II-VI Reports Forecast-Beating Fourth-Quarter Results at Close of Fiscal Year
Results released as company acquires outstanding shares of Ascatron AB, INNOViON
II-VI has announced its fourth-quarter and fiscal year results. The company reported record quarterly revenues of $746.2 million (up $119.2 million from the quarter ending in March) and quarterly earnings per share (EPS) of $1.18 (up $0.53 year over year). II-VI also reported a record full-year cash flow from operations of more than $297.3 million, and a full-year revenue of $2.38 billion — an increase of $1.36 billion from 2019.
“In the fourth quarter, we remained and continue to remain vigilant and steadfast in ensuring the health and safety of our global workforce while striving to meet our customers’ growing expectations despite the continuation and acceleration of COVID-19,” II-VI CEO Vincent D. “Chuck” Mattera Jr. said. He cited continued strong demand in the 3D sensing and communications market, led by continued growth of 5G deployment and upgrades to network infrastructure, as contributors to the company’s strong fiscal year.
“We achieved record cash flow from operations, undertook a very successful equity raise, and delivered free cash flow at about $150 million above the acquisition business case,” Mattera Jr. said. “Our cash balance now stands at $493 million, an increase of $105 million from the previous quarter, and our post-equity raise leverage ratio is approximately 2, down from 3.8 (on) March 31, 2020. Our backlog of just under $1 billion provides us with significant momentum as we enter fiscal year 2021.”
The company’s quarterly revenue surpassed the Zacks Consensus Estimate by 3.71%. In announcing its results, II-VI provided an outlook for the first quarter of 2021, ending Sept. 30, 2020. It predicts revenue of $700 million to $750 million, and earnings per share (on a non-GAAP basis) in the range of $0.45 to $0.60.
In addition to reporting its annual financial results, II-VI announced it has entered into a definitive agreement to acquire all outstanding shares of Ascatron AB, a producer of silicon carbide (SiC) epitaxial wafers and devices for power electronics. II-VI will also acquire all outstanding interests of the owners of the parent of INNOViON Corp. INNOViON, with 30 implanters around the world supporting capabilities in semiconductor materials processing for up to 300-mm wafers, develops ion implantation technology for silicon and compound semiconductor devices.
The acquisitions of technology complement II-VI’s existing technologies, as well as the SiC device technology the company recently licensed from General Electric, Mattera Jr. said. The combination of capabilities will allow II-VI to achieve vertically integrated 150-mm SiC technology platforms in-house, meeting and addressing growing demand for SiC power electronics, he said.
Silicon carbide applications currently power advances to electric vehicles, renewable energy, microgrids, and power supplies for data storage and communications.
II-VI fourth-quarter and fiscal year financial results are available here.
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