Summary
Coherent Corp. (formerly II-VI Incorporated) reported a significant turnaround in its financial performance for the quarter ending December 31, 2020. The company transitioned from a net loss of $98.2 million in the prior year period to a net earning of $87.9 million, demonstrating substantial operational improvements and revenue growth. This shift was driven by a robust increase in revenues, up 18% year-over-year, largely attributable to the successful integration of Finisar Corporation and strong demand in the consumer electronics and communications sectors. The company also saw a dramatic improvement in its gross margin, expanding from 22.3% to 41.0%, a key indicator of improved pricing power, operational efficiency, and favorable product mix. This enhanced profitability, coupled with effective cost management and a strong balance sheet with increased cash and cash equivalents, positions Coherent Corp. favorably. Investors should note the strategic acquisitions and the continued focus on vertical integration as key drivers for future growth.
Financial Highlights
49 data points| Revenue | $786.57M |
| Cost of Revenue | $473.86M |
| Gross Profit | $312.71M |
| R&D Expenses | $84.86M |
| SG&A Expenses | $109.13M |
| Operating Expenses | $680.29M |
| Operating Income | $118.72M |
| Interest Expense | $15.59M |
| Net Income | $87.90M |
| EPS (Basic) | $0.78 |
| EPS (Diluted) | $0.73 |
| Shares Outstanding (Basic) | 104.09M |
| Shares Outstanding (Diluted) | 115.05M |
Key Highlights
- 1Reported a significant net earnings of $87.9 million for the quarter, a substantial improvement from a net loss of $98.2 million in the prior year period.
- 2Total revenues increased by 18% year-over-year to $786.6 million, driven by the inclusion of Finisar's operations and strong performance in communications and consumer electronics.
- 3Gross margin significantly improved to 41.0% from 22.3% in the prior year quarter, reflecting better operational efficiencies and product mix.
- 4Cash and cash equivalents increased substantially to $834.5 million as of December 31, 2020, from $493.0 million as of June 30, 2020, indicating strong cash generation.
- 5The company successfully repaid its Term B Facility, reducing its long-term debt and improving its financial flexibility.
- 6Acquisitions of Ascatron AB and INNOViON Corporation have been integrated into the Compound Semiconductors segment, strengthening the company's technology platform.
- 7Diluted Earnings Per Share turned positive at $0.73, a significant improvement from a negative $1.08 in the comparable prior year period.