Zygo Reports Q4

MIDDLEFIELD, Conn. -- Zygo Corporation (NASDAQ: ZIGO): Net sales of $23,166,000 for the fourth quarter and $84,426,000 for the fiscal year ended June 30, 2002 decreased by $14,704,000, or 39%, and $48,824,000, or 37%, from the comparable prior year periods. For the fourth quarter of fiscal 2002, net sales in the semiconductor segment were $10,380,000, or 45% of total net sales, as compared to $23,744,000, or 63%, in the prior year period; net sales in the industrial segment were $11,982,000, or 52% of total net sales, as compared to $10,204,000, or 27%, in the prior year period; and net sales in the telecommunications segment were $804,000, or 3% of total net sales, as compared to $3,922,000, or 10%, in the prior year period. For the fiscal year ended June 30, 2002, net sales in the semiconductor segment were $37,483,000, or 44% of total net sales, as compared to $84,561,000, or 64%, in the prior year period; net sales in the industrial segment were $40,336,000, or 48% of total net sales, as compared to $35,178,000, or 26%, in the prior year period; and net sales in the telecommunications segment were $6,607,000, or 8% of total net sales, as compared to $13,511,000, or 10%, in the prior year period. The Company recorded a net loss of $2,621,000 for the fourth quarter of fiscal 2002 as compared to net earnings of $4,730,000 for the comparable prior year period. On a diluted per share basis, the net loss was $.15 per share for the fourth quarter of fiscal 2002, compared with net earnings of $.26 per share in the comparable prior year period. For the fiscal year ended June 30, 2002, the Company recorded a net loss of $11,733,000, or $.67 per share, as compared to net earnings of $10,659,000, or $.66 per share, for the comparable prior year period. Excluding the gain on sale of the Automation Systems Group in Longmont, Colorado (which was sold to Brooks Automation, Inc.) of $6,142,000 and related exit costs ($1,856,000), inventory write-downs ($808,000), and tax expense ($1,322,000), the net loss was $13,889,000, or $.80 on a diluted per share basis, for the fiscal year ended June 30, 2002. The net loss per share is based on the weighted average basic shares outstanding which equals the diluted weighted average shares in 2002. Gross profit for the fourth quarter of fiscal 2002 totaled $6,811,000, a decrease of $11,289,000, or 62%, from $18,100,000 in the fourth quarter of fiscal 2001. Gross profit as a percentage of sales for the fourth quarter of fiscal 2002 was 29%, as compared to 48% for the comparable prior year period. Gross profit for the fiscal year ended June 30, 2002 totaled $24,796,000, a decrease of $36,373,000, or 59%, from $61,169,000 for the fiscal year ended June 30, 2001. Gross profit as a percentage of sales for the fiscal year ended June 30, 2002 was 29%, as compared to 46% for the comparable prior year period. The decrease in gross profit and in gross profit as a percentage of sales is primarily due to lower production volumes. "ZYGO faced a challenging fiscal 2002. Although the industrial segment grew by 15% year on year, it was not enough to offset the 56% downturn in semiconductor revenue. The semiconductor market continues to exhibit little growth since end-user demand for chip-based products remains weak. The flat panel industry is expanding and ZYGO has benefited from stage motion metrology and optics orders as demand for scanners in this market has increased. There is very little visibility as to when a healthy telecom market will occur, and management is reviewing various options to reduce the effect of its ongoing negative impact on the financial results. Going forward, the industrial segment is expected to continue to grow and the Company is positioned to benefit from any renewed strength in the semiconductor market." Zygo Corp.