Onto Innovation (ONTO) 8-K Results of Operations and Financial Condition

Exhibit 99.1

Nanometrics Incorporated 1550 Buckeye Drive Milpitas, CA 95035 Tel: 408.545.6000 Fax: 408.232.5910 www.nanometrics.com

News Release

Investor Relations Contact: Claire McAdams Headgate Partners LLC 530.274.0551, 530.274.0531 fax email: claire@headgatepartners.com Company Contact: Dan Choy Nanometrics Incorporated 408.545.6000, 408.232.5910 fax email: dchoy@nanometrics.com

Nanometrics Reports Financial Results for the Third Quarter of 2007

Third Consecutive Quarter of Revenue Growth and Gross Margin Improvement

GAAP EPS $0.11 per Share

MILPITAS, California, October 30, 2007 — Nanometrics Incorporated (Nasdaq: NANO), a leading supplier of advanced metrology equipment to the semiconductor industry, today announced its financial results for the third quarter ended September 29, 2007.

Revenues for the third quarter were a record $38.6 million, an increase of 3.5% compared to second quarter 2007 revenues of $37.3 million and an increase of 33% over revenues of $29.1 million for the third quarter of 2006. Net income for the third quarter of 2007 was $2.0 million, or $0.11 per diluted share. This compares to a net loss of $130,000, or $0.01 per share, for the second quarter of 2007 and a net loss of $6.6 million, or $0.40 per share, for the third quarter of 2006.

Third quarter 2007 operating income of $1.7 million includes non-cash charges of $1.3 million for amortization of acquired intangible assets and $0.9 million for stock-based compensation expenses. The results for the third quarter also include a $2.1 million restructuring charge related to the closing of the company’s Milpitas machine shop and plating facility, and a $2.1 million gain on asset sales resulting from the sale of real estate holdings in Japan and Milpitas as well as the sale of other non-strategic assets.

“I am pleased to be announcing Nanometrics’ first profitable quarter in more than two years,” commented Tim Stultz, president and chief executive officer of Nanometrics. “The team has done a remarkable job in turning around our performance, evidenced by our third straight quarter of revenue growth, improved gross margins and reduced operating expenses. After just two months at the helm, I am happy to be reporting that the turnaround is behind us and the Accent merger integration is essentially complete. Going forward, we will continue to focus on profitability, cash flow and predictability, with the added objectives of improving competitiveness and customer satisfaction.”

Conference Call Details

A conference call to discuss the third quarter 2007 results will be held later today at 5:00 p.m. Eastern Daylight Time (2:00 p.m. PDT). To participate in the conference call, the dial-in numbers are 866-510-0705 for domestic callers and 617-597-5363 for international callers. The passcode is 70668631. 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 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, which remain subject to adjustment in connection with the preparation of Nanometrics’ audited financial statements.

NANOMETRICS INCORPORATED

CONSOLIDATED BALANCE SHEETS

(In thousands except share amounts)

(Unaudited)

	September 29, 2007			December 30, 2006
ASSETS
Current assets:
Cash and cash equivalents	$	14,874		$	7,957
Short-term investments		—			—
Accounts receivable, net of allowances of $468 and $841		34,157			24,888
Inventories		33,149			43,601
Prepaid expenses and other		4,841			3,639
Total current assets		87,021			80,085
Property, plant and equipment, net		44,230			43,294
Goodwill		52,885			55,217
Intangible assets, net		23,085			27,583
Other assets		1,719			1,985
Total assets	$	208,940		$	208,164
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	13,066		$	9,155
Accounts payable to related party		—			181
Accrued payroll and related expenses		5,123			5,227
Deferred revenue and product margin		1,840			6,239
Other current liabilities		9,724			8,381
Income taxes payable		447			695
Current portion of debt obligations		145			486
Total current liabilities		30,345			30,364
Deferred income taxes		1,582			1,848
Debt obligations and other long term liabilities		715			1,321
Total liabilities		32,642			33,533
Stockholders' equity
Common stock, $0.001 par value; 47,000,000 shares authorized; and; 18,577,546 and 18,141,589, respectively, outstanding		19			18
Additional paid-in capital		185,727			182,096
Accumulated deficit		(12,642	)		(9,909	)
Accumulated other comprehensive income		3,194			2,426
Total stockholders’ equity		176,298			174,631
Total liabilities and stockholders' equity	$	208,940		$	208,164

NANOMETRICS INCORPORATED

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

	Three Months Ended						Nine Months Ended
	September 29, 2007			September 30, 2006			September 29, 2007			September 30, 2006
Net revenues:
Products	$	33,306		$	24,772		$	98,564		$	60,865
Service		5,341			4,319			14,533			10,592
Total net revenues		38,647			29,091			113,097			71,457
Costs of revenues:
Cost of products		16,773			12,935			50,628			31,405
Cost of service		4,791			4,780			15,459			11,340
Total costs of net revenues		21,564			17,715			66,087			42,745
Gross profit		17,083			11,376			47,010			28,712
Operating expenses:
Research and development		4,661			4,208			13,986			9,798
Selling		4,603			5,079			14,636			12,034
General and administrative		4,783			5,447			16,538			14,303
Amortization of intangible assets		1,285			2,434			4,497			2,673
Restructuring charge		2,128			—			2,128			—
Gain on sale of assets		(2,100	)		—			(2,100	)		—
Total operating expenses		15,360			17,168			49,685			38,808
Income (loss) from operations		1,723			(5,792	)		(2,675	)		(10,096	)
Other income (expense):
Interest income		69			156			121			787
Interest expense		(56	)		(13	)		(141	)		(44	)
Other, net		382			(648	)		(40	)		(375	)
Total other income (expense), net		395			(505	)		(60	)		368
Income (loss) before provision (benefit) for income taxes		2,118			(6,297	)		(2,735	)		(9,728	)
Provision (benefit) for income taxes		110			268			(2	)		316
Net income (loss)	$	2,008		$	(6,565	)	$	(2,733	)	$	(10,044	)
Net income (loss) per share:
Basic	$	0.11		$	(0.40	)	$	(0.15	)	$	(0.71	)
Diluted	$	0.11		$	(0.40	)	$	(0.15	)	$	(0.71	)
Shares used in per share computation:
Basic		18,278			16,573			17,931			14,226
Diluted		18,676			16,573			17,931			14,226

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