II-VI Reports Mixed Q1 Results, Sees Q2 Revenue Below Consensus

II-VI Inc IIVI reported first-quarter FY22 revenue growth of 9% year-on-year to $795.1 million, missing the consensus of $808.6 million.
Segments: Photonic Solutions revenue increased 7.7% Y/Y to $536 million. Revenue from Compound Semiconductors rose 12.5% Y/Y to $259.1 million.
II-VI recorded a backlog of $1.4 billion.
Margins: The non-GAAP gross margin remained flat at 40%. The non-GAAP operating margin remained stable at around 18.9%.
Non-GAAP EPS of $0.87 beat the consensus of $0.83.
II-VI held $1.6 billion in cash and equivalents and generated $52.3 million in operating cash flow.
"The quarter saw very strong performance in our Industrial business, growing in excess of 50% compared to Q1FY21," said CEO Vincent D. Mattera.
II-VI expects the pending acquisition of Coherent Inc COHR to close during the Q1 CY22.
Outlook: II-VI sees Q2 revenue of $790 million - $840 million, below the consensus of $844.6 million.
II-VI sees non-GAAP EPS of $0.75 - $0.95 versus the consensus of $0.93.
Price Action: IIVI shares traded higher by 2.64% at $65.38 on the last check Tuesday.