10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

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FORM 10-Q

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(Mark One)

ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 29, 2012

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

For the transition period from  ______to ______            

Commission File Number 0-22248

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ULTRATECH, INC.

(Exact name of registrant as specified in its charter)

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DELAWARE	94-3169580
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
3050 Zanker Road, San Jose, California	95134
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code (408) 321-8835

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(Former name, former address and former fiscal year, if changed since last report.)

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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  ý    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 during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ý    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 the definition of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	ý
Non-accelerated filer	o  (Do not check if a smaller reporting company)	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  ý

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

Class	Outstanding as of September 29, 2012
common stock, $0.01 par value	27,021,299

ULTRATECH, INC.

INDEX

PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance sheet as of September 29, 2012	3
Condensed Consolidated Statements of Operations for the three and nine months ended September 29, 2012 and October 1, 2011	3
Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 29, 2012 and October 1, 2011	3
Condensed Consolidated Statements of Cash Flows for the nine months ended September 29, 2012 and October 1, 2011	3
Notes to Condensed Consolidated Financial Statements	4
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	9
Item 3. Quantitative and Qualitative Disclosures About Market Risk	16
Item 4. Controls and Procedures	16
PART II. OTHER INFORMATION
Item 1. Legal Proceedings	17
Item 1A. Risk Factors	17
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	26
Item 3. Defaults Upon Senior Securities	26
Item 4. Mine Safety	26
Item 5. Other Information	26
Item 6. Exhibits	27
SIGNATURES	28
EXHIBIT 31.1
EXHIBIT 31.2
EXHIBIT 32.1

2

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

ULTRATECH, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)	September 29, 2012		December 31, 2011*
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	74,305	$	58,780
Short-term investments	206,571		169,167
Accounts receivable, net	50,326		56,506
Inventories, net	47,746		41,285
Prepaid expenses and other current assets	6,556		6,848
Total current assets	385,504		332,586
Property, plant, and equipment, net	18,806		16,009
Intangible assets, net	8,171		452
Other assets	5,158		4,401
Total assets	$	417,639	$	353,448
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Notes payable	$	1,000	$	1,000
Accounts payable	15,529		10,980
Deferred product and services income	21,667		14,953
Other current liabilities	15,795		22,373
Total current liabilities	53,991		49,306
Other liabilities	14,324		8,113
Stockholders’ equity	349,324		296,029
Total liabilities and stockholders’ equity	$	417,639	$	353,448

__________________

*     The Balance Sheet as of December 31, 2011 has been derived from the audited financial statements at that date.

See accompanying notes to unaudited condensed consolidated financial statements

ULTRATECH, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months Ended						Nine Months Ended
(In thousands, except per share amounts)	September 29, 2012			October 1, 2011			September 29, 2012			October 1, 2011
Net sales:
Products	$	56,242		$	49,283		$	154,870		$	140,736
Services	3,652			5,361			13,061			14,786
Licenses	653			300			1,303			750
Total net sales	60,547			54,944			169,234			156,272
Cost of sales:
Cost of products sold	22,844			21,935			64,825			64,013
Cost of services	3,534			3,614			9,801			11,671
Total cost of sales	26,378			25,549			74,626			75,684
Gross profit	34,169			29,395			94,608			80,588
Operating expenses:
Research, development, and engineering	7,745			6,349			22,280			17,832
Selling, general, and administrative	11,469			11,484			32,938			32,301
Operating income	14,955			11,562			39,390			30,455
Interest expense	(1		)	(4		)	(6		)	(16		)
Interest and other income (expense), net	126			(74		)	208			40
Income before income tax	15,080			11,484			39,592			30,479
Provision for income taxes	2,638			1,020			5,779			2,420
Net income	$	12,442		$	10,464		$	33,813		$	28,059
Net income per share - basic	$	0.46		$	0.40		$	1.27		$	1.09
Number of shares used in per share computations - basic	27,047			25,977			26,635			25,678
Net income per share - diluted	$	0.45		$	0.39		$	1.23		$	1.05
Number of shares used in per share computations - diluted	27,777			26,647			27,481			26,620

See accompanying notes to unaudited condensed consolidated financial statements

ULTRATECH, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Three Months Ended					Nine Months Ended
(In thousands)	September 29, 2012		October 1, 2011			September 29, 2012		October 1, 2011
Net income	$	12,442	$	10,464		$	33,813	$	28,059
Other comprehensive income, net of tax:
Change in unrealized gain (loss) on investments	75		(30		)	35		38
Change in minimum postretirement medical obligation	2		1			8		5
Other comprehensive income (loss)	77		(29		)	43		43
Total comprehensive income	$	12,519	$	10,435		$	33,856	$	28,102

ULTRATECH, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Nine Months Ended
(In thousands)	September 29, 2012			October 1, 2011
Cash flows from operating activities:
Net income	$	33,813		$	28,059
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation	3,625			3,096
Amortization of intangibles and other	214			53
Accretion of asset retirement obligations	87			82
Gain on disposal of equipment	5			(4		)
Stock-based compensation	8,379			6,190
Deferred income taxes	—			(17		)
Changes in operating assets and liabilities:
Accounts receivable	6,180			(2,065		)
Inventories	(6,511		)	(11,527		)
Prepaid expenses and other current assets	292			(484		)
Other assets	(929		)	1,297
Accounts payable	4,549			2,496
Deferred product and services income	6,714			(3,453		)
Other current liabilities	(6,578		)	2,455
Other liabilities	6,123			3,601
Net cash provided by operating activities	55,963			29,779
Cash flows from investing activities:
Capital expenditures	(6,198		)	(3,020		)
Purchase of patents	(8,000		)	—
Purchase of investments in securities	(266,225		)	(157,685		)
Proceeds from maturities of investments	228,925			120,320
Net cash used in investing activities	(51,498		)	(40,385		)
Cash flows from financing activities:
Proceeds from notes payable	3,000			10,000
Repayment of notes payable	(3,000		)	(12,000		)
Proceeds from issuance of common stock for stock option exercises	15,372			12,980
Tax payment for issuance of common stock from release of restricted stock units	(4,312		)	(1,268		)
Net cash provided by financing activities	11,060			9,712
Net increase (decrease) in cash and cash equivalents	15,525			(894		)
Cash and cash equivalents at beginning of period	58,780			63,626
Cash and cash equivalents at end of period	$	74,305		$	62,732

See accompanying notes to unaudited condensed consolidated financial statements

3

Ultratech, Inc.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

September 29, 2012

(1) Description of Business

Ultratech, Inc. (referred to herein as “Ultratech,” the “Company”, “we”, “our” or “us”) develops, manufactures and markets photolithography and laser thermal processing equipment designed to reduce the cost of ownership for manufacturers of semiconductor devices, including advanced packaging processes and various nanotechnology components including thin film head magnetic recording devices ("thin film heads" or "TFHs"), optical networking devices, laser diodes and high-brightness light emitting diodes ("HBLEDs") for customers located throughout North America, Europe, Singapore, Japan, Taiwan, Korea and the rest of Asia. Ultratech was incorporated in the state of Delaware in 1992.

We supply step-and-repeat photolithography systems based on one-to-one imaging technology. Within the semiconductor industry, we target the market for advanced packaging applications. Our laser thermal processing equipment is targeted at advanced annealing applications within the semiconductor industry. Within the nanotechnology industry, our target markets include thin film head magnetic recording devices, ink jet print heads, laser diodes and HBLEDs.

In evaluating our business, we gave consideration to the Chief Executive Officer’s review of financial information and the organizational structure of our management. Based on this review, we concluded that, at the present time, resources are allocated and other financial decisions are made based on our consolidated financial information. Accordingly, we have determined that we operate in one business segment, which is the manufacture and distribution of capital equipment to manufacturers of semiconductor devices and nanotechnology components.

(2) Basis of Presentation

The accompanying condensed consolidated financial statements include our accounts and the accounts of our subsidiaries. All intercompany accounts and transactions have been eliminated.

Our interim financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("U.S. GAAP") for interim financial information and the rules and regulations of the Securities and Exchange Commission ("SEC") for interim financial statements and accounting policies, consistent, in all material respects with those applied in preparing our audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2011, filed with the SEC on February 29, 2012. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In our opinion, all adjustments, consisting of only normal recurring adjustments considered necessary for fair presentation, have been included.

Our fiscal periods end on the Saturday closest to month-end, except that our fiscal year ends on December 31. All references to the quarter or three month period refer to our fiscal quarter. Our fiscal quarters covered by this report ended on September 29, 2012 and October 1, 2011.

Operating results for the three and nine month periods ended September 29, 2012 are not necessarily indicative of the results that may be expected for the year ending December 31, 2012, or any future periods.

USE OF ESTIMATES — The preparation of the financial statements and related disclosures in conformity with U.S. GAAP require us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and the related disclosure of contingent assets and liabilities at the date of the consolidated financial statements. By their nature, these estimates and judgments are subject to an inherent degree of uncertainty. On an ongoing basis, we evaluate our estimates, including those related to inventories, warranty obligations, purchase order commitments, asset retirement obligations, bad debts, estimated useful lives of fixed assets, asset impairment, income taxes, intangible assets, contingencies and litigation. We base our estimates on historical experience and on various other analyses and assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS —In June 2011, the FASB issued ASU No. 2011-05, Comprehensive Income, Presentation of Comprehensive Income and in December 2011, the FASB issued ASU No. 2011-12, Deferral of the Effective Date for Amendments to the Presentation of Reclassification of Items Out of Accumulated Other Comprehensive Income in ASU 2011-05 to increase the prominence of items reported in other comprehensive income. Specifically, the new guidance allows an entity to present components of net income or other comprehensive income in one continuous statement, referred to as the statement of comprehensive income, or in two separate, but consecutive statements. The new guidance eliminates the current option to report other comprehensive income and its components in the consolidated statement of shareholders' equity. While the new guidance changes the presentation of comprehensive income, there are no changes to the components that are recognized in net income or other comprehensive income under current accounting guidance. This new guidance is effective for fiscal years and interim periods beginning after December 15, 2011. We adopted this guidance on January 1, 2012 and have presented a new financial statement titled Condensed Consolidated Statement of Comprehensive Income for the three and nine month periods ending September 29, 2012 and October 1, 2011.

Revenue Recognition

We recognize revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the arrangement consideration is fixed or determinable, and collectability is reasonably assured. We derive revenue from four sources: system sales, spare parts sales, service contracts and license fees.

Provided all other criteria are met, we recognize revenues on system sales when system acceptance provisions have been met in accordance with the terms and conditions of the arrangement. In the event that terms of the sale provide for a lapsing system acceptance period, we recognize revenue upon the expiration of the lapsing acceptance period or system acceptance, whichever occurs first. In these instances, which are infrequent, revenue is recorded only if the product has met product specifications prior to shipment and management deems that no significant uncertainties as to product performance exist.

Our transactions frequently include the sale of systems and services under multiple element arrangements. In transactions with multiple deliverables, revenue is recognized upon the delivery of the separate elements and when system acceptance has occurred or we are otherwise released from our system acceptance obligations.

In the first quarter of 2011, we adopted Accounting Standard Update (“ASU”) No. 2009-13, Revenue Recognition ("Topic 605") - Multi-Deliverables Revenue Arrangements, a Consensus of the FASB Emerging Issues Task Force on a prospective basis for applicable transactions originating or materially modified on or subsequent to January 1, 2011. The new standard changed the requirements for establishing separate units of accounting in a multiple element arrangement and requires the allocation of arrangement consideration to each deliverable to be based on the relative selling price. Implementation of this new authoritative guidance had an insignificant impact on reported revenue as compared to revenue under previous guidance, as the new guidance did not change the units of accounting within sales arrangements and the elimination of the residual method for the allocation of arrangement consideration had an insignificant impact on the amount and timing of reported revenue.

For multiple element arrangements entered into or materially modified on or subsequent to January 1, 2011, the total consideration for an arrangement is allocated among the separate elements in the arrangement based on a selling price hierarchy. The selling price hierarchy for a deliverable is based on (i) vendor specific objective evidence ("VSOE"); if available; (ii) third party evidence of selling price if VSOE is not available; or (iii) an estimated selling price, if neither VSOE nor third party evidence is available. If we have not established VSOE and cannot obtain third party evidence of selling price, we determine our estimate of the relative selling price by considering our production costs and historical margins of similar products or services. We believe this best represents the price at which we would transact a sale if the product or service were sold on a stand-alone basis. We regularly review the method used to determine our relative selling price and update any estimates accordingly. We limit the amount of revenue recognized for delivered elements to the amount that is not contingent on the future delivery of products or services or other future performance obligations.

For multiple element arrangements entered into prior to January 1, 2011, revenue is allocated among the separate accounting units based on the residual method under which the revenue is allocated to undelivered elements based on fair value of such undelivered elements and the residual amounts of revenue are allocated to delivered elements, provided the delivered elements have value on a stand alone basis, there is objective and reliable evidence of fair value for the undelivered elements, the arrangement does not include a general right of return relative to the delivered item and delivery or performance of the undelivered item(s) is considered probable and substantially in our control. The maximum revenue recognized on a delivered element is limited to the amount that is not contingent upon the delivery of additional items.

We generally recognize revenue from spare parts sales upon shipment, as our products are generally sold on terms that transfer title and risk of ownership when it leaves our site. We sell service contracts for which revenue is deferred and recognized ratably over the contract period (for time-based service contracts) or as service hours are delivered (for contracts based on a purchased quantity of hours). We recognize license revenue from transactions in which our systems are re-sold by our customers to third parties, as well as from royalty arrangements.

Costs related to deferred product revenues are capitalized (deferred) and recognized at the time of revenue recognition. Deferred product revenue and costs are netted on our balance sheet, under the caption “deferred product and services income.” The gross amount of deferred revenues and deferred costs at September 29, 2012 were $32.3 million and $10.6 million, respectively, as compared to $20.7 million and $5.7 million, respectively, at December 31, 2011.

Costs incurred for shipping and handling are included in cost of sales.

Other Assets

Included in other assets at September 29, 2012 is restricted cash in the amount of $0.2 million. The restricted cash is in the form of an interest bearing account. Our obligation will be released upon the completion of our warranty obligation for a certain customer.

(3) Stock-Based Compensation

Stock-based compensation expense recognized under ASC Topic 718, Compensation – Stock Compensation (“ASC 718”), for employees and directors and the effect on our Condensed Consolidated Statements of Operations were as follows:

	Three Months Ended				Nine Months Ended
(In thousands)	September 29, 2012		October 1, 2011		September 29, 2012		October 1, 2011
Cost of sales	$	179	$	119	$	430	$	320
Research, development, and engineering	492		434		1,231		1,050
Selling, general and administrative expenses	2,683		2,105		6,718		4,820
Total stock-based compensation expense	$	3,354	$	2,658	$	8,379	$	6,190

Stock-based compensation cost capitalized as part of inventory during the three month period ended September 29, 2012 and the corresponding period of 2011 was $0.1 million and $0.1 million, respectively. The amount capitalized for the nine month period ended September 29, 2012 and the corresponding period of 2011 was $0.3 million and $0.2 million, respectively.

4

As required by ASC 718, we estimate expected forfeitures and recognize compensation costs only for those equity awards expected to vest. As of September 29, 2012, there was $46.7 million of total unrecognized compensation cost related to non-vested stock-based compensation arrangements granted under our 1993 Stock Option Plan/Stock Issuance Plan, as amended (“1993 Plan”), and our 1998 Supplemental Stock Option/Stock Issuance Plan, as amended (“1998 Plan”). The costs related to stock options and restricted stock units are expected to be recognized over a weighted average period of P5Y6M years and P4Y7M6D years, respectively.

On July 19, 2011, our stockholders approved amendments to the 1993 Plan which increased the number of shares available for issuance pursuant to the 1993 Plan by 3.3 million shares. The amendments, which were adopted by our Board of Directors on May 31, 2011, effective as of their approval by our stockholders, increased the share reserve, altered share-counting procedures, made changes to the non-employee director automatic grant program and enabled the grant of performance-based awards under the plan. These plans provide for the grant of stock-based awards to our eligible employees, consultants and advisers and non-employee directors. There were no shares reserved for future awards under the 1998 Plan since the plan expired on October 19, 2008. However, as of September 29, 2012, there were 2.2 million shares reserved for future awards under the 1993 Plan.

We used the following weighted-average assumptions to estimate the fair value of our stock options granted during the three and nine month periods ended September 29, 2012 and October 1, 2011, respectively:

	Three Months Ended		Nine Months Ended
	September 29, 2012	October 1, 2011	September 29, 2012	October 1, 2011
Expected life (in years)	8.4	7.9	7.7993150685	8.2
Risk-free interest rate	1.3%	2.6%	1.4%	3.0%
Volatility	49%	49%	48%	48%
Dividend yield	—	—	—	—

Our stock options granted during the three month period ended September 29, 2012 were granted with vesting terms of 50 months and 100 months. The weighted-average expected life of our stock options granted during the three months ended September 29, 2012 was 8.4 years.

(4) Basic and Diluted Net Income Per Share

The following table sets forth the computation of basic and diluted net income per share:

	Three Months Ended				Nine Months Ended
(In thousands, except per share amounts)	September 29, 2012		October 1, 2011		September 29, 2012		October 1, 2011
Numerator:
Net income	$	12,442	$	10,464	$	33,813	$	28,059
Denominator:
Basic weighted-average shares outstanding	27,047		25,977		26,635		25,678
Effect of dilutive employee stock options and restricted stock units	730		670		846		942
Diluted weighted-average shares outstanding	27,777		26,647		27,481		26,620
Net income per share - basic:
Net income	$	0.46	$	0.40	$	1.27	$	1.09
Net income per share - diluted:
Net income	$	0.45	$	0.39	$	1.23	$	1.05

For the three and nine month periods ended September 29, 2012, 1.4 million and 1.3 million shares of common stock subject to outstanding options, respectively, were excluded from the computation of diluted net income per share, as the effect would have been anti-dilutive, as compared to 1.3 million and 0.9 million shares of common stock related to outstanding options for the corresponding periods of 2011. There were no shares of common stock underlying outstanding restricted stock units excluded from the computation for the three and nine month periods ended September 29, 2012. The number of shares of common stock underlying outstanding restricted stock units that were excluded from the computation was 0.2 million and 0.1

5

million, respectively, for the corresponding periods of 2011. Options and restricted stock units are anti-dilutive when we have a net loss or when the exercise price and the average unrecognized compensation cost of the stock option or restricted stock unit is greater than the average market price of our common stock during the period.

