II-VI Incorporated Third Quarter: Record Revenue Quarter, Earnings on Target

Apr 18, 2001, 01:00 ET from II-VI Incorporated

    PITTSBURGH, April 18 /PRNewswire/ -- II-VI Incorporated (Nasdaq:   IIVI)
 today reported earnings for its third fiscal quarter ended March 31, 2001.
 Net earnings for the quarter were $2,435,000 ($0.17 per share-diluted) on
 revenues of $32,531,000.  These results compare with net earnings of
 $2,051,000 ($0.15 per share-diluted) on revenues of $19,781,000 in the third
 quarter of last fiscal year.  For the nine months ended March 31, 2001, net
 earnings were $6,738,000 ($0.48 per share-diluted) on revenues of $90,982,000.
 This compares with net earnings of $5,460,000 ($0.42 per share-diluted) on
 revenues of $52,853,000 for the same period last fiscal year.
     Francis J. Kramer, President and Chief Operating Officer said, "Demand for
 our products has increased to record levels despite challenging market
 conditions.  Before adding the significant revenue contribution from our
 recently acquired Laser Power Corporation subsidiary, product revenue for the
 quarter increased over 20% from the prior year.  The eV PRODUCTS division
 recorded record revenues for the quarter and telecommunication products from
 the VLOC subsidiary continue to be accepted.  The laser optics and component
 products business segment remains strong with fiscal year-to-date revenues
 nearly 30% above the same period last year."
     Kramer continued, "Although we are concerned with the overall future
 prospects for the global economy, we are pleased with the Company's
 performance in light of these conditions and you can expect the Company to
 undertake its best efforts to continue this performance for the fourth
 quarter."
     Bookings for the third quarter increased 42% to $33,385,000 from
 $23,473,000 in the third quarter of last fiscal year.  Bookings for the eV
 PRODUCTS division increased approximately 55% over the prior year.  The
 Company recorded bookings from Laser Power Corporation of approximately
 $11,640,000.  Bookings for laser optics and component products, including
 telecommunication products of approximately $1,400,000, decreased
 approximately 10%.  Bookings for the quarter did not include an order for
 approximately $4,000,000 from a customer of its laser optics and component
 products that was received in April 2001.  Bookings for the third quarter last
 year included a similar order from this customer.  For the nine months ended
 March 31, 2001, bookings increased 67% to $100,826,000 from $60,329,000 for
 the same period last fiscal year.  Bookings for laser optics and component
 products, including bookings from telecommunication products of approximately
 $2,650,000, increased approximately 15%, bookings for the eV PRODUCTS division
 increased approximately 55% and the Company recorded bookings from Laser Power
 Corporation of approximately $31,095,000.
     Revenues for the third quarter increased 64% to $32,531,000 from
 $19,781,000 in the third quarter of last fiscal year.  Revenues from laser
 optics and component products, including revenues from telecommunication
 products of approximately $850,000, increased approximately 20%, revenues from
 the eV PRODUCTS division increased approximately 50% and the Company recorded
 revenues from Laser Power Corporation of approximately $8,429,000.  For the
 nine months ended March 31, 2001, revenues increased 72% to $90,982,000 from
 $52,853,000 for the same period last fiscal year.  Revenues from laser optics
 and component products, including revenues from telecommunication products of
 approximately $1,800,000, increased approximately 30%, revenues from the eV
 PRODUCTS division increased approximately 50% and the Company recorded
 revenues from Laser Power Corporation of approximately $22,532,000.
     The Company currently expects revenues and income from operations for the
 fourth fiscal quarter of the year ending June 30, 2001 to be similar to the
 third fiscal quarter ended March 31, 2001.  For the fourth fiscal quarter of
 the year ending June 30, 2001 the Company is currently forecasting earnings
 per share to be in the general range of $0.15 to $0.20.  Actual results may
 differ from these forecasted results due to factors including changes in
 product demand, competition and general economic conditions.
     The Company will host a conference call at 10:00 a.m. EDT on Thursday,
 April 19, 2001 to discuss these quarterly results, market trends and future
 outlook.  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
 http://www.ii-vi.com as well as http://www.streetfusion.com.  Please allow
 extra time prior to the call to visit the site and, if needed, download the
 media software required to listen to the Internet broadcast.  A replay of the
 webcast will be available for 45 days following the call.
     Headquartered in Saxonburg, Pennsylvania II-VI Incorporated designs,
 manufactures and markets optical and opto-electronic components, devices and
 materials for infrared, near-infrared, visible light, x-ray and gamma-ray
 instrumentation and telecommunication applications.  The Company's infrared
 products, sold under the II-VI and Laser Power brand names, are used primarily
 in high-power CO2 (carbon dioxide) lasers.  The Company's VLOC subsidiary
 manufactures near-infrared and visible light products for industrial,
 scientific and medical instruments and solid-state (such as YAG and YLF)
 lasers and products for the telecommunication industry.  The Company's eV
 PRODUCTS division manufactures and markets solid-state x-ray and gamma-ray
 detector products for the nuclear radiation detection industry.  The Company
 manufactures infrared products for military applications under the Exotic-
 Electro Optics brand name.
 
