Bookings of $48.8 million for fiscal 2012 second quarter increased 5% over fiscal 2011 second quarter bookings of $46.4 and 14% higher than fiscal 2012 first quarter bookings of $42.9 million. Prior year quarter bookings included $7.1 million backlog recorded as bookings in connection with the acquisition during that quarter. If the backlog associated with the acquisition were excluded, bookings would be 24% higher than bookings in the prior year quarter. Bookings for the Metrology Solutions Division were 54% of the total; Optical Systems Division bookings were 46%. Backlog increased to $69.7 million at December 31, 2011, compared with $59.0 million at December 31, 2010, and $60.9 million at September 30, 2011.

Revenues of $84 million for the first six months of fiscal 2012 were $16.8 million, or 25%, higher than first half revenues for fiscal 2011. Net earnings attributable to Zygo of $12.6 million exceeded prior year first half net earnings of $8.5 million by 49%. First half fiscal 2012 diluted EPS of $0.68 per share was 42% higher than EPS attributable to Zygo of $0.48 per diluted share for the first half of fiscal 2011. If the one-time gain of $0.11 were excluded from the prior year first half results, diluted EPS for fiscal 2012 first half would be 84% higher than prior year EPS.

Commenting on the second quarter results, John P. Jordan, Vice President, Chief Financial Officer and Treasurer of Zygo Corporation, said, “Our ongoing process improvements from initiatives in lean manufacturing methods once again sustained the highest gross margin levels in over ten years. Gross margin is at the same high level as the previous quarter, despite slightly lower revenues, reflecting product mix variation. Operating margin increased for the seventh consecutive quarter to the highest level in over twelve years. Additionally, robust operations results and disciplined working capital management helped generate over $24 million of cash from operations for the first half of fiscal 2012, resulting in cash and marketable securities at December 31, 2011 of more than $83 million.”

Dr. Chris Koliopoulos, President and Chief Executive Officer of Zygo Corporation, commented, “We are very pleased with our fiscal 2012 Q2 results. Earnings per diluted share of $0.33 increased 57% over the EPS of Q2 2011, excluding the gain recorded on the acquisition of the Richmond assets. Our organization’s focus on execution and continued expansion in our markets is driving healthy bookings and revenues. The CNSE/SEMATECH and ophthalmic device orders are examples of the opportunities available to our Optics Systems Division due to our leading capabilities in optics design and manufacturing. Demand for metrology instruments is healthy, bolstered by the several new products introduced during the past year. While customer timing of deliveries affected recognition of revenues during the quarter, we expect second half revenues to benefit significantly from our healthy backlog, which is the highest in over three years. Continued expansion of our market presence, together with recently introduced products and our drive for innovation should continue to fuel demand for Zygo products and help sustain bookings and revenue growth during the rest of fiscal 2012 and into the future.”

A reconciliation between GAAP (Accounting Principles Generally Accepted in the United States of America) operating results and non-GAAP operating results is provided following the financial statements that are part of this release.

Zygo Corporation is a worldwide supplier of optical metrology instruments, precision optics and electro-optical design and manufacturing services serving customers in the semiconductor capital equipment, bio-medical, scientific and industrial markets.

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