- II-VI Inc (NASDAQ: IIVI) reported third-quarter FY22 revenue growth of 5.7% year-on-year to $827.7 million, beating the consensus of $804.8 million.
- Segments: Photonic Solutions revenue increased 11.8% Y/Y to $567.8 million. Revenue from Compound Semiconductors declined 5.6% Y/Y to $259.9 million.
- II-VI recorded bookings of $1.2 billion, up 48% Y/Y, and a backlog of $2.1 billion, up 88% Y/Y.
- Margins: The non-GAAP gross margin expanded 170 bps to 40.6%. The non-GAAP operating margin expanded 280 bps to 20.8%.
- Non-GAAP EPS of $0.95 beat the consensus of $0.85.
- II-VI held $2.6 billion in cash and equivalents.
- "We experienced a tremendous surge in demand, booking $1.2 billion of new orders, an increase of 48% compared to a year ago. Our backlog grew 88% year-over-year to $2.1 billion. Clearly, we continue to benefit from a broad and diverse portfolio of differentiated products that serve a rapidly growing list of industry-leading customers," said Dr. Vincent D. Mattera Jr, Chair and CEO.
- Dr. Mattera continued, "This was driven by strength in our datacom networking business, for large enterprises, as well as for hyperscale datacenters and supercomputing clusters that underpin the growth of cloud and the metaverse."
- Outlook: II-VI sees Q4 revenue of $840 million - $880 million, above the consensus of $835.8 million.
- II-VI sees non-GAAP EPS of $0.85 - $1.00 versus the consensus of $0.92.
- Price Action: IIVI shares traded higher by 6.26% at $64 in the premarket session on the last check Tuesday.
Read at Benzinga