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II-VI Incorporated Reports Q4 and Full-Year Fiscal 2022 Results

II-VI Incorporated
II-VI Incorporated
  • Delivers record quarterly revenues of $887 million, up 7% sequentially and 10% year-over-year

  • Posts Q4FY22 GAAP EPS of $0.23 and non-GAAP diluted EPS of $0.98

  • Achieves record FY22 bookings of $4.32 billion and revenue of $3.32 billion; up 29% and 7% annually respectively

  • Generates operating cash flow of $413 million

PITTSBURGH, Aug. 24, 2022 (GLOBE NEWSWIRE) -- II-VI Incorporated (Nasdaq: IIVI) ("II-VI," “We” or the "Company") an innovator in materials, networking and lasers enabling a sustainable world, today reported results for its fiscal 2022 fourth quarter and fiscal year ended June 30, 2022.

The Company revenue for the fourth fiscal quarter of 2022 was $887 million, an increase of 7% over the third quarter of 2022 and an increase of 10% over the fourth quarter of fiscal year 2021, over the top end of the company’s guidance. Operating income for the fourth fiscal quarter of FY22 was $114 million with diluted earnings per share of $0.23 on a GAAP basis. On a non-GAAP basis, operating income was $169 million with non-GAAP diluted earnings per share of $0.98. For fiscal year 2022, revenue was $3.32 billion with GAAP diluted earnings per share of $1.45. Non-GAAP diluted earnings per share for fiscal year 2022 was $3.72.

“II-VI set new records for quarterly revenue in the fourth quarter and significant quarterly growth year-over-year, in response to sustained robust demand across our businesses, and despite a challenging operating environment,” said Dr. Vincent D. Mattera, Jr., Chair and CEO.

“Our strong performance throughout the year accelerated into the fourth quarter with strong demand thanks to our deep customer relationships, decades of investments in technology and sophisticated manufacturing platforms and leading-edge products. Leveraging our vertically integrated operations and global footprint, we continue to navigate a complex supply environment and capture expanding opportunities across end markets. We continue our selective investments in capacity expansion and next-generation technology and product development as we drive continued leadership and sustainable growth across all our end markets.

Dr. Mattera continued, “On September 8, 2022, we will transition to our new name, Coherent Corp., launch our new brand, and begin trading with a new ticker symbol (Nasdaq: COHR), signaling an exciting new era for the Company and all our employees, investors, and other stakeholders.”

Table 1

Financial Metrics

$ Millions, except per share amounts and %

(Unaudited)

 

Three Months Ended

 

 

Year Ended

 

 

Jun 30,

 

Mar 31,

 

Jun 30,

 

 

Jun 30,

 

Jun 30,

 

 

 

2022

 

 

 

2022

 

 

 

2021

 

 

 

 

2022

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

887.0

 

 

$

827.7

 

 

$

808.0

 

 

 

$

3,316.6

 

 

$

3,105.9

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Gross Profit (3)

 

$

326.0

 

 

$

321.7

 

 

$

297.8

 

 

 

$

1,265.5

 

 

$

1,177.5

 

Non-GAAP Gross Profit (2)

 

$

343.4

 

 

$

335.7

 

 

$

311.7

 

 

 

$

1,321.5

 

 

$

1,235.0

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Operating Income (1)

 

$

114.2

 

 

$

106.8

 

 

$

97.1

 

 

 

$

414.3

 

 

$

402.1

 

Non-GAAP Operating Income (2)

 

$

168.6

 

 

$

172.0

 

 

$

148.5

 

 

 

$

650.2

 

 

$

601.5

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Net Earnings

 

$

43.6

 

 

$

49.0

 

 

$

82.3

 

 

 

$

234.8

 

 

$

297.6

 

Non-GAAP Net Earnings (2)

 

$

133.7

 

 

$

129.0

 

 

$

117.0

 

 

 

$

504.6

 

 

$

460.2

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Diluted Earnings Per Share

 

$

0.23

 

