10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

___________________________

FORM 10-Q

__________________________

(Mark One)
x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 30, 2013

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from          to          

Commission File No. 000-27965

___________________________

RUDOLPH TECHNOLOGIES, INC.

(Exact name of registrant as specified in its charter)

___________________________

Delaware	22-3531208
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

One Rudolph Road, PO Box 1000, Flanders, New Jersey 07836

(Address of principal executive offices, including zip code)

Registrant's telephone number, including area code: (973) 691-1300

___________________________

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes [X]   No [_]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [X]   No [_]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See definition of “large accelerated filer”, “accelerated filer”, and “smaller reporting company” in Rule 12b-2 of the Securities Exchange Act.    

Large accelerated filer [  ]	Accelerated filer [ X ]	Non-accelerated filer [  ]	Smaller reporting company [  ]
		(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes [_] No [X]

The number of outstanding shares of the Registrant’s Common Stock on July 22, 2013 was 32,840,207.

TABLE OF CONTENTS

Item No.  Page

PART I    FINANCIAL INFORMATION

Item 1.	Financial Statements (unaudited)	1
	Condensed Consolidated Balance Sheets at June 30, 2013 and December 31, 2012	1
	Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2013 and 2012	2
	Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2013 and 2012	3
	Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2013 and 2012	4
	Notes to Condensed Consolidated Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	22
Item 4.	Controls and Procedures	23

PART II    OTHER INFORMATION

Item 1.	Legal Proceedings	23
Item 1A.	Risk Factors	24
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	24
Item 3.	Defaults Upon Senior Securities	24
Item 4.	Mine Safety Disclosures	24
Item 5.	Other Information	24
Item 6.	Exhibits	24

PART I FINANCIAL INFORMATION

Item 1. Financial Statements

RUDOLPH TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

	June 30, 2013			December 31, 2012
	(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	66,792		$	104,253
Marketable securities	91,033			64,963
Accounts receivable, less allowance of $654 as of June 30, 2013 and $606 as of December 31, 2012	61,065			57,113
Inventories	72,056			63,422
Prepaid expenses and other current assets	5,781			4,301
Total current assets	296,727			294,052
Property, plant and equipment, net	12,484			11,909
Goodwill	19,298			11,371
Identifiable intangible assets, net	12,651			12,358
Other assets	34,810			34,894
Total assets	$	375,970		$	364,584
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	19,198		$	15,696
Other current liabilities	18,625			21,352
Total current liabilities	37,823			37,048
Convertible senior notes	50,347			49,010
Other non-current liabilities	13,952			8,037
Total liabilities	102,122			94,095
Commitments and contingencies
Stockholders’ equity:
Common stock	32			32
Additional paid-in capital	413,170			409,974
Accumulated other comprehensive loss	(2,074		)	(1,085		)
Accumulated deficit	(137,280		)	(138,432		)
Total stockholders’ equity	273,848			270,489
Total liabilities and stockholders’ equity	$	375,970		$	364,584

The accompanying notes are an integral part of these financial statements.

1

RUDOLPH TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
Revenues	$	46,059		$	56,326		$	87,709		$	102,035
Cost of revenues	22,544			26,104			42,320			48,048
Gross profit	23,515			30,222			45,389			53,987
Operating expenses:
Research and development	10,214			9,385			19,917			19,187
Selling, general and administrative	10,519			9,934			20,771			19,113
Amortization	648			416			1,264			832
Total operating expenses	21,381			19,735			41,952			39,132
Operating income	2,134			10,487			3,437			14,855
Interest expense, net	1,200			1,079			2,409			2,155
Other income	(398		)	(523		)	(49		)	(104		)
Income before income taxes	1,332			9,931			1,077			12,804
Provision (benefit) for income taxes	573			3,585			(75		)	4,596
Net income	$	759		$	6,346		$	1,152		$	8,208
Earnings per share:
Basic	$	0.02		$	0.20		$	0.04		$	0.26
Diluted	$	0.02		$	0.19		$	0.03		$	0.25
Weighted average shares outstanding:
Basic	32,567			32,144			32,633			32,110
Diluted	33,155			32,727			33,284			32,745

The accompanying notes are an integral part of these financial statements. 

2

RUDOLPH TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

(Unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
Net income	$	759		$	6,346		$	1,152		$	8,208
Other comprehensive loss:
Change in net unrealized gains (losses) on investments, net of tax	(55		)	24			(41		)	1
Change in currency translation adjustments	(499		)	(352		)	(948		)	(166		)
Total comprehensive income	$	205		$	6,018		$	163		$	8,043

The accompanying notes are an integral part of these financial statements. 

3

RUDOLPH TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Six Months Ended June 30,
	2013			2012
Cash flows from operating activities:
Net income	$	1,152		$	8,208
Adjustments to reconcile net income to net cash and cash equivalents provided by (used in) operating activities:
Amortization of intangibles and other	1,444			1,012
Amortization of convertible note discount and issuance costs	1,482			1,332
Depreciation	2,067			1,986
Foreign currency exchange gain	(49		)	(105		)
Share-based compensation	1,955			2,018
Provision for doubtful accounts and inventory valuation	1,673			949
Change in operating assets and liabilities:
Accounts receivable	(4,376		)	(11,777		)
Inventories	(10,815		)	(5,056		)
Prepaid expenses and other assets	(1,165		)	(2,334		)
Accounts payable and accrued liabilities	3,387			7,089
Other current liabilities	(3,081		)	6,337
Non-current liabilities	238			25
Net cash and cash equivalents provided by (used in) operating activities	(6,088		)	9,684
Cash flows from investing activities:
Purchases of marketable securities	(61,414		)	(51,648		)
Proceeds from sales of marketable securities	35,440			43,774
Purchases of property, plant and equipment	(2,485		)	(909		)
Purchase of businesses	(3,365		)	(7,640		)
Net cash and cash equivalents used in investing activities	(31,824		)	(16,423		)
Cash flows from financing activities:
Issuance of shares through share-based compensation plans	630			101
Tax benefit for sale of shares through share-based compensation plans	611			171
Net cash and cash equivalents provided by financing activities	1,241			272
Effect of exchange rate changes on cash and cash equivalents	(790		)	(184		)
Net decrease in cash and cash equivalents	(37,461		)	(6,651		)
Cash and cash equivalents at beginning of period	104,253			96,671
Cash and cash equivalents at end of period	$	66,792		$	90,020
Supplemental disclosure of cash flow information:
Income taxes paid	$	3,923		$	1,079
Interest paid	$	1,125		$	1,063

The accompanying notes are an integral part of these financial statements. 

4

RUDOLPH TECHNOLOGIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except per share data)

(Unaudited)

NOTE 1.    Basis of Presentation

The accompanying interim unaudited condensed consolidated financial statements have been prepared by Rudolph Technologies, Inc. (the “Company” or “Rudolph”) and in the opinion of management reflect all adjustments, consisting of normal recurring accruals, necessary for their fair presentation in accordance with accounting principles generally accepted in the United States of America.  Preparing financial statements requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes.  Actual amounts could differ materially from those amounts.  The interim results for the three and six month periods ended June 30, 2013 are not necessarily indicative of results to be expected for the entire year or any future periods.  This interim financial information should be read in conjunction with the financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 filed with the Securities and Exchange Commission (“SEC”).

Reclassifications

Certain prior period amounts have been reclassified to conform to current financial statement presentation. These amounts include the reclassification of uncertain tax credit liabilities to deferred tax assets in the Condensed Consolidated Balance Sheets and Statements of Cash Flows.

Recent Accounting Pronouncements

In July 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) No. 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” The ASU requires that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The Company does not believe that this guidance will have a material impact on its consolidated financial position, results of operations, or cash flows.

In July 2013, the FASB issued ASU No. 2013-10, “Derivatives and Hedging (Topic 815): Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes (a consensus of the FASB Emerging Issues Task Force.” The ASU permits the Fed Funds Effective Swap Rate (OIS) to be used as a U.S. benchmark interest rate for hedge accounting purposes under Topic 850, in addition to UST and LIBOR. The amendments also remove the restriction on using different benchmark rates for similar hedges. This ASU is effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The Company does not believe that this guidance will have a material impact on its consolidated financial position, results of operations, or cash flows.

In February 2013, the FASB issued ASU No. 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” The ASU requires an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under U.S. GAAP to be reclassified in its entirety to net income. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under U.S. GAAP that provide additional detail about those amounts. This ASU is effective prospectively for reporting periods beginning after December 15, 2012. The adoption of this amendment did not have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

NOTE 2.   Business Combinations

5

Tamar Technology

In April 2013, the Company announced that it had acquired specific assets of Tamar Technology, located in Newbury Park, California (“Tamar acquisition”). The Company paid $3,365 of the purchase price in cash and accrued an additional $6,198 for contingent consideration. The acquired business has been integrated into the Company’s inspection technology group.  The impact of the acquisition was not material to the Company’s consolidated financial position or results of operations.

NanoPhotonics

In June 2012, the Company announced that it had acquired specific assets and liabilities of NanoPhotonics GmbH, located in Mainz, Germany (“NanoPhotonics acquisition”). The acquired business has been integrated into the Company’s inspection technology group.  The impact of the acquisition was not material to the Company’s consolidated financial position or results of operations.

Azores

In December 2012, the Company announced that it had acquired Azores Corporation, located in Wilmington, Massachusetts (“Azores acquisition”). The acquired business marks the Company's entry into the advanced packaging and FPD lithography markets and forms the Company’s lithography systems group. The impact of the acquisition was not material to the Company’s consolidated financial position or results of operations.

The Company made a preliminary allocation of the purchase price to the assets acquired and liabilities assumed as of the acquisition date for the Azores acquisition and the Tamar acquisition. The Company will finalize its analysis of the purchase price allocation within the first year of the acquisitions, and therefore adjustments to goodwill and identifiable intangible assets may occur. The Company has finalized the purchase price allocation of the NanoPhotonics acquisition.

NOTE 3.  Fair Value Measurements

The Company applies a three-level valuation hierarchy for fair value measurements. This hierarchy prioritizes the inputs into three broad levels.  Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the asset or liability. Level 3 inputs are unobservable inputs based on management’s assumptions used to measure assets and liabilities at fair value. A financial asset’s or liability’s fair value measurement classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

The following tables provide the assets and liabilities carried at fair value measured on a recurring basis at June 30, 2013 and December 31, 2012:

6

			Fair Value Measurements Using
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
June 30, 2013
Assets:
Available-for-sale debt securities:
Municipal notes and bonds	$	90,231	$	—	$	90,231	$	—
Corporate bonds	500		—		500		—
Auction rate securities	302		—		—		302
Foreign currency forward contracts	13		—		13		—
Total Assets	$	91,046	$	—	$	90,744	$	302
Liabilities:
Contingent consideration - acquisitions	$	6,198	$	—	$	—	$	6,198
Total Liabilities	$	6,198	$	—	$	—	$	6,198
December 31, 2012
Assets:
Available-for-sale debt securities:
Municipal notes and bonds	$	64,117	$	—	$	64,117	$	—
Corporate bonds	500		—		500		—
Auction rate securities	346		—		—		346
Foreign currency forward contracts	268		—		268		—
Total Assets	$	65,231	$	—	$	64,885	$	346

Level 1 investments are based on quoted prices that are available in active markets.

The Company’s investments classified as Level 2 are valued using observable inputs to quoted market prices, benchmark yields, reported trades, broker/dealer quotes or alternative pricing sources with reasonable levels of price transparency. The foreign currency forward contracts are primarily measured based on the foreign currency spot and forward rates quoted by the banks or foreign currency dealers. Available-for-sale debt securities prices are obtained from third party pricing providers, which models prices utilizing the above observable inputs, for each asset class.

Level 3 investments consist of an auction rate security and contingent consideration related to an acquisition for which the Company uses a discounted cash flow model to value these investments. The Level 3 assumptions used in the discounted cash flow model for the auction rate security included estimates of interest rates of 3.2%, timing of cash flows and expected holding periods. Changes in the unobservable input values would be unlikely to cause material changes in the fair value of the auction rate security. The level 3 assumptions used in the discounted cash flow model for the contingent consideration included projected revenues, estimates of discount rates of 1.2% and timing of cash flows. A significant decrease in the projected revenues could result in a significantly lower fair value measurement for the contingent consideration.

This table presents a reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the six months endedJune 30, 2013:

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Balance at December 31, 2012	$	346
Unrealized loss in accumulated other comprehensive loss	(44		)
Purchases	(6,198		)
Sales, issuances, and settlements	—
Transfers into (out of) Level 3	—
Balance at June 30, 2013	$	(5,896	)

7

See Note 4 for additional discussion regarding the fair value of the Company’s marketable securities.

Fair Value of Other Financial Instruments

The carrying value of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximates fair value because of the short maturity of these instruments. The estimated fair value of these obligations is based, primarily, on a market approach, comparing the Company’s interest rates to those rates the Company believes it would reasonably receive upon re-entry into the market. Judgment is required to estimate the fair value, using available market information and appropriate valuation methods.

The Company’s convertible senior notes are not publicly traded. The estimated fair value of the Company’s convertible senior notes was valued using a discounted cash flow model. The Level 3 assumptions, based on data available at the valuation date used in preparing the discounted cash flow model included estimates of interest rates, timing and amount of cash flows and expected holding periods of the convertible senior notes. The fair value of the contingent interest associated with the convertible senior notes is valued quarterly using the present value of expected cash flow model incorporating the probabilities of the contingent events occurring.

The following table reflects information pertaining to the Company’s convertible senior notes:

	June 30, 2013			December 31, 2012
Net carrying value of convertible senior notes	$	50,347		$	49,010
Estimated fair value of convertible senior notes	$	52,242		$	51,018
Estimated interest rate used in discounted cash flow model	9.4		%	9.4		%
Fair value of contingent interest	$	—		$	—

NOTE 4.   Marketable Securities

The Company has evaluated its investment policies and determined that all of its investment securities are to be classified as available-for-sale.  Available-for-sale securities are carried at fair value, with the unrealized gains and losses reported in Stockholders’ Equity under the caption “Accumulated other comprehensive loss.”  Realized gains and losses on available-for-sale securities are included in “Other income” in the Condensed Consolidated Statements of Operations.  The Company records other-than-temporary impairment charges for its available-for-sale investments when it intends to sell the securities, it is more-likely-than not that it will be required to sell the securities before a recovery, or when it does not expect to recover the entire amortized cost basis of the securities.  The cost of securities sold is based on the specific identification method.

As of June 30, 2013, the Company held one auction-rate security with a fair value of $302. The underlying asset of the Company’s auction-rate security consisted of a municipal bond with an auction reset feature. Due to auction failures in the marketplace, the Company will not have access to these funds unless (a) future auctions occur and are successful, (b) the security is called by the issuer, (c) the Company sells the security in an available secondary market, or (d) the underlying note matures. Currently, there are no active secondary markets. As of June 30, 2013, the Company had recorded a cumulative temporary unrealized impairment loss of $173 within “Accumulated other comprehensive loss” based upon its assessment of the fair value of this security. The Company believes that this impairment is temporary, as it does not intend to sell this security, the Company will not be required to sell this security before recovery, and the Company expects to recover the amortized cost basis of this security.

The Company has determined that the gross unrealized losses on its marketable securities at June 30, 2013 and December 31, 2012 are temporary in nature. The Company reviews its investment portfolio to identify and evaluate investments that have indications of possible impairment. Factors considered in determining whether a loss is other-than-temporary include the length of time and extent to which fair value has been less than the cost basis, credit quality and the Company’s ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value.

At June 30, 2013 and December 31, 2012, marketable securities are categorized as follows:

8

	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Fair Value
June 30, 2013
Municipal notes and bonds	$	90,199	$	40	$	(8	)	$	90,231
Corporate bonds	500		—		—			500
Auction rate securities	475		—		(173		)	302
Total marketable securities	$	91,174	$	40	$	(181	)	$	91,033
December 31, 2012
Municipal notes and bonds	$	64,088	$	36	$	(7	)	$	64,117
Corporate bonds	500		—		—			500
Auction rate securities	475		—		(129		)	346
Total marketable securities	$	65,063	$	36	$	(136	)	$	64,963

 The amortized cost and estimated fair value of marketable securities classified by the maturity date listed on the security, regardless of the Condensed Consolidated Balance Sheet classification, is as follows at June 30, 2013 and December 31, 2012:

	June 30, 2013				December 31, 2012
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due within one year	$	78,692	$	78,723	$	57,367	$	57,390
Due after one through five years	9,731		9,732		7,016		7,022
Due after five through ten years	738		738		205		205
Due after ten years	2,013		1,840		475		346
Total marketable securities	$	91,174	$	91,033	$	65,063	$	64,963

The following table summarizes the estimated fair value and gross unrealized holding losses of marketable securities, aggregated by investment instrument and period of time in an unrealized loss position at June 30, 2013 and December 31, 2012:  

	In Unrealized Loss Position For Less Than 12 Months					In Unrealized Loss Position For Greater Than 12 Months
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
June 30, 2013
Municipal notes and bonds	$	11,175	$	(8	)	$	—	$	—
Auction rate securities	—		—			302		(173		)
Total	$	11,175	$	(8	)	$	302	$	(173	)
December 31, 2012
Municipal notes and bonds	$	9,037	$	(7	)	$	—	$	—
Auction rate securities	—		—			346		(129		)
Total	$	9,037	$	(7	)	$	346	$	(129	)

See Note 3 for additional discussion regarding the fair value of the Company’s marketable securities.

NOTE 5.    Derivative Instruments and Hedging Activities

The Company, when it considers it to be appropriate, enters into forward contracts to hedge the economic exposures arising from foreign currency denominated transactions. At June 30, 2013 and December 31, 2012, these contracts included the future sale of Japanese Yen to purchase U.S. dollars. Derivative instruments are recognized as either “Prepaid expenses and other current assets” or “Other current liabilities” in the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements

9

of Cash Flows and are measured at fair value. The foreign currency forward contracts were entered into by the Company’s Japanese subsidiary to economically hedge a portion of certain intercompany obligations. The forward contracts are not designated as hedges for accounting purposes and therefore, decreases in the fair value of $255 and $163 for the six month periods ended June 30, 2013 and 2012, respectively, are recorded within the caption “Other income” in the Condensed Consolidated Statements of Operations.

The dollar equivalent of the U.S. dollar forward contracts and related fair values as of June 30, 2013 and December 31, 2012 were as follows:

	June 30, 2013		December 31, 2012
Notional amount	$	450	$	3,457
Fair value of asset	$	13	$	268

NOTE 6.    Goodwill and Purchased Intangible Assets

Goodwill

The changes in the carrying amount of goodwill are as follows:

Balance at December 31, 2012	$	11,371
Tamar acquisition	7,939
Other	(12		)
Balance at June 30, 2013	$	19,298

Purchased Intangible Assets

Purchased intangible assets as of  June 30, 2013 and December 31, 2012 are as follows:

	Gross Carrying Amount		Accumulated Amortization		Net
June 30, 2013
Developed technology	$	59,735	$	50,416	$	9,319
Customer and distributor relationships	9,491		7,253		2,238
Trade names	4,361		3,267		1,094
Total identifiable intangible assets	$	73,587	$	60,936	$	12,651
December 31, 2012
Developed technology	$	58,961	$	49,358	$	9,603
Customer and distributor relationships	8,712		7,102		1,610
Trade names	4,361		3,216		1,145
Total identifiable intangible assets	$	72,034	$	59,676	$	12,358

Intangible asset amortization expense for the three and six months endedJune 30, 2013 was $648 and $1,264, respectively. For the three and six months endedJune 30, 2012, intangible assets amortization expense was $416 and $832, respectively. Assuming no change in the gross carrying value of identifiable intangible assets and estimated lives, estimated amortization expense for the remainder of 2013 will be $1,328, and for each of the next five years estimated amortization expense amounts to $2,400 for 2014, $2,028 for 2015, $1,919 for 2016, $1,531 for 2017, and $1,095 for 2018.

