10/16/2011 current price: $21.14 http://www.ii-vi.com/ Sep 22, 2011: 50 shares of IIVI @ $17.16 a share for a total of $865.00. Sep 22, 2011: 20 shares of CTSH @ $60.75 a share for a total of $1222. VL = Precision Instruments M* = Scientific & Technical Instruments - Technology SP = Peer Group: Electrical Components Sub Industry: Electrical components & Equipment GICS Sector: Industrials ************************************************************** COMPANY 2011 4QTR/ANNUAL REPORT RELEASE: 8/2011 The Company consists of four reportable segments: (i) Infrared Optics; (ii) Near Infrared Optics; (iii) Military and Materials; and (iv) the Compound Semiconductor Group. Our U.S. production operations are located in Pennsylvania, Florida, California, New Jersey, Texas and Mississippi and our non-U.S. production operations are based in Singapore, China, Vietnam, the Philippines and Germany. In addition to sales offices at most of our manufacturing sites, we have sales and marketing subsidiaries in Japan, Germany, China, Switzerland, Belgium, the United Kingdom (“U.K.”) and Italy. Approximately 59% of our revenues in the fiscal year ended June 30, 2011 were from product sales to customers outside of the U.S. SEGMENTED EARNING REPORT: BOOKINGS: TOTAL: $520,238 Military/Materials: $92,026 18% REVENUES: TOTAL: $502,801 Military/Materials: $83,426 16% SEGMENTED EARNINGS: $98,775 Military/Materials: $15,225 15% ************************************************************** Valueline 8/26/2011 - next: 11/25/2011 Precision instruments industry: 50 of 98 3-5yr prospects appear bright. Foreign orders growing faster than domestic but both show signs of steady increases. Expect to see consumer spending continue slow growth. Along with competitive pressures should see product demand increase in this industry with consequent sales and earnings increases. VL Ind Stats: VL Co Stats: Op Mrgn 2010: 16.1% 2014-16: 16% 20.2% 22.5% Net Profit Mrgn: 8% 8.5% 16.4% 16% ROTC: 8.7% 10% 15.5% 16% ROE: 10.5% 11.5% 15.8% 16% Avg PE: 20 16.5 17 17 Div Yield: .3% .8% 0 0 Morningstar Industry Stats - MidMichigan Chap 8/24/2011 Avg 5Yr PTI (%) 10.3 IIVI SSG: 19.7 Avg 5Yr ROE (%) 11.2 15.9 Avg Debt / Equity (%) 32 2.4% PE / Proj EPS Gr 1.3 1.2 Hist 10Yr Rev Gr (%) 11.9 16.5% Hist 10Yr EPS Gr (%) 4.1 25% ************************************************************** VL Company rpt: RICK MALONE - COILED SPRING PE: ttm 15.1 median 22 price projection: 2014-2016: 30-45 | 12-24% Develops, manufactures and markets hi-tech materials - 5000+customers - wide variety of commercial and defense applications. Plants in U.S., Singapore, China, Germany, and Vietnam. R & D 3.4%revenue. Foreign sales=50% of rev. Offs / Dirs= 18% of shares Military share of revenue: 15-18% is optimistic - probably somewhat smaller as these figures are for segmented breakouts . . . Debt to Cap 1% - - - Interest coverage 25X EARNINGS ESTIMATES THRU '14-'16: SALES: 11.5% EPS: 17.5% CURRENT RATIO: 4.3 Plants in U.S., Singapore, China, Germany, and Vietnam. Company-funded R&D: 3.4% of 2010 sales Company’s Financial Strength B+ Stock’s Price Stability 45 Price Growth Persistence 100 Earnings Predictability 55 ************************************************************** Company Presentation: 7/5/2011: EPS Est for FY2012(6/30/2012)from $1.40 to $1.48 to $1.43 to $1.52. Aegis Transaction utilized $15 million of borrowing capacity @ 0.815% Interest rate. *************************************************************** S & P - 10/15/2011 S&P Quality Ranking: B Standard & Poor's Fair Value Rank : 4- FAIR VALUE: $21.70 INVESTIBILITY: 71% RELATIVE STRENGTH: Strong *************************************************************** DOW THEORY FORECASTS: II-VI INC (IIVI) 10/17/2011 Overall: 89 (89 means stock scores better than about 89% of the nearly 5,000 companies in Quadrix) Momentum: 65 (recent operating results) Value: 60 (price/earnings and other valuation ratios) Quality: 95 (long-term growth record and returns on assets, equity, and investment) Financial Strength: 91 (debt levels, interest coverage, and profit margins) Earnings Estimates: 55 (trends in analyst estimates) Performance: 54 (stock returns) Volume Metrics: 84 (trading-volume trends) 12-Factor Sector: 59 (a dozen scores that work particularly well within a given sector) Reranked Overall: 77 (same categories used to derive the traditional Overall score, but reweighted to favor those that work best in a sector) Industry Group: Electrical Components & Equip. *************************************************************** MSN StockScouter: 6 II-VI Inc, a mid-cap growth company in the capital goods sector, is expected to outperform the market over the next six months with above average risk. QUICK SUMMARY Pro The ratio of IIVI's price-to-earnings multiple to its five-year growth rate is slightly below the average of all stocks in the StockScouter universe. Positive Earnings growth in the past year has accelerated rapidly compared to earnings growth in the past three years. Positive Con The most recent quarterly earnings report was slightly lower than analysts’ consensus forecast. Neutral/Negative The StockScouter measure of relative price change and consistency is low. Negative FUNDAMENTAL Grade: C The most recent quarterly earnings report was slightly lower than analysts’ consensus forecast. Neutral/Negative Earnings growth in the past year has accelerated rapidly compared to earnings growth in the past three years. Positive Earnings estimate revision information is unavailable or inconsistent. OWNERSHIP Grade: B Two or more executives, directors or major shareholders purchased a small number of shares recently. Positive Shares are under heavy accumulation by financial institutions. Positive for large companies like IIVI VALUATION Grade: B The price-to-earnings multiple is close to the average for all stocks in the StockScouter universe. Neutral The price-to-sales multiple is slightly higher than the average for all stocks in the StockScouter universe. Positive/Neutral for a medium- to large-sized company like IIVI The ratio of IIVI's price-to-earnings multiple to its five-year growth rate is slightly below the average of all stocks in the StockScouter universe. Positive TECHNICAL Grade: C The StockScouter measure of relative price change and consistency is low. Negative Previous day's closing price for IIVI was significantly above its 50-day moving average. Very positive StockScouter data provided by Gradient Analytics