January 6, 2010 (FinancialWire) — II-VI Inc. (NASDAQ: IIVI) has completed its previously announced acquisition of Photop Technologies, Inc. (Photop).

The initial consideration consisted of cash of $45.6 million and 1,146,000 shares of II-VI common stock. In addition, the purchase agreement provides up to $12.0 million of additional cash earn-out opportunities based upon Photop achieving certain agreed upon financial targets in calendar 2010 and 2011. The final purchase price will be subject to customary closing adjustments, including working capital adjustments.

Photop, headquartered in Fuzhou, China with over 3,000 employees, is a vertically-integrated manufacturer of engineered materials, optical components, microchip lasers for visible display applications and optical modules for use in fiber optic communication networks and other diverse consumer and commercial applications. Photop generated approximately $43 million in revenues for the nine months ended September 30, 2009.

The acquisition is expected to be neutral to net earnings during the fiscal year ending June 30, 2010. The positive operational results of Photop for the six months ending June 30, 2010 are expected to offset (a) the various acquisition related expenses which are required to be expensed as incurred under Accounting Standards Codification Topic 805: Business Combinations (FAS 141R) and (b) the dilutive effect of the shares of II-VI common stock that were used for the acquisition. The transaction is expected to be accretive in the fiscal year ending June 30, 2011.

During the quarter ended December 31, 2009, II-VI incurred approximately $1.0 million of transaction-related expenses, after-tax. For the fiscal year ending June 30, 2010, II-VI is updating its revenue guidance from a range of $264 million to $274 million to a range of $293 million to $305 million as a result of the Photop transaction. II-VI is maintaining its guidance for earnings per share from continuing operations to range from $0.85 to $0.95. II-VI plans to release its financial results for the second fiscal quarter ended December 31, 2009 on January 19, 2010, and will update its fiscal year ending June 30, 2010 guidance as appropriate.

Bob Dodds, president of Hong Kong-based DRP Capital, served as financial advisor to II-VI Inc..

Photop will be combined with II-VI’s VLOC Inc. subsidiary and Near-Infrared Optics business for financial reporting purposes. This combined group, along with the Compound Semiconductor Group, will be directed by Dr. Vincent D. (Chuck) Mattera, Jr., vice president of II-VI, who was promoted TODAY to executive vice president of II-VI.

Free annual reports and company filings for companies mentioned in the news are available through the Investrend Information Syndicate (at http://investrend.ar.wilink.com/?level=279). Recently issued reports and filings include Weatherford International Ltd. (NYSE: WFT), UQM Technologies, Inc. (AMEX: UQM), Panhandle Oil and Gas, Inc. (NYSE: PHX), Encore acquisition Company (NYSE: EAC), Altius Minerals Corp. (TSX: ALS), PKC Group Oyj (PLUS: PKC1V) and Standard Life Investments European Private Equity Trust PLC (LSE: SEP) (PLUS: SEP).

FinancialWire(tm), in cooperation with the Investrend Broadcast Syndicate, also provides complete, daily conference call and webcast schedules as a service to shareholders and investors via the FirstAlert(tm) Network’s “FirstAlert(tm) Daily” (http://www.financialwire.net/news-alerts/). Recently webcast company presentations, financial results & earnings calls now available include Rick’s Cabaret International, Inc. (NASDAQ: RICK) and Applied Signal Technology, Inc. (NASDAQ: APSG). Recordings are accessible via the search function at http://infoescrow.net/f/?u=http://www.investorcalendar.com by entering any company’s ticker symbol into the search field.

FinancialWire(tm) is a fully independent, proprietary news wire service. FinancialWire(tm) is not a press release service, and receives no compensation for its news, opinions or distributions. Further disclosure is at the FinancialWire(tm) website (http://www.financialwire.net/disclosures.php). Contact FinancialWire(tm) directly via inquiries@financialwire.net.

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.