PETALUMA -- Tegal Corporation (NASDAQ: TGAL) reported a 55 percent increase in revenue for the second fiscal quarter and a narrower loss.

The developer of specialized production solutions of the semiconductor industry reported revenues of $3.1 million, an increase of 55 percent from $2 million in the second quarter of last year. Net loss was $700,000, or $0.20 per share, down from a net loss of $2.5 million, or $0.34 per share in the same period in 2008. Loss for the prior quarter was $3 million.

"While our industry remains under pressure, we were pleased to report sequential increasing revenues, an improved backlog and a reduction of both our operating loss and cash burn," said Thomas Mike, Tegal president and CEO.

Highlights for the quarter included the launch of ProNova, a third-generation, high-density inductively coupled plasma reactor for Tegal's wafer processing products. The first order was delivered to a Tegal customer in Europe.

Tegal employs 50 in its Petaluma facility.