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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) August 23, 1995
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Zygo Corporation
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(Exact name of registrant as specified in its charter)
Delaware 0-12944 06-0864500
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
Laurel Brook Road, Middlefield, Connecticut 06455
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (203) 347-8506
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N/A
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(Former name or former address, if changed since last report.)
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<PAGE>
Item 5. Other Events
Reference is made to Attachment A, press release issued by the Company, relating
to its fourth quarter and full fiscal year 1995 results.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Zygo Corporation
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Registrant
By: /s/MARK J. BONNEY
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Mark J. Bonney
Vice President, Finance & Administration, and
Chief Financial Officer
Date: August 23, 1995
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<PAGE>
Mark J. Bonney
Vice President, Finance & Administration, and
Chief Financial Officer
For Immediate Release
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ZYGO REPORTS FOURTH QUARTER AND FULL YEAR RESULTS
- NET SALES, EARNINGS, AND EARNINGS PER SHARE AT RECORD LEVELS
MIDDLEFIELD, CONNECTICUT (August 22, 1995)......Zygo Corporation
(NASDAQ:ZIGO) today announced sharply higher sales, operating earnings, net
earnings, and earnings per share for the quarter and full year ended June 30,
1995, as compared to the same periods in the year earlier.
Net sales for the fourth quarter ended June 30, 1995, were $10,560,000,
the largest single quarter in the Company's history, and were $4,400,000 or 71%
greater than the fourth quarter of fiscal 1994. Net earnings in the quarter
ended June 30, 1995, were $1,140,000, an $829,000 or 267% increase from the same
quarter a year earlier. Earnings per common and common equivalent share for the
quarter ended June 30, 1995, amounted to $.25, a $.17 (213%) increase over the
$.08 earned in the quarter ended June 30, 1994. All per share figures are
adjusted for the impact of a 3 for 2 stock split declared on July 20, 1995, and
payable on August 21, 1995 to shareholders of record on August 1, 1995.
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FISCAL YEAR 1995 RESULTS COMPARED TO FISCAL YEAR 1994
o Net sales rose 34% to $32,233,000.
o Operating Earnings up 223% to $3,727,000.
o Net Earnings up 200% to $2,749,000.
o E.P.S. up 183% to $.65 post split.
o Backlog rose 244% to $12,993,000.
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<PAGE>
Net sales for the fiscal year ended June 30, 1995, amounted to
$32,233,000, a 34% increase over net sales of $24,141,000 in fiscal 1994. The
$8,092,000 increase was principally the result of strong demand for the
Company's electro-optical instruments and accessories, in particular its
distance measuring interferometers used in precision motion control applications
such as microlithography in semiconductor and flat panel display manufacturing.
Also recording significant growth were sales of the Company's microscope
products used in many applications, including the measurement and analysis of
components used in the manufacture of disk drives. Commenting on the surge in
sales of the Company's electro-optical instruments and accessories, Gary K.
Willis, president and chief executive officer, stated, "The combining effects of
excellent semiconductor and data storage industry demand and our ability to move
our instruments from quality control labs to our customers' production lines has
resulted in record sales for Zygo."
Gross profit for fiscal 1995 increased by $3,615,000 to $14,231,000
largely as a result of the increased volume and its effect on the productivity
of the Company's manufacturing operations. Gross profit margins at 44.2% of net
sales increased slightly as a result of the productivity improvements partially
offset by the effect of product mix. The Company incurred $6,537,000 of selling,
general and administrative expenses in the fiscal year, a $138,000 decrease from
the year earlier. While spending for salaries, advertising, product promotion,
and commissions all increased to support the higher sales volume, strict cost
controls in administrative areas, and reduced legal expenses resulted in the
year-to-year decline in total selling, general and administrative expenses.
Selling, general and administrative expenses were 20.3% and 27.7% of net sales
in the years ended June 30, 1995, and 1994, respectively. Expenses for research,
development, and engineering increased by $1,181,000 or 42% to $3,967,000 in
fiscal 1995 primarily as a result of incremental expenses associated with the
establishment and operation of an R&D facility in Simi Valley, California, and
also due to added resources in the Company's Middlefield, Connecticut, R&D
staff. The Simi Valley operation was established to design and develop products
for the data storage industry, the first such effort being focused on the
development of a production flying height tester which is scheduled to be
introduced later this year. R&D expenses amounted to 12.3% and 11.5% of net
sales in the fiscal years ended June 30, 1995 and 1994, respectively.
Operating income in the full year ended June 30, 1995, amounted to
$3,727,000, a $2,572,000 or 223% increase over the year ended June 30, 1994.
