The latest news from academia, regulators
research labs and other things of interest
Posted: June 16, 2008
Tegal Reports Fiscal 2008 Net Income
(Nanowerk News) Tegal Corporation (NASDAQ: TGAL), a leading designer and manufacturer of plasma etch and deposition systems used in the production of integrated circuits and nanotechnology devices, today announced financial results for the fourth quarter and fiscal year 2008, which ended March 31, 2008.
Fiscal 2008 Highlights
Fiscal year 2008 revenues were $32.9 million, an increase of 47.9% over the prior fiscal year. Gross margins were 42.6%, compared to 24.8% in the prior year. Operating income for fiscal 2008 was $1.6 million and net income was $18.1 million or $2.48 per diluted share. Fourth quarter net income included other income of $15.0 million, resulting primarily from the final settlement of a fee dispute with the Company’s attorneys.
The Company’s cash balance at the end of the fiscal year was $19.3 million, compared to $25.8 million at the end of fiscal 2007, and $19.8 million at the end of the third quarter of fiscal 2008.
In March 2008, the Company signed a distributor agreement with WESI Technology (China), a joint-venture between WKK and ECI Technology, Inc., for the sales, service and technical support of its products in China and Taiwan.
Following fiscal year end, the Company announced a Beta site agreement with a leading High-Brightness LED manufacturer which will include the shipment of a Compact 360 NLD system early in the second quarter of fiscal 2009.
“Fiscal 2008 was the culmination of a successful three-year effort to turn our Company around. I want to thank our shareholders for their support and personally thank our employees whose hard work and perseverance made all of the difference,” said Thomas Mika, Chairman, President and CEO of Tegal Corporation. “We were fortunate this year to be able to overcome a strong headwind in the semiconductor capital equipment market, due largely to our focus on faster growth, non-mainstream device markets. Compared to many of our competitors, including companies much larger than Tegal, we are in an enviable position of having a relatively strong balance sheet, a lean organization, and the needed flexibility to prosper in a challenging environment.”
Fourth quarter revenues were $7.4 million, up 19.5% from $6.2 million in the same period of the prior year. Revenues for fiscal 2008 were $32.9 million, compared to $22.3 million in the prior fiscal year – an increase of 47.9%.
Fourth quarter gross margins were 50.6%, compared to 31.5% in the same quarter one year ago. Fiscal 2008 gross margins were 42.6%, compared to 24.8% in 2007.
Operating income for the fourth quarter was $0.8 million, compared to a loss of ($2.0) million in the same quarter one year ago. The Company’s operating income for the full year was $1.6 million, compared to an operating loss of ($13.4) million in fiscal 2007. Operating expenses during the fiscal year included approximately $1.6 million for non-cash charges for depreciation, amortization, and stock compensation expense.
Tegal reported a net income of $15.2 million, or $2.18 per diluted share, for the quarter, compared to a net loss of ($2.0) million, or ($0.28) per share in the comparable quarter one year ago.
Cash at the end of the fiscal fourth quarter of 2008 was $19.3 million, down $6.5 million from the same quarter one year ago.
Tegal provides process and equipment solutions to leading edge suppliers of advanced semiconductor and nanotechnology devices. Incorporating unique, patented etch and deposition technologies, Tegal’s system solutions are backed by over 35 years of advanced development and over 100 patents. Some examples of devices enabled by Tegal technology are energy efficient memories found in portable computers, cell phones, PDAs and RFID applications; megapixel imaging chips used in digital and cell phone cameras; power amplifiers for portable handsets and wireless networking gear; and MEMS devices like accelerometers for automotive airbags, microfluidic control devices for ink jet printers; and laboratory-on-a-chip medical test kits. For more information about Tegal Corporation, visit: www.tegal.com