NOTE 7.    Balance Sheet Details

Inventories

Inventories are comprised of the following:

10

	June 30, 2013		December 31, 2012
Materials	$	37,218	$	31,629
Work-in-process	19,868		15,889
Finished goods	14,970		15,904
Total inventories	$	72,056	$	63,422

The Company has established reserves of $5,727 and $5,620 as of June 30, 2013 and December 31, 2012, respectively, for slow moving and obsolete inventory, which are included in the amounts above.

Property, Plant and Equipment

Property, plant and equipment, net is comprised of the following:

	June 30, 2013			December 31, 2012
Land and building	$	4,997		$	4,997
Machinery and equipment	19,112			18,826
Furniture and fixtures	3,829			3,381
Computer equipment	8,093			7,789
Leasehold improvements	8,125			6,807
	44,156			41,800
Accumulated depreciation	(31,672		)	(29,891		)
Total property, plant and equipment, net	$	12,484		$	11,909

Other assets

Other assets is comprised of the following:

	June 30, 2013		December 31, 2012
Deferred income taxes	$	32,881	$	32,800
Capitalized software	20		201
Other	1,909		1,893
Total other assets	$	34,810	$	34,894

Other current liabilities

Other current liabilities is comprised of the following:

	June 30, 2013		December 31, 2012
Litigation accrual	$	4,293	$	4,293
Deferred revenue	9,011		11,170
Other	5,321		5,889
Total other current liabilities	$	18,625	$	21,352

Other non-current liabilities

Other non-current liabilities is comprised of the following:

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	June 30, 2013		December 31, 2012
Unrecognized tax benefits (including interest)	$	6,274	$	5,871
Contingent consideration - acquisitions	5,773		—
Other	1,905		2,166
Total other non-current liabilities	$	13,952	$	8,037

NOTE 8.   Debt Obligations

On July 25, 2011, the Company issued $60,000 aggregate principal amount of 3.75% Convertible Senior Notes due 2016 (the “Notes”) at par. The Notes were issued pursuant to an indenture, dated as of July 25, 2011, between the Company and Bank of New York Mellon Trust Company, N.A., as Trustee, which includes a form of Note. The Notes provide for the payment of interest semi-annually in arrears on January 15 and July 15 of each year, beginning January 15, 2012, at an annual rate of 3.75% and will mature on July 15, 2016, unless earlier converted or repurchased. The Notes may be converted, under certain circumstances, based on an initial conversion rate of 77.241 shares of Company common stock per $1 principal amount of Notes, which represents an initial conversion price of approximately $12.95 per share. Concurrently with the issuance of the Notes, the Company purchased a convertible note hedge and sold a warrant. Each of the convertible note hedge and warrant transactions were entered into with an affiliate of the initial purchaser of the Notes. The convertible note hedge is intended to reduce the potential future dilution to the Company’s common stock associated with the conversion of the Notes. However, the warrant transaction will have a dilutive effect on the Company’s earnings per share to the extent that the price of the Company’s common stock exceeds the strike price of the warrant. The strike price of the warrant will initially be $17.00 per share. The net proceeds to the Company from the sale of the Notes, including the convertible note hedge and warrant were $50,249.

The following table reflects the net carrying value of the Notes:

	June 30, 2013		December 31, 2012
Convertible senior notes	$	60,000	$	60,000
Less: Unamortized interest discount	9,653		10,990
Net carrying value of convertible senior notes	$	50,347	$	49,010

The following table presents the amount of interest cost recognized relating to the Notes during the three and six months endedJune 30, 2013 and June 30, 2012.

	Three Months Ended				Six Months Ended
	June 30, 2013		June 30, 2012		June 30, 2013		June 30, 2012
Contractual interest coupon	$	562	$	562	$	1,124	$	1,125
Amortization of interest discount	670		608		1,337		1,213
Amortization of debt issuance costs	73		60		145		119
Total interest cost recognized	$	1,305	$	1,230	$	2,606	$	2,457

The remaining bond discount of the Notes of $9,653, as of June 30, 2013 will be amortized over the remaining life of the Notes.

NOTE 9.   Commitments and Contingencies

Warranty Reserves

The Company generally provides a warranty on its products for a period of twelve to fifteen months against defects in material and workmanship. The Company estimates the costs that may be incurred during the warranty period and records a liability in the amount of such costs at the time revenue is recognized. The Company’s estimate is based primarily on historical experience. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. Settlements of warranty reserves are generally associated with sales that occurred during the 12 to 15 months prior to the year-end and warranty accruals are related to sales during the year.

Changes in the Company’s warranty reserves are as follows:

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	Six Months Ended June 30,
	2013			2012
Balance, beginning of the period	$	2,024		$	1,406
Accruals	1,033			1,033
Warranty liability assumed in acquisition	—			93
Usage	(1,365		)	(1,023		)
Balance, end of the period	$	1,692		$	1,509

Warranty reserves are reported in the Condensed Consolidated Balance Sheets within the caption “Accounts payable and accrued liabilities.”

Letter of Credit

As of June 30, 2013, the Company had a $40,000 irrevocable standby letter of credit with Credit Suisse AG available to secure the damages assessment in connection with the ITC litigation discussed in Legal Matters below, which the Company is in the process of appealing. The letter of credit expires on February 25, 2014 with provisions for automatic renewal. Upon draw down of funds, the letter of credit would be collateralized by securities held in the Company’s investment portfolios and reported in the Condensed Consolidated Balance Sheets within the caption “Cash and cash equivalents” and “Marketable securities.” No amounts were outstanding on the letter of credit as of, or during the six months ended, June 30, 2013.

Legal Matters

From time to time, the Company is subject to legal proceedings and claims in the ordinary course of business. As previously disclosed, in December 2007, the Company completed the acquisition of specific assets and liabilities of the semiconductor division of Applied Precision LLC (“Applied”). As a result of the acquisition, the Company assumed certain liabilities of Applied including a lawsuit filed in the United States District Court, District of Arizona, by Integrated Technology Corporation (“ITC”) which alleged Applied’s PrecisionPoint^™, PrecisionWoRx^® and ProbeWoRx^® products infringed an ITC patent (Integrated Technology Corporation v. Rudolph Technologies, Inc., No. CV-06-2182-PHX-ROS). Prior to trial, the District Court ruled that such products soldprior to August of 2007 infringed the ITC patent. In December 2011, a trial verdict was rendered in which the jury found that while the Company’s products manufactured after August of 2007 did not literally infringe ITC’s patent, the products were found to infringe under a rule known as the doctrine of equivalents, a legal principle which expands the language of patent claims to encompass products or processes which may otherwise be found not to literally infringe the patent. The jury awarded $15,475 to ITC in damages for sales made during the years 2000-2011, of which award approximately one-half related to sales made after August 2007. The jury found that for sales made after August of 2007 the infringement was willful. On July 23, 2012, the District Court, responding to post-trial motions filed by the Company and ITC related to the verdict and damages assessment, issued an Order which affirmed the jury's award, applied treble damages to the portion of the jury award related to sales of the products after 2007 and granted ITC’s motion for attorney's fees and prejudgment interest on the verdict and attorney's fees. The District Court also enjoined the Company from future infringement of the ITC patent and from selling or supplying the applicable products with the applicable features from or into the United States. The Company appealed the injunction as well as the District Court Order and the damages assessment. In October 2012, the injunction was stayed by the Federal Court of Appeals, while the appeal of the District Court Order and damages assessment is currently ongoing. The Company believes that it has meritorious defenses and shall continue to vigorously prosecute its appeal. With that, it is reasonably possible that the Company could realize a loss in this matter related to products soldafter August of 2007 such that in the event that the Company is ultimately found liable, damage estimates related to this case, which have not been accrued for as of June 30, 2013, range from approximately $25 to $31,641. With regard to products soldbefore August of 2007, it is probable that the Company could realize a loss in this matter for which the Company has estimated and recorded a liability of approximately $4,293 in “Other liabilities” in the Consolidated Balance Sheets. The maximum liability reasonably possible for the pre-August 2007 products is an additional $3,391 plus interest beyond the accrual. While the Company continues to believe that its current PrecisionWoRx® and ProbeWoRx® systems do not infringe ITC’s patent, the Company reached an agreement with ITC in October 2012 with regards to a redesign of the products under which ITC agreed that such redesign is permissible under the court’s injunction.

In the Company’s patent infringement suit against Camtek, Ltd., of Migdal Hamek, Israel, concerning the Company’s proprietary continuous scan wafer inspection technology, the U.S. Federal Court of Appeals issued a ruling on August 22, 2011.  In its opinion, the Appellate Court affirmed multiple rulings from trial at the District Court level including (i) finding the Company’s U.S. Patent No. 6,826,298 valid, (ii) the part of the infringement ruling based on the finding that Camtek’s Falcon product strobes “based on velocity,” and (iii) the dismissal of Camtek’s claim against the Company for inequitable conduct against the U.S. Patent and Trademark Office.  The court did, however, revise one claim construction ruling made by the District Court in the original case.  As a result, the Appellate Court set aside the verdict delivered by the jury for damages and the District Court's decision to enter an injunction against Camtek’s selling Falcon tools in the U.S. and remanded the case back to the trial court for a limited

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trial on this single infringement issue.  No trial date has been set for this limited trial.  This lawsuit was initially brought in 2005 by August Technology prior to its merger with the Company.

NOTE 10.   Share-Based Compensation

Restricted Stock Unit Activity

A summary of the Company’s nonvested restricted stock unit activity with respect to the six months ended June 30, 2013 is as follows:

	Number of Shares		Weighted Average Grant Date Fair Value
Nonvested at December 31, 2012	1,380		$	8.37
Granted	267		$	12.40
Vested	(419	)	$	7.69
Forfeited	(48	)	$	9.42
Nonvested at June 30, 2013	1,180		$	9.48

As of June 30, 2013 and December 31, 2012, there was $7,363 and $5,906 of total unrecognized compensation cost related to restricted stock units granted under the Company’s stock plans, respectively.  That cost is expected to be recognized over a weighted average period of 2.4 years and 2.0 years for the respective periods.

NOTE 11.   Other Income

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
Foreign currency exchange gains, net	$	(398	)	$	(523	)	$	(49	)	$	(105	)
Other	—			—			—			1
Total other income	$	(398	)	$	(523	)	$	(49	)	$	(104	)

NOTE 12.   Income Taxes

The following table provides details of income taxes:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
Income before income taxes	$	1,332		$	9,931		$	1,077		$	12,804
Provision (benefit) for income taxes	$	573		$	3,585		$	(75	)	$	4,596
Effective tax rate	43.0		%	36.1		%	(7.0		)%	35.9		%

The income tax provision for the three and six months endedJune 30, 2013 was computed based on the Company’s annual forecast of profit by jurisdiction and forecasted effective tax rate for the year. The changes in the effective tax rate for the three months endedJune 30, 2013 compared to the same period for the prior year are primarily due to discrete items recorded in the quarter. The changes in the Company’s effective tax rate for the six months endedJune 30, 2013 compared to the same period for the prior year are primarily due to anticipated generation of federal R&D credits, which were not available in the 2012 period as a result of legislation.

The Company currently has a partial valuation allowance recorded against certain deferred tax assets. Each quarter, the Company assesses the likelihood that it will be able to recover its deferred tax assets. The Company considers available evidence, both positive and negative, including prudent and feasible tax planning strategies in assessing the need for a valuation allowance. As a result of the Company’s analysis, it concluded that it is more likely than not that a portion of its net deferred tax assets will not be realized. Therefore, the Company continues to provide a valuation allowance against certain net deferred tax assets. The

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Company continues to closely monitor available evidence and may reverse some or all of the remaining valuation allowance in future periods, if appropriate. The Company has a valuation allowance of $1,361 as of June 30, 2013.

In the normal course of business, the Company is subject to examination by taxing authorities throughout the world. The Company is currently under a federal income tax examination by the Internal Revenue Service for the tax years ended December 31, 2007 through December 31, 2009. In addition, the Company is under examination by the State of New York for the tax years 2009 through 2011. The Company has not been contacted by any other U.S. state, local or foreign tax authority for all open tax periods beginning after December 31, 2007.

NOTE 13.   Earnings Per Share

Basic earnings per share is calculated using the weighted average number of shares of common stock outstanding during the period.  Diluted earnings per share is computed in the same manner and also gives effect to all dilutive common equivalent shares outstanding during the period.  Potential common shares that would have the effect of increasing diluted earnings per share are considered to be antidilutive. In accordance with U.S. GAAP, these shares were not included in calculating diluted earnings per share. For the three and six months endedJune 30, 2013, the weighted average number of stock options and restricted stock units excluded from the computation of diluted earnings per share was 711 and 760, respectively, because their effect was antidilutive. For the three and six months endedJune 30, 2012, the weighted average number of stock options and restricted stock units excluded from the computation of diluted earnings per share was 1,021 and 1,001, respectively, because their effect was antidilutive. Diluted earnings per share-weighted average shares outstanding do not include any effect resulting from assumed conversion of the Notes and warrants as their impact would be anti-dilutive.

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The Company’s basic and diluted earnings per share amounts are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
Numerator:
Net income	$	759	$	6,346	$	1,152	$	8,208
Denominator:
Basic earnings per share - weighted average shares outstanding	32,567		32,144		32,633		32,110
Effect of potential dilutive securities:
Employee stock options and restricted stock units - dilutive shares	588		583		651		635
Diluted earnings per share - weighted average shares outstanding	33,155		32,727		33,284		32,745
Earnings per share:
Basic	$	0.02	$	0.20	$	0.04	$	0.26
Diluted	$	0.02	$	0.19	$	0.03	$	0.25

NOTE 14.   Accumulated Other Comprehensive Loss

Comprehensive income includes net income, foreign currency translation adjustments, and net unrealized gains and losses on available-for-sale investments. See the unaudited Consolidated Statements of Comprehensive Income for the effect of the components of comprehensive income to our net income.

The components of accumulated other comprehensive loss, net of tax, are as follows:

	Foreign currency translation adjustments		Net unrealized losses on available-for-sale investments		Accumulated other comprehensive loss
Beginning Balance, December 31, 2012	$	985	$	100	$	1,085
Net current period other comprehensive loss	948		41		989
Reclassifications	—		—		—
Ending balance, June 30, 2013	$	1,933	$	141	$	2,074

NOTE 15.   Segment Reporting and Geographic Information

The Company has one reportable segment. Operating segments are business units that have separate financial information and are separately reviewed by the Company’s chief decision maker. The Company’s chief decision maker is the Chief Executive Officer. The Company is engaged in the design, development, manufacture and support of defect inspection, advanced packaging lithography, process control metrology, and data analysis systems and software used by microelectronic device manufacturers worldwide. The Company and its subsidiaries currently operate in a single reportable segment: the design, development, manufacture and support of defect inspection, advanced packaging lithography, process control metrology, and data analysis systems and software used by microelectronics device manufacturers. The chief operating decision maker allocates resources and assesses performance of the business and other activities at the reporting segment level.

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The following table lists the different sources of revenue:

	Three Months Ended								Six Months Ended
	June 30,								June 30,
	2013				2012				2013				2012
Systems and Software:
Inspection	$	26,829	58	%	$	33,949	60	%	$	51,708	59	%	$	56,805	56	%
Metrology	5,869		13	%	8,782		16	%	6,157		7	%	19,019		19	%
Lithography	—		—	%	—		—	%	3,700		4	%	—		—	%
Data Analysis and Review	4,856		11	%	5,584		10	%	9,013		10	%	10,131		10	%
Parts	5,255		11	%	5,146		9	%	10,801		13	%	10,650		10	%
Services	3,250		7	%	2,865		5	%	6,330		7	%	5,430		5	%
Total revenue	$	46,059	100	%	$	56,326	100	%	$	87,709	100	%	$	102,035	100	%

For geographical revenue reporting, revenues are attributed to the geographic location in which the product is shipped.  Revenue by geographic region is as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
United States	$	10,077	$	8,783	$	19,478	$	18,137
Taiwan	19,490		15,269		32,621		23,934
Japan	1,319		4,007		3,707		5,401
China	4,520		4,076		7,269		5,989
South Korea	1,644		10,842		5,067		25,334
Other Asia	3,167		4,899		8,575		10,003
Austria	174		4,982		460		7,580
Germany	1,550		1,368		4,075		1,741
Other Europe	4,118		2,100		6,457		3,916
Total revenue	$	46,059	$	56,326	$	87,709	$	102,035

Customers comprising 10% or more of revenue:

	Six Months Ended
	June 30,
	2013		2012
Customer A	11.0	%	1.7	%
Customer B	10.8	%	5.3	%
Customer C	10.0	%	7.1	%
Customer D	2.1	%	18.4	%
Customer E	1.1	%	12.5	%

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NOTE 16.   Share Repurchase Program

In July 2008, the Board of Directors authorized a share repurchase program of up to 3,000 shares of the Company’s common stock with no established end date.  As of the time of filing this Quarterly Report on Form 10-Q, the Company has not purchased any shares under this program.

Item 2.   Management’s Discussion and Analysis of Financial Condition and Results of Operations

Certain statements in this Quarterly Report on Form 10-Q are forward-looking statements, including those concerning our business momentum and future growth, the benefit to customers and market acceptance of our products and customer service, our ability to deliver both products and services consistent with our customers’ demands and expectations and strengthen our market position, our expectations of the semiconductor market outlook, future revenues, gross profits, research and development and engineering expenses, selling, general and administrative expenses, product introductions, technology development, manufacturing practices, cash requirements and anticipated trends and developments in and management plans for, our business and the markets in which we operate, our anticipated revenue as a result of recent acquisitions, and our ability to be successful in managing our cost structure and cash expenditures and results of litigation, including ongoing litigation with ITC. The statements contained in this Quarterly Report on Form 10-Q that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the words such as, but not limited to, “anticipate,” “believe,” “expect,” “intend,” “plan,” “should,” “may,” “could,” “will” and words or phrases of similar meaning, as they relate to our management or us.

The forward-looking statements contained herein reflect our current expectations with respect to future events and are subject to certain risks, uncertainties and assumptions. The forward-looking statements reflect our position as of the date of this report and we undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Actual results may differ materially from those projected in such forward-looking statements for a number of reasons including, but not limited to, the following: variations in the level of orders which can be affected by general economic conditions and growth rates in the semiconductor manufacturing industry and in the markets served by our customers, the global economic and political climates, difficulties or delays in product functionality or performance, the delivery performance of sole source vendors, the timing of future product releases, failure to respond adequately to either changes in technology or customer preferences, changes in pricing by us or our competitors, our ability to manage growth, risk of nonpayment of accounts receivable, changes in budgeted costs, our ability to leverage our resources to improve our position in our core markets, our ability to weather difficult economic environments, our ability to open new market opportunities and target high-margin markets, the strength/weakness of the back-end and /or front-end semiconductor market segments, our ability to successfully integrate recently acquired businesses into our business and fully realize, or realize within the expected time frame, the expected combination benefits from the acquisitions, and the “Risk Factors” set forth in Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2012. The forward-looking statements reflect our position as of the date of this report and we undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Critical Accounting Policies

The preparation of condensed consolidated financial statements and related disclosures in conformity with accounting principles generally accepted in the United States requires management to make judgments, assumptions and estimates that affect the amounts reported. Certain of these significant accounting policies are considered to be critical accounting policies, as defined below.

A critical accounting policy is defined as one that is both material to the presentation of our condensed consolidated financial statements and requires management to make difficult, subjective or complex judgments that could have a material effect on our financial condition or results of operations. Specifically, these policies have the following attributes: (1) we are required to make judgments and assumptions about matters that are highly uncertain at the time of the estimate; and (2) different estimates we could reasonably have used, or changes in the estimate that are reasonably likely to occur, could have a material effect on our financial position and results of operations.