(5) Fair Value Measurements

Fair value is defined under ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”) as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820 describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following:

• Level 1 - Quoted prices for identical assets or liabilities in active markets.

• Level 2 - Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets.

• Level 3 - Model-derived valuations in which one or more significant inputs or significant value drivers are unobservable.

We measure certain financial assets and liabilities at fair value on a recurring basis, including available-for-sale securities and foreign currency derivatives. The fair value of these certain financial assets and liabilities was determined using the following inputs at September 29, 2012 and December 31, 2011, respectively:

	Fair Value Measurements at September 29, 2012 Using
(In thousands)	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Available-for-sale securities(1)
Commercial paper	$	17,997		$	—	$	17,997		$	—
Money market funds	5,318			5,318		—			—
U.S. treasury bills and notes	4,026			—		4,026			—
Securities and obligations of U.S. government agencies	198,547			—		198,547			—
	225,888			5,318		220,570			—
Foreign currency derivatives(2)	8			—		8			—
Foreign currency derivatives(3)	(19		)	—		(19		)	—
	$	225,877		$	5,318	$	220,559		$	—
	Fair Value Measurements at December 31, 2011 Using
(In thousands)	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Available-for-sale securities(1)
Commercial paper	$	9,996		$	—	$	9,996		$	—
Money market funds	6,706			6,706		—			—
U.S. corporate debt securities	1,440			—		1,440			—
U.S. treasury bills and notes	3,913			—		3,913			—
Securities and obligations of U.S. government agencies	162,669			—		162,669			—
	184,724			6,706		178,018			—
Foreign currency derivatives(2)	3			—		3			—
Foreign currency derivatives(3)	(1		)	—		(1		)	—
	$	184,726		$	6,706	$	178,020		$	—

________________ 

(1) Included in cash and cash equivalents and short-term investments on our condensed consolidated balance sheet. See “Investments” in Note 6 for further details.

(2) Included in other current assets on our condensed consolidated balance sheet. Consisted of forward foreign exchange contracts for the Japanese yen. See “Derivative Instruments and Hedging” in Note 7 for further details.

(3) Included in other current liabilities on our condensed consolidated balance sheet. Consisted of forward foreign exchange contracts for the Japanese yen. See “Derivative Instruments and Hedging” in Note 7 for further details.

(6) Investments

We classified all of our investments as “available for sale” as of September 29, 2012 and December 31, 2011. Accordingly, we state our investments at estimated fair value. Fair values are determined based on quoted market prices or pricing models using current market rates. We deem all investments to be available to meet current working capital requirements. The cost of securities sold was determined based on the specific identification method.

The following table summarizes our investments:

	September 29, 2012								December 31, 2011
	Amortized Cost		Accumulated Other Comprehensive Income				Estimated Fair  Value		Amortized Cost		Accumulated Other Comprehensive Income				Estimated Fair  Value
Available-for-sale securities (in thousands)			Gains		Losses						Gains		Losses
Commercial paper	$	17,997	$	—	$	—	$	17,997	$	9,996	$	—	$	—	$	9,996
Money market funds	5,318		—		—		5,318		6,706		—		—		6,706
U.S. corporate debt securities	—		—		—		—		1,441		—		1		1,440
U.S. treasury bills and notes	4,022		4		—		4,026		3,908		5		—		3,913
Securities and obligations of U.S. government agencies	198,546		60		59		198,547		162,703		37		71		162,669
Total	$	225,883	$	64	$	59	$	225,888	$	184,754	$	42	$	72	$	184,724

The following table identifies the balance sheet classifications of our investments at September 29, 2012 and December 31, 2011:

(In thousands)	September 29, 2012		December 31, 2011
Cash equivalents	$	19,317	$	15,557
Short-term investments	206,571		169,167
Investments, at estimated fair value	$	225,888	$	184,724

The gross amortized cost and estimated fair value of our investments at September 29, 2012 and December 31, 2011, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties.

	September 29, 2012				December 31, 2011
(In thousands)	Gross Amortized Cost		Fair Value		Gross Amortized Cost		Fair Value
Due in one year or less	$	169,310	$	169,302	$	153,346	$	153,328
Due after one year through five years	56,573		56,586		31,408		31,396
Total	$	225,883	$	225,888	$	184,754	$	184,724

The following table provides the breakdown of the cash equivalents and investments with unrealized losses at September 29, 2012:

	In Loss Position for Less Than 12 Months				Total
(In thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Securities and obligations of U.S. government agencies	28,508		59		28,508		59
Total	$	28,508	$	59	$	28,508	$	59

The following table provides the breakdown of the cash equivalents and investments with unrealized losses at December 31, 2011:

	In Loss Position for Less Than 12 Months				Total
(In thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
U.S. Corporate debt securities	$	1,440	$	1	$	1,440	$	1
Securities and obligations of U.S. government agencies	28,173		71		28,173		71
Total	$	29,613	$	72	$	29,613	$	72

We review our investment portfolio regularly for impairment. A security is considered impaired when its fair value is less than its cost basis. If we intend to sell an impaired debt security or it is more likely than not that we will be required to sell it prior to recovery of its amortized cost basis, an other-than-temporary-impairment (“OTTI”) is deemed to have occurred. In these instances, the OTTI loss is recognized in earnings equal to the entire difference between the debt security’s amortized cost basis and its fair value at the balance sheet date.

If we do not intend to sell an impaired debt security and it is not more likely than not that we will be required to sell it prior to recovery of its amortized cost basis, we must determine whether it will recover its amortized cost basis. If we conclude it will not, a credit loss exists and the resulting OTTI is separated into:

• The amount representing the credit loss, which is recognized in earnings, and

• The amount related to all other factors, which is recognized in other comprehensive income.

As part of this assessment we will consider the various characteristics of each security, including, but not limited to the following: the length of time and the extent to which the fair value has been less than the amortized cost basis; adverse conditions specifically related to the security, an industry, or a geographic area; the payment structure of the debt security; failure of the issuer of the security to make scheduled interest or principal payments; any changes to the rating of the security by a rating agency and related outlook or status; recoveries or additional declines in fair value subsequent to the balance sheet date. The relative importance of this information varies based on the facts and circumstances surrounding each security, as well as the economic environment at the time of assessment.

We have not recorded any OTTI of our investments for the three and nine month periods ended September 29, 2012 and October 1, 2011.

(7) Derivative Instruments and Hedging

The majority of our revenue, expense and capital purchasing activities are transacted in U.S. dollars. However, we also enter into these transactions in other currencies, primarily Japanese yen as we have direct sales operations in Japan and orders are often denominated in Japanese yen. This subjects us to a higher degree of risk from currency exchange rate fluctuations.

Our policy is to minimize foreign currency denominated transaction and remeasurement exposure with derivative instruments, mainly forward contracts. We enter into foreign currency forward contracts that generally have maturities of nine months or less. The gains and losses on these derivatives are intended to mitigate the translation gains and losses recognized in earnings. We do not enter into foreign exchange forward contracts for speculative purposes.

Under ASC Topic 815, Derivatives and Hedging (“ASC 815”), all derivatives are recorded on the balance sheet at fair value. The gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. All of our derivatives are designated as hedging instruments under ASC 815. The fair value of derivative instruments recorded in our Condensed Consolidated Balance Sheets is as follows:

	Derivatives
		Fair Value as of
(In thousands)	Balance Sheet Location	September 29, 2012			December 31, 2011
Foreign exchange contracts	Other current assets	$	8		$	3
	Other current liabilities	(19		)	(1		)
Total derivatives		$	(11	)	$	2

Our derivative financial instruments are subject to both credit and market risk. Credit risk is the risk of loss due to failure of a counterparty to perform its obligations in accordance with contractual terms. Market risk is the potential change in an investment’s value caused by fluctuations in interest and currency exchange rates, credit spreads or other variables. We monitor the credit-worthiness of the financial institutions that are counterparties to our derivative financial instruments and do not consider the risks of counterparty nonperformance to be material. Credit and market risks, as a result of an offset by the underlying assets being hedged, related to derivative instruments were not considered material at September 29, 2012 and December 31, 2011.

Fair Value Hedging

We manage the foreign currency risk associated with Japanese yen denominated assets and liabilities using foreign exchange forward contracts. The change in fair value of these derivatives is recognized as a component of interest and other income (expense), net and is intended to offset the remeasurement gains and losses associated with the non-functional currency denominated assets and liabilities. At September 29, 2012, we had one currency buy-forward contract for the purchase of 77.4 million Japanese yen, or approximately $1.0 million and one currency sell-forward contract for the sale of 31.2 million Japanese yen, or approximately $0.4 million. The fair value of derivatives classified as balance sheet hedges at September 29, 2012 and December 31, 2011, respectively, was insignificant. The following sets forth the effect of the derivative instruments on our Condensed Consolidated Statements of Operations for the three and nine month periods ended September 29, 2012 and October 1, 2011, respectively:

		Amount of Loss Recognized in Income on Derivatives During
Derivatives in ASC 815 Fair Value Hedging Relationship	Location of Loss Recognized in Income on Derivatives	The three months ended, September 29, 2012 (in thousands)			The nine months ended, September 29, 2012 (in thousands)
Foreign exchange contracts	Interest and other income (expense), net	$	(8	)	$	(13	)
		Amount of Gain (Loss) Recognized in Income on Derivatives During
Derivatives in ASC 815 Fair Value Hedging Relationship	Location of Gain (Loss) Recognized in Income on Derivatives	The three months ended, October 1, 2011 (in thousands)			The nine months  ended, October 1, 2011 (in thousands)
Foreign exchange contracts	Interest and other income (expense), net	$	(3	)	$	22

(8) Inventories, net

Inventories consist of the following:

(In thousands)	September 29, 2012		December 31, 2011
Raw materials	$	21,273	$	17,373
Work-in-process	13,969		12,404
Finished products	12,504		11,508
Balance, end of the period	$	47,746	$	41,285

(9) Notes Payable

We have a line of credit agreement with a brokerage firm. Under the terms of this agreement, we may borrow funds at a cost equal to the current Federal funds open rate plus 125 basis points (approximately1.3% as of September 29, 2012). Funds are advanced to us under this facility based on pre-determined advance rates on the cash and securities held by us in this brokerage account. Under this facility, we may borrow up to 75% of our total cash, cash equivalents and investments balance in this brokerage account with no restriction in the use of those assets. This agreement has no set expiration date and there are no loan covenants, other than the aforementioned collateral requirement. As of September 29, 2012 and as of December 31, 2011, $1.0 million and $1.0 million, respectively, were outstanding under this facility, with a related collateral requirement of approximately $1.3 million and $1.3 million, respectively, of our cash, cash equivalents and investments.

(10) Current Liabilities

Deferred Services Revenue

A portion of our revenue is generated from service contracts. Payments from certain of these service contracts are collected in advance. As such, revenues from these service contracts are deferred and recognized ratably over the contract period for time-based service contracts, or as service hours are delivered for contracts based on a purchased quantity of hours. Changes in our deferred service revenue are as follows:

	Three Months Ended						Nine Months Ended
(In thousands)	September 29, 2012			October 1, 2011			September 29, 2012			October 1, 2011
Balance, beginning of the period	$	5,602		$	4,717		$	4,991		$	2,903
Additions	1,478			1,374			5,332			6,585
Revenue recognized	(1,153		)	(1,362		)	(4,396		)	(4,759		)
Balance, end of the period	$	5,927		$	4,729		$	5,927		$	4,729
Balance sheet classification
Deferred service income-short term	$	4,636		$	3,360
Deferred service income-long term	1,291			1,369
Balance, end of period	$	5,927		$	4,729

Other current liabilities

Other current liabilities consist of the following:

(In thousands)	September 29, 2012		December 31, 2011
Salaries and benefits	$	9,762	$	10,023
Warranty accrual	2,785		2,398
Advanced billing	411		5,809
Accrued taxes-other	591		1,729
Capital lease, current portion	45		176
Other	2,201		2,238
Balance, end of the period	$	15,795	$	22,373

Warranty Accrual

We generally warrant our new and refurbished products for material and labor to repair the product for periods of twelve months and three months, respectively, from the date of system acceptance. Accordingly, an accrual for the estimated cost of the warranty is recorded at the time the product is shipped. Extended warranty terms, if granted, result in deferral of revenue equating to our standard pricing for similar service contracts. Recognition of the related warranty cost is deferred until product revenue is recognized. Factors that affect our warranty liability include the number of installed units, historical and anticipated rates of warranty claims and cost per claim. We periodically assess the adequacy of our recorded warranty liabilities and adjust the amounts as necessary. We believe our warranty accrual, as of September 29, 2012, is sufficient to satisfy outstanding obligations as of that date. Changes in our warranty accrual are as follows:

	Three Months Ended						Nine Months Ended
(In thousands)	September 29, 2012			October 1, 2011			September 29, 2012			October 1, 2011
Balance, beginning of the period	$	2,795		$	2,674		$	2,398		$	2,111
Liabilities accrued for warranties issued	730			545			2,797			2,313
Warranty claims paid and utilized	(793		)	(529		)	(2,075		)	(1,633		)
Changes in accrued warranty liabilities	53			(414		)	(335		)	(515		)
Balance, end of the period	$	2,785		$	2,276		$	2,785		$	2,276

Advanced Billings

On occasion, we require, or our customers pay, a deposit in advance of order shipment. These amounts are classified as advanced billings until the related order ships. The balance of $0.4 million of advanced billings was from multiple customers as of September 29, 2012. There were $5.8 million of advance payments received as of December 31, 2011.

(11) Other Liabilities

Other liabilities consist of the following:

(In thousands)	September 29, 2012		December 31, 2011
Long-term income taxes payable	$	7,805	$	2,344
Asset retirement obligation	2,012		1,925
Deferred compensation	1,942		1,120
Deferred service income-long term	1,291		1,458
Postretirement medical obligation	909		909
Deferred rent	140		—
Other	225		357
Balance, end of the period	$	14,324	$	8,113

(12) Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive loss, net of tax, is comprised of the following items:

(In thousands)	September 29, 2012			December 31, 2011
Unrealized gain (loss) on available-for-sale investments	$	5		$	(30	)
Change in minimum postretirement medical obligation	(61		)	(69		)
Accumulated other comprehensive loss at end of period	$	(56	)	$	(99	)

(13) Employee Benefit Plans

Employee bonus plans

We currently sponsor an executive incentive bonus plan that distributes employee awards based on the achievement of predetermined targets. We recorded charges of $1.4 million and $4.0 million under this bonus plan for the three and nine month periods ended September 29, 2012, respectively, as compared to $0.8 million and $2.6 million for the corresponding periods of 2011, respectively.

Employee savings and retirement plans

We sponsor a 401(k) employee salary deferral plan that allows voluntary contributions by all full-time employees up to the Internal Revenue Service limits of their pretax earnings. We may also make matching contributions to this plan at our discretion. Employees are eligible for the matching plan if they contribute at least 2% of their compensation. Our contributions, when made, are limited to a maximum of 3% of the employee's compensation if the company exceeds certain income levels.

We contributed $0.1 million and $0.5 million to this plan for each of the three and nine month periods ended September 29, 2012, respectively. For the three and nine month periods ended October 1, 2011, we contributed $0.2 million and $0.5 million respectively.

We also sponsor an executive non-qualified deferred compensation plan (the “Plan”) that allows qualifying executives to defer current cash compensation. As of September 29, 2012, Plan assets of $1.6 million, representing the cash surrender value of life insurance policies held by us and liabilities of $1.9 million were included in our Consolidated Balance Sheets under the captions “Other assets” and “Other liabilities”, respectively. The related Plan expenses for each of the three and nine month periods ended September 29, 2012 and October 1, 2011 were insignificant.

Postretirement benefits

We have committed to providing and fully paying for lifetime postretirement medical and dental benefits to our Chief Executive Officer and Chief Financial Officer and their spouses, commencing after retirement. We recorded net periodic benefit costs of an insignificant amount for the three and nine month periods ended September 29, 2012 and October 1, 2011, respectively.

(14) Income Taxes

For the three and nine month periods ended September 29, 2012, we recorded income tax provisions of $2.6 million and $5.8 million, respectively as compared to $1.0 million and $2.4 million for the comparable periods in 2011. The income tax provision recognized for the nine month period ended September 29, 2012 resulted primarily from U.S. federal, state and foreign income taxes.

In accordance with FASB ASC Topic 740, Income Taxes (“ASC 740”), we had unrecognized tax benefits of $5.5 million as of December 31, 2011. We continue to recognize interest and penalties as a component of the income tax provision. If we are able to eventually recognize these uncertain tax positions, $5.5 million of our unrecognized benefit would reduce the effective tax rate. Over the next twelve months, we expect an insignificant decline in liabilities associated with our uncertain tax positions as a result of expiring statutes of limitations.

We currently have a full valuation allowance against our U.S. net deferred tax asset. We continue to monitor the relative weight of positive and negative evidence of future profitability in relevant jurisdictions. As of September 29, 2012, we have experienced historical profitability. However, as of September 29, 2012, we have determined that the following negative evidence outweighs the positive evidence such that it is not more likely than not the Company will generate sufficient taxable income in the relevant jurisdictions to utilize our deferred tax assets and release the associated valuation allowance:

• Movement of certain product manufacturing to Singapore, resulting in reduced U.S. taxable income,

• Inherent earnings volatility of our industry resulting in our inability to forecast long term earnings, and

• Usage limitations resulting in a longer period being required to realize our deferred tax assets.

It is possible that sometime in the next 12 months the positive evidence will be sufficient to release a material amount of our valuation allowance; however there is no assurance that this will occur.

As a result of our analysis, we concluded that it is more likely than not that, as of September 29, 2012, our net deferred tax assets will not be realized, with the exception of those in Japan and Taiwan. Therefore, we continue to provide a full valuation allowance against net deferred tax assets outside of Japan and Taiwan. We closely monitor available evidence, and as noted above, may release some or all of the valuation allowance in future periods.