 

$

0.28

 

 

$

0.59

 

 

 

$

1.45

 

 

$

2.37

 

Non-GAAP Diluted Earnings Per Share (2)

 

$

0.98

 

 

$

0.95

 

 

$

0.88

 

 

 

$

3.72

 

 

$

3.73

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Selected Financial Metrics

 

 

 

 

 

 

 

 

 

 

 

GAAP Gross margin (3)

 

 

36.8%

 

 

 

38.9%

 

 

 

36.9%

 

 

 

 

38.2%

 

 

 

37.9%

 

Non-GAAP gross margin (2)

 

 

38.7%

 

 

 

40.6%

 

 

 

38.6%

 

 

 

 

39.8%

 

 

 

39.8%

 

GAAP Operating margin

 

 

12.9%

 

 

 

12.9%

 

 

 

12.0%

 

 

 

 

12.5%

 

 

 

12.9%

 

Non-GAAP operating margin (2)

 

 

19.0%

 

 

 

20.8%

 

 

 

18.4%

 

 

 

 

19.6%

 

 

 

19.4%

 

GAAP Return on sales

 

 

4.9%

 

 

 

5.9%

 

 

 

10.2%

 

 

 

 

7.1%

 

 

 

9.6%

 

Non-GAAP return on sales (2)

 

 

15.1%

 

 

 

15.6%

 

 

 

14.5%

 

 

 

 

15.2%

 

 

 

14.8%

 


(1)

GAAP Operating income is defined as earnings before income taxes, interest expense and other expense or income, net.

(2)

All non-GAAP amounts exclude certain adjustments for share-based compensation, acquired intangible amortization expense, expenses incurred in relation to the Coherent acquisition as well as integration and restructuring charges from the Finisar acquisition, start-up costs, and various one-time adjustments. See Table 4 for the Reconciliation of GAAP measures to non-GAAP measures.

(3)

GAAP gross profit basis for prior periods has been updated to include amortization of developed technology intangible assets, with a corresponding decrease to selling, general and administrative on GAAP basis.


Outlook

The outlook for the first fiscal 2023 quarter ending September 30, 2022 is revenue of $1,300 million to $1,400 million and earnings per diluted share on a non-GAAP basis of $0.77 to $0.90. These are at today’s exchange rate and today’s estimated tax impact of 25%, both of which are subject to variability. The non-GAAP earnings per share include the pre-tax amounts of $65 million in amortization, $30 million in share-based compensation, and $170 million in other costs, including costs to facilitate the integration of Coherent Inc. Non-GAAP adjustments are by their nature highly volatile, and we have low visibility as to the range that may be incurred in the future.

Conference Call & Webcast Information

The Company will host a conference call at 9:00 a.m. Eastern Time on Wednesday August 24, 2022 to discuss these results. Individuals wishing to participate in the webcast can access the event at the Company’s web site by visiting www.ii-vi.com or via this link. Equity analysts and others who wish to participate in the question-and-answer session of the conference call can pre-register at this link to receive dial-in numbers and a unique PIN.

The conference call will be recorded, and a replay will be available to interested parties who are unable to attend the live event. This service will be available on the company’s website beginning August 24, 2022, at 4:00 p.m. ET.

About II-VI Incorporated

II-VI Incorporated, a global leader in engineered materials and optoelectronic components, is a vertically integrated manufacturing company that develops innovative products for diversified applications in communications, materials processing, aerospace & defense, semiconductor capital equipment, life sciences, consumer electronics, and automotive markets. Headquartered in Saxonburg, Pennsylvania, U.S.A., the Company has research and development, manufacturing, sales, service, and distribution facilities worldwide. The Company produces a wide variety of application-specific photonic and electronic materials and components, and deploys them in various forms, including integrated with advanced software to support our customers. For more information, please visit us at www.ii-vi.com.

