×

II-VI Incorporated Changes Its Operating Segment Reporting Structure

PITTSBURGH, Oct. 3, 2012 (GLOBE NEWSWIRE) -- II-VI Incorporated (Nasdaq:IIVI) today announced that it has changed its reportable segments in accordance with how the Company's chief operating decision makers receive and review financial information. Effective July 1, 2012, the Company's VLOC business unit will now be included in the Military & Materials segment for financial reporting purposes. Prior to July 1, 2012, VLOC was included in the Company's Near-Infrared Optics operating segment. The Company has revised the consolidated segment information that was contained in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2012 ("2012 Form 10-K") filed with the Securities and Exchange Commission on August 28, 2012 to reflect the new reportable segment structure. This release includes the revised consolidated segment information for the 2012 Form 10-K with revised fiscal years 2012, 2011 and 2010, and select quarterly segment information.

The revised segment information constitutes a reclassification and has no impact on reported net income or earnings per share for any period. These changes do not restate information previously reported in the Consolidated Balance Sheets, Consolidated Statements of Earnings, Consolidated Statements of Comprehensive Income, Consolidated Statements of Shareholders' Equity or Consolidated Statements of Cash Flows for the Company for any period.

All information in the 2012 Form 10-K remains unchanged. This press release does not modify or update the disclosures therein in any way, nor does it reflect any subsequent information or events, other than as provided to reflect the change in the segments as described above. This press release should be read in conjunction with the 2012 Form 10-K.

Reclassified Segment Footnote Information from Fiscal Year 2012 Form 10-K

The following reclassified segment information includes segment earnings (defined as earnings before income taxes, interest expense and other expense or income, net) and represents the reclassified consolidated segment footnote for the fiscal year 2012 Form 10-K ($000).

Infrared Optics Near-Infrared Optics Military & Materials Advanced Products Group Eliminations Total
For the fiscal year ended June 30, 2012:
Revenues $ 201,611 $ 140,000 $ 118,463 $ 74,556 -- $ 534,630
Inter-segment revenues 3,174 2,135 7,589 4,295 (17,193) --
Segment earnings (loss) 51,095 14,060 (1,658) 8,442 -- 71,939
Interest expense -- -- -- -- -- (212)
Other income, net -- -- -- -- -- 7,168
Income taxes -- -- -- -- -- (17,620)
Net earnings -- -- -- -- -- 61,275
Depreciation and amortization 8,480 15,803 6,127 4,283 -- 34,693
Segment assets 220,550 268,619 112,485 104,832 -- 706,486
Expenditures for property, plant and equipment 8,072 12,249 12,026 10,493 -- 42,840
Equity investment -- -- -- 10,661 -- 10,661
Goodwill 9,612 48,496 12,326 10,314 -- 80,748
For the fiscal year ended June 30, 2011:
Revenues $ 180,827 $ 118,614 $ 124,615 $ 78,745 -- $ 502,801
Inter-segment revenues 3,282 1,304 7,090 5,015 (16,691) --
Segment earnings 46,187 23,523 15,845 13,220 -- 98,775
Interest expense -- -- -- -- -- (103)
Other income, net -- -- -- -- -- 3,090
Income taxes -- -- -- -- -- (18,744)
Net earnings -- -- -- -- -- 83,018
Depreciation and amortization 8,268 11,319 5,470 3,389 -- 28,446
Segment assets 264,052 171,354 118,914 92,882 -- 647,202
Expenditures for property, plant and equipment 9,065 13,988 8,221 9,585 -- 40,859
Equity investments -- -- -- 15,458 -- 15,458
Goodwill 10,038 31,584 12,326 10,314 -- 64,262
For the fiscal year ended June 30, 2010:
Revenues $ 135,063 $ 46,923 $ 107,250 $ 55,855 -- $ 345,091
Inter-segment revenues 2,021 -- 2,440 4,209 (8,670) --
Segment earnings 24,582 10,043 11,568 5,488 -- 51,681
Interest expense -- -- -- -- -- (87)
Other income, net -- -- -- -- -- (277)
Income taxes -- -- -- -- -- (12,582)
Net earnings -- -- -- -- -- 38,735
Depreciation and amortization 8,337 5,021 4,670 3,011 -- 21,039
Expenditures for property, plant and equipment 1,817 2,708 6,113 3,199 -- 13,837

Reclassified Select Segment Information

The following information includes segment bookings, segment revenues and segment earnings. Segment bookings are defined as customer orders received that are expected to be converted into revenues during the subsequent twelve months. Segment earnings are 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 ($000).

