News Article
II-VI Incorporated Exceeds Third-Quarter Earnings Estimates
II-VI Incorporated reports results for its third quarter ended March 31, 2010.
On January 4, 2010, the Company completed its acquisition of Photop Technologies, Inc. (Photop). The initial consideration consisted of cash of $45.6 million and 1,145,852 shares of II-VI Incorporated common stock. In addition, the purchase agreement provided up to $12.0 million of additional cash earn-out opportunities based upon Photop achieving certain agreed-upon financial targets in calendar years 2010 and 2011. Company results for the three and nine months ended March 31, 2010 include three months of Photop operating results as well as acquisition-related expenses.
Bookings from continuing operations for the quarter increased 77% to a record $109,963,000 compared to $62,252,000 in the third quarter of last fiscal year. Bookings from continuing operations for the nine months ended March 31, 2010 increased 28% to $261,610,000 from $203,884,000 for the same period last fiscal year. Included in bookings for the three and nine months ended March 31, 2010 were approximately $26.5 million 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 from continuing operations for the quarter increased 52% to a record $97,531,000 from $64,111,000 in the third quarter of last fiscal year. Revenues from continuing operations for the nine months ended March 31, 2010 increased 3% to $231,854,000 from $226,155,000 for the same period last fiscal year. Included in revenues for the three and nine months ended March 31, 2010 were approximately $20.2 million of revenues attributable to Photop.
Net earnings attributable to II-VI Incorporated for the quarter ended March 31, 2010 were $10,313,000 or $0.33 per share-diluted compared with net earnings attributable to II-VI Incorporated of $4,810,000 or $0.16 per share-diluted in the third quarter of last fiscal year. Net earnings attributable to II-VI Incorporated for the nine months ended March 31, 2010 were $22,600,000 or $0.74 per share-diluted compared with net earnings attributable to II-VI Incorporated of $30,664,000 or $1.02 per share-diluted for the same period last fiscal year.
Francis J. Kramer, president and chief executive officer said, "We experienced strong customer demand across almost all our markets during the quarter. Infrared Optics demand was especially robust as bookings increased 69% from the same quarter last fiscal year and 17% from the December 31, 2009 quarter. For the third consecutive quarter total company bookings outpaced revenues. As a result, our order backlog was $144 million at March 31, 2010; of that amount, Photop contributed $17 million. Overall, our backlog is up 40% since June 30, 2009."
Kramer continued, "During the quarter, we also completed the acquisition of Photop, which had a positive contribution to our record bookings and revenues. Photop's operational and financial results exceeded our expectations for the quarter and, due to improved strength and visibility in the telecommunications markets they serve, we have increased our outlook for Photop's revenue contribution for the quarter ending June 30, 2010. Our Military and Materials group continues to produce solid revenues and earnings.
Kramer concluded, "Quarterly EBITDA performance and cash flow generation exceeded our expectations. EBITDA for the quarter was up 65% from the same quarter last fiscal year and 82% from the December 31, 2009 quarter. Our cash balance now exceeds the June 30, 2009 level and we expect cash to continue to increase as we complete the final quarter of fiscal year 2010. Because of current market strength and visibility, we are confident in increasing our guidance for the fourth quarter and fiscal year.
Effective July 1, 2009, the Company adopted Noncontrolling Interest in Consolidated Financial Statements -- an amendment of ARB No.51, which was retroactively applied to all periods presented. As announced on June 12, 2009, the Company sold its x-ray and gamma-ray radiation sensor business, eV PRODUCTS, Inc., which operated as a business within the Compound Semiconductor Group. Results for the three and nine month periods ended March 31, 2009 reflect the presentation of eV PRODUCTS as a discontinued operation
