Knobias Clip Report (01-21-20009) IIVI
Submitted By Knobias ClipReport
IIVI: CEO Comments on Q2 Results Outlook for FY09
By Fain Hughes, fhughes@knobias.com
II-VI, Inc. (IIVI) reported results for its second quarter ended December 31, 2008. Revenues from continuing operations for the quarter increased 3% to $74,278,000 from $72,334,000 in the second quarter of last fiscal year.
Earnings from continuing operations for the quarter were $8,339,000 or $0.28 per share-diluted. These results compare with earnings from continuing operations of $26,999,000 or $0.88 per share-diluted in the second quarter of last fiscal year which included a $15,913,000 or $0.52 per share-diluted after-tax gain on the sale of an equity investment.
Francis J. Kramer, President and CEO of II-VI, commented in a conference call today, “This was the most challenging quarter that we have faced in many years. We entered the quarter with a $121 million backlog, and we achieved our forecasted bookings in October. However, the order rate decreased rapidly in the latter half of the quarter in response to the worldwide economic problems. We did not expect the sudden change that we encountered in November, but we reacted quickly and appropriately. We reduced costs quickly and were able to deliver a quarter with a 20% EBITDA margin, despite a 15% decrease in sales versus Q1. We will continue to adjust our production capacity as orders dictate, and we will continue to take appropriate cost cutting measures.”
He continued, “The decline in our commercial business during the quarter resulted in fiscal year-to-date commercial bookings being down 25% and revenues down 10%. We expect that the decreased bookings will carry through the rest of the year.”
Mr. Kramer added, “Demand and revenues from our defense and space customers continues to be strong. We are projecting the defense business to continue to grow for the remainder of the year and offset the slowdown in the telecom sector. We also expect to see the expansion of our market share in Europe to have a positive impact on the second half of FY09.”
For the third fiscal quarter ending March 31, 2009, the Company currently forecasts revenues from continuing operations to range from $66 million to $70 million and earnings per share from continuing operations to range from $0.23 to $0.28. For the fiscal year ending June 30, 2009, the Company expects revenues from continuing operations to range from $295 million to $305 million and earnings per share from continuing operations to range from $1.30 to $1.40.
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