----

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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-Q**

**[X]                QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d)**

**OF      THE      SECURITIES EXCHANGE ACT OF 1934**

**For      the quarterly period ended June 30, 2007**

**[   ]                TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15 (d)**

**OF      THE SECURITIES EXCHANGE ACT OF 1934**

**Commission      File Number: 0-26824**

**TEGAL      CORPORATION**

***(Exact      Name of Registrant as Specified in Its Charter)***

| **Delaware**                                         | **68-0370244**                                            |
|------------------------------------------------------|-----------------------------------------------------------|
| ***(State                or other jurisdiction of*** | ***(I.R.S.                Employer Identification No.)*** |
| ***incorporation                or organization)***  |                                                      |

**2201      South McDowell Blvd.**

**Petaluma,      California 94954**

*(Address      of Principal Executive Offices)*

**Telephone      Number (707) 763-5600**

*(Registrant’s      Telephone Number, Including Area Code)*

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**TEGAL      CORPORATION AND SUBSIDIARIES**

**INDEX**

|                       |                                                                                                                                                    | **Page** |
|----------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
|                       | **PART                  I. FINANCIAL INFORMATION**                                                                                                 |     |
| Item                  1.   | Condensed                  Consolidated Financial Statements (Unaudited)                                                                                |     |
|                       | Condensed                  Consolidated Balance Sheets as of June 30, 2007 and March 31,                  2007                                          | 3        |
|                       | Condensed                  Consolidated Statements of Operations for the three months                  ended  June 30, 2007 and June 30, 2006 | 4        |
|                       | Condensed                  Consolidated Statements of Cash Flows as of June 30, 2007 and June                  30,                  2006                | 5        |
|                       |                                                                                                                                                    |     |   |
|                       | Notes                  to Condensed Consolidated Financial Statements                                                                                   | 6        |
| Item                  2.   | Management’s                  Discussion and Analysis of Financial Condition and Results of                  Operations                           | 12       |
| Item                  3.   | Quantitative                  and Qualitative Disclosures About Market Risk                                                                             | 18       |
| Item                  4.   | Controls                  and Procedures                                                                                                                | 18       |
|                       |  **PART                  II. OTHER INFORMATION**                                                                                              |     |
| Item                  1.A. | Risk                  Factors                                                                                                                           | 19       |
| Item                  6.   | Exhibits                                                                                                                                                | 25       |
| Signatures                 |                                                                                                                                                    | 24       |

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**PART      I — FINANCIAL INFORMATION**

**Item      1. *Condensed Consolidated Financial Statements***

**TEGAL      CORPORATION AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED BALANCE SHEETS**

**(Unaudited)**

**(In      thousands, except share data)**

|                                                                                                                                                                                                                                                  |   | **June                30** |     |   | **March                31** |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------|----------|--------|-----------------------------|--------|
|                                                                                                                                                                                                                                                  |   | **2007**                   |     |   | **2007**                    |   |
|                                                                                                                                                                                                                                                  |   |
| **ASSETS**                                                                                                                                                                                                                                            |   |                       |     |   |                        |   |
| Current                assets:                                                                                                                                                                                                                        |   |                       |     |   |                        |   |
| Cash                and cash equivalents                                                                                                                                                                                                              |   | $                          | 23,349   |   |                        | $      | 25,776 |   |
| Accounts                receivable, net of allowances for sales returns and doubtful accounts                of                $318 and $413 at June 30, 2007 and March 31, 2007,                respectively                                         |   |                       | 6,883    |   |                        |   | 6,634 |   |
| Inventories,                net                                                                                                                                                                                                                       |   |                       | 8,640    |   |                        |   | 5,567 |   |
| Prepaid                expenses and other current assets                                                                                                                                                                                              |   |                       | 1,350    |   |                        |   | 991 |   |
| Total                current assets                                                                                                                                                                                                                   |   |                       | 40,222   |   |                        |   | 38,968 |   |
| Property                and equipment, net                                                                                                                                                                                                            |   |                       | 1,312    |   |                        |   | 1,351 |   |
| Intangible                assets, net                                                                                                                                                                                                                 |   |                       | 1,087    |   |                        |   | 1,161 |   |
| Other                assets                                                                                                                                                                                                                           |   |                       | 108      |   |                        |   | 176 |   |
| Total                assets                                                                                                                                                                                                                           |   | $                          | 42,729   |   |                        | $      | 41,656 |   |
| **LIABILITIES                AND STOCKHOLDERS’ EQUITY**                                                                                                                                                                                         |   |                       |     |   |                        |   |   |   |
| Current                liabilities:                                                                                                                                                                                                                   |   |                       |     |   |                        |   |   |   |
| Notes                payable and bank lines of credit                                                                                                                                                                                                 |   | $                          | —  |   |                        | $      | 10 |   |
| Accounts                payable                                                                                                                                                                                                                       |   |                       | 3,705    |   |                        |   | 1,974 |   |
| Accrued                product warranty                                                                                                                                                                                                               |   |                       | 1,191    |   |                        |   | 1,101 |   |
| Deferred                revenue                                                                                                                                                                                                                       |   |                       | 968      |   |                        |   | 1,064 |   |
| Litigation                suspense                                                                                                                                                                                                                    |   |                       | 19,500   |   |                        |   | 19,500 |   |
| Accrued                expenses and other current liabilities                                                                                                                                                                                         |   |                       | 3,244    |   |                        |   | 3,590 |   |
| Total                current liabilities                                                                                                                                                                                                              |   |                       | 28,608   |   |                        |   | 27,239 |   |
| Total                long term liabilities                                                                                                                                                                                                            |   |                       | —  |   |                        |   | — |   |
| Total                liabilities                                                                                                                                                                                                                      |   |                       | 28,608   |   |                        |   | 27,239 |   |
| Commitments                and contingencies (Note 7)                                                                                                                                                                                                 |   |                       |     |   |                        |   |   |   |
| Stockholders’                equity:                                                                                                                                                                                                            |   |                       |     |   |                        |   |   |   |
| Preferred                stock; $0.01 par value; 5,000,000 shares authorized; none issued                and                outstanding                                                                                                               |   |                       | —  |   |                        |   | — |   |
| Common                stock; $0.01 par value; 200,000,000 shares authorized; 7,113,372                and                7,106,867 shares                issued and outstanding at June 30, 2007 and March 31, 2007,                respectively |   |                       | 71       |   |                        |   | 71 |   |
| Additional                paid-in capital                                                                                                                                                                                                             |   |                       | 122,871  |   |                        |   | 122,473 |   |
| Accumulated                other comprehensive income                                                                                                                                                                                                 |   |                       | 184      |   |                        |   | 240 |   |
| Accumulated                deficit                                                                                                                                                                                                                    |   |                       | (109,005 | )      |                        |   | (108,367 | ) |
| Total                stockholders’ equity                                                                                                                                                                                                       |   |                       | 14,121   |   |                        |   | 14,417 |   |
| Total                liabilities and stockholders’ equity                                                                                                                                                                                       |   | $                          | 42,729   |   |                        | $      | 41,656 |   |
|                                                                                                                                                                                                                                                  |   |                       |     |   |                        |   |   |   |