     This press release contains forward looking statements as defined by
 Section 21E of the Securities Exchange Act of 1934.  Any information which is
 not historical in nature constitutes such forward looking statements.  Actual
 results may differ from the results described in any forward looking
 statements due to, among other things, changes in market demand for laser
 optics and component products, products of the eV PRODUCTS division,
 telecommunication products and products of the Laser Power Corporation
 subsidiary, the Company's ability to maintain or increase market share, the
 Company's ability to effectively address market opportunities, and general
 market and economic conditions throughout the world.  Additional information
 on potential factors that could affect the Company's financial results was
 included in the Company's Form 10-K for the year ended June 30, 2000 as filed
 with the Securities and Exchange Commission.
 
     CONTACT:  Craig Creaturo, Treasurer of II-VI Incorporated, 724-352-4455,
 or e-mail, ccreaturo@ii-vi.com.
 
 
       II-VI Incorporated and Subsidiaries
       Condensed Consolidated Statements of Earnings (Unaudited)
       (000 except per share data)
 
                                                       Three Months Ended
                                                           March 31,
                                                       2001           2000
     Revenues
 
     Net sales                                        $31,113        $19,238
     Contract research and development                  1,418            543
                                                       32,531         19,781
 
     Costs, Expenses & Other Expense
 
     Cost of goods sold                                19,814         10,905
     Contract research and development                  1,033            410
     Internal research and development                  1,088            744
     Selling, general and administrative                6,083          4,933
     Interest expense                                     657             79
     Other expense (income) - net                         180             85
                                                       28,855         17,156
 
     Earnings Before Income Taxes                       3,676          2,625
 
     Income Taxes                                       1,241            574
 
     Net Earnings                                      $2,435         $2,051
 
 
     Diluted Earnings Per Share                         $0.17          $0.15
 
 
     Average Shares Outstanding - Diluted              14,268         13,297
 
 
       II-VI Incorporated and Subsidiaries
       Condensed Consolidated Statements of Earnings (Unaudited)
       (000 except per share data)
 
                                                       Nine Months Ended
                                                            March 31,
                                                       2001           2000
     Revenues
 
     Net sales                                        $87,135        $52,013
     Contract research and development                  3,847            840
                                                       90,982         52,853
 
     Costs, Expenses & Other Expense
 
     Cost of goods sold                                53,984         29,609
     Contract research and development                  2,407            636
     Internal research and development                  3,246          1,969
     Selling, general and administrative               18,590         12,947
     Interest expense                                   1,831            258
     Other expense (income) - net                         790            (46)
                                                       80,848         45,373
 
     Earnings Before Income Taxes                      10,134          7,480
 
     Income Taxes                                       3,396          2,020
 
     Net Earnings                                      $6,738         $5,460
 
 
     Diluted Earnings Per Share                         $0.48          $0.42
 
 
     Average Shares Outstanding - Diluted              14,130         13,121
 
 
       II-VI Incorporated and Subsidiaries
       Condensed Consolidated Balance Sheets (Unaudited)
       ($000)
 
                                                     March 31,       June 30,
                                                       2001            2000
     Assets
 
     Current Assets
       Cash and cash equivalents                       $5,378         $6,330
       Accounts receivable, net                        22,496         14,202
       Inventories                                     20,234         13,738
       Other current assets                             4,427          2,080
          Total Current Assets                         52,535         36,350
 
 
     Property, Plant & Equipment, net                  54,975         40,883
     Cost in Excess of Net Assets Acquired             33,754          1,792
     Other Intangible Assets                            1,389          1,516
     Other Assets                                       4,339          3,690
                                                     $146,992        $84,231
 
     Liabilities and Shareholders' Equity
 
     Current Liabilities
       Accounts payable                                $5,394         $3,726
       Current portion of long-term debt                2,605              -
       Other current liabilities                       15,987          8,289
          Total Current Liabilities                    23,986         12,015
 
 
     Long-Term Debt -- less current portion            33,195          5,541
 
     Other Liabilities, primarily deferred
      income taxes                                      3,235          3,120
 
     Shareholders' Equity                              86,576         63,555
                                                     $146,992        $84,231
 

