Coherent (COHR) 6 May 212021 Q3 Earnings call transcript

Good day and welcome to the II-VI Fiscal Q3 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mary Jane Raymond, Chief Financial Officer. Please go ahead.

Thank you, Shelby and good morning. Raymond, Financial Jane II-VI here Mary Incorporated. am the Officer Chief at I earnings the today fiscal to call Welcome our for year third 'XX. of quarter With today on call Dr. me the are Chief and Executive Chuck Mattera, Dr. our Officer; Semiconductor Chief Strategy the the Giovanni Barbarossa, Segment. Officer our President and of Compound This Thursday, X, recorded XXXX. on being call is May

Our are on our the website, investor presentation and press the investor relations ii-vi.com. release updated available tab of

can only. today a the to possibly during reflect of undertake forward-looking Form subject law. may as are our today this Form context these list ended update be XX-K are X, any today, statements are for Just obligation to by on reminder, any the various factors make as well materially. XX, as to required S-X in August teleconference found except given in events filed of XXXX, and not risk filed May year in of They subsequent the subject we to statements A as We factors June XXXX do change, to risk our known XXXX.

not means today meeting requirements any of constitute States United securities. XXXX of amended. shall XX of offering as offer except or the to do prospectus, solicitation to of No remarks Our securities made of the be buy of sell a an by offer an Section the Securities Act

Chuck that, call, turn document to the investor to over will present measures let With that also today's as measures, respect we found end Dr. those it such or are press GAAP reconciliations Finally, at me the to of which includes with the presentation. Mattera. some non-GAAP release the for each

a your time thank would like you our And us for world time challenge for It's of a of Mary great and too. II-VI today. in need all Thanks, I interest joining great to Jane. for

remains introduction of consistent innovative enable our than of much more a precisely well of do, committed squared we is are and from the pandemic value delivering aware things. surging to now along hard who of to I and vaccines short, take to difficult that all incalculable on top through the global the to to the the employees vision order once of world and course grateful to who change, and the have a nothing II-VI world people That in we develop community and vaccines are lead mitigated during of viruses what as facilities transformed In our India. the so charted We our employees response our a The stakeholder within opportunity our way. recognize impact the priority there's quarter have toll changing generations. am and vital like off. are our would we future the with long-term suffering again to better life this global to to who and battling the our sustainability entire today, safety in team new COVID-XX. the I materials scientific pandemic

also want used I for to components We and thermal recognize testing who of been PCR for prayers. and people vaccine have to science, optical makers by in vital pandemic diagnostic life enabling all the testing management development. will the the II-VI the of world our supplying of keep COVID-XX world instruments filters our employees throughout around

focus our exciting of growth very Turning to on continue drivers business. which the business, quarter QX to the in we was a

as were for XX, As the on March Coherent. we successful bidder selected

some three laser as complementary cap S-X solutions expertise industrial have focus add years applications as on pioneers time. with and of regarded and see discussing Life the a the And can emerging markets Sciences, will II-VI's their with strategic to semi processing. we defense, We important combination strength you industrial been for for precision and for and and known II-VI for have laser of in manufacturing, markets. possible aerospace equipment, Coherent Coherent them

to expanding our deep market. by expand date. acquisition expand Bain our markets on in opportunity sales, breakthrough be also around excited with supply and our teams combination great access are provide will synergy The We the service Capital to partnering an best endeavor. bring to technical to domain to resources about customers plan. a our serve unmatched and solutions with knowledge be the largest the will continue laser chain to will world to delivering new Coherent technologies us And

revenue We the exceeded end million. guidance $XXX was million. QX $XXX Our of top of our

communications of $X.XX optical supported book-to-bill ROTEM that billion weakness we quarter, XX% with year-over-year. products. We our backlog. the ratio X.XX by our the for We our backlog and saw quarter view grew in the underscore ended recorded our remain revenue checks and no of Our strong record a industry a transceivers, strong And products. for comm for demand will demand current coherent data our optics signs

to of chain. face our continues unaffected we the team a job supply than X% of less as ROTEM sales global coherent managing our impact of quarter for missed in the our plan of shipments chain in and to supply the and shortages, stress the increased our Even supply transceivers, optics by increased demand, due send original shortages. supply basically to products of continue chain, we do mitigating risk reported fantastic Although, chain were

