| Revenues Increase 22% From First Quarter of Fiscal 2010; Bookings Up 26% From First QuarterMIDDLEFIELD, CT, Feb 04, 2010 (MARKETWIRE via COMTEX) -- Zygo Corporation (NASDAQ: ZIGO) today announced revenues of $26.1
million for the second quarter of fiscal 2010, which ended on
December 31, 2009, an increase of 22% compared with revenues of $21.3
million in the first quarter of fiscal 2010, reflecting continued
recovery in the Company's core optical and metrology markets. The
Company reported revenues of $33.4 million in the second quarter of
fiscal 2009.
Bookings for the second quarter of fiscal 2010 were $28.6 million,
increases of 26% from bookings of $22.7 million in the first quarter
of fiscal 2010 and 27% from bookings of $22.6 million in the second
quarter of fiscal 2009. Bookings for the Metrology Solutions
division accounted for 58% of the bookings received in the second
quarter of fiscal 2010, with the Optical Systems division
contributing the remaining 42%.
For the second quarter of fiscal 2010, ZYGO reported a net loss of
$1.9 million ($953,000 from continuing operations), or a loss of $0.11
($0.07 from continuing operations) per diluted share, as compared with
a net loss of $4.0 million ($3.5 million from continuing operations),
or $0.24 ($0.23 from continuing operations) per diluted share, for
the second quarter of fiscal 2009. The second quarter of fiscal 2010
loss from continuing operations included $1.6 million of operating
expenses related to severance costs due to our reorganization efforts
and costs associated with the retirement of our former CEO and search
for a new CEO. Excluding these items, the Company would have
reported a net profit from continuing operations of $358,000, or
$0.02 per diluted share. A reconciliation between GAAP (Accounting
Principles Generally Accepted in the United States of America)
operating results and non-GAAP operating results is provided
following the financial statements that are part of this release.
Commenting on the second quarter results, Walter Shephard, Chief
Financial Officer of Zygo Corporation, said, "ZYGO performed well in
the quarter, generating significant sequential growth in bookings and
revenues, supporting our belief in the continuing recovery in the
Company's markets and growing demand for ZYGO's leading technologies
and products. As a result of cost reduction efforts, the Company
also had a marked improvement in financial performance as compared
with the second quarter of fiscal 2009. We also realized a
significant improvement in gross profit, which increased to 42% for
the quarter, and, similarly, our operating expenses declined
significantly compared with the prior year period."
Dr. Chris Koliopoulos, President and Chief Executive Officer of Zygo
Corporation, said, "The second quarter results reinforce the reasons
why I came to ZYGO, including my belief in ZYGO's leading technology
and its strong positions in the optics and metrology markets. My
objective is to build on our core technology and increase our market
penetration by providing our customers with solutions where demands
of precision, accuracy, and throughput are required. In the near
term, ZYGO is on the right path to increase revenues and
profitability through directed marketing efforts in our core markets,
gross profit improvement, and cost containment measures."
Bookings in our Optical Systems division increased by a robust 67%
over the first quarter of fiscal 2010, including the following
bookings:
-- $3.4 million from a large laser fusion customer for delivery
within twelve months,
-- $3.1 million for a Helmet Mounted Display product,
-- $3.0 million for a contract manufacturing medical product.
For the first six months of fiscal 2010, the Company recorded
revenues of $47.4 million and a net loss of $7.7 million ($4.8
million from continuing operations), or a loss of $0.45 ($0.31 from
continuing operations) per diluted share, compared with revenues of
$70.9 million and a net loss of $3.5 million ($2.3 million from
continuing operations), or $0.21 ($0.18 from continuing operations)
per diluted share, for the first six months of fiscal 2009.
"As ZYGO enters its fifth decade, I am excited about the future
growth of the company," said Dr. Koliopoulos. "Celebrating 40 years
in the field of high tech optics and precision optical metrology,
ZYGO has accumulated the knowledge, experience, and advanced
technology over these 40 years to be a dominant player among our
peers in the global optics community. I look forward to working with
our employees in developing our business model to further capitalize
on opportunities and increase shareholder value."
Zygo Corporation is a worldwide supplier of optical metrology
instruments, precision optics, and electro-optical design and
manufacturing services, serving customers in the semiconductor
capital equipment and industrial markets.
Note: ZYGO's teleconference to discuss the results of the second
quarter of fiscal 2010 will be held at 5 PM Eastern Time on February
4, 2010 and can be accessed by dialing 800-920-2968. 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.