We are subject to federal and state tax examinations for years 1999 forward and 1997 forward, respectively, by virtue of the tax attributes carrying forward from those years. We are also subject to audits in the foreign jurisdictions in which we operate for years 2004 and forward. There are no material income tax audits currently in progress as of September 29, 2012.

(15) Intangible Assets, net

On June 26, 2012, we entered into a patent assignment agreement with International Business Machines Corporation (“IBM”), a customer of ours. We acquired the rights to a collection of patents and patent applications from IBM, including patents and patent applications in packaging such as C4 bumping, Ball Grid Arrays, lead-free solders and 3D packaging. Representing both U.S. and foreign patents, the portfolio includes claims directed at methods of making, at compositions and at structures of semiconductor devices. We paid $8.0 million for the rights to the patents and patent applications.

As of September 29, 2012, the gross carrying amount of all our patents was $8.8 million and accumulated amortization was $0.6 million. The weighted average life of all our patents was 11.9 years as of September 29, 2012. During the three and nine month periods ending September 29, 2012, our amortization expense for our patents was $0.2 million and $0.3 million, respectively, as compared to an insignificant amount and $0.1 million for the corresponding periods of 2011, respectively. Our patents are our only class of intangible assets.

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The table below summarizes the amortization of our patents as of September 29, 2012

Year	(In thousands)
Remainder of 2012	215
2013	895
2014	881
2015	848
2016	799
There after	4,533
Total	8,171

(16) Commitments and Contingencies

Commitments

In March 2010, the Company entered into a building lease agreement (the "Original Lease") in preparation for the expansion of our manufacturing operations in Singapore. The initial term of the lease is three years, and the lease is accounted for as an operating lease.

On August 15, 2012, Ultratech SE Asia PTE, Ltd (“Singapore SE”), an indirect wholly-owned subsidiary of Ultratech, Inc., renegotiated the Original Lease and entered into a new lease (the “New Singapore Lease”) with Ascendas Services Pte Ltd, (“Ascendas”), effective June 15, 2013. The New Singapore Lease governs the terms and conditions under which Singapore SE leases certain premises from Ascendas located at 1 Kaki Bukit View, Singapore. The New Singapore Lease extended the term of the Original Lease such that it expires on June 14, 2018 and sets forth the revised base rent for each of the years covered.

The table below summarizes our operating lease commitments as of September 29, 2012.

In thousands	Operating Leases
For the years:
Remainder of 2012	618
2013	2,487
2014	2,481
2015	2,339
2016	740
Thereafter	883
Total minimum lease payments	9,548

In July 2007, we capitalized a five-year lease agreement for a new phone system recorded as office equipment. The amortization of this phone system is included with depreciation expense.

In August 2008 and December 2009, we entered into agreements with a leasing company for the sale and leaseback of certain assets for an initial term of 4years. The sale prices of these items were $6.8 million and $5.4 million in 2008 and 2009, respectively. There was no gain or loss from these transactions. Under these sale-leaseback arrangements, we have an option to purchase the assets back at the future current fair market value upon the expiration of the leases in 2012 and 2013, respectively. These leases are classified as operating leases in accordance with ASC Topic 840, Leases. In January 2009, we bought back assets with values totaling $1.3 million. We did not buy back any assets during the three and nine month periods ended September 29, 2012. In April 2010, we bought back an asset with a value of $1.2 million. As of September 29, 2012, the minimum future lease payments to be made under these agreements were $2.3 million.

On May 10, 2012, we entered into a lease extension for the August 2008 transaction. The twenty-seven month extension is valued at $2.0 million and will expire on August 14, 2014.

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Legal Proceedings

Ultratech, Inc. is a defendant in Dennis Rice v. Ultratech, Inc., et al., a class action lawsuit commenced on June 14, 2012 in the Superior Court of California, County of Santa Clara. The plaintiff alleges that the proposal in our proxy seeking approval to increase the authorized shares of common stock from 40 million to 80 million was misleading and incomplete and that the directors violated their fiduciary duties by making these misleading disclosures. The plaintiff sought to enjoin the stockholders’ vote on this proposal. On July 16, 2012, the Court held a hearing on plaintiff’s motion for a preliminary injunction and issued an order denying the plaintiff’s motion. After plaintiff’s motion for an injunction was denied, plaintiff indicated it intended to file an amended complaint, and the amended complaint was filed on October 24, 2012. The amended complaint asserts the same causes of action, against the same defendants, as the original complaint, but adds a few new allegations regarding the process by which the proxy was approved. We believe the action is without merit and we plan a vigorous defense.

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

Certain of the statements contained herein, which are not historical facts and which can generally be identified by words such as “anticipates,” “expects,” “intends,” “will,” “could,” “believes,” “estimates,” “continues,” and similar expressions, are forward-looking statements under Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that involve risks and uncertainties, such as risks related to timing, delays, deferrals and cancellations of orders by customers, including as a result of semiconductor manufacturing capacity as well as our customers' financial condition and demand for semiconductors; demand for consumer devices; industry growth within our served markets; continued delivery of financial performance and value; cyclicality in the semiconductor and nanotechnology industries; our dependence on new product introductions and market acceptance of new products and enhanced versions of our existing products; lengthy sales cycles, including the timing of system installations and acceptances; quarterly revenue fluctuations; lengthy and costly development cycles for laser-processing and lithography technologies and applications; integration, development and associated expenses of the laser thermal processing operation; general economic and financial market conditions including impact on capital spending, as well as difficulty in predicting changes in such conditions; rapid technological change and the importance of product introductions; customer concentration; pricing pressures and product discounts; high degree of industry competition; intellectual property matters; changes in pricing by us, our competitors or suppliers; international sales and operations; timing of new product announcements and releases by us or our competitors; ability to volume produce systems and meet customer requirements; sole or limited sources of supply; effect of capital market fluctuations on our investment portfolio; ability and resulting costs to attract or retain key personnel; dilutive effect of employee stock option grants on net income per share, which is largely dependent upon our achieving and maintaining profitability and the market price of our stock; mix of products sold; outcome of litigation; manufacturing variances and production levels; timing and degree of success of technologies licensed to outside parties; product concentration and lack of product revenue diversification; inventory obsolescence; asset impairment; changes to financial accounting standards; effects of certain anti-takeover provisions; future acquisitions; volatility of stock price; foreign government regulations and restrictions; business interruptions due to natural disasters or utility failures; environmental regulations; and any adverse effects of public health issues, wars or terrorist attacks in the United States or elsewhere, or government responses thereto, or military actions in Iraq, Afghanistan and elsewhere, on the economy in general, or on our business in particular. Due to these and additional factors, the statements, historical results and percentage relationships set forth below are not necessarily indicative of the results of operations for any future period. These forward-looking statements are based on management's current beliefs and expectations, some or all of which may prove to be inaccurate, and which may change. We undertake no obligation to revise or update any forward-looking statements to reflect any event or circumstance that may arise after the date of this report.

OVERVIEW

We develop, manufacture and market photolithography and laser thermal processing equipment for manufacturers of semiconductor devices and nanotechnology components located throughout North America, Europe, Japan, Taiwan, Korea and the rest of Asia. We supply step-and-repeat photolithography systems based on one-to-one imaging technology. Within the semiconductor industry, we target the market for advanced packaging applications. Our laser thermal processing equipment is targeted at advanced annealing applications within the semiconductor industry. Within the nanotechnology industry, our target markets include thin film head magnetic recording devices, ink jet print heads, and HBLEDs.

RESULTS OF OPERATIONS

We derive a substantial portion of our total net sales from sales of a relatively small number of newly manufactured systems, which typically range in price from $1.0 million to $6.0 million. As a result of these sale prices, the timing and recognition of revenue from a single transaction has had and most likely will continue to have a significant impact on our net sales and operating results for any particular period.

Our backlog at the beginning of a period typically does not include all of the sales needed to achieve our sales objectives for that period. In addition, orders in backlog are subject to cancellation, shipment or system acceptance delays, and deferral or rescheduling by a customer with limited or no penalties. Consequently, our net sales and operating results for a period have been and will continue to be dependent upon our obtaining orders for systems to be shipped and accepted in the same period in which the order is received. Our business and financial results for a particular period could be materially adversely affected if an anticipated order for even one system is not received in time to permit shipment and system acceptance during that period. Furthermore, a substantial portion of our shipments has historically occurred near the end of each quarter. Delays in installation and system acceptance due, for example, to our inability to successfully demonstrate the agreed-upon specifications or criteria at the customer’s facility, or to the failure of the customer to permit installation of the system in the

9

agreed upon time, may cause net sales in a particular period to fall significantly below our expectations, which may materially adversely affect our operating results for that period. This risk is especially applicable in connection with the introduction and initial sales of a new product line. Additionally, the failure to receive anticipated orders or delays in shipments due, for example, to rescheduling, delays, deferrals or cancellations by customers, additional customer configuration requirements, or to unexpected manufacturing difficulties or delays in deliveries by suppliers due to their long production lead times or otherwise, have caused and may continue to cause net sales in a particular period to fall significantly below our expectations, materially adversely affecting our operating results for that period. In particular, the long manufacturing and acceptance cycles of our advanced packaging family of wafer steppers and laser thermal processing systems and the long lead time for lenses and other materials, could cause shipments and acceptances of such products to be delayed from one quarter to the next, which could materially adversely affect our financial condition and results of operations for a particular quarter.

Additionally, the need for continued expenditures for research and development, capital equipment, ongoing training and worldwide customer service and support, among other factors, will make it difficult for us to reduce our operating expenses in a particular period if we fail to achieve our net sales goals for the period.

Net Sales

Third Quarter

	Three Months Ended
(In thousands, except percentages)	September 29, 2012		October 1, 2011		Amount of Change			Percentage Change
Sales of:
Products	$	56,242	$	49,283	$	6,959		14.1	%
Services	3,652		5,361		(1,709		)	(31.9	)%
Licenses	653		300		353			117.7	%
Total net sales	$	60,547	$	54,944	$	5,603		10.2	%

Net sales consist of revenues from products (system, system upgrades, and spare parts sales), services, and licensing of technologies. Product sales increased 14.1% to $56.2 million for the three month period ended September 29, 2012, as compared to $49.3 million in the corresponding period of 2011. The $7.0 million increase was due to (i) increased system sales of $2.8 million, (ii) an increase in system upgrade sales of $2.2 million, and (iii) an increase in parts sales of $2.0 million.

On a product market application basis, systems sales and system upgrades to the semiconductor market increased $7.3 million to $42.1 million for the three month period ended September 29, 2012, as compared to $34.8 million in the corresponding period of 2011. The increase was primarily due to an increase in the average selling price of systems and number of upgrades sold. Semiconductor industry sales consist of sales to the advanced packaging market, the laser processing applications market and the semiconductor market.

Nanotechnology market system sales were $7.6 million for the three month period ended September 29, 2012 as compared to $10.0 million in system sales in the corresponding period of 2011. The $2.4 million decrease was attributable to a decrease in unit sales. System sales to the nanotechnology market are highly dependent on customer capacity demand in the industries we serve, including HBLEDs, thin film heads, automotive MEMS, LED/laser diodes, and ink jet print heads, and therefore, we expect to experience significant variations in sales to this market from period to period.

Services sales for the three month period ended September 29, 2012 decreased $1.7 million to $3.7 million as compared to $5.4 million during the same period of 2011. The decrease in services revenue was the result of (i) $0.8 million decrease in non-contract billable services, (ii) $0.7 million in decreased contract services sales and (iii) $0.2 million decrease in sales of training.

License sales consisted of $0.7 million of royalty revenues for the three month period ended September 29, 2012 as compared to $0.3 million of royalty revenue for the corresponding period of 2011. License revenue results from tool resales by our existing customers to third parties and from royalty arrangements. Pursuant to our license arrangements, such transactions are subject to a license fee based on units sold. Future revenues from licensing activities, if any, will be contingent upon existing and future licensing arrangements. We may not be successful in generating licensing revenues in the future and do not anticipate the recognition of significant levels of licensing income during the remainder of 2012.

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At September 29, 2012, we had $21.7 million of net deferred product and services income compared to $15.0 million at December 31, 2011. The gross amount of deferred revenues at September 29, 2012 was $32.3 million as compared to $20.7 million at December 31, 2011. The gross amount of deferred costs at September 29, 2012 was $10.6 million as compared to $5.7 million at December 31, 2011. Deferred product income is recognized as revenue upon satisfying the contractual obligations for installation and/or system acceptance. Deferred services income is recognized as revenue ratably over the contract period (for time-based service contracts), or as purchased services are rendered (for contracts based on a purchased quantity of hours).

For the three month period ended September 29, 2012, international net sales decreased $2.9 million to $31.4 million or 51.9% of total net sales, as compared to $34.3 million, or 62.5% of total net sales for the corresponding period of 2011. The decrease in international sales as a percentage of total sales was due to a decrease in unit sales to Asian customers. For the three month period ended September 29, 2012 as compared to the corresponding 2011 period, (i) sales to Europe increased by $1.2 million, (ii) sales to Japan decreased by $0.4 million, (iii) sales to Taiwan decreased by $1.7 million, (iv) sales to Korea increased by $1.2 million, and (v) sales to the rest of Asia decreased by $3.2 million. Sales to Germany represented 12% of total net sales for the three month period ending September 29, 2012.

Our international revenue generally is not subject to significant exchange rate fluctuations, principally because sales contracts for our systems are generally denominated in U.S. dollars. In Japan, however, orders are sometimes denominated in Japanese yen. Yen denominated contracts subject us to the risk of currency fluctuations. We attempt to mitigate this risk by entering into foreign currency forward exchange contracts for the period between when an order is received and when it is recorded as revenue. After recording revenue, we use various mechanisms, such as natural hedges, to offset substantial portions of the gains or losses associated with our Japanese yen denominated receivables due to exchange rate fluctuations. We had approximately 85.7 million Japanese yen denominated receivables at September 29, 2012. International sales expose us to a number of additional risks, including fluctuations in the value of local currencies relative to the U.S. dollar, which impact the relative cost of ownership of our products and, thus, the customer’s willingness to purchase our product. (See Part II, Item 1A, “Risk Factors” herein).

Year-To-Date

	Nine Months Ended
(In thousands, except percentages)	September 29, 2012		October 1, 2011		Amount of Change			Percentage Change
Sales of:
Products	$	154,870	$	140,736	$	14,134		10.0	%
Services	13,061		14,786		(1,725		)	(11.7	)%
Licenses	1,303		750		553			73.7	%
Total net sales	$	169,234	$	156,272	$	12,962		8.3	%

Product sales increased 10% to $154.9 million for the nine month period ended September 29, 2012 as compared to the same period in 2011. The increase was due to (i) increased systems upgrade sales of $10.3 million and (ii) increased parts sales of $2.8 million, and (iii) increased systems sales of $1.0 million.

On a product market applications basis during the nine months ended September 29, 2012, system sales and system upgrade sales to the semiconductor industry increased by $4.3 million to $111.2 million from the corresponding period of 2011. The increase was primarily due to the product mix of units sold and increased systems upgrade activities. Semiconductor industry sales consist of sales to the advanced packaging market, the laser processing applications market and the semiconductor market.

Nanotechnology market sales were $27.3 million for the nine month period ended September 29, 2012 compared to $20.3 million of system sales in the corresponding period of 2011. The increase in sales to the nanotechnology market was due to an increase in unit sales and product mix. System sales to the nanotechnology market are highly dependent on customer capacity demand in the industries we serve, including thin film heads, automotive MEMS, LED/laser diodes, HBLEDs, and ink jet print heads, and therefore we expect to experience significant variations in sales to this market from period to period.

Service revenue during the nine month period ended September 29, 2012 decreased $1.7 million from the comparable period of 2011. Revenues from licensing activities increased $0.6 million for the nine months ended September 29, 2012 as compared to the same period of 2011.

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For the nine month period ended September 29, 2012, international net sales increased $19.1 million to $106.0 million, or 62.6% of total net sales, as compared with $86.9 million, or 55.6% of total net sales, for the comparable period of 2011. The increase in international sales as a percentage of total sales was due to a combination of an increase in sales in the European and Asian regions and a decrease in sales to North America. For the nine month period ended September 29, 2012, as compared to the same period of 2011, the increase in international sales was due to (i) increased sales to the rest of Asia region of $14.5 million, and (ii) increased sales to Europe of $15.6 million, partially offset by (a) decreased sales to Japan of $4.9 million, (b) decreased sales to Taiwan of $4.6 million and (c) decreased sales to Korea of $1.6 million. Sales to Germany represented 11% of total net sales for the nine month period ending September 29, 2012.

Gross Profit

Third Quarter

On a comparative basis, gross margins increased to 56.4% for the three month period ended September 29, 2012, compared to 53.5% for the corresponding period of 2011. The 2.9 percentage point increase in gross margin was due to (i) 2.4 percentage point increase due to lower manufacturing costs, (ii) 0.7 percentage point increase related to lower service labor costs, (iii) 0.4 percentage point increase due to a reduction of inventory reserves, partially offset by a 0.6 percentage point decrease related to higher installation service costs.

Year-To-Date

On a comparative basis, gross margins increased to 55.9% for the nine month period ended September 29, 2012, compared to 51.6% for the corresponding period of 2011. The 4.3 percentage point increase in gross margins was due to (i) a 1.8 percentage point increase resulting from lower manufacturing costs, (ii) a 1.7 percentage point increase related to lower service labor costs, (iii) a 1.5 percentage point increase related to improved manufacturing efficiency, partially offset by a 0.5 percentage point decrease related to higher freight costs and fees, and a 0.2 percentage point decrease related to higher installation and warranty costs.

Our gross profit as a percentage of sales has been and most likely will continue to be significantly affected by a variety of factors, including the following: the introduction of new products, which typically have higher manufacturing costs until manufacturing efficiencies are realized and which are typically discounted more than existing products until the products gain market acceptance; the mix of products sold; the rate of capacity utilization; write-down of inventory and open purchase commitments; product discounts, pricing and competition in our targeted markets: and non-linearity of shipments during the period that can result in manufacturing inefficiencies.