operate continue I our in begin we been caution the supply the revenue at our Our achieve that In relatively to the of in transceiver to output may we locations range wide able the our regarding have that finish chain world. abundance result least safety are in including Also, by a as throughout to synergies the continue scale that shortages. QX well. of reflects will protocols business facilities. may output QX be affected constrain serving the our through countries, from the us with chain to an some believe of COVID-XX that we certain for deliver our guidance acquisition supply US,

we within lead on quality well redundancy will and a management increased supply the as times resiliency into maintain for on chains building We discipline costs, about And will and maintain risk a our long distributed relentless footprint. diversified focus as term. our

we the implied market to are by exposed that trends are strong mega drivers growth enabling. We

In addition the the positive and the new of and we transformation underway. a on in of well enabling, are face with of evidence fronts, that redefinition we news the of the progress pace increased including an forecasts normal to emerging are many recovery accelerating pleased economic GDP COVID-XX, digital

of Looking be continue very cap mega ahead mobile, of start along semi trends to announcements exciting. stimulus the in irreversible the underpin apparent cycle infrastructure multiyear of the to electric, impact with other equipment, we that investments, and intelligent an

a a laser aftermarket, quarter industrial all-time quarter revenues from saw of example As the March the one were of particular the strength possible indicator, XXXX. leading the whose same at during level of we record

trends, cases. computing buildup that addition, new the end including several markets businesses. And of new recently demand healthy. to continue semi of emerge to of growth And AI of very fabs mega our have are the expected In proliferation the use with drivers are the announced, the era cap been a drive

proud our on XXth to take June place that know Finally, anniversary XX. will I'm

is foregone. And so soon will I the us, II-VI end all the be of that an believe behind extraordinary to With come. yet best beginning be excitement that for here

accelerating to continue enterprise of change. the in As and reinvent irreversible face we the

advanced yesterday also We to that sense are clarify innovators like about on disruptive their relationship a investments of proud that future our are Apple technologies award in the strategic profoundly many Apple at yesterday our having help be to our committed so Apple large of long-term of Their importance manufacturing million can the products The focused scale. $XXX an impact in positive should from to serving business announcement manufactured announcement and to II-VI world. be on by from up fund.

will Apple in As of II-VI's their stated for accelerate future announcement iPhones. delivery this components

leaders about We new to through many positive technologies the adoption enthusiastic we ahead. to over partnerships like enable the the changes with of are expanding that expect Apple years our unfold market of

we Giovanni? trusted look of our that, honored relationship. Compound Giovanni are detail our over to President Barbarossa, segment, Strategy turn forward the Chief long-standing QX of to key I'll QX. Officer Semiconductors be Giovanni With some and the We Dr. of the drivers continuing will Apple's to and and it our partner,

The Thank you, Apple was indeed exciting. announcement chuck. very

face are our of that enabling features, important technology We Memoji mode proud including ID, iPhone many emoji, selfie. mix is and

The more create XD light improves of Apple scanner a and map the which the as stated, realistic low augmented to LIDAR enables experiences. reality addition, In allows photography, cameras environment, announcement

US We are in our long-standing proud the with of through collaboration jobs Apple. creating hundreds high of tech

shipping As new design sensing with for on global to same we to the and global the customers. multiple business market. facilities position current a doubled wins how XD our this and is great over the future components And with in quarter to are quarter qualified patent? are All year almost difficulties last

module illumination drivers, electronics technology introduced In and for recently fact, flood the VCSEL with on we're platform multi working expanding the junction, and sensing platforms.