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<PAGE>
Net earnings in the fiscal year ended June 30, 1995, totaled
$2,749,000, an increase of $1,831,000, or 200%, from net earnings of $918,000 in
the year ended June 30, 1994. Earnings per common and common equivalent share of
$.65 for the year rose $.42 or 183% from the $.23 earned in fiscal 1994. Per
share amounts in both periods have been adjusted for the 3 for 2 stock split.
Backlog increased in the quarter ended June 30, 1995, to a record level
of $12,993,000 from $12,534,000 at the conclusion of the third quarter ended
March 31, 1995. The backlog at the end of the fiscal year ended June 30, 1994,
amounted to $3,782,000. The backlog of the Company's electro-optical instruments
showed the greatest gains from the year earlier period largely as a result of
continuing strong demand from customers in the semiconductor and data storage
manufacturing sectors which remain very positive. The backlog of precision
custom optical component orders also increased in the quarter ended June 30,
1995 from the comparable quarter in the year earlier, largely as a result of
strong orders in the fourth quarter of fiscal 1995.
Working capital rose to $17,072,000, an increase of $2,183,000 from the
amount at June 30, 1994. The Company had cash, short-term cash investments, and
investments in marketable securities totaling $10,174,000 at June 30, 1995, and
continues to be debt-free as a result of prepaying its long-term debt in the
quarter ended March 31, 1995. Stockholders' equity increased by $3,059,000 to
$22,333,000 in the 1995 fiscal year from the balance at June 30, 1994.
Commenting on the Company's record results in fiscal 1995, Mr. Willis
noted, "It is extremely rewarding to see this record performance which is the
direct result of the efforts of all of Zygo's very dedicated and capable
employees. Fiscal 1995 continues the trend of improvement which began after our
restructuring in fiscal 1992 and our focus on programs designed to strengthen
the Company's foundation, improve the Company's productivity, and accelerate the
Company's revenue growth." Mr. Willis added, "we are very optimistic about the
future potential of the Company. Our improved market position, our record high
backlog, and the sustained demand for our products and systems bode well for
continuing our present strong performance into fiscal 1996."
Zygo Corporation designs, develops, manufactures, and markets
high-performance noncontact electro-optical measuring instruments and
accessories, and manufactures precision optical components. The firm is based in
Middlefield, Connecticut.
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ZYGO CORPORATION AND CONSOLIDATED SUBSIDIARY
CONSOLIDATED STATEMENTS OF EARNINGS
(Thousands, except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended Year Ended
June 30, June 30,
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1995 1994 1995 1994
------- ------ ------- -------
<S> <C> <C> <C> <C>
Net sales $10,560 $6,160 $32,233 $24,141
Cost of goods sold 6,081 3,527 18,002 13,525
------- ------ ------- -------
Gross profit 4,479 2,633 14,231 10,616
Selling, general and administrative expenses 1,829 1,615 6,537 6,675
Research and development 1,462 708 3,967 2,786
------- ------ ------- -------
Operating profit 1,188 310 3,727 1,155
Other income (expense):
Interest income 101 91 372 338
Interest expense (6) (13) (40) (51)
Miscellaneous income (expense), net 56 (23) (103) (114)
------- ------ ------- -------
Other income, net 151 55 229 173
------- ------ ------- -------
Earnings before income taxes 1,339 365 3,956 1,328
Income tax expense 199 54 1,207 410
------- ------ ------- -------
Net earnings $ 1,140 $ 311 $ 2,749 $ 918
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Earnings per common and common
equivalent share: (1) $ .25 $ .08 $ .65 $ .23
======= ====== ======= =======
Weighted average common shares
and common dilutive equivalents
outstanding (1) 4,557 3,983 4,242 3,987
======= ====== ======= =======
</TABLE>
(1) Adjusted for the 3 for 2 stock split effected in the form of a 50%
stock dividend declared on July 20, 1995, and payable August 21, 1995
to shareholders of record on August 1, 1995.
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<PAGE>
ZYGO CORPORATION AND CONSOLIDATED SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Thousands of dollars)
June 30,
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1995 1994
ASSETS
Current assets:
Cash and cash equivalents $ 2,428 $ 2,530
Marketable securities 7,746 7,874
Receivables 6,296 4,109
Inventories 5,643 3,253
Prepaid expenses and taxes 581 268
Deferred income taxes 1,043 825
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Total current assets 23,737 18,859
Net property, plant and equipment 5,263 5,080
Other assets, net 666 560
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Total assets $29,666 $24,499
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ - $ 175
Accounts payable 2,515 1,155
Customer progress payments 174 166
Accrued salaries and wages 1,957 1,582
Other accrued expenses 1,366 892
Income taxes payable 653 -
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Total current liabilities 6,665 3,970
Long-term debt, excluding current portion - 481
Deferred liabilities 668 774
Stockholders' equity 22,333 19,274
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Total liabilities and stockholders' equity $29,666 $24,499
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