Coherent (COHR) 8-K Reports Third Quarter Earnings on Record Revenues

Exhibit 99.1

Press Release II-VI Incorporated 375 Saxonburg Boulevard Saxonburg, Pennsylvania 16056 Telephone (724) 352-4455

Release Date: April 24, 2007 Contact: Craig A. Creaturo Chief Financial Officer and Treasurer (724) 352-4455 ccreaturo@ii-vi.com Homepage: www.ii-vi.com

II-VI INCORPORATED

REPORTS THIRD QUARTER EARNINGS ON RECORD REVENUES

PITTSBURGH, PA., April 24, 2007 — II-VI Incorporated (NASDAQ NGS: IIVI) today reported results for its third quarter ended March 31, 2007. Revenues for the quarter increased 13% to a record $67,085,000 from $59,363,000 in the third quarter of last fiscal year. Revenues for the nine months ended March 31, 2007 increased 14% to $191,224,000 from $167,581,000 for the same period last fiscal year. Net earnings for the quarter were $10,049,000 or $0.33 per share-diluted. These results compare with net earnings of $7,450,000 or $0.25 per share-diluted in the third quarter of last fiscal year. For the nine months ended March 31, 2007, net earnings were $26,657,000 or $0.88 per share-diluted. This compares with net earnings of $19,379,000 or $0.65 per share-diluted for the same period last fiscal year.

Bookings for the quarter increased 8% to $66,578,000 compared to $61,434,000 in the third quarter of last fiscal year. Bookings for the nine months ended March 31, 2007 increased 11% to $203,026,000 from $183,439,000 for the same period last fiscal year. Bookings are defined as customer orders received that are expected to be converted into revenues during the next 12 months.

Francis J. Kramer, president and chief operating officer said, “Highlights affecting the record revenues for the third quarter were a significant financial improvement by our Near-Infrared Optics business segment and increased sales of UV filter products, combined with record revenues from our Infrared Optics business segment. Meanwhile, certain process and capacity issues combined with higher raw material and internal research and development costs in the Infrared Optics business resulted in reduced margins for that segment compared to the prior year. The operational performance of our Military Infrared Optics business segment continues to improve with year to date segment earnings up over $2 million when compared to the same period one year ago. The Compound Semiconductor Group’s record level of bookings for the quarter at over $17 million indicate continued growth from this business segment.”

Kramer continued, “During the quarter, we further strengthened our balance sheet and reduced our debt while making essential investments in equipment and facilities to expand our production capacity. We expect record revenues for the fourth quarter of fiscal year 2007, as well as continued revenue and earnings per share growth in fiscal year 2008.”

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II-VI Incorporated

April 24, 2007

Page 2

Segment Information

The following segment information includes segment earnings (defined as earnings before income taxes, interest expense and other income or expense, net). Management believes segment earnings are a useful performance measure because they reflect the results of segment performance over which management has direct control.

	Three Months Ended March 31,							Nine Months Ended March 31,
	2007		2006			% Increase (Decrease)		2007		2006			% Increase (Decrease)
Bookings:
Infrared Optics	$	34,726	$	34,108		2	%	$	98,853	$	90,962		9	%
Near-Infrared Optics		8,826		8,734		1	%		41,421		32,356		28	%
Military Infrared Optics		5,778		6,315		(9	)%		20,357		20,528		(1	)%
Compound Semiconductor Group		17,248		12,277		40	%		42,395		39,593		7	%
Total Bookings	$	66,578	$	61,434		8	%	$	203,026	$	183,439		11	%
Revenues:
Infrared Optics	$	34,000	$	32,365		5	%	$	97,652	$	87,970		11	%
Near-Infrared Optics		12,866		6,886		87	%		35,105		22,867		54	%
Military Infrared Optics		7,065		7,707		(8	)%		19,714		21,806		(10	)%
Compound Semiconductor Group		13,154		12,405		6	%		38,753		34,938		11	%
Total Revenues	$	67,085	$	59,363		13	%	$	191,224	$	167,581		14	%
Segment Earnings (Loss):
Infrared Optics	$	8,817	$	10,836		(19	)%	$	26,414	$	26,653		(1	)%
Near-Infrared Optics		1,512		(279	)	N/A			4,346		792		449	%
Military Infrared Optics		966		411		135	%		1,810		(495	)	N/A
Compound Semiconductor Group		852		524		63	%		1,865		409		356	%
Total Segment Earnings	$	12,147	$	11,492		6	%	$	34,435	$	27,359		26	%

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II-VI Incorporated

April 24, 2007

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Outlook

For the fourth fiscal quarter ending June 30, 2007, II-VI Incorporated (the “Company” or “II-VI”) currently forecasts revenues to range from $67.5 million to $69.5 million and earnings per share to range from $0.30 to $0.33. Results for the quarter ended June 30, 2006 were revenues of $64.9 million and loss per share of $(0.29). For the fiscal year ending June 30, 2007, the Company expects revenues to range from $259 million to $261 million and earnings per share to range from $1.19 to $1.22. Results for the year ended June 30, 2006 were revenues of $232.5 million and earnings per share of $0.36. The results for the quarter and the year ended June 30, 2006 included a non-cash goodwill impairment charge of approximately $17.6 million which negatively impacted earnings per share by $0.59.

