Zygo Corp. (ZIGO, Financial) filed Quarterly Report for the period ended 2008-12-31.
Zygo Corporation is a world leader in metrology process control and yield enhancement solutions for high precision manufacturing industries. The company's products are based on its core competencies in high precision measurement including interferometry confocal scanning optical microscopy application specific vision metrology atomic force microscopy systems integration automated piece parts handling and precision optical components. Zygo Corp. has a market cap of $96.15 million; its shares were traded at around $5.77 with a P/E ratio of 111.1 and P/S ratio of 0.6.
Net sales for the six months ended December 31, 2008 decreased marginally from the comparable prior year period, reflecting a decrease in the Optical Systems segment sales of 14%, partially offset by an increase in Metrology Solutions segment sales of 6%. The decrease in the Optics segment was due primarily to decreases in contract manufacturing of $2.2 million and volume decreases of $1.0 million in the laser fusion and precision optics areas. The decrease in contract manufacturing sales was primarily due to two significant projects in the second quarter of the prior year, for which there were no corresponding projects in the current year. The Metrology segment net sales increases were primarily due to increased volume in display systems of $4.5 million and vision systems of $2.1 million (vision systems was purchased during the third quarter of fiscal 2008), partially offset by volume decreases in instruments of $2.7 million and in lithography sales of $1.0 million.
Sales in U.S. dollars for the three and six months ended December 31, 2008 were approximately 76% of total net sales, with the remaining 24% being in Euro or Yen. For our sales which are based in foreign currency, we are exposed to foreign exchange fluctuations from the time customers are invoiced in foreign currency until collection occurs. Significant changes in the values of foreign currencies relative to the value of the U.S. dollar, or in the general economic conditions in our export markets, could materially impact the sales of our products in these markets and our Condensed Consolidated Financial Position and Results of Operations.
Sales to Canon Inc., a stockholder, and Canon Sales Co., Inc., a distributor of certain of our products in Japan and a subsidiary of Canon Inc., (collectively referred to as Canon) amounted to $4.9 million and $12.1 million (15% and 17% of net sales, respectively) for the three and six months ended December 31, 2008, respectively, as compared with $6.7 million and $12.3 million (each 17% of net sales) for the three and six months ended December 31, 2007. Selling prices of products sold to Canon are based, generally, on the terms customarily given to distributors. At December 31, 2008 and June 30, 2008, there were, in the aggregate, $1.4 million and $3.0 million, respectively, of trade accounts receivable from Canon.
The composition of our marketable securities by industry sector is as follows: 59% Finance; 8% Utilities; 8% Real Estate; 8% Consumer Goods; 7% Healthcare; and 10% other. We hold a total of fourteen corporate bonds with the largest being $1.0 million. We have the ability and intent to hold all the securities to maturity, the last maturity of which is on December 1, 2009. We believe there are no impairments in our investments other than an impairment of $0.5 million on an auction rate security ($0.2 million for the six months ended December 31, 2008).
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Zygo Corporation is a world leader in metrology process control and yield enhancement solutions for high precision manufacturing industries. The company's products are based on its core competencies in high precision measurement including interferometry confocal scanning optical microscopy application specific vision metrology atomic force microscopy systems integration automated piece parts handling and precision optical components. Zygo Corp. has a market cap of $96.15 million; its shares were traded at around $5.77 with a P/E ratio of 111.1 and P/S ratio of 0.6.
Highlight of Business Operations:
Orders for the three months ended December 31, 2008 were $22.3 million, as compared with $42.9 million for the comparable prior year period. Orders from the companys Metrology Solutions segment accounted for 77% of the orders received, with the Optical Systems segment contributing the remaining 23%. The $20.6 million decline in orders from the same period of the prior year occurred primarily in the Metrology segment, which experienced reduced orders for lithography products of $7.7 million, display systems of $6.4 million and instruments of $2.8 million. Within the Optics segment, orders were down $3.7 million primarily due to push out of orders from one of our ophthalmology customers.Net sales for the six months ended December 31, 2008 decreased marginally from the comparable prior year period, reflecting a decrease in the Optical Systems segment sales of 14%, partially offset by an increase in Metrology Solutions segment sales of 6%. The decrease in the Optics segment was due primarily to decreases in contract manufacturing of $2.2 million and volume decreases of $1.0 million in the laser fusion and precision optics areas. The decrease in contract manufacturing sales was primarily due to two significant projects in the second quarter of the prior year, for which there were no corresponding projects in the current year. The Metrology segment net sales increases were primarily due to increased volume in display systems of $4.5 million and vision systems of $2.1 million (vision systems was purchased during the third quarter of fiscal 2008), partially offset by volume decreases in instruments of $2.7 million and in lithography sales of $1.0 million.
Sales in U.S. dollars for the three and six months ended December 31, 2008 were approximately 76% of total net sales, with the remaining 24% being in Euro or Yen. For our sales which are based in foreign currency, we are exposed to foreign exchange fluctuations from the time customers are invoiced in foreign currency until collection occurs. Significant changes in the values of foreign currencies relative to the value of the U.S. dollar, or in the general economic conditions in our export markets, could materially impact the sales of our products in these markets and our Condensed Consolidated Financial Position and Results of Operations.
Sales to Canon Inc., a stockholder, and Canon Sales Co., Inc., a distributor of certain of our products in Japan and a subsidiary of Canon Inc., (collectively referred to as Canon) amounted to $4.9 million and $12.1 million (15% and 17% of net sales, respectively) for the three and six months ended December 31, 2008, respectively, as compared with $6.7 million and $12.3 million (each 17% of net sales) for the three and six months ended December 31, 2007. Selling prices of products sold to Canon are based, generally, on the terms customarily given to distributors. At December 31, 2008 and June 30, 2008, there were, in the aggregate, $1.4 million and $3.0 million, respectively, of trade accounts receivable from Canon.
The composition of our marketable securities by industry sector is as follows: 59% Finance; 8% Utilities; 8% Real Estate; 8% Consumer Goods; 7% Healthcare; and 10% other. We hold a total of fourteen corporate bonds with the largest being $1.0 million. We have the ability and intent to hold all the securities to maturity, the last maturity of which is on December 1, 2009. We believe there are no impairments in our investments other than an impairment of $0.5 million on an auction rate security ($0.2 million for the six months ended December 31, 2008).
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