Summary
Coherent Corp. (formerly II-VI Incorporated) reported a 6% increase in revenue for the nine months ended March 31, 2022, reaching $2.43 billion, driven primarily by growth in the communications, industrial, and semiconductor capital equipment markets. While gross margins improved year-over-year to 39%, net earnings declined to $191 million from $215 million in the prior year's comparable period, largely due to increased interest expenses and R&D investments. The company continues to make significant investments in R&D, with expenses up 14% for the nine-month period, signaling a focus on innovation and future growth. A major ongoing development is the pending acquisition of Coherent, Inc. The company has secured significant financing, including a $990 million Senior Notes issuance, to fund the transaction, which is anticipated to close by the end of the second calendar quarter of 2022, subject to regulatory approvals. This acquisition is expected to be transformative for the company, creating a leading player in the photonics and laser industry.
Financial Highlights
48 data points| Revenue | $827.72M |
| Cost of Revenue | $506.05M |
| Gross Profit | $321.67M |
| R&D Expenses | $96.89M |
| SG&A Expenses | $118.01M |
| Operating Expenses | $764.70M |
| Operating Income | $106.77M |
| Interest Expense | $43.50M |
| Net Income | $49.00M |
| EPS (Basic) | $0.30 |
| EPS (Diluted) | $0.28 |
| Shares Outstanding (Basic) | 106.32M |
| Shares Outstanding (Diluted) | 116.95M |
Key Highlights
- 1Revenue increased by 6% to $2.43 billion for the nine months ended March 31, 2022, compared to the prior year period.
- 2Gross margin improved to 39% for the nine months ended March 31, 2022, up from 38% in the comparable prior year period, driven by improved product mix and increased shipments.
- 3Net earnings decreased to $191 million for the nine months ended March 31, 2022, from $215 million in the prior year, impacted by higher interest expenses and R&D investments.
- 4The company is progressing towards the completion of its acquisition of Coherent, Inc., with an expected closing by the end of the second calendar quarter of 2022.
- 5Significant financing has been secured for the Coherent acquisition, including the issuance of $990 million in Senior Notes.
- 6Investments in internal research and development (IR&D) increased by 14% to $281 million for the nine months ended March 31, 2022, reflecting a strategic focus on innovation.
- 7Cash flow from operations decreased to $276 million for the nine months ended March 31, 2022, from $447 million in the prior year, primarily due to increased inventory to mitigate supply chain challenges.