As I've said before, small tech companies like II-VI (NASDAQ:IIVI) can be a little kooky, and you're liable to fall victim to a few head fakes now and then if you pay too much attention to quarterly reports.

Back in the winter, things weren't looking so good for II-VI. Sales and bookings were up strongly, but high energy, selenium, and scrap costs were hurting the margins and income performance was weak. But I said when I wrote on that quarter that you shouldn't let one tough fiscal quarter overshadow the promise for laser and optical components.

Fast-forward to the present and things look quite a bit better. Third-quarter revenue was up just 11%, but II-VI's margins improved notably and earnings were up strongly. And, by the way, the stock has rebounded nicely from its stumble late last year and early this year and stands just under its 52-week high.

Looking at the individual businesses, it was three cases of good news and one that was not so good. Infrared, military infrared, and the semiconductor group all did better, with strong bookings and better earnings. Near-infrared didn't have a great quarter, but II-VI management seems confident that shipments and revenue should improve in the next quarter and the following fiscal year.

And there are also some macro trends helping the company. As we saw with Rofin-Sinar (NASDAQ:RSTI) and to a lesser extent Coherent (NASDAQ:COHR), there's respectable growth in the laser market despite Europe's economic sluggishness and the problems with the U.S. auto business. What's more, energy costs have eased a bit and selenium prices have been declining for most of this year.

Given the probability that Asia will continue to buy lasers and that the semiconductor and electronics industries are stronger today than a year ago, II-VI should be setting the stage for some more growth. Should you hop aboard this idea, though, keep in mind that the trip could be a little rocky every now and then.

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Fool contributor Stephen Simpson has no financial interest in any stocks mentioned (that means he's neither long nor short the shares).