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**TEGAL      CORPORATION AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED STATEMENTS OF OPERATIONS**

**(Unaudited)**

**(In      thousands, except per share data)**

|                                                 |   | **Three                Months Ended****June                30,** |   |
|------------------------------------------------------|--------|------------------------------------------------------------------|--------|
|                                                 |   | **2007**                                                         |   |   | **2006** |   |
|                                                 |   |                                                             |   |   |   |   |
| Revenue                                              |   | $                                                                | 4,598  |   |   | $ | 6,576 |   |
| Cost                of sales                         |   |                                                             | 2,977  |   |   |   | 4,078 |   |
| Gross                profit                          |   |                                                             | 1,621  |   |   |   | 2,498 |   |
| Operating                expenses:                   |   |                                                             |   |   |   |   |   |   |
| Research                and development expenses     |   |                                                             | 778    |   |   |   | 996 |   |
| Sales                and marketing expenses          |   |                                                             | 1,006  |   |   |   | 1,044 |   |
| General                and administrative expenses   |   |                                                             | 1,203  |   |   |   | 2,302 |   |
| Total                operating expenses              |   |                                                             | 2,987  |   |   |   | 4,342 |   |
| Operating                loss                        |   |                                                             | (1,366 | ) |   |   | (1,844 | ) |
| Other                income (expense), net           |   |                                                             | 728    |   |   |   | 42 |   |
| Net                loss                              |   | $                                                                | (638   | ) |   | $ | (1,802 | ) |
| Net                loss per share, basic and diluted |   | $                                                                | (0.09  | ) |   | $ | (0.26 | ) |
| Shares                used in per share computation: |   |                                                             |   |   |   |   |   |   |
| Basic                and diluted                     |   |                                                             | 7,110  |   |   |   | 7,023 |   |

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**TEGAL      CORPORATION AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(Unaudited)**

