Fourth Quarter Financial Results

Fourth quarter results slightly exceeded revised guidance issued December 23, 2008.

Sales were $125.2 million, down 21%from $157.4 million in the third quarter of 2008 and down 32% from $184.1 million in the fourth quarter of 2007.

Fourth quarter net loss was $6.3 million, or $0.13 per basic share, compared to net income of $6.8 million, or $0.14 per diluted share, in the third quarter of 2008 and $15.2 million, or $0.27 per diluted share, in the fourth quarter of 2007. The fourth quarter net loss included special charges of $6.3 million net related to impairment of intangible assets, excess and obsolete inventory, amortization of acquired intangibles, and discrete tax items.

Non-GAAP net earnings, which exclude special charges, were $0.1 million, or breakeven, compared to $8.9 million, or $0.18 per diluted share, in the third quarter of 2008 and $18.6 million, or $0.33 per diluted share, in the fourth quarter of 2007.

Full Year Results

Leo Berlinghieri, chief executive officer and president, said, We saw a sharp drop in sales to OEMs as spending for semiconductor capital equipment declined rapidly in the fourth quarter, and we continued to take actions to reduce our costs.

In a challenging year for semiconductor capital equipment, we achieved another year of growth in non-semiconductor markets. We continued to focus on key markets such as solar, where we had record sales in 2008. We also achieved record sales in our service business. Our cash position remained strong.

As we enter 2009, global economic uncertainty is prolonging a steep downturn in semiconductor capital equipment spending, and there is greater uncertainty about the business outlook in non-semiconductor markets as well. We estimate that first quarter sales could range from $75 to $95 million. At these volumes, the net loss could range from $0.46 to $0.31 per basic share on approximately 49.8 million shares outstanding, and the non-GAAP net loss could range from $0.40 to $0.25 per share. We are working to drive down our costs to align more closely with expected lower business levels, while continuing to focus on diversifying our business.