Electro Scientific Industries, Inc. , a leading provider of world-class laser-based microengineering systems, today announced results for its fiscal 2010 third quarter, ended January 2, 2010, which consisted of fourteen weeks. Financial measures are provided on both a GAAP and non-GAAP basis, which excludes the impact of purchase accounting, equity compensation, restructuring costs, and non-recurring items.

Third quarter revenues were $39.0 million, up 41% from the second quarter and up 52% from the same quarter one year ago. On a GAAP basis, net loss was $2.4 million or $0.09 per share, compared to a net loss of $6.1 million or $0.22 per share in the prior quarter. Excluding the impact of purchase accounting, equity compensation, and non-recurring items, non-GAAP net loss was $0.9 million or $0.03 per share, compared to a non-GAAP net loss of $3.9 million or $0.14 per share in the second quarter.

"All three of our operating groups showed strong sequential revenue growth. This top line growth led to sequential improvements in gross margin, operating income, and earnings per share," stated Nick Konidaris, ESI president and CEO.

Orders for the third quarter were $61.2 million, up from $29.3 million in the prior quarter and $21.2 million of new business orders in the prior year.

"Our markets continue to improve, with strength across many of our product lines," continued Konidaris. "Our orders more than doubled sequentially, led by a large micro-machining order for our new model ML5900, but also reflecting improved demand in our passive components, LED scribing, and LCD repair businesses."

In addition, we introduced and received customer orders for a new version of our industry-leading MLCC tester, the model 3500. The 3500 increases throughput by 50% and handles a wider range of component sizes and capacitance values.

Finally, during the quarter we purchased the intellectual property and assets of Applied Photonics. We believe this acquisition, combined with our technology, will enable us to expand our presence in the fast-growing market for glass micromachining.

Third quarter operating expenses on a non-GAAP basis were up sequentially due to the 14-week quarter, expiration of some temporary cost reduction measures, and higher engineering project spending. Konidaris added, "We continue to focus on improving operational efficiency while still investing in the many growth opportunities we see before us. We are pleased that we are approaching breakeven, despite weakness in our memory repair business, which we expect to begin recovering in the second half of calendar 2010."