Estimates and assumptions about future events and their effects cannot be determined with certainty. We base our estimates on historical experience and on various other assumptions believed to be applicable and reasonable under the circumstances. These estimates may change as new events occur, as additional information is obtained and as our operating environment changes. These changes have been included in the condensed consolidated financial statements as soon as they became known. In addition, management is periodically faced with uncertainties, the outcomes of which are not within its control and will not be known for prolonged periods of time. Certain of these uncertainties are discussed in our Annual Report on Form 10-K for the year ended December 31, 2012 in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition

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and Results of Operations.” Based on a critical assessment of our accounting policies and the underlying judgments and uncertainties affecting the application of those policies, management believes that our condensed consolidated financial statements are fairly stated in accordance with accounting principles generally accepted in the United States of America, and provide a fair presentation of our financial position and results of operations.

For more information, please see our critical accounting policies as previously disclosed in our 2012 Annual Report on Form 10-K.

See Note 1 to the condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q regarding the impact of recent accounting pronouncements on our financial position and results of operations.

Results of Operations for the Three and Six Month Periods EndedJune 30, 2013 and 2012

We are a worldwide leader in the design, development, manufacture and support of defect inspection, advanced packaging lithography, process control metrology, and data analysis systems and software used by microelectronic device manufacturers. We provide process and yield management solutions used in both wafer processing and final manufacturing through a family of standalone systems for macro-defect inspection, lithography, probe card test and analysis, and transparent and opaque thin film measurements. All Rudolph systems feature sophisticated software and production-worthy automation. Rudolph systems are backed by worldwide customer support.

Rudolph’s business is affected by the annual spending patterns of our customers on semiconductor capital equipment. The amount that our customers devote to capital equipment spending depends on a number of factors, including general worldwide economic conditions as well as other economic drivers such as personal computer, tablet, cell phone, other personal electronic devices and automotive sales. Current forecasts by industry analysts for the semiconductor device manufacturing industry project a year-over-year decrease in capital spending of 10% for 2013. We monitor capital equipment spending through announced capital spending plans by our customers and monthly-published industry data such as the book-to-bill ratio. The book-to-bill ratio is a 3-month running statistic that compares bookings or orders placed with capital equipment suppliers to billings or shipments. A book-to-bill above 1.0 shows that semiconductor device equipment manufacturers are ordering equipment at a pace that exceeds the equipment suppliers’ shipments for the period. The 3-month rolling average North American semiconductor equipment book-to-bill ratio was 1.1 at June 30, 2013, an increase from the book-to-bill ratio of 0.9 at December 31, 2012.

Historically, a significant portion of our revenues in each quarter and year has been derived from sales to relatively few customers, and we expect this trend to continue. For the six month period ended June 30, 2013 and for the years ended December 31, 2012, 2011 and 2010, sales to customers that individually represented at least five percent of our revenues accounted for 52.2%, 50.9%, 43.6%, and 44.4% of our revenues, respectively.

We do not have purchase contracts with any of our customers that obligate them to continue to purchase our products, and they could cease purchasing products from us at any time. A delay in purchase or cancellation by any of our large customers could cause quarterly revenues to vary significantly. In addition, during a given quarter, a significant portion of our revenues may be derived from the sale of a relatively small number of systems. Our macro-defect inspection and probe card and test analysis systems range in average selling price from approximately $250,000 to $1.7 million per system; our transparent film measurement systems range in average selling price from approximately $800,000 to $1.2 million per system; our opaque film measurement systems range in average selling price from approximately $1.0 million to $1.8 million per system; and our lithography steppers range in average selling price from approximately $3.0 million to $4.0 million per system.

A significant portion of our revenues has been derived from customers outside of the United States.  We expect that revenues generated from customers outside of the United States will continue to account for a significant percentage of our revenues. 

The following table lists, for the periods indicated, the revenue derived from customers outside of the United States (in percentages of total revenues): 

	Six Months Ended
	June 30,		Years Ended December 31,
	2013		2012		2011		2010
Asia	65.3	%	67.3	%	51.3	%	65.7	%
Europe	12.5	%	13.4	%	20.4	%	11.1	%
Total international revenue	77.8	%	80.7	%	71.7	%	76.8	%

The sales cycle for our systems typically ranges from six to 15 months, and can be longer when our customers are evaluating new technology. Due to the length of these cycles, we invest significantly in research and development and sales and marketing in advance of generating revenues related to these investments.

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Revenues. Our revenues are primarily derived from the sale of our systems, services, spare parts and software licensing.  Our revenue was $46.1 million and $87.7 million for the three and six month periods ended June 30, 2013, compared to $56.3 million and $102.0 million for the three and six month periods ended June 30, 2012, representing decreases of 18.2% and 14.0% in the year-over-year periods. 

The following table lists, for the periods indicated, the different sources of our revenues in dollars (thousands) and as percentages of our total revenues:

	Three Months Ended								Six Months Ended
	June 30,								June 30,
	2013				2012				2013				2012
Systems and Software:
Inspection	$	26,829	58	%	$	33,949	60	%	$	51,708	59	%	$	56,805	56	%
Metrology	5,869		13	%	8,782		16	%	6,157		7	%	19,019		19	%
Lithography	—		—	%	—		—	%	3,700		4	%	—		—	%
Data Analysis and Review	4,856		11	%	5,584		10	%	9,013		10	%	10,131		10	%
Parts	5,255		11	%	5,146		9	%	10,801		13	%	10,650		10	%
Services	3,250		7	%	2,865		5	%	6,330		7	%	5,430		5	%
Total revenue	$	46,059	100	%	$	56,326	100	%	$	87,709	100	%	$	102,035	100	%

Total systems and software revenue decreased for the six months ended June 30, 2013 compared to the six months ended June 30, 2012 due to decreased customer demand for our inspection and metrology systems as well as our software products. The decrease in customer demand for our products compared to the prior year period is due to a slowdown in capital equipment purchases by semiconductor manufacturers. This decrease in customer demand contributed to a lower number of inspection systems sold during the six months ended June 30, 2013 as compared to the same period in the prior year. As a result, inspection systems revenue decreased $5.1 million for the 2013 period compared to the 2012 period. The number of metrology systems sold during the six months ended June 30, 2013 was impacted by lower customer demand from the same period in the prior year, resulting in a decrease in metrology systems revenue of $12.9 million for the 2013 period. The year-over-year increase in lithography system revenue for the six months ended June 30, 2013 of $3.7 million is due to our entrance into the lithography market during the 2013 period. The year-over-year decrease in data analysis and review software revenue for the six months ended June 30, 2013 of $1.1 million is primarily due to decreased sales in licensing and consulting revenue in the data analysis and review Process Control Group product family.  As a result, the decrease in revenue for the 2013 period was caused by decreased volume rather than pricing changes as the average selling price of similarly configured systems has been consistent across the year-over-year periods. Systems revenue generated by our latest product releases and major enhancements in each of our product families amounted to 68% and 67% of total revenues for the three and six month periods ended June 30, 2013, compared to 65% and 62% of total revenues for the three and six month periods ended June 30, 2012.  The year-over-year increase in total parts and services revenue for the three and six month periods ended June 30, 2013 is primarily due to increased spending by our customers on system upgrades and repairs of existing systems. Parts and services revenues are generated from part sales, maintenance service contracts, system upgrades, as well as time and material billable service calls. 

Deferred revenues of $9.0 million are recorded in the Condensed Consolidated Balance Sheets within the caption “Other current liabilities” at June 30, 2013 and primarily consist of $2.3 million for systems awaiting acceptance and outstanding deliverables and $6.7 million for deferred maintenance agreements.

Gross Profit. Our gross profit has been and will continue to be affected by a variety of factors, including manufacturing efficiencies, excess and obsolete inventory write-offs, pricing by competitors or suppliers, new product introductions, production volume, customization and reconfiguration of systems, international and domestic sales mix, and parts and service margins. Our gross profit was $23.5 million and $45.4 million for the three and six month periods ended June 30, 2013, compared to $30.2 million and $54.0 million for the three and six month periods ended June 30, 2012.  Our gross profit represented 51.1% and 51.7% of our revenues for the three and six month periods ended June 30, 2013 and 53.7% and 52.9% of our revenues for the same periods in the prior year.  The decrease in gross profit as a percentage of revenue for the three and six month periods ended June 30, 2013 compared to the same period in the prior year is primarily due to product mix and lower system sales volume.

Operating Expenses. Major components of operating expenses include research and development as well as selling, general and administrative expenses. 

Research and Development.  Our research and development expense was $10.2 million and $19.9 million for the three and six month periods ended June 30, 2013, compared to $9.4 million and $19.2 million for the same periods in the prior year.  Research and development expense represented 22.2% and 22.7% of our revenues for the three and six

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month periods ended June 30, 2013, compared to 16.7% and 18.8% of revenues for the prior year periods.  The year-over-year dollar increase for the three and six month periods ended June 30, 2013 in research and development expenses primarily reflects the inclusion of research and development expenses for our acquisitions of NanoPhotonics and Azores, which were acquired during the latter part of 2012, and our acquisirion of Tamar Technology, which was acquired in April 2013.

Selling, General and Administrative.     Our selling, general and administrative expense was $10.5 million and $20.8 million for the three and six month periods ended June 30, 2013, compared to $9.9 million and $19.1 million for the same periods in the prior year.  Selling, general and administrative expense represented 22.8% and 23.7% of our revenues for the three and six month periods ended June 30, 2013, compared to 17.6% and 18.7% of our revenues for the same periods in the prior year.  The year-over-year dollar increase for the three and six month periods ended June 30, 2013 in selling, general and administrative expense was primarily due to the inclusion of selling, general and administrative expenses for NanoPhotonics and Azores, which were acquired in the latter part of 2012, and our acquisition of Tamar Technology, which was acquired in April 2013.

Income Taxes.  For the three month period ended June 30, 2013, we recorded an income tax provision of $0.6 million and for the six month period ended June 30, 2013, we recorded an income tax benefit of $0.1 million, as compared to tax provisions of $3.6 million and $4.6 million for the comparable periods in 2012. Our effective tax rate differs from the statutory rate of 35% for the three months endedJune 30, 2013 primarily due to discrete items related to prior years state tax true-ups recorded in the quarter. Our effective tax rate differs from the statutory rate of 35% for the six months endedJune 30, 2013 primarily due to recording a discrete event for research and development tax credit for 2012. The American Taxpayer Relief Act of 2012 was passed by Congress and signed into law in January 2013. The provisions under this law were made retroactive to January 1, 2012. However, as a result of the law being signed in January 2013, the financial impact of any retroactive provision was recorded as a discrete item in the tax provision in the first quarter of 2013. Our effective tax rate approximates the statutory tax rate of 35% for the three and six month periods ended June 30, 2012.

We currently have a partial valuation allowance recorded against our deferred tax assets. Each quarter we assess the likelihood that we will be able to recover our deferred tax assets primarily relating to state R&D credits. We consider available evidence, both positive and negative, including historical levels of income, expectations and risks associated with estimates of future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for a valuation allowance. As a result of our analysis, we concluded that it is more likely than not that a portion of our net deferred tax assets will not be realized. Therefore, we continue to provide a valuation allowance against certain net deferred tax assets. We continue to closely monitor available evidence and may reverse some or all of the valuation allowance in future periods, if appropriate.

Litigation. As discussed in Part II, Item 1 (“Legal Proceedings”), we are subject to legal proceedings and claims, which includes, among other things, our on-going litigation with ITC for which we are in the process of appealing an Order of the U.S. District Court in a patent infringement action related to the predictive scrub feature of our PrecisionPoint^™, PrecisionWoRx^® and ProbeWoRx^® products in which we were the defendants. See Part II, Item 1 of this Form 10-Q (Legal Proceedings) for a discussion of this action and the District Court’s adverse order affirming the jury award and ordering other relief in this matter. Our appeal of the District Court Order and damages assessment is currently ongoing. In the event that the ultimate decision in the ITC Litigation results in a judgment of damages against us at the high end of the identified ranges, such result will have a material impact on our results of operations and may also have a material impact on our liquidity and financial condition.

Liquidity and Capital Resources

At June 30, 2013, we had $157.8 million of cash, cash equivalents and marketable securities and $258.9 million in working capital.  At December 31, 2012, we had $169.2 million of cash, cash equivalents and marketable securities and $257.0 million in working capital. 

Operating activities used $6.1 million in cash and cash equivalents for the six month period ended June 30, 2013.  The net cash and cash equivalents used in operating activities during the six month period ended June 30, 2013 was primarily a result of an increase in inventory of $10.8 million, an increase in accounts receivable of $4.4 million, a decrease in other current liabilities of $3.1 million, and an increase in prepaid expenses and other assets of $1.2 million, partially offset by an increase in accounts payable and accrued liabilities of $3.4 million, and net income adjusted to exclude the effect of non-cash operating charges of $9.7 million. Operating activities provided $9.7 million in cash and cash equivalents for the six month period ended June 30, 2012. The net cash and cash equivalents provided by operating activities during the six month period ended June 30, 2012 was primarily a result of net income, adjusted to exclude the effect of non-cash operating charges of $15.4 million, an increase in accounts payable and accrued liabilities of $7.1 million, and an increase in other current liabilities of $6.3 million, partially offset by an increase in accounts receivable of $11.8 million, an increase in inventory of $5.1 million, and an increase in prepaid expenses and other assets of $2.3 million.

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Net cash and cash equivalents used in investing activities during the six month period ended June 30, 2013 of $31.8 million was due to the purchase of marketable securities of $61.4 million, purchase of business of $3.4 million and capital expenditures of $2.5 million, partially offset by the proceeds from sales of marketable securities of $35.4 million.  Net cash and cash equivalents used in investing activities during the six month period ended June 30, 2012 of $16.4 million was due to the purchase of marketable securities of $51.6 million, the purchase of business of $7.6 million, and capital expenditures of $0.9 million, partially offset by the proceeds from sales of marketable securities of $43.8 million.

 In July 2008, our Board of Directors approved a stock repurchase program of up to 3 million shares of Company common stock with no established end date.  As of the time of filing this Quarterly Report on Form 10-Q, we have not purchased any shares under this program.

From time to time, we evaluate whether to acquire new or complementary businesses, products and/or technologies. We may fund all or a portion of the purchase price of these acquisitions in cash, stock, or a combination of cash and stock.

As of June 30, 2013, we had a $40 million irrevocable standby letter of credit available with Credit Suisse AG which is required to secure the damages assessment in connection with the ITC litigation discussed in Part II, Item 1 (Legal Proceedings). The letter of credit expires on February 25, 2014 with provisions for automatic renewal. Upon draw down of funds, the letter of credit would be collateralized by securities held in our investment portfolios and reported in the Condensed Consolidated Balance Sheets within the caption “Cash and cash equivalents” and “Marketable securities.” No amounts were outstanding on the letter of credit as of, or during the three and six months ended, June 30, 2013.

Our future capital requirements will depend on many factors, including the timing and amount of our revenues and our investment decisions, which will affect our ability to generate additional cash. We believe that our existing cash, cash equivalents and marketable securities will be sufficient to meet our anticipated cash requirements for working capital and capital expenditures for the next twelve months. Thereafter, if cash generated from operations and financing activities is insufficient to satisfy our working capital requirements, we may seek additional funding through bank borrowings, sales of securities or other means. There can be no assurance that we will be able to raise any such capital on terms acceptable to us or at all.

Item 3.    Quantitative and Qualitative Disclosures about Market Risk

Interest Rate and Credit Market Risk

We are exposed to changes in interest rates and market liquidity including our investments in certain available-for-sale securities. Our available-for-sale securities consist of fixed and variable rate income investments (municipal notes, municipal and corporate bonds and an auction rate security). We continually monitor our exposure to changes in interest rates, market liquidity and credit ratings of issuers from our available-for-sale securities. It is possible that we are at risk if interest rates, market liquidity or credit ratings of issuers change in an unfavorable direction. The magnitude of any gain or loss will be a function of the difference between the fixed or variable rate of the financial instrument and the market rate and our financial condition and results of operations could be materially affected. Based on a sensitivity analysis performed on our financial investments held as of June 30, 2013, an immediate adverse change of 10% in interest rates (e.g. 3.00% to 3.30%) would result in an immaterial decrease in the fair value of our available-for-sale securities and would not have a material impact on our consolidated financial position, results of operations or cash flows.

Foreign Currency Risk

We have branch operations in Taiwan, Singapore and South Korea and wholly-owned subsidiaries in Europe, China and Japan.  Our international subsidiaries and branches operate primarily using local functional currencies.  The intercompany transactions denominated in U.S. dollars appearing on the financial statements of the subsidiaries and branches are remeasured at each quarter-end resulting in gains and losses which are reflected in net income.  A hypothetical 10% appreciation or depreciation in the U.S. dollar relative to the reporting currencies of our foreign subsidiaries at June 30, 2013 would have affected the foreign-currency-denominated non-operating expenses of our foreign subsidiaries by approximately $0.3 million. We cannot accurately predict future exchange rates or the overall impact of future exchange rate fluctuations on our business, results of operations and financial condition.

A substantial portion of our international sales are denominated in U.S. dollars with the exception of Japan and, as a result, we have relatively little exposure to foreign currency exchange risk with respect to these sales. Substantially all our sales in Japan are denominated in Japanese yen. From time to time, we may enter into forward exchange contracts to economically hedge a portion of, but not all, existing and anticipated foreign currency denominated transactions expected to occur within 12 months. The change in fair value of the forward contracts is recognized in Other expense (income) in the Condensed Consolidated Statements of Operations each reporting period. As of June 30, 2013, we had four forward contracts outstanding with a total notional contract value of $0.5 million. We do not use derivative financial instruments for trading or speculative purposes.

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Item 4.  Controls and Procedures

We maintain a set of disclosure controls and procedures, as defined in Rule 13a-15(e) or Rule 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), designed to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms and that such information is accumulated and communicated to our management, including our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), as appropriate, to allow for timely decisions regarding required disclosure. The disclosure controls and procedures are designed to provide reasonable assurance of achieving the desired control objectives. 

Scope of the Controls Evaluation

The evaluation of our disclosure controls and procedures included a review of the controls’ objectives and design, our implementation of the controls and the effect of the controls on the information generated for use in this Quarterly Report. In the course of the evaluation, we sought to identify data errors, control problems or acts of fraud and confirm that appropriate corrective actions, if any, including process improvements, were being undertaken. This type of evaluation is performed on a quarterly basis so that the conclusions of management, including the CEO and CFO, concerning the effectiveness of the controls can be reported in our Quarterly Reports on Form 10-Q and in our Annual Reports on Form 10-K. Many of the components of our disclosure controls and procedures are also evaluated on an ongoing basis by other personnel in our accounting, finance and legal functions. The overall goals of these various evaluation activities are to monitor our disclosure controls and procedures and to modify them on an ongoing basis as necessary. A control system can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures. Because of inherent limitations in a cost effective control system, misstatements due to error or fraud may occur and not be detected.

Conclusions

As of June 30, 2013, an evaluation was carried out under the supervision and with the participation of our management, including the CEO and CFO. Based on this evaluation, the CEO and CFO have concluded that our disclosure controls and procedures were effective at the reasonable assurance level as of the end of the period covered by this Quarterly Report on Form 10-Q.

