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II-VI Incorporated Simplifies Its Organizational Structure

PITTSBURGH, Oct. 1, 2014 (GLOBE NEWSWIRE) -- As of July 1, 2014, II-VI Incorporated (Nasdaq:IIVI) ("II-VI" or the "Company") has simplified its organizational structure.

The Company has realigned from five to three reporting segments and will report its results as follows: (i) II-VI Laser Solutions, (ii) II-VI Photonics, and (iii) II-VI Performance Products. To reflect the updated segment organization, this release contains revised consolidated segment information for fiscal years ending June 30, 2014, 2013 and 2012, including select quarterly segment information.

  • II-VI Laser Solutions contains the former Infrared Optics segment, the semiconductor laser portion of the former Active Optical Products segment, and smaller units of high power laser technology from the former Near Infrared Optics segment.
  • II-VI Photonics contains the remaining majority of the former Near Infrared Optics segment as well as the pump laser and optical amplifier businesses of the former Active Optical Products segment.
  • II-VI Performance Products contains the former Military & Materials and the former Advanced Products Group segments.

The Company's goals with these changes are to increase our focus on end markets and customers, better align our businesses and technical processes, improve our line of sight on profitability and cash usage, and streamline our communications.

The unaudited revised segment information presented below constitutes a reclassification and does not restate information previously reported in the Company's 2014 Form 10-K. This press release should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's 2014 Form 10-K.

Reclassified Select Segment Information

The following information includes segment bookings, segment revenues and segment operating income (loss). Segment bookings are defined as customer orders received that are expected to be converted into revenues during the subsequent twelve months. Segment operating income (loss) is defined as earnings before income taxes, interest expense and other expense or income, net. The following information represents the reclassified select segment information for the periods presented.

