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 PITTSBURGH, Aug. 20 /PRNewswire/ -- II-VI Incorporated (NASDAQ-NMS: IIVI) today reported earnings for the fiscal year ended June 30, 1993.
 Net earnings for the period were $75,000 ($0.03 per share) on revenues of $17,169,000. These results compare with net earnings of $738,000 ($0.28 per share) on revenues of $16,600,000 in fiscal 1992. Bookings for the current year were $18,889,000 vs. $16,208,000 a year ago. Contract research and development orders accounted for $1,353,000 of the bookings increase.
 The company attributed the decrease in net earnings for fiscal 1993 to decreased gross margins primarily due to lower optics prices as the worldwide recession continues to affect the capital intensive CO2 laser machine tool industry. Also affecting earnings unfavorably were lower optics manufacturing efficiencies, increased development expenses for the eV Production Division's radiation detector line and lower manufacturing yields and shipments in the infrared materials area. Order bookings improved as compared to last year in the domestic industrial, domestic military aerospace and export industrial markets. The excess infrared optics capacity of the combined U.S. and Singapore facilities resulting from the current slow market conditions continued to inhibit overall profitability.
 For the three months ended June 30, 1993, II-VI reported net earnings of $19,000 ($0.01 per share) on revenues of $4,609,000. This compares with net earnings of $52,000 ($0.02 per share) on revenues of $3,940,000 for the same quarter last year. Bookings in the current quarter, including contract research and development orders of $2,343,000, were $6,184,000 vs. $3,221,000 in the fourth quarter of fiscal 1992.
 Decreased earnings in the fourth quarter of fiscal 1993 as compared to last year were primarily due to lower gross margins in the infrared materials area due to lower manufacturing yields and lower shipments, and, increased corporate overhead costs. These reductions were partially offset by increased optics gross margins associated with increased shipments.
 The markets in which II-VI operates have been difficult during the last 12 months. While economic conditions have improved slightly in the United States, all indicators point to continued weakness in Europe and Asia. Marketshare gains and pricing levels to achieve these gains are continued areas of II-VI focus, while the economies of the world continue drifting. II-VI intends to continue its strategy to focus on increasing marketshare during fiscal 1994.
 As of June 30, 1993, the company has deferred a $699,000 capital gain in anticipation of certain settlement costs, in connection with the company's restructuring of its Japanese marketing. II-VI Incorporated is terminating its distributor in Japan and will market directly in the future. II-VI Incorporated sold its ownership position in the Japanese distributor and is currently negotiating a final transition agreement. It is anticipated that there will be costs associated with the final transition agreement. These costs could offset some or all of the deferred gain.
 Headquartered in Saxonburg, Pa., II-VI Incorporated designs, manufactures and markets optical and electro-optical components and materials for precision use in infrared devices. The company's infrared products are used in high-power lasers for industrial processing and for military sensing systems. II-VI is currently developing products for the radiation detection market through its recently formed eV Products Division. Markets addressed by eV's hybrid preamplifiers and radiation detectors for nuclear instruments include industrial gauging, medical imaging, health monitoring and high energy physics research and development.
 Consolidated Statements of Earnings (Unaudited)
 ($000 except per share data)
 Period Ended Three Months
 June 30 1993 1992
 Net sales $4,260 $3,637
 Contract research and development 349 303
 4,609 3,940
 Costs, expenses and other income
 Cost of goods sold 3,092 2,508
 Contract research and development 262 211
 Internal research and development 105 53
 Selling, general and administrative
 expenses 1,143 982
 Interest and other expense
 (income) - net (25) 59
 4,577 3,813
 Earnings before income taxes 32 127
 Income taxes 13 75
 Net earnings 19 52
 Earnings per share $0.01 $0.02
 Average shares outstanding 2,598 2,647
 Period Ended Fiscal Year
 June 30 1993 1992
 Net sales $16,067 $15,869
 Contract research and development 1,102 731
 17,169 16,600
 Costs, expenses and other income
 Cost of goods sold 11,421 10,316
 Contract research and development 820 517
 Internal research and development 266 424
 Selling, general and administrative
 expenses 4,455 4,085
 Interest and other expense
 (income) - net 94 226
 17,056 15,568
 Earnings before income taxes 113 1,032
 Income taxes 38 294
 Net earnings 75 738
 Earnings per share $0.03 $0.28
 Average shares outstanding 2,627 2,647
 -0- 8/20/93
 /CONTACT: John M. Sherbin II, treasurer and chief financial officer of II-VI, 412-352-4455/

CO: II-VI Incorporated ST: Pennsylvania IN: ARO CPR SU: ERN

KC-CD -- PG006 -- 4756 08/20/93 16:03 EDT
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Publication:PR Newswire
Date:Aug 20, 1993

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