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Firm's Laser Products On Target With Needs; Crystals Powering II-VI; Industrial and overseas demand still on upswing for infrared, other lasers.(INTERNET & TECHNOLOGY)

Investor's Business Daily

| February 03, 2005 | COPYRIGHT 2005 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: MARILYN ALVA

II-VI makes complex materials taken from the second and sixth columns of the periodic table of elements - thus its name, pronounced "two six."

The company makes crystals to produce optical components for industrial lasers, special windows and domes for military planes and vehicles, radiation detectors and semiconductor substrates.

II-VI's business is mostly about laser power. The more lasers factories use to cut, weld and mark, the more II-VI optical components are needed to make them work.

The improving economy and uptick in manufacturing have meant more demand for high-powered industrial lasers worldwide -- and thus II-VI's enabling parts.

About 55% of its revenue for its fiscal second quarter ended Dec. 31 came from its infrared laser business. This unit also generates the highest profit margins of its businesses, which also include the near-infrared, military infrared and compound semiconductor units.

"Our OEM (original equipment manufacturer) customers are running pretty strong at the moment, and so there is strong, steady demand for carbon dioxide laser processing materials," said Carl Johnson, founder and chief executive.

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