the pattern. in year the to seasonal We 'XX fiscal follow expect for XD sensing revenue usual QX

we're that focused the for will in on QX. squarely While preparing run, calendar begin

of quarter, applications. imaging the business and set to our diverse for rest year-over-year the of grew advanced a defense driven lasers adoptions the XX% of by Turning and increasing sequentially XX% aerospace in optics and

strong particularly from web-scale and both datacom, sales customers. a our communication saw and Our across pull customer big telecom

transceivers. our bandwidth. by market positioned capable datacenter silicon, At will both growth demands to scale at data order to two optical was pace we for the next drive circuit in products time, experiencing move web XXX G QX rates disaggregated of The revenue revolution which of optical to XXX and book-to-bill integrated a which leveraging networks supporting These wavelength. communication the example, our with transformation photonic for accelerating a pull in has the For continued the are and of rates. indium five as second the the towards our strong market but continue ratio generation are keep which with in doubled forecasted of XXX are almost optical data enabling interfaces resulting deployment phosphide energy are and higher lead on quarter the continues carriers G platforms to same with to operators

market The experienced leading market fast-growing expansion in growth during we position to We continue also are our PMA opportunities we by market. enable modules, a the quarter. that and excited components, exciting this the solutions are and being believe to integrated industrial for

systems the our optics, in for customized batteries Americas. and levels, assembly revenue this delivery market Globally, all-time and pre-pandemic laser our driven year-over-year electric the of the in sequentially across coX in aftermarket for the an in reach systems Our revenue for world. components, laser of optics aftermarket XX% reaches vehicle largest beam types by high manufacturers will laser grew and all fiber revenue growth

customers business doubled business thermal driven solutions for optics Sciences discrete of including quarter management grew for and consecutive filters, PCR Life testing. These the for our Our nearly applications, optical fourth sequentially XX about by over portfolio to a markets. demand Sales over year. QX, last from this of in to X% with end grew increasing ago a buyers compared [Indiscernible] year in X% sales year-over-year year, total revenue XX% to

steady module continue device in we accelerating our expansion. capacity to While progress our make building multi and business, in

Our front XX% our are market products on materials the engineering semiconductor both sequentially. our and line. into the grew lines all back capital end out equipment sold for And end of the of this product sales

capacity the and We last deriving cycle, we of manufacturing technology we accelerating which growth, R&D globally Shanghai, American inaugurated multiyear continue is underway. ahead support open and a which in from the The Chuck investment To Center growth earlier to new month. demand referenced is North expand Asian that markets. this our from coming both GDP

material campus in serve number to of We lab better customers a processing our China. applications industrial laser to open in Suzhou growing also

on by operations Finally, our to positive which for electric electric set vehicles. we silicon vehicle in market expected largest global opening globally, line China, Suzhou including wafer campus with market be to our expected is global the better finishing the carbide

are those in will Jane? for large including innovations, over our adding compound to carbide over jobs wide R&D strategic turn customers of that, of silicon XX semiconductor many the our With US. to base Jane. our Mary to Mary over investments it Accordingly, asking with of we accelerate next band positions in us months, global over XX let the our me XXX Finally, platforms. exciting team anticipate to XXX

Giovanni you, and good Thank morning.

and of one like case to you recently colleagues was Thank in in I'd much. for as also these remarkable around by in challenging humming thank times. keep to it, companies First, very factories best efforts their Forbes. recognized America. midsize the my Thank the you, world our II-VI you fabs missed Forbes

includes of the was non-GAAP non-GAAP well and Turning margins The XX%. and quarter. total margin XX.X% the work the pressure to of operating XX.X% the quarter of for before the semies compound about closed. on similar segment non-GAAP. in in strong were margin the our were acquisition non-GAAP margin the gross reported for quarter, operating million, costs operating Finisar photonics right put by was time. driven lost margins million At gross is And quarter, the included non-GAAP remain This semiconductors, to $X $X.X margins margin non-GAAP which level, margins these to downward COVID the collectively incurred maintain compound expenses workplaces II-VI last mix. in safe ahead and the XX.X% were