For the fiscal year ending June 30, 2008, the Company anticipates revenues to increase between 11% and 13% from the revenues forecasted for June 30, 2007. The Company also anticipates earnings per share to increase between 11% and 14% from the earnings per share forecasted for June 30, 2007.

Other Information

The Company also announced today it had completed its investment in Guangdong Fuxin Electronic Technology Company (Fuxin). The Company’s recent partnership with Fuxin was previously announced in a II-VI press release on March 26, 2007. Fuxin, a leader in thermoelectric-based consumer appliances, has begun to work with II-VI’s subsidiary, Marlow Industries, Inc., to expand opportunities in thermoelectrics. II-VI invested approximately $3 million to become a non-controlling minority investor in Fuxin.

Webcast Information

The Company will host a conference call at 9:00 a.m. Eastern Time on Tuesday, April 24, 2007 to discuss these results. The conference call will be broadcast live over the internet and can be accessed by all interested parties from the Company’s web site atwww.ii-vi.com as well as athttp://www.videonewswire.com/event.asp?id=38834. 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 two weeks following the call.

About II-VI Incorporated

II-VI Incorporated, the worldwide leader in crystal growth technology, creates and markets products for a diversified customer base including industrial manufacturing, military and aerospace, medical radiology, high-power electronics and telecommunications, and thermoelectronics applications. Headquartered in Saxonburg, Pennsylvania, with manufacturing, sales, and distribution facilities worldwide, the Company produces numerous crystalline compounds including zinc selenide for infrared laser optics, cadmium zinc telluride for gamma radiation detectors, silicon carbide for high-power electronic and microwave applications, and bismuth telluride for thermoelectric coolers.

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II-VI Incorporated

April 24, 2007

Page 4

The Company’s infrared optics business, II-VI Infrared, manufactures optical and opto-electronic components for industrial laser and thermal imaging systems. The Company’s near-infrared optics business, VLOC, manufactures near-infrared and visible light products for industrial, scientific, military and medical instruments and laser gain materials and products for solid-state YAG and YLF laser. The Company’s military infrared optics business, Exotic Electro-Optics (EEO), manufactures infrared products for military applications. In the Company’s Compound Semiconductor Group, the Company’s eV PRODUCTS division manufactures and markets solid-state x-ray and gamma-ray sensor products and materials for use in medical, industrial, environmental, scientific and homeland security applications; the Company’s Wide Bandgap Materials (WBG) group manufactures and markets single crystal silicon carbide substrates for use in the solid-state lighting, wireless infrastructure, RF electronics and power switching industries; the Company’s Marlow Industries, Inc. subsidiary designs and manufactures thermoelectric cooling and power generation solutions for use in defense, space, photonics, telecommunications, medical, consumer and industrial markets; and, the Company’s Advanced Materials Development Center (AMDC) provides expertise in materials development, process development, and manufacturing scale up.

This press release contains forward-looking statements based on certain assumptions and contingencies that involve risks and uncertainties. The forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and relate to the Company’s performance on a going-forward basis. The forward-looking statements in this press release involve risks and uncertainties, which could cause actual results, performance or trends to differ materially from those expressed in the forward-looking statements herein or in previous disclosures. The Company believes that all forward-looking statements made by it have a reasonable basis, but there can be no assurance that management’s expectations, beliefs or projections as expressed in the forward-looking statements will actually occur or prove to be correct. In addition to general industry and economic conditions, factors that could cause actual results to differ materially from those discussed in the forward-looking statements in this press release include, but are not limited to: (i) the failure of any one or more of the assumptions stated above to prove to be correct; (ii) the risks relating to forward-looking statements and other “Risk Factors” discussed in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2006; (iii) purchasing patterns from customers and end-users; (iv) timely release of new products, and acceptance of such new products by the market; (v) the introduction of new products by competitors and other competitive responses; and/or (vi) the Company’s ability to devise and execute strategies to respond to market conditions.

CONTACT: Craig A. Creaturo, Chief Financial Officer and Treasurer of II-VI Incorporated, 724-352-4455, or e-mail,ccreaturo@ii-vi.com.

