An international company headquartered in Saxonburg reported Monday that it doubled its revenue in the second fiscal quarter that ended Dec. 31 2019.

But an outbreak of the coronavirus in China is expected to hurt the company's earnings for the third quarter.

“First, we are committed to protecting the health and safety of all of our employees while delivering for our customers,” II-VI CEO Chuck Mattera said during Monday's earnings call with investors about the company's second fiscal quarter. “We have been in daily communications with our China-based employees and the local governments where we operate to be sure we are fully knowledgeable of the changing landscape and fully compliant with the requirements.”

The manufacturing company, which develops products in the industrial, optical communication, aerospace and other industries, reported a revenue of $666.3 million for the quarter, up from $342.9 million for the same period in 2018.

Mattera noted that one-third of the company's Chinese workforce returned Monday after a prolonged Chinese New Year, and they are expecting full production by mid-March when all employees return. The Chinese New Year started Jan. 25, and most II-VI employees took off for the holiday. The workers were expected to return Jan. 31, but after the outbreak of the coronavirus, Chinese government authorities extended time off to Monday. The company's CFO, Mary Jane Raymond, noted on Monday's call that workplace absences were expected to affect II-VI's third-quarter revenue by around $50 million. They expect revenue to range between $550 million to $600 million for the third quarter.

“The effects are potentially broad reaching,” Raymond said. “Not only are many of our employees dealing with a longer Chinese Lunar New Year holiday, there are also potential effects on the overall supply chain. We expect to be moving back to full strength over the next several weeks.”

The international company has factories in six major cities across China, and as Chinese authorities continue to face challenges from the coronavirus, Mattera said the company has a backup plan.

“Regarding business continuity planning, I would like to remind everyone that we also have a major manufacturing footprint in Asia outside China,” Mattera said. “So, we are working closely with our strategic customers to shift some demand to our factories in Malaysia and Vietnam to mitigate any impact to their supply lines.”