| MIDDLEFIELD, CT, Apr 30, 2009 (MARKET WIRE via COMTEX) -- Zygo Corporation (NASDAQ: ZIGO) today announced net sales decreased
48% to $20.0 million for the third quarter of fiscal 2009 as compared
with $38.5 million for the third quarter of fiscal 2008. The net loss
for the third quarter of fiscal 2009 was $15.1 million, or $0.90 per
diluted share, as compared with break-even net earnings in the third
quarter of fiscal 2008.
The net loss for the third quarter of fiscal 2009 includes $12.4
million of pre-tax charges consisting of:
-- $5.4 million of a merger termination fee and $0.7 million of other
related costs
-- $3.3 million of inventory valuation write-downs relating to reduced
demand in the semiconductor, display, and vision markets
-- $2.1 million of impairment charges on certain intangible assets
-- $0.9 million related to severance costs associated with reductions in
the work force during the quarter.
For the first nine months of fiscal 2009, the Company recorded net
sales of $91.9 million and a net loss of $18.6 million, or a loss of
$1.11 per diluted share, as compared with net sales of $110.5 million
and net earnings of $0.2 million, or $0.01 per diluted share, for the
first nine months of fiscal 2008.
Orders for the third quarter of fiscal 2009 were $15.6 million as
compared with orders of $39.1 million in the third quarter of fiscal
2008. Orders for the Optical Systems Division accounted for 56% of
the orders received, with the Metrology Solutions Division
contributing the remaining 44%. The Optical Systems Division
continued to add to its life science customers with an order for a
design for manufacturing contract from a leading biomedical company.
Metrology Solutions Division orders of $6.9 million were negatively
impacted by the continued decline in the semiconductor and display
markets, including $2.1 million of de-bookings primarily related to
display orders. The display de-bookings were the result of customer
push-outs with an as yet to be determined delivery date.
Bruce Robinson, ZYGO's Chairman and CEO, commented, "Despite the
market conditions, we were pleased to receive two follow-on orders for
our UniFire™ 7900 metrology system for high volume manufacturing
process control. These orders for metrology in semiconductor and data
storage manufacturing processes validate our technology in these
markets. To increase market penetration of our technology, we are now
discussing partnership opportunities with established semiconductor
equipment manufacturers to combine the strength of our core
semiconductor technology with a partner's strength in the system
automation, sales, and service of high volume manufacturing
equipment."
Mr. Robinson continued, "Sales and orders continue to be impacted by
the reduction in capital spending in the semiconductor market and the
general global economic downturn across nearly all of our markets. As
a meaningful economic recovery is not underway, we continue to
execute on the cost reduction plan previously outlined, which
included work force reductions, unpaid furloughs, salary adjustments,
and suspension of the 401-k match. This has resulted in annualized
savings of $9.6 million in manufacturing overhead and general
operating expenses since the start of our third fiscal quarter.
Pending a successful conclusion of ongoing discussions with
semiconductor equipment manufacturers, we will achieve another $4.0 -
$5.0 million of annualized cost savings."
Note: ZYGO's teleconference to discuss the results of the third
quarter of fiscal 2009 will be held at 6 PM Eastern Time on April 30,
2009 and can be accessed by dialing 800-917-9985. This call is web
cast live on ZYGO's web site at www.zygo.com. The call may also be
accessed for 30 days following the teleconference.
All statements other than statements of historical fact included in
this news release regarding financial performance, condition and
operations, and the business strategy, plans, anticipated sales,
orders, market acceptance, growth rates, market opportunities, and
objectives of management of the Company for future operations are
forward-looking statements. Forward-looking statements are intended
to provide management's current expectations or plans for the future
operating and financial performance of the Company based upon
information currently available and assumptions currently believed to
be valid. Forward-looking statements can be identified by the use of
words such as "anticipate," "believe," "estimate," "expect,"
"intend," "plans," "strategy," "project," and other words of similar
meaning in connection with a discussion of future operating or
financial performance. Actual results could differ materially from
those contemplated by the forward-looking statements as a result of
certain factors. Among the important factors that could cause actual
events to differ materially from those in the forward-looking
statements are fluctuations in capital spending of our customers;
fluctuations in net sales to our major customer; manufacturing and
supplier risks; risks of order cancellations, push-outs and
de-bookings; dependence on timing and market acceptance of new
product development; rapid technological and market change; risks in
international operations; dependence on proprietary technology and
key personnel; length of the sales cycle; environmental regulations;
investment portfolio returns; fluctuations in our stock price; and
the risk that anticipated growth opportunities may be smaller than
anticipated or may not be realized. Zygo Corporation undertakes no
obligation to publicly update or revise forward-looking statements to
reflect events or circumstances after the date of this news release.
