Nanometrics Announces a Profitable Second Quarter of 2005

Nanometrics Incorporated (NASDAQ: NANO) today reported financial results for the second quarter of 2005.

Total revenues for the second quarter of 2005 were $18.8 million, an increase of 16% compared to the second quarter of 2004. The increase in revenues during the second quarter of 2005 compared to the same period in 2004 resulted from increased demand for Nanometrics’ semiconductor process control metrology equipment, particularly in Taiwan. Net income in the second quarter of 2005 was $4.7 million, or $0.35 per diluted share, compared to net income of $1.3 million, or $0.10 per diluted share, for the same period last year. The second quarter results include receipt of a merger termination fee in the amount of $8.3 million in connection with the termination of Nanometrics’ merger agreement with August Technology Corporation. The second quarter results also include a $2.2 million charge for an asset impairment of certain assets in Nanometrics’ Japanese operations.

For the six months ended July 2, 2005, total net revenues were $42.3 million, an increase of 42% from the same period in 2004. Net income for the first six months of 2005 was $7.3 million, or $0.55 per diluted share, compared to net income of $90,000, or $0.01 per diluted share, for the same period last year. Nanometrics’ financial position continues to be strong with cash and short-term investments totaling $45.2 million.

Q2 2005 consolidated balance sheet and income statement [pdf]

About Nanometrics
Nanometrics Incorporated is a leading supplier of advanced integrated and standalone metrology equipment used in the semiconductor industry. The Company’s corporate office is located at 1550 Buckeye Drive, Milpitas, CA 95035, with sales and service offices worldwide. Nanometrics is traded on NASDAQ under the symbol NANO. Nanometrics’ website is http://www.nanometrics.com. An earnings conference call will be held on July 28, 2005 at 8:00 A.M. Pacific Time. To participate in the earnings conference call, the dial-in numbers are 800-591-6923 in the United States or 617-614-4907 for international calls. The passcode is 70223098.

Contact:
Paul Nolan
Nanometrics
408.435.9600