Materion Barr Precision Optics & Thin Film Coatings announced the current construction of a 3,000-square-foot class 1000 clean room outfitted with the market's latest infrared coating chambers and 3D patterning equipment. The work cell will significantly enhance Materion's capability to manufacture low-defect coatings in high volume for the infrared wafer level, defense and consumer electronics markets. The Wafer Level Coating Cell, located at Materion's facility in Westford, Massachusetts, is uniquely designed to be self-contained with a semiconductor manufacturing layout to handle 200mm wafers. The multi-million dollar investment will assist in decreasing the cost of uncooled micro bolometer detectors and ultimately facilitate major growth throughout the commercial infrared camera industry. The new Wafer Level Coating Cell meets current market demand requirements as well as being in the forefront of future market needs. It also enhances competencies across many other technologies in which Materion has competitive differentiation, such as gesture control filters, arrays, gas sensing filters, and others. Completion of the work cell is expected to finish in the third quarter of 2013 and will include a 3D photolithography deposition tool, semiconductor wet etch and alignment processing tools, semi-automated inspection tools, and several custom-designed high-volume 200mm coating deposition chambers. The long-range plan foresees a total of 20,000 to 40,000 wafers per year when fully built out. Initial work will be composed of multiple volume production lines along with current projects aimed at the defense, commercial infrared and consumer electronics markets. The company will continue to refine processes and operations during the following year to maximize yields, optimize processes and ramp-up to full capacity. In addition, the company is continuing to invest in its coating technology for the next generation micro-bolometer devices (less than 12 micron) and plans to unveil this new technology in 2014.

Materion Corporation announced that its Board of Directors declared a second quarter 2013 dividend of $0.08 per share of common stock, an increase of $0.005 per share, or approximately 7%. The dividend is payable on June 4, 2013 to shareholders of record at the close of business on May 17, 2013. On an annualized basis, the amount of the dividend is $0.32 per share and equates to a yield of approximately 1.2% based on the Materion common stock price at the close of trading on April 30, 2013. The dividend represents a quarterly cash payout of approximately $1.7 million, or $6.7 million on an annualized basis. Subject to a continuing strong capital position and a determination that cash dividends continue to be in the best interest of shareholders, Materion intends to pay a quarterly dividend on an ongoing basis.

Materion Corporation reported unaudited consolidated earnings results for the first quarter ended March 30, 2013. For the quarter, the company’s sales were $299.2 million, down $54.4 million, or approximately 15%, compared to sales of $353.6 million for the first quarter of 2012. Net income was $6.8 million, or $0.33 per share, an improvement of approximately 11%, compared to net income of $6.1 million, or $0.30 per share, for the first quarter of the prior year. The net income improvement on the lower value-added sales was due to higher value-added gross margin percentages and a lower effective tax rate. Operating profit was $9.5 million against $9.9 million for the same period a year ago. Income before income taxes was $8.7 million against $9.2 million for the same period a year ago. Net cash used in operating activities was $4.8 million against $23.0 million for the same period a year ago. Payments for purchase of property, plant and equipment was $5.8 million against $9.3 million for the same period a year ago. Payments for mine development were $3.9 million against $0.159 million for the same period a year ago. The company is confirming its previously announced earnings range for the full-year 2013 of $1.75 to $2.00 per share. The company expects the tax rate for the year of between 27% and 30%, and expect cash flow to be used to drive debt down by as much as $45 million to $55 million from first quarter levels leading to a debt total debt plus ratio in the low teens. EBITDA for the year to be in the range of $92 million to $102 million and interest expense to be approximately $3 million. Depreciation and amortization to be in the range of $38 million to $43 million and capital spending to be at or slightly below depreciation levels.