PITTSBURGH, April 26, 2011 (GLOBE NEWSWIRE) -- II-VI Incorporated (Nasdaq:IIVI) today reported results for its third fiscal quarter ended March 31, 2011.
On January 4, 2010, the Company completed its acquisition of Photop Technologies, Inc. (Photop). Company results include Photop's results for the three and nine months ended March 31, 2011. On December 6, 2010, the Company completed its acquisition of Max Levy Autograph, Inc. (MLA). Results for the quarter and nine months ended March 31, 2011 include the operating results of MLA since the acquisition date.
Bookings for the quarter increased 30% to a record $142,883,000 compared to $109,963,000 in the third quarter of last fiscal year. Bookings for the nine months ended March 31, 2011 increased 49% to $389,061,000 from $261,610,000 for the same period last fiscal year. Included in bookings for the three and nine months ended March 31, 2011 were approximately $36.8 million and $94.4 million, respectively, of bookings attributable to Photop. Bookings are defined as customer orders received that are expected to be converted into revenues during the next 12 months.
Revenues for the quarter increased 33% to a record $129,997,000 from $97,531,000 in the third quarter of last fiscal year. Revenues for the nine months ended March 31, 2011 increased 60% to $371,018,000 from $231,854,000. Included in revenues for the three and nine months ended March 31, 2011 were approximately $32.4 million and $90.1 million, respectively, of revenues attributable to Photop.
Net earnings attributed to II-VI Incorporated for the quarter were $23,119,000, or $0.72 per share-diluted, compared with net earnings of $10,313,000, or $0.33 per share-diluted, in the third quarter of last fiscal year. For the nine months ended March 31, 2011, net earnings attributable to II-VI Incorporated were $60,643,000, or $1.90 per share-diluted, compared to net earnings of $22,600,000, or $0.74 per share-diluted, in the same period last fiscal year.
Francis J. Kramer, president and chief executive officer said, "We achieved record bookings and revenues in the third fiscal quarter as strong positive momentum continued across almost all markets. Bookings increased 30%, revenues were up 33% and earnings more than doubled from the year-ago quarter. Orders in the Infrared Optics segment and at Photop were particularly strong - up 38% and 39%, respectively, from the year-ago quarter and 12% and 24%, respectively, from the quarter ended December 31, 2010. Our backlog stands at $176.5 million, an increase of 23% from March 31, 2010 and 9% from December 31, 2010. Earnings of $0.72 per share-diluted primarily resulted from increases in sales volume and operating efficiencies. The effective tax rate for the quarter was lower to reflect the increased profit contribution from our foreign operations; revenues outside of the U.S. accounted for over 60% of our total revenues for the quarter."
Kramer continued, "Quarterly EBITDA performance and cash flow generation continue to strengthen. EBITDA for the quarter increased 63% from the same period last fiscal year and 9% from the December 31, 2010 period. During the quarter, we made strategic capital investments of $14 million, after which our cash balance still increased $9 million. Robust market momentum, strong operating performance and a record order backlog are causing us to increase our guidance for the fourth quarter and fiscal year."
Kramer concluded, "We are in the process of preparing the II-VI Incorporated operating plan for fiscal year 2012. We see continuing strength in industrial markets as global economies rebound. Near-infrared market growth appears positive overall, with ongoing strength in China. We are monitoring U.S. military spending to assess the effects any changes may have on our military businesses. We expect to introduce guidance for fiscal year 2012 in June 2011."
Segment Information
The following segment information includes segment earnings (defined as earnings before income taxes, interest expense and other expense or income, net). Management believes segment earnings are a useful performance measure because they reflect the results of segment performance over which management has direct control.
