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I listened in on the conference call and noticed a few key points:

1. $26.1 million in revenue for quarter 2
2. Cash on hand is up $2.2 million to $39.4 million
3. Performed well in the quarter and had significant increase in bookings
4. Faced $6 million in extra operating costs due to severance pay to old CEO and search for new one
5. Gross profits were up 42%, largely due to cutting operating costs



Zygo Corp faced some tough challenges in 2009, one of them being the search for a new leader and CEO. Chris Koliopoulos has taken on the new role and brings with him a considerable amount of experience and expertise in the field. He served as President and CEO of ADE Corporation, a publicly-traded metrology equipment supplier utilizing inter-ferometric and capacitance measurement technology, from 2002 until the company's acquisition by KLA-Tencor in 2006.

The Company operates two divisions: Metrology Solutions and Optical Systems.  Bookings were up across the board for the company in the second quarter. Metrology increased bookings and made up 66% of total revenue. The Metrology group gets significant revenue from special projects, modifications of existing product line, customized products. Optical Systems had the best quarter with 174% increase from quarter 4, it also had increased bookings.

Prospects for this company are looking much better than previous quarters, orders are coming in from established customers and old customers are beginning to place orders once again. This outlook supports the belief of a recovery in the company’s market. It appears Zygo is on the right path to increase revenues and profitability through directing its marketing efforts to its core markets.

One concern for the year ahead will be keeping operating costs down while raising the payroll, if they can do this Zygo seems to be an attractive company with a fresh outlook.

About Zygo Corp.
Zygo Corporation (ZYGO) designs, develops, and manufactures ultra-high precision measurement solutions, and top-tier optical sub-systems and components for original equipment manufacturers (OEM) and end user applications. The Company operates two divisions: Metrology Solutions and Optical Systems. Its Metrology Solutions Division manufactures products for the development and manufacturing of technology companies. Its Optical Systems Division provides product development and manufacturing services that leverage a variety of core technologies across medical, defense, semiconductor, laser fusion research, biomedical, and other industrial markets.