EX-99 2 ex99-1.htm EXHIBIT 99.1

 

 

Exhibit 99.1

 

 

Walter Shephard

Vice President, Finance, Chief Financial Officer, and Treasurer

Voice: 860-704-3955

inquire@zygo.com

 

For Immediate Release

 

ZYGO POSTS STRONG SALES & EARNINGS FOR ITS SECOND QUARTER

---RECORD ORDERS OF $50.3 MILLION---

 

MIDDLEFIELD, CT, JANUARY 26, 2006 – Zygo Corporation (NASDAQ: ZIGO) today announced earnings for the second quarter of fiscal 2006 of $3.8 million, or $0.21 per diluted share, as compared with earnings of $2.3 million, or $0.13 per diluted share, for the same period in fiscal 2005. The fiscal 2006 second quarter results include share-based payment compensation expense of $0.5 million ($0.8 million pre-tax), or $0.03 per diluted share, of which $0.6 million pre-tax is included in operating expenses and $0.2 million pre-tax is included in cost of goods sold. The fiscal 2005 second quarter results do not include any share-based payment compensation expense but do include a loss from discontinued operations of $0.01 per diluted share.

 

For the first six months of fiscal 2006, the Company recorded earnings of $6.2 million, or $0.34 per diluted share, compared with earnings of $3.6 million, or $0.20 per diluted share for the first six months of fiscal 2005. The results for the first six months of fiscal 2006 include share-based payment compensation expense of $0.8 million ($1.2 million pre-tax), or $0.04 per diluted share. The results for the first six months of fiscal 2005 do not include any share-based payment compensation expense but do include a loss from discontinued operations of $0.01 per diluted share.

 

Net sales for the second quarter of fiscal 2006 increased 22% to $43.8 million as compared with the same period in the prior year. Net sales for the first six months of fiscal 2006 increased 23% to $78.4 million as compared with the first six months of fiscal 2005.

 

“We are extremely pleased with the financial results of the second quarter,” stated Bruce Robinson, ZYGO’s Chairman and CEO. “Both our semiconductor and industrial revenues grew at double digit rates from the comparable period in the prior year and we continue to see improvement in our gross profit and operating profit lines.”

 

Orders for the second quarter of fiscal 2006 were a record $50.3 million as compared with $39.6 million for the second quarter of fiscal 2005. Orders from the Company’s semiconductor segment accounted for 52% of the orders received, with the industrial segment accounting for 48% of the orders received. Backlog at December 31, 2005 totaled $77.0 million, an increase of $6.4 million, or 9%, from September 30, 2005 and of $12.1 million, or 19%, from December 31, 2004.

 

 

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“The results of our second quarter order performance continues to validate our strategy of taking ZYGO’s unique patented technology to selected markets,” Mr. Robinson continued. “We believe that the orders we received in the quarter for our two semiconductor initiatives reflects the progress we are making in transforming ZYGO from predominantly OEM based products to integrated in-line metrology.”

 

Order highlights for the second quarter of fiscal 2006 included:

 

 

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Orders for our Flat Panel business were over $6.0 million, including our first systems in China.

 

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We received follow-on orders for our back-end packaging tool.

 

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Orders from our U.S.-based laser fusion customer totaled over $10.0 million.

 

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Orders from our lithography customers remain strong.

 

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Cash and securities, at $57.5 million, have increased 63% over the same period last year.

 

Mr. Robinson closed his remarks by stating, “The solid performance of the Company for the first half of the year is especially gratifying as we have seen a strong performance in both our semiconductor and industrial segments. Our growth strategies have provided the Company with a number of opportunities to build on our early successes in a production environment.”

 

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 2006 will be held at 6 PM Eastern Standard Time on January 26, 2006 and can be accessed by dialing 888-793-1698. 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 our financial position, business strategy, plans, anticipated growth rates, 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, dependence on 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, and stock price. 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, 2005.

 

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Zygo Corporation and Subsidiaries

Condensed Consolidated Statements of Operations

(Unaudited)

 

(Thousands, except per share amounts)

Three Months Ended   Six Months Ended
     
December 31,
2005
December 31,
2004
December 31,
2005
December 31,
2004
Net sales                              
         Products     $ 38,212     $ 33,530     $ 68,833     $ 59,413  
         Development services       5,611       2,477       9,572       4,172  
        43,823       36,007       78,405       63,585  
Cost of goods sold    
         Products       22,357       21,024       40,619       36,193  
         Development services       4,049       1,725       6,954       3,021  
        26,406       22,749       47,573       39,214  
         Gross profit       17,417       13,258       30,832       24,371  
 
Selling, general, and administrative expenses       8,159       5,723       14,570       11,382  
Research, development, and engineering expenses       3,428       3,672       6,968       6,880  
         Operating profit       5,830       3,863       9,294       6,109  
 
Other income:    
         Interest income       411       175       828       354  
         Miscellaneous income, net       88       243       216       214  
         Total other income       499       418       1,044       568  
         Earnings from continuing operations    
            before income taxes and minority interest       6,329       4,281       10,338       6,677  
 
Income tax expense       (2,142 )     (1,542 )     (3,665 )     (2,404 )
Minority interest       (360 )     (275 )     (510 )     (397 )
         Earnings from continuing operations       3,827       2,464       6,163       3,876  
 
Discontinued TeraOptix operations, net of tax       —       (49 )     —       (110 )
Charges and adjustments on the disposal of    
   TeraOptix, net of tax       —       (114 )     —       (118 )
         Loss from discontinued operations       —       (163 )     —       (228 )
Net earnings     $ 3,827     $ 2,301     $ 6,163     $ 3,648  
 
Basic - Earnings (loss) per share:    
         Continuing operations     $ 0.21     $ 0.14     $ 0.34     $ 0.22  
         Discontinued operations       —       (0.01 )     —       (0.02 )
         Net earnings     $ 0.21     $ 0.13     $ 0.34     $ 0.20  
 
Diluted - Earnings (loss) per share:    
         Continuing operations     $ 0.21     $ 0.14     $ 0.34     $ 0.21  
         Discontinued operations       —       (0.01 )     —       (0.01 )
         Net earnings     $ 0.21     $ 0.13     $ 0.34     $ 0.20  

 

 

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Zygo Corporation and Subsidiaries

Condensed Consolidated Balance Sheets

(Unaudited)

(Thousands of dollars)     December 31, 2005   June 30, 2005  
Assets                
Current assets:    
         Cash and cash equivalents     $ 13,457   $ 20,949  
         Marketable securities       20,169     17,242  
         Receivables, net       30,579     28,125  
         Inventories       32,980     33,727  
         Prepaid expenses       2,064     2,140  
         Deferred income taxes       9,537     8,895  
              Total current assets       108,786     111,078  
                 
Marketable securities       23,915     18,711  
Property, plant, and equipment, net       31,540     31,420  
Deferred income taxes       18,100     21,476  
Intangible assets, net       5,892     5,638  
Other assets       884     1,017  
Total assets     $ 189,117   $ 189,340  
     
Liabilities and Stockholders' Equity    
Current liabilities:    
         Payables     $ 11,212   $ 13,510  
         Accrued expenses       27,604     32,804  
         Income taxes payable       1,540     1,510  
              Total current liabilities       40,356     47,824  
                 
Other long-term liabilities       97     96  
Minority interest       1,138     1,249  
Stockholders' equity       147,526     140,171  
Total liabilities and stockholders' equity     $ 189,117   $ 189,340  

 

 

 

 

 

 

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