News: Optoelectronics
18 November 2021
II-VI reports record quarterly bookings of $939m and backlog of $1.4bn
For its fiscal first-quarter 2022 (to end-September 2021), engineered materials and optoelectronic component maker II-VI Inc of Saxonburg, PA, USA has reported revenue of $795.1m, up 9% on $728.1m a year ago, driven by growth in virtually all of the firm’s end markets.
Revenue for Photonics Solutions was $536m, up 7.7% on $497.7m a year ago.
Revenue for Compound Semiconductors was $259.1m, up 12.5% on $230.4m a year ago.
Specifically, the firm’s Industrial business grew by more than 50% year-on-year. High-speed 200/400/800G datacom and telecom revenues have significantly accelerated, growing by nearly 70% sequentially. “This growth was underpinned by our industry-leading laser diode technologies that enabled the highest-output-power 400G coherent pluggable transceivers available in the marketplace,” says CEO Dr Vincent D. Mattera Jr.
On a non-GAAP basis, gross margin was up from 39.4% a year ago to 39.8%. Net earnings grew from $100.4m ($0.84 per diluted share) to $117.7m ($0.87 per diluted share). Return on sales was up from 13.8% to 14.8%. During the quarter, cash and cash equivalents fell slightly from $1.59bn to $1.56bn, although this is still up on $0.684bn a year ago.
“Our customers are growing and demanding much more from us as the end markets we serve, and the mega-market trends driving them, continue to accelerate,” continues Mattera. “We are looking ahead and aggressively investing to serve these transformative and sustainable market trends, consistent with our strategic plan,” he adds.
“Our integration planning with Coherent [of Santa Clara, CA, which provides lasers and laser-based technology for scientific, commercial and industrial applications] is well underway [after approval by shareholders in late June]. All integration planning teams are fully engaged and excited about the prospect of combining our complementary talent, technology platforms, and scale across the value chain,” says Mattera. “All remaining regulatory reviews are progressing on track, with China having formally commenced its review process in September.” The firm continues to expect that the transaction will close during calendar first-quarter 2022. “Our synergies on the Finisar transaction [acquisition of the Sunnyvale, CA-based fiber-optic communications component and subsystem maker in September 2019] now exceed $180m, which are well ahead of schedule,” concludes Mattera.
Fiscal year 2022 is starting with “very strong momentum and sustainable demand signals” that translated into another quarterly bookings record of $939m (up 43% year-on-year) and record backlog of $1.4bn.
For fiscal second-quarter 2022 (to end-December 2021), II-VI expects revenue of $790-840m and net earnings of $104-128m ($0.75-0.95 per diluted share).
II-VI’s shareholder and Coherent’s stockholders approve merger