IMPORTANT INFORMATION
This communication may be deemed to be solicitation material in
respect of ZYGO's solicitation of proxies in connection with its
Annual Meeting of Stockholders scheduled to be held on February 10,
2010. In connection with the solicitation of proxies, ZYGO filed with
the U.S. Securities and Exchange Commission (the "SEC") a definitive
proxy statement and other relevant documents concerning the proposals
to be presented at the Annual Meeting of Stockholders.
ZYGO also filed additional definitive proxy materials with the SEC,
including information with respect to the addition of Dr. Chris
Koliopoulos to the slate of nominees being proposed for election at
the Annual Meeting of Stockholders. Stockholders are advised to read
the additional definitive proxy materials as well as the definitive
proxy statement, previously mailed or delivered by internet delivery
to stockholders, and other documents related to the solicitation of
proxies from stockholders of ZYGO for use at the Annual Meeting of
Stockholders, because they contain important information. Additional
definitive proxy materials and a form of proxy has been mailed or
delivered by internet delivery to ZYGO's stockholders and are
available, along with other relevant documents, at no charge, at the
SEC's website at http://www.sec.gov and at http://www.proxyvote.com.
ZYGO and its directors and executive officers may be deemed to be
participants in the solicitation of proxies from ZYGO stockholders.
Certain information regarding the participants and their interests in
the solicitation is set forth in the additional definitive proxy
materials and the definitive proxy materials for ZYGO's Annual
Meeting of Stockholders, which are available free of charge from the
SEC at its website as indicated above.
Forward-Looking Statements
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 revenues,
bookings, 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 revenues 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; risks related to the reorganization of our
business; dependence on proprietary technology and key personnel;
length of the revenues cycle; environmental regulations; investment
portfolio returns; fluctuations in our stock price; the risk that
anticipated growth opportunities may be smaller than anticipated or
may not be realized; risks related to the acquisition of Zemetrics
and integration of the business and employees; the risk related to the
Company's transition to new senior management; and the risk
associated with unsolicited proposals to purchase outstanding shares
of the Company's common stock. 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, as
amended by two Form 10-K/A filings, for the fiscal year ended June
30, 2009, filed with the Securities and Exchange Commission on
September 14, 2009, October 26, 2009, and December 23, 2009,
respectively.
Zygo Corporation and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
(Thousands, except per share amounts)
Three Months Ended Six Months Ended
December 31, December 31,
---------------------- ----------------------
2009 2008 2009 2008
---------- ---------- ---------- ----------
Revenues $ 26,081 $ 33,400 $ 47,406 $ 70,893
Cost of goods sold 15,128 21,144 29,279 42,150
---------- ---------- ---------- ----------
Gross profit 10,953 12,256 18,127 28,743
---------- ---------- ---------- ----------
Selling, general, and
administrative expenses 8,533 12,144 15,088 21,229
Research, development, and
engineering expenses 3,896 5,561 7,543 10,867
Provision for doubtful
accounts and notes (168) 617 53 999
---------- ---------- ---------- ----------
Operating expenses 12,261 18,322 22,684 33,095
---------- ---------- ---------- ----------
Operating loss (1,308) (6,066) (4,557) (4,352)
---------- ---------- ---------- ----------
Other income
Interest income 23 291 74 660
Miscellaneous income 24 467 84 23
---------- ---------- ---------- ----------
Total other income 47 758 158 683
---------- ---------- ---------- ----------
Loss from continuing
operations before income
tax, including
non-controlling interest (1,261) (5,308) (4,399) (3,669)
Income tax benefit
(expense) 308 1,853 (374) 1,322
---------- ---------- ---------- ----------
Net loss from continuing
operations (953) (3,455) (4,773) (2,347)
Loss from discontinued
operations, net of tax (639) (214) (2,474) (543)
---------- ---------- ---------- ----------
Net loss including
non-controlling interest (1,592) (3,669) (7,247) (2,890)
Net earnings attributable
to non-controlling
interest 313 372 445 648
---------- ---------- ---------- ----------
Net loss attributable to
Zygo Corporation $ (1,905) $ (4,041) $ (7,692) $ (3,538)
========== ========== ========== ==========
Net loss from continuing
operations attributable to
Zygo Corporation $ (1,266) $ (3,827) $ (5,218) $ (2,995)
========== ========== ========== ==========
Basic and Diluted - Loss
per share attributable
to Zygo Corporation
Continuing operations $ (0.07) $ (0.23) $ (0.31) $ (0.18)
Discontinued
operations (0.04) (0.01) (0.15) (0.03)
---------- ---------- ---------- ----------
