I will now turn the call over to Tim Stultz. Tim.Tim Stultz Thank you Clair and good afternoon everyone and thank you for joining us today. With me today for his first conference call with Nanometrics is Ron Kisling, our new Chief Financial Officer. We are quite excited about the added dimensions bring to the management team and as you will soon see, he has hit ground running. In my remarks this afternoon, I will discuss the business and financial highlights for the first quarter of 2011 and our view of the current and near term industry environment. Following that, Ron will provide a closer review of our financial performance, after which I will return with our guidance for the forthcoming quarter. In the first quarter of this year we saw a continuation of healthy investments in capital equipment by the leading semiconductor device manufacturers in all three areas of technology development, capacity expansion and new fab construction. These, combined with our leading market position in OCD, where we continue to gain market share through competitive wins, our growing position in Metrology for 3D device structures and strong operating performance have enabled us to deliver another record quarter of financial results. In addition to record revenues of $62 million and ten year operating profit margin of 27.5%, Q1 marked the seventh straight quarter of positive cash flow and gross margins exceeding 50%. This consistency of solid performance across the cycle reflects the strength of our business model, our ability to compete, our success in shifting fixed costs to a largely variable cost structure and solid operational execution. We also believe our above average gross margins reflect the competitiveness of our products and the efficiency of our operations and we know that consistent profitability and strong positive cash flows enable us to make the investments in our business necessary to remain competitive and deliver above average performance to our shareholders.
Turning to the key drivers of our business, although we have a diverse product line serving multiple markets including semiconductor, high brightness LED’s, solar photovoltaics and data storage, our core competencies and technology base is tightly centered upon high speed, non-destructive optical measurements used for process control Metrology.Our products are used to directly address the challenges brought on by increasing device complexity and the growth in the number of process steps resulting from our customer’s never ending quest for improved performance at lower manufacturing costs. And whereas shrinks may be the ultimate driver for performance, through put and yield have the greatest impact on manufacturing costs and profitability for our customers. By making more measurements and using our products throughout the manufacturing process, our customers are able to increase the productivity of their more expensive process tools, reduce yield destroying process variation and increase their ROI for their overall capital equipment investments. Of particular importance and relevance in Nanometrics is the growing demand for three dimension Metrology measurements; both the device as well as the packaging level. As I mentioned earlier, leading edge, solid state devices are fabricated with a growing number of steps and material layers with smaller features and increasingly complex physical shapes. OCD stands alone in its ability to quickly, precisely and non-destructively measure complex three dimensional device structures. Because of this, growth in the OCD market has exceeded the growth of any other process control technology both through and intrinsic expansion of applications as well as the displacement of otherwise conventional technologies such as CD SIMS. Read the rest of this transcript for free on seekingalpha.com