**(In      thousands)**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | **Three                Months Ended****June                30,** |    |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | **2007**                                                         |    |   | **2006** |   |
| Cash                flows from operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                             |    |   |   |   |
| Net                loss                                                                                                                                                                   |   | $                                                                | (638    | ) |   | $ | (1,802 | ) |
| Adjustments                to reconcile net loss to net cash provided by (used in) operating                activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                             |    |   |   |   |   |   |
| Depreciation                and                amortization                                                                                                                                                                            |   |                                                             | 215     |   |   |   | 232 |   |
| Stock                compensation expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                             | 380     |   |   |   | 230 |   |
| Stock                issued under stock purchase plan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                             | 8       |   |   |   | — |   |
| Provision                for recovery of doubtful accounts and sales return                allowances                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                             | (95     | ) |   |   | 152 |   |
| Loss                on disposal of property and                equipment                                                                                                                                                               |   |                                                             | — |   |   |   | 23 |   |
| Fair                value of warrants and options issued for services rendered                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                             | 9       |   |   |   | 26 |   |
| Changes                in operating assets and liabilities, net of acquisitions:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                             |    |   |   |   |   |   |
| Accounts                receivables                                                                                                                                                                                                                   |   |                                                             | (159    | ) |   |   | (1,017 | ) |
| Inventories                                                                                                                                                                                                                                           |   |                                                             | (3,137  | ) |   |   | 235 |   |
| Prepaid                expenses and other                assets                                                                                                                                                                                       |   |                                                             | (302    | ) |   |   | (13 | ) |
| Accounts                payable                                                                                                                                                                                                                       |   |                                                             | 1,736   |   |   |   | 211 |   |
| Accrued                expenses and other current                liabilities                                                                                                                                                                          |   |                                                             | (360    | ) |   |   | 225 |   |
| Accrued                product                warranty                                                                                                                                                                                                |   |                                                             | 114     |   |   |   | 112 |   |
| Deferred                revenue                                                                                                                                                                                                                       |   |                                                             | (96     | ) |   |   | 87 |   |
| Net                cash provided by (used in) operating                activities                                                                                                                                                                     |   | $                                                                | (2,325  | ) |   | $ | (1,299 | ) |
| Cash                flows used in investing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                             |    |   |   |   |   |   |
| Purchases                of property and                equipment                                                                                                                                                  |   |                                                             | (102    | ) |   |   | (20 | ) |
| Net                cash used in investing                activities:                                                                                                                                                                                  |   |                                                             | (102    | ) |   |   | (20 | ) |
| Cash                flows provided by financing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                             |    |   |   |   |   |   |
| Net                proceeds from issuance of common                stock                                                                                                                                           |   |                                                             | — |   |   |   | 4 |   |
| Borrowings                under notes payable and bank lines of                credit                                                                                                                              |   |                                                             | (10     | ) |   |   | 94 |   |
| Payments                on capital lease                financing                                                                                                                                                  |   |                                                             | — |   |   |   | (2 | ) |
| Net                cash (used in) provided by financing                activities                                                                                                                                                                     |   |                                                             | (10     | ) |   |   | 96 |   |
| Effect                of exchange rates on cash and cash                equivalents                                                                                                       |   |                                                             | 10      |   |   |   | 76 |   |
| Net                increase (decrease) in cash and cash                equivalents                                                                                                        |   |                                                             | (2,427  | ) |   |   | (1,147 | ) |
| Cash                and cash equivalents at beginning of                period                                                                                                            |   |                                                             | 25,776  |   |   |   | 13,787 |   |
| Cash                and cash equivalents at end of                period                                                                                                                  |   | $                                                                | 23,349  |   |   | $ | 12,640 |   |

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**TEGAL      CORPORATION AND SUBSIDIARIES**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

**(All      amounts in thousands, except share data)**

**1.  Basis      of Presentation:**

**.  **

**Concentration      of Credit Risk**

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**Stock      Based Compensation**

|                                   |   | **Three                Months Ended June 30,** |   |
|----------------------------------------|--------|------------------------------------------------|--------|
|                                   |   | **2007**                                       |   |   | **2006** |   |
| Expected                life (years):  |   |                                           |   |   |   |   |
| Stock                options           |   |                                           | 3.22   |   |   |   | 4.0 |   |
| ESPP                                   |   |                                           | 0.5    |   |   |   | 0.5 |   |
| Volatility:                            |   |                                           |   |   |   |   |   |   |
| Stock                options           |   |                                           | 82.40  | % |   |   | 82.40 | % |
| ESPP                                   |   |                                           | 82.40  | % |   |   | 82.40 | % |
| Risk-free                interest rate |   |                                           | 5.25   | % |   |   | 5.25 | % |
| Dividend                yield          |   |                                           | 0.00   | % |   |   | 0.00 | % |
|                                   |   |                                           |   |   |   |   |   |   |

***Stock      Options & Warrants***

***        ***

|                                              |   |       |      |   |         |   | **Weighted**                       |          |
|---------------------------------------------------|--------|------------|-----------|--------|--------------|--------|------------------------------------|---------------|
|                                              |   |       |      |   | **Weighted** |   | **Average**                        |          |
|                                              |   |       |      |   | **Average**  |   | **Remaining**                      | **Aggregate** |
|                                              |   |       |      |   | **Exercise** |   | **Contractual**                    | **Intrinsic** |
|                                              |   | **Shares** |      |   | **Price**    |   | **Term                (in Years)** | **Value**     |
| Beginning                outstanding              |   |       | 2,051,746 |   |         | $      | 11.36                              |          |   |   |
| Granted                                           |   |       |      |   |         |   |                               |          |   |   |
| Price                = market value               |   |       | —   |   |         | $      | 0.00                               |          |   |   |
| Total                                             |   |       | —   |   |         | $      | 0.00                               |          |   |   |
| Exercised                                         |   |       | —   |   |         | $      | 0.00                               |          |   |   |
| Cancelled                                         |   |       |      |   |         |   |                               |          |   |   |
| Forfeited                                         |   |       | (793      | )      |         | $      | 12.36                              |          |   |   |
| Expired                                           |   |       | (14,457   | )      |         | $      | 8.53                               |          |   |   |
| Total                                             |   |       | (15,250   | )      |         | $      | 8.73                               |          |   |   |
|                                              |   |       |      |   |         |   |                               |          |   |   |
| Ending                outstanding                 |   |       | 2,036,496 |   |         | $      | 11.39                              |          | 4.48 | $698 |
| Ending                vested and expected to vest |   |       | 1,967,897 |   |         | $      | 11.61                              |          | 4.31 | $584 |
| Ending                exercisable                 |   |       | 1,744,802 |   |         | $      | 12.48                              |          | 3.69 | $207 |

