Record profitability at Zygo as orders stay strong

19 Aug 2011

The precision optics and metrology firm has just posted net earnings of $19 million for fiscal 2011.

Zygo Corporation has posted record earnings for fiscal year 2011, while strong bookings suggest that any slowdown resulting from the semiconductor industry cycle or macro-economic weakness is yet to have any impact.

The company posted a net income of $19.1 million on full-year revenues of $150.1 million, swinging from a net loss of $6.3 million last year. Sales increased 48% on the prior year, thanks partly to the acquisition of ASML Optics in late 2010 but also reflecting solid demand for products such as large-scale optics.

CEO Chris Koliopoulos described the results as “outstanding”, adding that Zygo had reached a new level of performance. And while many fret over the future impact of the current stock market and sovereign debt turmoil, Zygo continues to see strong orders. It received bookings of $167.2 million in the fiscal year just completed, with recent highlights including a $3 million order for laser fusion amplifiers and a $2 million order for high-precision lenses to be used in ophthalmic surgery.

“Although it has been reported that certain markets are beginning to reflect cyclical weakness, our strength through innovative product offerings and market diversity appear to be contributing to the uniformity and continuity of our bookings and revenue,” Koliopoulos added in a statement accompanying the financial results.

In the closing quarter of Zygo’s fiscal 2011, the company also saw strong sequential growth, with both revenues and bookings up 6% on the third quarter.

Zygo management also revealed that the firm has beefed up its in-house legal team with intellectual property expertise to help protect its patent position. One area where Zygo has enjoyed recent success is China, where it has received orders for very large optics valued at several million dollars.