Finisar Corp. (NASDAQ:FNSR) Q1 2020 Earnings Conference Call - Final Transcript

Ladies and gentlemen, thank you for standing by and welcome to II-VI Incorporated FY '20 First Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode.

[Operator Instructions]

Please be advised that today's conference is being recorded.

[Operator Instructions]

Thank you. Now, I'd like to hand the conference over to your first speaker today, Ms. Mary Jane Raymond, Chief Financial Officer. Mam, you may begin.

Thank you, Paul, and good morning. I'm Mary Jane Raymond, the Chief Financial Officer, here at II-VI Incorporated. Welcome to our first quarter earnings call for fiscal year 2020. With me today on the call is Dr. Chuck Mattera, our Chief Executive Officer, and Dr. Giovanni Barbarossa, our Chief Strategy Officer, and the President of the Compound Semiconductor segment.

This call is being recorded on Tuesday, November 12, 2019. Just as a reminder, any forward-looking statements we may make today during this teleconference are given in the context of today only. We do not undertake any obligation to update these statements to reflect events, subsequent to today.

With that, let me turn it over to Dr. Chuck Mattera. Chuck?

Thanks, Mary Jane.

Good morning and thanks to everyone who are joining us today. Before we begin, I would like to take a minute to thank all of our veterans as they remind us of the importance of dedication and determination over the long haul and II-VI's strategic position in the aerospace and defense market. As we have many times in the past 20 years, we had started another new chapter in the evolution of II-VI. On September 24, we closed the Finisar transaction, the largest acquisition in our history.

Our excitement has only increased since day one, as a result of the complementarity of the technology and manufacturing platforms of both companies. Despite some market pauses commensurate with our conservative case and the normal heavy lifting that is needed in the time immediately after an acquisition, we are confident that we will disrupt the status quo. As a result of the acquisition, we are the largest component and subsystem supplier in the global optical communications market and we believe[Phonetic] the undisputed leader in the photonic solutions and compound semiconductors.

The combination of the semiconductor laser, customized optics and integrated circuit technologies, along with the miniaturization and automation platforms of the new company, position us well to expand into a larger portion of each of our end markets. For example, we fully expect our industry-leading indium phosphide laser capabilities to enable rapid growth across multiple markets, including optical communications, automotive, hyperscale datacenter communications, life science diagnostics and consumer electronics applications to name a few.

Moreover, we believe that increased scale and quality will ultimately yield lower cost, greater competitiveness, and result in more ubiquitous adoption at scale. In fact, we are already seeing tremendous growth in our indium phosphide-based coherent products. Our recent innovations in highly-integrated indium phosphide laser components and analog integrated circuits have propelled us into a leading position for the