3. Rudolph Technologies designs, develops and manufactures high-performance process control defect inspection, metrology, and process control software solutions used by semiconductor device manufacturers. During 2010, the company derived 65.7% of its revenue from Asia, 11.1% from Europe and the remaining from the US.

Revenue for 2010 fourth quarter came in at $54 million, increasing 87% from $28.9 million registered in the fourth quarter of the prior year. Gross margin widened to 54% from 40.4% in the earlier year quarter. Similarly, operating margin stood at a positive 20.3% compared to a negative 22% in the year-ago quarter. Subsequently, the company reported net income of $9.6 million or 30 cents per share compared to a loss of $6.1 million or 20 cents per share.

During 2010, total revenue surged 148.3% to $195.3 million from $78.7 million a year earlier, driven by higher revenue from systems and software, specifically inspection and metrology. Overall, revenue growth is attributable to improving economic conditions leading to increased capital spending in the semiconductor industry. Net income stood at $27 million or 86 cents per share as against a loss of $29.6 million or 96 cents per share in 2009.

The company has cash and cash equivalents of $71.1 million compared to $57.8 million a year ago, a current ratio of 6.96 and no debt.

Of the five analysts covering the stock, 80% recommend a buy, while the remaining rate a hold. There are no sell ratings on the stock. On average, analysts estimate 22% upside to $13.33 in value from current levels. The stock gained 21.4% during the past one year and is currently trading at a P/E of 11.6

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