Forward-looking Statements

This press release contains forward-looking statements relating to future events and expectations that are based on certain assumptions and contingencies. The forward-looking statements are made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 and relate to the Company’s performance on a going-forward basis. The forward-looking statements in this press release involve risks and uncertainties, which could cause actual results, performance or trends to differ materially from those expressed in the forward-looking statements herein or in previous disclosures.

The Company believes that all forward-looking statements made by it in this press release have a reasonable basis, but there can be no assurance that management’s expectations, beliefs, or projections as expressed in the forward-looking statements will actually occur or prove to be correct. In addition to general industry and global economic conditions, factors that could cause actual results to differ materially from those discussed in the forward-looking statements in this press release include but are not limited to: (i) the failure of any one or more of the assumptions stated herein to prove to be correct; (ii) the risks relating to forward-looking statements and other “Risk Factors” discussed in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2021 and additional risk factors that may be identified from time to time in filings of the Company; (iii) the substantial indebtedness the Company incurred in connection with its acquisition of Coherent, Inc. (the “Transaction”) and the need to generate sufficient cash flows to service and repay such debt; (iv) the possibility that the Company may be unable to achieve expected synergies, operating efficiencies and other benefits within the expected time-frames or at all and to successfully integrate operations of Coherent, Inc. (“Coherent”) with those of the Company; (v) the possibility that such integration may be more difficult, time-consuming or costly than expected or that operating costs and business disruption (including, without limitation, disruptions in relationships with employees, customers or suppliers) may be greater than expected in connection with the Transaction; (vi) any unexpected costs, charges or expenses resulting from the Transaction; (vii) the risk that disruption from the Transaction materially and adversely affects the respective businesses and operations of the Company and Coherent; (viii) potential adverse reactions or changes to business relationships resulting from the completion of the Transaction; (ix) the ability of the Company to retain and hire key employees; (x) the purchasing patterns of customers and end users; (xiii) the timely release of new products, and acceptance of such new products by the market; (xi) the introduction of new products by competitors and other competitive responses; (xii) the Company’s ability to assimilate recently acquired businesses, and realize synergies, cost savings, and opportunities for growth in connection therewith, together with the risks, costs, and uncertainties associated with such acquisitions; (xiii) the Company’s ability to devise and execute strategies to respond to market conditions;   (xiv) the risks to realizing the benefits of investments in R&D and commercialization of innovations; (xv) the risks that the Company’s stock price will not trade in line with industrial technology leaders; and/or (xvi) the risks of business and economic disruption related to the currently ongoing COVID-19 outbreak and any other worldwide health epidemics or outbreaks that may arise. The Company disclaims any obligation to update information contained in these forward-looking statements, whether as a result of new information, future events or developments, or otherwise.

Use of Non-GAAP Financial Measures

The Company has disclosed financial measurements in this press release that present financial information considered to be non-GAAP financial measures. These measurements are not a substitute for GAAP measurements, although the Company's management uses these measurements as an aid in monitoring the Company's on-going financial performance. The non-GAAP net earnings, the non-GAAP earnings per share, the non-GAAP operating income, the non-GAAP gross profit, the non-GAAP internal research and development, the non-GAAP selling, general and administration, the non-GAAP interest and other (income) expense, and the non-GAAP income tax (benefit), measure earnings and operating income (loss), respectively, excluding non-recurring or unusual items that are considered by management to be outside the Company’s standard operation and excluding certain non-cash items. EBITDA is an adjusted non-GAAP financial measurement that is considered by management to be useful in measuring the profitability between companies within the industry by reflecting operating results of the Company excluding non-operating factors. There are limitations associated with the use of non-GAAP financial measures, including that such measures may not be entirely comparable to similarly titled measures used by other companies, due to potential differences among calculation methodologies. Thus, there can be no assurance whether (i) items excluded from the non-GAAP financial measures will occur in the future or (ii) there will be cash costs associated with items excluded from the non-GAAP financial measures. The Company compensates for these limitations by using these non-GAAP financial measures as supplements to GAAP financial measures and by providing the reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measures. Investors should consider adjusted measures in addition to, and not as a substitute for, or superior to, financial performance measures prepared in accordance with GAAP.