Infrared Optics Near-Infrared Optics Military & Materials Advanced Products Group Total
Bookings:
Fiscal years ended:
June 30, 2012 $ 206,050 $ 155,066 $ 106,307 $ 67,442 $ 534,865
June 30, 2011 193,758 118,441 123,218 84,821 520,238
June 30, 2010 139,386 59,376 125,314 63,519 387,595
Fiscal year 2012 quarters ended:
June 30, 2012 $ 52,067 $ 44,711 $ 21,877 $ 23,304 $ 141,959
March 31, 2012 59,112 48,575 26,553 11,536 145,776
December 31, 2011 43,773 29,955 31,527 11,628 116,883
September 30, 2011 51,098 31,825 26,350 20,974 130,247
Fiscal year 2011 quarters ended:
June 30, 2011 $ 52,915 $ 24,084 $ 31,928 $ 22,250 $ 131,177
March 31, 2011 52,535 36,793 34,261 19,294 142,883
December 31, 2010 47,006 29,591 35,915 21,616 134,128
September 30, 2010 41,302 27,973 21,114 21,661 112,050
Revenues:
Fiscal years ended:
June 30, 2012 $ 201,611 $ 140,001 $ 118,462 $ 74,556 $ 534,630
June 30, 2011 180,827 118,614 124,615 78,745 502,801
June 30, 2010 135,063 46,923 107,250 55,855 345,091
Fiscal year 2012 quarters ended:
June 30, 2012 $ 53,375 $ 39,858 $ 26,982 $ 16,695 $ 136,910
March 31, 2012 50,678 36,629 30,054 15,229 132,590
December 31, 2011 46,762 32,525 30,646 16,824 126,757
September 30, 2011 50,796 30,989 30,780 25,808 138,373
Fiscal year 2011 quarters ended:
June 30, 2011 $ 50,552 $ 28,478 $ 32,113 $ 20,640 $ 131,783
March 31, 2011 48,407 32,482 32,191 16,917 129,997
December 31, 2010 40,642 30,959 29,926 19,360 120,887
September 30, 2010 41,226 26,695 30,385 21,828 120,134
Segment Earnings (Loss):
Fiscal years ended:
June 30, 2012 $ 51,095 $ 14,060 $ (1,658) $ 8,442 $ 71,939
June 30, 2011 46,187 23,523 15,845 13,220 98,775
June 30, 2010 24,582 10,043 11,568 5,488 51,681
Fiscal year 2012 quarters ended:
June 30, 2012 $ 13,423 $ 5,506 $ (1,722) $ 485 $ 17,692
March 31, 2012 13,845 3,608 (958) 479 16,974
December 31, 2011 11,470 2,386 (1,088) 1,470 14,238
September 30, 2011 12,357 2,560 2,110 6,008 23,035
Fiscal year 2011 quarters ended:
June 30, 2011 $ 15,455 $ 3,327 $ 3,794 $ 3,180 $ 25,756
March 31, 2011 12,664 6,472 3,680 2,854 25,670
December 31, 2010 9,420 7,290 4,203 3,775 24,688
September 30, 2010 8,648 6,434 4,168 3,411 22,661

About II-VI Incorporated

II-VI Incorporated, a global leader in engineered materials and optoelectronic components, is a vertically-integrated manufacturing company that creates and markets products for diversified markets including industrial manufacturing, military and aerospace, 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, 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. Aegis Lightwave, 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, AOFR, Aegis also manufactures fused fiber components, including those required for fiber lasers for material processing applications, as well optical couplers used primarily in the telecommunication industry.

In the Company's military & materials business, Exotic Electro-Optics (EEO) manufactures infrared products for military applications, Pacific Rare Specialty Metals & Chemicals (PRM) produces and refines selenium and tellurium materials and 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; and the Worldwide Materials Group (WMG) 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 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, 2012; (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; and/or (vi) 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: II-VI Incorporated Craig A. Creaturo, Chief Financial Officer and Treasurer (724) 352-4455 ccreaturo@ii-vi.comSource:II-VI Incorporated