----

|                                                      |   |   |                                                              |   |   |                                                       |   |   | **Weighted**                                                         |   |   |                                                              |   |   |                                                                             |   |   |         |   |
|-----------------------------------------------------------|--------|--------|-------------------------------------------------------------------|--------|--------|------------------------------------------------------------|--------|--------|----------------------------------------------------------------------|--------|--------|-------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------|--------|--------|--------------|--------|
|                                                      |   |   |                                                              |   |   | **Number**                                                 |   |   | **Average**                                                          |   |   |                                                              |   |   | **Number**                                                                       |   |   | **Weighted** |   |
|                                                      |   |   | **Outstanding**                                                   |   |   | **Remaining**                                              |   |   |                                                                 |   |   | **Exercisable**                                                   |   |   | **Average**                                                                      |   |
| **Range                of**** Exercise Prices** |   |   | **As                of****June                30,**** 2007** |   |   | **Contractual****Term**** (in                years)** |   |   | **Weighted                Average****Exercise                Price** |   |   | **As                of****June                30,**** 2007** |   |   | **Exercise                Price****As                of June 30,**** 2007** |   |
| $                                                         | 4.20   |   |                                                              | $      | 4.20   |                                                       |   |   | 16,344                                                               |   |   |                                                              | 1.19   |   |                                                                             | $      | 4.20   |         |   |   | 16,344 |   |   | $ | 4.20 |   |
|                                                      | 4.60   |   |                                                              |   | 4.60   |                                                       |   |   | 304,653                                                              |   |   |                                                              | 9.18   |   |                                                                             |   | 4.60   |         |   |   | 50,000 |   |   |   | 4.60 |   |
|                                                      | 4.68   |   |                                                              |   | 7.08   |                                                       |   |   | 222,902                                                              |   |   |                                                              | 5.27   |   |                                                                             |   | 6.16   |         |   |   | 188,108 |   |   |   | 6.14 |   |
|                                                      | 7.20   |   |                                                              |   | 8.28   |                                                       |   |   | 62,079                                                               |   |   |                                                              | 7.60   |   |                                                                             |   | 8.18   |         |   |   | 62,079 |   |   |   | 8.18 |   |
|                                                      | 12.00  |   |                                                              |   | 12.00  |                                                       |   |   | 1,284,990                                                            |   |   |                                                              | 3.18   |   |                                                                             |   | 12.00  |         |   |   | 1,284,990 |   |   |   | 12.00 |   |
|                                                      | 12.36  |   |                                                              |   | 73.50  |                                                       |   |   | 136,869                                                              |   |   |                                                              | 3.90   |   |                                                                             |   | 26.19  |         |   |   | 134,622 |   |   |   | 26.38 |   |
|                                                      | 92.26  |   |                                                              |   | 92.26  |                                                       |   |   | 416                                                                  |   |   |                                                              | 2.69   |   |                                                                             |   | 92.26  |         |   |   | 416 |   |   |   | 92.26 |   |
|                                                      | 92.52  |   |                                                              |   | 92.52  |                                                       |   |   | 4,165                                                                |   |   |                                                              | 2.63   |   |                                                                             |   | 92.52  |         |   |   | 4,165 |   |   |   | 92.52 |   |
|                                                      | 99.00  |   |                                                              |   | 99.00  |                                                       |   |   | 2,498                                                                |   |   |                                                              | 2.74   |   |                                                                             |   | 99.00  |         |   |   | 2,498 |   |   |   | 99.00 |   |
|                                                      | 105.00 |   |                                                              |   | 105.00 |                                                       |   |   | 1,580                                                                |   |   |                                                              | 1.55   |   |                                                                             |   | 105.00 |         |   |   | 1,580 |   |   |   | 105.00 |   |
|                                                      |   |   |                                                              |   |   |                                                       |   |   |                                                                 |   |   |                                                              |   |   |                                                                             |   |   |         |   |   |   |   |   |   |   |   |
| $                                                         | 4.20   |   |                                                              | $      | 105.00 |                                                       |   |   | 2,036,496                                                            |   |   |                                                              | 4.47   |   |                                                                             | $      | 11.39  |         |   |   | 1,744,802 |   |   | $ | 12.48 |   |