II-VI Incorporated and Subsidiaries

Condensed Consolidated Statements of Earnings (Unaudited)

($000 except per share data)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

June 30,

 

March 31,

 

June 30,

 

 

2022

 

2022

 

2021

 

 

 

 

 

 

 

Revenues

 

$

886,962

 

$

827,724

 

$

808,006

 

 

 

 

 

 

 

 

Costs, Expenses & Other Expense (Income)

 

 

 

 

 

 

Cost of goods sold

 

 

560,930

 

 

506,051

 

 

510,213

 

Internal research and development

 

 

95,917

 

 

96,895

 

 

83,768

 

Selling, general and administrative

 

 

115,862

 

 

118,009

 

 

116,832

 

Interest expense

 

 

48,502

 

 

43,499

 

 

14,066

 

Other expense (income), net

 

 

16,768

 

 

241

 

 

(10,124

)

Total Costs, Expenses, & Other Expense (Income)

 

 

837,979

 

 

764,695

 

 

714,755

 

 

 

 

 

 

 

 

Earnings Before Income Taxes

 

 

48,983

 

 

63,029

 

 

93,251

 

 

 

 

 

 

 

 

Income Taxes

 

 

5,347

 

 

14,027

 

 

10,957

 

 

 

 

 

 

 

 

Net Earnings

 

$

43,636

 

$

49,002

 

$

82,294

 

 

 

 

 

 

 

 

Less: Dividends on Preferred Stock

 

 

17,291

 

 

17,148

 

 

16,878

 

Net Earnings available to the Common Shareholders

 

$

26,345

 

$

31,854

 

$

65,416

 

 

 

 

 

 

 

 

Basic Earnings Per Share

 

$

0.25

 

$

0.30

 

$

0.62

 

 

 

 

 

 

 

 

Diluted Earnings Per Share

 

$

0.23

 

$

0.28

 

$

0.59

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Shares Outstanding - Basic

 

 

106,520

 

 

106,323

 

 

104,957

 

Average Shares Outstanding - Diluted

 

 

116,821

 

 

116,949

 

 

116,225

 

 

 

 

 

 

 

 

 

 

 

 


II-VI Incorporated and Subsidiaries

Condensed Consolidated Statements of Earnings (Unaudited)

($000 except per share data)

 

 

 

 

 

 

 

Year Ended

 

 

June 30,

 

June 30,

 

 

 

2022

 

 

 

2021

 

 

 

 

 

 

Revenues

 

$

3,316,616

 

 

$

3,105,891

 

 

 

 

 

 

Costs, Expenses & Other Expense (Income)

 

 

 

 

Cost of goods sold

 

 

2,051,120

 

 

 

1,928,432

 

Internal research and development

 

 

377,106

 

 

 

330,105

 

Selling, general and administrative

 

 

474,096

 

 

 

445,235

 

Interest expense

 

 

121,254

 

 

 

59,899

 

Other expense (income), net

 

 

11,233

 

 

 

(10,370

)

Total Costs, Expenses, & Other Expense (Income)

 

 

3,034,809

 

 

 

2,753,301

 

 

 

 

 

 

Earnings Before Income Taxes

 

 

281,807

 

 

 

352,590

 

 

 

 

 

 

Income Taxes

 

 

47,048

 

 

 

55,038

 

 

 

 

 

 

Net Earnings

 

$

234,759

 

 

$

297,552

 

 

 

 

 

 

Less: Dividends on Preferred Stock

 

 

68,225

 

 

 

37,231

 

Net Earnings available to the Common Shareholders

 

 

166,534

 

 

 

260,321

 

 

 

 

 

 

Basic Earnings Per Share

 

$

1.57

 

 

$

2.50

 

 

 

 

 

 

Diluted Earnings Per Share

 

$

1.45

 

 

$

2.37

 

 

 

 

 

