* Achieves Record Quarterly Revenues of $746.2M and Backlog of $957M * Quarterly GAAP Operating Income of $67.4M and Non-GAAP Operating Income of $124.6M * Quarterly GAAP EPS of $0.53 and Non-GAAP EPS of $1.18 * Record Full Year Cash Flow from Operations of $297.3M * Record Full Year Free Cash1 Flow of $160.4M * The Company’s early July FY21 equity raise improved its net debt leverage ratio2 from 3.8 to 2.0PITTSBURGH, Aug. 13, 2020 (GLOBE NEWSWIRE) -- II-VI Incorporated (Nasdaq:IIVI) ("II-VI," “We” or the "Company") today reported results for its fiscal 2020 fourth quarter and fiscal year ended June 30, 2020.“In the fourth quarter, we remained and continue to remain vigilant and steadfast in ensuring the health and safety of our global workforce while striving to meet our customers' growing expectations despite the continuation and acceleration of COVID-19. We also made great progress against our key business initiatives. The power of our vertically integrated and geographically diverse footprint and business model, allowed our employees to deliver exceptional results, including record revenues and backlog,” said Dr. Vincent D. (Chuck) Mattera, Jr. “I am very pleased with the Finisar integration which continues ahead of expectations, as we accelerated our component strategy and are on track to exceed our first year synergy cost savings goals. Demand in the 3D-Sensing and communications market remains strong as the digital transformation continues, led by continued growth of 5G deployment and network infrastructure upgrades.”Dr. Mattera continued, “Our financial fundamentals are strong. We achieved record cash flow from operations, undertook a very successful equity raise and delivered free cash flow at about $150M above the acquisition business case. Our cash balance now stands at $493M, an increase of $105M from the previous quarter, and our post-equity raise leverage ratio2 is approximately 2.0, down from 3.8 at March 31, 2020. Our backlog of just under $1.0B provides us with significant momentum as we enter fiscal year 2021.”1 Free cash flow of $160.4M is defined as cash flow from operations of $297.3M less capital expenditures of $136.9M. 2 Reflects the July 2020 activity in which the Company used the net proceeds from the July 2020 equity raise to repay the remaining balance of $715 million under the Company’s Term B Loan Facility. The net debt leverage ratio is calculated in accordance with the terms of the Credit Agreement.Table 1  Financial Metrics            $ Millions, except per share amounts and %        (Unaudited) Three Months Ended  Year Ended   Jun 30, Mar 31, Jun 30,  Jun 30, Jun 30,   2020  2020  2019   2020 2019               Revenues $746.2  $627.0  $362.7   $2,380.0  $1,362.4               GAAP Gross Profit $302.2  $245.9  $138.7   $819.6  $521.3  Non-GAAP Gross Profit (2) $315.7  $235.5  $139.5   $912.4  $524.5               GAAP Operating Income (Loss) (1) $67.4  $69.0  $40.7   $39.5  $148.7  Non-GAAP Operating Income (2) $124.6  $81.6  $56.9   $324.8  $209.7               GAAP Net Earnings (Loss) $51.3  $5.9  $28.0   $(67.0) $107.5  Non-GAAP Net Earnings (2) $117.8  $39.2  $42.6   $258.6  $158.2               GAAP Diluted Earnings (Loss) Per Share $0.53  $0.06  $0.43   $(0.79) $1.63  Non-GAAP Diluted Earnings Per Share (2) $1.18  $0.42  $0.65   $2.85  $2.40                 Other Selected Financial Metrics            GAAP Gross margin 40.5% 39.2% 38.2%   34.4% 38.3% Non-GAAP gross margin (2) 42.3% 37.6% 38.5%   38.3% 38.5% GAAP Operating margin 9.0% 11.0% 11.2%   1.7% 10.9% Non-GAAP operating margin (2) 16.7% 13.0% 15.7%   13.6% 15.4% GAAP Return on sales 6.9% 0.9% 7.7%   -2.8% 7.9% Non-GAAP return on sales (2) 15.8% 6.3% 11.7%   10.9% 11.6% (1) GAAP Operating income (loss) is defined as earnings (loss) before income taxes, interest expense and other expense or income, net.(2) All non-GAAP amounts exclude certain adjustments for share-based compensation, acquired intangible amortization expense, certain one-time transaction expenses, fair value measurement period adjustments and restructuring and related items. See Table 4 for the Reconciliation of GAAP measures to non-GAAP measures.OutlookThe outlook for the first fiscal 2021 quarter ending September 30, 2020 is revenue of $700 million to $750 million and earnings per diluted share on a non-GAAP basis of $0.45 to $0.60. These are at today’s exchange rate and today’s estimated tax impact of 25%, both of which are subject to variability. The non-GAAP earnings per share include the pre-tax amounts of $20.6 million in amortization, $20.3 million in share-based compensation, $23.6 million in debt extinguishment costs related to our July 2020 equity raise, and $5.0 million in other costs, including costs to facilitate the integration. Non-GAAP adjustments are by their nature highly volatile and we have low visibility as to the range that may be incurred in the future.Conference Call & Webcast InformationThe Company will host a conference call at 9:00 a.m. Eastern Time on Thursday, August 13, 2020 to discuss these results. Individuals wishing to participate in the webcast can access the event at the Company’s web site by visiting www.ii-vi.com or via https://tinyurl.com/IIVIQ4FY20Earnings. If you wish to participate in the conference call, please dial +1 (877) 316-5288 for calls from the U.S. and +1 (734) 385-4977 for calls from outside the U.S. To join the conference call, please enter ID 1259279, then provide your name and company affiliation.The conference call will be recorded, and a replay will be available to interested parties who are unable to attend the live call. This service will be available until 11:59 p.m. Eastern Time on Friday, August 14, 2020, by dialing +1 (855) 859-2056 for calls from the U.S. and +1 (404) 537-3406 for calls from outside the U.S., and entering ID 1259279. About II-VI IncorporatedII-VI Incorporated, a global leader in engineered materials and optoelectronic components, is a vertically integrated manufacturing company that develops innovative products for diversified applications in communications, materials processing, aerospace & defense, semiconductor capital equipment, life sciences, consumer electronics, and automotive markets. Headquartered in Saxonburg, Pennsylvania, U.S.A., the Company has 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 support our customers. For more information, please visit us at www.ii-vi.com.Forward-looking StatementsThis press release contains forward-looking statements relating to future events and expectations that are based on certain assumptions and contingencies. The forward-looking statements are made pursuant to the safe harbor provisions of the U.S. 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 in this release 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, 2019 and the Company’s Quarterly Reports on Form 10-Q for the quarterly periods ended September 30, 2019, December 31, 2019 and March 31, 2020; (iii) the purchasing patterns of 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; (vii) the Company’s ability to devise and execute strategies to respond to market conditions; and/or (viii) the risks of business and economic disruption related to the currently ongoing COVID-19 outbreak and any other worldwide health epidemics and outbreaks that may arise.  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.Use of Non-GAAP Financial MeasuresThe Company has disclosed financial measurements in this press release that present financial information considered to be non-GAAP financial measures. These measurements are not a substitute for GAAP measurements, although the Company's management uses these measurements as an aid in monitoring the Company's on-going financial performance.

