II-VI to sell eV Products division
April 7, 2008, Pittsburgh, PA--Laser optics manufacturer II-VI Incorporated has retained Roth Capital Partners to sell its x-ray and gamma-ray radiation sensor division, eV PRODUCTS.
April 7, 2008, Pittsburgh, PA--Laser optics manufacturer II-VI Incorporated has retained Roth Capital Partners to sell its x-ray and gamma-ray radiation sensor division, eV PRODUCTS. The company believes that the sale of eV PRODUCTS will enable II-VI to concentrate on its core strengths and to focus its efforts on integrating recently acquired businesses.
For the nine months ended March 31, 2008 and the fiscal year ended June 30, 2007, eV PRODUCTS recorded revenues of approximately $5.1 million and $8.5 million, respectively.
"This decision comes after careful and deliberate evaluation of our long-term strategy for creating sustained shareholder value," said Francis J. Kramer, president and CEO of II-VI. "II-VI has made significant investments in eV PRODUCTS during the past 15 years that have enabled eV to become the industry leader in Cadmium Zinc Telluride radiation detection systems. We believe the time is right for eV PRODUCTS to be owned by a company that can achieve significant competitive advantages by maximizing the value of eV's differentiated capabilities in medical and homeland security imaging, and in industrial, scientific and space applications."
The company expects eV PRODUCTS to be classified as a discontinued operation and excluded from II-VI operating results effective in the third fiscal quarter ended March 31, 2008. In the future, the Company's outlook will exclude eV PRODUCTS. The Company's previous revenue guidance for the third fiscal quarter had forecast revenues to range from $81 million to $84 million. That guidance anticipated that eV PRODUCTS would contribute approximately $2 million in revenues for the quarter. The revenue guidance without the contributions from eV PRODUCTS were for revenues to range from $79 million to $82 million.
II-VI produces numerous crystalline compounds including zinc selenide for infrared laser optics, cadmium zinc telluride for gamma radiation detectors, silicon carbide for high-power electronic and microwave applications, and bismuth telluride for thermoelectric coolers.