**Restricted      Stock Units**

|                                   |   | **Number****of****Shares** |    |   | **Weighted                Average****Grant                Date****Fair                Value** |   |
|----------------------------------------|--------|----------------------------|---------|--------|-----------------------------------------------------------------------------------------------|--------|
| Balance,                March 31, 2007 |   |                       | 485,683 |   |                                                                                          | $      | 4.73 |   |
| Granted                                |   |                       | — |   |                                                                                          |   | — |   |
| Vested                                 |   |                       | — |   |                                                                                          |   | — |   |
| Forfeited                              |   |                       | — |   |                                                                                          |   | — |   |
| Distributed                            |   |                       | (5,000  | )      |                                                                                          |   | 4.75 |   |
| Balance,                June 30,2007   |   |                       | 480,683 |   |                                                                                          | $      | 6.45 |   |

**Unvested      restricted stock at June 30, 2007**

**2. Inventories:**

----

|                                                                                                                                                                                                                                                                                                                                                                                                                            |   | **June                30****2007** |   |   | **March                31****2007** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|--------|--------|-------------------------------------|--------|
| Raw                materials                                                                                        |   | $                                  | 3,932  |   |                                | $      | 1,315 |   |
| Work                in                progress                                                                      |   |                               | 3,427  |   |                                |   | 2,928 |   |
| Finished                goods and                spares                                                             |   |                               | 1,281  |   |                                |   | 1,324 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $                                  | 8,640  |   |                                | $      | 5,567 |   |

**3.  Product      Warranty:**

|                                                                                |   | **Warranty                Activity for the****Three                Months Ended****June                30,** |   |
|-------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------|--------|
|                                                                                |   | **2007**                                                                                                     |   |   | **2006** |   |
| Balance                at the beginning of the period                               |   | $                                                                                                            | 1,101  |   |   | $ | 506 |   |
| Additional                warranty accruals for warranties issued during the period |   |                                                                                                         | 247    |   |   |   | 322 |   |
| Less                settlements made during the period                              |   |                                                                                                         | (157   | ) |   |   | (160 | ) |
| Balance                at the end of the period                                     |   | $                                                                                                            | 1,191  |   |   | $ | 668 |   |

**4.  Net      Loss Per Common Share:**

|                                                                                                                                                                                                                     |   | **Three                Months Ended****June                30,** |    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------|---------|
|                                                                                                                                                                                                                     |   | **2007**                                                         |    |   | **2006** |   |
| Net                loss applicable to common stockholders                                                                                                                                                                |   | $                                                                | (638    | ) |   | $ | (1,802 | ) |
| Basic                and diluted:                                                                                                                                                                                        |   |                                                             |    |   |   |   |   |   |
| Weighted-average                common shares outstanding .............................                                                                                                  |   |                                                             | 7,110   |   |   |   | 7,023 |   |
| Less                weighted-average common shares subject to repurchase............                                                                                                                     |   |                                                             | — |   |   |   | — |   |
| Weighted-average                common shares used in computing basic and diluted net loss per common                share ......................................... |   |                                                             | 7,110   |   |   |   | 7,023 |   |
| Basic                and diluted net loss per common share .....................................                                                                             |   | $                                                                | (0.09   | ) |   | $ | (0.26 | ) |

----

**5.  Stock-Based      Transactions:**

***Issuance      of Warrants to Consultants***

**6. Lines      of Credit:**

**7. Legal      Proceedings**

* 5, “Accounting for Contingencies.”*

**8. Geographical      Information**

----

|                                                                                                                                                                                                                                                                                                                                                |   | **Revenue                for the****Three                Months Ended****June                30,** |    |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                |   | **2007**                                                                                           |    |   | **2006** |   |
| Sales                to customers located in:                                                                                                                                                                                                                                                                                                       |   |                                                                                               |    |   |   |   |
| United                States                                                                        |   | $                                                                                                  | 729     |   |   | $ | 2,544 |   |
| Asia,                excluding                Japan                                                 |   |                                                                                               | 353     |   |   |   | 2,679 |   |
| Japan                                                                                               |   |                                                                                               | 5       |   |   |   | 524 |   |
| Germany                                                                                             |   |                                                                                               | 574     |   |   |   | 707 |   |
| Italy                                                                                               |   |                                                                                               | — |   |   |   | 54 |   |
| Europe,                excluding Germany and Italy                                                                                                                                                                                                                                                                                                  |   |                                                                                               | 2,937   |   |   |   | 68 |   |
| Total                sales                                                           |   | $                                                                                                  | 4,598   |   |   | $ | 6,576 |   |

|                                                                                               |   | **Long-lived****Assets                as of****June                30,** |    |
|----------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------|---------|
|                                                                                               |   | **2007**                                                                 |    |   | **2006** |   |
| Long-lived                assets at period-end:                                                    |   |                                                                     |    |   |   |   |
|   United                States                                                           |   | $                                                                        | 2,388   |   |   | $ | 4,336 |   |
|   Europe                                                                                 |   |                                                                     | 11      |   |   |   | 14 |   |
|   Japan                                                                                  |   |                                                                     | — |   |   |   | 10 |   |
|   Asia,                excluding Japan                                                   |   |                                                                     | — |   |   |   | 2 |   |
|           Total                long-lived assets |   | $                                                                        | 2,399   |   |   | $ | 4,362 |   |