SOURCE II-VI Incorporated
    PITTSBURGH, April 18 /PRNewswire/ -- II-VI Incorporated (Nasdaq:   IIVI)
 today reported earnings for its third fiscal quarter ended March 31, 2001.
 Net earnings for the quarter were $2,435,000 ($0.17 per share-diluted) on
 revenues of $32,531,000.  These results compare with net earnings of
 $2,051,000 ($0.15 per share-diluted) on revenues of $19,781,000 in the third
 quarter of last fiscal year.  For the nine months ended March 31, 2001, net
 earnings were $6,738,000 ($0.48 per share-diluted) on revenues of $90,982,000.
 This compares with net earnings of $5,460,000 ($0.42 per share-diluted) on
 revenues of $52,853,000 for the same period last fiscal year.
     Francis J. Kramer, President and Chief Operating Officer said, "Demand for
 our products has increased to record levels despite challenging market
 conditions.  Before adding the significant revenue contribution from our
 recently acquired Laser Power Corporation subsidiary, product revenue for the
 quarter increased over 20% from the prior year.  The eV PRODUCTS division
 recorded record revenues for the quarter and telecommunication products from
 the VLOC subsidiary continue to be accepted.  The laser optics and component
 products business segment remains strong with fiscal year-to-date revenues
 nearly 30% above the same period last year."
     Kramer continued, "Although we are concerned with the overall future
 prospects for the global economy, we are pleased with the Company's
 performance in light of these conditions and you can expect the Company to
 undertake its best efforts to continue this performance for the fourth
 quarter."
     Bookings for the third quarter increased 42% to $33,385,000 from
 $23,473,000 in the third quarter of last fiscal year.  Bookings for the eV
 PRODUCTS division increased approximately 55% over the prior year.  The
 Company recorded bookings from Laser Power Corporation of approximately
 $11,640,000.  Bookings for laser optics and component products, including
 telecommunication products of approximately $1,400,000, decreased
 approximately 10%.  Bookings for the quarter did not include an order for
 approximately $4,000,000 from a customer of its laser optics and component
 products that was received in April 2001.  Bookings for the third quarter last
 year included a similar order from this customer.  For the nine months ended
 March 31, 2001, bookings increased 67% to $100,826,000 from $60,329,000 for
 the same period last fiscal year.  Bookings for laser optics and component
 products, including bookings from telecommunication products of approximately
 $2,650,000, increased approximately 15%, bookings for the eV PRODUCTS division
 increased approximately 55% and the Company recorded bookings from Laser Power
 Corporation of approximately $31,095,000.
     Revenues for the third quarter increased 64% to $32,531,000 from
 $19,781,000 in the third quarter of last fiscal year.  Revenues from laser
 optics and component products, including revenues from telecommunication
 products of approximately $850,000, increased approximately 20%, revenues from
 the eV PRODUCTS division increased approximately 50% and the Company recorded
 revenues from Laser Power Corporation of approximately $8,429,000.  For the
 nine months ended March 31, 2001, revenues increased 72% to $90,982,000 from
 $52,853,000 for the same period last fiscal year.  Revenues from laser optics
 and component products, including revenues from telecommunication products of
 approximately $1,800,000, increased approximately 30%, revenues from the eV
 PRODUCTS division increased approximately 50% and the Company recorded
 revenues from Laser Power Corporation of approximately $22,532,000.
     The Company currently expects revenues and income from operations for the
 fourth fiscal quarter of the year ending June 30, 2001 to be similar to the
 third fiscal quarter ended March 31, 2001.  For the fourth fiscal quarter of
 the year ending June 30, 2001 the Company is currently forecasting earnings
 per share to be in the general range of $0.15 to $0.20.  Actual results may
 differ from these forecasted results due to factors including changes in
 product demand, competition and general economic conditions.
     The Company will host a conference call at 10:00 a.m. EDT on Thursday,
 April 19, 2001 to discuss these quarterly results, market trends and future
 outlook.  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
 http://www.ii-vi.com as well as http://www.streetfusion.com.  Please allow
 extra time prior to the call to visit the site and, if needed, download the
 media software required to listen to the Internet broadcast.  A replay of the
 webcast will be available for 45 days following the call.
     Headquartered in Saxonburg, Pennsylvania II-VI Incorporated designs,
 manufactures and markets optical and opto-electronic components, devices and
 materials for infrared, near-infrared, visible light, x-ray and gamma-ray
 instrumentation and telecommunication applications.  The Company's infrared
 products, sold under the II-VI and Laser Power brand names, are used primarily
 in high-power CO2 (carbon dioxide) lasers.  The Company's VLOC subsidiary
 manufactures near-infrared and visible light products for industrial,
 scientific and medical instruments and solid-state (such as YAG and YLF)
 lasers and products for the telecommunication industry.  The Company's eV
 PRODUCTS division manufactures and markets solid-state x-ray and gamma-ray
 detector products for the nuclear radiation detection industry.  The Company
 manufactures infrared products for military applications under the Exotic-
 Electro Optics brand name.
 