Operating Expenses

Third Quarter

	Three Months Ended
(In thousands, except percentages)	September 29, 2012		October 1, 2011		Amount of Change			Percentage Change
Research, development, and engineering	$	7,745	$	6,349	$	1,396		22.0	%
Selling, general, and administrative	11,469		11,484		(15		)	(0.1	)%
Total operating expenses	$	19,214	$	17,833	$	1,381		7.7	%

Research, development and engineering expenses for the three month period ended September 29, 2012 were $7.7 million, as compared to $6.3 million for the corresponding period in 2011. This increase was attributable to (i) $0.8 million in additional research and development related activities, (ii) $0.3 million in compensation costs, (iii) $0.2 million in depreciation, and (iv) $0.1 million related to travel expenses as compared to the corresponding period of 2011. As a percentage of net sales, research, development and engineering expenses for the three month period ended September 29, 2012 increased to 12.8% from 11.6% for the corresponding period of 2011. This percentage increase was primarily due to expenses increasing at a higher rate than revenue as compared to the corresponding period of 2011.

Selling, general, and administrative expenses for the three month period ended September 29, 2012 were $11.5 million as compared to $11.5 million for the corresponding period of 2011. Increases related to stock-based compensation and legal fees were offset by decreases in other employee-related items and non-legal professional fees. As a percentage of net

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sales, selling, general and administrative expenses for the three month period ended September 29, 2012 decreased to 18.9% as compared to 20.9% for the corresponding period of 2011 resulting primarily from the increase in net sales.

Year-To-Date

	Nine Months Ended
(In thousands, except percentages)	September 29, 2012		October 1, 2011		Amount of Change		Percentage Change
Research, development, and engineering	$	22,280	$	17,832	$	4,448	24.9	%
Selling, general, and administrative	32,938		32,301		637		2.0	%
Total operating expenses	$	55,218	$	50,133	$	5,085	10.1	%

Research, development and engineering expenses for the nine month period ended September 29, 2012 were $22.3 million as compared to $17.8 million for the corresponding period in 2011. This $4.4 million increase was due to the following: (i) $2.4 million in additional research and development related activities, (ii) $0.8 million in compensation expense, (iii) $0.4 million in engineering consulting expense, (iv) $0.1 million of materials costs, (v) $0.1 million of travel-related expenses, and (vi) $0.6 million of other miscellaneous expenses. As a percentage of net sales, research, development and engineering expenses for the nine month period ended September 29, 2012 increased to 13.2% from 11.4% for the corresponding period of 2011.

Selling, general and administrative expenses were $32.9 million for the nine month period ended September 29, 2012 as compared with $32.3 million for the corresponding period in 2011. The $0.6 million increase was due to (i) an increase in stock-based compensation of $1.9 million, (ii) increased legal fees of $0.8 million, partially offset by (a) an allocation of administrative costs to research and development of $1.3 million, (b) a reduction of professional services costs of $0.6 million, and (c) a reduction of compensation related costs of $0.2 million. As a percentage of total net sales, selling, general and administrative expenses for the nine month period ended September 29, 2012 decreased to 19.5% from 20.7% for the corresponding period of 2011. This decrease was primarily due to the increase in net sales as compared to the corresponding period of 2011.

Provision for Income Taxes

For the three and nine month periods ended September 29, 2012, we recorded income tax provisions of $2.6 million and $5.8 million, respectively, as compared to $1.0 million and $2.4 million, respectively, for the comparable periods in 2011. The income tax provisions recognized for the three and nine month periods ended September 29, 2012 resulted primarily from U.S. federal, state and foreign income taxes. Income tax estimates can be affected by estimates of whether, and within which jurisdictions, future earnings will occur and how, when and if cash is repatriated to the United States, combined with other aspects of an overall income tax strategy. Additionally, taxing jurisdictions could retroactively disagree with our tax treatment of certain items, and some historical transactions have income tax effects going forward. Accounting rules require these future effects to be evaluated using current laws, rules and regulations, each of which can change at any time and in an unpredictable manner. We believe we have adequately provided for any reasonably foreseeable outcome related to these matters and we do not anticipate any material earnings impact from their ultimate resolution.

We are eligible for tax incentives that provide that certain income earned in Singapore is subject to a tax holiday and/or reduced tax rates for a limited period of time under the laws of Singapore. To realize these benefits, we must meet certain requirements relating to employment and investment activities. This exemption is expected to expire within 9 years. Our ability to realize benefits from these initiatives could be materially adversely affected if, among other things, applicable requirements are not met, the incentives are substantially modified, or if we incur losses for which we cannot take a deduction.

Each quarter we assess the likelihood that we will be able to recover our deferred tax assets. 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 the valuation allowance. As a result of our analysis, we concluded that it is more likely than not that, as of September 29, 2012, our net deferred tax assets will not be realized, with the exception of those in Japan and Taiwan. Therefore, we continue to provide a full valuation allowance against net deferred tax assets outside of Japan and Taiwan. It is possible that sometime in the next 12 months the positive evidence will be sufficient to release a material amount of our valuation allowance; however, there is no assurance that this will occur.

We are subject to federal and state tax examination for years 1999 forward and 1997 forward, respectively, by virtue of the tax attributes carrying forward from those years. We are also subject to audits in the foreign jurisdictions in which we operate for years 2004 and forward. There are no material income tax audits currently in progress as of September 29, 2012.

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Outlook

The anticipated timing of orders, shipments and system acceptances usually requires that we fill a number of production slots in any given period in order to meet our sales targets. If we are unsuccessful in our efforts to secure those production orders, or if existing production orders are delayed or cancelled, our results of operations will be materially adversely impacted. Additionally, we may not exceed or even maintain our current or prior levels of net sales for any period in the future for the reasons enumerated in this report and our Annual Report on Form 10-K for the year ended December 31, 2011. We believe that the market acceptance and volume production of our advanced packaging systems, laser processing systems and our 1000 Platform steppers are of critical importance to our future financial results. At September 29, 2012, these systems represented approximately 82% of our backlog. We presently expect net sales for the fourth quarter of 2012 to approximate net sales reported for the third quarter of 2012. We anticipate our cash flow to be positive for the fourth quarter of 2012. We expect sales to international customers will continue to represent a significant portion of our revenues for the remainder of fiscal 2012.

LIQUIDITY AND CAPITAL RESOURCES

Net cash provided by operating activities was $56.0 million for the nine month period ended September 29, 2012, compared to $29.8 million of cash provided by operations for the comparable period in 2011. Net cash provided by operating activities during the nine month period ended September 29, 2012 was attributable to (i) $46.1 million of cash sources from operating activities after non-cash adjustments like depreciation and stock-based compensation, and (ii) $9.8 million of net cash inflows caused by changes to our working capital as described below.

Changes in working capital sources were due to (i) $6.7 million increase in timing differences between customer shipments and deferred revenues, (ii) $6.2 million from changes in accounts receivable, (iii) $6.1 million in changes in other long-term liabilities, and (iv) timing of payments and accruals in accounts payable of $4.5 million.

Working capital uses were due to (i) an increase in inventories of $6.5 million, (ii) a reduction of other current liabilities of $6.6 million, and (iii) changes in prepaid expense, other current and non-current assets of $0.6 million.

We believe that because of the relatively long manufacturing cycle of certain of our systems, particularly newer products, our inventories will continue to represent a significant portion of working capital. Currently, we are devoting significant resources to the commercialization of our laser processing systems and to the development of our next generation 1X lithography technologies. We currently intend to continue to incur significant operating expenses in the areas of research, development and engineering, manufacturing, and selling, general and administrative costs in order to further develop, produce and support these new products. Additionally, gross profit margins, inventory and capital equipment levels may be adversely impacted in the future by costs associated with the production of our laser processing systems and by future generations of our 1X wafer steppers. These costs include, but are not limited to, additional manufacturing overhead, costs of demonstration systems and facilities and the establishment of additional after-sales support organizations. Moreover, there can be no assurance that operating expenses will not increase, relative to sales, as a result of adding technical, marketing and administrative personnel, among other costs, to support our new products. If we are unable to achieve significantly increased net sales or if our sales fall below expectations, our cash flow and operating results will be materially adversely affected until, among other factors, costs and expenses can be reduced. Our failure to achieve our sales targets for these new products could result in inventory write-offs and asset impairment charges, either of which could materially adversely impact our results of operations.

During the nine month period ended September 29, 2012, net cash used in investing activities was $51.5 million, attributable to net purchases of short-term investments of $37.3 million, purchases of patents and patent applications of $8.0 million and capital expenditures of $6.2 million.

Net cash provided by financing activities was $11.1 million during the nine months ended September 29, 2012. The increase in cash was attributable to the proceeds from the issuance of common stock of $15.4 million, net of taxes paid related to the issuance of shares of common stock pursuant to vested restricted stock units of $4.3 million.

At September 29, 2012, we had working capital of $331.5 million. Our principal source of liquidity is cash provided by our operations at September 29, 2012 and consisted primarily of $279.9 million in cash, cash equivalents and short-term investments, net of outstanding borrowings under our line of credit. Our ability to generate cash provides us with substantial financial flexibility in meeting our operating, investing and financing needs.

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As of September 29, 2012, $31.5 million of our cash, cash equivalents, and investments were held by foreign subsidiaries. Amounts held by foreign subsidiaries are generally subject to U.S. income taxation on repatriation to the United States. We currently have no plans to repatriate any foreign earnings back to the United States as we believe our cash flows provided by our U.S. operations will meet our future U.S. liquidity needs.

We have a line of credit agreement with a brokerage firm. Under the terms of this agreement, we may borrow funds at a cost equal to the current Federal funds open rate plus 125 basis points (approximately 1.3% as of September 29, 2012). Certain of our cash, cash equivalents and marketable securities secure borrowings outstanding under this facility, but we are not restricted in the use of those assets. Funds are advanced to us under this facility in accordance with pre-determined advance rates based on the cash and securities held by us in this brokerage account. This agreement has no set expiration date and there are no loan covenants other than a collateral requirement. As of September 29, 2012, $1.0 million was outstanding under this facility, with a related collateral requirement of approximately $1.3 million of our cash, cash equivalents and short-term investments.

The development and manufacture of new lithography and laser-based systems and system enhancements is highly capital-intensive. In order to be competitive, we believe we must continue to make significant expenditures for capital equipment; sales, service, training and support capabilities; systems, procedures and controls; and expansion of operations and research and development, among many other items. We expect that cash generated from operations and our cash, cash equivalents and short-term investments will be sufficient to meet our cash requirements for at least the next twelve months. However, in the near-term, we may continue to utilize existing and future lines of credit, and other sources of financing, in order to maintain our present levels of cash, cash equivalents and investments. Beyond the next twelve months, we may require additional equity or debt financing to address our working capital or capital equipment needs. In addition, we may seek to raise equity or debt capital at any time that we deem market conditions to be favorable. Additional financing, if needed, may not be available on reasonable terms, or at all.

We may in the future pursue acquisitions of complementary product lines, technologies or businesses. Future acquisitions may result in potentially dilutive issuances of equity securities, the incurrence of debt and contingent liabilities and amortization expenses and impairment charges related to goodwill and other intangible assets, which could materially adversely affect our financial condition and results of operations. In addition, acquisitions involve numerous risks, including difficulties in the assimilation of the operations, technologies, personnel and products of the acquired companies; the diversion of management’s attention from other business concerns; risks of entering markets in which we have limited or no direct experience; and the potential loss of key employees of the acquired company. In the event we acquire product lines, technologies or businesses which do not complement our business, or which otherwise do not enhance our sales or operating results, we may incur substantial write-offs and higher recurring operating costs, which could have a material adverse effect on our business, financial condition and results of operations. In the event that any such acquisition does occur, there can be no assurance as to the effect thereof on our business or operating results.

Foreign Currency

As part of our overall strategy to manage the level of exposure to the risk of foreign currency exchange rate fluctuations, we attempt to hedge most of our Japanese yen denominated foreign currency exposures. We use foreign currency forward contracts to hedge the risk that outstanding Japanese yen denominated receipts from customers, for actual or forecasted sales of our products after receipt of customer orders, may be adversely affected by changes in foreign currency exchange rates. We use foreign currency forward exchange contracts and natural hedges to offset substantial portions of the potential gains or losses associated with our Japanese yen denominated assets and liabilities due to exchange rate fluctuations. We enter into foreign currency forward contracts that generally have maturities of three months or less.

Critical Accounting Policies

The discussion and analysis of our financial condition and results of operations is based upon our unaudited condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. On an on-going basis, we evaluate our critical accounting policies and estimates. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Our critical accounting policies and estimates are discussed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2011.

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Information Available on Company Website

Our website is located at www.ultratech.com. We make available, free of charge through our website, our annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K (and amendments to those reports), as soon as reasonably practicable after such reports are filed electronically with the SEC. We have adopted a Code of Ethics for our principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. We have posted this Code of Ethics on our website. Any future amendments to or waivers of this Code of Ethics will also be posted on our website.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Reference is made to Part II, Item 7A, “Quantitative and Qualitative Disclosures About Market Risk” in our Annual Report on Form 10-K for the year ended December 31, 2011 and to the subheading “Derivative Instruments and Hedging” under the heading “Notes to Consolidated Financial Statements” in Item 8, “Financial Statements and Supplementary Data” of our Annual Report on Form 10-K for the year ended December 31, 2011.

Interest Rate Risk

Our exposure to market risk due to potential changes in interest rates relates primarily to our investment portfolio, which consisted primarily of fixed interest rate instruments as of September 29, 2012. We maintain an investment policy designed to ensure the safety and preservation of our invested funds by limiting market risk and the risk of default.

Certain of our cash, cash equivalents and short and long-term investments serve as collateral for a line of credit we maintain with a brokerage firm. The line of credit is maintained for liquidity purposes, mitigating the need to liquidate investments in order to meet our current operating cash requirements.

Credit Risk

We mitigate credit default risk by attempting to invest in high credit quality securities and by positioning our portfolio to respond appropriately to a significant reduction in a credit rating of any investment issuer or guarantor. Our portfolio includes only marketable securities with active secondary or resale markets to ensure portfolio liquidity and is diversified in accordance with our investment policy. To date, we have not experienced any liquidity problems with our portfolio.

As of September 29, 2012, we did not have any investments in mortgage backed or auction rate securities or any security investments in the financial service sector. However, we intend to closely monitor developments in the credit markets and make appropriate changes to our investment policy as we deem necessary or advisable. Based on our ability to liquidate our investment portfolio and our expected operating cash flows, we do not anticipate any liquidity constraints as a result of the current credit environment.

Foreign Currency Risk Management

The majority of our revenue, expense and capital purchasing activities are transacted in U.S. dollars. However, we do enter into these transactions in other currencies, primarily Japanese yen. To protect against reductions in value and the volatility of future cash flows caused by changes in currency exchange rates, we have established cash flow and balance sheet hedging programs.

We use foreign currency forward contracts to hedge the risk that outstanding Japanese yen denominated receipts from customers for actual or forecasted sales of equipment may be adversely affected by changes in foreign currency exchange rates. Our hedging programs reduce, but do not always entirely eliminate, the impact of currency movements. See “Derivative Instruments and Hedging” in Note 7 under the heading “Notes to Condensed Consolidated Financial Statements” of Part I, Item 1, “Financial Statements” herein for further disclosures.

Item 4. Controls and Procedures

We conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, as of the end of the period covered by this report (the “Evaluation Date”). Based upon the evaluation, our principal executive officer and principal financial officer concluded that, as of the Evaluation Date, our disclosure controls and procedures were effective to ensure that information required to be

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disclosed by us in reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our principal executive officer and principal financial officer, to allow timely decisions regarding required disclosure, and is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms.

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is accumulated and communicated to management to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, our management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. Management is further required to apply judgment in evaluating the cost-benefit relationship of possible controls and procedures.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting during the three month period ended September 29, 2012 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Ultratech, Inc. is a defendant in Dennis Rice v. Ultratech, Inc., et al., a class action lawsuit commenced on June 14, 2012 in the Superior Court of California, County of Santa Clara. The plaintiff alleges that the proposal in our proxy seeking approval to increase the authorized shares of common stock from 40 million to 80 million was misleading and incomplete and that the directors violated their fiduciary duties by making these misleading disclosures. The plaintiff sought to enjoin the stockholders’ vote on this proposal. On July 16, 2012, the Court held a hearing on plaintiff’s motion for a preliminary injunction and issued an order denying the plaintiff’s motion. After plaintiff’s motion for an injunction was denied, plaintiff indicated it intended to file an amended complaint, and the amended complaint was filed on October 24, 2012. The amended complaint asserts the same causes of action, against the same defendants, as the original complaint, but adds a few new allegations regarding the process by which the proxy was approved. We believe the action is without merit and we plan a vigorous defense.

Item 1A. Risk Factors

In addition to risks described in the foregoing discussions, and in our annual report on Form 10-K for the year ended December 31, 2011, the following risks, among others, apply to our business and us:

The semiconductor industry historically has been highly cyclical and has experienced periods of oversupply, which have in turn affected the market for semiconductor equipment such as ours and which can adversely affect our results of operations during such periods.

Our business depends in significant part upon capital expenditures by manufacturers of semiconductors, advanced packaging semiconductors and nanotechnology components which in turn depend upon the current and anticipated market demand for such devices and products utilizing such devices. The semiconductor industry historically has been highly cyclical and has experienced recurring periods of oversupply. This has, from time to time, resulted in significantly reduced demand for capital equipment including the systems manufactured and marketed by us. We believe that markets for new generations of semiconductors and semiconductor packaging will also be subject to similar fluctuations. Our business and operating results would be materially adversely affected by downturns or slowdowns in the semiconductor packaging market or by loss of market share. Accordingly, we may not be able to achieve or maintain our current or prior level of sales. We attempt to mitigate the risk of cyclicality by participating in multiple markets including semiconductor, semiconductor packaging, and nanotechnology sectors as well as diversifying into new markets. We believe that diversifying into new markets such as laser-based annealing for implant activation, lithography steppers for 3-D packaging and HBLEDs can help mitigate the effects of this cyclicality in our industry. Despite such efforts, when one or more of such markets experiences a downturn or a situation of excess capacity, our net sales and operating results are materially adversely affected.

