
January 21, 1997 
 
Jim Martinelli 
Treasurer & 
Chief Financial Officer 
(412) 352-4455 
 
 
 
 
II-VI INCORPORATED ANNOUNCES SECOND QUARTER RESULTS 
 
PITTSBURGH, PA., January 21, 1997--II-VI Incorporated  
(NASDAQ NMS: IIVI) today reported results for its second  
fiscal quarter ended December 31, 1996.  Net earnings for  
the period were $1,715,000 ($0.25 per share) on revenues  
of $12,190,000.  These results compare with net earnings  
of $834,000 ($0.14 per share) on revenues of $7,954,000  
in the second quarter of last fiscal year.  For the six  
months ended December 31, 1996, net earnings were  
$3,375,000 ($0.50 per share) on revenues of $24,300,000.   
This compares with net earnings of $1,640,000 ($0.28 per  
share) on revenues of $16,042,000 for the same period last  
fiscal year.    
 
Bookings for the quarter increased 31% to $13,894,000 from  
$10,642,000 for the same period last year. Bookings year-to- 
date increased 44% to $26,821,000 from $18,659,000 in last  
fiscal year.  Commercial bookings at the Company's VLOC  
operation accounted for almost two-thirds of the increase  
for the quarter, and domestic industrial orders of infrared  
optics and materials accounted for most of the remaining  
increase.  Approximately one-half of the year-to-date increase  
was attributable to VLOC commercial orders, one-third to  
increased orders for infrared optics and materials and the  
remaining increase was for Contract Research and Development  
Contracts. 
 
Manufacturing revenues for the quarter increased 49% to  
$11,515,000 from $7,718,000 for the same period last year.  
Manufacturing revenues year-to-date increased 47% to  
$23,107,000 from $15,675,000 for the same period last year.   
The quarter and year-to-date increases reflect increased  
shipments of VLOC products and infrared optics and materials  
to the domestic and international industrial market.  VLOC  
products account for slightly more than one-half of the  
increase for both the quarter and year-to-date.    
 
Manufacturing gross margin for the quarter was $5,251,000  
or 46% of net sales compared to $3,243,000 or 42% of net  
sales for the same period last year.  Manufacturing gross  
margin year-to-date was $10,495,000 or 45% of net sales  
compared to $6,644,000 or 42% of net sales in fiscal 1996.   
The quarter and year-to-date increases reflect the lower  
per unit operating cost associated with the higher production  
volume and improved manufacturing efficiencies offset  
slightly by the strengthening of the U.S. dollar against the  
Japanese yen.   
 
Selling, general and administrative expenses for the quarter  
were $2,951,000 or 24% of revenues compared to $2,152,000 or  
27% of revenues for the same period last year.  Selling,  
general and administrative expenses year-to-date were  
$5,981,000 or 25% of revenues compared to $4,283,000 or 27%  
of revenues in fiscal 1996.  The expense increase is  
attributable to increased expenses in the VLOC operation,  
higher compensation expense associated with the Company's  
worldwide profit-driven bonus programs and higher general and  
administrative expenses needed to support the Company's growth.  
 
Francis J. Kramer, president and chief operating officer  
said, "To meet increased customer demand for our products,  
we have made significant progress during the past year  
expanding our manufacturing capacity at every II-VI location.   
We plan to continue this expansion program for our current  
product lines and to develop new products and markets to  
achieve the Company growth targets." 
 
Headquartered in Saxonburg, Pennsylvania II-VI Incorporated  
designs, manufactures and markets optical and electro-optical  
components, devices and materials for precision use in  
infrared, near infrared, visible light and x-ray instruments  
and applications.  The Company's infrared products are used in  
high-power CO2 (carbon dioxide) lasers for industrial  
processing worldwide.  The Company's VLOC subsidiary  
manufactures near infrared and visible light products used in  
industrial, scientific and medical instruments and solid-state  
(such as YAG and YLF) lasers.  II-VI is also developing and  
marketing solid-state x-ray and gamma-ray products for the  
nuclear radiation detection industry through its eV PRODUCTS  
division. 
 
 
II-VI Incorporated and Subsidiaries 
Condensed Consolidated Statements of Operations (Unaudited) 
($000 except per share data) 
 
                                               Three Months Ended 
                                                   December 31, 
                                                 1996       1995 
Revenues 
 
Net sales                                      11,515      7,718 
Contract research and development                 675        236 
                                               12,190      7,954 
 
 
Costs, Expenses & Other Income 
 
Cost of goods sold                              6,264      4,475 
Contract research and development                 468        163 
Internal research and development                 260        138 
Selling, general and administrative expenses    2,951      2,152 
Interest and other (income) expense - net        (168)      (139) 
                                                9,775      6,789 
 
Earnings Before Income Taxes                    2,415      1,165 
 
Income Tax Expense                                700        331 
 
Net Earnings                                  $ 1,715     $  834 
 
Earnings Per Share                            $  0.25     $ 0.14 
 
 
Average Shares Outstanding                      6,800      6,155 
 
 
 
 
II-VI Incorporated and Subsidiaries 
Condensed Consolidated Statements of Operations (Unaudited) 
($000 except per share data) 
 
                                                Six Months Ended 
                                                   December 31, 
                                                 1996       1995 
Revenues 
 
Net sales                                      23,107     15,675 
Contract research and development               1,193        367 
                                               24,300     16,042 
 
 
Costs, Expenses & Other Income 
 
Cost of goods sold                             12,612      9,031 
Contract research and development                 863        264 
Internal research and development                 384        286 
Selling, general and administrative expenses    5,981      4,283 
Interest and other (income) expense - net        (293)      (123) 
                                               19,547     13,741 
 
Earnings Before Income Taxes                    4,753      2,301 
 
Income Tax Expense                              1,378        661 
 
Net Earnings                                  $ 3,375     $1,640 
 
Earnings Per Share                            $  0.50     $ 0.28 
 
 
Average Shares Outstanding                      6,761      5,834 
 
 
 
II-VI Incorporated and Subsidiaries 
Condensed Consolidated Balance Sheets (Unaudited) 
($000) 
 
                                         
                                           December 31,  June 30, 
Assets                                         1996        1996 
 
Current Assets 
  Cash and equivalents                      $   9,389   $  9,417 
  Accounts receivable                           8,533      8,712 
  Inventories                                   6,766      5,490 
  Other current assets                          1,115      1,036 
    Total Current Assets                       25,803     24,655 
 
Property, Plant & Equipment, net               17,163     15,085 
Other Assets                                    4,326      4,429 
                                            $  47,292   $ 44,169 
 
Liabilities and Shareholders' Equity 
 
Current Liabilities 
  Notes payable                             $     926   $  1,393 
  Accounts payable                              1,661      1,260 
  Other current liabilities                     4,081      5,315 
     Total Current Liabilities                  6,668      7,968 
 
Long-Term Debt--less current portion              715         45 
 
Deferred Income Taxes                           1,697      1,753 
 
      Shareholders' Equity                     38,212     34,403 
                                            $  47,292   $ 44,169 
 
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