Changes in Internal Control over Financial Reporting

There has been no change in our internal control over financial reporting that occurred during the period covered by this Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II    OTHER INFORMATION

Item 1.   Legal Proceedings

From time to time, we are subject to legal proceedings and claims in the ordinary course of business. As previously disclosed, in December 2007, we completed the acquisition of specific assets and liabilities of the semiconductor division of Applied Precision LLC (“Applied”). As a result of the acquisition, we assumed certain liabilities of Applied including a lawsuit filed in the United States District Court, District of Arizona, by Integrated Technology Corporation (“ITC”) which alleged Applied’s PrecisionPoint^™, PrecisionWoRx^® and ProbeWoRx^® products infringed an ITC patent (Integrated Technology Corporation v. Rudolph Technologies, Inc., No. CV-06-2182-PHX-ROS). Prior to trial, the District Court ruled that such products soldprior to August of 2007 infringed the ITC patent. In December 2011, a trial verdict was rendered in which the jury found that while our products manufactured after August of 2007 did not literally infringe ITC’s patent, the products were found to infringe under a rule known as the doctrine of equivalents, a legal principle which expands the language of patent claims to encompass products or processes which may otherwise be found not to literally infringe the patent. The jury awarded $15.5 million to ITC in damages for sales made during the years 2000-2011, of which award approximately one-half related to sales made after August 2007. The jury found that for sales made after August of 2007 the infringement was willful. On July 23, 2012, the District Court, responding to post-trial motions filed by us and ITC related to the verdict and damages assessment, issued an Order which affirmed the jury’s award, applied treble damages to the portion of the jury award related to sales of the products after 2007 and granted ITC’s motion for attorney’s fees and prejudgment interest on the verdict and attorney’s fees. The District Court also enjoined us from future infringement of the ITC patent and from selling or supplying the applicable products with the applicable features from or into the United States. We appealed the injunction as well as the District Court Order and the damages assessment. In October 2012, the injunction was stayed by the Federal Court of Appeals, while the appeal of the District Court Order and damages assessment is currently ongoing. We believe that we have meritorious defenses and shall continue to vigorously prosecute our appeal. With

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that, it is reasonably possible that we could realize a loss in this matter related to products soldafter August of 2007 such that in the event that we are ultimately found liable, damage estimates related to this case, which have not been accrued for as of June 30, 2013, range from approximately $25 thousand to $31.6 million. With regard to products sold before August of 2007, it is probable that we could realize a loss in this matter for which we have estimated and recorded a liability of approximately $4.3 million in “Other liabilities” in the Consolidated Balance Sheets. The maximum liability reasonably possible for the pre-August 2007 products is an additional $3.4 million plus interest beyond the accrual. While we continue to believe that our current PrecisionWoRx® and ProbeWoRx® systems do not infringe ITC’s patent, we reached an agreement with ITC in October 2012 with regards to a redesign of the products under which ITC agreed that such redesign is permissible under the court’s injunction.

In our patent infringement suit against Camtek, Ltd., of Migdal Hamek, Israel, concerning our proprietary continuous scan wafer inspection technology, the U.S. Federal Court of Appeals issued a ruling on August 22, 2011.  In its opinion, the Appellate Court affirmed multiple rulings from trial at the District Court level including (i) finding our U.S. Patent No. 6,826,298 valid, (ii) the part of the infringement ruling based on the finding that Camtek’s Falcon product strobes “based on velocity,” and (iii) the dismissal of Camtek’s claim against us for inequitable conduct against the U.S. Patent and Trademark Office.  The court did, however, revise one claim construction ruling made by the District Court in the original case.  As a result, the Appellate Court set aside the verdict delivered by the jury for damages and the District Court’s decision to enter an injunction against Camtek’s selling Falcon tools in the U.S. and remanded the case back to the trial court for a limited trial on this single infringement issue.  No trial date has been set for this limited trial.  This lawsuit was initially brought in 2005 by August Technology prior to its merger with us.

Item 1A.    Risk Factors

There were no material changes to our risk factors as discussed in Part I, Item 1A - Risk Factors in our Annual Report on Form 10-K, for the year ended December 31, 2012.

Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds

In July 2008, our Board of Directors authorized a share repurchase program of up to 3 million shares of the Company’s common stock with no established end date. As of the time of filing this Quarterly Report on Form 10-Q, we have not purchased any shares under this program.

Item 3.    Defaults Upon Senior Securities

None.

Item 4.    Mine Safety Disclosures

None.

Item 5.    Other Information

None.

Item 6.   Exhibits

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Exhibit No.	Description
3.1	Restated Certificate of Incorporation of Registrant, as amended (Conformed Version).
3.2	Certificate of Amendment of Restated Certificate of Incorporation of Registrant.
3.3	Restated Bylaws of Registrant (incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed on August 1, 2007, No. 000-27965).
3.4	Amendment to Restated Bylaws of Registrant (incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed on February 2, 2009, No. 000-27965).
31.1	Certification of Paul F. McLaughlin, Chief Executive Officer, pursuant to Securities Exchange Act Rule 13a-14(a).
31.2	Certification of  Steven R. Roth, Chief Financial Officer, pursuant to Securities Exchange Act Rule 13a-14(a).
32.1	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, signed by Paul F. McLaughlin, Chief Executive Officer of Rudolph Technologies, Inc.
32.2	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, signed by Steven R. Roth, Chief Financial Officer of Rudolph Technologies, Inc.
101.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema Document
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document

* Users of the XBRL data are advised pursuant to Rule 406T of Regulation S-T that this interactive data file is deemed not filed or part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		Rudolph Technologies, Inc.
Date:	August 2, 2013	By:	/s/  Paul F. McLaughlin
		Paul F. McLaughlin
		Chairman and Chief Executive Officer
Date:	August 2, 2013	By:	/s/  Steven R. Roth
		Steven R. Roth
		Senior Vice President, Chief Financial Officer and Principal Accounting Officer

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EXHIBIT INDEX

Exhibit No.	Description
3.1	Restated Certificate of Incorporation of Registrant, as amended (Conformed Version).
3.2	Certificate of Amendment of Restated Certificate of Incorporation of Registrant.
3.3	Restated Bylaws of Registrant (incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed on August 1, 2007, No. 000-27965).
3.4	Amendment to Restated Bylaws of Registrant (incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed on February 2, 2009, No. 000-27965).
31.1	Certification of Paul F. McLaughlin, Chief Executive Officer, pursuant to Securities Exchange Act Rule 13a-14(a).
31.2	Certification of  Steven R. Roth, Chief Financial Officer, pursuant to Securities Exchange Act Rule 13a-14(a).
32.1	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, signed by Paul F. McLaughlin, Chief Executive Officer of Rudolph Technologies, Inc.
32.2	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, signed by Steven R. Roth, Chief Financial Officer of Rudolph Technologies, Inc.
101.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema Document
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document

* Users of the XBRL data are advised pursuant to Rule 406T of Regulation S-T that this interactive data file is deemed not filed or part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections.

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EX-3.1

Exhibit 3.1

RESTATED CERTIFICATE OF INCORPORATION

OF

RUDOLPH TECHNOLOGIES, INC.

(Conformed Version - as of May 31, 2013)

Rudolph Technologies, Inc., a corporation organized and existing under the laws of the State of Delaware, hereby certifies as follows:

A. The name of the corporation is Rudolph Technologies, Inc. The corporation was originally incorporated under the name of Rudolph Holdings Corporation, and the original Certificate of Incorporation was filed with the Secretary of the State of Delaware on June 13, 1996.

B. Pursuant to Sections 242 and 245 of the General Corporation Law of the State of Delaware, this Restated Certificate of Incorporation restates and amends the provisions of the Certificate of Incorporation of the corporation.

C. The text of the Certificate of Incorporation is hereby amended and restated in its entirety to read as follows:

ARTICLE I

The name of this corporation is Rudolph Technologies, Inc.

ARTICLE II

The address of the corporation's registered office in the State of Delaware is 1013 Centre Road, in the City of Wilmington, County of New Castle, Delaware 19805. The name of its registered agent at such address is The Prentice-Hall Corporation System, Inc.

ARTICLE III

The purpose of the corporation is to engage in any lawful act or activity for which a corporation may be organized under the General Corporation Law of Delaware.

ARTICLE IV

The corporation is authorized to issue two classes of shares of stock to be designated, respectively, Common Stock, $0.001 par value, and Preferred Stock, $0.001 par value. The total number of shares that the corporation is authorized to issue is 105,000,000 shares. The number of shares of Common Stock authorized is 100,000,000. The number of shares of Preferred Stock authorized is 5,000,000.

The Preferred Stock may be issued from time to time in one or more series pursuant to a resolution or resolutions providing for such issue duly adopted by the board of directors (authority to do so being hereby expressly vested in the board). The board of directors is further authorized to determine or alter the rights, preferences, privileges and restrictions granted to or imposed upon any wholly unissued series of Preferred Stock and to fix the number of shares of any series of Preferred Stock and the designation of any such series of Preferred Stock. The board of directors, within the limits and restrictions stated in any resolution or resolutions of the board of directors originally fixing the number of shares constituting any series, may increase or decrease (but not below the number of shares in any such series then outstanding) the number of shares of any series subsequent to the issue of shares of that series.

The authority of the board of directors with respect to each such class or series shall include, without limitation of the foregoing, the right to determine and fix:

(a) the distinctive designation of such class or series and the number of shares to constitute such class or series;

(b) the rate at which dividends on the shares of such class or series shall be declared and paid, or set aside for payment, whether dividends at the rate so determined shall be cumulative or accruing, and whether the shares of such class or series shall be entitled to any participating or other dividends in addition to dividends at the rate so determined, and if so, on what terms;

(c) the right or obligation, if any, of the corporation to redeem shares of the particular class or series of Preferred Stock and, if redeemable, the price, terms and manner of such redemption;

(d) the special and relative rights and preferences, if any, and the amount or amounts per share, which the shares of such class or series of Preferred Stock shall be entitled to receive upon any voluntary or involuntary liquidation, dissolution or winding up of the corporation;

(e) the terms and conditions, if any, upon which shares of such class or series shall be convertible into, or exchangeable for, shares of capital stock of any other class or series, including the price or prices or the rate or rates of conversion or exchange and the terms of adjustment, if any;

(f) the obligation, if any, of the corporation to retire, redeem or purchase shares of such class or series pursuant to a sinking fund or fund of a similar nature or otherwise, and the terms and conditions of such obligation;

(g) voting rights, if any, on the issuance of additional shares of such class or series or any shares of any other class or series of Preferred Stock;

(h) limitations, if any, on the issuance of additional shares of such class or series or any shares of any other class or series of Preferred Stock; and

(i)    such other preferences, powers, qualifications, special or relative rights and privileges thereof as the board of directors of the corporation, acting in accordance with this Restated Certificate of Incorporation, may deem advisable and are not inconsistent with law and the provisions of this Restated Certificate of Incorporation.

ARTICLE V

The corporation reserves the right to amend, alter, change, or repeal any provision contained in this Certificate of Incorporation, in the manner now or hereafter prescribed by statute, and all rights conferred upon the stockholders herein are granted subject to this right.

ARTICLE VI

The corporation is to have perpetual existence.

ARTICLE VII

1. Limitation of Liability. To the fullest extent permitted by the General Corporation Law of the State of Delaware as the same exists or as may hereafter be amended, a director of the corporation shall not be personally liable to the corporation or its stockholders for monetary damages for breach of fiduciary duty as a director.

2. Indemnification. The corporation may indemnify to the fullest extent permitted by law any person made or threatened to be made a party to an action or proceeding, whether criminal, civil, administrative or investigative, by reason of the fact that such person or his or her testator or intestate is or was a director, officer or employee of the corporation, or any predecessor of the corporation, or serves or served at any other enterprise as a director, officer or employee at the request of the corporation or any predecessor to the corporation.

3. Amendments. Neither any amendment nor repeal of this Article VII, nor the adoption of any provision of the corporation's Certificate of Incorporation inconsistent with this Article VII, shall eliminate or reduce the effect of this Article VII, in respect of any matter occurring, or any action or proceeding accruing or arising or that, but for this Article VII, would accrue or arise, prior to such amendment, repeal, or adoption of an inconsistent provision.

ARTICLE VIII

In the event any shares of Preferred Stock shall be redeemed or converted pursuant to the terms hereof, the shares so converted or redeemed shall not revert to the status of authorized but unissued shares, but instead shall be canceled and shall not be re-issuable by the corporation.

ARTICLE IX

1. Number of Directors. The number of directors which constitutes the whole Board of Directors of the corporation shall be designated in the Amended and Restated Bylaws of the corporation. The directors shall be divided into three classes with the term of office of the first class (Class I) to expire at the annual meeting of stockholders held in 2000; the term of office of the second class (Class II) to expire at the annual meeting of stockholders held in 2001; the term of office of the third class (Class III) to expire at the annual meeting of stockholders held in 2002; and thereafter for each such term to expire at each third succeeding annual meeting of stockholders after such election.

2. Election of Directors. Elections of directors need not be by written ballot unless the Amended and Restated Bylaws of the corporation shall so provide.

3. Removal of Directors. Any director or directors may be removed from office at any time, but only for cause and only by the affirmative vote, at any regular meeting or special meeting of the stockholders, of not less than 66 2/3% of the total number of votes of the then outstanding shares of stock of this corporation entitled to vote generally in the election of directors, voting together as a single class, but only if notice was properly given prior to the meeting.

ARTICLE X

In furtherance and not in limitation of the powers conferred by statute, the Board of Directors is expressly authorized to make, alter, amend or repeal the Amended and Restated Bylaws of the corporation.

ARTICLE XI

No action shall be taken by the stockholders of the corporation except at an annual or special meeting of the stockholders called in accordance with the Amended and Restated Bylaws. The stockholders may not take any action by written consent. The affirmative vote of sixty-six and two-thirds percent (66 2/3%) of the then outstanding voting securities of the corporation, voting together as a single class, shall be required for the amendment, repeal or modification of the provisions of Article IX, Article X or Article XI of this Restated Certificate of Incorporation or Sections 2.3 (Special Meeting), 2.4 (Notice of Stockholders' Meeting), 2.5 (Advanced Notice of Stockholder Nominees and Stockholder Business), 2.10 (Voting), or 2.12 (Stockholder Action by Written Consent Without a Meeting), or 3.2 (Number of Directors) of the corporation's Amended and Restated Bylaws.

ARTICLE XII

Meetings of stockholders may be held within or without the State of Delaware, as the Amended and Restated Bylaws may provide. The books of the corporation may be kept (subject to any provision contained in the statutes) outside of the State of Delaware at such place or places as may be designated from time to time by the Board of Directors or in the Amended and Restated Bylaws of the corporation.

ARTICLE XIII

This Restated Certificate of Incorporation shall become effective at 5:00 p.m. on November 17, 1999.

CERTIFICATE OF DESIGNATIONS

of

SERIES A JUNIOR PARTICIPATING PREFERRED STOCK

of

RUDOLPH TECHNOLOGIES, INC.

(Pursuant to Section 151 of the

Delaware General Corporation Law)

     Rudolph Technologies, Inc., a corporation organized and existing under the General Corporation Law of the State of Delaware (hereinafter called the “Corporation ”), hereby certifies that the following resolution was adopted by the Board of Directors of the Corporation as required by Section 151 of the General Corporation Law at a meeting duly called and held on June 27, 2005.

 RESOLVED, that pursuant to the authority granted to and vested in the Board of Directors of this Corporation (hereinafter called the “Board of Directors ” or the “Board ”) in accordance with the provisions of the Restated Certificate of Incorporation of this Corporation, the Board of Directors hereby creates a series of Preferred Stock, par value $0.001 per share

(the “Preferred Stock ”), of the Corporation and hereby states the designation and number of shares, and fixes the relative rights, powers and preferences, and qualifications, limitations and restrictions thereof as follows:

Section 1. Designation and Amount. The shares of such series shall be designated as “Series A Junior Participating Preferred Stock” (the “Series A Preferred Stock ”) and the number of shares constituting the Series A Preferred Stock shall be 50,000. Such number of shares may be increased or decreased by resolution of the Board of Directors; provided, that no decrease shall reduce the number of shares of Series A Preferred Stock to a number less than the number of shares then outstanding plus the number of shares reserved for issuance upon the exercise of outstanding options, rights or warrants or upon the conversion of any outstanding securities issued by the Corporation convertible into Series A Preferred Stock.

Section 2. Dividends and Distributions.

 (A) Subject to the prior and superior rights of the holders of any shares of any class or series of stock of this Corporation ranking prior and superior to the Series A Preferred Stock with respect to dividends, the holders of shares of Series A Preferred Stock, in preference to the holders of Common Stock, par value $0.001 per share (the “Common Stock ”), of the Corporation, and of any other stock ranking junior to the Series A Preferred Stock, shall be entitled to receive, when, as and if declared by the Board of Directors out of funds legally available for the purpose, quarterly dividends payable in cash on the first day of March, June, September and December in each year (each such date being referred to herein as a “Quarterly Dividend Payment Date”), commencing on the first Quarterly Dividend Payment Date after the first issuance of a share or fraction of a share of Series A Preferred Stock, in an amount per share (rounded to the nearest cent) equal to the greater of (a) $10.00 or (b) subject to the provision for adjustment hereinafter set forth, 1,000 times the aggregate per share amount of all cash dividends, and 1,000 times the aggregate per share amount (payable in kind) of all non-cash dividends or other distributions, other than a dividend payable in shares of Common Stock or a subdivision of the outstanding shares of Common Stock (by reclassification or otherwise), declared on the Common Stock since the immediately preceding Quarterly Dividend Payment Date or, with respect to the first Quarterly Dividend Payment Date, since the first issuance of any share or fraction of a share of Series A Preferred Stock. In the event the Corporation shall at any time declare or pay any dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision, combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser number of shares of Common Stock, then in each such case the amount to which holders of shares of Series A Preferred Stock were entitled immediately prior to such event under clause (b) of the preceding sentence shall be adjusted by multiplying such amount by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event.

(B) The Corporation shall declare a dividend or distribution on the Series A Preferred Stock as provided in paragraph (A) of this Section 2 immediately after it declares a dividend or distribution on the Common Stock (other than a dividend payable in shares of Common Stock); provided that, in the event no dividend or distribution shall have been declared on the Common Stock during the period between any Quarterly Dividend Payment Date and the next subsequent Quarterly Dividend Payment Date, a dividend of $10.00 per share on the Series A Preferred Stock shall nevertheless be payable on such subsequent Quarterly Dividend Payment Date.

(C) Dividends shall begin to accrue and be cumulative on outstanding shares of Series A Preferred Stock from the Quarterly Dividend Payment Date next preceding the date of issue of such shares, unless the date of issue of such shares is prior to the record date for the first Quarterly Dividend Payment Date, in which case dividends on such shares shall begin to accrue from the date of issue of such shares, or unless the date of issue is a Quarterly Dividend Payment Date or is a date after the record date for the determination of holders of shares of Series A Preferred Stock entitled to receive a quarterly dividend and before such Quarterly Dividend Payment Date, in either of which events such dividends shall begin to accrue and be cumulative from such Quarterly Dividend Payment Date. Accrued but unpaid dividends shall not bear interest. Dividends paid on the shares of Series A Preferred Stock in an amount less than the total amount of such dividends at the time accrued and payable on such shares shall be allocated pro rata on a share-by-share basis among all such shares at the time outstanding. The Board of Directors may fix a record date for the determination of holders of shares of Series A Preferred Stock entitled to receive payment of a dividend or distribution declared thereon, which record date shall be not more than 60 days prior to the date fixed for the payment thereof.

Section 3. Voting Rights. The holders of shares of Series A Preferred Stock shall have the following voting rights:

(A) Subject to the provision for adjustment hereinafter set forth, each share of Series A Preferred Stock shall entitle the holder thereof to 1,000 votes on all matters submitted to a vote of the stockholders of the Corporation. In the event the Corporation shall at any time declare or pay any dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision, combination or consolidation of the outstanding shares of Common Stock (by reclassification or

otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser number of shares of Common Stock, then in each such case the number of votes per share to which holders of shares of Series A Preferred Stock were entitled immediately prior to such event shall be adjusted by multiplying such number by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event.

(B) Except as otherwise provided herein, in any other Certificate of Designations creating a series of Preferred Stock or any similar stock, or by law, the holders of shares of Series A Preferred Stock and the holders of shares of Common Stock and any other capital stock of the Corporation having general voting rights shall vote together as one class on all matters submitted to a vote of stockholders of the Corporation.

(C) Except as set forth herein, or as otherwise provided by law, holders of Series A Preferred Stock shall have no special voting rights and their consent shall not be required (except to the extent they are entitled to vote with holders of Common Stock as set forth herein) for taking any corporate action.

Section 4. Certain Restrictions.