 

Average Shares Outstanding - Basic

 

 

106,189

 

 

 

104,151

 

Average Shares Outstanding - Diluted

 

 

116,513

 

 

 

115,034

 

 

 

 

 

 

 

 

 

 


II-VI Incorporated and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)

($000)

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

June 30,

 

 

2022

 

 

2021

 

Assets

 

 

 

 

Current Assets

 

 

 

 

Cash, cash equivalents, and restricted cash

 

$

2,582,371

 

$

1,591,892

 

Accounts receivable

 

 

700,331

 

 

658,962

 

Inventories

 

 

902,559

 

 

695,828

 

Prepaid and refundable income taxes

 

 

19,585

 

 

13,095

 

Prepaid and other current assets

 

 

100,346

 

 

67,617

 

Total Current Assets

 

 

4,305,192

 

 

3,027,394

 

Property, plant & equipment, net

 

 

1,363,195

 

 

1,242,906

 

Goodwill

 

 

1,285,759

 

 

1,296,727

 

Other intangible assets, net

 

 

635,404

 

 

718,460

 

Deferred income taxes

 

 

31,714

 

 

33,498

 

Other assets

 

 

223,582

 

 

193,665

 

Total Assets

 

$

7,844,846

 

$

6,512,650

 

 

 

 

 

 

Liabilities, Mezzanine Equity and Shareholders’ Equity

 

 

 

 

Current Liabilities

 

 

 

 

Current portion of long-term debt

 

$

403,212

 

$

62,050

 

Accounts payable

 

 

434,917

 

 

294,486

 

Operating lease current liabilities

 

 

27,574

 

 

25,358

 

Accruals and other current liabilities

 

 

401,256

 

 

347,695

 

Total Current Liabilities

 

 

1,266,959

 

 

729,589

 

Long-term debt

 

 

1,897,214

 

 

1,313,091

 

Deferred income taxes

 

 

77,259

 

 

73,962

 

Operating lease liabilities

 

 

110,214

 

 

125,541

 

Other liabilities

 

 

109,922

 

 

138,119

 

Total Liabilities

 

 

3,461,568

 

 

2,380,302

 

Total Mezzanine Equity

 

 

766,803

 

 

726,178

 

Total Shareholders' Equity

 

 

3,616,475

 

 

3,406,170

 

Total Liabilities, Mezzanine Equity and Shareholders’ Equity

 

$

7,844,846

 

$

6,512,650

 

 

 

 

 

 

 

 

 


II-VI Incorporated and Subsidiaries

Condensed Consolidated Statements of Cash Flows (Unaudited)

($000)

 

Year Ended

 

 

June 30,

 

 

 

2022

 

 

 

2021

 

Cash Flows from Operating Activities

 

 

 

 

Net cash provided by operating activities

 

$

413,332

 

 

$

574,353

 

 

 

 

 

 

Cash Flows from Investing Activities

 

 

 

 

Additions to property, plant & equipment

 

 

(314,332

)

 

 

(146,337

)

Purchases of businesses, net of cash acquired

 

 

 

 

 

(34,394

)

Other investing activities

 

 

(5,750

)

 

 

7,774

 

Net cash used in investing activities

 

 

(320,082

)

 

 

(172,957

)

 

 

 

 

 

Cash Flows from Financing Activities

 

 

 

 

Proceeds from issuance of Senior Notes

 

 

990,000

 

 

 

 

Proceeds from issuance of common shares

 

 

 

 

 

460,000

 

Proceeds from issuance of Series A preferred shares

 

 

 

 

 

460,000

 

Proceeds from issuance of Series B preferred shares

 

 

 

 

 

750,000

 

Payment on Finisar Notes

 

 

(14,888

)

 

 

 

Payments on borrowings under Term A Facility

 

 

(62,050

)

 

 

(137,050

)

Payments on borrowings under Term B Facility

 

 

 

 

 

(714,600

)

Payments on borrowings under Revolving Credit Facility

 

