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IIVI Inc. Reports Operating Results (10-Q)

February 08, 2011 | About:
10qk

10qk

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IIVI Inc. (IIVI) filed Quarterly Report for the period ended 2010-12-31.

Iivi Inc. has a market cap of $1.55 billion; its shares were traded at around $50.15 with a P/E ratio of 24.7 and P/S ratio of 4.5. 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.Mutual Fund and Other Gurus that owns IIVI: Columbia Wanger of Columbia Wanger Asset Management, Chuck Royce of Royce& Associates.

Highlight of Business Operations:

Revenues for the three months ended December 31, 2010 increased 76% to $120,887,000 compared to $68,785,000 for the same period last fiscal year. Revenues for the six months ended December 31, 2010 increased 79% to $241,021,000 compared to $134,323,000 for the same period last fiscal year. Included in revenues for the three and six months ended December 31, 2010 was approximately $31.0 million and $57.7 million, respectively, of revenues from Photop. In addition to the revenues from Photop, the increase in revenues for the three and six months ended December 31, 2010 compared to the same periods last fiscal year was the result of the majority of the Companys business units recognizing increased shipment volume as a result of the general improvement in the worldwide economy. The Companys Infrared Optics segment recognized increased revenues of $9.5 million and $21.5 million, respectively, during the current three and six month period. This increase in revenues was primarily driven by increasing demand from OEMs and aftermarket customers. The Military & Materials segment recognized increased revenues of $4.3 million and $8.8 million, respectively, during the current three and six month period. This increase in revenues is primarily driven by increased demand for both selenium and tellurium at PRM as well as increased shipments related to the Joint Strike Fighter program at EEO. The Compound Semi Conductor Group segment recognized increased revenues of $7.2 million and $17.2 million, respectively, during the current three and six month period, primarily due to its gesture recognition product line.

Net earnings attributable to II-VI Incorporated for the three months ended December 31, 2010 were $19,157,000 ($0.60 per share-diluted). This compares to net earnings attributable to II-VI Incorporated of $5,981,000 ($0.20 per share-diluted) in the second quarter of fiscal 2010. Net earnings attributable to II-VI Incorporated for the six months ended December 31, 2010 were $37,524,000 ($1.18 per share-diluted). This compares to net earnings attributable to II-VI Incorporated of $12,287,000 ($0.41 per share-diluted) for the six months ending December 31, 2009. The increase in net earnings for the three and six months ended December 31, 2010 compared to the same periods last fiscal year was primarily due to the incremental margin realized on increased revenues. In addition, the operating results of Photop made a positive contribution to net earnings as did certain yield improvements within the Infrared Optics segment and operating efficiencies throughout the Company.

Bookings for the three months ended December 31, 2010 for Infrared Optics increased 45% to $47,006,000 compared to $32,444,000 for the same period last fiscal year. Bookings for the six months ended December 31, 2010 for Infrared Optics increased 46% to $88,308,000 compared to $60,614,000 for the same period last fiscal year. The increase in bookings for the three and six months ended December 31, 2010 compared to the same periods last fiscal year was driven by the continued increased demand from the segments industrial-based customers. Customers continued to replenish their inventory levels as worldwide economies continue to improve. In particular, the segments aftermarket customer base operated their laser systems at a higher utilization rate, thereby creating a higher level of demand for the segments replacement optics. In addition, HIGHYAG recorded increased bookings for both the current three and six month periods compared to the same periods last fiscal year as a result of increased industrial manufacturing activities including increased investment in the global automotive industry.

Bookings for the three months ended December 31, 2010 for Near-Infrared Optics increased 209% to $35,906,000 compared to $11,603,000 for the same period last fiscal year. Included in bookings for the three months ended December 31, 2010 was approximately $29.6 million of bookings from Photop. Excluding Photop, bookings decreased for the three months ended December 31, 2010 compared to the same period last fiscal year due to a Title III government contract that was received last fiscal year for the development of ceramic laser-gain materials. Due to recent changes in the government budgeting process, the funding of the next phase of this program did not continue in fiscal year 2011. Bookings for the six months ended December 31, 2010 for Near-Infrared Optics increased 187% to $69,722,000 compared to $24,331,000 for the same period last fiscal year. Included in bookings for the six months ended December 31, 2010 was approximately $57.6 million of bookings from Photop. Excluding Photop, bookings decreased for the six months ended December 31, 2010 compared to the same period last fiscal year due primarily to the aforementioned Title III government contract, as well as timing of orders for the Companys UV filter product line.

Revenues for the three months ended December 31, 2010 for Near-Infrared Optics increased 303% to $41,418,000 compared to $10,280,000 for the same period last fiscal year. Revenues for the six months ended December 31, 2010 for Near-Infrared Optics increased 309% to $78,363,000 compared to $19,181,000 for the same period last fiscal year. Included in revenues for the three and six months ended December 31, 2010 was approximately $31.0 million and $57.7 million, respectively, of revenues from Photop. Excluding Photop, revenues increased for the three and six months ended December 31, 2010 compared to the same periods last fiscal year due to increased product demand for optics and components used in laser-based range finders, target designators and illuminator systems.

Bookings for the three months ended December 31, 2010 for the Compound Semiconductor Group increased 37% to $21,616,000 compared to $15,776,000 for the same period last fiscal year. The increase in bookings for the three months ended December 31, 2010 compared to the same period last fiscal year was primarily due to the receipt of a $5.2 million contract at WBG from the U.S. Department of Defense, which focuses on improving the growth processes of larger diameter Silicon Carbide substrates. Bookings for the six months ended December 31, 2010 for the Compound Semiconductor Group increased 48% to $43,277,000 compared to $29,211,000 for the same period last fiscal year. The increase in bookings for the six months ended December 31, 2010 compared to the same period last fiscal year was primarily due to the aforementioned Department of Defense award, increased bookings at Marlow from the gesture recognition product line, and increased demand from our core markets of defense, telecom, medical and industrial.

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