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Message-ID: October 16, 1997 PITTSBURGH, PA., October 16, 1997--II-VI
Incorporated (NASDAQ NMS: IIVI) today reported
results for its first fiscal quarter ended
September 30, 1997. Net earnings for the period
increased 27% to $2,112,000 ($0.32 per share) on
revenues of $15,519,000. These results compare
with net earnings of $1,660,000 ($0.25 per
share) on revenues of $12,110,000 in the first
quarter of last fiscal year.
Manufacturing bookings increased 35% to
$15,960,000 for the quarter from $11,823,000 for
the same period last year. Approximately 60%
of the increase was attributable to bookings for
infrared optics and materials and the remainder
for products manufactured by the Company’s VLOC
subsidiary.
Revenues increased 28% to $15,519,000 for the
quarter from $12,110,000 for the same period
last year. Nearly 80% of the increase in
revenues was attributable to shipments of
infrared optics and materials, while improved
shipments from the Company's VLOC subsidiary
accounted for the remainder of the increase.
Manufacturing gross margin was $6,575,000 or 44%
of net sales for the quarter compared to
$5,244,000 or 45% of net sales for the same
period last year. The decrease in manufacturing
gross margin was due to the strengthening of the
U.S. dollar against foreign currencies and
increased expenses in the eV PRODUCTS division
due to the expansion in operations required to
fulfill the previously announced order for
radiation detectors for Neoprobe Corporation.
Selling, general and administrative expenses
were $3,450,000 or 22% of revenues for the
quarter as compared to $3,030,000 or 25% of
revenues for the same period last year. The
expense increase is attributable to higher
general and administrative expenses needed to
support the Company’s growth and higher
compensation expense associated with the
Company's worldwide profit-driven bonus
programs.
Francis J. Kramer, president and chief operating
officer stated, "Market demand for our infrared
optics and materials increased nearly 35%
compared to last year’s first quarter. Our
capacity expansion programs over the past year
have positioned us well in this highly
competitive market. We are committed to meeting
the increasing customer demands of product
quality, shorter lead times, competitive pricing
and on-time delivery.”
Headquartered in Saxonburg, Pennsylvania II-VI
Incorporated designs, manufactures and markets
optical and electro-optical components, devices
and materials for precision use in infrared,
near infrared, visible light and x-ray
instruments and applications. The Company’s
infrared products are used in high-power CO2
(carbon dioxide) lasers for industrial
processing worldwide. The Company’s VLOC
subsidiary manufactures near infrared and
visible light products used in industrial,
scientific and medical instruments and solid-
state (such as YAG and YLF) lasers. II-VI is
also developing and marketing solid-state x-ray
and gamma-ray products for the nuclear radiation
detection industry through its eV PRODUCTS
division.
Investor Information
II-VI Incorporated announces record first quarter results
II-VI Incorporated and Subsidiaries
($000 except per share data)
Condensed Consolidated Statements of Earnings (Unaudited)
Three Months Ended September 30, 1997 1996 Revenues Net sales $ 14,880 $ 11,592 Contract research and development 639 518 15,519 12,110 Costs, Expenses & Other Income Cost of goods sold 8,305 6,348 Contract research and development 471 395 Internal research and development 300 124 Selling, general and administrative 3,450 3,030 Other income - net (17) (125) 12,509 9,772 Earnings Before Income Taxes 3,010 2,338 Income Tax Expense 898 678 Net Earnings $ 2,112 $ 1,660 Earnings Per Share $ 0.32 $ 0.25 Average Shares Outstanding 6,684 6,743
September 30, June 30, 1997 1997 Assets Current Assets Cash and cash equivalents $ 7,097 $ 10,854 Accounts receivable,net 12,272 10,808 Inventories 8,836 8,129 Other current assets 1,097 991 Total Current Assets 29,302 30,782 Property, Plant & Equipment, net 23,577 19,631 Other Assets 4,016 4,099 56,953 54,512 Liabilities and Shareholders' Equity Current Liabilities Notes payable $ 776 $ 590 Accounts payable 2,906 3,207 Other current liabilities 4,210 5,896 Total Current Liabilities 7,950 9,693 Long-Term Debt--less current portion 2,651 684 Deferred Income Taxes 1,683 1,613 Shareholders' Equity 44,669 42,522 $ 56,953 $ 54,512CONTACT: Jim Martinelli, treasurer and chief financial officer of II-VI Incorporated, 412-352-5275
August 13, 1997
Bookings for the year increased 35% to $56,696,000 from $42,071,000 in last fiscal year. Bookings for the quarter increased 33% to $16,280,000 from $12,214,000 in the fourth quarter of last fiscal year. For the year, nearly 90% of the increase was attributable to increased demand for solid-state and infrared laser optics and materials, while 10% of the increase related to the eV PRODUCTS division. For the quarter, over half the increase was attributable to infrared optics and materials, about 25% to the eV PRODUCTS division and the remainder to solid-state laser materials and optics.
Manufacturing revenues for the fourth quarter and fiscal year were $13,858,000 and $50,084,000 respectively. This compares with last year’s fourth quarter and fiscal year manufacturing revenues of $10,937,000 and $36,266,000 respectively. For the quarter, approximately 80% of the increase is attributable to infrared laser optics and materials, and 20% to solid-state laser materials and optics. For the year, one-half of the increase is attributable to infrared laser optics and materials, about 45% to solid-state laser materials and optics and 5% to the eV PRODUCTS division.
Manufacturing gross margin was 45% of manufacturing revenues for this fiscal year as compared to 43% for last fiscal year. The fourth quarter manufacturing gross margin percentage was 45% as compared to 44% last year. The quarter and year-to- date increases reflect the lower per unit operating cost associated with the higher production volume and improved manufacturing efficiencies offset by the strengthening of the U.S. dollar against the Japanese yen.
