Summary
II-VI Incorporated (COHR) reported a mixed financial performance for the six months ended December 31, 2017. While revenue saw a significant increase of 20% to $543.0 million compared to the prior year, driven by strong demand across various end markets including consumer electronics, communications, and automotive, net earnings declined. For the three months ended December 31, 2017, net earnings were $9.6 million, a substantial decrease from $23.9 million in the prior year. This decline was largely impacted by a provisional net charge of $15.8 million related to the U.S. Tax Cuts and Jobs Act. Excluding this one-time tax impact, net earnings would have been more favorable, supported by higher revenues. The company completed two key acquisitions during the period: Integrated Photonics, Inc. (IPI) and II-VI Compound Semiconductor Ltd. While these acquisitions contributed to revenue growth, they also resulted in net losses that impacted overall profitability in the short term. II-VI Laser Solutions and II-VI Performance Products segments demonstrated strong revenue growth and improved operating income, while II-VI Photonics also saw revenue increases with significant operating income growth driven by higher margin product mix and new introductions. The company's liquidity remains robust, supported by operating cash flows, a strong cash position, and available borrowing capacity, enabling continued investment in technology platforms and strategic growth objectives.
Financial Highlights
50 data points| Revenue | $281.47M |
| Cost of Revenue | $172.07M |
| Gross Profit | $109.39M |
| R&D Expenses | $27.78M |
| SG&A Expenses | $49.13M |
| Operating Expenses | $251.60M |
| Operating Income | $32.49M |
| Interest Expense | $4.64M |
| Net Income | $9.60M |
| EPS (Basic) | $0.15 |
| EPS (Diluted) | $0.15 |
| Shares Outstanding (Basic) | 62.30M |
| Shares Outstanding (Diluted) | 65.04M |
Key Highlights
- 1Revenue increased by 20% to $543.0 million for the six months ended December 31, 2017, driven by strong demand in key end markets.
- 2Net earnings for the three months ended December 31, 2017, significantly decreased to $9.6 million from $23.9 million in the prior year, primarily due to a $15.8 million provisional charge related to the Tax Cuts and Jobs Act.
- 3The company completed two strategic acquisitions: Integrated Photonics, Inc. (IPI) and II-VI Compound Semiconductor Ltd., which contributed to revenue but also incurred net losses impacting short-term profitability.
- 4II-VI Laser Solutions and II-VI Performance Products segments showed strong revenue and operating income growth.
- 5II-VI Photonics segment experienced revenue growth and notable operating income expansion driven by higher margin products and new introductions.
- 6Liquidity remains strong with $254.5 million in cash and cash equivalents and $225.6 million in available borrowing capacity as of December 31, 2017.
- 7The company is making significant investments in new technology platforms to address anticipated future demands, impacting current cash flow from operations despite revenue growth.