Press Releases

Feb 20,2008

Nanometrics Reports Fourth Quarter and Full Year Financial Results for 2007

Nanometrics Incorporated (Nasdaq: NANO), a leading supplier of advanced metrology equipment to the semiconductor industry, today announced its financial results for the fourth quarter and full year ended December 29, 2007.

Revenues for the fourth quarter were $33.2 million, representing a 33% increase from fourth quarter 2006 revenues of $24.9 million and a 14% decrease from third quarter 2007 revenues of $38.6 million. Net loss for the fourth quarter of 2007 was $1.3 million, or $0.07 per share. This compares to a net loss of $12.1 million, or $0.69 per share, for the fourth quarter of 2006 and a net profit of $2.0 million, or $0.11 per share, for the third quarter of 2007.

The fourth quarter 2007 operating loss of $1.3 million includes non-cash charges of $1.3 million for amortization of acquired intangible assets, $1.0 million for stock-based compensation expenses and $1.0 million for depreciation.

For the fiscal year ended December 29, 2007, Nanometrics’ revenues were a record $146.3 million, an increase of 52% over 2006 revenues of $96.4 million. Net loss for fiscal 2007 was $4.0 million or $0.22 per share, compared to a net loss of $22.1 million or $1.47 per share for fiscal 2006. Non-cash charges for the full year totaled $5.8 million for amortization of acquired intangible assets and other acquisition-related charges, $3.8 million for stock-based compensation and $3.5 million for depreciation.

“2007 was a turnaround year for Nanometrics. Our team successfully responded to a number of major initiatives and significantly improved the overall performance of the company,” commented Tim Stultz, president and chief executive officer of Nanometrics. “In addition to completing the integration of two acquired companies, consolidating our global manufacturing facilities and rationalizing our overall cost structure, we grew revenues by more than 50% and increased gross margin by five percentage points. As we head into 2008, we are confident that we are a more competitive, nimble and operationally efficient company than at any time in Nanometrics’ recent history.”

View Q4 2007 consolidated balance sheets and statement of operations [pdf]

Conference Call Details
A conference call to discuss the fourth quarter and full year 2007 results will be held later today at 5:00 p.m. Eastern Standard Time (2:00 p.m. PST). To participate in the conference call, the dial-in numbers are 800-299-7635 for domestic callers and 617-786-2901 for international callers. The passcode is 14356342. A live and recorded webcast will be made available on the investor page of the Nanometrics website at www.nanometrics.com.

About Nanometrics
Nanometrics is a leader in the design, manufacture and marketing of high-performance process control metrology systems used in semiconductor manufacturing. Nanometrics standalone and integrated metrology systems measure various thin film properties, critical dimensions, overlay control and optical, electrical and material properties, including the structural composition of silicon and compound semiconductor devices, during various steps of the manufacturing process. These systems enable semiconductor manufacturers to improve yields, increase productivity and lower their manufacturing costs. The company maintains its headquarters in Milpitas, California, with sales and service offices worldwide. Nanometrics is traded on the NASDAQ Global Market under the symbol NANO. Nanometrics’ website is http://www.nanometrics.com.

Forward Looking Statements
This press release contains forward-looking statements including, but not limited to, statements regarding Nanometrics’ expected results for its most recently completed fiscal quarter and fiscal year, which remain subject to adjustment in connection with the preparation of Nanometrics’ audited financial statements and its annual report on Form 10-K as well as statements made by our CEO concerning Nanometrics’ status heading into 2008. These statements relate to future events and involve known and unknown risks, uncertainties and other factors that may cause Nanometrics’ actual financial results, levels of activity, performance or achievements to differ materially from those expressed or implied by the forward-looking statements. Forward-looking statements are only predictions and actual events or results may differ materially. Nanometrics cannot provide any assurance that its future results will meet expectations. For additional information and considerations regarding the risks faced by Nanometrics, see its annual report on Form 10-K for the year ended December 30, 2006 as filed with the Securities and Exchange Commission, as well as other periodic reports filed with the SEC from time to time including its quarterly reports on Form 10-Q. Although Nanometrics believes that the expectations reflected in the forward-looking statements are reasonable, Nanometrics cannot guarantee future results, levels of activity, performance or achievements. In addition, neither Nanometrics nor any other person assumes responsibility for the accuracy or completeness of these forward-looking statements. Nanometrics disclaims any obligation to update information contained in any forward-looking statement.



Contact
Investor Relations:
Claire McAdams
Headgate Partners LLC
530-265-9899 tel; 530-265-9699 fax
claire@headgatepartners.com

Company Contact:
Gary Schaefer, CFO
408-545-6000 tel; 408-232-5910 fax
gschaefer@nanometrics.com