Zygo Board Rejects II-VI Offer
MIDDLEFIELD, Conn., Feb. 16, 2010 — Optical metrology instruments maker Zygo Corp.'s board announced today it has unanimously rejected a buyout offer from laser-optics materials maker II-VI Inc., saying it is only beginning to see the benefits of its recent initiatives to refocus on its core optical and metrology markets, and Zygo's new CEO should be allowed to do the job he was hired for last month.
Pennsylvania-based II-VI made the offer of $10 per share on Jan. 5. Zygo named optics industry veteran Dr. Chris L. Koliopoulos as its president and CEO on Jan. 19; he became board chairman on Feb. 12.
“The board strongly believes Zygo’s shareholders will be best served by keeping the company independent and pursuing its long-term strategy," said Koliopoulos.
In rejecting the II-VI proposal, the board noted that the company has only just begun to realize the benefits of recent initiatives to refocus on its core optical and metrology markets and to reduce costs.
Zygo said it believes that it will benefit from continued economic recovery in the industries it serves, noting that, in the second quarter of fiscal 2010, which ended on Dec. 31, 2009, Zygo’s revenues increased 22 percent compared with revenues in the first quarter of fiscal 2010.
The company said a 26 percent increase in customer bookings from the first quarter of fiscal 2010, the second sequential increase in bookings, reflects momentum in market recovery.
“With the benefits of recent initiatives and cost reductions, Zygo Corp. is on the right path to capitalize on improving economic conditions by realizing improving revenue and gross margins, helping our bottom line to drive value for our shareholders,” said Koliopoulos.
For more information, visit: www.zygo.com
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