Exhibit 99.1
Walter Shephard
Vice President, Finance, Chief Financial Officer, and Treasurer
Voice: 860-704-3955
inquire@zygo.com
For Immediate Release
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ZYGO ANNOUNCES FISCAL 2005 FIRST QUARTER RESULTS
MIDDLEFIELD, CONNECTICUT (OCTOBER 28, 2004).....Zygo Corporation (NASDAQ: ZIGO)
The Company recorded earnings from continuing operations of $1.4 million, or
$0.08 per diluted share, for the first quarter of fiscal 2005, as compared with
a loss from continuing operations of $0.7 million, or $0.04 per diluted share,
for the first quarter of fiscal 2004.
Net sales for the first quarter of fiscal 2005 increased 14% to $27.6 million as
compared with the prior year first quarter. Backlog at September 30, 2004
totaled $61.4 million, an increase of $6.5 million, or 12%, from June 30, 2004
and increased $24.3 million, or 65%, from September 26, 2003.
The Company recorded net earnings of $1.3 million, or $0.07 per diluted share,
for the first quarter of fiscal 2005, which included a loss from discontinued
operations of $0.1 million, or $0.01 per diluted share. This compares with a net
loss of $0.8 million, or $0.05 per diluted share, for the first quarter of
fiscal 2004, which included a loss from discontinued operations of $0.1 million,
or $0.01 per diluted share.
Orders for the first quarter of fiscal 2005 increased 41% to $34.1 million from
the first quarter of fiscal 2004. Orders from the Company's semiconductor
segment accounted for 32% of the orders received, with the industrial segment
accounting for 68% of the orders. This reflects strong demand in our industrial
segment which offset the impact of the capital spending slowdown that is
prevalent across the semiconductor industry.
Management's View
"We are pleased with the financial results and the strength of the bookings in
the first quarter," noted Bruce Robinson, President and Chief Executive Officer.
"Earnings represented a $0.12 per diluted share turnaround from the first
quarter of fiscal 2004. The backlog continued to climb and at $61.4 million is
near record levels. The first quarter is normally seasonally weak and this year
provided a positive change with orders at $34.1 million."
Highlights for the First Quarter of fiscal 2005:
o Gross profit remained above 40% for the second consecutive quarter
reflecting ongoing success with factory cost reduction programs.
o Book-to-bill ratio remained above 1.0 for the fourth straight quarter.
o Flat panel orders were received from both Japan and Taiwan as our
metrology products continue to receive high acceptance in that market.
o Although we have seen a capital spending slowdown in the semiconductor
market, the industrial segment of our business was very strong.
ZYGO's teleconference to discuss the results of the first quarter of fiscal 2005
will be held at 6 PM Eastern Standard Time on October 28, 2004 and can be
accessed by dialing 800-732-6079. 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.
Zygo Corporation (NASDAQ: ZIGO), headquartered in Middlefield, Connecticut, 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 industries. See ZYGO's web site
at www.zygo.com for additional information.
All statements other than statements of historical fact included in this news
release regarding our financial position, business strategy, plans, anticipated
growth rates, 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 new product development, rapid technological and
market change, international operations, dependence on proprietary technology
and key personnel, length of the sales cycle, environmental regulations, and
changes in expected costs of discontinued operations. 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, 2004.
Zygo Corporation and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended
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September 30, September 26,
2004 2003
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Net sales
Products $25,883 $19,812
Development services 1,695 4,435
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27,578 24,247
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Cost of goods sold
Products 15,168 12,813
Development services 1,297 3,657
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16,465 16,470
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Gross profit 11,113 7,777
Selling, general, and administrative expenses 5,659 5,838
Research, development, and engineering expenses 3,208 3,309
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Operating profit (loss) 2,246 (1,370)
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Other income (expense):
Interest income 179 204
Miscellaneous income (expense), net (29) 45
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Total other income 150 249
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Earnings (loss) from continuing operations
before income taxes and minority interest 2,396 (1,121)
Income tax benefit (expense) (862) 448
Minority interest (122) 10
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Earnings (loss) from continuing operations 1,412 (663)
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Discontinued TeraOptix operations, net of tax (61) (162)
Charges and adjustments on the disposal of
TeraOptix, net of tax (4) -
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Loss from discontinued operations (65) (162)
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Net earnings (loss) $ 1,347 $ (825)
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Basic - Earnings (loss) per share:
Continuing operations $ 0.08 $ (0.04)
Discontinued operations $ - $ (0.01)
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Net earnings (loss) $ 0.08 $ (0.05)
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Diluted - Earnings (loss) per share:
Continuing operations $ 0.08 $ (0.04)
Discontinued operations $ (0.01) $ (0.01)
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Net earnings (loss) $ 0.07 $ (0.05)
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Weighted average shares outstanding:
Basic shares 17,923 17,678
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Diluted shares 18,115 17,678
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Zygo Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
(Thousands of dollars) September 30, 2004 June 30, 2004
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Assets
Current assets:
Cash and cash equivalents $ 15,796 $ 17,462
Marketable securities 9,173 8,428
Receivables, net 20,401 26,338
Inventories 26,713 21,547
Prepaid expenses 1,909 1,915
Deferred income taxes 3,471 3,999
Assets from discontinued unit held for sale 2,012 2,012
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Total current assets 79,475 81,701
Marketable securities 9,495 8,503
Property, plant, and equipment, net 28,626 27,433
Deferred income taxes 31,086 31,738
Intangible assets, net 5,090 4,999
Other assets 1,075 1,078
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Total assets $154,847 $155,452
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Liabilities and Stockholders' Equity
Current liabilities:
Payables $ 10,424 $ 10,384
Accrued expenses and progress payments 8,602 10,798
Income taxes payable 2,059 2,038
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Total current liabilities 21,085 23,220
Other long-term liabilities 244 350
Minority interest 1,360 1,238
Stockholders' equity 132,158 130,644
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Total liabilities and stockholders' equity $154,847 $155,452
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