II-VI reports Q4/FY end results

Aug. 6, 2008
Bookings from continuing operations for the quarter increased 31% to $92,159,000 compared to $70,445,000 in the fourth quarter of last fiscal year. Bookings from continuing operations for the year ended June 30, 2008 increased 30% to a record $345,316,000 from $266,602,000 last fiscal year.

II-VI Inc. reported results for its fourth quarter and fiscal year ended June 30, 2008. As previously announced on April 4, 2008, the company intends on selling its x-ray and gamma-ray radiation sensor business, eV PRODUCTS, Inc., which operates as a business within the Compound Semiconductor Group. Results for all periods presented reflect the presentation of eV PRODUCTS as a discontinued operation.

Bookings from continuing operations for the quarter increased 31% to $92,159,000 compared to $70,445,000 in the fourth quarter of last fiscal year. Bookings from continuing operations for the year ended June 30, 2008 increased 30% to a record $345,316,000 from $266,602,000 last fiscal year. Bookings are defined as customer orders received that are expected to be converted into revenues during the next 12 months.
Revenues from continuing operations for the quarter increased 31% to a record $91,809,000 from $69,843,000 in the fourth quarter of last fiscal year. Revenues from continuing operations for the year ended June 30, 2008 increased 24% to a record $316,191,000 from $254,684,000 last fiscal year.

For the quarter ended June 30, 2008, net earnings from continuing operations were $15,351,000 or $0.50 per share-diluted compared with $11,356,000 or $0.37 per share-diluted in the fourth quarter of last fiscal year. After giving effect to a net loss from the discontinued operation ($513,000 or $0.02 per share-diluted for the quarter compared to $47,000 or $0.00 per share-diluted in the fourth quarter of last fiscal year), consolidated net earnings for the quarter were $14,838,000 or $0.49 per share-diluted compared with $11,309,000 or $0.37 per share-diluted in the fourth quarter of last fiscal year.

For the year ended June 30, 2008, net earnings from continuing operations were $65,693,000 or $2.16 per share-diluted compared with $38,442,000 or $1.27 per share-diluted last fiscal year. After giving effect to a net loss from the discontinued operation ($1,425,000 or $0.05 per share-diluted for the year compared to $476,000 or $0.02 per share-diluted in the same period one year ago), consolidated net earnings were $64,268,000 or $2.11 per share-diluted compared with $37,966,000 or $1.25 per share-diluted last fiscal year. Net earnings for the year ended June 30, 2008 includes an after-tax gain of $0.52 per share-diluted on the sale of an equity investment.

Francis J Kramer, president and chief executive officer said, "We are very pleased to report solid performance for the quarter and fiscal year ended June 30, 2008. Pacific Rare Specialty Metals & Chemicals, Inc. (PRM) completed its first year with II-VI and contributed strong bookings, revenue and earnings. PRM's performance helped the Military and Materials segment to more than double bookings and segment earnings on an 86% increase in revenues. In the Compound Semiconductor Group, Marlow Industries, Inc. posted admirable quarter and fiscal year operating results; this business continues to benefit from growing worldwide product acceptance and increasing use of its Vietnam manufacturing base. Our Infrared Optics segment improved its operating and financial performance during the quarter and is focused on another year of double-digit organic growth. We expect fiscal year 2009 will be another good year for the Company as we benefit from both a strong order backlog and strong balance sheet. We have increased our fiscal year 2009 guidance from the initial guidance we gave on April 22, 2008 for this fiscal year."

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