Year Year
Ended Three Months Ended Ended
June 30, September 30, December 31, March 31, June 30, June 30,
($000) 2013 2013 2013 2014 2014 2014
II-VI Laser Solutions:
Bookings $ 212,329 $ 51,592 $ 62,040 $ 67,242 $ 81,950 $ 262,824
Revenues 217,604 55,864 63,695 63,273 71,510 254,342
Operating income 53,963 8,917 3,444 4,046 8,050 24,457
Depreciation and amortization 8,554 2,710 4,754 4,238 3,316 15,018
Capital expenditures 6,536 2,036 3,449 2,966 3,346 11,797
II-VI Photonics:
Bookings 134,869 40,574 52,244 63,188 64,147 220,153
Revenues 141,319 42,017 54,921 58,321 61,234 216,493
Operating income (loss) 15,037 771 (197) 216 (903) (113)
Depreciation and amortization 17,181 4,580 5,071 4,580 5,892 20,123
Capital expenditures 8,849 2,511 2,939 976 1,933 8,359
II-VI Performance Products:
Bookings 173,953 50,328 53,652 57,060 47,240 208,280
Revenues 192,152 52,139 53,149 51,961 55,177 212,426
Operating income 2,491 3,783 6,321 4,481 7,557 22,142
Depreciation and amortization 15,057 4,546 4,572 4,374 4,465 17,957
Capital expenditures 9,820 2,026 1,328 2,536 3,174 9,064
Total:
Bookings 521,151 142,494 167,936 187,490 193,337 691,257
Revenues 551,075 150,020 171,765 173,555 187,921 683,261
Operating income 71,491 13,471 9,568 8,743 14,704 46,486
Depreciation and amortization 40,792 11,836 14,397 13,192 13,673 53,098
Capital expenditures 25,205 6,573 7,716 6,478 8,453 29,220
Year Year
Ended Three Months Ended Ended
June 30, September 30, December 31, March 31, June 30, June 30,
($000) 2012 2012 2012 2013 2013 2013
II-VI Laser Solutions:
Bookings $ 221,170 $ 50,923 $ 47,678 $ 53,644 $ 60,084 $ 212,329
Revenues 208,815 54,371 48,892 56,842 57,499 217,604
Operating income 51,044 12,839 11,766 15,247 14,111 53,963
Depreciation and amortization 8,562 2,093 2,195 2,067 2,199 8,554
Capital expenditures 8,302 1,231 2,008 891 2,406 6,536
II-VI Photonics:
Bookings 141,095 31,977 32,722 30,569 39,601 134,869
Revenues 133,904 38,088 33,677 32,052 37,502 141,319
Operating income 14,124 6,801 3,841 2,479 1,916 15,037
Depreciation and amortization 15,734 4,266 4,363 4,198 4,354 17,181
Capital expenditures 12,122 1,558 2,395 1,914 2,982 8,849
II-VI Performance Products:
Bookings 172,600 28,388 45,672 54,316 45,577 173,953
Revenues 173,684 35,539 42,538 55,046 59,029 192,152
Operating income (loss) 16,354 (1,182) (139) 443 3,369 2,491
Depreciation and amortization 10,227 2,680 3,570 4,460 4,347 15,057
Capital expenditures 22,373 3,123 2,829 1,481 2,387 9,820
Total:
Bookings 534,865 111,288 126,072 138,529 145,262 521,151
Revenues 516,403 127,998 125,107 143,940 154,030 551,075
Operating income 81,522 18,458 15,468 18,169 19,396 71,491
Depreciation and amortization 34,523 9,039 10,128 10,725 10,900 40,792
Capital expenditures 42,797 5,912 7,232 4,286 7,775 25,205
Reclassified Select Segment Footnote Information from Fiscal Year 2014 Form 10-K
II-VI II-VI
Laser II-VI Performance
Solutions Photonics Products Eliminations Total
($000)
For the year ended June 30, 2014:
Revenues $ 254,342 $ 216,493 $ 212,426 $ -- $ 683,261
Inter-segment revenues 9,825 9,533 12,000 (31,358) --
Operating income (loss) 24,457 (113) 22,142 -- 46,486
Interest expense -- -- -- -- (4,479)
Other income, net -- -- -- -- 3,634
Income taxes -- -- -- -- (7,325)
Earnings from discontinued operations -- -- -- -- 133
Net earnings -- -- -- -- 38,449
Depreciation and amortization 15,018 20,123 17,957 -- 53,098
Expenditures for property, plant and equipment 11,797 8,359 9,064 -- 29,220
II-VI II-VI
Laser II-VI Performance
Solutions Photonics Products Eliminations Total
($000)
For the year ended June 30, 2013:
Revenues $ 217,604 $ 141,319 $ 192,152 $ -- $ 551,075
Inter-segment revenues 5,671 3,950 9,458 (19,079) --
Operating income 53,963 15,037 2,491 -- 71,491
Interest expense -- -- -- -- (1,160)
Other income, net -- -- -- -- 7,155
Income taxes -- -- -- -- (18,766)
Loss from discontinued operations -- -- -- -- (6,789)
Net earnings -- -- -- -- 51,931
Depreciation and amortization 8,554 17,181 15,057 -- 40,792
Expenditures for property, plant and equipment 6,536 8,849 9,820 -- 25,205
II-VI II-VI
Laser II-VI Performance
Solutions Photonics Products Eliminations Total
($000)
For the year ended June 30, 2012:
Revenues $ 208,815 $ 133,904 $ 173,684 $ -- $ 516,403
Inter-segment revenues 5,884 4,569 8,444 (18,897) --
Operating income 51,044 14,124 16,354 -- 81,522
Interest expense -- -- -- -- (212)
Other income, net -- -- -- -- 7,168
Income taxes -- -- -- -- (17,760)
Loss from discontinued operations -- -- -- -- (9,443)
Net earnings -- -- -- -- 61,275
Depreciation and amortization 8,562 15,734 10,227 -- 34,523
Expenditures for property, plant and equipment 8,302 12,122 22,373 -- 42,797

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, 2014; (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.

About II-VI Incorporated

II-VI Incorporated, a global leader in engineered materials and opto-electronic components is a vertically integrated manufacturing company that develops innovative products for diversified applications in the industrial, optical communications, military, life sciences, semiconductor equipment, and consumer markets. Headquartered in Saxonburg, Pennsylvania, with research and development, manufacturing, sales, service, and distribution facilities worldwide, the Company produces a wide variety of application-specific photonic and electronic materials and components, and deploys them in various forms including integrated with advanced software to enable our customers.

CONTACT: II-VI Incorporated Mary Jane Raymond, Chief Financial Officer (724) 352-4455 MaryJane.Raymond@ii-vi.comSource:II-VI Incorporated