Zygo reports 'record' Q4 2006 and full-year earnings

22 Aug 2006

Optical metrology system developer reports "record" orders, sales and earnings, says that sales demands reflect its change in focus from laboratory to industry.

Zygo Corp. Middlefield, CT, has announced that its fourth quarter, fiscal 2006, net sales were $47.2 million producing earnings of $4.5 million. Compared with the same period in fiscal 2005, net sales increased by $2.5 million and net earnings increased by $1.1 million.

Zygo is a supplier of optical metrology instruments, precision optics, and electro-optical design and manufacturing services, mainly for the semiconductor and industrial markets.

For the financial year 2006, the company recorded net sales of $168.1 million and earnings of $14.5 million compared with sales of $141.3 million and earnings of $9.0 million in 2005.

"Fiscal 2006 was an outstanding year for the company," said Bruce Robinson, Zygo's chairman and CEO. "Our fourth quarter continued the strong performance that we showed in the first nine months. We are pleased with our results, including company records for orders, sales, and earnings. All three of our business units are making significant contributions to our success this year."

Orders for Q4 2006 were $48.6 million resulted in a positive book-to-bill. Orders from Zygo's semiconductor segment accounted for 64% of the total, with the industrial segment accounting for the remaining 36%. For the full year, orders were $182.3 million, an increase of 19% over fiscal 2005.

"Our 2006 financial year was one in which Zygo made progress in the implementation of our strategic plans. We have shipped systems for in-line use in manufacturing, demonstrating our ability to move from our traditional lab environment to the production floor. This is expected to increase revenues and margins over time," Robinson added.

Zygo 2006 highlights

• Shipped for qualification its first front end semiconductor process metrology tool.

• Flat panel orders for the year totaled $16.1 million reflecting increased demand for both our color filter and thin film technology tools; company expects increased F-P revenues in fiscal 2007 (see related story).

• Lithography orders remained robust as Zygo's two main customers continued to be successful in this business sector.

• Optical Systems Group received an initial order for its Helmet Mounted Display unit, with the expectation that shipments will start in second half of 2007.

• Laser Fusion Group received third major contract.

• Profit margins as a percentage of sales continued to show year on year improvement for the third year in a row.

• Overall company's balance sheet continues to be solid, with cash and marketable securities of $65.5 million at year-end.

"We will continue the transformation of the company that began three years ago," added Robinson. "We expect that 2007 will be a challenging year for us. However, with the combination of our new initiatives and core products, we expect that Zygo's growth will continue."