 

 

 

 

(74,000

)

Debt issuance costs

 

 

(10,197

)

 

 

 

Equity issuance costs

 

 

 

 

 

(58,596

)

Proceeds from exercises of stock options and purchases of stock under employee stock purchase plan

 

 

17,858

 

 

 

32,360

 

Payments in satisfaction of employees' minimum tax obligations

 

 

(21,249

)

 

 

(19,701

)

Payment of dividends

 

 

(34,508

)

 

 

(20,319

)

Other financing activities

 

 

(2,013

)

 

 

(2,367

)

Net cash provided by financing activities

 

 

862,953

 

 

 

675,727

 

 

 

 

 

 

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

 

34,276

 

 

 

21,723

 

Net increase in cash, cash equivalents and restricted cash

 

 

990,479

 

 

 

1,098,846

 

Cash, Cash Equivalents, and Restricted Cash at Beginning of Period

 

 

1,591,892

 

 

 

493,046

 

Cash, Cash Equivalents, and Restricted Cash at End of Period

 

$

2,582,371

 

 

$

1,591,892

 

 

 

 

 

 

 

 

 

 


Table 2

Segment Revenues, GAAP Operating Income (Loss) & Margin, and

Non-GAAP Operating Income (Loss) & Margin*

$ Millions, except %

(Unaudited)

 

Three Months Ended

 

 

Year Ended

 

 

Jun 30,

 

Mar 31,

 

Jun 30,

 

 

Jun 30,

 

Jun 30,

 

 

 

2022

 

 

 

2022

 

 

 

2021

 

 

 

 

2022

 

 

 

2021

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

Photonic Solutions

 

$

597.4

 

 

$

567.8

 

 

$

549.7

 

 

 

$

2,226.2

 

 

$

2,038.3

 

Compound Semiconductors

 

 

289.6

 

 

 

259.9

 

 

 

258.3

 

 

 

 

1,090.4

 

 

 

1,067.6

 

Unallocated and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

$

887.0

 

 

$

827.7

 

 

$

808.0

 

 

 

$

3,316.6

 

 

$

3,105.9

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Operating Income (Loss):

 

 

 

 

 

 

 

 

 

 

 

Photonic Solutions

 

$

69.2

 

 

$

54.6

 

 

$

60.5

 

 

 

$

230.1

 

 

$

207.7

 

Compound Semiconductors

 

 

51.4

 

 

 

61.8

 

 

 

47.7

 

 

 

 

220.1

 

 

 

221.2

 

Unallocated and Other

 

 

(6.4

)

 

 

(9.6

)

 

 

(11.1

)

 

 

 

(35.9

)

 

 

(26.8

)

Consolidated

 

$

114.2

 

 

$

106.8

 

 

$

97.1

 

 

 

$

414.3

 

 

$

402.1

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Operating Income:

 

 

 

 

 

 

 

 

 

 

 

Photonic Solutions

 

$

91.7

 

 

$

81.8

 

 

$

87.4

 

 

 

$

334.4

 

 

$

324.3

 

Compound Semiconductors

 

 

76.9

 

 

 

90.2

 

 

 

61.1

 

 

 

 

315.8

 

 

 

277.2

 

Unallocated and Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

$

168.6

 

 

$

172.0

 

 

$

148.5

 

 

 

$

650.2

 

 

$

601.5

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Operating Margin:

 

 

 

 

 

 

 

 

 

 

 

Photonic Solutions

 

 

11.6%

 

 

 

9.6%

 

 

 

11.0%

 

 

 

 

10.3%

 

 

 

10.2%

 

Compound Semiconductors

 

 

17.7%

 

 

 

23.8%

 

 

 

18.5%

 

 

 

 

20.2%

 

 

 

20.7%

 

Consolidated

 

 

12.9%

 

 

 

12.9%

 

 

 

12.0%

 

 

 

 

12.5%

 

 

 

12.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Operating Margin:

 

 

 

 

 

 

 

