II-VI 2Q net income falls 8 pct on sluggish demand

II-VI posts 8 pct drop in 2nd-qtr net income, as demand weakens toward end of quarter

Associated Press

SAXONBURG, Pa. (AP) -- Laser and optics manufacturer II-VI Inc. said Tuesday its fiscal second-quarter net income fell 8 percent, blaming weak demand for its products in the last few weeks of the quarter.

For the quarter ended Dec. 31, II-VI earned $12.2 million, or 19 cents per share, down from $13.3 million, or 21 cents per share, in the prior-year period.

Revenue edged down less than 1 percent to $125.9 million from $126.8 million, including a 3 percent gain in domestic revenue to $51.5 million and a 3 percent drop in international revenue to $74.4 million.

Analysts, on average, expected a profit of 21 cents per share on $138.1 million in revenue, according to FactSet.

The company said that revenue from recent acquisitions helped offset a drop in customer demand toward the end of the quarter.

II-VI added that its Pacific Rare Specialty Metals & Chemicals business continues to adjust to lower index pricing and lower demand for certain materials, while experiencing start-up challenges with its new product line.

Meanwhile, the company's advanced products group was helped by revenue from a recent acquisition, but those gains were offset by acquisition-related costs and lower demand for commercial products at another business.

II-VI projected a fiscal third-quarter profit of 24 cents to 28 cents per share on $145 million to $150 million in revenue, while analysts expect a profit of 27 cents per share on $156.9 million in revenue.

For the full fiscal year, the company said it expects to earn between 91 cents to 99 cents per share on $560 million to $570 million, while analysts expect earnings of $1.01 per share on $594.4 million in revenue.

II-VI shares closed Friday at $19.67, and have traded between $15.32 and $24.63 in the past 52 weeks.

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