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.
II-VI Incorporated Mary Jane Raymond, Chief Financial Officer (724) 352-4455
