Zygo Reports $15M Q3 Loss
MIDDLEFIELD, Conn., May 8, 2009 – Zygo Corp. announced a 48 percent loss for the third quarter of fiscal 2009. Net sales decreased to $20 million compared with $38.5 million for the third quarter of fiscal 2008. The net loss was $15.1 million, or $0.90 per diluted share.
The loss 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, Zygo 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 for the same time last year. Orders for the Optical Systems Division accounted for 56 percent of the orders received, with the Metrology Solutions Division contributing the remaining 44 percent.
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.
“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,” said Bruce Robinson, Zygo’s chairman and CEO.
“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,” Robinson added.
For more information, visit: www.zygo.com