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14 August 2009


Tegal’s revenue falls further, but orders and losses rebound

For its fiscal first-quarter 2010 (to end June 2009), Tegal Corp of Petaluma, CA, USA, which makes plasma etch and deposition equipment for fabricating MEMS, power ICs and optoelectronic devices, has reported revenues of $1.1m, down 42% on $1.9m last quarter and down on $4.7m a year ago. “Revenues during these past few quarters have been at their lowest level in many years, symptomatic of the condition of capital spending in our industry,” says president & CEO Thomas Mika.

Gross margin has fallen further, from 49.2% a year ago and 26.3% last quarter to 8.6%, due mainly to unabsorbed overhead. However, though still up on $0.8m a year ago, net loss has been cut from $3.2m last quarter to $2.6m. During the quarter, cash reserves fell by $2m to $10.5m.

“We are beginning to see a light at the end of the tunnel, with an increase in both our systems backlog [which rose from $1.5m to $5.4m during the quarter] and an uptick in spares and service revenues,” says Mika. “With additional cuts in expense levels [from $3.3m a year ago to $3.1m], and an increase in shipments, we expect to reduce our quarterly cash burn. Doing so will allow us ample time to consider our best strategic alternatives moving forward [which Tegal has previously said include the potential sale of the company as a going concern], which we continue to do with the assistance of Cowen and Company LLC," he adds.

See related items:

Tegal declares going concern qualification

Tegal’s quarterly revenue down 74% year-on-year

Tegal given cure period to comply with NASDAQ listing requirements

Tegal doubles revenue and halves loss, boosted by AMMS acquisition

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