II-VI Incorporated has reported results for its fiscal 2020 first quarter ended September 30, 2019.
On September 24th, II-VI closed the Finisar transaction, the largest acquisition in its history. As a result of this acquisition, II-VI became the largest component and subsystem supplier in the global optical communications market as well as a leader in photonic solutions and compound semiconductors. The company ended the first quarter with a $721 million backlog and experienced a Book/Bill ratio of 1.10.
After acquiring Finisar, II-VI Incorporated has focused more on achieving its long-range model, including strategy execution, identifying & closing gaps. The company’s sales team is already experiencing higher levels of engagement with its key customers, which will soon lead to meaningful revenue synergies.
Growth in the commercial markets was mixed during the first quarter as it was affected by well-known macro factors, including the recent overall slowing in industrial demand. However, II-VI remains optimistic about the long-term growth prospects for all of its commercial end markets. Its Aerospace and Defense business delivered a very strong quarter, in part due to the successful integration of recent acquisitions. The company has also put in place the measures to operate the Finisar WSS business separately as required by regulators due to the strong market position of both companies.