Our and months. the XXX ship our just and These control. II-VI of are compound $X.XX GAAP cost combined driven and over total. XX% $XXX that amortization, but celebrated comp billion orders and expenses, over $XXX when share record was are excluding of or the synergies the operating of below XX% XXX The OpEx integration for excluding $XX points shares. stock the OpEx of revenue amortization, $XX GAAP semiconductors. comp Quarterly of close to million, over million of was was XX contains it million next non-GAAP and costs. $XX achievement transaction million million photonics costs. The results backlog the incentives basis ongoing $X.XX million plus SG&A of by are will nearly percent M&A and of million Non-GAAP consists revenue and with of tax acquisition was million stock - $XX $XXX EPS diluted prior after non-GAAP of - in $XXX were for in XX our million in $X. adjustments which was R&D, EPS count improvements GAAP backlog

in release. The count XXX share tables last GAAP for million million press comp are two diluted the million non-GAAP $XX and calculations COGS in EPS shares. was million the the the was OpEx. in $X Stock Non-GAAP quarter, $XX of For and

position our $XX QX We million expect $XX be $XX stock Cash was in and $XX down paid million million. million, cash from flow addition free to we quarter for to debt of flow the was operations the comp The in required to were moved a payment of quarter million. cash $XX this million. debt quarter position QX, the Capital million. in net expense $XX interest In million. $XX our was net $XX of expenditures

year, during to Depreciation we of and the This integration until 'XX Coherent our of we compound Malaysian particularly in we of Capital for XX% Super million the for we million investment to the the XX% quarter. and form has expectation carries paid status, issuance, around growth, preferred as we income trading and mixed billion $X.X our million partnership quarter range the of the R&D our option that the for $XX be in QX to is in CapEx the in drives B and We principal of two will high between $X.X $XX.X expense $XXX the $XX period the A cannot is for dividend cash advice primarily their the deductions, with depreciation With FX be a we XX% the of Swiss income increased driven million from year M&A had several the $XX to and the the a investment in in a non-GAAP For The respect of support other items years. for net from receipt the are to for dividend our in expect due This status funds. to mark-to-market renewed preferred $XXX same signing to capitalized franc half was was include Series XX% forecasted expect quarter stock. the million and committed total to in semiconductors. million deducted new happy expect costs in million In in renewals and million rate Finisar. in be gain between and and forward QX, stock investment QX very, about The forward of of tech for was the stock forward. of first to is X% which by largely gain the our deducted quarter million dividend be $XXX stock This manner effective price world. Bain. a currencies. had II-VI the these four already exercises the very tech tax received XX%. preferred the changes XX% rate Ringgit. our reversal fiscal The $X.X the used countries; rate changes are and in they prior due costs tax to rate that to go Bain agreement equity. annual XX%. rate in million to is reduced high enhanced. XX% be a for We the making tax our Bain between tax the the tax for look between counsel first Series of year a receiving $XX.X

first Now repeat. received, of not been funds tranche has that the this will

Turning to the outlook on QX.

by Our announcement demand record indicate Apple yesterday's continued backlog and strong trends.

year 'XX the for budgeted X% original is to Our year our the about quarters. of replace that having restrictions outlook ahead to three revenues did within We including whole our budget, consolidated our Huawei. of fiscal on due

working wider few COVID-XX could end. For simply an range protocols, potential the rigorous in measure guidance and process continued finished Q, impact of some goods reflects supply ability which year affect which the to have our of our risks, related convert chain extra inventory our caution last months the increased to of to our by

fourth XX XXX basis share million at quarter to outlook revenue to June $XXX XXXX the non-GAAP and $X.XX a Our million shares. on million to earnings $XXX expected per is for ending for be $X.XX at

of deduction tax at accounts for rate of net expect we stock exchange Bain rate $XX.X of about the Series anti-dilutive. This $X.XX. the A from XX%. is today's an estimated be income to and B the preferred includes For EPS dividend the and QX, the range and both the This Series million

earnings in is XXX add amount share, in the million items, and non-GAAP the dollar count GAAP of the for count rate, back transaction GAAP subject integration actual exchange for million XXX pretax all For comp, share the rates, the million stock $XX and of amortization, non-GAAP shares $XX to the estimated tax non-GAAP, $XX and earnings per change. share million to we are QX The in million amounts costs. and

both not of to a just contain reminder, which as from Before regulations, due ongoing competition, and shortages, upstream up. mix, results requirements changes downstream, COVID-XX we including conditions. its changes chain combat today to also factors, one a but We would forecasts may to economic firm in the and to that differ product in supply variety customer go our no our actual Q&A, limit may questions virus answers follow question with general to limited orders, each ask

would everyone in to we like today. and try get call the As during

end expect AM. line may open for call to Shelby, at We this XX you the questions.

