News Article
II-VI Compound Semi segment earnings escalate by 75%
Revenues for the quarter in the CS division increased 17.8% to $16.9 million from $14.4 million in the third quarter of the last fiscal year.
II-VI Incorporated has reported results for its third fiscal quarter ended March 31, 2011.
Bookings in the Compound Semiconductor Group for the quarter increased 41% to $19.3 million compared to $13.4 million in the third quarter of the last fiscal year.
Revenues for the quarter in the division increased 17.8% to $16.9 million from $14.4 million in the third quarter of the last fiscal year.
Earnings in the CS division increased by a whopping 74.9% over the same quarter last year, from $1.6 million to $2.9 million.
On January 4, 2010, the Company completed its acquisition of Photop Technologies (Photop). Company results include Photop's results for the three and nine months ended March 31, 2011. On December 6, 2010, the Company completed its acquisition of Max Levy Autograph (MLA). Results for the quarter ended March 31, 2011 include the operating results of MLA since the acquisition date.
Bookings for the quarter increased 30% to a record $142.9 million compared to $110 million in the third quarter of last fiscal year. Included in bookings for the three months ended March 31, 2011 were approximately $36.8 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 for the quarter increased 33% to a record $130 million from $97.5 million in the third quarter of last fiscal year. Included in revenues for the three months ended March 31, 2011 were approximately $32.4 million of revenues attributable to Photop.
Net earnings attributed to II-VI Incorporated for the quarter were $23.1 million or $0.72 per share-diluted, compared with net earnings of $10.3 million or $0.33 per share-diluted, in the third quarter of last fiscal year.
Francis J. Kramer, president and chief executive officer said, "We achieved record bookings and revenues in the third fiscal quarter as strong positive momentum continued across almost all markets. Bookings increased 30%, revenues were up 33% and earnings more than doubled from the year-ago quarter. Orders in the Infrared Optics segment and at Photop were particularly strong - up 38% and 39%, respectively, from the year-ago quarter and 12% and 24%, respectively, from the quarter ended December 31, 2010. Our backlog stands at $176.5 million, an increase of 23% from March 31, 2010 and 9% from December 31, 2010. Earnings of $0.72 per share-diluted primarily resulted from increases in sales volume and operating efficiencies. The effective tax rate for the quarter was lower to reflect the increased profit contribution from our foreign operations; revenues outside of the U.S. accounted for over 60% of our total revenues for the quarter."
Kramer continued, "Quarterly EBITDA performance and cash flow generation continue to strengthen. EBITDA for the quarter increased 63% from the same period last fiscal year and 9% from the December 31, 2010 period. During the quarter, we made strategic capital investments of $14 million, after which our cash balance still increased $9 million. Robust market momentum, strong operating performance and a record order backlog are causing us to increase our guidance for the fourth quarter and fiscal year."
Kramer concluded, "We are in the process of preparing the II-VI Incorporated operating plan for fiscal year 2012. We see continuing strength in industrial markets as global economies rebound. Near-infrared market growth appears positive overall, with ongoing strength in China. We are monitoring U.S. military spending to assess the effects any changes may have on our military businesses. We expect to introduce guidance for fiscal year 2012 in June 2011."
