Tegal Corporation Reports Q1 Fiscal Year 2013 Financial Results

PETALUMA, Calif.--(BUSINESS WIRE)--

Tegal Corporation TGAL today announced financial results for the First Quarter Fiscal Year 2013, which ended June 30, 2012.

Fiscal 2013 First Quarter Financial Statement Highlights

• The Company's Net Income (Loss) per share in the First Quarter of Fiscal Year 2013 was ($0.40), compared with ($0.59) in the First Quarter of the prior fiscal year and $1.32 Net Income in the Fourth Quarter of Fiscal Year 2012.
• Tegal recorded a Net Loss of ($679) in the First Quarter of Fiscal Year 2012 compared with ($994) in the First Quarter of the prior fiscal year.
• Tegal ended the First Quarter of Fiscal Year 2013 with approximately $7.2 million in cash.

Business Highlights

Subsequent to the end of Q1, FY 2013, Tegal announced the closing of a transaction to acquire CollabRx, Inc., a cloud-based genomic information company that enables physicians to take into account a tumor's genetic profile when considering targeted therapies in patient-specific cancer treatments. The Chief Executive Officers of the two constituent companies, Thomas Mika of Tegal and James Karis of CollabRx, plan to serve as co-CEOs of the combined, publicly traded company, with headquarters in San Francisco, CA. Mr. Mika remains Chairman of the combined company. In connection with the closing, Mr. Karis was also appointed to Tegal's Board of Directors. Tegal will continue to operate under its current name and ticker symbol for the time being, but plans to seek stockholder approval at its upcoming annual meeting on September 25, 2012 for an amendment to its Certificate of Incorporation, changing its corporate name to CollabRx, Inc.

Tegal subsequently announced that its CollabRx, Inc., subsidiary signed an exclusive license agreement to provide a version of its proprietary Therapy Finder™ tool to MedPage Today, Everyday Health, Inc.'s rapidly growing online site. Everyday Health reports that 96% of oncologists are served by MedPage Today, which had over 1.6 million unique visitors in June 2012, according to comScore. The CollabRx tool leverages recent dramatic increases in tumor genetic data, which in turn has resulted in a parallel increases in the development of cancer therapies that target specific genetic profiles. "Oncology Next" is a free service provided by MedPage Today to help physicians choose well for their patients. Everyday Health and MedPage Today will offer sponsorships and lead generation tools to major healthcare companies in connection with this initiative. In addition to licence fees, a portion of the revenue generated by sponsorships is to be shared with CollabRx.

“The acquisition of CollabRx immediately establishes our company in a leading position in interpretive content and data analytics for genomics-based medicine, one of today's most important digital markets,” said Thomas Mika, Tegal's Chairman, President and Co-CEO. “We are now positioned to be a cloud-based information leader in one of the world's most significant high-growth sectors. At the same time, we are providing information to enhance the medical treatment of patients throughout the world. We are extremely proud to embark on our new mission.”

Safe Harbor Statement

Except for historical information, matters discussed in this news release contain forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward-looking statements, which are based on assumptions and describe our future plans, strategies and expectations, are generally identifiable by the use of the words "anticipate," "believe," "estimate," "expect," "intend," "project" or similar expressions. These forward-looking statements are subject to risks, uncertainties and assumptions about the Company including, but not limited to industry conditions, economic conditions, acceptance of new technologies, market acceptance of the Company's products and services, the Company's exploration and execution of strategic alternatives. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements in this paragraph. For a further discussion of these risks and uncertainties, please refer to the Company's periodic filings with the Securities and Exchange Commission.

About Tegal

Since its founding in 1972, Tegal Corporation has been dedicated to the development and application of emerging technologies. For 40 years, Tegal's process and equipment know-how has been incorporated in devices fabricated by some of the world's leading semiconductor and MEMS companies, including Tegal's one-time parent, Motorola. Now entering its fifth decade, Tegal has committed its future to the CollabRx vision of "Informing Next Generation Healthcare". Please visit us on the web at www.tegal.com.

About CollabRx.

CollabRx is a recognized leader in "cloud-based" expert systems to inform health care decision-making. CollabRx uses information technology to aggregate and contextualize the world's knowledge on genomics-based medicine with specific insights from the nation's top cancer experts starting with the area of greatest need: advanced cancers in patients who have effectively exhausted the standard of care. More information may be found at www.collabrx.com.

TEGAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share data)
ASSETS
		June 30,				March 31,
		2012				2012
Current assets:
Cash and cash equivalents		$	7,191			$	7,820
Prepaid expenses and other current assets			19				56
Other assets of discontinued operations			11				418
Total current assets			7,221				8,294
Property and equipment, net			53				56
Note Receivable – CollabRx, Inc			300				-
Investment in convertible promissory note			320				312
Total assets		$	7,894			$	8,662
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	15			$	1
Common stock warrant liability			18				19
Accrued expenses and other current liabilities			200				316
Liabilities on discontinued operations			206				246
Total current liabilities			439				582
Stockholders' equity:
Preferred stock, $0.01 par value, 5,000,000 shares authorized, none issued and outstanding			-				-
Common stock, $0.01 par value, 50,000,000 shares authorized; 1,688,807 and 1,688,807 shares issued and outstanding at June 30, 2012 and March 31, 2012, respectively			17				17
Additional paid-in capital			129,106				129,052
Accumulated other comprehensive loss			(142	)			(142	)
Accumulated deficit			(121,526	)			(120,847	)
Total stockholders' equity			7,455				8,080
Total liabilities and stockholders' equity		$	7,894			$	8,662

TEGAL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
		Three Months Ended June 30,
		2012				2011
Revenue, related party		$	25			$	19
Operating expenses:
General and administrative expenses			712				873
Total operating expenses			712				873
Operating loss			(687	)			(854	)
Equity in (loss) of unconsolidated affiliate			--				(150	)
Other income (expense), net			9				12
Loss before income tax benefit			(678	)			(992	)
Income tax expense (benefit)			--				--
Net loss from continuing operations			(678	)			(992	)
Loss from discontinued operations, net of taxes			(1	)			(2	)
Net loss and comprehensive loss		$	(679	)		$	(994	)
Net (loss) income per share:
Basic and diluted		$	(0.40	)		$	(0.59	)
Weighted average shares used in per share computation:
Basic and diluted			1,689				1,689

The weighted average number of shares and the net (loss) income per share reflect a 1-for-5 reverse split effected by the Company on June 15, 2011