&D, with expenses rising to $21.8 million (9.8% of revenue) from $13.2 million (7.0% of revenue) in the prior year, signaling a focus on future growth technologies.
- 4Net earnings decreased slightly to $16.3 million from $17.2 million, impacted by higher R&D investments and increased income taxes.
- 5Bookings increased by 31% to $244.3 million, indicating strong future revenue potential, with the II-VI Photonics segment leading this growth.
- 6The company enhanced its credit facility, increasing the revolving credit line to $325 million, strengthening its liquidity position.
- 7Acquisitions of EpiWorks and ANADIGICS are integrated into the II-VI Laser Solutions segment, with initial impacts on revenue and operating income.