 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 Companys 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 Companys 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 todays exchange rate and todays 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 Companys web site by visiting or via 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 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 Companys 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 managements 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 Companys Annual Report on Form 10-K for the fiscal year ended June 30, 2019 and the Companys 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 Companys ability to assimilate recently acquired businesses, and risks, costs and uncertainties associated with such acquisitions; vii the Companys ability to devise and execute strategies to respond to market conditions; andor 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 Companys management uses these measurements as an aid in monitoring the Companys on-going financial performance. 