[Operator take of Genuity. Dorsheimer our from Instructions] We'll Jed question first Canaccord

have only nitride guess question for And proposition I seems XXXX will strategic guess phosphide. the application. as an that phosphide the around I the on indium specifically, near my supply forces Thanks. the and yet driving in presents one would and it on value quantifying from gallium assuming question more of of both indium impact optical be and well opportunity the as else that AI given ask that the somebody the I on most chain.

and do stations proposition voltage moving devices? see to gallium similarly to value PAS when the the that So lower base materialize you on from nitride, starting and

phosphide Jersey. on And I mentioned from with one continue year for to actually now as likewise and respect in we investing take six-inch are our hidden partnership and Sumitomo really half a nitride, at the was year progress hi, position a the that a we Jed, Absolutely. R&D. I with off heavily a to applications. of working hard we your platform, in with very of maybe so are indium in is would least thanks line Finisar, Also, And with expect gallium that Giovanni. gems number Warren, made our say to New The the indium now which make qualify to our phosphide question, valuable. it we

fiscal year, the we of on some So we'll by that impact mid next see our think growth.

principal we carries and X% before to turn a just preferred you second that's years. question, please let small the correct investment paid the me misspeak the in stock, I of a dividend capitalized stock had four all to for the for to respect the Series Actually, first with something. B

So that sorry for misspeak.

Okay, Shelby. go ahead,

Paul Silverstein with We'll take Cowen. our next question from

would any Yes, guys, that the appears you're the behind you putting to the for if give numbers I it to seem be given I provide? X% can 'XX showed represented, want in top packed. that insight growth soft you drivers you're be remember that say a proxy number, room in very Coherent you line insight fiscal lies particular, looking what to it's at all the any in about the revenue can

it's Paul, Mary hi, Sure, Jane.

whether pandemic, of includes of projection First several we, trade chain the opportunities things be of all, lots restrictions, and that. shortages, our S-X it supply other evaluations risk, and like

factors those present year present and of this were budget. All when our did we

gone For say be successfully them away. not that have year fair all of it fiscal we have but those, offset to probably 'XX, several of would

And risks, fiscal 'XX. so ones have in of if presenting we many other not year these themselves

we as the are like say be 'XX is now, as and colleagues, guidance. As our not did will doing the offset I them in at be be forward, we to as budget working forward, XXXX. would what quarterly company risks guidance, And on seeing are meant the to our we give projections do this best we why very go we, those going to looks can we

Capital. next from Ananda Loop our take We'll Baruah with question

to I you and technology of get sensitive just remark. integrated your your guys view maybe appreciate sort clarify marketplace use how up I that that. companies the clarification on around XD so appreciate morning, Really VCSEL would question. a VCSEL the But good and if that your the really thoughts may be. technology, of remark on if involvement of love end involvement perspective just Giovanni and you technology. to flood digital favorably earlier sounded made becoming perspective it. that's integrated, on of This conversation more get illuminator may it the Hi, integrated the but partially taking VCSEL for more And use a what integration missed want in being roadmap Giovanni's like this about begun

Thanks augmented is be This with just six-inch of we beginning here. a to for our quarter reality, the year. new And journey Ananda. the were, generally VCSEL, - electronics years is virtual Obviously, doubled reality remarks, in arsenide on Thanks did over speaking, consumer started gallium the your this we enable this I as not during and next - the for products, last the vertically question. market to applications generation integrated said the Giovanni investment revenue ago prepared meant for we platform as you know, now.

expect clearly, have And gaining we the years. grow deny in continue, to many gaining over continue next - few the share, share are So, that will from will been innovations. next share to share, essentially we quarters share, we gain I and

of junctions We family to products. the number eventually multi will increase We of VCSEL go have power two, a of announced junction to started to we three, larger VCSEL. with go

integrate announced the with have in diffractive where illumination house. we optics the We some can modules VCSEL make platforms we that

So a roadmap. very we have attractive

and when see announcing So it as future clearly it public to no Apple should components. regard surprise come collaboration you with making

