Exhibit 99.1
Press Release |  | II-VI Incorporated | ||
375 Saxonburg Boulevard Saxonburg, Pennsylvania 16056 Telephone (724) 352-4455 |
| Release Date: | March 17, 2014 | Contact: | Craig A. Creaturo | |||
| Chief Financial Officer and Treasurer | ||||||
| (724) 352-4455 | ||||||
| ccreaturo@ii-vi.com | ||||||
| Homepage: www.ii-vi.com |
II-VI INCORPORATED UPDATES GUIDANCE
FOR THE QUARTER ENDING MARCH 31, 2014 AND
FISCAL YEAR ENDING JUNE 30, 2014
PITTSBURGH, PA., March 17, 2014 — II-VI Incorporated (NASDAQ: IIVI) (“IIVI” or the “Company”) today announced updated guidance for its third fiscal quarter ending March 31, 2014 and the fiscal year ending June 30, 2014.
For the third fiscal quarter ending March 31, 2014 the Company currently expects revenues from continuing operations to range from $165 million to $170 million, which is below the Company’s prior guidance provided January 28, 2014 of $175 million to $180 million. The Company now currently expects that earnings per share from continuing operations for the third fiscal quarter ending March 31, 2014 will range from $0.10 to $0.13, which is below the Company’s prior guidance provided January 28, 2014 of $0.15 to $0.18.
For the fiscal year ending June 30, 2014, the Company currently expects revenues from continuing operations to range from $670 million to $685 million, which is below the Company’s prior guidance provided January 28, 2014 of $700 million to $710 million. The Company currently expects that earnings per share from continuing operations for the fiscal year ending June 30, 2014 will range from $0.55 to $0.60, which is below the Company’s prior guidance provided January 28, 2014 of $0.67 to $0.74.
For its third fiscal quarter ending March 31, 2014, the Company currently expects to record one-time restructuring and other charges that will reduce earnings per share by approximately $0.03. These charges relate to cost reductions at its newly acquired businesses, Laser Enterprise and Network Solutions in the Active Optical Products segment and at its VLOC subsidiary in the Military & Materials segment. In addition, at its HIGHYAG subsidiary in the Infrared Optics segment, shipment delays to customers following HIGHYAG’s recent relocation to a new manufacturing facility are also currently expected to have a negative impact on revenues and earnings per share. Finally, while the Company expects positive revenues and earnings per share improvements from its operating segments in the fourth quarter compared to the third quarter of the fiscal year ending June 30, 2014, these growth rate expectations have been tempered by a combination of operational and market circumstances. The financial impact of the activities described in this paragraph has been included in the updated guidance provided above.
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II-VI Incorporated
March 17, 2014
Page 2
Francis J. Kramer, President and Chief Executive Officer said, “Since our previous guidance we decided to make challenging actions based on necessary decisions to reduce the operating cost structure of our Laser Enterprise and Network Solutions businesses. We believe these actions will streamline their operating platforms and enable them to increase long-term profitability. While customer demand at our HIGHYAG subsidiary remains strong, manufacturing relocation challenges are temporarily slowing production and order fulfillment. We expect these short-term issues to be resolved soon so that the final quarter of fiscal year 2014 will show an improvement over current-period results. We remain optimistic that positive operating momentum will continue to build as we enter fiscal year 2015.”
About II-VI Incorporated
II-VI Incorporated, a global leader in engineered materials and opto-electronic components, is a vertically-integrated manufacturing company that creates and markets products for diversified markets including industrial manufacturing, optical communications, military and aerospace, high-power electronics, semiconductor laser 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, silicon carbide for high-power electronic and microwave applications, and bismuth telluride for thermoelectric coolers. In the Company’s infrared optics business, II-VI Infrared manufactures optical and opto-electronic components for industrial laser and thermal imaging systems and HIGHYAG Lasertechnologie GmbH (HIGHYAG) manufactures fiber-delivered beam delivery systems and processing tools for industrial lasers.
In the Company’s near-infrared optics business, Photop Technologies, Inc. (Photop) manufactures crystal materials, optics, microchip lasers and opto-electronic modules for use in optical communication networks and other diverse consumer and commercial applications. Photop Aegis, Inc. (Aegis) manufactures tunable optical devices required for high speed optical networks that provide the bandwidth expansion necessary for increasing internet traffic. Through its Australian subsidiary, Photop AOFR Pty Limited, Aegis also manufactures fused fiber components, including those required for fiber lasers for material processing applications, as well as optical couplers used primarily in the optical communication industry.
In the Company’s military & materials business, LightWorks Optical Systems, Inc. (formerly Exotic Electro-Optics and LightWorks Optics, Inc.) manufactures products for military applications and precision optical systems, and components for defense, aerospace, industrial and life science applications. Pacific Rare Specialty Metals & Chemicals (PRM) produces and refines a rare earth element and selenium. Max Levy Autograph, Inc. (MLA) manufactures micro-fine conductive mesh patterns for optical, mechanical and ceramic components for applications such as circuitry, metrology standards, targeting calibration and suppression of electro-magnetic interference. VLOC manufactures near-infrared and visible light products for military applications and laser gain materials and products for solid-state YAG and YLF lasers.
In the Company’s advanced products group, the 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. Marlow Industries, Inc. (Marlow) designs and manufactures thermoelectric cooling and power generation solutions for use in defense, space, photonics, telecommunications, medical, consumer and industrial markets. Worldwide Materials Group (WMG) provides expertise in materials development, process development and manufacturing scale up. M Cubed Technologies, Inc. (M Cubed) develops and markets advanced composite materials serving the semiconductor, display, industrial and defense markets.
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II-VI Incorporated
March 17, 2014
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In the Company’s active optical products segment, II-VI Laser Enterprise GmbH is an industry-leading manufacturer of high-power semiconductor laser components enabling fiber and direct diode laser systems for material processing, medical, consumer and printing applications. In addition, II-VI Laser Enterprise manufactures pump lasers for optical amplifiers for both terrestrial and submarine applications and vertical cavity surface emitting lasers (VCSELs) for optical navigation, optical interconnects and optical sensing applications. II-VI Network Solutions Division is an industry leading manufacturer of customized solutions providing customers with end-to-end design and manufacturing support to enable rapid realization of customer-specific amplification and micro-optics solutions.
Forward-looking Statements
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 global 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, 2013; (iii) the purchasing patterns from customers and end-users; (iv) the 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; (vi) the Company’s ability to assimilate recently acquired businesses, and risks, costs and uncertainties associated with such acquisitions; and/or (vii) the Company’s ability to devise and execute strategies to respond to market conditions. The Company disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events or developments, or otherwise.
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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