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Zygo’s fiscal 3Q stays in the red

Zygo Corp. said it lost $2.7 million in the fiscal third quarter as expenses from buying its new CEO’s former company and fending off an unwanted takeover chewed into sales gains for the Middlefield optical-technology equipment maker.

Zygo said it lost a net 16 cents a share in the three months ended March 31, narrower than its loss of $12.5 million, or 90 cents a share, suffered the same period last year.

Revenues totaled $25.4 million in the fiscal 2010 third quarter, up 27 percent from $20 million a year earlier.

During the period that Zygo was weighing off a $170 million unsolicited offer from rival II-VI Inc. in Pennsylvania, the company in January hired electronics entrepreneur Chris Koliopoulos as president and chief executive. II-VI withdrew its offer on March 9, three weeks after Zygo formally rejected it.

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In connection with Koliopoulos’ hiring, Zygo purchased his Arizona company, Zemetrics, incurring an extra $3.3 million in operating expenses on top of unspecified costs to evaluate the II-VI offer and its CEO search, Zygo said.

Without those expenses, Zygo said it would have posted a fiscal third-quarter profit of $762,000, or 4 cents a share.

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