Thu, Aug. 13, 2020

* Ascatron AB - Kista, Sweden: Silicon carbide (SiC) epitaxial wafers and devices for power electronics * INNOViON Corporation - Colorado Springs, CO, U.S.: Ion implantation technology and services for semiconductor devices * Transactions expected to close by the end of calendar year 2020 * Acquisitions complement the technology licensed from General Electric (NYSE: GE) to manufacture SiC devices and modules for power electronicsPITTSBURGH, Aug. 12, 2020 (GLOBE NEWSWIRE) -- II-VI Incorporated (Nasdaq: IIVI), a leader in compound semiconductors, today announced that it has entered into a definitive agreement to acquire all the outstanding shares of Ascatron AB, a leader in silicon carbide (SiC) epitaxial wafers and devices for power electronics. II-VI also announced that it will acquire all the outstanding interests of the owners of the parent of INNOViON Corporation, a leader in ion implantation technology for silicon and compound semiconductor devices. Both transactions are scheduled to close by the end of calendar year 2020. Ascatron produces state-of-the-art SiC epitaxial wafers and devices that enable a wide range of high-voltage power electronics applications. Ascatron is led by a team of experts in wide-bandgap materials with more than 200 person-years in the SiC and semiconductor industry, bringing world-class competence to SiC development and production processes.INNOViON is the largest provider of ion implantation services in the world, with 30 implanters across a global footprint that support unique capabilities in semiconductor materials processing for up to 300 mm wafers. INNOViON’s processes enable doping in a wide range of semiconductors, including silicon carbide, gallium arsenide, indium phosphide, and silicon, to produce advanced devices.“The technology platforms of Ascatron and INNOViON are best in class and a perfect complement to our market-leading SiC substrates, our global large-scale wafer fabrication footprint, and the SiC device technology we recently licensed from GE,” said Dr. Vincent D. Mattera, Jr., Chief Executive Officer, II-VI Incorporated. “While we continue to serve our existing customers with our advanced materials and components, we will combine these capabilities to achieve one of the world’s most advanced, in-house, vertically integrated 150 mm SiC technology platforms. This builds upon our deep expertise in SiC substrates and adds advanced SiC epitaxy, device fabrication, and module design to meet the rapidly growing demand for SiC power electronics.”SiC represents a disruptive technology in power electronics with its differentiated advantages that are pivotal to electric vehicles, renewable energy, microgrids, and power supplies for data storage and communications. SiC achieves superior efficiency, higher energy density, and lower total system-level cost of ownership compared with state-of-the-art silicon-based devices. Power electronics based on SiC have demonstrated their potential to have a highly beneficial impact on the environment via significant reductions in carbon dioxide emissions and energy consumption.As a part of its vertical integration strategy, II-VI is leveraging its broad engineered materials and optoelectronic device technology platforms, as well as its manufacturing capabilities around the globe, to drive scale and innovation through the development of high-performance compound semiconductor devices. About II-VI IncorporatedII-VI Incorporated, a global leader in engineered materials and optoelectronic components, is a vertically integrated manufacturing company that develops innovative products for diversified applications in communications, materials processing, aerospace & defense, semiconductor capital equipment, life sciences, consumer electronics, and automotive markets. Headquartered in Saxonburg, Pennsylvania, the Company has 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 support our customers. For more information, please visit us at www.ii-vi.com.CONTACT:  Mark Lourie                     Vice President, Corporate Communications                     corporate.communications@ii-vi.com                     www.ii-vi.com/contact-us

Wed, Aug. 12, 2020