     This press release contains forward looking statements as defined by
 Section 21E of the Securities Exchange Act of 1934.  Any information which is
 not historical in nature constitutes such forward looking statements.  Actual
 results may differ from the results described in any forward looking
 statements due to, among other things, changes in market demand for laser
 optics and component products, products of the eV PRODUCTS division,
 telecommunication products and products of the Laser Power Corporation
 subsidiary, the Company's ability to maintain or increase market share, the
 Company's ability to effectively address market opportunities, and general
 market and economic conditions throughout the world.  Additional information
 on potential factors that could affect the Company's financial results was
 included in the Company's Form 10-K for the year ended June 30, 2000 as filed
 with the Securities and Exchange Commission.
 
     CONTACT:  Craig Creaturo, Treasurer of II-VI Incorporated, 724-352-4455,
 or e-mail, ccreaturo@ii-vi.com.
 
 
       II-VI Incorporated and Subsidiaries
       Condensed Consolidated Statements of Earnings (Unaudited)
       (000 except per share data)
 
                                                       Three Months Ended
                                                           March 31,
                                                       2001           2000
     Revenues
 
     Net sales                                        $31,113        $19,238
     Contract research and development                  1,418            543
                                                       32,531         19,781
 
     Costs, Expenses & Other Expense
 
     Cost of goods sold                                19,814         10,905
     Contract research and development                  1,033            410
     Internal research and development                  1,088            744
     Selling, general and administrative                6,083          4,933
     Interest expense                                     657             79
     Other expense (income) - net                         180             85
                                                       28,855         17,156
 
     Earnings Before Income Taxes                       3,676          2,625
 
     Income Taxes                                       1,241            574
 
     Net Earnings                                      $2,435         $2,051
 
 
     Diluted Earnings Per Share                         $0.17          $0.15
 
 
     Average Shares Outstanding - Diluted              14,268         13,297
 
 
       II-VI Incorporated and Subsidiaries
       Condensed Consolidated Statements of Earnings (Unaudited)
       (000 except per share data)
 
                                                       Nine Months Ended
                                                            March 31,
                                                       2001           2000
     Revenues
 
     Net sales                                        $87,135        $52,013
     Contract research and development                  3,847            840
                                                       90,982         52,853
 
     Costs, Expenses & Other Expense
 
     Cost of goods sold                                53,984         29,609
     Contract research and development                  2,407            636
     Internal research and development                  3,246          1,969
     Selling, general and administrative               18,590         12,947
     Interest expense                                   1,831            258
     Other expense (income) - net                         790            (46)
                                                       80,848         45,373
 
     Earnings Before Income Taxes                      10,134          7,480
 
     Income Taxes                                       3,396          2,020
 
     Net Earnings                                      $6,738         $5,460
 
 
     Diluted Earnings Per Share                         $0.48          $0.42
 
 
     Average Shares Outstanding - Diluted              14,130         13,121
 
 
       II-VI Incorporated and Subsidiaries
       Condensed Consolidated Balance Sheets (Unaudited)
       ($000)
 
                                                     March 31,       June 30,
                                                       2001            2000
     Assets
 
     Current Assets
       Cash and cash equivalents                       $5,378         $6,330
       Accounts receivable, net                        22,496         14,202
       Inventories                                     20,234         13,738
       Other current assets                             4,427          2,080
          Total Current Assets                         52,535         36,350
 
 
     Property, Plant & Equipment, net                  54,975         40,883
     Cost in Excess of Net Assets Acquired             33,754          1,792
     Other Intangible Assets                            1,389          1,516
     Other Assets                                       4,339          3,690
                                                     $146,992        $84,231
 
     Liabilities and Shareholders' Equity
 
     Current Liabilities
       Accounts payable                                $5,394         $3,726
       Current portion of long-term debt                2,605              -
       Other current liabilities                       15,987          8,289
          Total Current Liabilities                    23,986         12,015
 
 
     Long-Term Debt -- less current portion            33,195          5,541
 
     Other Liabilities, primarily deferred
      income taxes                                      3,235          3,120
 
     Shareholders' Equity                              86,576         63,555
                                                     $146,992        $84,231
 SOURCE  II-VI Incorporated