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Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0001181431-06-056948.txt : 20061004
<SEC-HEADER>0001181431-06-056948.hdr.sgml : 20061004
<ACCEPTANCE-DATETIME>20061004183959
ACCESSION NUMBER:		0001181431-06-056948
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20061002
FILED AS OF DATE:		20061004
DATE AS OF CHANGE:		20061004

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CREDENCE SYSTEMS CORP
		CENTRAL INDEX KEY:			0000893162
		STANDARD INDUSTRIAL CLASSIFICATION:	INSTRUMENTS FOR MEAS & TESTING OF ELECTRICITY & ELEC SIGNALS [3825]
		IRS NUMBER:				942878499
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1031

	BUSINESS ADDRESS:	
		STREET 1:		215 FOURIER AVE
		CITY:			FREMONT
		STATE:			CA
		ZIP:			94539
		BUSINESS PHONE:		5106577400

	MAIL ADDRESS:	
		STREET 1:		215 FOURIER AVE
		CITY:			FREMONT
		STATE:			CA
		ZIP:			94539

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			TOMPKINS JON D
		CENTRAL INDEX KEY:			0001196899

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-22366
		FILM NUMBER:		061129473

	BUSINESS ADDRESS:	
		BUSINESS PHONE:		4088753000

	MAIL ADDRESS:	
		STREET 1:		KLA TENCOR
		STREET 2:		160 RIO ROBLES
		CITY:			SAN JOSE
		STATE:			CA
		ZIP:			95134
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>rrd132218.xml
<DESCRIPTION>OCTOBER 2006 OPTION
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2006-10-02</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000893162</issuerCik>
        <issuerName>CREDENCE SYSTEMS CORP</issuerName>
        <issuerTradingSymbol>CMOS</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001196899</rptOwnerCik>
            <rptOwnerName>TOMPKINS JON D</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O CREDENCE SYSTEMS CORPORATION</rptOwnerStreet1>
            <rptOwnerStreet2>1421 CALIFORNIA CIRCLE</rptOwnerStreet2>
            <rptOwnerCity>MILPITAS</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>95035</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Stock Option Right to Buy</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>2.73</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2006-10-02</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>4000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F1"/>
            </exerciseDate>
            <expirationDate>
                <value>2013-10-02</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>4000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>148000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Stock options granted from 2005 Stock Incentive Plan.  The options vest, subject to continuous service, at the rate of 25% of the total shares granted on April 1, 2007, April 1, 2008, April 1, 2009 and April 1, 2010.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>Byron Milstead for Jon D. Tompkins</signatureName>
        <signatureDate>2006-10-03</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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