**9.   Recent      Accounting Pronouncements**

*How Taxes Collected from Customers and Remitted to      Government Authorities Should be Presented in the Income Statement (That Is,      Gross versus Net Presentation)*

----

**Item      2.   *Management’s Discussion and Analysis of Financial      Condition and Results of Operations**– (Amounts in      000’s)***

**Special      Note Regarding Forward Looking Statements**

**Semiconductor      Industry Background**

**Business      Strategy**

----

*Maintaining      our Technology Leadership Position in New Materials Etch*

*Strengthening      our Position in Deposition Process Equipment –*

*Introducing      a New Product into Established Equipment Market -*

*Maintaining      our Service Leadership Position*

**Critical      Accounting Policies**

----

**Accounting      for Stock-Based Compensation**

**Revenue      Recognition**

**Accounts      Receivable – Allowance for Sales Returns and Doubtful      Accounts**

----

**Inventories**

**Impairment      of Long-Lived Assets**

**Warranty      Obligations**

**Deferred      Taxes**

----

**Results      of Operations**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | **Three                Months Ended****June                30,** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | **2007**                                                         |   |   | **2006** |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                             |   |   |   |   |
| Revenue                                                                                                                              |   |                                                             | 100.0  | % |   |   | 100.0 | % |
| Cost                of                sales                                                                                          |   |                                                             | 64.7   | % |   |   | 62.0 | % |
| Gross                profit                                                                                                                         |   |                                                             | 35.3   | % |   |   | 38.0 | % |
| Operating                expenses:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                             |   |   |   |   |   |   |
| Research                and                development                                                                                              |   |                                                             | 16.9   | % |   |   | 15.1 | % |
| Sales                and                marketing                                                                                                   |   |                                                             | 21.9   | % |   |   | 15.9 | % |
| General                and                administrative                                                                                            |   |                                                             | 26.2   | % |   |   | 35.0 | % |
| Total                operating                expenses                                                                                                        |   |                                                             | 65.0   | % |   |   | 66.0 | % |
| Other                income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                             | 15.8   | % |   |   | 0.6 | % |
| Net                loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                             | (13.9  | )% |   |   | (27.4 | )% |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | **Three                Months****Ended****June                30** |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | **2007**                                                           |   |   | **2006** |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                               |   |   |   |   |
| Revenue                                                                                                          |   | $                                                                  | 4,598  |   |   | $ | 6,576 |   |
| Cost                of                sales                                                                      |   |                                                               | 2,977  |   |   |   | 4,078 |   |
| Gross                profit                                                                                                |   |                                                               | 1,621  |   |   |   | 2,498 |   |
| Operating                expenses:                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                               |   |   |   |   |   |   |
| Research                and                development                                                                     |   |                                                               | 778    |   |   |   | 996 |   |
| Sales                and                marketing                                                                          |   |                                                               | 1,006  |   |   |   | 1,044 |   |
| General                and                administrative                                                                   |   |                                                               | 1,203  |   |   |   | 2,302 |   |
| Total                operating                expenses                                                                                    |   |                                                               | 2,987  |   |   |   | 4,342 |   |
| Other                income                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                               | 728    |   |   |   | 42 |   |
| Net                loss                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $                                                                  | (638   | ) |   | $ | (1,802 | ) |

***Revenue***

* *

----

***Gross      profit***

* *

***Research      and Development***

* *

***Sales      and Marketing***

* *

***General      and Administrative***

***Other      income***

* *

***Contractual      Obligation***

| Contractual                obligations:                   |   | **Total** |   |   | **Less                than****1                Year** |   |   | **1-3                Years** |   |   | **3-5                Years** |   |   | **After****5                Years** |   |
|-----------------------------------------------------------|--------|-----------|--------|--------|-------------------------------------------------------|--------|--------|------------------------------|--------|--------|------------------------------|--------|--------|-------------------------------------|--------|
| Non-cancelable                operating lease obligations |   |      | 1,111  |   |                                                  |   | 636    |                         |   |   | 430                          |   |   |                                | 45     |   |   |   | — |   |
| Total                contractual cash obligations         |   | $         | 1,111  |   |                                                  | $      | 636    |                         |   | $      | 430                          |   |   | $                                   | 45     |   |   | $ | — |   |