 (A) Whenever quarterly dividends or other dividends or distributions payable on the Series A Preferred Stock as provided in Section 2 are in arrears, thereafter and until all accrued and unpaid dividends and distributions, whether or not declared, on shares of Series A Preferred Stock outstanding shall have been paid in full, the Corporation shall not:

(i) declare or pay dividends, or make any other distributions, on any shares of stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series A Preferred Stock;

(ii) declare or pay dividends, or make any other distributions, on any shares of stock ranking on a parity (either as to dividends or upon liquidation, dissolution or winding up) with the Series A Preferred Stock, except dividends paid ratably on the Series A Preferred Stock and all such parity stock on which dividends are payable or in arrears in proportion to the total amounts to which the holders of all such shares are then entitled;

(iii) redeem or purchase or otherwise acquire for consideration shares of any stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series A Preferred Stock, provided that the Corporation may at any time redeem, purchase or otherwise acquire shares of any such junior stock in exchange for shares of any stock of the Corporation ranking junior (both as to dividends and upon dissolution, liquidation or winding up) to the Series A Preferred Stock; or

(iv) redeem or purchase or otherwise acquire for consideration any shares of Series A Preferred Stock, or any shares of stock ranking on a parity with the Series A Preferred Stock, except in accordance with a purchase offer made in writing or by publication (as determined by the Board of Directors) to all holders of such shares upon such terms as the Board of Directors, after consideration of the respective annual dividend rates and other relative rights and preferences of the respective series and classes, shall determine in good faith will result in fair and equitable treatment among the respective series or classes.

(B) The Corporation shall not permit any subsidiary of the Corporation to purchase or otherwise acquire for consideration any shares of stock of the Corporation unless the Corporation could, under paragraph (A) of this Section 4, purchase or otherwise acquire such shares at such time and in such manner.

Section 5. Reacquired Shares. Any shares of Series A Preferred Stock purchased or otherwise acquired by the Corporation in any manner whatsoever shall be retired and canceled promptly after the acquisition thereof. All such shares shall upon their cancellation become authorized but unissued shares of Preferred Stock and may be reissued as part of a new series of Preferred Stock subject to the conditions and restrictions on issuance set forth herein, in the Restated Certificate of Incorporation, or in any other Certificate of Designations creating a series of Preferred Stock or any similar stock or as otherwise required by law.

 Section 6. Liquidation, Dissolution or Winding Up.

(A) Upon any liquidation, dissolution or winding up of the Corporation, voluntary or otherwise no distribution shall be made (1) to the holders of shares of stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series A Preferred Stock unless, prior thereto, the holders of shares of Series A Preferred Stock shall have received an amount per share (the “Series A Liquidation Preference ”) equal to $1,000 per share, plus an amount equal to accrued and unpaid dividends and distributions thereon, whether or not declared, to the date of such payment, provided that the holders of shares of Series A Preferred Stock shall be entitled to receive an aggregate amount per share, subject to the provision for adjustment hereinafter set forth, equal to 1,000 times the aggregate amount to be distributed per share to holders of shares of Common Stock, or (2) to the holders of shares of stock ranking on a parity (either as to dividends or upon liquidation, dissolution or winding up) with the Series A Preferred Stock, except distributions made ratably on the Series A Preferred Stock

and all such parity stock in proportion to the total amounts to which the holders of all such shares are entitled upon such liquidation, dissolution or winding up. In the event the Corporation shall at any time declare or pay any dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision, combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser number of shares of Common Stock, then in each such case the aggregate amount to which holders of shares of Series A Preferred Stock were entitled immediately prior to such event under the proviso in clause (1) of the preceding sentence shall be adjusted by multiplying such amount by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that are outstanding immediately prior to such event.

(B) In the event, however, that there are not sufficient assets available to permit payment in full of the Series A Liquidation Preference and the liquidation preferences of all other classes and series of stock of the Corporation, if any, that rank on a parity with the Series A Preferred Stock in respect thereof, then the assets available for such distribution shall be distributed ratably to the holders of the Series A Preferred Stock and the holders of such parity shares in proportion to their respective liquidation preferences.

(C) Neither the merger or consolidation of the Corporation into or with another corporation nor the merger or consolidation of any other corporation into or with the Corporation shall be deemed to be a liquidation, dissolution or winding up of the Corporation within the meaning of this Section 6.

Section 7. Consolidation, Merger, etc. In case the Corporation shall enter into any consolidation, merger, combination or other transaction in which the shares of Common Stock are exchanged for or changed into other stock or securities, cash and/or any other property, then in any such case each share of Series A Preferred Stock shall at the same time be similarly exchanged or changed into an amount per share, subject to the provision for adjustment hereinafter set forth, equal to 1,000 times the aggregate amount of stock, securities, cash and/or any other property (payable in kind), as the case may be, into which or for which each share of Common Stock is changed or exchanged. In the event the Corporation shall at any time declare or pay any dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision, combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser number of shares of Common Stock, then in each such case the amount set forth in the preceding sentence with respect to the exchange or change of shares of Series A Preferred Stock shall be adjusted by multiplying such amount by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event.

Section 8. No Redemption. The shares of Series A Preferred Stock shall not be redeemable by the Corporation.

Section 9. Rank. The Series A Preferred Stock shall rank, with respect to the payment of dividends and the distribution of assets upon liquidation, dissolution or winding up, junior to all series of any other class of the Corporation's Preferred Stock, except to the extent that any such other series specifically provides that it shall rank on a parity with or junior to the Series A Preferred Stock.

Section 10. Amendment. At any time any shares of Series A Preferred Stock are outstanding, the Restated Certificate of Incorporation of the Corporation shall not be amended in any manner which would materially alter or change the powers, preferences or special rights of the Series A Preferred Stock so as to affect them adversely without the affirmative vote of the holders of at least two-thirds of the outstanding shares of Series A Preferred Stock, voting separately as a single class.

Section 11. Fractional Shares. Series A Preferred Stock may be issued in fractions of a share that shall entitle the holder, in proportion to such holder's fractional shares, to exercise voting rights, receive dividends, participate in distributions and to have the benefit of all other rights of holders of Series A Preferred Stock.

EX-3.2

Exhibit 3.2

CERTIFICATE OF AMENDMENT OF

RESTATED CERTIFICATE OF INCORPORATION OF

RUDOLPH TECHNOLOGIES, INC.

Pursuant to Section 242 of the General

Corporation Law of the State of Delaware

The undersigned, being a duly appointed officer of Rudolph Technologies, Inc. (the “Corporation”), a corporation organized and existing under and by virtue of the Delaware General Corporation Law (the “DGCL”), for the purpose of amending the Corporation's Restated Certificate of Incorporation (the “Restated Certificate of Incorporation”) filed pursuant to Section 102 of the DGCL, hereby certifies, pursuant to Sections 242 and 103 of the DGCL, as follows:

FIRST: That the Board of Directors of the Corporation, at a meeting of the Board of Directors of the Corporation, adopted resolutions setting forth a certain proposed amendment to the Restated Certificate of Incorporation declaring said amendment to be advisable and calling for the stockholders of the Corporation to consider said amendment at the next meeting annual meeting of the stockholders.

SECOND: The amendment effected hereby was duly authorized by the Corporation's Board of Directors and stockholders in accordance with the provisions of Sections 141 and 242 of the DGCL and shall be executed, acknowledged and filed in accordance with Section 103 of the DGCL.

THIRD: That the first paragraph of Article IV of the Restated Certificate of Incorporation, filed with the Secretary of the State of Delaware on November 17, 1999, is hereby amended in its entirety to read as follows:

“ARTICLE IV

The corporation is authorized to issue two classes of shares of stock to be designated, respectively, Common Stock, $0.001 par value, and Preferred Stock, $0.001 par value. The total number of shares that the corporation is authorized to issue is 105,000,000 shares. The number of shares of Common Stock authorized is 100,000,000. The number of shares of Preferred Stock authorized is 5,000,000.”

IN WITNESS WHEREOF, I have signed this certificate this 28th day of May, 2013.

RUDOLPH TECHNOLOGIES, INC.

By: /s/ Paul F. McLaughlin

Name: Paul F. McLaughlin

Title: Chairman & Chief Executive Officer

EX-31.1

Exhibit 31.1

Certification of Chief Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Paul F. McLaughlin, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Rudolph Technologies, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 2, 2013

By:	/s/ PAUL F. MCLAUGHLIN
	Paul F. McLaughlin Chairman and Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification of Chief Financial Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Steven R. Roth, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Rudolph Technologies, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 2, 2013

By:	/s/ STEVEN R. ROTH
	Steven R. Roth Senior Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Paul F. McLaughlin, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report of Rudolph Technologies, Inc. on Form 10-Q for the quarter ended June 30, 2013 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Quarterly Report on Form 10-Q fairly presents in all material respects the financial condition and results of operations of Rudolph Technologies, Inc.

Date: August 2, 2013

By:	/s/  PAUL F. MCLAUGHLIN
	Paul F. McLaughlin Chairman and Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Steven R. Roth, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report of Rudolph Technologies, Inc. on Form 10-Q for the quarter ended June 30, 2013 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Quarterly Report on Form 10-Q fairly presents in all material respects the financial condition and results of operations of Rudolph Technologies, Inc.

Date: August 2, 2013

By:	/s/  STEVEN R. ROTH
	Steven R. Roth Senior Vice President and Chief Financial Officer

XML

Other Expense (Income)

6 Months Ended

Jun. 30, 2013

Other Income (Expense) [Abstract]

Other Income and Other Expense Disclosure [Text Block]

Other Income

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
Foreign currency exchange gains, net	$	(398	)	$	(523	)	$	(49	)	$	(105	)
Other	—			—			—			1
Total other income	$	(398	)	$	(523	)	$	(49	)	$	(104	)

XML

Earnings Per Share - (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Earnings Per Share [Abstract]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	711	1,021	760	1,001
Net Income (Loss) Attributable to Parent	$ 759	$ 6,346	$ 1,152	$ 8,208
Weighted Average Number of Shares Outstanding, Basic	32,567	32,144	32,633	32,110
Weighted Average Number Diluted Shares Outstanding Adjustment	588	583	651	635
Weighted Average Number of Shares Outstanding, Diluted	33,155	32,727	33,284	32,745
Earnings Per Share, Basic	$ 0.02	$ 0.20	$ 0.04	$ 0.26
Earnings Per Share, Diluted	$ 0.02	$ 0.19	$ 0.03	$ 0.25

XML

Statements of Income Statement (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Revenues	$ 46,059	$ 56,326	$ 87,709	$ 102,035
Cost of Revenue	22,544	26,104	42,320	48,048
Gross Profit	23,515	30,222	45,389	53,987
Research and Development Expense	10,214	9,385	19,917	19,187
Selling, General and Administrative Expense	10,519	9,934	20,771	19,113
Amortization of Intangible Assets	648	416	1,264	832
Operating Expenses	21,381	19,735	41,952	39,132
Operating Income (Loss)	2,134	10,487	3,437	14,855
Interest Expense, net	1,200	1,079	2,409	2,155
Total other expenses (income)	(398)	(523)	(49)	(104)
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest	1,332	9,931	1,077	12,804
Income Tax Expense (Benefit)	573	3,585	(75)	4,596
Net Income (Loss) Attributable to Parent	$ 759	$ 6,346	$ 1,152	$ 8,208
Earnings Per Share, Basic	$ 0.02	$ 0.20	$ 0.04	$ 0.26
Earnings Per Share, Diluted	$ 0.02	$ 0.19	$ 0.03	$ 0.25
Weighted Average Number of Shares Outstanding, Basic	32,567	32,144	32,633	32,110
Weighted Average Number of Shares Outstanding, Diluted	33,155	32,727	33,284	32,745

XML

Marketable Securities

6 Months Ended

Jun. 30, 2013

Marketable Securities [Abstract]

Marketable Securities [Text Block]

Marketable Securities

The Company has evaluated its investment policies and determined that all of its investment securities are to be classified as available-for-sale.  Available-for-sale securities are carried at fair value, with the unrealized gains and losses reported in Stockholders’ Equity under the caption “Accumulated other comprehensive loss.”  Realized gains and losses on available-for-sale securities are included in “Other income” in the Condensed Consolidated Statements of Operations.  The Company records other-than-temporary impairment charges for its available-for-sale investments when it intends to sell the securities, it is more-likely-than not that it will be required to sell the securities before a recovery, or when it does not expect to recover the entire amortized cost basis of the securities.  The cost of securities sold is based on the specific identification method.

As of June 30, 2013, the Company held one auction-rate security with a fair value of $302. The underlying asset of the Company’s auction-rate security consisted of a municipal bond with an auction reset feature. Due to auction failures in the marketplace, the Company will not have access to these funds unless (a) future auctions occur and are successful, (b) the security is called by the issuer, (c) the Company sells the security in an available secondary market, or (d) the underlying note matures. Currently, there are no active secondary markets. As of June 30, 2013, the Company had recorded a cumulative temporary unrealized impairment loss of $173 within “Accumulated other comprehensive loss” based upon its assessment of the fair value of this security. The Company believes that this impairment is temporary, as it does not intend to sell this security, the Company will not be required to sell this security before recovery, and the Company expects to recover the amortized cost basis of this security.

The Company has determined that the gross unrealized losses on its marketable securities at June 30, 2013 and December 31, 2012 are temporary in nature. The Company reviews its investment portfolio to identify and evaluate investments that have indications of possible impairment. Factors considered in determining whether a loss is other-than-temporary include the length of time and extent to which fair value has been less than the cost basis, credit quality and the Company’s ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value.

At June 30, 2013 and December 31, 2012, marketable securities are categorized as follows:

	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Fair Value
June 30, 2013
Municipal notes and bonds	$	90,199	$	40	$	(8	)	$	90,231
Corporate bonds	500		—		—			500
Auction rate securities	475		—		(173		)	302
Total marketable securities	$	91,174	$	40	$	(181	)	$	91,033
December 31, 2012
Municipal notes and bonds	$	64,088	$	36	$	(7	)	$	64,117
Corporate bonds	500		—		—			500
Auction rate securities	475		—		(129		)	346
Total marketable securities	$	65,063	$	36	$	(136	)	$	64,963

 The amortized cost and estimated fair value of marketable securities classified by the maturity date listed on the security, regardless of the Condensed Consolidated Balance Sheet classification, is as follows at June 30, 2013 and December 31, 2012:

	June 30, 2013				December 31, 2012
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due within one year	$	78,692	$	78,723	$	57,367	$	57,390
Due after one through five years	9,731		9,732		7,016		7,022
Due after five through ten years	738		738		205		205
Due after ten years	2,013		1,840		475		346
Total marketable securities	$	91,174	$	91,033	$	65,063	$	64,963

The following table summarizes the estimated fair value and gross unrealized holding losses of marketable securities, aggregated by investment instrument and period of time in an unrealized loss position at June 30, 2013 and December 31, 2012:  

	In Unrealized Loss Position For Less Than 12 Months					In Unrealized Loss Position For Greater Than 12 Months
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
June 30, 2013
Municipal notes and bonds	$	11,175	$	(8	)	$	—	$	—
Auction rate securities	—		—			302		(173		)
Total	$	11,175	$	(8	)	$	302	$	(173	)
December 31, 2012
Municipal notes and bonds	$	9,037	$	(7	)	$	—	$	—
Auction rate securities	—		—			346		(129		)
Total	$	9,037	$	(7	)	$	346	$	(129	)

See Note 3 for additional discussion regarding the fair value of the Company’s marketable securities.

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Marketable Securities - (Tables)

6 Months Ended

Jun. 30, 2013

Schedule of Available-for-sale Securities [Line Items]

Schedule of marketable securities by category [Table Text Block]

At June 30, 2013 and December 31, 2012, marketable securities are categorized as follows:

	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Fair Value
June 30, 2013
Municipal notes and bonds	$	90,199	$	40	$	(8	)	$	90,231
Corporate bonds	500		—		—			500
Auction rate securities	475		—		(173		)	302
Total marketable securities	$	91,174	$	40	$	(181	)	$	91,033
December 31, 2012
Municipal notes and bonds	$	64,088	$	36	$	(7	)	$	64,117
Corporate bonds	500		—		—			500
Auction rate securities	475		—		(129		)	346
Total marketable securities	$	65,063	$	36	$	(136	)	$	64,963

Schedule of marketable securities classified by contractual maturity date [Table Text Block]

The amortized cost and estimated fair value of marketable securities classified by the maturity date listed on the security, regardless of the Condensed Consolidated Balance Sheet classification, is as follows at June 30, 2013 and December 31, 2012:

	June 30, 2013				December 31, 2012
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due within one year	$	78,692	$	78,723	$	57,367	$	57,390
Due after one through five years	9,731		9,732		7,016		7,022
Due after five through ten years	738		738		205		205
Due after ten years	2,013		1,840		475		346
Total marketable securities	$	91,174	$	91,033	$	65,063	$	64,963

Schedule of marketable securities in unrealized loss positions [Table Text Block]

The following table summarizes the estimated fair value and gross unrealized holding losses of marketable securities, aggregated by investment instrument and period of time in an unrealized loss position at June 30, 2013 and December 31, 2012:  

	In Unrealized Loss Position For Less Than 12 Months					In Unrealized Loss Position For Greater Than 12 Months
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
June 30, 2013
Municipal notes and bonds	$	11,175	$	(8	)	$	—	$	—
Auction rate securities	—		—			302		(173		)
Total	$	11,175	$	(8	)	$	302	$	(173	)
December 31, 2012
Municipal notes and bonds	$	9,037	$	(7	)	$	—	$	—
Auction rate securities	—		—			346		(129		)
Total	$	9,037	$	(7	)	$	346	$	(129	)

XML

Segment Reporting and Geographic Information Geographic Information (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Segment Reporting Information [Line Items]
Revenues	$ 46,059,000	$ 56,326,000	$ 87,709,000	$ 102,035,000
UNITED STATES
Segment Reporting Information [Line Items]
Revenues	10,077,000	8,783,000	19,478,000	18,137,000
Taiwan [Member]
Segment Reporting Information [Line Items]
Revenues	19,490,000	15,269,000	32,621,000	23,934,000
JAPAN
Segment Reporting Information [Line Items]
Revenues	1,319,000	4,007,000	3,707,000	5,401,000
CHINA
Segment Reporting Information [Line Items]
Revenues	4,520,000	4,076,000	7,269,000	5,989,000
South Korea [Domain]
Segment Reporting Information [Line Items]
Revenues	1,644,000	10,842,000	5,067,000	25,334,000
Segment, Geographical, Groups of Countries, Group One [Member]
Segment Reporting Information [Line Items]
Revenues	3,167,000	4,899,000	8,575,000	10,003,000
Austria [Domain]
Segment Reporting Information [Line Items]
Revenues	174,000	4,982,000	460,000	7,580,000
GERMANY
Segment Reporting Information [Line Items]
Revenues	1,550,000	1,368,000	4,075,000	1,741,000
Segment, Geographical, Groups of Countries, Group Two [Member]
Segment Reporting Information [Line Items]
Revenues	4,118,000	2,100,000	6,457,000	3,916,000
Sales [Member]
Segment Reporting Information [Line Items]
Revenues	$ 46,059,000	$ 56,326,000	$ 87,709,000	$ 102,035,000

XML

Income Taxes

6 Months Ended

Jun. 30, 2013

Income Taxes [Abstract]

Income Tax Disclosure [Text Block]

Income Taxes

The following table provides details of income taxes:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
Income before income taxes	$	1,332		$	9,931		$	1,077		$	12,804
Provision (benefit) for income taxes	$	573		$	3,585		$	(75	)	$	4,596
Effective tax rate	43.0		%	36.1		%	(7.0		)%	35.9		%

The income tax provision for the three and six months endedJune 30, 2013 was computed based on the Company’s annual forecast of profit by jurisdiction and forecasted effective tax rate for the year. The changes in the effective tax rate for the three months endedJune 30, 2013 compared to the same period for the prior year are primarily due to discrete items recorded in the quarter. The changes in the Company’s effective tax rate for the six months endedJune 30, 2013 compared to the same period for the prior year are primarily due to anticipated generation of federal R&D credits, which were not available in the 2012 period as a result of legislation.