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The continuing global or regional financial crisis and any uncertainty created thereby, such as that currently being experienced in Europe, could result in the cancellation, deferral or rescheduling of orders by our customers as well as changes in projection of new business.

Orders in backlog are subject to cancellation, deferral or rescheduling by a customer with limited or no penalties. Sales of our systems depend, in significant part, upon the decision of a prospective customer to increase manufacturing capacity or to restructure current manufacturing facilities, either of which typically involves a significant commitment of capital. Further, the purchase of our products involves a significant commitment of capital on the part of our customers. If the markets for our customers’ products experience a period of declining demand or if our customers’ ability to raise capital is limited, they may choose to cancel, delay or reschedule purchases of our products. The current global financial economic crisis, and the uncertainty created thereby could result in such a decline in demand or limited ability to raise capital, or could otherwise affect our customers’ markets, financial condition or willingness to incur expenses. As a result, we could experience the cancellation, delay or rescheduling of orders in our current backlog or of orders we currently expect to receive. Any such decision by our customers or potential customers would adversely affect our net sales and results of operations.

Our sales cycle is typically lengthy and involves a significant commitment of capital by our customers, which has subjected us, and is likely to continue to subject us, to delays in system acceptances of our products and other risks, any of which could adversely impact our results of operations by, among other things, delaying recognition of revenue with respect to those orders and resulting in increased installation, qualification and similar costs.

Sales of our systems depend, in significant part, upon the decision of a prospective customer to increase manufacturing capacity, replace older equipment or to restructure current manufacturing facilities, any of which typically involves a significant commitment of capital. Many of our customers in the past have canceled or postponed the development of new manufacturing facilities and have substantially reduced their capital equipment budgets. In view of the significant investment involved in a system purchase, we have experienced and may continue to experience delays following initial qualification of our systems as a result of delays in a customer’s approval process. Additionally, we are presently receiving orders for systems that have lengthy delivery schedules, which may be due to longer production lead times or a result of customers’ capacity scheduling requirements. For these and other reasons, our systems typically have a lengthy sales cycle during which we may expend substantial funds and management effort in securing a sale. Lengthy sales cycles subject us to a number of significant risks, including inventory obsolescence and fluctuations in operating results, over which we have little or no control. In order to maintain or exceed our present level of net sales, we are dependent upon obtaining orders for systems that will ship and be accepted in the current period. We may not be able to obtain those orders. Other important factors that could cause demand for our products to fluctuate include:

• competitive pressures, including pricing pressures, from companies that have competing products;

• changes in customer product needs; and

• strategic actions taken by our competitors.

Our quarterly revenues and operating results are difficult to predict.

Our revenues and operating results may fluctuate significantly from quarter to quarter due to a number of factors, not all of which are in our control. We manage our expense levels based in part on our expectations of future revenues, and a certain amount of those expenses are relatively fixed. As a result, a change in the timing of recognition of revenue or a change in margins can have a significant impact on our operating results in any particular quarter. Factors that may cause our results of operations to fluctuate include, but are not limited to:

• market conditions in the electronics and semiconductor industries;

• failure of suppliers to perform in a manner consistent with our expectations;

• manufacturing difficulties or delays;

• customer cancellations or delays in shipments, installations and/or system acceptances;

• competitive factors, including the introduction of new products by our competitors or any failure of our products to gain or maintain market acceptance; and

• changes in selling prices and product mix.

We rely on a limited number of outside suppliers and subcontractors to manufacture certain components and subassemblies, and on single or a limited group of outside suppliers for certain materials for our products, which could

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result in a potential inability to obtain an adequate supply of required components due to the suppliers’ failure or inability to provide such components in a timely manner, or at all, and reduced control over pricing and timely delivery of components and materials, any of which could adversely affect our results of operations.

Our manufacturing activities consist of assembling and testing components and subassemblies, which are then integrated into finished systems. We rely on a limited number of outside suppliers and subcontractors to manufacture certain components and subassemblies. We order one of the most critical components of our technology, the glass for our 1X lenses, from external suppliers. We design the 1X lenses and provide the lens specifications and the glass to other suppliers, who then grind and polish the lens elements. We then assemble and test the optical 1X lenses.

We procure some of our other critical systems’ components, subassemblies and services from single outside suppliers or a limited group of outside suppliers in order to ensure overall quality and timeliness of delivery. Many of these components and subassemblies have significant production lead times. To date, we have been able to obtain adequate services and supplies of components and subassemblies for our systems in a timely manner. However, disruption or termination of certain of these sources could have a significant adverse impact on our ability to manufacture our systems. This, in turn, would have a material adverse effect on our business, financial condition and results of operations. Our reliance on a sole supplier or a limited group of suppliers and our reliance on subcontractors involve several risks, including a potential inability to obtain an adequate supply of required components due to the suppliers’ failure or inability to provide such components in a timely manner, or at all, and reduced control over pricing and timely delivery of components. Although the timeliness, yield and quality of deliveries to date from our subcontractors have been acceptable, manufacture of certain of these components and subassemblies is an extremely complex process, and long lead-times are required. Any inability to obtain adequate deliveries or any other circumstance that would require us to seek alternative sources of supply or to manufacture such components internally could delay our ability to ship our products, which could damage relationships with current and prospective customers and have a material adverse effect on our business, financial condition and results of operations.

We operate in a highly competitive industry in which customers are required to invest substantial resources in each product, which makes it difficult to achieve significant sales to a particular customer once another vendor’s equipment has been purchased by that customer.

The capital equipment industry in which we operate is intensely competitive. A substantial investment is required to install and integrate capital equipment into a semiconductor, semiconductor packaging or nanotechnology device production line. We believe that once a device manufacturer or packaging subcontractor has selected a particular supplier’s capital equipment, the manufacturer generally relies upon that equipment for the specific production line application and, to the extent possible, subsequent generations of similar products. Accordingly, it is difficult to achieve significant sales to a particular customer once another supplier’s capital equipment has been selected.

We experience competition in advanced packaging from various proximity aligner companies such as Canon, Nikon, Suss Microtec AG (“Suss Microtec”), Ushio and used projection and reduction stepper systems. In addition, some device manufacturers may consider using reduction steppers for advanced packaging processes. In nanotechnology, we experience competition from proximity aligner companies, such as Suss Microtec, as well as other third party stepper suppliers. We expect our competitors in the lithography arena to continue to improve the performance of their current products and to introduce new products with improved price and performance characteristics. This could cause a decline in sales or loss of market acceptance of our steppers in our served markets, and thereby materially adversely affect our business, financial condition and results of operations. Enhancements to, or future generations of, competing products may be developed that offer superior cost of ownership and technical performance features.

With respect to our laser annealing technologies, marketed under the LSA100A and LSA101 product names, our primary competition comes from companies such as Dainippon Screen Manufacturing Co., Ltd., Applied Materials, Inc. and Mattson Technology, Inc. Many of these companies offer products utilizing RTP which is the current prevailing manufacturing technology. RTP does not prevent semiconductor device manufacturers from scaling the lateral dimensions of their transistors to obtain improved performance, but diffusion resulting from the time scales associated with RTP limits the vertical dimension of the junctions. Faster annealing times result in shallower and more abrupt junctions and faster transistors. We believe that RTP manufacturers recognize the need to reduce thermal cycle times and are working toward this goal. In July 2000, we licensed certain rights to our then existing laser thermal processing technology, with reservations, to a competing manufacturer of semiconductor equipment. We presently anticipate that this company and others intend to offer laser annealing tools to the semiconductor industry that will compete with our offerings.

Another potential advanced annealing solution utilizes flash lamp annealing technology, or FLA. Several companies have published papers on annealing tools that incorporate flash lamp technology in order to reduce annealing times and

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increase annealing temperatures. Developers of FLA technology claim to have overcome annealing difficulties at the advanced nodes. This technique, which employs flash lamps, has shown improvements over RTP in junction depth and sheet resistance, but we believe FLA suffers from pattern-related non-uniformities and could require additional, costly processes to equalize the reflectivity of different areas within the chip or wafer. Our proprietary laser thermal processing solution has been specifically developed to provide junction annealing on near-instantaneous time-scales, while achieving high activation levels. Laser thermal annealing, our first implementation of laser thermal processing, activates dopants in the microsecond-to-millisecond time frame without melting. Our research indicates that, at temperatures just below the melting point of silicon, time durations in the microsecond to millisecond range, are required to achieve full activation, and minimal dopant diffusion.

Additionally, competition to our laser thermal processing products may come from other laser annealing tools, including those presently being used by the flat panel display industry to re-crystallize silicon. Manufacturers of these tools may try to extend the use of their technologies to semiconductor device applications.

We believe that in order to be competitive, we will need to continue to invest significant financial resources in new product development, new features and enhancements to existing products, the introduction of new stepper systems in our served markets on a timely basis, and maintaining customer service and support centers worldwide. In marketing our products, we may also face competition from vendors employing other technologies. In addition, increased competitive pressure has led to intensified price-based competition in certain of our markets, resulting in lower prices and margins. Should these competitive trends continue, our business, financial condition and operating results may be materially adversely affected.

We currently spend, and expect to continue to spend, significant resources to develop, introduce and commercialize our laser thermal processing systems, advanced packaging, nanotechnology, and HBLEDs lithography stepper products, and future generations of, and enhancements to, these products. We may not be successful in the timely introduction of these products which may cause sales of these products to decrease or not increase as expected.

Currently, we are devoting significant resources to the development, introduction and commercialization of our laser thermal processing systems, advanced packaging, nanotechnology, and HBLEDs lithography stepper products, and future generations of and enhancements to those products. We intend to continue to develop these products and technologies, and will continue to incur significant operating expenses in the areas of research, development and engineering, manufacturing and general and administrative costs in order to develop, produce and support these new products and enhancements. Additionally, gross profit margins and inventory levels may be further adversely impacted in the future by costs associated with the initial production of new products. Introduction of new products generally involves higher installation costs and product performance uncertainties that could delay system acceptance of our systems, resulting in a delay in recognizing revenue associated with those systems and a reduction in gross margins. These costs include, but are not limited to, additional manufacturing overhead, additional inventory write-downs, costs of demonstration systems and facilities and costs associated with the establishment of additional after-sales support organizations. Additionally, operating expenses may increase, relative to sales, as a result of adding additional marketing and administrative personnel, among other costs, to support our new products. If we are unable to achieve significantly increased net sales or if our sales fall below expectations, our operating results could be materially adversely affected.

Our ability to commercialize our laser thermal processing technologies depends on our ability to demonstrate a manufacturing-worthy tool. We do not presently have in-house capability to fabricate devices. As a result, we must rely on partnering with semiconductor companies to develop the anneal process. The development of new process technologies is largely dependent upon our ability to interest potential customers in working on joint process development. Our ability to deliver timely solutions is also limited by wafer turnaround at the potential customer’s fabrication facility.

Our stock price has experienced significant volatility in the past and we expect this to continue in the future as a result of many factors, some of which could be unrelated to our operating performance, and such volatility can have a major impact on the number of shares subject to outstanding stock options and restricted stock units that are included in calculating our earnings per share.

We believe that factors such as announcements of developments related to our business, fluctuations in our operating results, a shortfall in revenue or earnings, changes in analysts’ expectations, general conditions in the semiconductor and nanotechnology industries or the worldwide or regional economies, sales of our securities into the marketplace, an outbreak or escalation of hostilities, announcements of technological innovations or new products or enhancements by us or our competitors, developments in patents or other intellectual property rights and developments in our relationships with our customers and suppliers could cause the price of our Common Stock to fluctuate, perhaps substantially. The market price of our Common Stock has fluctuated significantly in the past and we expect it to continue to experience significant fluctuations in the future, including fluctuations that may be unrelated to our performance.

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As of September 29, 2012, we had outstanding options to purchase and outstanding restricted stock units for a total of 4.0 million shares of our Common Stock. Among other determinants, the market price of our stock has a major bearing on the number of shares subject to outstanding stock options and restricted stock units that are included in the weighted-average shares used in determining our net income per share. During periods of extreme volatility, the impact of higher stock prices can have a materially dilutive effect on our net income per share. Additionally, shares subject to outstanding options and restricted stock units are excluded from the calculation of net income per share when we have a net loss or when the exercise price and the average unrecognized compensation cost of the stock option or restricted stock unit is greater than the average market price of our Common Stock, as the impact of the stock options or restricted stock units would be anti-dilutive.

We sell our products primarily to a limited number of customers and to customers in a limited number of industries, which subjects us to increased risks related to the business performance of our customers, and therefore their need for our products, and the business cycles of the markets into which we sell.

Historically, we have sold a substantial portion of our systems to a limited number of customers. In the three month period ended September 29, 2012, our top five customers accounted for 86.0% of our system sales compared to 78.7% in the corresponding period of 2011. We expect that sales to a relatively few customers will continue to account for a high percentage of our net sales in the foreseeable future and believe that our financial results depend in significant part upon the success of these major customers and our ability to meet their future capital equipment needs. Although the composition of the group comprising our largest customers may vary from period to period, the loss of a significant customer or any reduction in orders by a significant customer, including reductions due to market, economic or competitive conditions in the semiconductor, semiconductor packaging or nanotechnology industries or in the industries that manufacture products utilizing integrated circuits, thin film heads or other nanotechnology components, would likely have a material adverse effect on our business, financial condition and results of operations. Our ability to maintain or increase our sales in the future depends, in part, on our ability to obtain orders from new customers as well as the financial condition and success of our existing customers, the semiconductor and nanotechnology industries and the economy in general.

In addition to the business risks associated with dependence on a few major customers, these significant customer concentrations have in the past resulted in significant concentrations of accounts receivable. These significant and concentrated receivables expose us to additional risks, including the risk of default by one or more customers representing a significant portion of our total receivables. If we were required to take additional accounts receivable reserves, our business, financial condition and results of operations would be materially adversely affected.

On a market application basis, sales to the semiconductor industry, primarily for advanced packaging applications and laser thermal processing applications, accounted for 84.7% and 77.6% of our system revenue for the three month period ended September 29, 2012 and the corresponding period in 2011, respectively. We had $7.6 million of sales to nanotechnology manufacturers, including micro systems, thin film head and optical device manufacturers, for the three month period ended September 29, 2012 as compared to $10.0 million in sales for the corresponding period of 2011. Systems revenue for nanotechnology accounted for 15.3% of systems revenue for the three month period ended September 29, 2012, as compared to 22.4% of systems revenue for the corresponding period in 2011. Our future operating results and financial condition would be materially adversely impacted by a downturn in any of these industries, or by loss of market share in any of these industries. A growing portion of our backlog of system orders is comprised of laser thermal processing tools. As our laser thermal processing tools are used for the continuation of reduced device geometries and customers seldom provide us with their future technical requirements, these tools may not meet all customers’ requirements upon initial delivery and installation at the customer’s facility. As a result, acceptance of the tool by the customer could be delayed while we perform testing and attempt to meet their requirements, or the order could be cancelled if we are unable to meet those requirements. Should significant demand not materialize, due to technical, production, market, or other factors, our business, financial position and results of operations would be materially adversely impacted.

We are dependent on our key personnel, especially Mr. Zafiropoulo, our Chief Executive Officer, and our business and results of operations would be adversely affected if we were to lose our key employees.

Our future operating results depend, in significant part, upon the continued contributions of key personnel, many of whom would be difficult to replace. We have entered into employment agreements only with our Chief Executive Officer and Chief Financial Officer, and our employees are employed “at will.” The agreements with our Chief Executive Officer and Chief Financial Officer contain vesting acceleration and severance payment provisions that could result in significant costs or charges to us should the employee be terminated without cause, die or have a disability. We do not maintain any life insurance on any of our key employees. The loss of key personnel could have a material adverse effect on our business, financial condition and results of operations. In addition, our future operating results depend in significant part upon our ability to attract and retain

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other qualified management, manufacturing, technical, sales and support personnel for our operations. There are only a limited number of persons with the requisite skills to serve in these positions and it may become increasingly difficult for us to hire such personnel over time. At times, competition for such personnel has been intense, particularly in the San Francisco Bay Area where we maintain our headquarters and principal operations, and we may not be successful in attracting or retaining such personnel. The failure to attract or retain such persons would materially adversely affect our business, financial condition and results of operations.

Our industry is subject to rapid technological change and product innovation, which could result in our technologies and products being replaced by those of our competitors, which would adversely affect our business and results of operations.

The semiconductor and nanotechnology manufacturing industries are subject to rapid technological change, evolving industry standards and new product introductions and enhancements. Our ability to be competitive in these and other markets will depend, in part, upon our ability to develop new and enhanced systems and related applications, and to introduce these systems and related applications at competitive prices and on a timely and cost-effective basis to enable customers to integrate them into their operations either prior to or as they begin volume product manufacturing. We will also be required to enhance the performance of our existing systems and related applications. Our success in developing new and enhanced systems and related applications depends upon a variety of factors, including product selection, timely and efficient completion of product design, timely and efficient implementation of manufacturing and assembly processes, product performance in the field and effective sales and marketing. Because new product development commitments must be made well in advance of sales, new product decisions must anticipate both future customer requirements and the technology that will be available to meet those requirements. We may not be successful in selecting, developing, manufacturing or marketing new products and related applications or enhancing our existing products and related applications. Any such failure would materially adversely affect our business, financial condition and results of operations. Further, we may make substantial investments in new products before we know whether they are technically feasible or commercially viable, and as a result may incur significant product development expenses that do not result in new products or revenues.

Because of the large number of components in our systems, significant delays can occur between a system’s introduction and our commencement of volume production of such systems. We have experienced delays from time to time in the introduction of, and technical and manufacturing difficulties with, certain of our systems and enhancements and related application tools features and options, and may experience delays and technical and manufacturing difficulties in future introductions or volume production of new systems or enhancements and related application tools features and options.

