Technology Stocks

II-VI, Inc. (NASDAQ:IIVI) Logs Another Win for the Chip-Cycle-Isn’t-Over Crowd

II-VI, Inc. (NASDAQ:IIVI) just announced results for its fiscal first quarter ended September 30, 2018. “We delivered a solid first quarter, and ended with a record order backlog. Compared to Q1FY18, the communications end market clearly remains strong for II-VI, growing 20% year over year, our military business grew 30%, our industrial end market revenue grew 10%, and demand for 3D sensing exceeded our expectations with shipments growing over 200%. Sales of SiC substrates grew more than 50%, and our increases in scale of SiC manufacturing positions us well to capture longer term opportunities as 5G and Electric Vehicles ramp,” said Dr. Vincent D. Mattera, Jr.

“We recently issued a press release announcing our strategic collaboration with the market leader in GaN RF devices, Sumitomo Electric Device Innovations, Inc. to manufacture state-of-the-art GaN on SiC devices to enable next generation wireless networks as part of our investment in an optoelectronic materials and device platform. We continue to deepen our engagements with large and strategic customers across all end markets. We expect to deliver continued strong operating performance in fiscal Q2 2019, even as we continue to make strategic investments and scale our operations to meet accelerating customers’ demands.”

II-VI, Inc. (NASDAQ:IIVI) bills itself as a company that develops, manufactures, and markets engineered materials, and optoelectronic components and devices worldwide.

The company operates in three segments: II-VI Laser Solutions, II-VI Photonics, and II-VI Performance Products. The II-VI Laser Solutions segment offers optical and electro-optical components and materials primarily used in high-power CO2 lasers; fiber-delivered beam delivery systems, and processing tools and direct diode lasers for industrial lasers; direct diode laser modules, sub-systems, and systems; super-hard materials processing laser systems; and compound semiconductor epitaxial and gallium arsenide wafers.

The II-VI Photonics segment provides crystal materials, optics, microchip lasers, and optoelectronic modules for use in optical communication networks and other consumer, life sciences, and commercial applications. It also offers pump lasers, optical isolators, and optical amplifiers and micro-optics for optical amplifiers for terrestrial and submarine applications within the optical communications market.

The II-VI Performance Products segment provides infrared optical components and high-precision optical assemblies for military, medical, and commercial laser imaging applications; and silicon carbide engineered materials for thermoelectric devices and subsystems for silicon carbide applications.

The company serves OEMs, laser end-users, system integrators of high-power lasers, manufacturers of equipment and devices for the industrial, optical communications, military, semiconductor, medical and life science markets, consumers, the U.S. government prime contractors, various U.S. government agencies, and thermoelectric integrators. II-VI Incorporated was founded in 1971 and is headquartered in Saxonburg, Pennsylvania.


It’s Good!

As noted above, IIVI just announced results for its fiscal first quarter ended September 30, 2018.

This announcement has popped the stock higher, which certainly isn’t surprising. IIVI shareholders are now sitting on about 22% in gains over the past week. Shares of the stock have powered higher over the past month, rallying roughly 13% in that time on strong overall action.

According to the release, “The outlook for the second fiscal quarter ending December 31, 2018 is revenues of $333 million to $345 million and earnings per diluted share of $0.44 to $0.48 including $0.05 per share of one time costs and transaction costs for our transactions and collaborations recently announced. On an adjusted basis, earnings per diluted share is estimated at $0.65 to $0.69 which includes $0.10 for share based compensation, $0.06 for amortization expense, and $0.05 for one time and transaction costs, but excluding any refinements to the transition tax as the Company finalizes its implementation of the Tax Cuts and Jobs Act.  This is all at prevailing exchange rates.”

II-VI, Inc. (NASDAQ:IIVI) generated sales of $321.1M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 8.9% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($247M against $236.5M).

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