II-VI Lowers Q2, 2009 Outlook

Citing "unprecedented changes in the economy" both in and outside the US, II-VI Inc. President and CEO Francis J. Kramer announced Tuesday that the company is cutting revenue projections for Q2 by about $10 million and for 2009 by as much as $60 million.

The company said it expects earnings per share for the second fiscal quarter ending Dec. 31, 2008, to range from 27 to 33 cents, down from estimates in October of 38 to 42 cents. Revenue is expected to fall from previous estimates of between $82 million and $86 million to between $71 million and $76 million.

II-VI also said it expects revenue for FY 2009 to fall. Previous estimates for the fiscal year, which ends June 30, 2009, were for revenue to be about $350 million; the company now says the total will likely be between $290 million and $310 million.

"While our performance for the month of October 2008 was in line with our previous guidance, during the month of November 2008 we saw a sizable curtailing of demand for our product offerings from the nonmilitary markets we serve," Kramer said. "The sudden reduction in demand is of a scope and magnitude that has not been seen in our company's history."

II-VI makes engineered materials and components for industrial manufacturing, military and aerospace, high-power electronics and telecommunications, and thermoelectric applications. Its infrared optics business makes optical and optoelectronic components for industrial laser and thermal imaging applications.

In light of the worldwide economic slowdown, Kramer said II-VI will accelerate its efforts to reduce operating costs and capital expenditures and improve productivity and the efficiency of its operations.

For more information, visit: www.ii-vi.com