(RTTNews) - Semiconductor manufacturing equipment maker Nanometrics Inc. (NANO) erased its losses in the third-quarter, amid positive developments in the chip sector.

The company cited multi-system orders and technology upgrades from worldwide semiconductor companies in both the memory and logic sectors for its quarterly performance. Some key metrics improved more significantly on a sequential basis.

Earnings for the quarter were $1.6 million, or 8 cents per share, a reversal from year-ago loss of $60.4 million, or $3.25 per share.

Revenues were $25.8 million, up 12% from $23.1 million in the year-ago period and up 78% from $14.5 million in the previous quarter.

Gross margin increased to 54%, from 44.1% in the year-ago period, and from 41.4% in the prior quarter, due to higher sales volume, improved factory absorption and an increased contribution of upgrades to service revenue, the company noted.

Operating expenses for the quarter declined sharply to $12.4 million from $70.2 million in the comparable period last year. The company, which just completed its restructuring, said the operating expenses for the year-ago period included $56 million in asset impairment and restructuring charges.

Looking ahead, Nanometrics said it sees further growth in revenues, albeit at a slower rate than what was achieved in the last two quarters.

The company said it continues to see strong sales of its thin-film and OCD systems, increasing traction with its Caliper overlay product and Lynx platform, and further penetration into high-growth segments like high-brightness LEDs. With its second-quarter acquisition of the Unifire product line, the company is also excited about the emerging market opportunity for metrology in wafer-scale packaging.

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