The area of metal oxynitrides is poorly explored, and understanding of the fundamental mechanism that explains structural, mechanical, electrical, and optical properties is still insufficient. Therefore, the purpose of the present investigation is to analyze structural, electrical, and optical properties of ZrNxOy films deposited by reactive cathodic arc evaporation. Depending on the oxygen flow, cubic ZrN:O, monoclinic ZrO2:N, and tetragonal ZrO2:N phases films were prepared. The sheet resistance and the optical transmittance very much depend on the oxygen flow. Optical transparent ZrNxOy films with transmittance of 86% at 650 rim, the sheet resistance 1.1.10(3) Omega/sq, and the figure of merit 2.10(-4) Omega(-1) are deposited with the 60 seem oxygen flow. (C) 2007 Elsevier B.V. All rights reserved.