II-VI Incorporated Reports Fiscal 2020 Second Quarter Results

First Complete Fiscal Quarter with Finisar
Revenue Exceeded Top End of Guidance

  • Quarterly Revenue of $666.3 million, Exceeded Top End of our Guidance by 6% and the Analysts’ Consensus by 9%, with Strength Across Most Markets
  • Quarterly GAAP Operating Loss Includes $91 million of One Time Transaction Expenses
  • Quarterly Adjusted Operating Income Increased 28% Sequentially
  • Continuing Progress on Integration and Cost Synergy Strategies

PITTSBURGH, Feb. 10, 2020 (GLOBE NEWSWIRE) -- II-VI Incorporated (Nasdaq:IIVI) ("II-VI" or the "Company") today reported results for its fiscal 2020 second quarter ended December 31, 2019.

“The just-completed quarter marks the first full quarter of II-VI operations with Finisar included, since the transaction closed on September 24, 2019.  Revenue of $666.3M exceeded the top end of our guidance by 6% and the analysts’ consensus by 9%. This is driven by strength across our markets including optical communications, where stronger transceiver and ROADM sales exceeded our expectations, and sequential strength in 3D sensing, aerospace and defense and SiC substrates,” said Dr. Vincent D. Mattera, Jr. Chief Executive Officer of II-VI Incorporated. “We achieved record VCSEL product revenues and are completing our Sherman, Texas facility qualification. Across our markets, customer enthusiasm and support remain very high. We continue to make great progress on our integration and cost synergies, and look forward to addressing the market opportunities ahead."

Table 1    
$ Millions, except per share amounts and %                                  
(Unaudited)                                                    
   Three Months Ended     Six Months Ended  
                                             
   Dec 31,     Sept 30,    Dec 31,       Dec 31,     Dec 31,  
    2019     2019     2018       2019     2018  
                                                     
Revenues   $   666.3     $   340.4     $   342.9       $   1,006.7     $   657.3  
                                                     
Operating income (loss) (1)   $   (78.6 )   $   (18.5 )   $   39.6       $   (97.1 )   $   76.8  
Adjusted operating income (loss) (2)   $   65.3     $   50.9     $   57.3       $   116.2     $   105.4  
                                                     
Net earnings (loss)   $   (98.2 )   $   (26.0 )   $   28.7       $   (124.2 )   $   54.9  
Adjusted net earnings (2)   $   33.2     $   37.0     $   46.4       $   70.2     $   83.2  
                                                     
Diluted earnings (loss) per share   $   (1.08 )   $   (0.39 )   $   0.44       $   (1.58 )   $   0.83  
Adjusted diluted earnings per share (2)   $   0.36     $   0.56     $   0.71       $   0.87     $   1.26  
                                                     
Other Selected Financial Metrics                                                    
Gross margin       22.3 %       36.2 %       38.4 %         27.0 %       38.9 %
Adjusted gross margin (2)       35.0 %       38.3 %       38.5 %         36.1 %       39.1 %
Operating margin       -11.8 %       -5.4 %       11.5 %         -9.6 %       11.7 %
Adjusted operating margin (2)       9.8 %       15.0 %       16.7 %         11.5 %       16.0 %
Return on sales       -14.7 %       -7.6 %       8.4 %         -12.3 %       8.3 %
Adjusted return on sales (2)       5.0 %       10.9 %       13.5 %         7.0 %       12.7 %
  1. Operating income (loss) is defined as earnings (loss) before income taxes, interest expense and other expense or income, net.
  2. All adjusted amounts exclude certain non-GAAP adjustments for stock-based compensation, acquired intangible amortization expense, certain one-time transaction expenses, and restructuring and related items. See Table 4 for Reconciliation of Adjusted Operating Income (Loss) to Operating Income (Loss) and Net Earnings (Loss). See Table 6 for Reconciliation of Reported Net Earnings (Loss) to Adjusted Net Earnings.

Outlook

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