We may encounter additional technical, manufacturing or other difficulties that could further delay future introductions or volume production of systems or enhancements. Our inability to complete the development or meet the technical specifications of any of our systems or enhancements and related applications, or our inability to manufacture and ship these systems or enhancements and related tools in volume and in time to meet the requirements for manufacturing the future generation of semiconductor or nanotechnology devices would materially adversely affect our business, financial condition and results of operations. In addition, we may incur substantial unanticipated costs to ensure the functionality and reliability of our products early in the products’ life cycles. If new products have reliability or quality problems, reduced orders or higher manufacturing costs, delays in system acceptance, revenue recognition and collecting accounts receivable and additional service and warranty expenses may result. Any of such events may materially adversely affect our business, financial condition and results of operations.

We may not be successful in protecting our intellectual property rights or we could be found to have infringed the intellectual property rights of others, either of which could weaken our competitive position and adversely affect our results of operations.

Although we attempt to protect our intellectual property rights through patents, copyrights, trade secrets and other measures, we believe that our success will depend more upon the innovation, technological expertise and marketing abilities of our employees. Nevertheless, we have a policy of seeking patents when appropriate on inventions resulting from our ongoing research and development and manufacturing activities. Our intellectual property portfolio has 664 patents either awarded or pending with expiration dates ranging from November 2012 to November 2030. In addition, we have various registered trademarks and copyright registrations covering mainly applications used in the operation of our systems. We also rely upon trade secret protection for our confidential and proprietary information. We may not be able to protect our technology adequately and competitors may be able to develop similar technology independently. Our pending patent applications may not be issued or U.S. or foreign intellectual property laws may not protect our intellectual property rights. In addition, litigation may be necessary to enforce our patents, copyrights or other intellectual property rights, to protect our trade secrets, to determine the validity and scope of the proprietary rights of others or to defend against claims of infringement. Such litigation

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has resulted in, and in the future could result in, substantial costs and diversion of resources and could have a material adverse effect on our business, financial condition and results of operations, regardless of the outcome of the litigation. Patents issued to us may be challenged, invalidated or circumvented and the rights granted thereunder may not provide competitive advantages to us. Furthermore, others may independently develop similar technology or products, or, if patents are issued to us, design around the patents issued to us. Invalidation of our patents related to those technologies, or the expiration of patents covering our key technologies, could allow our competitors to more effectively compete against us, which could result in less revenue for us.

We have from time to time been notified of claims that we may be infringing intellectual property rights possessed by third parties. We believe that the outcome of these matters will not be material to our business, results of operations or financial condition. Infringement claims by third parties or claims for indemnification resulting from infringement claims may be asserted in the future and such assertions could materially adversely affect our business, financial condition and results of operations, regardless of the outcome of any litigation. With respect to any such future claims, we may seek to obtain a license under the third party’s intellectual property rights. However, a license may not be available on reasonable terms or at all. We could decide, in the alternative, to resort to litigation to challenge such claims. Such challenges could be expensive and time consuming and could materially adversely affect our business, financial condition and results of operations, regardless of the outcome of any litigation.

A substantial portion of our sales are outside of the United States, which subjects us to risks related to customer service, installation, foreign economic and political stability, uncertain regulatory and tax rules, and foreign exchange rate fluctuations, all of which make it more difficult to operate our business.

International sales accounted for approximately 51.9% of total net sales for the three month period ended September 29, 2012, compared to 62.5% in the corresponding period of 2011. The decrease in international sales as a percentage of total sales was due to a combination of an increase in North American unit sales and a decrease in Asian unit sales. We anticipate that international sales will continue to account for a significant portion of total net sales. As a result, a significant portion of our net sales will continue to be subject to certain risks, including unexpected changes in regulatory requirements; difficulty in satisfying existing regulatory requirements; exchange rate fluctuations; tariffs and other barriers; political and economic instability; difficulties in accounts receivable collections; reduced protection of intellectual property; natural disasters; difficulties in staffing and managing foreign subsidiary and branch operations; and potentially adverse tax consequences.

Although we generally transact our international sales in U.S. dollars, international sales expose us to a number of additional risk factors, including fluctuations in the value of local currencies relative to the U.S. dollar, which, in turn, impact the relative cost of ownership of our products and may further impact the purchasing ability of our international customers. We have direct sales operations in Japan and orders are often denominated in Japanese yen. This may subject us to a higher degree of risk from currency fluctuations. We attempt to mitigate this exposure through foreign currency hedging. We are also subject to the risks associated with the imposition of legislation and regulations relating to the import or export of semiconductors and nanotechnology products. We cannot predict whether the United States or any other country will implement changes to quotas, duties, taxes or other charges or restrictions upon the importation or exportation of our products. These factors, or the adoption of restrictive policies, may have a material adverse effect on our business, financial condition and results of operations.

To better align with the increasingly international nature of our business, we transitioned certain manufacturing processes to Singapore, thereby bringing these activities closer to our Asian customers. This movement is recent and our experience in international manufacturing operations is limited. If we are unable to successfully operate the site to efficiently manufacture systems, our business, financial condition and results of operations could be materially adversely impacted.

Changes in our effective tax rate may harm our results of operations.

A number of factors may negatively impact our future effective tax rates including, but not limited to:

• the jurisdictions in which profits are determined to be earned and taxed;

• changes in valuation of our deferred tax assets and liabilities;

• increases in expenses not deductible for tax purposes;

• changes in available tax credits;

• changes in stock-based compensation; and

• changes in tax laws or the interpretation of such tax laws and changes in generally accepted accounting principles in the United States or other countries in which we operate.

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We are eligible for tax incentives that provide that certain income earned in Singapore would be subject to a tax holiday and/or reduced tax rates for a limited period of time under the laws of Singapore. Our ability to realize benefits from these initiatives could be materially affected if, among other things, applicable requirements are not met, the incentives are substantially modified, or if we incur losses for which we cannot take a deduction.

Our investment portfolio may become impaired by further deterioration of the capital markets.

Our cash equivalent and short-term investment portfolio as of September 29, 2012 consisted of securities and obligations of U.S. government agencies, money market funds, commercial paper and corporate debt securities. We follow an established investment policy and set of guidelines to monitor, manage and limit our exposure to interest rate and credit risk. The policy sets forth credit quality standards and limits our exposure to any one issuer, as well as our maximum exposure to various asset classes.

As a result of current financial market conditions, investments in some financial instruments, such as structured investment vehicles, sub-prime mortgage-backed securities and collateralized debt obligations, may lose some or all of their value due to liquidity and credit concerns. As of September 29, 2012, we had no holdings in these categories of investments and no impairment charge associated with our short-term investment portfolio. Although we believe our current investment portfolio has little risk of impairment, we cannot predict future market conditions or market liquidity and our investment portfolio could become impaired.

Our investment portfolio may suffer losses from changes in market interest rates and changes in market conditions, which could materially and adversely affect our financial condition, results of operations or liquidity.

As of September 29, 2012, we had $280.9 million in cash, cash equivalents and short-term investments. We maintain an investment portfolio of cash equivalents and short-term investments in commercial paper and U.S. government-backed securities. These investments are subject to general credit, liquidity, and market and interest rate risks. Substantially all of these securities are subject to interest rate and credit risk and will decline in value if interest rates increase or one or more of the issuers’ credit ratings is reduced. As a result of any of the foregoing, we may experience a reduction in value or loss of liquidity of our investments, which may have a negative adverse effect on our results of operations, liquidity and financial condition.

Changes in financial accounting standards or policies in the past have affected, and in the future may, affect, our reported results of operations.

We prepare our financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”). These principles are subject to interpretation by the Financial Accounting Standards Board (“FASB”), the American Institute of Certified Public Accountants (“AICPA”), the Securities and Exchange Commission (“SEC”) and various bodies formed to interpret and create appropriate accounting policies. A change in those policies can have a significant effect on our reported results and may affect our reporting of transactions which are completed before a change is announced.

Accounting policies affecting many other aspects of our business, including rules relating to revenue recognition, off-balance sheet transactions, employee stock options and other equity awards, restructuring, asset disposals and asset retirement obligations, derivative and other financial instruments are regularly under review and subject to revision. Changes to those rules or the questioning of how we interpret or implement those rules may have a material adverse effect on our reported financial results or on the way we conduct business. In addition, our preparation of financial statements in accordance with U.S. GAAP requires that we make estimates and assumptions that affect the recorded amounts of assets and liabilities, disclosure of those assets and liabilities at the date of the financial statements and the recorded amounts of expenses during the reporting period. A change in the facts and circumstances surrounding those estimates could result in a change to our estimates and could impact our future operating results.

We continue to expand our manufacturing and service operations in Singapore and customer support operations in other parts of the world, which will continue to result in exposure to risks inherent in doing business outside the United States, any of which risks could harm our business, financial condition and operating results.

Foreign operations subject us to risks related to the political, economic, legal and other conditions of foreign jurisdictions. These risks include risks related to:

• foreign exchange rate fluctuations;

• the need to comply with foreign government laws and regulations, including the imposition of regulatory requirements, tariffs, and import and export restrictions;

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• general geopolitical risks such as political and economic instability and changes in diplomatic and trade relationships;

• the need for effective management of dispersed operations far from our headquarters in California;

• the potential for strain on management resources;

• difficulty in hiring and retaining local personnel for the successful operation of our business in certain locations;

• the need to effectively manage personnel in different languages and under different cultural and legal expectations and requirements;

• potentially less protection of intellectual property under the laws of foreign jurisdictions in certain locations; and

• public safety or health concerns or natural disasters in foreign countries.

These risks could, among other things, result in product shipment delays, increased costs, unexpected shutdowns or other business disruptions, or loss of benefits expected to be achieved by conducting operations in affected jurisdictions. Any of the above risks, should they occur, could have a material adverse effect on our business, financial condition and results of operations.

Our equity incentive plans, certain provisions of our Certificate of Incorporation and Bylaws, and certain aspects of Delaware law may discourage third parties from pursuing a change of control transaction with us.

Certain provisions of our Certificate of Incorporation, equity incentive plans, licensing agreements, Bylaws and Delaware law may discourage certain transactions involving a change in control of our company. In addition to the foregoing, the shareholdings of our officers, directors and persons or entities that may be deemed affiliates and the ability of the Board of Directors to issue “blank check” preferred stock without further stockholder approval could have the effect of delaying, deferring or inhibiting us from experiencing a change in control and may adversely affect the voting and other rights of holders of our Common Stock.

If we acquire companies, products, or technologies, we may face risks associated with those acquisitions.

We may not realize the anticipated benefits of any acquisition or investment. We may in the future pursue additional acquisitions of complementary product lines, technologies or businesses. Future acquisitions may result in potentially dilutive issuances of equity securities, the incurrence of debt and contingent liabilities and amortization expenses and impairment charges related to goodwill and other intangible assets, which could materially adversely affect our financial condition and results of operations. In addition, acquisitions involve numerous risks, including difficulties in the assimilation of the operations, technologies, personnel and products of the acquired companies; the diversion of management’s attention from other business concerns; risks of entering markets in which we have limited or no direct experience; and the potential loss of key employees of the acquired company. In the event we acquire product lines, technologies or businesses which do not complement our business, or which otherwise do not enhance our sales or operating results, we may incur substantial write-offs and higher recurring operating costs, which could have a material adverse effect on our business, financial condition and results of operations. In the event that any such acquisition does occur, there can be no assurance as to the effect thereof on our business or operating results.

Our results of operations and business could be adversely affected by natural disasters, public health issues, political instability, wars, and other military action, as well as terrorist attacks and threats and government responses thereto, especially if any such actions were directed at us or our facilities or customers.

Public health issues, political instability (for example, recent unrest in the Middle East), natural disasters (such as those recently affecting Japan and Thailand), terrorist attacks in the United States and elsewhere, government responses thereto, and military actions in Afghanistan and elsewhere, may disrupt our operations or those of our customers and suppliers and may affect the availability of materials needed to manufacture our products or the means to transport those materials to manufacturing facilities and finished products to customers. In addition, such events could disrupt the semiconductor market, resulting in the cancellation or delay of product orders. Significant public health issues could cause damage or disruption to international commerce by creating economic and political uncertainties that may have a significant negative impact on the global economy, us and our customers or suppliers. Should such incidents increase or other public health issues arise, we could be negatively impacted by the need for more stringent employee travel restrictions, additional limitations in the availability of freight services, governmental actions limiting the movement of products between various regions and disruptions in the operations of our customers or suppliers. Similarly, political instability could affect the ability of our suppliers to provide the materials needed in our operations or the cost of acquiring such materials. Any public health issues, political instability, natural disasters, any terrorist attacks, or the ongoing war on terrorism or other wars could increase volatility in the United States and

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world financial markets which may depress the price of our Common Stock and may limit the capital resources available to us or our customers or suppliers, which could result in decreased orders from customers, less favorable financing terms from suppliers, and scarcity or increased costs of materials and components of our products. Additionally, if any of these events were to directly affect or be specifically directed at us, or occur in a country where we or our suppliers or our customers operate, our ability to conduct our business could be significantly disrupted. Any of these occurrences could have a significant impact on our operating results, revenues and costs and may result in increased volatility of the market price of our Common Stock.

We currently perform a significant amount of our manufacturing activities in cleanroom environments in San Jose, California, an area known for seismic activity. Performing manufacturing operations in California exposes us to a higher risk of natural disasters, including earthquakes. In addition, in the past California has experienced power shortages, which have interrupted our operations. Such shortages could occur in the future. Further, our suppliers and/or customers may operate in areas subject to natural disasters, the occurrence of which could affect their ability to continue to do business with us as expected or at all. An earthquake, other natural disaster, power shortage or other similar events could interrupt or otherwise limit our operations or those of our suppliers or customers resulting in product shipment delays, supply problems, cancellations or deferrals of product orders, increased costs and other problems, any of which could have a material adverse effect on our business, customer relationships and results of operations.

We use hazardous substances in the operation of our business, and any failure on our part to comply with applicable regulations or to appropriately control the use, disposal or storage of such substances could subject us to significant liabilities.

We are subject to a variety of governmental regulations relating to environment protection and workplace safety, including the use, storage, discharge, handling, emission, generation, manufacture and disposal of toxic or other hazardous substances. The failure to comply with current or future regulations could result in substantial fines being imposed on us, suspension of production, alteration of the manufacturing process or cessation of operations. Such regulations could require us to acquire expensive remediation equipment or to incur substantial expenses to comply with environmental regulations. Any failure by us to comply with these regulations, including any failure to control the use, disposal or storage of, or adequately restrict the discharge of, hazardous or toxic substances, could subject us to significant liabilities.

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

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

None.

Item 5. Other Information

None.

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Item 6. Exhibits

3.1(a)	Amended and Restated Certificate of Incorporation of the Registrant, filed October 6, 1993.
3.1.1(a)	Certificate of Amendment of the Amended and Restated Certificate of Incorporation of the Company, filed May 17, 1995.
3.1.2(a)	Certificate of Amendment of the Amended and Restated Certificate of Incorporation of the Company, filed June 17, 1998.
3.1.3(a)	Certificate of Amendment of the Amended and Restated Certificate of Incorporation of the Company, filed June 20, 2003.
3.1.4(b)	Certificate of Amendment of the Amended and Restated Certificate of Incorporation of the Company, filed August 31, 2009.
3.2(c)	Amended and Restated Bylaws of the Registrant, as amended.
10.1(d)	New Singapore Lease (1Kaki Bukit View, Singapore) entered into on August 15, 2012, by and between Ascendas, Inc. and Ultratech SE Asia PTE, Ltd.
31.1	Certification of Chief Executive Officer required pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Chief Financial Officer required pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 ____________________

(a) Previously filed with our Quarterly Report on Form 10-Q for the quarter ended June 28, 2003 (Commission File No. 0-22248) and incorporated herein by reference.

(b) Previously filed with our Quarterly Report on Form 10-Q for quarter ended October 3, 2009 (Commission File No. 0-22248) and incorporated herein by reference.

(c) Previously filed with our Current Report on Form 8-K filed on April 17, 2012 (Commission File No. 0-22248) and incorporated herein by reference.

(d) Previously filed with our Current Report on Form 8-K filed on August 21, 2012 (Commission File No. 0-22248) and incorporated herein by reference.

* Exhibit 32.1 is being furnished and shall not be deemed to be filed for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, nor shall such exhibit be deemed to be incorporated by reference in any registration statement or other document filed under the Securities Act, or the Exchange Act, except as otherwise stated in such filing.

27

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.

		ULTRATECH, INC. (Registrant)
Date:	October 29, 2012	By:	/s/ BRUCE WRIGHT
			Bruce Wright
			Senior Vice President, Finance and Chief Financial Officer (Duly Authorized Officer and Principal Financial and Accounting Officer)

28

EXHIBIT INDEX

3.1(a)	Amended and Restated Certificate of Incorporation of the Registrant, filed October 6, 1993.
3.1.1(a)	Certificate of Amendment of the Amended and Restated Certificate of Incorporation of the Company, filed May 17, 1995.
3.1.2(a)	Certificate of Amendment of the Amended and Restated Certificate of Incorporation of the Company, filed June 17, 1998.
3.1.3(a)	Certificate of Amendment of the Amended and Restated Certificate of Incorporation of the Company, filed June 20, 2003.
3.1.4(b)	Certificate of Amendment of the Amended and Restated Certificate of Incorporation of the Company, filed August 31, 2009.
3.2(c)	Amended and Restated Bylaws of the Registrant, as amended.
10.1(d)	New Singapore Lease (1Kaki Bukit View, Singapore) entered into on August 15, 2012, by and between Ascendas, Inc. and Ultratech SE Asia PTE, Ltd.
31.1	Certification of Chief Executive Officer required pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Chief Financial Officer required pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 ______________________

(a) Previously filed with our Quarterly Report on Form 10-Q for the quarter ended June 28, 2003 (Commission File No. 0-22248) and incorporated herein by reference.

(b) Previously filed with our Quarterly Report on Form 10-Q for the quarter ended October 3, 2009 (Commission File No. 0-22248) and incorporated herein by reference.

(c) Previously filed with our Current Report on Form 8-K on April 17, 2012 (Commission File No. 0-22248) and incorporated herein by reference.

(d) Previously filed with our Current Report on Form 8-K filed on August 21, 2012 (Commission File No. 0-22248) and incorporated herein by reference.

