IIVI Inc. (IIVI, Financial) filed Quarterly Report for the period ended 2009-09-30.
II-VI Incorporated designs manufactures and markets optical and opto-electronic components devices and materials for infrared near-infrared visible light x-ray and gamma ray instrumentation. The Company's infrared optics business manufactures optical and opto-electronic components sold under the II-VI brand name and used primarily in CO2 lasers. The Company's near-infrared optics business manufactures near-infrared & visible light products for industrial scientific military & medical instruments and laser gain materials and products for solid-state YAG and YLF lasers at the Company's VLOC subsidiary. The Company's military infrared optics business manufactures infrared products for military applications under the Exotic Electro-Optics brand name. Iivi Inc. has a market cap of $791.1 million; its shares were traded at around $26.78 with a P/E ratio of 28.8 and P/S ratio of 2.8. Iivi Inc. had an annual average earning growth of 20.9% over the past 10 years.
Segment earnings for the first quarter of fiscal 2010 decreased 53% to $4,876,000 from $10,373,000 in the first quarter of last fiscal year. The decrease in segment earnings for the three months ended September 30, 2009 compared to the same period last year was primarily due to the reduction of margin realized due to the segments lower shipment volume. Also, the Company recorded $0.9 million more in share-based compensation expense during the current fiscal quarter as compared to the same period last fiscal year as a result of an increased use of share-based compensation and an adjustment to the actual forfeiture rates from the estimated forfeiture rates for stock options that became fully vested during the current fiscal quarter.
Revenues for the first quarter of fiscal 2010 for Near-Infrared Optics decreased 35% to $8,901,000 from $13,680,000 in the first quarter of last fiscal year. The decrease in revenues for the three months ended September 30, 2009 compared to the same period last fiscal year was primarily due to the planned reduction of the shipment volume of the UV Filter product line as well as a general decline in shipments to the segments industrial and medical customers as a result of the poor economic climate. In addition, the segment also recorded $0.9 million less in contract revenues during the current quarter compared to the prior year as a result of a delay in the receipt of a certain government research and development contract that is now expected to be received in the segments second quarter of the current fiscal year.
Segment earnings for the first quarter of fiscal 2010 for Military & Materials decreased 22% to $2,255,000 as compared to $2,881,000 in the first quarter of last fiscal year. The decrease in segment earnings for the three months ended September 30, 2009 compared to the same period last fiscal year was due to PRMs increased production costs and lower of cost or market write-down of the tellurium inventory of approximately $0.2 million due to a market index price decrease experienced in the quarter.
The Companys year-to-date effective income tax rate is 25.0% compared to an effective tax rate of 1.6% for the same period last fiscal year. During the quarter ended September 30, 2008, the Company recorded a favorable income tax benefit of approximately $4.7 million in accordance with U.S. GAAP relating to the reversal of unrecognized tax benefits resulting from the completion of the Internal Revenue Services examination of certain of the Companys federal income tax returns. This benefit was partially offset by increased income tax expense of $0.9 million at certain Company foreign locations. The net favorable impact of these and other income tax changes during the fiscal quarter ended September 30, 2008 was approximately $3.6 million.
Net cash used in investing activities during the three months ended September 30, 2009 of approximately $6.5 million was primarily for expenditures for property, plant and equipment of $2.5 million, investment in an unconsolidated business of $2.9 million and payments on deferred purchase price arrangements of $1.0 million.
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II-VI Incorporated designs manufactures and markets optical and opto-electronic components devices and materials for infrared near-infrared visible light x-ray and gamma ray instrumentation. The Company's infrared optics business manufactures optical and opto-electronic components sold under the II-VI brand name and used primarily in CO2 lasers. The Company's near-infrared optics business manufactures near-infrared & visible light products for industrial scientific military & medical instruments and laser gain materials and products for solid-state YAG and YLF lasers at the Company's VLOC subsidiary. The Company's military infrared optics business manufactures infrared products for military applications under the Exotic Electro-Optics brand name. Iivi Inc. has a market cap of $791.1 million; its shares were traded at around $26.78 with a P/E ratio of 28.8 and P/S ratio of 2.8. Iivi Inc. had an annual average earning growth of 20.9% over the past 10 years.
