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II-VI Incorporated Reports Record Quarterly Bookings and Revenues; Increases Fiscal Year 2011 Guidance

/ Source: GlobeNewswire

PITTSBURGH, Jan. 25, 2011 (GLOBE NEWSWIRE) -- II-VI Incorporated (Nasdaq:IIVI) today reported results for its second fiscal quarter ended December 31, 2010.

On January 4, 2010, the Company completed its acquisition of Photop Technologies, Inc. (Photop). Company results include Photop's results for the three and six months ended December 31, 2010. On December 7, 2010, the Company completed its acquisition of Max Levy Autograph, Inc. (MLA). Company results for the quarter and six months ended December 31, 2010 include the operating results of MLA since the acquisition date.

Bookings for the quarter increased 71% to a record $134,128,000, compared to $78,311,000 in the second quarter of last fiscal year. Bookings for the six months ended December 31, 2010 increased 62% to $246,178,000 from $151,647,000 for the same period last fiscal year. Included in bookings for the three and six months ended December 31, 2010 were $29.6 million and $57.6 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 76% to a record $120,887,000 from $68,785,000 in the second quarter of last fiscal year. Revenues for the six months ended December 31, 2010 increased 79% to $241,021,000 from $134,323,000. Included in revenues for the three and six months ended December 31, 2010 were $31.0 million and $57.7 million, respectively, of revenues attributable to Photop.

Net earnings attributed to II-VI Incorporated for the quarter were $19,157,000, or $0.60 per share-diluted, compared with net earnings of $5,981,000, or $0.20 per share-diluted, in the second quarter of last fiscal year. For the six months ended December 31, 2010, net earnings attributable to II-VI Incorporated were $37,524,000 or $1.18 per share-diluted compared to net earnings of $12,287,000 or $0.41 per share-diluted in the second quarter of last fiscal year.   

Francis J. Kramer, president and chief executive officer said, "During the quarter we continued to experience strong customer demand across all markets. Bookings were up 71%, revenues increased 76% and earnings tripled from the year-ago quarter. Orders in the Infrared Optics and Military & Materials segments were particularly robust – up 45% and 60%, respectively, from the year-ago quarter and 14% and 94%, respectively, from September 30, 2010. As a result, our order backlog stands at $163.5 million, an increase of 36% from December 31, 2009 and 10% from September 30, 2010. Company earnings benefited from operating efficiencies."

Kramer concluded, "We continue to generate significant cash from operations. We used some of it to finance the MLA acquisition. In addition, we made strategic capital investments across all businesses to adjust production capacity to meet increased market demand. After those expenditures, our net cash position increased more than $6 million during the quarter. Positive market momentum, strong operating performance and a record order backlog allowed us to increase our revenue and earnings guidance for the remainder of the fiscal year."

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 third fiscal quarter ending March 31, 2011, the Company currently forecasts revenues to range from $115 million to $120 million and earnings per share to range from $0.48 to $0.53. Comparable results for the quarter ended March 31, 2010 were revenues of $97.5 million and earnings per share of $0.33. For the fiscal year ending June 30, 2011, the Company expects revenues to range from $475 million to $485 million and earnings per share to range from $2.20 to $2.29. 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, January 25, 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 lasers 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 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