II-VI Incorporated Reports Fiscal 2020 First Quarter Results

November 12, 2019   I     PDF

  • II-VI completes its acquisition of Finisar on September 24, 2019
  • Total revenue increased 8% compared to the same period last fiscal year
  • Adjusted operating income increases 6% from the same period last fiscal year
  • Legacy II-VI generated revenue of $318.4M, EPS of $0.34 and adjusted EPS of $0.57
  • Acquisition and related costs in the quarter were $59.9M

II-VI Incorporated (Nasdaq:IIVI) (“II-VI” or the “Company”) today reported results for its fiscal 2020 first quarter ended September 30, 2019.

“On September 24th, we closed the Finisar transaction, the largest acquisition in our history. Our excitement continues to build as we validate the depth and breadth of the technologies and manufacturing scale that we expect will enable our growth by addressing the long-term mega trends in our markets such as cloud computing and 5G wireless. As a result of the acquisition, we have become the largest component and subsystem supplier in the global optical communications market as well as a leader in photonic solutions and compound semiconductors. We ended the quarter with a $721 million Backlog and experienced a Book/Bill ratio of 1.10. On the first day of our combined Company, we immediately got to work on delivering the cost synergies we identified. We are focused on achieving our long-range model, executing our strategy, leveraging our technology, identifying and closing gaps, and improving our operating leverage. Our global sales team is already experiencing higher levels of engagement with our key customers that we believe will soon lead to meaningful revenue synergies.

Growth in our commercial markets was mixed during the first quarter as it was affected by well-known macro factors, including the recent overall slowing in industrial demand. However, we remain optimistic about the long-term growth prospects for all of our commercial end markets.  Our Aerospace and Defense business delivered a very strong quarter, in part due to the successful integration of recent acquisitions.  We have also put in place the measures to operate the Finisar WSS business separately as required by regulators due to the strong market position of both companies. We are ready to capitalize on new opportunities from the expected rapid growth in our key end markets.”