Dr. Johnson: II-VI is a materials company, but we go well beyond that. We produce crystals that are useful in the optical, electro-optical and laser world. But beyond these crystals, we fabricate optical devices and components that are ready to drop into a laser system, a scientific instrument or possibly a military electro-optic system. So one could think of us as an optical, electro-optical parts manufacturer that's vertically integrated back to the very specific and high quality technical crystal materials that are required for these applications.
TWST: What does the marketplace look like today? How competitive
is it?
Dr. Johnson: It's a competitive and global marketplace. For
instance, we make materials that are used to manufacture optics
for both carbon dioxide (CO2) and yttrium aluminum garnet (YAG)
lasers and these are workhorse lasers in the material processing
industry worldwide for cutting, welding, drilling, heat treating
and marking of different kinds of materials. For example, in
doors for automobiles, the steel is cut out and welded together
using lasers. Many products today are marked using laser writing
on the product: food packages, beverage containers, and
electronic circuits for example. So there are a lot of different
applications out there and our customers are building the
machines and the instruments that are used to do these various
jobs in industry. Such lasers systems are being used now in 50
countries around the world. If you include both the CO2 and the
YAG laser, we are talking about a couple of hundred million
dollar market opportunity. So it's attractive to medium and
smaller companies that feel they have the capability to make the
optical and laser parts that are required.
Tickers included in this excerpt: IIVI
For more information call (212) 952 7433. The Wall Street Transcript does not endorse any of the comments made by interviewees, and does not make stock recommendations.