 

 

 

 

Photonic Solutions

 

 

15.3%

 

 

 

14.4%

 

 

 

15.9%

 

 

 

 

15.0%

 

 

 

15.9%

 

Compound Semiconductors

 

 

26.6%

 

 

 

34.7%

 

 

 

23.7%

 

 

 

 

29.0%

 

 

 

26.0%

 

Consolidated

 

 

19.0%

 

 

 

20.8%

 

 

 

18.4%

 

 

 

 

19.6%

 

 

 

19.4%

 

* “Unallocated and Other” primarily includes transaction costs related to the Coherent transaction.

Table 3

Reconciliation of Segment Non-GAAP Operating Income (Loss) to

GAAP Segment Operating Income (Loss)

$ Millions

(Unaudited)

 

Three Months Ended

 

 

Year Ended

 

 

Jun 30,

 

Mar 31,

 

Jun 30,

 

 

Jun 30,

 

Jun 30,

 

 

 

2022

 

 

 

2022

 

 

 

2021

 

 

 

 

2022

 

 

 

2021

 

Non-GAAP Photonic Solutions Operating Income

 

$

91.7

 

 

$

81.8

 

 

$

87.4

 

 

 

$

334.4

 

 

$

324.3

 

Share-based compensation

 

 

(3.1

)

 

 

(8.8

)

 

 

(9.4

)

 

 

 

(30.9

)

 

 

(39.6

)

Amortization of acquired intangibles

 

 

(16.6

)

 

 

(16.5

)

 

 

(17.3

)

 

 

 

(66.7

)

 

 

(69.2

)

Restructuring, transaction expenses and other

 

 

(2.8

)

 

 

(1.9

)

 

 

(0.2

)

 

 

 

(6.7

)

 

 

(7.8

)

Photonic Solutions GAAP Operating Income

 

$

69.2

 

 

$

54.6

 

 

$

60.5

 

 

 

$

230.1

 

 

$

207.7

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Compound Semiconductors Operating Income

 

$

76.9

 

 

$

90.2

 

 

$

61.1

 

 

 

$

315.8

 

 

$

277.2

 

Share-based compensation

 

 

(10.5

)

 

 

(9.2

)

 

 

(9.3

)

 

 

 

(42.2

)

 

 

(39.4

)

Amortization of acquired intangibles

 

 

(3.2

)

 

 

(2.9

)

 

 

(3.3

)

 

 

 

(12.9

)

 

 

(13.0

)

Restructuring, transaction expenses, and other

 

 

(5.4

)

 

 

(1.7

)

 

 

(0.8

)

 

 

 

(8.3

)

 

 

(3.6

)

Start-up costs

 

$

(6.4

)

 

$

(14.6

)

 

$

 

 

 

$

(32.3

)

 

$

 

Compound Semiconductors GAAP Operating Income

 

$

51.4

 

 

$

61.8

 

 

$

47.7

 

 

 

$

220.1

 

 

$

221.2

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Unallocated and Other Operating Income (Loss)

 

$

 

 

$

 

 

$

 

 

 

$

 

 

$

 

Restructuring, transaction expenses, and other

 

 

(6.4

)

 

 

(9.6

)

 

 

(11.1

)

 

 

 

(35.9

)

 

 

(26.8

)

Unallocated and Other GAAP Operating Income (Loss)

 

$

(6.4

)

 

$

(9.6

)

 

$

(11.1

)

 

 

$

(35.9

)

 

$

(26.8

)

 

 

 

 

 

 

 

 

 

 

 

 

Total GAAP Operating Income

 

$

114.2

 

 

$

106.8

 

 

$

97.1

 

 

 

$

414.3

 

 

$

402.1

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Operating Income

 

$

168.6

 

 

$

172.0

 

 

$

148.5

 

 

 

$

650.2

 

 

$

601.5

 

 

 

 

 

 

 

 

 

 

 

 

 

*Amounts may not recalculate due to rounding.

Table 4          ...