IIVI
#Well, <UNK> talked about a couple of different things.
Let's just start with the ---+ from the communications market in an aggregate, particularly the use of silicon carbide substrates in the RF, that's part of what drove the bookings in particular.
We also have continued to have some pretty decent strength in the military end market.
Though as people have seen in general, and also with us, it tends to be a little bit longer to revenue.
Those are probably the particular main drivers.
Sorry, <UNK>.
Anyway, yes, please go ahead, <UNK>.
Well, I think actually the main thing that is really driving it is positive volume variance across quite a few of the operations.
Communications for sure, absolutely, because it's so much of volume; but even on the silicon carbide side, in the materials processing components.
Some of those guys not only have continued to improve the operating efficiencies in their factory ---+ at, let's just call them comfortable, not at capacity levels, which is a very good thing to do, and very hard.
But on the optical side, particularly in photonics, where they are really starting to push the limits of the capacity, and have been for a while, they start to get very, very nice operating efficiencies off that.
We added about 30% capacity for pumps and amps through last year, and still continue to see those sort of efficiency gains.
So that is really fundamentally the main driver.
There's no question that mix is probably helping a lot.
For example, <UNK> talked about the undersea buildout.
That has a particularly good effect on the mix, but it's not a lot of revenue.
So the main thing really comes down to just the efficiency of how our people around the world are running the operations they are in.
<UNK> <UNK>, I'd like to add, <UNK>, with regard to performance products, we did see a real strong pickup in our semiconductor bookings in the last ---+ during the quarter.
So, that also contributed.
And, in fact, it is interesting that we also saw our first EUV-related order in some time.
So, it's, I think, a very positive indicator.
Okay.
So <UNK>, we make materials for wafer stages, for wafer chucks in the front end, for a whole host of those components.
And recently we have been expanding into the back end of the line, and so we have a suite of new products.
And I would say both front-end and back-end, we are seeing a lot of interest as we expand into the marketplace.
It does feel like things are warming up.
In the back end, <UNK>, our segmentation or our carbide is around wafer chucks, heater blocks, and for both inspection tools and for wafer probing and wafer bonding tools.
Okay.
Well.
Okay.
Thank you, Chelsea.
To conclude our call today, I would like to say that our Q1 FY17 results were enabled by the unyielding enthusiasm, sense of urgency, and teamwork of our 9,500 employees determined to contribute to the success of II-VI and our customers.
Their dedication, commitment, innovations, and hard work makes it possible for us to meet customer expectations.
They continue to pave the way for our future growth with the development and introduction of new products, and by initiating new programs to improve our overall quality and operating efficiency.
As of today, nearly 4 weeks into the quarter, it feels like we're on track to deliver another good quarter ending in December.
Thank you for your interest in II-VI and for your questions today.
Chelsea, this concludes today's call.
