SOURCE:
Zygo Corporation
2008-08-14 15:18:00
MIDDLEFIELD, CT–(EMWNews – August 14, 2008) – Zygo Corporation (
announced net sales of $48.5 million and net earnings of $1.1 million, or
$0.06 per diluted share, for the fourth quarter of fiscal 2008, as compared
with net sales of $46.5 million and net earnings of $3.8 million, or $0.20
per diluted share, for the fourth quarter in fiscal 2007. The decline in
net earnings is the result of higher operating expenses as the Company
increased its RD&E and sales and marketing expense for the semiconductor
initiatives. In addition, a greater percentage of the Company’s net sales
were made through third party distribution channels, with a correspondingly
higher sales and marketing expense. For fiscal 2008, the Company
recorded net sales of $159.0 million and net earnings of $1.2 million, or
$0.07 per diluted share, as compared with fiscal 2007 net sales of $181.0
million and net earnings of $15.1 million, or $0.81 per diluted share.
Fiscal 2008 net sales decreased 12% as compared with fiscal 2007 as a
result of decreases in sales in our lithography OEM and display system
products.
Orders for the fourth quarter of fiscal 2008 were $40.5 million. Orders
from the Company’s Metrology Division accounted for 79% of the orders
received, with the Optics Division accounting for the remaining 21%. For
the full fiscal year, orders were $159.1 million, with the Metrology
Division accounting for 76% of the orders received, and the remaining 24%
received by the Optics Division.
Bruce Robinson, ZYGO’s Chairman and CEO, stated, “Fiscal 2008 saw continued
strength in our instrument and optical component product lines. It was
also a year of extensive investment in technology as we continued to
execute the strategic shift from OEM products and optical components to
higher revenue in-line production metrology tools and electro-optical
assemblies. Despite significant progress in this transition, we were
negatively impacted by a reduction in capital spending by our customers in
the semiconductor manufacturing and display markets. This contributed to a
year-over-year revenue decline of $22.0 million in fiscal 2008, adversely
affecting earnings, which was clearly a disappointment. Capital spending
in the display sector showed a positive recovery in the latter half of
fiscal 2008 and we entered fiscal 2009 with a strong backlog in display.”
Bruce Robinson continued, “In fiscal 2008 we made several changes. We
implemented restructuring programs in the first and fourth quarters as we
sized our operations to reflect the changing market conditions.
Manufacturing programs aimed at driving down cost and improving
productivity continue to be initiated and we are taking additional measures
to offset rising costs for raw materials, energy, and transportation.”
Significant events during the fiscal year included:
-- Acquisition of the assets of Solvision, Inc., providing 3D and 2D
metrology for semiconductor substrates and packages.
-- Introduction of multiple-application single sensor metrology tools for
wafer measurements at 45 nanometers and below.
-- Commencement of a majority-owned joint venture in China in the latter
half of fiscal 2008, to develop and assemble products designed for the
local market.
-- Continued strong growth in the medical sector driven by ophthalmic
applications and state-of-the-art dental device design and manufacturing.
-- Development of proprietary, high precision metrology which enables the
penetration of lithographic optics markets in Asia.
-- The repurchase of 1.6 million shares, representing 9% of outstanding
shares through a stock buyback program.
Commenting on fiscal 2009 expectations, Mr. Robinson said, “Despite the
current slowdown in the world economy, we expect to achieve sales growth in
excess of 10% in fiscal 2009, fueled by increased Metrology sales in our
Display Solutions and Vision Systems groups.”
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 fourth quarter of
fiscal 2008 and full fiscal year will be held at 6 PM Eastern Time on
August 14, 2008 and can be accessed by dialing 800-768-8804. 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 sales, orders, profits, 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 net sales to our major customer,
manufacturing and supplier risks, dependence on timing and market
acceptance 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 , investment portfolio returns, and fluctuations in our stock
price. 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
for the fiscal year ended June 30, 2007.
Zygo Corporation and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
(Thousands, except per share amounts)
Three Months Ended Twelve Months Ended
-------------------- --------------------
June 30, June 30,
-------------------- --------------------
2008 2007 2008 2007
--------- --------- --------- ---------
Net sales $ 48,497 $ 46,544 $ 159,036 $ 180,988
Cost of goods sold 26,921 27,330 94,213 103,805
--------- --------- --------- ---------
Gross profit 21,576 19,214 64,823 77,183
Selling, general, and
administrative expenses 12,401 8,201 38,501 32,876
Research, development, and
engineering expenses 6,922 5,399 24,275 22,038
--------- --------- --------- ---------
Operating profit 2,253 5,614 2,047 22,269
--------- --------- --------- ---------
Other income
Interest income 369 816 2,367 2,990
Miscellaneous expense (317) (187) (235) (9)
--------- --------- --------- ---------
Total other income 52 629 2,132 2,981
--------- --------- --------- ---------
Earnings before income
taxes and minority
interest 2,305 6,243 4,179 25,250
Income taxes (900) (2,229) (1,542) (9,132)
Minority interest (352) (204) (1,398) (976)
--------- --------- --------- ---------
Net earnings $ 1,053 $ 3,810 $ 1,239 $ 15,142
========= ========= ========= =========
Basic - Earnings per share $ 0.06 $ 0.21 $ 0.07 $ 0.83
========= ========= ========= =========
Diluted - Earnings per share $ 0.06 $ 0.20 $ 0.07 $ 0.81
========= ========= ========= =========
Weighted average shares
outstanding:
Basic 16,730 18,217 17,295 18,156
========= ========= ========= =========
Diluted 17,131 18,677 17,648 18,601
========= ========= ========= =========
Zygo Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
(Thousands of dollars) June 30, 2008 June 30, 2007
------------- -------------
Assets
Current assets:
Cash and cash equivalents $ 26,421 $ 17,826
Marketable securities 17,639 29,453
Receivables, net 31,036 32,476
Inventories 37,542 43,048
Prepaid expenses 2,230 2,240
Income tax receivable 241 -
Deferred income taxes 12,143 15,077
------------- -------------
Total current assets 127,252 140,120
Marketable securities 6,963 22,879
Property, plant, and equipment, net 36,371 36,349
Deferred income taxes 8,904 5,700
Intangible assets, net 9,522 6,110
Long term income tax receivable 616 -
Other assets 380 436
------------- -------------
Total assets $ 190,008 $ 211,594
============= =============
Liabilities and Stockholders' Equity
Current liabilities:
Payables $ 7,955 $ 8,720
Accrued expenses 14,414 22,463
Income taxes payable - 1,103
Deferred income taxes 32 -
------------- -------------
Total current liabilities 22,401 32,286
Other long-term liabilities 844 555
Long term income tax payable 1,973 -
Minority interest 1,844 976
Stockholders' equity 162,946 177,777
------------- -------------
Total liabilities and stockholders' equity $ 190,008 $ 211,594
============= =============
| For Further Information Call: Walter A. Shephard Vice President Finance, CFO, and Treasurer Voice: 860-704-3955 |
|
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