Highlight of Business Operations:
Net earnings attributable to II-VI Incorporated for the first quarter of fiscal 2010 were $6,306,000 ($0.21 per share-diluted). This compares to net earnings attributable to II-VI Incorporated of $17,495,000 ($0.57 per share-diluted) in the first quarter of fiscal 2009. The decrease in net earnings attributable to II-VI Incorporated during the three months ended September 30, 2009 compared to the same period last fiscal year was due to several factors. During the prior years quarter ended September 30, 2008, the Company recognized a favorable income tax benefit in accordance with U.S. GAAP relating to the reversal of unrecognized income tax benefits resulting from the completion of the Internal Revenue Services examination of certain of the Companys federal income tax returns. This benefit was partially offset by additional tax exposure at certain foreign locations. The net favorable impact was approximately $3.6 million or $0.12 per share-diluted. In addition to the absence of the income tax benefit, other factors that contributed to lower earnings during the current three months compared to the same period last fiscal year were lower margins realized at the Companys Infrared Optics, Near-Infrared Optics and Marlow business units resulting from reduced shipments to their industrial-based customers as a result of the global recession. Also, the Company recorded approximately $0.9 million more in share-based compensation expense during the current fiscal quarter as compared to the same period last fiscal year as a result of an increased use of share-based compensation and an adjustment to the actual forfeiture rates from the estimated forfeitures rates for stock options that became fully vested during the current fiscal quarter.Segment earnings for the first quarter of fiscal 2010 decreased 53% to $4,876,000 from $10,373,000 in the first quarter of last fiscal year. The decrease in segment earnings for the three months ended September 30, 2009 compared to the same period last year was primarily due to the reduction of margin realized due to the segments lower shipment volume. Also, the Company recorded $0.9 million more in share-based compensation expense during the current fiscal quarter as compared to the same period last fiscal year as a result of an increased use of share-based compensation and an adjustment to the actual forfeiture rates from the estimated forfeiture rates for stock options that became fully vested during the current fiscal quarter.
Revenues for the first quarter of fiscal 2010 for Near-Infrared Optics decreased 35% to $8,901,000 from $13,680,000 in the first quarter of last fiscal year. The decrease in revenues for the three months ended September 30, 2009 compared to the same period last fiscal year was primarily due to the planned reduction of the shipment volume of the UV Filter product line as well as a general decline in shipments to the segments industrial and medical customers as a result of the poor economic climate. In addition, the segment also recorded $0.9 million less in contract revenues during the current quarter compared to the prior year as a result of a delay in the receipt of a certain government research and development contract that is now expected to be received in the segments second quarter of the current fiscal year.
Segment earnings for the first quarter of fiscal 2010 for Military & Materials decreased 22% to $2,255,000 as compared to $2,881,000 in the first quarter of last fiscal year. The decrease in segment earnings for the three months ended September 30, 2009 compared to the same period last fiscal year was due to PRMs increased production costs and lower of cost or market write-down of the tellurium inventory of approximately $0.2 million due to a market index price decrease experienced in the quarter.
The Companys year-to-date effective income tax rate is 25.0% compared to an effective tax rate of 1.6% for the same period last fiscal year. During the quarter ended September 30, 2008, the Company recorded a favorable income tax benefit of approximately $4.7 million in accordance with U.S. GAAP relating to the reversal of unrecognized tax benefits resulting from the completion of the Internal Revenue Services examination of certain of the Companys federal income tax returns. This benefit was partially offset by increased income tax expense of $0.9 million at certain Company foreign locations. The net favorable impact of these and other income tax changes during the fiscal quarter ended September 30, 2008 was approximately $3.6 million.
Net cash used in investing activities during the three months ended September 30, 2009 of approximately $6.5 million was primarily for expenditures for property, plant and equipment of $2.5 million, investment in an unconsolidated business of $2.9 million and payments on deferred purchase price arrangements of $1.0 million.
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