PORTLAND, OR -- Electro Scientific Industries announced fiscal 2018 first quarter revenue jumoed 52% year-over-year to  $72.7 million.

GAAP net income for the period ended Jul. 1 swung to $2.9 million, compared to a net loss of $100,000 a year ago. Non-GAAP net income was $13 million, versus $3 million in fiscal 2017.

Michael Burger, CEO of ESI, said, “We started this fiscal year with another strong quarter, delivering year over year growth in orders, revenues, backlog, and earnings. Sales grew by more than 50% compared to the same quarter last year. Further, I am pleased with the progress we have made on our restructuring program, which is nearly complete. With healthy market conditions and a solid product portfolio, we expect strong second quarter revenue and profit growth year over year. Orders in the first quarter more than doubled from a year ago to $76.6 million, driven by flex drilling and good demand in service and component test.”

On a GAAP basis gross margin was 36.3%, compared to 43.7% in the first quarter of last year, impacted by $7.2 million of restructuring charges primarily related to impairment of other assets and inventory taken in the most recent quarter. Operating expenses were $23 million, up from $20.5 million last year, with the increase driven by variable expenses, the addition of Visicon and $1.2 million of restructuring costs. Operating income was $3.5 million, compared to $300,000 in last year's first quarter.

Non-GAAP gross margin was 46.7%, flat compared to the first quarter of last year. Non-GAAP operating expenses were $20.3 million, above a year ago due to variable expenses and the addition of Visicon. Non-GAAP operating income was $13.6 million, or 18.7% of sales, compared to $3.3 million, or 7% of sales, last year.

Based on current market and backlog conditions, ESI projects fiscal second quarter revenues of $63 million to $70 million.

"We are encouraged by the near-term strength of the business and the progress we are making in our restructuring efforts. The broad market environment is healthier than it was a year ago. That said, our business remains subject to seasonal fluctuations, and as such we expect quarterly business levels to take a step down from the first half, but with our lower fixed expense base providing earnings leverage compared to last year," Burger concluded.

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