What happened

Shares of laser and optoelectronic component manufacturer II-VI (NASDAQ:IIVI) have gotten clobbered today, down by 12% as of 11:45 p.m. EDT, after the company reported fiscal third-quarter earnings this morning.

So what

Both revenue and bookings increased by 19%, with sales jumping to $245 million and bookings rising to $280.8 million. Net earnings were up 50% to $22.4 million, or $0.35 per share.

Dice with buy and sell

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II-VI said that the last several years of spending on research and development is starting to pay off by driving sales, while it continues to invest heavily in its laser solutions segment, believing that the "concentrated investment" will generate growth "in the billions of dollars over the next several years."

Now what

CEO Dr. Vincent D. Mattera Jr. acknowledged that there have been broader industrywide concerns regarding the optical communications market, but II-VI was able to come in at the high end of its guidance range while also posting a 200-basis-point improvement in gross margin. II-VI has a strong backlog and record order coverage across all three of its business segments, and is expecting a strong fiscal fourth quarter. Guidance calls for revenue in the range of $245 million to $252 million, with earnings per share of $0.33 to $0.37.

Evan Niu, CFA has no position in any stocks mentioned. The Motley Fool recommends II-VI. The Motley Fool has a disclosure policy.