We'll take Kumar Piper Sandler. with from next Harsh our question

is guidance that that $X.XX how's that clarify correctly? - guide part hear and wanted see --? anti-dilutive. the Hey, B into to sort that is I And of then $X.XX these we How something that work? - Mary does How the often. very you Series broke Jane, don't also things that said I was A - does Did

the the calculation first an the So goes that from release. actual in point EPS for QX all, press is of of view way the

the shares, income then deduct ones the or Series other the you common the reach used available that convertible outstanding are to And so - you guidance, And are the that shares example, when for QX are shares are the comp we a common plus we anti-dilutive. security that expect and dilutive. What that the shareholders. debt be happens to from income stock dividend to net then any A then have B do and Series the is the net

it's shares it are Series When why And back And do for case, anti-dilutive, in you shares example, and the X.X the so the add A do $X.XX add XXX. guidance the the the right. in third was are add quarter, non-GAAP not you yes, the is this shares in because you for you to back why are the shares. dilutive and on That's the QX at dividend that not add in XXX.

from question Stifel. next Marchetti Our with John

much, Jane, certainly we could going and takes than some bit two of the a more sequentially the Mary this expected. puts line very a down Thanks you spend if quarter, just margin through gross or little moment in had

the You just took be you related million of did issues. whole would that in Curious line, margin mention some that mentioned us of non-GAAP $X but you charges that around, some any the color you if COVID that give in helpful? that gross can on

Yes.

if I time, we XX% it including Because at have of leads were lost that correct to company, of is our considered if the of operations look which are in margin. that would factory, a least would at of day unfortunately, person, every everything I whole company, those we're say in essential. costs gross quarantine, total them the doing, And the that I to majority across million. working asked that amount the it that say are to vast be our how cost, the all, first every positive, we $X.X colleagues total about So believe testing in

from still. in actually people R&D are G&A the whereas working with home they interacting are of and most coming work into others, and So

think an some pressure to an non-GAAP do there what million amount would for I was time. that because attempt try of did - downward amount in have is is on some COVID $X.X $X will that that and cost we we the quarter the say on million go entire So had the probably look unusual at margin, the the gross

quarter. one thing the increased that to say. that was That's a in fair thing So is - is

the the some quarter. I somewhat certainly second of at think notwithstanding day in the in that thing lower end is that, nice the very the - compound a mix mix had they quarter, had semiconductors

And photonics. did so

remember, XD was quarter, would So And do more the seeing mix moderate quarter notwithstanding the revenue part we're in sensing, I we of for quarter, that a industrial high this quarter, you had a had, mix with in of the significant if because also XD say sensing. everything - to that's the more a a pickup. in lot last quarter of

So third puts main takes, the say and the those I would are for really quarter.

our Leopold next take James. Simon with question We'll from Raymond

announced much of understanding if I little out. what wanted the and contrast made they help they what these a to wonder a in the is for that And December appreciate I I'm - you've should back see or commitment announcement, the How to commitment. are get very could I thought you and you different? more Thank maybe guess taking of if Apple in order promise the purchase this with leaping bit XXXX. be Finisar conclusion as compare could terms yesterday to what yesterday question. I laid I'm announcement

sense outline does undetermined you what so And of from it some they'll the over buy future time. some in

that. help can Thank you us If you. with

absolutely. this for your question; is Giovanni Simon. Hi, Yes, Thanks

for As the for it's components clearly announcement future says iPhone.

future commitment for future components. And So it's clearly again, business. there a around specifically

announcement. a think done way. was you than this Finisar want I of maybe bit in announcement a with probably is previous little But more what a is clear, the if So I think continuation

And so to about thankful leadership and I public domain us give it. think in announce we to to talk really the ability Apple are the the this

Miller question with our next The Company. take We'll Benchmark from Mark

SG&A in from investment? increases also the that income, the about and curious was Bain other Just gain

Yes.

was two other of quarter and the negative. first quarter, of this the after out non-GAAP, positive quarters positives, see the income expense being both In latter. one all, let's come in of which we two had in FX So

increase recording for million one $XX the was Bain mark-to-market second the for security. The

that's of in M&A an if was from not for to respect correct, remember acquisition. SG&A, for quarter we coming of you Then had but costs we much $XX quarter, have cost Mark. last did the too with million pending our So that increase out, point integration view just this Coherent, in

from Dave with next King We'll question take our Riley. B.