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II-VI Incorporated and Subsidiaries

Condensed Consolidated Statements of Earnings (Unaudited)

(000 except per share data)

	Three Months Ended March 31,
	2007			2006
Revenues
Net sales	$	63,290		$	56,642
Contract research and development		3,795			2,721
Total Revenues		67,085			59,363
Costs, Expenses & Other (Income) Expense
Cost of goods sold		36,224			32,960
Contract research and development		2,741			2,095
Internal research and development		1,614			1,604
Selling, general and administrative		14,359			11,212
Interest expense		204			458
Other (income), net		(518	)		(164	)
Total Costs, Expenses, Other (Income) Expense		54,624			48,165
Earnings Before Income Taxes		12,461			11,198
Income Taxes		2,412			3,748
Net Earnings	$	10,049		$	7,450
Diluted Earnings Per Share	$	0.33		$	0.25
Average Shares Outstanding – Diluted		30,336			29,931

II-VI Incorporated and Subsidiaries

Condensed Consolidated Statements of Earnings (Unaudited)

(000 except per share data)

	Nine Months Ended March 31,
	2007			2006
Revenues
Net sales	$	182,339		$	160,599
Contract research and development		8,885			6,982
Total Revenues		191,224			167,581
Costs, Expenses & Other (Income) Expense
Cost of goods sold		104,078			95,677
Contract research and development		6,643			5,052
Internal research and development		4,476			5,481
Selling, general and administrative		41,592			34,012
Interest expense		873			1,313
Other (income), net		(1,963	)		(1,562	)
Total Costs, Expenses, Other (Income) Expense		155,699			139,973
Earnings Before Income Taxes		35,525			27,608
Income Taxes		8,868			8,229
Net Earnings	$	26,657		$	19,379
Diluted Earnings Per Share	$	0.88		$	0.65
Average Shares Outstanding – Diluted		30,159			29,952

II-VI Incorporated and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)

(000)

	March 31, 2007		June 30, 2006
Assets
Current Assets
Cash and cash equivalents	$	26,048	$	26,885
Accounts receivable, net		45,446		42,122
Inventories		54,877		48,454
Deferred income taxes		9,186		7,561
Other current assets		3,333		2,611
Total Current Assets		138,890		127,633
Property, Plant & Equipment, net		81,648		77,713
Goodwill		24,801		23,293
Other Intangible Assets, net		14,263		14,968
Investment		3,042		2,437
Other Assets		4,876		4,252
Total Assets	$	267,520	$	250,296
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable	$	13,039	$	9,540
Current portion of long-term debt		2,607		7,553
Other current liabilities		25,092		27,942
Total Current Liabilities		40,738		45,035
Long-Term Debt—less current portion		11,708		23,614
Other Liabilities		10,431		11,056
Shareholders’ Equity		204,643		170,591
Total Liabilities and Shareholders’ Equity	$	267,520	$	250,296

II-VI Incorporated and Subsidiaries

Other Selected Financial Information (Unaudited)

($000 except per share data)

The following other selected financial information includes earnings before interest, income taxes, depreciation and amortization (EBITDA). Management believes EBITDA is a useful performance measure because it reflects operating profitability before certain non-operating expenses and non-cash charges.

Other Selected Financial Information

	Three Months Ended March 31,				Nine Months Ended March 31,
	2007		2006		2007		2006
EBITDA	$	16,475	$	15,401	$	48,385	$	40,368
Cash paid for capital expenditures	$	5,398	$	3,112	$	13,837	$	12,684
Net payments on indebtedness	$	4,514	$	2,887	$	16,790	$	7,813
Incentive stock option and performance share compensation expense, pre-tax	$	727	$	682	$	2,263	$	1,636
Cash paid for shares repurchased through the Company’s stock repurchase program	$	—	$	1,225	$	502	$	1,722
Shares repurchased through the Company’s stock repurchase program		—		68,700		19,500		96,100

Reconciliation of Segment Earnings and EBITDA to Earnings Before Income Taxes

	Three Months Ended March 31,						Nine Months Ended March 31,
	2007			2006			2007			2006
Total Segment Earnings	$	12,147		$	11,492		$	34,435		$	27,359
Interest expense		204			458			873			1,313
Other (income), net		(518	)		(164	)		(1,963	)		(1,562	)
Earnings before income taxes	$	12,461		$	11,198		$	35,525		$	27,608
EBITDA	$	16,475		$	15,401		$	48,385		$	40,368
Interest expense		204			458			873			1,313
Depreciation and amortization		3,810			3,745			11,987			11,447
Earnings before income taxes	$	12,461		$	11,198		$	35,525		$	27,608

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