Summary
COHERENT CORP. (COHR) reported a strong third quarter for fiscal year 2018, with revenues increasing 20% year-over-year to $314.4 million. This growth was primarily driven by higher demand in optical communications for broadband expansion, datacenters, and U.S. metro upgrades, alongside strength in VCSELs for consumer electronics and datacom, and silicon carbide for RF electronics. Net earnings also saw a significant rise of 24% to $26.1 million, or $0.40 per diluted share, benefiting from increased revenue, improved gross margin dollars, and a lower effective tax rate. The company successfully integrated the CoAdna acquisition in September 2018, contributing $3.0 million to revenues in the quarter. Despite increased investment in R&D and higher interest expenses due to increased debt levels, the company demonstrated improved SG&A leverage and maintained compliance with debt covenants. The balance sheet shows growth in total assets to $1.88 billion, supported by increases in goodwill and intangible assets, while cash and cash equivalents strengthened to $271.3 million.
Financial Highlights
49 data points| Revenue | $314.43M |
| Cost of Revenue | $190.53M |
| Gross Profit | $123.91M |
| R&D Expenses | $33.17M |
| SG&A Expenses | $53.52M |
| Operating Expenses | $282.09M |
| Operating Income | $37.21M |
| Interest Expense | $5.58M |
| Net Income | $26.15M |
| EPS (Basic) | $0.41 |
| EPS (Diluted) | $0.40 |
| Shares Outstanding (Basic) | 63.42M |
| Shares Outstanding (Diluted) | 66.16M |
Key Highlights
- 1Revenue increased by 20% to $314.4 million in the third quarter of fiscal year 2018, driven by strong demand in optical communications and other key markets.
- 2Net earnings rose by 24% to $26.1 million, or $0.40 per diluted share, indicating improved profitability.
- 3The company completed the acquisition of CoAdna Holdings, Inc. for approximately $85.0 million, adding to its II-VI Photonics segment.
- 4Operating income in the II-VI Laser Solutions segment surged by 356% year-over-year, driven by VCSEL product line growth and improved operational performance.
- 5Total assets grew to $1.88 billion, with notable increases in Goodwill and Other intangible assets, reflecting strategic investments and acquisitions.
- 6Cash and cash equivalents increased to $271.3 million, showing a healthy liquidity position.
- 7The company's effective income tax rate decreased to 19.1% from 21.4% in the prior year, partly due to U.S. tax legislation and foreign operations.