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IIVI Inc. Reports Operating Results (10-Q)

November 08, 2010 | About:
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10qk

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IIVI Inc. (IIVI) filed Quarterly Report for the period ended 2010-09-30.

Iivi Inc. has a market cap of $1.29 billion; its shares were traded at around $41.63 with a P/E ratio of 24.93 and P/S ratio of 3.73. Iivi Inc. had an annual average earning growth of 17.2% over the past 10 years. GuruFocus rated Iivi Inc. the business predictability rank of 3.5-star.IIVI is in the portfolios of Columbia Wanger of Columbia Wanger Asset Management, Chuck Royce of Royce& Associates.

Highlight of Business Operations:

Revenues for the three months ended September 30, 2010 increased 83% to $120,134,000 compared to $65,538,000 for the same period last fiscal year. Included in revenues for the three months ended September 30, 2010 was approximately $26.7 million of revenues from Photop. In addition to the revenues from Photop, the increase in revenues for the three months ended September 30, 2010 compared to the same period last fiscal year was the result of the majority of the Companys business unit recognizing increased shipment volume during the current fiscal quarter compared to the same period last fiscal year as a result of the general improvement in the worldwide economy. The Companys Infrared Optics segment and the Marlow business units within the Compound Semiconductor Group recognized $12.1 million and $10.0 million, respectively, of increased revenues during the quarter ended September 30, 2010 as a result of stronger demand from their addressable markets compared to the same period last fiscal year. Included in the $10.0 million revenue increase is approximately $6.2 million of revenues relating to a high volume new consumer application product used in computer gaming. In addition, the Companys Military & Materials segment recorded $4.5 million of additional revenues in the current fiscal quarter compared to the same period last year due to increased shipment volume of tellurium and selenium products at PRM and a higher volume of sapphire window shipments for the Joint Strike Fighter program at EEO.

Net earnings attributable to II-VI Incorporated for the first quarter of fiscal 2011 were $18,367,000 ($0.58 per share-diluted). This compares to net earnings attributable to II-VI Incorporated of $6,306,000 ($0.21 per share-diluted) in the first quarter of fiscal 2009. The increase in net earnings attributable to II-VI Incorporated for the three months ended September 30, 2010 compared to the same period last year was primarily due to the incremental margin realized on the 83% increase in revenues. In addition, the operating results of Photop made a positive contribution to net earnings as well as favorable foreign currency gains of approximately $0.03 per share diluted recognized due to certain of the Companys foreign currencies strengthening against the U.S. dollar. Net earnings were somewhat offset by approximately $1.3 million more of share-based compensation expense during the current three months ended September 30, 2010 compared to the same period last fiscal year as a result of the Company increasing the use of this method to compensate and incentivize its worldwide workforce.

Bookings for the first quarter of fiscal 2011 for Near-Infrared Optics increased 166% to $33,816,000 from $12,728,000 in the first quarter of last fiscal year. Included in bookings for the three months ended September 30, 2010 was approximately $28.0 million of bookings from Photop. Excluding Photop, bookings decreased for the three months ended September 30, 2010 compared to the same period last fiscal year due primarily to the timing of orders for the Companys UV Filter product line. During the three months ended September 30, 2009, the Company received a large blanket order of $8.0 million for its UV Filter product line. A similar blanket order for this product line was not received during the current three months ended September 30, 2010.

Revenues for the first quarter of fiscal 2011 for Near-Infrared Optics increased 315% to $36,945,000 from $8,901,000 in the first quarter of last fiscal year. Included in revenues for the three months ended September 30, 2010 was approximately $26.7 million of revenues from Photop. Excluding Photop, revenues increased for the three months ended September 30, 2010 compared to the same period last fiscal year due to increased product demand for non-UV Filter military applications for laser-based range finders, target designators and illuminator systems. In addition, the Company recorded approximately $0.5 million in increased research and development revenues during the current fiscal quarter compared to the same period last year.

Bookings for the first quarter of fiscal 2011 for the Compound Semiconductor Group increased 61% to $21,661,000 as compared to $13,435,000 in the first quarter of last fiscal year. The increase in bookings for the three months ended September 30, 2010 compared to the same period last fiscal year was primarily due to increased bookings at Marlow related to increased product demand from customers in the defense, medical and telecom markets. In addition, Marlow recorded approximately $5.4 million of bookings relating to a high volume new consumer application product.

Net cash used in investing activities was $6.2 million for the three months ended September 30, 2010 compared to cash used in investing activities of $6.5 million for the same period last fiscal year. Cash used in investing activities during the three months ended September 30, 2010 primarily consists of $5.3 million for expenditures for property, plant and equipment and $1.2 million for the final payment on the Companys 40% equity interest in Langfang Haobo Diamond Co. Ltd. The Company is currently forecasting capital expenditures to total approximately $30.0 million for fiscal year 2011.

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