----

***Liquidity      and Capital Resources***

**.  **

**Item      3.  *Quantitative and Qualitative Disclosures About Market      Risk***

**Item      4.   *Controls and Procedures***

|   | (a) | ***Evaluation                of Disclosure Controls and Procedures****. -*Under the                supervision and with the participation of our management, our Chief                Executive Officer and Chief Financial Officer have evaluated the                effectiveness of our disclosure controls and procedures, as such                term is                defined under Rule 13a-15(e) promulgated under the Securities                Exchange Act of 1934, as amended. Based upon that evaluation, our                Chief                Executive Officer and our Chief Financial Officer concluded that                the our                disclosure controls and procedures were effective as of the end of                the                period covered by this report. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | ***Changes                in Internal Controls over financial reporting***. - As required                by Rule 13a-15(d), our management, including our Chief Executive                Officer and Chief Financial Officer, also conducted an evaluation                of our                internal control over financial reporting to determine whether any                changes                occurred during the period covered by this report that have materially                affected, or are reasonably likely to materially affect, our internal                control over financial reporting. Based on that evaluation, there                has been                no such change during the period covered by this                report. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | ***Limitations                of the effectiveness of internal control.****-**** ***A control system,                no matter how well conceived and operated, can provide only reasonable,                not absolute, assurance that the objectives of the internal control                system                are met. Because of the inherent limitations of any internal control                system, no evaluation of controls can provide absolute assurance                that all                control issues, if any, within a company have been detected.                Notwithstanding these limitations, our disclosure controls and procedures                are designed to provide reasonable assurance of achieving their                objectives. Our Chief Executive Officer and Chief Financial Officer                have                concluded that our disclosure controls and procedures are, in fact,                effective at the “reasonable assurance”level. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**PART      II — OTHER INFORMATION**

**Item      1.A.  *Risk Factors***

*We      wish to caution you that there are risks and uncertainties that could affect      our      business. These risks and uncertainties include, but are not limited to, the      risks described below and elsewhere in this report, particularly in“Forward-Looking Statements.” The following is not intended to be a complete      discussion of all potential risks or uncertainties, as it is not possible to      predict or identify all risk factors.*

**The      semiconductor industry is cyclical and may experience periodic downturns that      may negatively affect customer demand for our products and result in losses      such      as those experienced in the past.**

**Our      competitors have greater financial resources and greater name recognition than      we do and therefore may compete more successfully in the semiconductor capital      equipment industry than we can.**

**Our      customers are concentrated and therefore the loss of a significant customer      may      harm our business.**

----

**Our      potential customers may not adopt our products because of their significant      cost      or because our potential customers are already using a competitor’s      tool.**

**We      depend on sales of our advanced products to customers that may not fully adopt      our product for production use.**

**We      have incurred operating losses and may not be profitable in the future; our      plans to maintain and increase liquidity may not be      successful.**

**Our      quarterly operating results may continue to fluctuate.**

| ·   | our                timing of new systems and technology announcements and releases and                ability to transition between product                versions; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | seasonal                fluctuations in sales; |
|--------------------|------------------------------------------------|

| ·   | changes                in the mix of our revenues represented by our various products and                customers; |
|--------------------|---------------------------------------------------------------------------------------------------------------------|

| ·   | adverse                changes in the level of economic activity in the United States or                other                major economies in which we do                business; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | foreign                currency exchange rate                fluctuations; |
|--------------------|----------------------------------------------------------------------------|

| ·   | expenses                related to, and the financial impact of, possible acquisitions of                other                businesses; and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | changes                in the timing of product orders due to unexpected delays in the                introduction of our customers’ products, due to lifecycles of our                customers’ products ending earlier than expected or due to market                acceptance of our customers’products. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Some      of our sales cycles are lengthy, exposing us to the risks of inventory      obsolescence and fluctuations in operating results.**

**Because      technology changes rapidly, we may not be able to introduce our products in      a      timely manner.**

**Our      financial performance may adversely affect the morale and performance of our      personnel and our ability to hire new personnel.**

**We      may not be able to protect our intellectual property or obtain licenses for      third parties’ intellectual property and therefore we may be exposed to      liability for infringement or the risk that our operations may be adversely      affected.**

**We      are exposed to additional risks associated with international sales and      operations.**

----

**Evolving      regulation of corporate governance and public disclosure may result in      additional expenses and continuing uncertainty.**

**Our      stock price is volatile and could result in a material decline in the value      of      your investment in Tegal.**

**The      exercise of outstanding warrants, options and other rights to obtain additional      shares will dilute the value of our shares of common stock and could cause      the      price of our shares of common stock to decline.**

----

**Potential      disruption of our supply of materials required to build our systems could have      a      negative effect on our operations and damage our customer      relationships.**

**Any      failure by us to comply with environmental regulations imposed on us could      subject us to future liabilities.**

**Item      6.   *Exhibits***

| 31.1 | Certifications                of the Chief Executive Officer pursuant to Section 302 of the                Sarbanes-Oxley Act of 2002.                                                           |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.2 | Certifications                of the Chief Financial Officer pursuant to Section 302 of the                Sarbanes-Oxley Act of 2002.                                                           |
| 32   | Certifications                of the Chief Executive Officer and Chief Financial Officer pursuant                to                Section 906 of the Sarbanes-Oxley Act of                2002. |

----

**SIGNATURES**

|                                                     | TEGAL                CORPORATION(Registrant)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|----------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                     | /s/  CHRISTINE                HERGENROTHER                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|    Dated:                August 14 , 2007 |                                                                                                                                                                        Christine              Hergenrother*                                                                                                          Chief Financial                Officer* |

