Nanometrics (NANO) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $26.65 million, or $ 1.04 a share in the quarter, against a net loss of $1.81 million, or $0.07 a share in the last year period.

Revenue during the quarter surged 38.60 percent to $59.16 million from $42.68 million in the previous year period. Gross margin for the quarter expanded 333 basis points over the previous year period to 52.07 percent. Operating margin for the quarter period stood at positive 15.15 percent as compared to a negative 2.44 percent for the previous year period.

Operating income for the quarter was $8.96 million, compared with an operating loss of $1.04 million in the previous year period.

However, the adjusted operating income for the quarter stood at $9.11 million compared to $0.77 million in the prior year period. At the same time, adjusted operating margin improved 1358 basis points in the quarter to 15.39 percent from 1.81 percent in the last year period.

"Nanometrics' results for 2016 reflect the significant market share gains we have achieved over the past few years in combination with a relentless focus on operational efficiencies, and mark a financial performance inflection point for the company," commented Dr. Timothy J. Stultz, president and chief executive officer. "Our year-on-year revenue growth of 18% significantly outperformed overall industry spending, with a balanced revenue profile and meaningful contributions by every leading semiconductor manufacturer and each device type: 3D-NAND, DRAM and Foundry logic. Over the past three years, we have increased revenues by over 50% while keeping operating expenses relatively flat, resulting in incremental operating margins in the 60% to 65% range, well above our target business model. Improvements in our gross margin profile are enabling us to step up our investments in R&D for the development of entirely new technology platforms and applications that can expand our served markets and contribute to future revenue growth ��" while still delivering solid bottom line performance.

For the first-quarter, Nanometrics expects revenue to be in the range of $56 million to $61 million. The company projects diluted earnings per share to be in the range of $0.19 to $0.26. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.19 to $0.26.

The company has spent $42.13 million cash to meet investing activities during the year as against cash inflow of $1.95 million in the last year.

Cash flow from financing activities was $5.27 million for the year, up 2,297.27 percent or $5.05 million, when compared with the last year.

Cash and cash equivalents stood at $47.06 million as on Dec. 31, 2016, up 23.35 percent or $8.91 million from $38.15 million on Dec. 26, 2015.

Working capital increases sharply
Nanometrics has recorded an increase in the working capital over the last year. It stood at $174.35 million as at Dec. 31, 2016, up 31.19 percent or $41.45 million from $132.90 million on Dec. 26, 2015. Current ratio was at 5.15 as on Dec. 31, 2016, up from 3.94 on Dec. 26, 2015.