The Company currently has a partial valuation allowance recorded against certain deferred tax assets. Each quarter, the Company assesses the likelihood that it will be able to recover its deferred tax assets. The Company considers available evidence, both positive and negative, including prudent and feasible tax planning strategies in assessing the need for a valuation allowance. As a result of the Company’s analysis, it concluded that it is more likely than not that a portion of its net deferred tax assets will not be realized. Therefore, the Company continues to provide a valuation allowance against certain net deferred tax assets. The Company continues to closely monitor available evidence and may reverse some or all of the remaining valuation allowance in future periods, if appropriate. The Company has a valuation allowance of $1,361 as of June 30, 2013.

In the normal course of business, the Company is subject to examination by taxing authorities throughout the world. The Company is currently under a federal income tax examination by the Internal Revenue Service for the tax years ended December 31, 2007 through December 31, 2009. In addition, the Company is under examination by the State of New York for the tax years 2009 through 2011. The Company has not been contacted by any other U.S. state, local or foreign tax authority for all open tax periods beginning after December 31, 2007.

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Commitments and Contingencies Letter of Credit (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013
Loss Contingencies [Line Items]
MaximumCapacityToGuaranteeUnderExistingLettersOfCredit	$ 40,000

XML

Segment Reporting and Geographic Information Customer Reporting (Details)	3 Months Ended
	Jun. 30, 2013 Rate	Jun. 30, 2012 Rate
Segment Reporting Information [Line Items]
Entity-Wide Revenue, Major Customer, Percentage	11.00%	1.70%
Major Customers Two [Domain]
Segment Reporting Information [Line Items]
Entity-Wide Revenue, Major Customer, Percentage	10.80%	5.30%
Major Customer Three [Domain]
Segment Reporting Information [Line Items]
Entity-Wide Revenue, Major Customer, Percentage	10.00%	7.10%
Major Customer Four [Domain]
Segment Reporting Information [Line Items]
Entity-Wide Revenue, Major Customer, Percentage	2.10%	18.40%
Major Customer Five [Domain]
Segment Reporting Information [Line Items]
Entity-Wide Revenue, Major Customer, Percentage	1.10%	12.50%

XML

Marketable Securities - (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Failed Auction, Value	$ 302	$ 346
Unrealized Gain (Loss) on Investments	173
Available-for-sale Securities, Amortized Cost Basis	91,174	65,063
Available-for-sale Securities, Fair Value Disclosure	91,033	64,963
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract]
Available-for-sale Securities, Debt Maturities, within One Year, Amortized Cost Basis	78,692	57,367
Available-for-sale Securities, Debt Maturities, within One Year, Fair Value	78,723	57,390
Available-for-sale Securities, Debt Maturities, Rolling Year Two Through Five, Amortized Cost Basis	9,731	7,016
Available-for-sale Securities, Debt Maturities, Rolling Year Two Through Five, Fair Value	9,732	7,022
Available-for-sale Securities, Debt Maturities, after Five Through Ten Years, Amortized Cost Basis	738	205
Available-for-sale Securities, Debt Maturities, after Five Through Ten Years, Fair Value	738	205
Available-for-sale Securities, Debt Maturities, after Ten Years, Amortized Cost Basis	2,013	475
Held-to-maturity Securities, Debt Maturities, after Ten Years, Fair Value	1,840	346
US Government and Government Agencies and Authorities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	90,199	64,088
Available-for-sale Securities, Gross Unrealized Gains	40	36
Available-for-sale Securities, Gross Unrealized Losses	(8)	(7)
Available-for-sale Securities, Fair Value Disclosure	90,231	64,117
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	11,175	9,037
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses	(8)	(7)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses	0	0
Corporate Bond Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	500	500
Available-for-sale Securities, Gross Unrealized Gains	0	0
Available-for-sale Securities, Gross Unrealized Losses	0	0
Available-for-sale Securities, Fair Value Disclosure	500	500
Auction Rate Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	475	475
Available-for-sale Securities, Gross Unrealized Gains	0	0
Available-for-sale Securities, Gross Unrealized Losses	(173)	(129)
Available-for-sale Securities, Fair Value Disclosure	302	346
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	302	346
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses	(173)	(129)
Available-for-sale Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Amortized Cost Basis	91,174	65,063
Available-for-sale Securities, Gross Unrealized Gains	40	36
Available-for-sale Securities, Gross Unrealized Losses	(181)	(136)
Available-for-sale Securities, Fair Value Disclosure	91,033	64,963
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	11,175	9,037
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses	(8)	(7)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	302	346
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses	$ (173)	$ (129)

XML

Balance Sheet Details - (Tables)

6 Months Ended

Jun. 30, 2013

Balance Sheet Detail [Abstract]

Schedule of Inventory, Current [Table Text Block]

Inventories

Inventories are comprised of the following:

	June 30, 2013		December 31, 2012
Materials	$	37,218	$	31,629
Work-in-process	19,868		15,889
Finished goods	14,970		15,904
Total inventories	$	72,056	$	63,422

Property, Plant and Equipment [Table Text Block]

Property, Plant and Equipment

Property, plant and equipment, net is comprised of the following:

	June 30, 2013			December 31, 2012
Land and building	$	4,997		$	4,997
Machinery and equipment	19,112			18,826
Furniture and fixtures	3,829			3,381
Computer equipment	8,093			7,789
Leasehold improvements	8,125			6,807
	44,156			41,800
Accumulated depreciation	(31,672		)	(29,891		)
Total property, plant and equipment, net	$	12,484		$	11,909

Schedule of Other Assets [Table Text Block]

Other assets

Other assets is comprised of the following:

	June 30, 2013		December 31, 2012
Deferred income taxes	$	32,881	$	32,800
Capitalized software	20		201
Other	1,909		1,893
Total other assets	$	34,810	$	34,894

Other Current liabilities [Table Text Block]

Other current liabilities

Other current liabilities is comprised of the following:

	June 30, 2013		December 31, 2012
Litigation accrual	$	4,293	$	4,293
Deferred revenue	9,011		11,170
Other	5,321		5,889
Total other current liabilities	$	18,625	$	21,352

Other Non-current liabilities [Table Text Block]

Other non-current liabilities

Other non-current liabilities is comprised of the following:

	June 30, 2013		December 31, 2012
Unrecognized tax benefits (including interest)	$	6,274	$	5,871
Contingent consideration - acquisitions	5,773		—
Other	1,905		2,166
Total other non-current liabilities	$	13,952	$	8,037

XML

Identifiable Intangible Assets and Goodwill - (Tables)

6 Months Ended

Jun. 30, 2013

Identifiable Intangible Assets and Goodwill [Abstract]

Schedule of Goodwill [Table Text Block]

The changes in the carrying amount of goodwill are as follows:

Balance at December 31, 2012	$	11,371
Tamar acquisition	7,939
Other	(12		)
Balance at June 30, 2013	$	19,298

Schedule of Finite-Lived Intangible Assets by Major Class [Table Text Block]

Purchased intangible assets as of  June 30, 2013 and December 31, 2012 are as follows:

	Gross Carrying Amount		Accumulated Amortization		Net
June 30, 2013
Developed technology	$	59,735	$	50,416	$	9,319
Customer and distributor relationships	9,491		7,253		2,238
Trade names	4,361		3,267		1,094
Total identifiable intangible assets	$	73,587	$	60,936	$	12,651
December 31, 2012
Developed technology	$	58,961	$	49,358	$	9,603
Customer and distributor relationships	8,712		7,102		1,610
Trade names	4,361		3,216		1,145
Total identifiable intangible assets	$	72,034	$	59,676	$	12,358

XML

Debt Obligations - (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012	Jul. 25, 2011
Debt Obligations [Abstract]
Convertible Debt	$ 60,000		$ 60,000		$ 60,000	$ 60,000
Debt Instrument, Interest Rate, Stated Percentage						3.75%
Convertible Preferred Stock, Shares Issued upon Conversion						77.241
Note increment for which conversion amount of Common Stock based						1
Debt Instrument, Convertible, Conversion Price						$ 12.95
Class of Warrant or Right, Exercise Price of Warrants or Rights						$ 17.00
Proceeds from Convertible Debt	50,249
Debt Instrument, Unamortized Discount	9,653		9,653		10,990
Convertible senior notes	50,347		50,347		49,010
Contractual Interest Coupon	562	562	1,124	1,125
Amortization of Debt Discount (Premium)	670	608	1,337	1,213
Amortization of Financing Costs	73	60	145	119
Interest Expense, Debt	$ 1,305	$ 1,230	$ 2,606	$ 2,457

XML

Accumulated Other Comprehensive Loss (Tables)

6 Months Ended

Jun. 30, 2013

Accumulated Other Comprehensive Loss [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

The components of accumulated other comprehensive loss, net of tax, are as follows:

	Foreign currency translation adjustments		Net unrealized losses on available-for-sale investments		Accumulated other comprehensive loss
Beginning Balance, December 31, 2012	$	985	$	100	$	1,085
Net current period other comprehensive loss	948		41		989
Reclassifications	—		—		—
Ending balance, June 30, 2013	$	1,933	$	141	$	2,074

XML

Identifiable Intangible Assets - (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012
Finite-Lived Intangible Assets and Goodwill [Line Items]
Goodwill	$ 19,298		$ 19,298		$ 11,371
Business Acquisition, Purchase Price Allocation, Goodwill Amount	7,939		7,939
Business Acquisition Purchase Price Allocation Goodwill Amount 2	(12)		(12)
Finite-Lived Intangible Assets, Gross	73,587		73,587		72,034
Finite-Lived Intangible Assets, Accumulated Amortization	60,936		60,936		59,676
Intangible Assets, Net (Excluding Goodwill)	12,651		12,651		12,358
Amortization of Intangible Assets	648	416	1,264	832
Future Amortization Expense, Remainder of Fiscal Year	1,328		1,328
Future Amortization Expense, Year One	2,400		2,400
Future Amortization Expense, Year Two	2,028		2,028
Future Amortization Expense, Year Three	1,919		1,919
Future Amortization Expense, Year Four	1,531		1,531
Future Amortization Expense, Year Five	1,095		1,095
Developed Technology Rights [Member]
Finite-Lived Intangible Assets and Goodwill [Line Items]
Finite-Lived Intangible Assets, Gross	59,735		59,735		58,961
Finite-Lived Intangible Assets, Accumulated Amortization	50,416		50,416		49,358
Intangible Assets, Net (Excluding Goodwill)	9,319		9,319		9,603
Customer Relationships [Member]
Finite-Lived Intangible Assets and Goodwill [Line Items]
Finite-Lived Intangible Assets, Gross	9,491		9,491		8,712
Finite-Lived Intangible Assets, Accumulated Amortization	7,253		7,253		7,102
Intangible Assets, Net (Excluding Goodwill)	2,238		2,238		1,610
Trade Names [Member]
Finite-Lived Intangible Assets and Goodwill [Line Items]
Finite-Lived Intangible Assets, Gross	4,361		4,361		4,361
Finite-Lived Intangible Assets, Accumulated Amortization	3,267		3,267		3,216
Intangible Assets, Net (Excluding Goodwill)	$ 1,094		$ 1,094		$ 1,145

XML

Legal Matters (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013
Loss Contingencies [Line Items]
Loss Contingency, Damages Awarded, Value	$ 15,475
Estimated Litigation Liability	4,293
Estimated litigation liabilty unaccrued	3,391
Minimum [Member]
Loss Contingencies [Line Items]
Loss Contingency, Range of Possible Loss, Minimum	25
Maximum [Member]
Loss Contingencies [Line Items]
Loss Contingency, Range of Possible Loss, Maximum	$ 31,641

XML

Other Income - (Tables)

6 Months Ended

Jun. 30, 2013

Other Income (Expense) [Abstract]

Schedule of Other Nonoperating Income (Expense) [Table Text Block]

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
Foreign currency exchange gains, net	$	(398	)	$	(523	)	$	(49	)	$	(105	)
Other	—			—			—			1
Total other income	$	(398	)	$	(523	)	$	(49	)	$	(104	)

XML

Balance Sheet Details - Other Assets (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Other Assets [Abstract]
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent	$ 32,881	$ 32,800
Capitalized Software Development Costs for Software Sold to Customers	20	201
Other	1,909	1,893
Total Other Assets	$ 34,810	$ 34,894

XML

Derivative Instruments and Hedging Activities Derivative Instruments and Hedging Activities - (Tables)

6 Months Ended

Jun. 30, 2013

Derivative Instruments and Hedging Activities [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

The dollar equivalent of the U.S. dollar forward contracts and related fair values as of June 30, 2013 and December 31, 2012 were as follows:

	June 30, 2013		December 31, 2012
Notional amount	$	450	$	3,457
Fair value of asset	$	13	$	268

XML

Statements of Cash Flows Statement (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Net Income (Loss) Attributable to Parent	$ 1,152	$ 8,208
Amortization	1,444	1,012
Amortization of Financing Costs and Discounts	1,482	1,332
Depreciation	2,067	1,986
Foreign Currency Transaction Gain (Loss), before Tax	(49)	(105)
Share-based Compensation	1,955	2,018
Provision for doubtful accounts and inventory valuation	1,673	949
Decrease (Increase) in Accounts Receivable	(4,376)	(11,777)
Decrease (Increase) in Inventories	(10,815)	(5,056)
Decrease (Increase) in Prepaid Expense and Other Assets	(1,165)	(2,334)
Increase (Decrease) in Accounts Payable and Accrued Liabilities	3,387	7,089
Increase (Decrease) in Other Current Liabilities	(3,081)	6,337
Increase (Decrease) in Other Noncurrent Liabilities	238	25
Net Cash Provided by (Used in) Operating Activities	(6,088)	9,684
Payments to Acquire Marketable Securities	(61,414)	(51,648)
Proceeds from Sale and Maturity of Marketable Securities	35,440	43,774
Payments to Acquire Property, Plant, and Equipment	(2,485)	(909)
Cash Acquired from Acquisition	(3,365)	(7,640)
Net Cash Provided by (Used in) Investing Activities	(31,824)	(16,423)
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options	630	101
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Financing Activities	611	171
Net Cash Provided by (Used in) Financing Activities	1,241	272
Effect of Exchange Rate on Cash and Cash Equivalents	(790)	(184)
Cash and Cash Equivalents, Period Increase (Decrease)	(37,461)	(6,651)
Cash and Cash Equivalents, at Carrying Value	66,792	90,020
Income Taxes Paid	3,923	1,079
Interest Paid	$ 1,125	$ 1,063

XML

Business Combination

6 Months Ended

Jun. 30, 2013

Business Combination [Abstract]

Business Combination Disclosure [Text Block]

Business Combinations

Tamar Technology

In April 2013, the Company announced that it had acquired specific assets of Tamar Technology, located in Newbury Park, California (“Tamar acquisition”). The Company paid $3,365 of the purchase price in cash and accrued an additional $6,198 for contingent consideration. The acquired business has been integrated into the Company’s inspection technology group.  The impact of the acquisition was not material to the Company’s consolidated financial position or results of operations.

NanoPhotonics

In June 2012, the Company announced that it had acquired specific assets and liabilities of NanoPhotonics GmbH, located in Mainz, Germany (“NanoPhotonics acquisition”). The acquired business has been integrated into the Company’s inspection technology group.  The impact of the acquisition was not material to the Company’s consolidated financial position or results of operations.

Azores

In December 2012, the Company announced that it had acquired Azores Corporation, located in Wilmington, Massachusetts (“Azores acquisition”). The acquired business marks the Company's entry into the advanced packaging and FPD lithography markets and forms the Company’s lithography systems group. The impact of the acquisition was not material to the Company’s consolidated financial position or results of operations.

The Company made a preliminary allocation of the purchase price to the assets acquired and liabilities assumed as of the acquisition date for the Azores acquisition and the Tamar acquisition. The Company will finalize its analysis of the purchase price allocation within the first year of the acquisitions, and therefore adjustments to goodwill and identifiable intangible assets may occur. The Company has finalized the purchase price allocation of the NanoPhotonics acquisition.

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Derivative Instruments and Hedging Activities

6 Months Ended

Jun. 30, 2013

Derivative Instruments and Hedging Activities [Abstract]

Derivative Instruments and Hedging Activities Disclosure [Text Block]

Derivative Instruments and Hedging Activities

The Company, when it considers it to be appropriate, enters into forward contracts to hedge the economic exposures arising from foreign currency denominated transactions. At June 30, 2013 and December 31, 2012, these contracts included the future sale of Japanese Yen to purchase U.S. dollars. Derivative instruments are recognized as either “Prepaid expenses and other current assets” or “Other current liabilities” in the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Cash Flows and are measured at fair value. The foreign currency forward contracts were entered into by the Company’s Japanese subsidiary to economically hedge a portion of certain intercompany obligations. The forward contracts are not designated as hedges for accounting purposes and therefore, decreases in the fair value of $255 and $163 for the six month periods ended June 30, 2013 and 2012, respectively, are recorded within the caption “Other income” in the Condensed Consolidated Statements of Operations.

The dollar equivalent of the U.S. dollar forward contracts and related fair values as of June 30, 2013 and December 31, 2012 were as follows:

	June 30, 2013		December 31, 2012
Notional amount	$	450	$	3,457
Fair value of asset	$	13	$	268

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Fair Value Measurements

6 Months Ended

Jun. 30, 2013

Fair Value Measurements [Abstract]

Fair Value Disclosures [Text Block]

Fair Value Measurements

The Company applies a three-level valuation hierarchy for fair value measurements. This hierarchy prioritizes the inputs into three broad levels.  Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the asset or liability. Level 3 inputs are unobservable inputs based on management’s assumptions used to measure assets and liabilities at fair value. A financial asset’s or liability’s fair value measurement classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

The following tables provide the assets and liabilities carried at fair value measured on a recurring basis at June 30, 2013 and December 31, 2012:

			Fair Value Measurements Using
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
June 30, 2013
Assets:
Available-for-sale debt securities:
Municipal notes and bonds	$	90,231	$	—	$	90,231	$	—
Corporate bonds	500		—		500		—
Auction rate securities	302		—		—		302
Foreign currency forward contracts	13		—		13		—
Total Assets	$	91,046	$	—	$	90,744	$	302
Liabilities:
Contingent consideration - acquisitions	$	6,198	$	—	$	—	$	6,198
Total Liabilities	$	6,198	$	—	$	—	$	6,198
December 31, 2012
Assets:
Available-for-sale debt securities:
Municipal notes and bonds	$	64,117	$	—	$	64,117	$	—
Corporate bonds	500		—		500		—
Auction rate securities	346		—		—		346
Foreign currency forward contracts	268		—		268		—
Total Assets	$	65,231	$	—	$	64,885	$	346

Level 1 investments are based on quoted prices that are available in active markets.

The Company’s investments classified as Level 2 are valued using observable inputs to quoted market prices, benchmark yields, reported trades, broker/dealer quotes or alternative pricing sources with reasonable levels of price transparency. The foreign currency forward contracts are primarily measured based on the foreign currency spot and forward rates quoted by the banks or foreign currency dealers. Available-for-sale debt securities prices are obtained from third party pricing providers, which models prices utilizing the above observable inputs, for each asset class.

Level 3 investments consist of an auction rate security and contingent consideration related to an acquisition for which the Company uses a discounted cash flow model to value these investments. The Level 3 assumptions used in the discounted cash flow model for the auction rate security included estimates of interest rates of 3.2%, timing of cash flows and expected holding periods. Changes in the unobservable input values would be unlikely to cause material changes in the fair value of the auction rate security. The level 3 assumptions used in the discounted cash flow model for the contingent consideration included projected revenues, estimates of discount rates of 1.2% and timing of cash flows. A significant decrease in the projected revenues could result in a significantly lower fair value measurement for the contingent consideration.