* Exhibit 32.1 is being furnished and shall not be deemed to be filed for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, nor shall such exhibit be deemed to be incorporated by reference in any registration statement or other document filed under the Securities Act, or the Exchange Act, except as otherwise stated in such filing.

29

EX-31.1

Exhibit 31.1

I, Arthur Zafiropoulo, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Ultratech, 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:	October 29, 2012	/s/ ARTHUR ZAFIROPOULO
		Arthur Zafiropoulo
		Chief Executive Officer

EX-31.2

Exhibit 31.2

I, Bruce Wright, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Ultratech, 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:	October 29, 2012	/s/ BRUCE WRIGHT
		Bruce Wright
		Chief Executive Officer

EX-32.1

Exhibit 32.1

CERTIFICATIONS OF CHIEF EXECUTIVE OFFICER AND 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, Arthur Zafiropoulo, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

• the Quarterly Report of Ultratech, Inc. on Form 10-Q for the period ended September 29, 2012 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

• the information contained in such Quarterly Report fairly presents in all material respects the financial condition and results of operations of Ultratech, Inc.

By:	/s/ ARTHUR ZAFIROPOULO	Date:	October 29, 2012
	Name: Arthur Zafiropoulo
	Title: Chief Executive Officer

I, Bruce Wright, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

• the Quarterly Report of Ultratech, Inc. on Form 10-Q for the period ended September 29, 2012 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

• the information contained in such Quarterly Report fairly presents in all material respects the financial condition and results of operations of Ultratech, Inc.

By:	/s/ BRUCE WRIGHT	Date:	October 29, 2012
	Name: Bruce Wright
	Title: Chief Financial Officer

_______________________

*    A signed original of this written statement required by Section 906 has been provided to Ultratech, Inc. and will be retained by Ultratech, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.    

XML

Investments Fair Value, by Balance Sheet Grouping (Details) (USD $)	Sep. 29, 2012	Dec. 31, 2011
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents and available-for-sale investments, estimated fair value	$ 225,888,000	$ 184,724,000
Cash Equivalents
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents and available-for-sale investments, estimated fair value	19,317,000	15,557,000
Short-term Investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents and available-for-sale investments, estimated fair value	$ 206,571,000	$ 169,167,000

XML

Commitments And Contingencies Commitments (Details) (USD $)	0 Months Ended	1 Months Ended					3 Months Ended	9 Months Ended
	May 10, 2012	Apr. 30, 2010	Mar. 31, 2010	Dec. 31, 2009	Aug. 31, 2008	Jul. 31, 2007	Sep. 29, 2012	Sep. 29, 2012
Unrecorded Unconditional Purchase Obligation [Line Items]
Unrecorded Unconditional Purchase Obligation, Due in Next Twelve Months							$ 618,000	$ 618,000
Unrecorded Unconditional Purchase Obligation, Due within Two Years							2,487,000	2,487,000
Operating Leases, Future Minimum Payments, Due in Three Years							2,481,000	2,481,000
Operating Leases, Future Minimum Payments, Due in Four Years							2,339,000	2,339,000
Operating Leases, Future Minimum Payments, Due in Five Years							740,000	740,000
Operating Leases, Future Minimum Payments, Due Thereafter							883,000	883,000
Operating Leases, Future Minimum Payments Due							9,548,000	9,548,000
Leases [Abstract]
Length of operating lease agreement (in years)			3 years				3 years
Length of captial lease agreement (in years)						5 years
Length of sale leaseback agreement (in years)	27 months				4 years
Sale leaseback transaction, sales price				5,400,000	6,800,000
Sale leaseback assets repurchased		1,200,000		1,300,000			0	0
Sale leaseback transaction, minimum future lease payments	$ 2,000,000						$ 2,300,000	$ 2,300,000

XML

Current Liabilities - Warranty Accrual (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 29, 2012	Oct. 01, 2011	Sep. 29, 2012	Oct. 01, 2011	Mar. 31, 2012	Apr. 02, 2011
Accounts Payable and Accrued Liabilities, Current [Abstract]
New product warranty period			12 months
Refurbished product warranty period			3 months
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
Balance, beginning of the period			$ 2,398	$ 2,111	$ 2,795	$ 2,674
Liabilities accrued for warranties issued	730	545	2,797	2,313
Warranty claims paid and utilized	(793)	(529)	(2,075)	(1,633)
Changes in accrued warranty liabilities	53	(414)	(335)	(515)
Balance, end of the period	$ 2,785	$ 2,276	$ 2,785	$ 2,276	$ 2,795	$ 2,674

XML

Commitments And Contingencies Legal Proceedings (Details) In Millions, unless otherwise specified	3 Months Ended
	Sep. 29, 2012	Jul. 17, 2012
Commitments and Contingencies Disclosure [Abstract]
Lawsuit filing date	June 14, 2012
Common stock, shares authorized	40	80

XML

Current Liabilities - Deferred Services Revenue (Details) (USD $) In Thousands, unless otherwise specified			3 Months Ended		9 Months Ended
	Sep. 29, 2012	Dec. 31, 2011	Sep. 29, 2012 Service Contracts	Oct. 01, 2011 Service Contracts	Sep. 29, 2012 Service Contracts	Oct. 01, 2011 Service Contracts	Mar. 31, 2012 Service Contracts	Apr. 02, 2011 Service Contracts
Movement in Deferred Revenue [Roll Forward]
Balance, beginning of the period					$ 4,991	$ 2,903	$ 5,602	$ 4,717
Additions			1,478	1,374	5,332	6,585
Revenue recognized			(1,153)	(1,362)	(4,396)	(4,759)
Balance, end of the period			5,927	4,729	5,927	4,729	5,602	4,717
Balance sheet classification
Deferred service income-short term	32,300	20,700	4,636	3,360	4,636	3,360
Deferred service income-long term	$ 1,291	$ 1,458	$ 1,291	$ 1,369	$ 1,291	$ 1,369

XML

Stock-Based Compensation Effect on Financial Statements (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 29, 2012	Oct. 01, 2011	Sep. 29, 2012	Oct. 01, 2011
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 3,354,000	$ 2,658,000	$ 8,379,000	$ 6,190,000
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount	100,000	300,000	100,000	200,000
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition	5 years 6 months
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition			4 years 7 months 6 days
Cost of Sales
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	179,000	119,000	430,000	320,000
Research, Development, and Engineering Expense
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	492,000	434,000	1,231,000	1,050,000
Selling, General and Administrative Expenses
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 2,683,000	$ 2,105,000	$ 6,718,000	$ 4,820,000

XML

Fair Value Measurements (Tables)

9 Months Ended

Sep. 29, 2012

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The fair value of these certain financial assets and liabilities was determined using the following inputs at September 29, 2012 and December 31, 2011, respectively:

	Fair Value Measurements at September 29, 2012 Using
(In thousands)	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Available-for-sale securities(1)
Commercial paper	$	17,997		$	—	$	17,997		$	—
Money market funds	5,318			5,318		—			—
U.S. treasury bills and notes	4,026			—		4,026			—
Securities and obligations of U.S. government agencies	198,547			—		198,547			—
	225,888			5,318		220,570			—
Foreign currency derivatives(2)	8			—		8			—
Foreign currency derivatives(3)	(19		)	—		(19		)	—
	$	225,877		$	5,318	$	220,559		$	—
	Fair Value Measurements at December 31, 2011 Using
(In thousands)	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Available-for-sale securities(1)
Commercial paper	$	9,996		$	—	$	9,996		$	—
Money market funds	6,706			6,706		—			—
U.S. corporate debt securities	1,440			—		1,440			—
U.S. treasury bills and notes	3,913			—		3,913			—
Securities and obligations of U.S. government agencies	162,669			—		162,669			—
	184,724			6,706		178,018			—
Foreign currency derivatives(2)	3			—		3			—
Foreign currency derivatives(3)	(1		)	—		(1		)	—
	$	184,726		$	6,706	$	178,020		$	—

________________ 

(1) Included in cash and cash equivalents and short-term investments on our condensed consolidated balance sheet. See “Investments” in Note 6 for further details.

(2) Included in other current assets on our condensed consolidated balance sheet. Consisted of forward foreign exchange contracts for the Japanese yen. See “Derivative Instruments and Hedging” in Note 7 for further details.

(3) Included in other current liabilities on our condensed consolidated balance sheet. Consisted of forward foreign exchange contracts for the Japanese yen. See “Derivative Instruments and Hedging” in Note 7 for further details.

XML

Accumulated Other Comprehensive Income (Loss) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 29, 2012	Dec. 31, 2011
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Unrealized loss on available-for-sale investments	$ 5	$ (30)
Change in minimum postretirement medical obligation	(61)	(69)
Accumulated other comprehensive loss at end of period	$ (56)	$ (99)

XML

Derivative Instruments and Hedging - Derivatives Income Statement Location (Details) (Foreign Exchange Contract, Interest and Other Income (Expense), Net, Fair Value Hedging, USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 29, 2012	Oct. 01, 2011	Sep. 29, 2012	Oct. 01, 2011
Foreign Exchange Contract | Interest and Other Income (Expense), Net | Fair Value Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Loss Recognized in Income on Derivatives	$ (8)		$ (13)
Amount of Gain Recognized in Income on Derivatives		$ (3)		$ 22

XML

Fair Value Measurements (Details) (USD $)	Sep. 29, 2012	Dec. 31, 2011	Sep. 29, 2012 Fair Value, Measurements, Recurring Total	Oct. 01, 2011 Fair Value, Measurements, Recurring Total	Sep. 29, 2012 Fair Value, Measurements, Recurring Quoted Prices in Active Markets for Identical Assets (Level 1)	Oct. 01, 2011 Fair Value, Measurements, Recurring Quoted Prices in Active Markets for Identical Assets (Level 1)	Sep. 29, 2012 Fair Value, Measurements, Recurring Significant Other Observable Inputs, (Level 2)	Oct. 01, 2011 Fair Value, Measurements, Recurring Significant Other Observable Inputs, (Level 2)	Sep. 29, 2012 Fair Value, Measurements, Recurring Significant Unobservable Inputs (Level 3)	Oct. 01, 2011 Fair Value, Measurements, Recurring Significant Unobservable Inputs (Level 3)	Sep. 29, 2012 Commercial papers	Dec. 31, 2011 Commercial papers	Sep. 29, 2012 Money market funds	Dec. 31, 2011 Money market funds	Sep. 29, 2012 U.S. corporate debt securities	Dec. 31, 2011 U.S. corporate debt securities	Sep. 29, 2012 U.S. treasury bills and notes	Dec. 31, 2011 U.S. treasury bills and notes	Sep. 29, 2012 Securities and obligations of U.S. government agencies	Dec. 31, 2011 Securities and obligations of U.S. government agencies	Sep. 29, 2012 Cash and Cash Equivalents and Short-term Investments Available-for-sale securities Fair Value, Measurements, Recurring Total		Oct. 01, 2011 Cash and Cash Equivalents and Short-term Investments Available-for-sale securities Fair Value, Measurements, Recurring Total		Sep. 29, 2012 Cash and Cash Equivalents and Short-term Investments Available-for-sale securities Fair Value, Measurements, Recurring Quoted Prices in Active Markets for Identical Assets (Level 1)		Oct. 01, 2011 Cash and Cash Equivalents and Short-term Investments Available-for-sale securities Fair Value, Measurements, Recurring Quoted Prices in Active Markets for Identical Assets (Level 1)		Sep. 29, 2012 Cash and Cash Equivalents and Short-term Investments Available-for-sale securities Fair Value, Measurements, Recurring Significant Other Observable Inputs, (Level 2)		Oct. 01, 2011 Cash and Cash Equivalents and Short-term Investments Available-for-sale securities Fair Value, Measurements, Recurring Significant Other Observable Inputs, (Level 2)		Sep. 29, 2012 Cash and Cash Equivalents and Short-term Investments Available-for-sale securities Fair Value, Measurements, Recurring Significant Unobservable Inputs (Level 3)		Oct. 01, 2011 Cash and Cash Equivalents and Short-term Investments Available-for-sale securities Fair Value, Measurements, Recurring Significant Unobservable Inputs (Level 3)		Sep. 29, 2012 Cash and Cash Equivalents and Short-term Investments Commercial papers Fair Value, Measurements, Recurring Total		Oct. 01, 2011 Cash and Cash Equivalents and Short-term Investments Commercial papers Fair Value, Measurements, Recurring Total		Sep. 29, 2012 Cash and Cash Equivalents and Short-term Investments Commercial papers Fair Value, Measurements, Recurring Quoted Prices in Active Markets for Identical Assets (Level 1)		Oct. 01, 2011 Cash and Cash Equivalents and Short-term Investments Commercial papers Fair Value, Measurements, Recurring Quoted Prices in Active Markets for Identical Assets (Level 1)		Sep. 29, 2012 Cash and Cash Equivalents and Short-term Investments Commercial papers Fair Value, Measurements, Recurring Significant Other Observable Inputs, (Level 2)		Oct. 01, 2011 Cash and Cash Equivalents and Short-term Investments Commercial papers Fair Value, Measurements, Recurring Significant Other Observable Inputs, (Level 2)		Sep. 29, 2012 Cash and Cash Equivalents and Short-term Investments Commercial papers Fair Value, Measurements, Recurring Significant Unobservable Inputs (Level 3)		Oct. 01, 2011 Cash and Cash Equivalents and Short-term Investments Commercial papers Fair Value, Measurements, Recurring Significant Unobservable Inputs (Level 3)		Sep. 29, 2012 Cash and Cash Equivalents and Short-term Investments Money market funds Fair Value, Measurements, Recurring Total		Oct. 01, 2011 Cash and Cash Equivalents and Short-term Investments Money market funds Fair Value, Measurements, Recurring Total		Sep. 29, 2012 Cash and Cash Equivalents and Short-term Investments Money market funds Fair Value, Measurements, Recurring Quoted Prices in Active Markets for Identical Assets (Level 1)		Oct. 01, 2011 Cash and Cash Equivalents and Short-term Investments Money market funds Fair Value, Measurements, Recurring Quoted Prices in Active Markets for Identical Assets (Level 1)		Sep. 29, 2012 Cash and Cash Equivalents and Short-term Investments Money market funds Fair Value, Measurements, Recurring Significant Other Observable Inputs, (Level 2)		Oct. 01, 2011 Cash and Cash Equivalents and Short-term Investments Money market funds Fair Value, Measurements, Recurring Significant Other Observable Inputs, (Level 2)		Sep. 29, 2012 Cash and Cash Equivalents and Short-term Investments Money market funds Fair Value, Measurements, Recurring Significant Unobservable Inputs (Level 3)		Oct. 01, 2011 Cash and Cash Equivalents and Short-term Investments Money market funds Fair Value, Measurements, Recurring Significant Unobservable Inputs (Level 3)		Oct. 01, 2011 Cash and Cash Equivalents and Short-term Investments U.S. corporate debt securities Fair Value, Measurements, Recurring Total		Oct. 01, 2011 Cash and Cash Equivalents and Short-term Investments U.S. corporate debt securities Fair Value, Measurements, Recurring Quoted Prices in Active Markets for Identical Assets (Level 1)		Oct. 01, 2011 Cash and Cash Equivalents and Short-term Investments U.S. corporate debt securities Fair Value, Measurements, Recurring Significant Other Observable Inputs, (Level 2)		Oct. 01, 2011 Cash and Cash Equivalents and Short-term Investments U.S. corporate debt securities Fair Value, Measurements, Recurring Significant Unobservable Inputs (Level 3)		Sep. 29, 2012 Cash and Cash Equivalents and Short-term Investments U.S. treasury bills and notes Fair Value, Measurements, Recurring Total		Oct. 01, 2011 Cash and Cash Equivalents and Short-term Investments U.S. treasury bills and notes Fair Value, Measurements, Recurring Total		Sep. 29, 2012 Cash and Cash Equivalents and Short-term Investments U.S. treasury bills and notes Fair Value, Measurements, Recurring Quoted Prices in Active Markets for Identical Assets (Level 1)		Oct. 01, 2011 Cash and Cash Equivalents and Short-term Investments U.S. treasury bills and notes Fair Value, Measurements, Recurring Quoted Prices in Active Markets for Identical Assets (Level 1)		Sep. 29, 2012 Cash and Cash Equivalents and Short-term Investments U.S. treasury bills and notes Fair Value, Measurements, Recurring Significant Other Observable Inputs, (Level 2)		Oct. 01, 2011 Cash and Cash Equivalents and Short-term Investments U.S. treasury bills and notes Fair Value, Measurements, Recurring Significant Other Observable Inputs, (Level 2)		Sep. 29, 2012 Cash and Cash Equivalents and Short-term Investments U.S. treasury bills and notes Fair Value, Measurements, Recurring Significant Unobservable Inputs (Level 3)		Oct. 01, 2011 Cash and Cash Equivalents and Short-term Investments U.S. treasury bills and notes Fair Value, Measurements, Recurring Significant Unobservable Inputs (Level 3)		Sep. 29, 2012 Cash and Cash Equivalents and Short-term Investments Securities and obligations of U.S. government agencies Fair Value, Measurements, Recurring Total		Oct. 01, 2011 Cash and Cash Equivalents and Short-term Investments Securities and obligations of U.S. government agencies Fair Value, Measurements, Recurring Total		Sep. 29, 2012 Cash and Cash Equivalents and Short-term Investments Securities and obligations of U.S. government agencies Fair Value, Measurements, Recurring Quoted Prices in Active Markets for Identical Assets (Level 1)		Oct. 01, 2011 Cash and Cash Equivalents and Short-term Investments Securities and obligations of U.S. government agencies Fair Value, Measurements, Recurring Quoted Prices in Active Markets for Identical Assets (Level 1)		Sep. 29, 2012 Cash and Cash Equivalents and Short-term Investments Securities and obligations of U.S. government agencies Fair Value, Measurements, Recurring Significant Other Observable Inputs, (Level 2)		Oct. 01, 2011 Cash and Cash Equivalents and Short-term Investments Securities and obligations of U.S. government agencies Fair Value, Measurements, Recurring Significant Other Observable Inputs, (Level 2)		Sep. 29, 2012 Cash and Cash Equivalents and Short-term Investments Securities and obligations of U.S. government agencies Fair Value, Measurements, Recurring Significant Unobservable Inputs (Level 3)		Oct. 01, 2011 Cash and Cash Equivalents and Short-term Investments Securities and obligations of U.S. government agencies Fair Value, Measurements, Recurring Significant Unobservable Inputs (Level 3)		Sep. 29, 2012 Designated as Hedging Instrument Foreign Exchange Forward Fair Value, Measurements, Recurring Total		Oct. 01, 2011 Designated as Hedging Instrument Foreign Exchange Forward Fair Value, Measurements, Recurring Total		Sep. 29, 2012 Designated as Hedging Instrument Foreign Exchange Forward Fair Value, Measurements, Recurring Quoted Prices in Active Markets for Identical Assets (Level 1)		Oct. 01, 2011 Designated as Hedging Instrument Foreign Exchange Forward Fair Value, Measurements, Recurring Quoted Prices in Active Markets for Identical Assets (Level 1)		Sep. 29, 2012 Designated as Hedging Instrument Foreign Exchange Forward Fair Value, Measurements, Recurring Significant Other Observable Inputs, (Level 2)		Oct. 01, 2011 Designated as Hedging Instrument Foreign Exchange Forward Fair Value, Measurements, Recurring Significant Other Observable Inputs, (Level 2)		Sep. 29, 2012 Designated as Hedging Instrument Foreign Exchange Forward Fair Value, Measurements, Recurring Significant Unobservable Inputs (Level 3)		Oct. 01, 2011 Designated as Hedging Instrument Foreign Exchange Forward Fair Value, Measurements, Recurring Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total, fair value	$ 225,888,000	$ 184,724,000									$ 17,997,000	$ 9,996,000	$ 5,318,000	$ 6,706,000	$ 0	$ 1,440,000	$ 4,026,000	$ 3,913,000	$ 198,547,000	$ 162,669,000	$ 225,888,000	[1]	$ 184,724,000	[1]	$ 5,318,000	[1]	$ 6,706,000	[1]	$ 220,570,000	[1]	$ 178,018,000	[1]	$ 0	[1]	$ 0	[1]	$ 17,997,000	[1]	$ 9,996,000	[1]	$ 0	[1]	$ 0	[1]	$ 17,997,000	[1]	$ 9,996,000	[1]	$ 0	[1]	$ 0	[1]	$ 5,318,000	[1]	$ 6,706,000	[1]	$ 5,318,000	[1]	$ 6,706,000	[1]	$ 0	[1]	$ 0	[1]	$ 0	[1]	$ 0	[1]	$ 1,440,000	[1]	$ 0	[1]	$ 1,440,000	[1]	$ 0	[1]	$ 4,026,000	[1]	$ 3,913,000	[1]	$ 0	[1]	$ 0	[1]	$ 4,026,000	[1]	$ 3,913,000	[1]	$ 0	[1]	$ 0	[1]	$ 198,547,000	[1]	$ 162,669,000	[1]	$ 0	[1]	$ 0	[1]	$ 198,547,000	[1]	$ 162,669,000	[1]	$ 0	[1]	$ 0	[1]
Foreign currency derivatives, other current asset																																																																																																													8,000	[2]	3,000	[2]	0	[2]	0	[2]	8,000	[2]	3,000	[2]	0	[2]	0	[2]
Foreign currency derivatives, other current liabilities																																																																																																													(19,000)	[3]	(1,000)	[3]	0	[3]	0	[3]	(19,000)	[3]	(1,000)	[3]	0	[3]	0	[3]
Net current assets and current liabilities, fair value			$ 225,877,000	$ 184,726,000	$ 5,318,000	$ 6,706,000	$ 220,559,000	$ 178,020,000	$ 0	$ 0