Outlook
For the fourth fiscal quarter ending June 30, 2011, the Company currently forecasts revenues to range from $129 million to $134 million and earnings per share to range from $0.68 to $0.73. Comparable results for the quarter ended June 30, 2010 were revenues of $113.2 million and earnings per share of $0.51. For the fiscal year ending June 30, 2011, the Company expects revenues to range from $500 million to $505 million and earnings per share to range from $2.58 to $2.63. Results for the year ended June 30, 2010 were revenues of $345.1 million and earnings per share of $1.25. As discussed in more detail below, actual results may differ from these forecasts due to various factors including, but not limited to, changes in product demand, competition and general economic conditions.
Webcast Information
The Company will host a conference call at 9:00 a.m. Eastern Time on Tuesday, April 26, 2011 to discuss these results. The conference call will be broadcast live over the internet and can be accessed by all interested parties from the Company's web site at as well as at . A replay of the webcast will be available for 2 weeks following the call.
About II-VI Incorporated
II-VI Incorporated, the worldwide leader in crystal growth technology, is a vertically-integrated manufacturing company that creates and markets products for diversified markets including industrial manufacturing, military and aerospace, high-power electronics and telecommunications, and thermoelectronics applications. Headquartered in Saxonburg, Pennsylvania, with manufacturing, sales, and distribution facilities worldwide, the Company produces numerous crystalline compounds including zinc selenide for infrared laser optics, silicon carbide for high-power electronic and microwave applications, and bismuth telluride for thermoelectric coolers.
In the Company's infrared optics business, II-VI Infrared manufactures optical and opto-electronic components for industrial laser and thermal imaging systems and HIGHYAG Lasertechnologie GmbH (HIGHYAG) manufactures fiber-delivered beam delivery systems and processing tools for industrial lasers. In the Company's near-infrared optics business, VLOC manufactures near-infrared and visible light products for industrial, scientific, military and medical instruments and laser gain materials and products for solid-state YAG and YLF lasers. Photop Technologies, Inc. (Photop) manufactures crystal materials, optics, microchip lasers and opto-electronic modules for use in optical communication networks and other diverse consumer and commercial applications. In the Company's military & materials business, Exotic Electro-Optics (EEO) manufactures infrared products for military applications, Pacific Rare Specialty Metals & Chemicals (PRM) produces and refines selenium and tellurium materials and Max Levy Autograph, Inc. (MLA) manufactures micro-fine conductive mesh patterns for optical, mechanical and ceramic components for applications such as circuitry, metrology standards, targeting calibration and suppression of Electro-Magnetic Interference. In the Company's Compound Semiconductor Group, the Wide Bandgap Materials (WBG) group manufactures and markets single crystal silicon carbide substrates for use in the solid-state lighting, wireless infrastructure, RF electronics and power switching industries; Marlow Industries, Inc. (Marlow) designs and manufactures thermoelectric cooling and power generation solutions for use in defense, space, photonics, telecommunications, medical, consumer and industrial markets; and the Worldwide Materials Group (WMG) provides expertise in materials development, process development and manufacturing scale up.
This press release contains forward-looking statements based on certain assumptions and contingencies that involve risks and uncertainties. The forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and relate to the Company's performance on a going-forward basis.
The forward-looking statements in this press release involve risks and uncertainties, which could cause actual results, performance or trends to differ materially from those expressed in the forward-looking statements herein or in previous disclosures. The Company believes that all forward-looking statements made by it have a reasonable basis, but there can be no assurance that management's expectations, beliefs or projections as expressed in the forward-looking statements will actually occur or prove to be correct. In addition to general industry and global economic conditions, factors that could cause actual results to differ materially from those discussed in the forward-looking statements in this press release include, but are not limited to: (i) the failure of any one or more of the assumptions stated above to prove to be correct; (ii) the risks relating to forward-looking statements and other "Risk Factors" discussed in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2010; (iii) the purchasing patterns from customers and end-users; (iv) the timely release of new products, and acceptance of such new products by the market; (v) the introduction of new products by competitors and other competitive responses; and/or (vi) the Company's ability to devise and execute strategies to respond to market conditions.
CONTACT: Craig A. Creaturo Chief Financial Officer and Treasurer (724) 352-4455 ccreaturo@ii-vi.com Homepage: www.ii-vi.com