This table presents a reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the six months endedJune 30, 2013:

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Balance at December 31, 2012	$	346
Unrealized loss in accumulated other comprehensive loss	(44		)
Purchases	(6,198		)
Sales, issuances, and settlements	—
Transfers into (out of) Level 3	—
Balance at June 30, 2013	$	(5,896	)

See Note 4 for additional discussion regarding the fair value of the Company’s marketable securities.

Fair Value of Other Financial Instruments

The carrying value of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximates fair value because of the short maturity of these instruments. The estimated fair value of these obligations is based, primarily, on a market approach, comparing the Company’s interest rates to those rates the Company believes it would reasonably receive upon re-entry into the market. Judgment is required to estimate the fair value, using available market information and appropriate valuation methods.

The Company’s convertible senior notes are not publicly traded. The estimated fair value of the Company’s convertible senior notes was valued using a discounted cash flow model. The Level 3 assumptions, based on data available at the valuation date used in preparing the discounted cash flow model included estimates of interest rates, timing and amount of cash flows and expected holding periods of the convertible senior notes. The fair value of the contingent interest associated with the convertible senior notes is valued quarterly using the present value of expected cash flow model incorporating the probabilities of the contingent events occurring.

The following table reflects information pertaining to the Company’s convertible senior notes:

	June 30, 2013			December 31, 2012
Net carrying value of convertible senior notes	$	50,347		$	49,010
Estimated fair value of convertible senior notes	$	52,242		$	51,018
Estimated interest rate used in discounted cash flow model	9.4		%	9.4		%
Fair value of contingent interest	$	—		$	—

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Balance Sheet Details - Inventory (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Inventory Details [Abstract]
Inventory, Raw Materials, Net of Reserves	$ 37,218	$ 31,629
Inventory, Work in Process, Net of Reserves	19,868	15,889
Inventory, Finished Goods, Net of Reserves	14,970	15,904
Inventory, Net	72,056	63,422
Inventory Valuation Reserves	$ 5,727	$ 5,620

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Debt Obligations - (Tables)

6 Months Ended

Jun. 30, 2013

Debt Obligations [Abstract]

Schedule of carrying value of convertible senior notes [Table Text Block]

The following table reflects the net carrying value of the Notes:

	June 30, 2013		December 31, 2012
Convertible senior notes	$	60,000	$	60,000
Less: Unamortized interest discount	9,653		10,990
Net carrying value of convertible senior notes	$	50,347	$	49,010

Schedule of interest cost recognized on convertible senior notes [Table Text Block]

The following table presents the amount of interest cost recognized relating to the Notes during the three and six months endedJune 30, 2013 and June 30, 2012.

	Three Months Ended				Six Months Ended
	June 30, 2013		June 30, 2012		June 30, 2013		June 30, 2012
Contractual interest coupon	$	562	$	562	$	1,124	$	1,125
Amortization of interest discount	670		608		1,337		1,213
Amortization of debt issuance costs	73		60		145		119
Total interest cost recognized	$	1,305	$	1,230	$	2,606	$	2,457

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Income Taxes - (Tables)

6 Months Ended

Jun. 30, 2013

Income Taxes [Abstract]

Schedule of effective tax rate [Table Text Block]

The following table provides details of income taxes:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
Income before income taxes	$	1,332		$	9,931		$	1,077		$	12,804
Provision (benefit) for income taxes	$	573		$	3,585		$	(75	)	$	4,596
Effective tax rate	43.0		%	36.1		%	(7.0		)%	35.9		%

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Fair Value Measurements - (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2013	Jun. 30, 2013 Rate	Dec. 31, 2012 Rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Instruments, Owned, State and Municipal Government Obligations, at Fair Value	$ 90,231	$ 90,231	$ 64,117
Corporate Bonds	500	500	500
Available-for-sale Securities, Failed Auction, Value	302	302	346
Available-for-sale Securities, Fair Value Disclosure	91,033	91,033	64,963
Business Acquisition, Contingent Consideration, at Fair Value	6,198	6,198
Liabilities, Fair Value Disclosure	6,198	6,198
Foreign Currency Contracts, Liability, Fair Value Disclosure	13	13	268
Assets, Fair Value Disclosure	91,046	91,046	65,231
Fair Value Input Discount Rate		3.20%
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	(5,896)	(5,896)	346
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss)	(44)
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, Sales, Issues, Settlements	(6,198)
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Sales, Issues, Settlements	0
Fair Value, Level 3 Transfers out, Description	0
Convertible Debt	50,347	50,347	49,010
Long-term Debt, Fair Value	52,242	52,242	51,018
Fair Value Inputs Discount Rate 2		9.40%	9.40%
Fair Value Inputs Discount Rate 2		1.20%
Long-term Debt, Contingent Payment of Principal or Interest		0	0
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Instruments, Owned, State and Municipal Government Obligations, at Fair Value	0	0	0
Corporate Bonds	0	0	0
Available-for-sale Securities, Failed Auction, Value	0	0	0
Business Acquisition, Contingent Consideration, at Fair Value	0	0
Liabilities, Fair Value Disclosure	0	0
Foreign Currency Contracts, Liability, Fair Value Disclosure			0
Assets, Fair Value Disclosure	0	0	0
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Instruments, Owned, State and Municipal Government Obligations, at Fair Value	90,231	90,231	64,117
Corporate Bonds	500	500	500
Available-for-sale Securities, Failed Auction, Value	0	0	0
Business Acquisition, Contingent Consideration, at Fair Value	0	0
Liabilities, Fair Value Disclosure	0	0
Foreign Currency Contracts, Liability, Fair Value Disclosure	13	13	268
Assets, Fair Value Disclosure	90,744	90,744	64,885
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financial Instruments, Owned, State and Municipal Government Obligations, at Fair Value	0	0	0
Corporate Bonds	0	0	0
Available-for-sale Securities, Failed Auction, Value	302	302	346
Business Acquisition, Contingent Consideration, at Fair Value	6,198	6,198
Liabilities, Fair Value Disclosure	6,198	6,198
Foreign Currency Contracts, Liability, Fair Value Disclosure	0	0	0
Assets, Fair Value Disclosure	$ 302	$ 302	$ 346

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Segment Reporting (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013 Rate	Jun. 30, 2012 Rate	Jun. 30, 2013	Jun. 30, 2012
Segment Reporting Information [Line Items]
Entity-Wide Revenue, Major Customer, Percentage	11.00%	1.70%
Revenues	$ 46,059,000	$ 56,326,000	$ 87,709,000	$ 102,035,000
Inspection Revenue [Member]
Segment Reporting Information [Line Items]
Revenues	26,829,000	33,949,000	51,708,000	56,805,000
Percentage of Inspection Revenues [Member]
Segment Reporting Information [Line Items]
Revenues	0.58	0.60	0.59	0.56
Metrology Revenue [Member]
Segment Reporting Information [Line Items]
Revenues	5,869,000	8,782,000	6,157,000	19,019,000
Percentage of Metrology Revenue [Member]
Segment Reporting Information [Line Items]
Revenues	0.13	0.16	0.07	0.19
Lithography Revenue [Domain]
Segment Reporting Information [Line Items]
Revenues	0	0	3,700,000	0
Percentage of Lithography Revenue [Member] [Domain]
Segment Reporting Information [Line Items]
Revenues	0.00	0.00	0.04	0.00
Data Analysis & Review [Member]
Segment Reporting Information [Line Items]
Revenues	4,856,000	5,584,000	9,013,000	10,131,000
Percentage of Data Analysis & Review [Member]
Segment Reporting Information [Line Items]
Revenues	0.11	0.10	0.10	0.10
Sales Revenue, Goods, Net [Member]
Segment Reporting Information [Line Items]
Revenues	5,255,000	5,146,000	10,801,000	10,650,000
Percentage of Parts [Member]
Segment Reporting Information [Line Items]
Revenues	0.11	0.09	0.13	0.10
Sales Revenue, Services, Net [Member]
Segment Reporting Information [Line Items]
Revenues	3,250,000	2,865,000	6,330,000	5,430,000
Percentage of Service [Member]
Segment Reporting Information [Line Items]
Revenues	0.07	0.05	0.07	0.05
Sales [Member]
Segment Reporting Information [Line Items]
Revenues	46,059,000	56,326,000	87,709,000	102,035,000
Percentage of Total Revenue [Member]
Segment Reporting Information [Line Items]
Revenues	$ 1.00	$ 1.00	$ 1.00	$ 1.00
Major Customer Four [Domain]
Segment Reporting Information [Line Items]
Entity-Wide Revenue, Major Customer, Percentage	2.10%	18.40%
Major Customer Five [Domain]
Segment Reporting Information [Line Items]
Entity-Wide Revenue, Major Customer, Percentage	1.10%	12.50%

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Share-Based Compensation Restricted Stock Units (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2013	Dec. 31, 2012
Restricted Stock Units Activity [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	1,180	1,380
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value	$ 9.48	$ 8.37
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	267
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 12.40
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	(419)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value	$ 7.69
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period	(48)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value	$ 9.42
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized	$ 7,363	$ 5,906
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition	2 years 5 months 0 days	2 years 0 months 0 days

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Balance Sheet Details - Other Non-Current Liabilities (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Other Non-current Liabilities [Abstract]
Unrecognized Tax Benefits	$ 6,274	$ 5,871
Business Acquisition, Contingent Consideration, at Fair Value, Noncurrent	5,773	0
Other Liabilities	1,905	2,166
Other Liabilities, Noncurrent	$ 13,952	$ 8,037

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Statements of Financial Position B/S Parenthetical (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Allowance for Doubtful Accounts Receivable, Current	$ 654	$ 606

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Debt Obligations

6 Months Ended

Jun. 30, 2013

Debt Obligations [Abstract]

Debt Disclosure [Text Block]

Debt Obligations

On July 25, 2011, the Company issued $60,000 aggregate principal amount of 3.75% Convertible Senior Notes due 2016 (the “Notes”) at par. The Notes were issued pursuant to an indenture, dated as of July 25, 2011, between the Company and Bank of New York Mellon Trust Company, N.A., as Trustee, which includes a form of Note. The Notes provide for the payment of interest semi-annually in arrears on January 15 and July 15 of each year, beginning January 15, 2012, at an annual rate of 3.75% and will mature on July 15, 2016, unless earlier converted or repurchased. The Notes may be converted, under certain circumstances, based on an initial conversion rate of 77.241 shares of Company common stock per $1 principal amount of Notes, which represents an initial conversion price of approximately $12.95 per share. Concurrently with the issuance of the Notes, the Company purchased a convertible note hedge and sold a warrant. Each of the convertible note hedge and warrant transactions were entered into with an affiliate of the initial purchaser of the Notes. The convertible note hedge is intended to reduce the potential future dilution to the Company’s common stock associated with the conversion of the Notes. However, the warrant transaction will have a dilutive effect on the Company’s earnings per share to the extent that the price of the Company’s common stock exceeds the strike price of the warrant. The strike price of the warrant will initially be $17.00 per share. The net proceeds to the Company from the sale of the Notes, including the convertible note hedge and warrant were $50,249.

The following table reflects the net carrying value of the Notes:

	June 30, 2013		December 31, 2012
Convertible senior notes	$	60,000	$	60,000
Less: Unamortized interest discount	9,653		10,990
Net carrying value of convertible senior notes	$	50,347	$	49,010

The following table presents the amount of interest cost recognized relating to the Notes during the three and six months endedJune 30, 2013 and June 30, 2012.

	Three Months Ended				Six Months Ended
	June 30, 2013		June 30, 2012		June 30, 2013		June 30, 2012
Contractual interest coupon	$	562	$	562	$	1,124	$	1,125
Amortization of interest discount	670		608		1,337		1,213
Amortization of debt issuance costs	73		60		145		119
Total interest cost recognized	$	1,305	$	1,230	$	2,606	$	2,457

The remaining bond discount of the Notes of $9,653, as of June 30, 2013 will be amortized over the remaining life of the Notes.

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Statements of Comprehensive Income (Loss) Statement (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Net Income (Loss) Attributable to Parent	$ 759	$ 6,346	$ 1,152	$ 8,208
Available-for-sale Securities, Change in Net Unrealized Holding Gain (Loss), Net of Tax	(55)	24	(41)	1
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax	(499)	(352)	(948)	(166)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	$ 205	$ 6,018	$ 163	$ 8,043

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Share Repurchase Program - (Details) In Thousands, unless otherwise specified	Jul. 30, 2008
Share Repurchase Program [Abstract]
Share repurchase program, authorized amount of shares	3,000

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Statements of Financial Position Consolidated Balance Sheet (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Cash and Cash Equivalents, at Carrying Value	$ 66,792	$ 104,253
Marketable Securities, Current	91,033	64,963
Accounts Receivable, Net, Current	61,065	57,113
Inventory, Net	72,056	63,422
Prepaid Expense and Other Assets	5,781	4,301
Assets, Current	296,727	294,052
Property, Plant and Equipment, Net	12,484	11,909
Goodwill	19,298	11,371
Intangible Assets, Net (Excluding Goodwill)	12,651	12,358
Other Assets, Noncurrent	34,810	34,894
Assets	375,970	364,584
Accounts Payable and Accrued Liabilities	19,198	15,696
Other Liabilities, Current	18,625	21,352
Liabilities, Current	37,823	37,048
Convertible senior notes	50,347	49,010
Other Liabilities, Noncurrent	13,952	8,037
Liabilities	102,122	94,095
Commitments and Contingencies
Common Stock, Value, Issued	32	32
Additional Paid in Capital, Common Stock	413,170	409,974
Accumulated Other Comprehensive Income (Loss), Net of Tax	(2,074)	(1,085)
Retained Earnings (Accumulated Deficit)	(137,280)	(138,432)
Stockholders' Equity Attributable to Parent	273,848	270,489
Liabilities and Equity	$ 375,970	$ 364,584

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Other Income - (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Other Income (Expense) [Abstract]
Foreign currency exchange losses (gains), net	$ (398)	$ (523)	$ (49)	$ (105)
Other Expenses	0	0	0	1
Total other expenses (income)	$ (398)	$ (523)	$ (49)	$ (104)

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Commitments and Contingencies - (Tables)

6 Months Ended

Jun. 30, 2013

Commitments and Contingencies [Abstract]

Schedule of changes product warranty liability [Table Text Block]

Changes in the Company’s warranty reserves are as follows:

	Six Months Ended June 30,
	2013			2012
Balance, beginning of the period	$	2,024		$	1,406
Accruals	1,033			1,033
Warranty liability assumed in acquisition	—			93
Usage	(1,365		)	(1,023		)
Balance, end of the period	$	1,692		$	1,509

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Fair Value Measurements - (Tables)

6 Months Ended

Jun. 30, 2013

Fair Value Measurements [Abstract]

Fair Value, Measurement Inputs, Disclosure [Table Text Block]

The following tables provide the assets and liabilities carried at fair value measured on a recurring basis at June 30, 2013 and December 31, 2012:

			Fair Value Measurements Using
	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
June 30, 2013
Assets:
Available-for-sale debt securities:
Municipal notes and bonds	$	90,231	$	—	$	90,231	$	—
Corporate bonds	500		—		500		—
Auction rate securities	302		—		—		302
Foreign currency forward contracts	13		—		13		—
Total Assets	$	91,046	$	—	$	90,744	$	302
Liabilities:
Contingent consideration - acquisitions	$	6,198	$	—	$	—	$	6,198
Total Liabilities	$	6,198	$	—	$	—	$	6,198
December 31, 2012
Assets:
Available-for-sale debt securities:
Municipal notes and bonds	$	64,117	$	—	$	64,117	$	—
Corporate bonds	500		—		500		—
Auction rate securities	346		—		—		346
Foreign currency forward contracts	268		—		268		—
Total Assets	$	65,231	$	—	$	64,885	$	346

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

This table presents a reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the six months endedJune 30, 2013:

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Balance at December 31, 2012	$	346
Unrealized loss in accumulated other comprehensive loss	(44		)
Purchases	(6,198		)
Sales, issuances, and settlements	—
Transfers into (out of) Level 3	—
Balance at June 30, 2013	$	(5,896	)

Fair value convertible senior notes [Table Text Block]

The following table reflects information pertaining to the Company’s convertible senior notes:

	June 30, 2013			December 31, 2012
Net carrying value of convertible senior notes	$	50,347		$	49,010
Estimated fair value of convertible senior notes	$	52,242		$	51,018
Estimated interest rate used in discounted cash flow model	9.4		%	9.4		%
Fair value of contingent interest	$	—		$	—

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Balance Sheet Details - Other Current Liabilities (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Other Current Liabilities [Abstract]
Estimated Litigation Liability, Current	$ 4,293	$ 4,293
Deferred Revenue	9,011	11,170
Other Current Liabilities Subtotal	5,321	5,889
Other Liabilities, Current	$ 18,625	$ 21,352

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Accumulated Other Comprehensive Loss Accumulated Other Comprehensive Loss (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Stockholders' Equity Attributable to Parent	$ 273,848	$ 270,489
Accumulated Translation Adjustment [Member]
Stockholders' Equity Attributable to Parent	1,933	985
Net current period other comprehensive gain (loss)	948
Reclassification of accumulated other comprehensive income (loss)	0
Accumulated Net Unrealized Investment Gain (Loss) [Member]
Stockholders' Equity Attributable to Parent	141	100
Net current period other comprehensive gain (loss)	41
Reclassification of accumulated other comprehensive income (loss)	0
Accumulated Other Comprehensive Income (Loss) [Member]
Stockholders' Equity Attributable to Parent	2,074	1,085
Net current period other comprehensive gain (loss)	989
Reclassification of accumulated other comprehensive income (loss)	$ 0

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Derivative Instruments and Hedging Activities - (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012
Derivative [Line Items]
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments	$ 255	$ 163
Derivative, Notional Amount	450		3,457
Derivative Asset, Fair Value, Gross Asset	$ 13		$ 268

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Segment Reporting and Geographic Information - (Tables)

6 Months Ended

Jun. 30, 2013

Segment Reporting and Geographic Information [Abstract]

Schedule of revenue from external customers by Products and Services [Table Text Block]

The following table lists the different sources of revenue:

	Three Months Ended								Six Months Ended
	June 30,								June 30,
	2013				2012				2013				2012
Systems and Software:
Inspection	$	26,829	58	%	$	33,949	60	%	$	51,708	59	%	$	56,805	56	%
Metrology	5,869		13	%	8,782		16	%	6,157		7	%	19,019		19	%
Lithography	—		—	%	—		—	%	3,700		4	%	—		—	%
Data Analysis and Review	4,856		11	%	5,584		10	%	9,013		10	%	10,131		10	%
Parts	5,255		11	%	5,146		9	%	10,801		13	%	10,650		10	%
Services	3,250		7	%	2,865		5	%	6,330		7	%	5,430		5	%
Total revenue	$	46,059	100	%	$	56,326	100	%	$	87,709	100	%	$	102,035	100	%

Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block]

For geographical revenue reporting, revenues are attributed to the geographic location in which the product is shipped.  Revenue by geographic region is as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
United States	$	10,077	$	8,783	$	19,478	$	18,137
Taiwan	19,490		15,269		32,621		23,934
Japan	1,319		4,007		3,707		5,401
China	4,520		4,076		7,269		5,989
South Korea	1,644		10,842		5,067		25,334
Other Asia	3,167		4,899		8,575		10,003
Austria	174		4,982		460		7,580
Germany	1,550		1,368		4,075		1,741
Other Europe	4,118		2,100		6,457		3,916
Total revenue	$	46,059	$	56,326	$	87,709	$	102,035

Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block]

Customers comprising 10% or more of revenue:

	Six Months Ended
	June 30,
	2013		2012
Customer A	11.0	%	1.7	%
Customer B	10.8	%	5.3	%
Customer C	10.0	%	7.1	%
Customer D	2.1	%	18.4	%
Customer E	1.1	%	12.5	%

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Business Combination - (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013
Business Acquisition, Contingent Consideration [Line Items]
Business Acquisition, Cost of Acquired Entity, Purchase Price	$ 3,365
Business Acquisition, Contingent Consideration, Potential Cash Payment	$ 6,198

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Balance Sheet Details

6 Months Ended

Jun. 30, 2013

Balance Sheet Detail [Abstract]

Balance Sheet Details [Text Block]

Balance Sheet Details

Inventories

Inventories are comprised of the following:

	June 30, 2013		December 31, 2012
Materials	$	37,218	$	31,629
Work-in-process	19,868		15,889
Finished goods	14,970		15,904
Total inventories	$	72,056	$	63,422

The Company has established reserves of $5,727 and $5,620 as of June 30, 2013 and December 31, 2012, respectively, for slow moving and obsolete inventory, which are included in the amounts above.