Further information on potential factors that could affect Zygo
Corporation's business is described in our reports on file with the
Securities and Exchange Commission, including our Form 10-K for the
fiscal year ended June 30, 2008, as amended by our Form 10-K/A filed
with the Securities and Exchange Commission on October 27, 2008.
Zygo Corporation and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
(Thousands, except per share amounts)
Three Months Ended Nine Months Ended
March 31, March 31,
-------------------- --------------------
2009 2008 2009 2008
--------- --------- --------- ---------
Net sales $ 20,031 $ 38,456 $ 91,873 $ 110,539
Cost of goods sold 16,875 22,907 59,650 67,292
--------- --------- --------- ---------
Gross profit 3,156 15,549 32,223 43,247
--------- --------- --------- ---------
Selling, general, and
administrative expenses 15,959 9,328 37,927 24,577
Research, development, and
engineering expenses 7,008 6,248 18,419 17,353
Provision for doubtful accounts
and notes 15 (37) 1,014 1,523
--------- --------- --------- ---------
Operating profit (loss) (19,826) 10 (25,137) (206)
--------- --------- --------- ---------
Other income (expense)
Interest income 140 517 800 1,998
Miscellaneous income
(expense) (220) (394) 104 82
--------- --------- --------- ---------
Total other income
(expense) (80) 123 904 2,080
--------- --------- --------- ---------
Earnings (loss) before
income taxes and minority
interest (19,906) 133 (24,233) 1,874
Income tax (expense) benefit 4,908 (15) 6,345 (642)
Minority interest (103) (167) (751) (1,046)
--------- --------- --------- ---------
Net earnings (loss) $ (15,101) $ (49) $ (18,639) $ 186
========= ========= ========= =========
Basic - Earnings (loss) per
share $ (0.90) $ (0.00) $ (1.11) $ 0.01
========= ========= ========= =========
Diluted - Earnings (loss) per
share $ (0.90) $ (0.00) $ (1.11) $ 0.01
========= ========= ========= =========
Weighted average shares
outstanding:
Basic Shares 16,872 16,751 16,826 17,482
========= ========= ========= =========
Diluted Shares 16,872 16,751 16,826 17,819
========= ========= ========= =========
Zygo Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
March 31, June 30,
(Thousands of dollars) 2009 2008
------------ ------------
Assets
Current assets:
Cash and cash equivalents $ 35,726 $ 26,421
Marketable securities 6,975 17,639
Receivables, net 20,278 31,036
Inventories 38,490 37,542
Prepaid expenses 1,760 2,230
Income tax receivable 836 241
Deferred income taxes 8,845 12,143
------------ ------------
Total current assets 112,910 127,252
Marketable securities 365 6,963
Property, plant, and equipment, net 34,724 36,371
Deferred income taxes 19,975 8,904
Intangible assets, net 7,326 9,522
Other assets 1,013 996
------------ ------------
Total assets $ 176,313 $ 190,008
============ ============
Liabilities and Stockholders' Equity
Current liabilities:
Payables $ 6,119 $ 7,955
Accrued expenses 21,397 14,414
Deferred income taxes 226 32
------------ ------------
Total current liabilities 27,742 22,401
Other long-term liabilities 2,746 2,817
Minority interest 1,294 1,844
Stockholders' equity 144,531 162,946
------------ ------------
Total liabilities and stockholders' equity $ 176,313 $ 190,008
============ ============
For Further Information Call:
Walter A. Shephard
Vice President Finance, CFO, and Treasurer
Voice: 860-704-3955
Email Contact
SOURCE: Zygo Corporation
http://www2.marketwire.com/mw/emailprcntct?id=0D8640633C061B07
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