II-VI Cuts Q3, FY14 Outlook - Quick Facts

(RTTNews) - II-VI Inc. (IIVI) said that it lowered its guidance for its third fiscal quarter ending March 31, 2014 and the fiscal year ending June 30, 2014.

The company now currently expects that earnings per share from continuing operations for the third fiscal quarter ending March 31, 2014 will range from $0.10 to $0.13, which is below the Company's prior guidance of $0.15 to $0.18.

For the third quarter the company now expects revenues from continuing operations to range from $165 million to $170 million, which is below the Company's prior guidance of $175 million to $180 million.

Analysts polled by Thomson Reuters expect the company to report earnings of $0.17 per share and revenues of $177.69 million for the third-quarter. Analysts' estimates typically exclude special items.

The company lowered its earnings per share from continuing operations outlook for the fiscal year ending June 30, 2014 to a range of $0.55 - $0.60, from the prior estimate of $0.67 - $0.74 per share.

For the fiscal year, the company currently expects revenues from continuing operations to range from $670 million to $685 million, which is below the Company's prior guidance of $700 million to $710 million.

Street currently is looking for fiscal year 2014 earnings of $0.76 per share on annual revenues of $699.83 million.

For its third fiscal quarter ending March 31, 2014, the company currently expects to record one-time restructuring and other charges that will reduce earnings per share by approximately $0.03. These charges relate to cost reductions at its newly acquired businesses, Laser Enterprise and Network Solutions in the Active Optical Products segment and at its VLOC subsidiary in the Military & Materials segment.

In addition, at its HIGHYAG subsidiary in the Infrared Optics segment, shipment delays to customers following HIGHYAG's recent relocation to a new manufacturing facility are also currently expected to have a negative impact on revenues and earnings per share. Finally, while the Company expects positive revenues and earnings per share improvements from its operating segments in the fourth quarter compared to the third quarter of the fiscal year ending June 30, 2014, these growth rate expectations have been tempered by a combination of operational and market circumstances.

Francis Kramer, President and Chief Executive Officer said, "Since our previous guidance we decided to make challenging actions based on necessary decisions to reduce the operating cost structure of our Laser Enterprise and Network Solutions businesses. We believe these actions will streamline their operating platforms and enable them to increase long-term profitability. While customer demand at our HIGHYAG subsidiary remains strong, manufacturing relocation challenges are temporarily slowing production and order fulfillment. We expect these short-term issues to be resolved soon so that the final quarter of fiscal year 2014 will show an improvement over current-period results."

The company said it remain optimistic that positive operating momentum will continue to build as it enters fiscal year 2015.