is that question forecast. Good to a morning. back My going proxy,

conservative So it's fairly what a Fiscal forecast XX%. but believe 'XX, 'XX providing 'XX? you're fiscal like I about

growth stronger saying of, type in versus fiscal not 'XX So XX% I much what's am 'XX. driving XX% but that

Okay, this. let's just review

we all the right cusp First are of mega we really all, ourselves with serving end we wonderful remain place; in of the are future our that some seeing revenue today serving respect trends. of markets, said at comments to

go one these, - I that the of starting, as in et But we 'XX. five-year looked the in were that be at restrictions that growing could world, when we for part a year things preparation as had said in COVID the just for done, we trade moving we whether were the and in near offset take successfully preparing that of do the in and said, pretty of things as uncertain And budget cetera. a So new lot present we term the et well 'XX were forecasts say plan really our that those expected; we those away, and did not fiscal is this that election, cetera, thinking 'XX. themselves just

deal will deliver figure going we And with said how so out that's and very, forward. drivers strong see That for that have growth we now to to work And we still right very II-VI. underway. going continue on what's

ahead about projections, think at of opportunities have look lot wonderful available that very when you the you in terms of we opportunities them a II-VI, if the of are us. So to

We'll next take Shannon with Craig-Hallum. from question Richard our

parter interesting thanks, out which a guys but communications, you comments, ones strings my for data taking in not necessarily of to called Giovanni, from very question. Well, here surprising, is very strong a comm some a Maybe two within book-to-bill. couple

that five can if help and be here. say understand you're understand gains, times, that a II-VI heard where you in doing to coming I well different than including confirm share that Can from, is seems softer guess you that's us bit seeing little to helping helpful Thank telecom and think I you be where others? I you. will

hi, We, I did Richard, is G Thanks XXX transceivers. G specific this and absolutely. for thanks, your say five XXX to question. the Giovanni. Yes,

up for market, Because approval, getting than are a clearly, think customers the an waiting of of indication Finisar faster team, take ratio remain year back and to is we track the going place. much the that. lot combination almost think And the we after gearing So on now right? book-to-bill I waiting clearly sidelines the Chinese a standby I of the are on for of

the believe highlight really is share prepared but web-scale of said the of - an because it's remarks to the are next generation more performance, platforms. two, And indication I differentiation gaining board the So in as actually indication is the across I or an those strength, I yes, the the of just enabling the particularly those the for customers. deployment,

next Ricchiuti with from Company. Jim our Needham take question We'll &

in component you just thinking of the concerned by follow potentially And the you. supply Are looking chain of up Thank ordering any quarter. more comments what constraints. wondering out environment? wanted Hi, seeing out you do kind on double issues, beyond of on good to potential you're signs how this I'm I there? you're about June some see morning.

This Jim. Okay, feel question. for continuing question. morning, coming your to Chuck, some and related Good demand like Thanks and strong. for the is demand, questions morning. is about back future we thanks your the the of to good be And

strong, chain plan And done reevaluating, goes, currently near when the bounds term. As assessment a heck even justified think only pandemic. But must we in near cautious we and feeling two customers our this pay be very, CEO the And operate very that very chain demand that persist to in looking supply have attention couple to Intel of the have And the have customers even global we from when we chain. And inside steps the we're to We're chip the We've stay not a term, very by and long-range successfully, we've says job their XXX it's one that very to We've to while that. to far once environment supply in complex focused that global that. together that. manage of been as ability supply for also on. the supply operating have years, managing downstream also though year we way, we do our about one the put shortages will inside of us. taken our do we're a is a mindful chain. the to

to this, little bit this best that feel, had - have the through So manage I the in we started can to our world the very more confident as think I it. a of begin to feel we we very do a And we challenge. ability quarter, team

of the than started our much team, quarter confidence had last so quarter, but only couple quarters. I that this there's we As in got they we great the can do.

