II-VI, Inc. (IIVI)’s Fiscal Year 2015 Second Quarter Earnings Conference Call Transcript

Mary Jane Raymond – Chief Financial Officer
Yes.
Avinash Kant- D.A. Davidson & Company
Okay. And then, maybe, less than a penny from the currency?
Mary Jane Raymond – Chief Financial Officer
Right.

Avinash Kant- D.A. Davidson & Company
Okay.
Mary Jane Raymond- Chief Financial Officer
Again a lot of our revenue actually, a lot of the actual product content and the revenue was pricing dollar. So we don’t tend to have large swings in the currency, generally speaking.
Avinash Kant- D.A. Davidson & Company
Okay. One final question, so you talked about the taxes in the current quarter, we understand that benefited from the R&D tax credit. Now, going forward, you’re talking about 14% to 16%. Would you have, kind of, higher tax rate in the beginning and then in the fiscal year-end, you have or December quarter, you have like lower tax rate, is that how we should think of, or it will be continuing?
Mary Jane Raymond – Chief Financial Officer
Well, so are you talking about the four quarters of the fiscal year, how you should think about the pattern across four quarters in the fiscal year?
Avinash Kant- D.A. Davidson & Company
Yes, yes, exactly, exactly.
Mary Jane Raymond – Chief Financial Officer
Yes, okay. So this year it’s probably a little bit indicative. So this first quarter was a little bit higher, because we did take the tax effect of the pay trading some cash. But generally speaking, if, for example, we see the same sort of pattern on the R&D tax credit, where it’s not formerly extended until the end of year, then yes, we do not have that to book in the first quarter of the year.So if that sort of renewal pattern continues, this sort of a pattern is probably what you’ll say that the first quarter is somewhere probably more onan operating basis, call it, 20% to 22% and then might pass down over the rest of the year, which is a little bit the pattern we saw last year.
Avinash Kant- D.A. Davidson & Company
So your guidance assumes that you will have R&D tax credit by the end of the year, again?
Mary Jane Raymond- Chief Financial Officer
The guidance that we had for the second quarter that was set for the second quarter did not assume the R&D tax credit.
Avinash Kant- D.A. Davidson & Company
Okay. But the 14% to 16% forward guidance?
Mary Jane Raymond- Chief Financial Officer
Oh, certainly, well, it’s in there, we have it.
Avinash Kant – D.A. Davidson & Company

Okay, okay, good, good. Thank you so much.