EX-99 2 ex99-1.htm EXHIBIT 99.1

Exhibit 99.1


News Release

 

For Further Information Call:

Walter A. Shephard

Vice President Finance, CFO, and Treasurer

Voice: 860-704-3955

inquire@zygo.com

 

For Immediate Release

 

ZYGO ANNOUNCES STRONG EARNINGS GROWTH FOR Q1 OF FISCAL 2007

 

MIDDLEFIELD, CT, OCTOBER 25, 2006 – Zygo Corporation (NASDAQ: ZIGO) today announced net sales of $41.1 million and net earnings of $3.7 million, or $0.20 per diluted share, for the first quarter of fiscal 2007. Compared with the same period in fiscal 2006, net sales increased by $6.8 million, or 20%, net earnings increased by $1.5 million, or 67%, and earnings per diluted share increased by $0.08. Net sales and earnings for the first quarter were favorably impacted by higher revenues from the Company’s Metrology and Precision Position Solutions business units which have above average gross margin products.

 

Orders for the first quarter of fiscal 2006 were $47.8 million, resulting in a positive book-to-bill of 1.16. Orders from the Company’s semiconductor segment accounted for 63% of the orders received, with the industrial segment accounting for the remaining 37%. This increased the Company’s backlog to a record $87.4 million.

 

Bruce Robinson, ZYGO’s Chairman and CEO stated, “We are extremely pleased by our first quarter results. We established records for a fiscal first quarter in terms of orders, sales, and earnings. The first quarter of fiscal 2007 is significant for a number of reasons. Not only did we improve our financial results substantially from Q1 of a year ago, but we also achieved several key strategic milestones.”

 

These milestones included:

 

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Acceptance of our first front end semiconductor process metrology tool.

 

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Receipt of follow on orders and commitments for this same metrology tool.

 

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Introduction of our multifunctional wafer metrology and inspection tool. The Company subsequently announced it had received its first order for this tool early in our second fiscal quarter.

 

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Receipt of our first order for a flat panel metrology system to be used with ink jet printing technology.

 

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Receipt of a multi-million dollar follow on contract award for additional laser damage tolerant high precision optics.

 

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Continued improvement in gross profit, which was over 43% as compared with 38% in Q1 of last year.

 

Mr. Robinson concluded, “Our financial results, together with the achievements during the quarter, reaffirm our confidence in our strategic direction. The strong order momentum we experienced in the last quarter of fiscal 2006 has continued into the early part of fiscal 2007, supporting our expectation that sales will grow to over $180 million in this fiscal year.”

 

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 first quarter of fiscal 2007 will be held at 6 PM Eastern Standard Time on October 25, 2006 and can be accessed by dialing 888-793-1751. 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 and timing 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, and fluctuations in our 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, 2006.

 

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Zygo Corporation and Subsidiaries

Condensed Consolidated Statements of Operations

(Unaudited)

 

(Thousands of dollars, except per share amounts)

 

 

 

Three Months Ended
September 30 		 
 
 
     
2006
  
2005
  
Net sales                
         Products     $ 38,821   $ 30,368  
         Development services       2,286     3,961  
        41,107     34,329  
Cost of goods sold                
         Products       21,743     18,270  
         Development services       1,573     2,906  
        23,316     21,176  
         Gross profit       17,791     13,153  
Selling, general, and administrative expenses       7,525     6,368  
Research, development, and engineering expenses       5,124     3,540  
         Operating profit       5,142     3,245  
Other income                
         Interest income       725     417  
         Miscellaneous income, net       45     123  
         Total other income       770     540  
         Earnings before income taxes                
            and minority interest       5,912     3,785  
Income taxes       (2,069 )   (1,442 )
Minority interest       (191 )   (150 )
         Net earnings     $ 3,652   $ 2,193  
Basic - Earnings per share     $ 0.20   $ 0.12  
Diluted - Earnings per share     $ 0.20   $ 0.12  

 

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Zygo Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)

 

(Thousands of dollars)
 September 30, 2006    
June 30, 2006
 
   
Assets                  
Current assets:                  
         Cash and cash equivalents     $ 13,673     $ 20,318  
         Marketable securities       24,534       21,415  
         Receivables, net       29,752       33,759  
         Inventories       40,687       38,082  
         Prepaid expenses       2,370       2,106  
         Deferred income taxes       12,054       11,959  
              Total current assets       123,070       127,639  
Marketable securities       22,675       23,743  
Property, plant, and equipment, net       33,237       32,631  
Deferred income taxes       13,663       15,433  
Intangible assets, net       5,922       5,925  
Other assets       963       812  
Total assets     $ 199,530     $ 206,183  
Liabilities and Stockholders’ Equity                  
Current liabilities:                  
         Payables     $ 10,058     $ 13,987  
         Accrued expenses       22,674       29,734  
         Income taxes payable       1,476       2,004  
              Total current liabilities       34,208       45,725  
Other long-term liabilities       443       101  
Minority interest       1,610       1,419  
Stockholders' equity       163,269       158,938  
Total liabilities and stockholders' equity     $ 199,530     $ 206,183  

 

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