Net loss per share $ (0.11) $ (0.24) $ (0.45) $ (0.21)
========== ========== ========== ==========
Weighted average shares
outstanding
Basic and Diluted
shares 16,993 16,834 16,968 16,805
========== ========== ========== ==========
Zygo Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
December 31, 2009 June 30, 2009
----------------- -----------------
Assets
Current assets:
Cash and cash equivalents $ 37,745 $ 32,723
Marketable securities 1,000 4,015
Receivables, net 21,015 20,874
Inventories 24,383 30,452
Prepaid expenses and other 1,846 1,527
Income tax receivable 1,252 1,022
Current assets of discontinued
operations 78 294
----------------- -----------------
Total current assets 87,319 90,907
Marketable securities 627 499
Property, plant, and equipment, net 24,886 27,325
Intangible assets, net 4,172 4,211
Other assets 1,011 1,013
Non-current assets of discontinued
operations - 144
----------------- -----------------
Total assets $ 118,015 $ 124,099
================= =================
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 4,870 $ 5,089
Accrued expenses 15,020 15,745
Current liabilities of
discontinued operations 474 331
----------------- -----------------
Total current liabilities 20,364 21,165
Long-term income tax payable 1,826 1,826
Other long-term liabilities 1,361 1,081
Non-current liabilities of discontinued
operations 365 -
Commitments and contingencies - -
Total stockholders' equity - Zygo
Corporation 92,449 98,583
Non-controlling interest 1,650 1,444
----------------- -----------------
Total stockholders' equity 94,099 100,027
----------------- -----------------
Total liabilities and stockholders'
equity $ 118,015 $ 124,099
================= =================
Zygo Corporation and Subsidiaries
Reported Results to Non-GAAP Results
(Unaudited)
(Thousands of dollars, except per share amounts)
Three Months Ended Six Months Ended
December 31, December 31,
------------------ ------------------
2009 2008 2009 2008
-------- -------- -------- --------
GAAP operating loss (as reported) $ (1,308) $ (6,066) $ (4,557) $ (4,352)
Adjustments to operating expenses
Severence charges (SG&A) 422 - 435 -
Severence charges (RD&E) 305 - 377 -
CEO retirement and search
costs (SG&A) 897 - 897 -
Royalty claim - 1,360 - 1,360
ESI merger related expenses
(SG&A) - 1,852 - 2,194
-------- -------- -------- --------
Total non-GAAP adjustments to
operating expenses 1,624 3,212 1,709 3,554
-------- -------- -------- --------
Non-GAAP operating profit (loss),
as adjusted $ 316 $ (2,854) $ (2,848) $ (798)
======== ======== ======== ========
Other income (as reported) 47 758 158 683
Net earnings attributable to
non-controlling interest (as
reported) 313 372 445 648
Income tax benefit (expense) *1 308 996 (374) 288
-------- -------- -------- --------
Non-GAAP net earnings (loss) -
continuing operations as
adjusted $ 358 $ (1,472) $ (3,509) $ (475)
======== ======== ======== ========
GAAP loss per share - continuing
operations (as reported) $ (0.07) $ (0.23) $ (0.31) $ (0.18)
Non-GAAP net earnings (loss) per
share - continuing operations as
adjusted $ 0.02 $ (0.09) $ (0.21) $ (0.03)
Weighted average shares used in
basic shares calculation 16,993 16,834 16,968 16,805
Weighted average shares used in
diluted shares calculation 17,154 - - -
*1 The Company's reported results for fiscal 2010 include a full
valuation allowance on its deferred tax assets. Accordingly, for
purposes of computing non-GAAP net earnings (loss), as adjusted, the
Company has assumed no tax benefit would be recorded in fiscal 2010.
Fiscal 2009 results on the non-GAAP basis were adjusted based on the
effective tax rates in the respective fiscal 2009 periods.
Non-GAAP operating profit (loss), as adjusted, non-GAAP net earnings
(loss), as adjusted and non-GAAP net earnings (loss) per share, as
adjusted, are operating performance measures defined by the Company
and used by the Company's management to evaluate its operating
activities and a reconciliation of such amounts to reported results
is presented above. These non-GAAP financial measures are not
intended to replace reported amounts of operating profit (loss), net
earnings (loss) or net earnings (loss) per share, which respectively
are the most directly comparable GAAP financial measures. The
Company believes that providing such a reconciliation is useful to
users of the financial statements, since it excludes certain
significant and unusual charges in the Company's results, thus
enhancing comparability of the Company's results between periods
presented. These non-GAAP measures are not alternatives to the most
directly comparable reported measures under GAAP and should not be
considered as alternatives to operating profit (loss), net earnings
(loss), and net earnings (loss) per shares or any other measure of
consolidated operating results under GAAP.
For Further Information Call:
Walter A. Shephard
Chief Financial Officer
Voice: 860-704-3955
Email Contact
SOURCE: Zygo Corporation
http://www2.marketwire.com/mw/emailprcntct?id=4453D25AC31B1111
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