Generating a fraction of the revenue from a year ago, semiconductor equipment supplier, Tegal Corporation posted a financial year net loss of US$7.9 million and has a cash balance of US$12.5 million. Despite cost cutting and due to the continued spending constraints of customers, Tegal said that it had retained the services of Cowen and Company to pursue ‘strategic alternatives' for the company, which include selling the company and its assets.
“Doing what is right for our shareholders and employees means making pragmatic decisions based on prevailing market conditions,” said Thomas Mika, Chairman, President and Chief Executive Officer of Tegal. “The simple fact is that we cannot indefinitely withstand the impact of a protracted industry downturn and a deep global recession. It makes good business sense, therefore, to take early and decisive action to explore strategic alternatives, including the potential sale of the Company as a going concern. We believe that our considerable intellectual property assets and our healthy share of select high-growth markets strengthen our position, while our cash balance allows time for careful consideration of the best possible options.”
Tegal reported fourth quarter revenues of only US$1.9 million, down from US$7.4 million in prior year period. Revenues for fiscal 2009 were US$13.1 million, compared to $32.9 million for the prior fiscal year.