Selling, general and administrative expenses for fiscal 1997 were $12,713,000 or 24% of revenues compared to $9,924,000 or 26% of revenues for last fiscal year. For the fourth quarter, selling, general and administrative expenses were $3,522,000 or 24% of revenues compared to $3,031,000 or 26% of revenues for the same period last year. The expense increase is attributable to higher compensation expense associated with the Company's worldwide profit-driven bonus programs and higher general and administrative expenses needed to support the Company’s growth.
Francis J. Kramer, president and chief operating officer said, "Customer demand for all our products continues to grow rapidly, and we’ve invested in the capacity required to meet this demand. During the past year our material production capacity for both ZnSe and YAG has been significantly expanded. Optical fabrication capacity has increased with the startup of II-VI China and investments in advanced machinery and equipment at our manufacturing plants in Singapore, Florida and Pennsylvania. At the present time we are constructing a 45,000 square foot manufacturing facility for our VLOC subsidiary in Port Richey, Florida and a 30,000 square foot manufacturing facility for our eV PRODUCTS division in Saxonburg, Pennsylvania. These investments in capacity are aimed to meet the increased demand of our current customers and win new customers in every market we serve."
* * * * *
Except for historical information contained herein, some matters discussed in this news release constitute forward- looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected. For information about factors that could cause the actual results to differ materially, please refer to the "Risk Factors" section in our 10-K dated September 24, 1996.
Headquartered in Saxonburg, Pennsylvania II-VI Incorporated designs, manufactures and markets optical and electro-optical components, devices and materials for precision use in infrared, near infrared, visible light and x-ray instruments and applications. The Company’s infrared products are used in high-power CO2 (carbon dioxide) lasers for industrial processing worldwide. The Company’s VLOC subsidiary manufactures near infrared and visible light products used in industrial, scientific and medical instruments and solid-state (such as YAG and YLF) lasers. II-VI is also developing and marketing solid- state x-ray and gamma-ray products for the nuclear radiation detection industry through its eV PRODUCTS division.
Three Months Ended June 30, 1997 1996 Revenues Net sales 13,858 10,937 Contract research and development 932 889 14,790 11,826 Costs, Expenses & Other Income Cost of goods sold 7,681 6,076 Contract research and development 683 674 Internal research and development 306 74 Selling, general and administrative 3,522 3,031 Other income - net (143) (122) 12,049 9,733 Earnings Before Income Taxes 2,741 2,093 Income Tax Expense 773 571 Net Earnings $ 1,968 $ 1,522 Earnings Per Share $ 0.30 $ 0.23 Average Shares Outstanding 6,650 6,734
Year Ended June 30, 1997 1996 Revenues Net sales 50,084 36,266 Contract research and development 2,657 1,674 52,741 37,940 Costs, Expenses & Other Income Cost of goods sold 27,580 20,588 Contract research and development 1,950 1,222 Internal research and development 1,002 514 Selling, general and administrative 12,713 9,924 Other income - net (488) (328) 42,757 31,920 Earnings Before Income Taxes 9,984 6,020 Income Tax Expense 2,873 1,649 Net Earnings $ 7,111 $ 4,371 Earnings Per Share $ 1.08 $ 0.70 Average Shares Outstanding 6,614 6,253CONTACT: Jim Martinelli, treasurer and chief financial officer of II-VI Incorporated, 412-352-4455II-VI Incorporated and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited)
June 30, June 30, 1997 1996 Assets Current Assets Cash and cash equivalents $ 10,854 $ 9,417 Accounts receivable,net 10,808 8,712 Inventories 8,129 5,490 Other current assets 991 1,036 Total Current Assets 30,782 24,655 Property, Plant & Equipment, net 19,631 15,085 Other Assets 4,099 4,429 54,512 44,169 Liabilities and Shareholders' Equity Current Liabilities Notes payable $ 590 $ 1,393 Accounts payable 3,207 1,260 Other current liabilities 5,896 5,315 Total Current Liabilities 9,693 7,968 Long-Term Debt--less current portion 684 45 Deferred Income Taxes 1,613 1,753 Shareholder's Equity 42,522 34,403 $ 54,512 $ 44,169
($000)
Francis J. Kramer, president and chief operating officer of II-VI Incorporated, commented on this product and the growth of the eV PRODUCTS Division stating, "This order is a good example of our improved CdZnTe detection technology and the rapid growth opportunities available for the eV PRODUCTS Division. We have worked closely with Neoprobe Corporation for several years, and this order is the result of significant investments in this technology."
David C. Bupp, president of Neoprobe Corporation, said, "The eV PRODUCTS Division of II-VI Incorporated has provided strong support for the development of this key component of our instruments. Our past and future investments in the advancement of this technology may provide benefits to many cancer patients worldwide."
Neoprobe Corporation, based in Dublin, Ohio, is developing products which may improve the standard of care, enhance the quality of life, and extend survival for patients with cancer and other life threatening conditions.
II-VI Incorporated, headquartered in Saxonburg, Pennsylvania, designs, manufactures and markets optical and electro-optical components, devices and materials for precision use in infrared, near infrared, visible light and x-ray instruments and applications. The Company's infrared products are used in high-power CO2 (carbon dioxide) lasers for industrial processing worldwide. The Company's VLOC subsidiary manufactures near infrared and visible light products used in industrial, scientific and medical instruments and solid-state (such as YAG and YLF) lasers. II-VI is also developing and marketing solid-state x-ray and gamma-ray products for the nuclear radiation detection industry through its eV PRODUCTS division.
CONTACT: Jim Martinelli, treasurer and chief financial officer of II-VI Incorporated, 412-352-4455
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