----

**EXHIBIT      31.1**

**CERTIFICATION      OF THE CHIEF EXECUTIVE OFFICER**

**PURSUANT      TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

| 1. | I                have reviewed this quarterly report on Form 10-Q of Tegal                Corporation; |
|----|--------------------------------------------------------------------------------------------------------|

| 2. | Based                on my knowledge, this report does not contain any untrue statement                of a                material fact or omit to state a material fact necessary to make                the                statements made, in light of the circumstances under which such statements                were made, not misleading with respect to the period covered by this                report; |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Based                on my knowledge, the financial statements, and other financial information                included in this report, fairly present in all material respects                the                financial condition, results of operations and cash flows of the                registrant as of, and for, the periods presented in this                report; |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | The                registrant’s other certifying officer and I are responsible for                establishing and maintaining disclosure controls and procedures (as                defined in Exchange Act Rules 13a-15(e) and 15d-14(e)) for the registrant                and we have: |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | designed                such disclosure controls and procedures, or caused such disclosure                controls and procedures to be designed under our supervision, to                ensure                that material information relating to the registrant, including its                consolidated subsidiaries, is made known to us by others within those                entities, particularly during the period in which this report is                being                prepared; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | evaluated                the effectiveness of the registrant’s disclosure controls and procedures                and presented in this report our conclusions about the effectiveness                of                the disclosure controls and procedures, as of the end of the period                covered by this report based on such                evaluation; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c)                disclosed in this report any change in the registrant’s internal control                over financial reporting that occurred during the registrant’s most recent                fiscal quarter (the registrant’s fourth fiscal quarter in the case of an                annual report) that has materially affected, or is reasonably likely                to                materially affect, the registrant’s internal control over financial                reporting; and |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | The                registrant’s other certifying officer and I have disclosed, based on our                most recent evaluation of internal control over financial reporting,                to                the registrant’s auditors and the audit committee of the registrant’s                board of directors (or persons performing the equivalent                function): |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | all                significant deficiencies and material weaknesses in the design or                operation of internal control over financial reporting which are                reasonably likely to adversely affect the registrant’s ability to record,                process, summarize and report financial information;                and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | any                fraud, whether or not material, that involves management or other                employees who have a significant role in the registrant’s internal                controls over financial reporting. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**EXHIBIT      31.2**

**CERTIFICATION      OF THE CHIEF FINANCIAL OFFICER**

**PURSUANT      TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

| 1. | I                have reviewed this quarterly report on Form 10-Q of Tegal                Corporation; |
|----|--------------------------------------------------------------------------------------------------------|

| 2. | Based                on my knowledge, this report does not contain any untrue statement                of a                material fact or omit to state a material fact necessary to make                the                statements made, in light of the circumstances under which such statements                were made, not misleading with respect to the period covered by this                report; |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Based                on my knowledge, the financial statements, and other financial information                included in this report, fairly present in all material respects                the                financial condition, results of operations and cash flows of the                registrant as of, and for, the periods presented in this                report; |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | The                registrant’s other certifying officer and I are responsible for                establishing and maintaining disclosure controls and procedures (as                defined in Exchange Act Rules 13a-15(e) and 15d-14(e)) for the registrant                and we have: |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | designed                such disclosure controls and procedures, or caused such disclosure                controls and procedures to be designed under our supervision, to                ensure                that material information relating to the registrant, including its                consolidated subsidiaries, is made known to us by others within those                entities, particularly during the period in which this  report                is being prepared; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | evaluated                the effectiveness of the registrant’s disclosure controls and procedures                and presented in this report our conclusions about the effectiveness                of                the disclosure controls and procedures, as of the end of the period                covered by this report based on such                evaluation; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c)                disclosed in this report any change in the registrant’s internal control                over financial reporting that occurred during the registrant’s most recent                fiscal quarter (the registrant’s fourth fiscal quarter in the case of an                annual report) that has materially affected, or is reasonably likely                to                materially affect, the registrant’s internal control over financial                reporting; and |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | The                registrant’s other certifying officer and I have disclosed, based on our                most recent evaluation of internal control over financial reporting,                to                the registrant’s auditors and the audit committee of the registrant’s                board of directors (or persons performing the equivalent                function): |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | all                significant deficiencies and material weaknesses in the design or                operation of internal control over financial reporting which are                reasonably likely to adversely affect the registrant’s ability to record,                process, summarize and report financial information;                and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | any                fraud, whether or not material, that involves management or other                employees who have a significant role in the registrant’s internal                controls over financial reporting. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**EXHIBIT      32**

**CERTIFICATION      PURSUANT TO**

**SECTION      906 OF THE SARBANES-OXLEY ACT OF 2002**

**(18      U.S.C. SECTION 1350)**

**CERTIFICATION      PURSUANT TO**

**SECTION      906 OF THE SARBANES-OXLEY ACT OF 2002**

**(18      U.S.C. SECTION 1350)**

----