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13 February 2009


Tegal doubles revenue and halves loss, boosted by AMMS acquisition

For its fiscal third-quarter 2009 (to end-December 2008), Tegal Corp of Petaluma, CA, USA, which makes plasma etch and deposition systems for producing MEMS, power semiconductor and optoelectronic devices, has reported revenue of $4.5m, down 56% on $10.1m a year but up 123% on last quarter’s $2m as systems revenue more than doubled.

“Additional shipments of DRIE (deep reactive ion etch) systems this quarter, so soon after the completion of our acquisition of the DRIE product line from Alcatel Micro Machining Systems (AMMS), is further evidence that our strategy to achieve a leading position among MEMS producers is working,” says president & CEO Thomas Mika. “In addition, our PVD products are increasingly recognized by MEMS producers for their critical role in the development of advanced imaging sensors and other MEMS devices, a market that is still growing despite the overall weakness in the global economy,” he adds.

“Despite completing the integration of the AMMS acquisition during the quarter, we substantially reduced operating expenses and our cash burn rate compared to last quarter,” continues Mika.

Operating expenses have been cut by 20% sequentially to $2.8m (following a 10% cut in headcount from 76, announced last quarter). Quarterly cash burn has been halved from $2m to $1m.

Net loss has been almost halved from last quarter’s $2.5m to $1.4m (compares to net income of $2.8m a year ago). Nevertheless, cash reserves fell from $14m to $12.7m.

During the quarter, order backlog rose from $1.1m to $2.8m. However, this is largely due to the AMMS acquisition. So, reflecting the continued weakness in the global economy, Tegal is continuing to streamline operations and has initiated another 10% cut in headcount. “We believe these are the steps that are necessary in the current economic climate and will continue to conserve cash, enabling us to protect our balance sheet and improve our competitive position as the economy turns around,” Mika says.

See related items:

Tegal’s revenues fall 57% quarter-to-quarter

Tegal completes acquisition of AMMS’ DRIE and PECVD product lines

Tegal’s sales hit by project postponements and cancellations

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