do need and And we about on a have that on very do our what manage by month, We so we month this on. we're play day, swivel this. will keep the everything quarter, will by to a heads look. we to we aggressive business, very, day Every track

really I'm work about team to the no in industry it. excited a Okay, I going but to it, challenge, there's It's better be Jim. think through

take next Rolland question Christopher our We'll Susquehanna. with from

this you able backlog, Chuck, where of that for level you are here; to that was loosening sounds just areas might actually like constraints you follow have flat constraints the you to perspective be to that Yes, up if I you're any trying fully? and all and as here. I'm still like your to what pieces guys, where fulfill you. be fill? backlog, It talk that But great. for of able stuff Thanks, together growing fairly put your backlog, backlog backlog some transceivers, grow constraint, fairly have think other additional high we up Finisar would areas a then given just about flat want well, you're

runs business. and every runs the controls Well, and manufacturing line whoever has the constraints constraints,

throughput able whole to the our our constraints focus. main So through maximize is be to yield ability the and

a We one have manufacturing I constraint going the constraints. articulate the have discipline don't think I'm you lots for toward we able lines; management lots to to of across of factories, company. every be common of

that's capacity where in to of why There's to excess lot will been we hanging to have break say beyond. and investing to of there's new constraints, have capacity, continue capital. you and not both to to in enable we we not growth a and products launch And any drive lot If the ready platforms us the a it. around. new and invest XXXX capital be from And

Marshall We'll Meta from take Stanley. our question with next Morgan

congrats volume Great, Jane On second to outlook. just the a QX. to spend kind a wanted EPS similar Mary thanks, quarter. the fiscal on of I and on

Thanks. some and preferred QX? costs, from And fiscal factors the be COVID that are so, we around the I we true-ups should the QX gave step shares more the you bonus considering this some businesses or of any mix fiscal if understand just fiscal of specific, like there commentary but QX of are other to

to supply things Well, think you various about one about if COVID, remarks et Sure. think our the I chain, respect on with hand cetera.

encounter as of a things at EPS and given bit bit little reflection approach probably the a of is QX are taking also could we we of a conservative the We look various for true, the at our that a wide happened do range Meta year end; guidance. in sometimes It example that is it's revenue last We for, we have we say have true-ups that compensation. year. recognize, the

earlier some is So remarkable. little we out But that it. though, be that. of to in people company we process to drive of I try that I the as from more end think could said best offset should could pretty be the working Certainly there could basic little our starts. shortages notwithstanding work inventory be flat, have Chris's in spikes that that other as very already. very, paranoid growing finish see, there the certainly we there's drives very really shipping in quarters, anticipate before but would revenue, work of indicating And our are to that make thing, was noted components it of that, challenging, QX a point in shortages Chuck too we year, you main all of not the also terms in even really the bit the can efficiency of some Having comment a it goods backlog just to that being sell have in just for to moving backlog able say be contains been to finish cost, was that at extremely as should company day, our those, it's we But our parts the a see of no. as we view by the that COVID hard bit

to to deliver customers focus really needs. is So our our

with Genovese Michael WestPark from question last our take Capital. We'll

the it thanks going? I'm deal? just a I confused if much. you regulatory often? Coherent dividend could approval just there's doesn't if on and the it like very expected about for processes quarter, But like have change. It fourth the Great, And does been repeats me, preferred any beyond sound comments for clarify how you would Do then if

Right.

going first all, the So for process in respect already in jurisdictions. We're with as the filings States. of other filed to the United planned, we're

a have quarterly - already certainly, then the seen I that, dividend. S-X to with I oh, it's think dividend, and respect

for said, four a it's So principal year. X% And years. capitalized paid and stock a accumulated and it's I quarterly. first the as is the calculated to And

is dividend every same series the it the for as quarter, So the Series B same yes, A. in is

session. That this time, or back I At over remarks. conference for the closing concludes question-and-answer any the today's to will additional turn speakers

very, Thank very you, much. Shelby,

We'd day. morning all you Before a Have May like noon, event we have to love XX to Markets to and of for today. our the end on the joining call good we'd Technologies from Advanced o'clock invite Eastern in you us there. all of II-VI you US held to much to today, time. be so virtually XX Thank

participation. This Thank you call. today's concludes your for

disconnect. now may You