Property, Plant and Equipment

Property, plant and equipment, net is comprised of the following:

	June 30, 2013			December 31, 2012
Land and building	$	4,997		$	4,997
Machinery and equipment	19,112			18,826
Furniture and fixtures	3,829			3,381
Computer equipment	8,093			7,789
Leasehold improvements	8,125			6,807
	44,156			41,800
Accumulated depreciation	(31,672		)	(29,891		)
Total property, plant and equipment, net	$	12,484		$	11,909

Other assets

Other assets is comprised of the following:

	June 30, 2013		December 31, 2012
Deferred income taxes	$	32,881	$	32,800
Capitalized software	20		201
Other	1,909		1,893
Total other assets	$	34,810	$	34,894

Other current liabilities

Other current liabilities is comprised of the following:

	June 30, 2013		December 31, 2012
Litigation accrual	$	4,293	$	4,293
Deferred revenue	9,011		11,170
Other	5,321		5,889
Total other current liabilities	$	18,625	$	21,352

Other non-current liabilities

Other non-current liabilities is comprised of the following:

	June 30, 2013		December 31, 2012
Unrecognized tax benefits (including interest)	$	6,274	$	5,871
Contingent consideration - acquisitions	5,773		—
Other	1,905		2,166
Total other non-current liabilities	$	13,952	$	8,037

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Share-Based Compensation - (Tables)

6 Months Ended

Jun. 30, 2013

Share-based Compensation [Abstract]

Summary of restricted stock unit activity [Table Text Block]

A summary of the Company’s nonvested restricted stock unit activity with respect to the six months ended June 30, 2013 is as follows:

	Number of Shares		Weighted Average Grant Date Fair Value
Nonvested at December 31, 2012	1,380		$	8.37
Granted	267		$	12.40
Vested	(419	)	$	7.69
Forfeited	(48	)	$	9.42
Nonvested at June 30, 2013	1,180		$	9.48

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Balance Sheet Details - Property Plant & Equipment (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Property Plant & Equipment [Abstract]
Buildings and Land Gross	$ 4,997	$ 4,997
Machinery and Equipment, Gross	19,112	18,826
Furniture and Fixtures, Gross	3,829	3,381
Computer Equipments And Software Gross	8,093	7,789
Leasehold Improvements, Gross	8,125	6,807
Property, Plant and Equipment, Gross	44,156	41,800
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	(31,672)	(29,891)
Property, Plant and Equipment, Net	$ 12,484	$ 11,909

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Share-Based Compensation

6 Months Ended

Jun. 30, 2013

Share-based Compensation [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Share-Based Compensation

Restricted Stock Unit Activity

A summary of the Company’s nonvested restricted stock unit activity with respect to the six months ended June 30, 2013 is as follows:

	Number of Shares		Weighted Average Grant Date Fair Value
Nonvested at December 31, 2012	1,380		$	8.37
Granted	267		$	12.40
Vested	(419	)	$	7.69
Forfeited	(48	)	$	9.42
Nonvested at June 30, 2013	1,180		$	9.48

As of June 30, 2013 and December 31, 2012, there was $7,363 and $5,906 of total unrecognized compensation cost related to restricted stock units granted under the Company’s stock plans, respectively.  That cost is expected to be recognized over a weighted average period of 2.4 years and 2.0 years for the respective periods.

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Identifiable Intangible Assets and Goodwill

6 Months Ended

Jun. 30, 2013

Finite-Lived Intangible Assets [Line Items]

Goodwill and Intangible Assets Disclosure [Text Block]

Goodwill and Purchased Intangible Assets

Goodwill

The changes in the carrying amount of goodwill are as follows:

Balance at December 31, 2012	$	11,371
Tamar acquisition	7,939
Other	(12		)
Balance at June 30, 2013	$	19,298

Purchased Intangible Assets

Purchased intangible assets as of  June 30, 2013 and December 31, 2012 are as follows:

	Gross Carrying Amount		Accumulated Amortization		Net
June 30, 2013
Developed technology	$	59,735	$	50,416	$	9,319
Customer and distributor relationships	9,491		7,253		2,238
Trade names	4,361		3,267		1,094
Total identifiable intangible assets	$	73,587	$	60,936	$	12,651
December 31, 2012
Developed technology	$	58,961	$	49,358	$	9,603
Customer and distributor relationships	8,712		7,102		1,610
Trade names	4,361		3,216		1,145
Total identifiable intangible assets	$	72,034	$	59,676	$	12,358

Intangible asset amortization expense for the three and six months endedJune 30, 2013 was $648 and $1,264, respectively. For the three and six months endedJune 30, 2012, intangible assets amortization expense was $416 and $832, respectively. Assuming no change in the gross carrying value of identifiable intangible assets and estimated lives, estimated amortization expense for the remainder of 2013 will be $1,328, and for each of the next five years estimated amortization expense amounts to $2,400 for 2014, $2,028 for 2015, $1,919 for 2016, $1,531 for 2017, and $1,095 for 2018.

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Basis of Presentation (Notes)

6 Months Ended

Jun. 30, 2013

Organization and Nature of Operations: [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Basis of Presentation

The accompanying interim unaudited condensed consolidated financial statements have been prepared by Rudolph Technologies, Inc. (the “Company” or “Rudolph”) and in the opinion of management reflect all adjustments, consisting of normal recurring accruals, necessary for their fair presentation in accordance with accounting principles generally accepted in the United States of America.  Preparing financial statements requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes.  Actual amounts could differ materially from those amounts.  The interim results for the three and six month periods ended June 30, 2013 are not necessarily indicative of results to be expected for the entire year or any future periods.  This interim financial information should be read in conjunction with the financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 filed with the Securities and Exchange Commission (“SEC”).

Reclassifications

Certain prior period amounts have been reclassified to conform to current financial statement presentation. These amounts include the reclassification of uncertain tax credit liabilities to deferred tax assets in the Condensed Consolidated Balance Sheets and Statements of Cash Flows.

Recent Accounting Pronouncements

In July 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) No. 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” The ASU requires that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The Company does not believe that this guidance will have a material impact on its consolidated financial position, results of operations, or cash flows.

In July 2013, the FASB issued ASU No. 2013-10, “Derivatives and Hedging (Topic 815): Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes (a consensus of the FASB Emerging Issues Task Force.” The ASU permits the Fed Funds Effective Swap Rate (OIS) to be used as a U.S. benchmark interest rate for hedge accounting purposes under Topic 850, in addition to UST and LIBOR. The amendments also remove the restriction on using different benchmark rates for similar hedges. This ASU is effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The Company does not believe that this guidance will have a material impact on its consolidated financial position, results of operations, or cash flows.

In February 2013, the FASB issued ASU No. 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” The ASU requires an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under U.S. GAAP to be reclassified in its entirety to net income. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under U.S. GAAP that provide additional detail about those amounts. This ASU is effective prospectively for reporting periods beginning after December 15, 2012. The adoption of this amendment did not have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

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Income Taxes - (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Income Taxes [Abstract]
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest	$ 1,332	$ 9,931	$ 1,077	$ 12,804
Income Tax Expense (Benefit)	573	3,585	(75)	4,596
Effective Income Tax Rate	43.00%	36.10%	(7.00%)	35.90%
Valuation Allowance, Amount	$ 1,361		$ 1,361

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Commitments and Contingencies - (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012	Dec. 31, 2011
Commitments and Contingencies [Abstract]
Standard Product Warranty Accrual	$ 1,692	$ 1,509	$ 2,024	$ 1,406
Product Warranty Accrual, Warranties Issued	1,033	1,033
Standard Product Warranty Accrual, Additions from Business Acquisition	0	93
Product Warranty Accrual, Payments	$ (1,365)	$ (1,023)

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Earnings Per Share - (Tables)

6 Months Ended

Jun. 30, 2013

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

The Company’s basic and diluted earnings per share amounts are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
Numerator:
Net income	$	759	$	6,346	$	1,152	$	8,208
Denominator:
Basic earnings per share - weighted average shares outstanding	32,567		32,144		32,633		32,110
Effect of potential dilutive securities:
Employee stock options and restricted stock units - dilutive shares	588		583		651		635
Diluted earnings per share - weighted average shares outstanding	33,155		32,727		33,284		32,745
Earnings per share:
Basic	$	0.02	$	0.20	$	0.04	$	0.26
Diluted	$	0.02	$	0.19	$	0.03	$	0.25

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Earnings Per Share

6 Months Ended

Jun. 30, 2013

Earnings (Loss) Per Share [Abstract]

Earnings Per Share [Text Block]

Earnings Per Share

Basic earnings per share is calculated using the weighted average number of shares of common stock outstanding during the period.  Diluted earnings per share is computed in the same manner and also gives effect to all dilutive common equivalent shares outstanding during the period.  Potential common shares that would have the effect of increasing diluted earnings per share are considered to be antidilutive. In accordance with U.S. GAAP, these shares were not included in calculating diluted earnings per share. For the three and six months endedJune 30, 2013, the weighted average number of stock options and restricted stock units excluded from the computation of diluted earnings per share was 711 and 760, respectively, because their effect was antidilutive. For the three and six months endedJune 30, 2012, the weighted average number of stock options and restricted stock units excluded from the computation of diluted earnings per share was 1,021 and 1,001, respectively, because their effect was antidilutive. Diluted earnings per share-weighted average shares outstanding do not include any effect resulting from assumed conversion of the Notes and warrants as their impact would be anti-dilutive.

The Company’s basic and diluted earnings per share amounts are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
Numerator:
Net income	$	759	$	6,346	$	1,152	$	8,208
Denominator:
Basic earnings per share - weighted average shares outstanding	32,567		32,144		32,633		32,110
Effect of potential dilutive securities:
Employee stock options and restricted stock units - dilutive shares	588		583		651		635
Diluted earnings per share - weighted average shares outstanding	33,155		32,727		33,284		32,745
Earnings per share:
Basic	$	0.02	$	0.20	$	0.04	$	0.26
Diluted	$	0.02	$	0.19	$	0.03	$	0.25

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2013

Commitments and Contingencies [Abstract]

Commitments and Contingencies Disclosure [Text Block]

Commitments and Contingencies

Warranty Reserves

The Company generally provides a warranty on its products for a period of twelve to fifteen months against defects in material and workmanship. The Company estimates the costs that may be incurred during the warranty period and records a liability in the amount of such costs at the time revenue is recognized. The Company’s estimate is based primarily on historical experience. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. Settlements of warranty reserves are generally associated with sales that occurred during the 12 to 15 months prior to the year-end and warranty accruals are related to sales during the year.

Changes in the Company’s warranty reserves are as follows:

	Six Months Ended June 30,
	2013			2012
Balance, beginning of the period	$	2,024		$	1,406
Accruals	1,033			1,033
Warranty liability assumed in acquisition	—			93
Usage	(1,365		)	(1,023		)
Balance, end of the period	$	1,692		$	1,509

Warranty reserves are reported in the Condensed Consolidated Balance Sheets within the caption “Accounts payable and accrued liabilities.”

Letter of Credit

As of June 30, 2013, the Company had a $40,000 irrevocable standby letter of credit with Credit Suisse AG available to secure the damages assessment in connection with the ITC litigation discussed in Legal Matters below, which the Company is in the process of appealing. The letter of credit expires on February 25, 2014 with provisions for automatic renewal. Upon draw down of funds, the letter of credit would be collateralized by securities held in the Company’s investment portfolios and reported in the Condensed Consolidated Balance Sheets within the caption “Cash and cash equivalents” and “Marketable securities.” No amounts were outstanding on the letter of credit as of, or during the six months ended, June 30, 2013.

Legal Matters

From time to time, the Company is subject to legal proceedings and claims in the ordinary course of business. As previously disclosed, in December 2007, the Company completed the acquisition of specific assets and liabilities of the semiconductor division of Applied Precision LLC (“Applied”). As a result of the acquisition, the Company assumed certain liabilities of Applied including a lawsuit filed in the United States District Court, District of Arizona, by Integrated Technology Corporation (“ITC”) which alleged Applied’s PrecisionPoint^™, PrecisionWoRx^® and ProbeWoRx^® products infringed an ITC patent (Integrated Technology Corporation v. Rudolph Technologies, Inc., No. CV-06-2182-PHX-ROS). Prior to trial, the District Court ruled that such products soldprior to August of 2007 infringed the ITC patent. In December 2011, a trial verdict was rendered in which the jury found that while the Company’s products manufactured after August of 2007 did not literally infringe ITC’s patent, the products were found to infringe under a rule known as the doctrine of equivalents, a legal principle which expands the language of patent claims to encompass products or processes which may otherwise be found not to literally infringe the patent. The jury awarded $15,475 to ITC in damages for sales made during the years 2000-2011, of which award approximately one-half related to sales made after August 2007. The jury found that for sales made after August of 2007 the infringement was willful. On July 23, 2012, the District Court, responding to post-trial motions filed by the Company and ITC related to the verdict and damages assessment, issued an Order which affirmed the jury's award, applied treble damages to the portion of the jury award related to sales of the products after 2007 and granted ITC’s motion for attorney's fees and prejudgment interest on the verdict and attorney's fees. The District Court also enjoined the Company from future infringement of the ITC patent and from selling or supplying the applicable products with the applicable features from or into the United States. The Company appealed the injunction as well as the District Court Order and the damages assessment. In October 2012, the injunction was stayed by the Federal Court of Appeals, while the appeal of the District Court Order and damages assessment is currently ongoing. The Company believes that it has meritorious defenses and shall continue to vigorously prosecute its appeal. With that, it is reasonably possible that the Company could realize a loss in this matter related to products soldafter August of 2007 such that in the event that the Company is ultimately found liable, damage estimates related to this case, which have not been accrued for as of June 30, 2013, range from approximately $25 to $31,641. With regard to products soldbefore August of 2007, it is probable that the Company could realize a loss in this matter for which the Company has estimated and recorded a liability of approximately $4,293 in “Other liabilities” in the Consolidated Balance Sheets. The maximum liability reasonably possible for the pre-August 2007 products is an additional $3,391 plus interest beyond the accrual. While the Company continues to believe that its current PrecisionWoRx® and ProbeWoRx® systems do not infringe ITC’s patent, the Company reached an agreement with ITC in October 2012 with regards to a redesign of the products under which ITC agreed that such redesign is permissible under the court’s injunction.

In the Company’s patent infringement suit against Camtek, Ltd., of Migdal Hamek, Israel, concerning the Company’s proprietary continuous scan wafer inspection technology, the U.S. Federal Court of Appeals issued a ruling on August 22, 2011.  In its opinion, the Appellate Court affirmed multiple rulings from trial at the District Court level including (i) finding the Company’s U.S. Patent No. 6,826,298 valid, (ii) the part of the infringement ruling based on the finding that Camtek’s Falcon product strobes “based on velocity,” and (iii) the dismissal of Camtek’s claim against the Company for inequitable conduct against the U.S. Patent and Trademark Office.  The court did, however, revise one claim construction ruling made by the District Court in the original case.  As a result, the Appellate Court set aside the verdict delivered by the jury for damages and the District Court's decision to enter an injunction against Camtek’s selling Falcon tools in the U.S. and remanded the case back to the trial court for a limited trial on this single infringement issue.  No trial date has been set for this limited trial.  This lawsuit was initially brought in 2005 by August Technology prior to its merger with the Company.

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Share Repurchase Program

6 Months Ended

Jun. 30, 2013

Share Repurchase Program [Abstract]

Share Repurchase [Text Block]

Share Repurchase Program

In July 2008, the Board of Directors authorized a share repurchase program of up to 3,000 shares of the Company’s common stock with no established end date.  As of the time of filing this Quarterly Report on Form 10-Q, the Company has not purchased any shares under this program.

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Accumulated Other Comprehensive Loss (Notes)

6 Months Ended

Jun. 30, 2013

Accumulated Other Comprehensive Loss [Abstract]

Comprehensive Income (Loss) Note [Text Block]

Accumulated Other Comprehensive Loss

Comprehensive income includes net income, foreign currency translation adjustments, and net unrealized gains and losses on available-for-sale investments. See the unaudited Consolidated Statements of Comprehensive Income for the effect of the components of comprehensive income to our net income.

The components of accumulated other comprehensive loss, net of tax, are as follows:

	Foreign currency translation adjustments		Net unrealized losses on available-for-sale investments		Accumulated other comprehensive loss
Beginning Balance, December 31, 2012	$	985	$	100	$	1,085
Net current period other comprehensive loss	948		41		989
Reclassifications	—		—		—
Ending balance, June 30, 2013	$	1,933	$	141	$	2,074

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Document and Entity Information Document	3 Months Ended
	Jun. 30, 2013	Jul. 22, 2013
Entity Information [Line Items]
Entity Registrant Name	RUDOLPH TECHNOLOGIES INC
Entity Central Index Key	0001094392
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		32,840,207

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Segment Reporting and Geographic Information

6 Months Ended

Jun. 30, 2013

Segment Reporting and Geographic Information [Abstract]

Segment Reporting Disclosure [Text Block]

Segment Reporting and Geographic Information

The Company has one reportable segment. Operating segments are business units that have separate financial information and are separately reviewed by the Company’s chief decision maker. The Company’s chief decision maker is the Chief Executive Officer. The Company is engaged in the design, development, manufacture and support of defect inspection, advanced packaging lithography, process control metrology, and data analysis systems and software used by microelectronic device manufacturers worldwide. The Company and its subsidiaries currently operate in a single reportable segment: the design, development, manufacture and support of defect inspection, advanced packaging lithography, process control metrology, and data analysis systems and software used by microelectronics device manufacturers. The chief operating decision maker allocates resources and assesses performance of the business and other activities at the reporting segment level.

The following table lists the different sources of revenue:

	Three Months Ended								Six Months Ended
	June 30,								June 30,
	2013				2012				2013				2012
Systems and Software:
Inspection	$	26,829	58	%	$	33,949	60	%	$	51,708	59	%	$	56,805	56	%
Metrology	5,869		13	%	8,782		16	%	6,157		7	%	19,019		19	%
Lithography	—		—	%	—		—	%	3,700		4	%	—		—	%
Data Analysis and Review	4,856		11	%	5,584		10	%	9,013		10	%	10,131		10	%
Parts	5,255		11	%	5,146		9	%	10,801		13	%	10,650		10	%
Services	3,250		7	%	2,865		5	%	6,330		7	%	5,430		5	%
Total revenue	$	46,059	100	%	$	56,326	100	%	$	87,709	100	%	$	102,035	100	%

For geographical revenue reporting, revenues are attributed to the geographic location in which the product is shipped.  Revenue by geographic region is as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
United States	$	10,077	$	8,783	$	19,478	$	18,137
Taiwan	19,490		15,269		32,621		23,934
Japan	1,319		4,007		3,707		5,401
China	4,520		4,076		7,269		5,989
South Korea	1,644		10,842		5,067		25,334
Other Asia	3,167		4,899		8,575		10,003
Austria	174		4,982		460		7,580
Germany	1,550		1,368		4,075		1,741
Other Europe	4,118		2,100		6,457		3,916
Total revenue	$	46,059	$	56,326	$	87,709	$	102,035

Customers comprising 10% or more of revenue:

	Six Months Ended
	June 30,
	2013		2012
Customer A	11.0	%	1.7	%
Customer B	10.8	%	5.3	%
Customer C	10.0	%	7.1	%
Customer D	2.1	%	18.4	%
Customer E	1.1	%	12.5	%