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II-VI shares fall on weak outlook
(Reuters) - Shares of II-VI Inc (IIVI.O) fell as much as 10 percent after the optical and electronic instruments maker cut its outlook for the fourth quarter and forecast disappointing results for the next fiscal year.
Falling prices and weak demand for tellurium - used to manufacture infrared optics, thermoelectric coolers and photovoltaic solar panels - hurt II-VI's metals and chemicals business, the company said in a statement Thursday evening.
It expects to write down about $1.7 million to $1.9 million of tellurium inventory in the current quarter.
II-VI acquired Philippines-based Pacific Rare Specialty Metals & Chemicals Inc in 2007. The business sells selenium and tellurium, by-products of refining materials such as copper and zinc, to manufacturers of steel, glass, animal feeds, fertilizers and other products.
The company said the current quarter was also hurt by softness in bookings and revenue at its compound semiconductor unit.
For the quarter ending June 30, II-VI said it expects to earn 23 to 25 cents per share on revenue of $135 million to $137 million, below its prior forecast of 27 to 31 cents per share on revenue of $139 million to $142 million.
For the year-ending June 2013, the company forecast earnings of between $1.14 per share and $1.21 per share on revenue of $582 million to $588 million.
Analysts on average had been expecting II-VI to earn $1.34 per share, excluding items, on revenue of $593 million, according to Thomson Reuters I/B/E/S.
Shares of the Saxonburg, Pennsylvania-based company fell 8 percent to $17.08 on the Nasdaq. The stock was one of the top percentage losers on the exchange on Friday morning.
(Reporting by Sagarika Jaisinghani in Bangalore; Editing by Sreejiraj Eluvangal)
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