[1] (1)Included in cash and cash equivalents and short-term investments on our condensed consolidated balance sheet. See “Investments” in Note 6 for further details.

[2] (2)Included in other current assets on our condensed consolidated balance sheet. Consisted of forward foreign exchange contracts for the Japanese yen. See “Derivative Instruments and Hedging” in Note 7 for further details.

[3] (3)Included in other current liabilities on our condensed consolidated balance sheet. Consisted of forward foreign exchange contracts for the Japanese yen. See “Derivative Instruments and Hedging” in Note 7 for further details.

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Income Taxes (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 29, 2012	Oct. 01, 2011	Sep. 29, 2012	Oct. 01, 2011	Dec. 31, 2011
Income Tax Expense (Benefit) [Abstract]
Income tax provision	$ 2,638,000	$ 1,020,000	$ 5,779,000	$ 2,420,000
Unrecognized tax benefits					5,500,000
Unrecognized tax benefits that would impact effective tax rate					$ 5,500,000

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Current Liabilities - Other Current Liabilities (Details) (USD $) In Thousands, unless otherwise specified	Sep. 29, 2012	Mar. 31, 2012	Dec. 31, 2011		Oct. 01, 2011	Apr. 02, 2011	Dec. 31, 2010
Accounts Payable and Accrued Liabilities, Current [Abstract]
Salaries and benefits	$ 9,762		$ 10,023
Warranty accrual	2,785	2,795	2,398		2,276	2,674	2,111
Accrued taxes-other	591		1,729
Capital lease, current portion	45		176
Advanced billing	411		5,809
Other	2,201		2,238
Balance, end of the period	$ 15,795		$ 22,373	[1]

[1] The Balance Sheet as of December 31, 2011 has been derived from the audited financial statements at that date.

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Basic And Diluted Net Income Per Share

9 Months Ended

Sep. 29, 2012

Earnings Per Share [Abstract]

Basic And Diluted Net Income Per Share

Basic and Diluted Net Income Per Share

The following table sets forth the computation of basic and diluted net income per share:

	Three Months Ended				Nine Months Ended
(In thousands, except per share amounts)	September 29, 2012		October 1, 2011		September 29, 2012		October 1, 2011
Numerator:
Net income	$	12,442	$	10,464	$	33,813	$	28,059
Denominator:
Basic weighted-average shares outstanding	27,047		25,977		26,635		25,678
Effect of dilutive employee stock options and restricted stock units	730		670		846		942
Diluted weighted-average shares outstanding	27,777		26,647		27,481		26,620
Net income per share - basic:
Net income	$	0.46	$	0.40	$	1.27	$	1.09
Net income per share - diluted:
Net income	$	0.45	$	0.39	$	1.23	$	1.05

For the three and nine month periods ended September 29, 2012, 1.4 million and 1.3 million shares of common stock subject to outstanding options, respectively, were excluded from the computation of diluted net income per share, as the effect would have been anti-dilutive, as compared to 1.3 million and 0.9 million shares of common stock related to outstanding options for the corresponding periods of 2011. There were no shares of common stock underlying outstanding restricted stock units excluded from the computation for the three and nine month periods ended September 29, 2012. The number of shares of common stock underlying outstanding restricted stock units that were excluded from the computation was 0.2 million and 0.1 million, respectively, for the corresponding periods of 2011. Options and restricted stock units are anti-dilutive when we have a net loss or when the exercise price and the average unrecognized compensation cost of the stock option or restricted stock unit is greater than the average market price of our common stock during the period.

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Derivative Instruments and Hedging - Narrative (Details) In Millions, unless otherwise specified	9 Months Ended
	Sep. 29, 2012	Sep. 29, 2012 Forward Contracts USD ($)	Sep. 29, 2012 Forward Contracts JPY (¥)	Sep. 29, 2012 Foreign Buy-forward Contract [Member] contract	Sep. 29, 2012 Foreign Sell-forward Contract [Member] contract
Derivative [Line Items]
Number of Foreign Currency Derivatives Held				1	1
Maximum Remaining Maturity of Foreign Currency Derivatives	9 months
Notional Amount of Foreign Currency Derivative Purchase Contracts		$ 1.0	¥ 77.4
Notional Amount of Foreign Currency Derivative Sale Contracts		$ 0.4	¥ 31.2

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Current Liabilities (Tables)

9 Months Ended

Sep. 29, 2012

Accounts Payable and Accrued Liabilities, Current [Abstract]

Deferred Revenue, by Arrangement, Disclosure

Changes in our deferred service revenue are as follows:

	Three Months Ended						Nine Months Ended
(In thousands)	September 29, 2012			October 1, 2011			September 29, 2012			October 1, 2011
Balance, beginning of the period	$	5,602		$	4,717		$	4,991		$	2,903
Additions	1,478			1,374			5,332			6,585
Revenue recognized	(1,153		)	(1,362		)	(4,396		)	(4,759		)
Balance, end of the period	$	5,927		$	4,729		$	5,927		$	4,729
Balance sheet classification
Deferred service income-short term	$	4,636		$	3,360
Deferred service income-long term	1,291			1,369
Balance, end of period	$	5,927		$	4,729

Schedule of Accrued Liabilities

Other current liabilities consist of the following:

(In thousands)	September 29, 2012		December 31, 2011
Salaries and benefits	$	9,762	$	10,023
Warranty accrual	2,785		2,398
Advanced billing	411		5,809
Accrued taxes-other	591		1,729
Capital lease, current portion	45		176
Other	2,201		2,238
Balance, end of the period	$	15,795	$	22,373

Schedule of Product Warranty Liability

Changes in our warranty accrual are as follows:

	Three Months Ended						Nine Months Ended
(In thousands)	September 29, 2012			October 1, 2011			September 29, 2012			October 1, 2011
Balance, beginning of the period	$	2,795		$	2,674		$	2,398		$	2,111
Liabilities accrued for warranties issued	730			545			2,797			2,313
Warranty claims paid and utilized	(793		)	(529		)	(2,075		)	(1,633		)
Changes in accrued warranty liabilities	53			(414		)	(335		)	(515		)
Balance, end of the period	$	2,785		$	2,276		$	2,785		$	2,276

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Inventories, net (Tables)

9 Months Ended

Sep. 29, 2012

Inventory Disclosure [Abstract]

Schedule of Inventory, Current

Inventories consist of the following:

(In thousands)	September 29, 2012		December 31, 2011
Raw materials	$	21,273	$	17,373
Work-in-process	13,969		12,404
Finished products	12,504		11,508
Balance, end of the period	$	47,746	$	41,285

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Inventories, net (Details) (USD $) In Thousands, unless otherwise specified	Sep. 29, 2012	Dec. 31, 2011
Inventory Disclosure [Abstract]
Raw materials	$ 21,273	$ 17,373
Work-in-process	13,969	12,404
Finished products	12,504	11,508
Balance, end of period	$ 47,746	$ 41,285	[1]

[1] The Balance Sheet as of December 31, 2011 has been derived from the audited financial statements at that date.

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Other Liabilities (Tables)

9 Months Ended

Sep. 29, 2012

Other Liabilities Disclosure [Abstract]

Schedule of Other Assets and Other Liabilities

Other liabilities consist of the following:

(In thousands)	September 29, 2012		December 31, 2011
Long-term income taxes payable	$	7,805	$	2,344
Asset retirement obligation	2,012		1,925
Deferred compensation	1,942		1,120
Deferred service income-long term	1,291		1,458
Postretirement medical obligation	909		909
Deferred rent	140		—
Other	225		357
Balance, end of the period	$	14,324	$	8,113

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Accumulated Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Sep. 29, 2012

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive loss, net of tax, is comprised of the following items:

(In thousands)	September 29, 2012			December 31, 2011
Unrealized gain (loss) on available-for-sale investments	$	5		$	(30	)
Change in minimum postretirement medical obligation	(61		)	(69		)
Accumulated other comprehensive loss at end of period	$	(56	)	$	(99	)

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Stock-Based Compensation

9 Months Ended

Sep. 29, 2012

Share-based Compensation [Abstract]

Stock-Based Compensation

Stock-Based Compensation

Stock-based compensation expense recognized under ASC Topic 718, Compensation – Stock Compensation (“ASC 718”), for employees and directors and the effect on our Condensed Consolidated Statements of Operations were as follows:

	Three Months Ended				Nine Months Ended
(In thousands)	September 29, 2012		October 1, 2011		September 29, 2012		October 1, 2011
Cost of sales	$	179	$	119	$	430	$	320
Research, development, and engineering	492		434		1,231		1,050
Selling, general and administrative expenses	2,683		2,105		6,718		4,820
Total stock-based compensation expense	$	3,354	$	2,658	$	8,379	$	6,190

Stock-based compensation cost capitalized as part of inventory during the three month period ended September 29, 2012 and the corresponding period of 2011 was $0.1 million and $0.1 million, respectively. The amount capitalized for the nine month period ended September 29, 2012 and the corresponding period of 2011 was $0.3 million and $0.2 million, respectively.

As required by ASC 718, we estimate expected forfeitures and recognize compensation costs only for those equity awards expected to vest. As of September 29, 2012, there was $46.7 million of total unrecognized compensation cost related to non-vested stock-based compensation arrangements granted under our 1993 Stock Option Plan/Stock Issuance Plan, as amended (“1993 Plan”), and our 1998 Supplemental Stock Option/Stock Issuance Plan, as amended (“1998 Plan”). The costs related to stock options and restricted stock units are expected to be recognized over a weighted average period of P5Y6M years and P4Y7M6D years, respectively.

On July 19, 2011, our stockholders approved amendments to the 1993 Plan which increased the number of shares available for issuance pursuant to the 1993 Plan by 3.3 million shares. The amendments, which were adopted by our Board of Directors on May 31, 2011, effective as of their approval by our stockholders, increased the share reserve, altered share-counting procedures, made changes to the non-employee director automatic grant program and enabled the grant of performance-based awards under the plan. These plans provide for the grant of stock-based awards to our eligible employees, consultants and advisers and non-employee directors. There were no shares reserved for future awards under the 1998 Plan since the plan expired on October 19, 2008. However, as of September 29, 2012, there were 2.2 million shares reserved for future awards under the 1993 Plan.

We used the following weighted-average assumptions to estimate the fair value of our stock options granted during the three and nine month periods ended September 29, 2012 and October 1, 2011, respectively:

	Three Months Ended		Nine Months Ended
	September 29, 2012	October 1, 2011	September 29, 2012	October 1, 2011
Expected life (in years)	8.4	7.9	7.7993150685	8.2
Risk-free interest rate	1.3%	2.6%	1.4%	3.0%
Volatility	49%	49%	48%	48%
Dividend yield	—	—	—	—

Our stock options granted during the three month period ended September 29, 2012 were granted with vesting terms of 50 months and 100 months. The weighted-average expected life of our stock options granted during the three months ended September 29, 2012 was 8.4 years.

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Basis Of Presentation (Details) (USD $)	9 Months Ended
	Sep. 29, 2012	Dec. 31, 2011
Restricted Cash and Cash Equivalents Items [Line Items]
Number of Revenue Sources from Products and Services	4
Deferred Revenue [Abstract]
Deferred revenue, gross	$ 32,300,000	$ 20,700,000
Deferred costs, gross	10,600,000	5,700,000
Interest-bearing Deposits
Deferred Revenue [Abstract]
Restricted cash	$ 200,000

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Investments Continuous Unrealized Loss Position (Details) (USD $)	Sep. 29, 2012	Dec. 31, 2011
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Debt Maturities, within One Year, Amortized Cost Basis	$ 169,310,000	$ 153,346,000
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	28,508,000	29,613,000
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses	59,000	72,000
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	28,508,000	29,613,000
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses	59,000	72,000
Available-for-sale Securities, Debt Maturities, within One Year, Fair Value	169,302,000	153,328,000
Available-for-sale Securities, Debt Maturities, after One Through Five Years, Amortized Cost Basis	56,573,000	31,408,000
Available-for-sale Securities, Debt Maturities, after One Through Five Years, Fair Value	56,586,000	31,396,000
Total, amortized cost basis	225,883,000	184,754,000
Total, fair value	225,888,000	184,724,000
Commercial paper
Schedule of Available-for-sale Securities [Line Items]
Total, fair value	17,997,000	9,996,000
U.S. corporate debt securities
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value		1,440,000
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses		1,000
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value		1,440,000
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses		1,000
Total, fair value	0	1,440,000
Securities and obligations of U.S. government agencies
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	28,508,000	28,173,000
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses	59,000	71,000
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	28,508,000	28,173,000
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses	59,000	71,000
Total, fair value	$ 198,547,000	$ 162,669,000

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Intangibles Assets, net (Details) (USD $)	3 Months Ended	9 Months Ended
	Sep. 29, 2012	Sep. 29, 2012	Oct. 01, 2011
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	$ 215,000	$ 215,000
Amortization of Intangible Assets	0	0	0
Finite-Lived Intangible Assets, Gross	8,800,000	8,800,000
Finite-Lived Intangible Assets, Accumulated Amortization	600,000	600,000
Finite-Lived Intangible Assets, Amortization Expense, Year Two	895,000	895,000
Finite-Lived Intangible Assets, Amortization Expense, Year Three	881,000	881,000
Finite-Lived Intangible Assets, Amortization Expense, Year Four	848,000	848,000
Finite-Lived Intangible Assets, Amortization Expense, Year Five	799,000	799,000
Finite-Lived Intangible Assets, Amortization Expense, after Year Five	4,533,000	4,533,000
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	11 years 10 months 24 days
Finite-Lived Intangible Assets, Net	8,171,000	8,171,000
Payments to acquire rights to patents and patent applications	$ 8,000,000	$ 8,000,000	$ 0

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Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Sep. 29, 2012	Dec. 31, 2011
Current assets:
Cash and cash equivalents	$ 74,305	$ 58,780	[1]
Short-term investments	206,571	169,167	[1]
Accounts receivable, net	50,326	56,506	[1]
Inventories, net	47,746	41,285	[1]
Prepaid expenses and other current assets	6,556	6,848	[1]
Total current assets	385,504	332,586	[1]
Property, plant, and equipment, net	18,806	16,009	[1]
Intangibles assets, net	8,171	452	[1]
Other assets	5,158	4,401	[1]
Total assets	417,639	353,448	[1]
Current liabilities:
Notes payable	1,000	1,000	[1]
Accounts payable	15,529	10,980	[1]
Deferred product and services income	21,667	14,953	[1]
Other current liabilities	15,795	22,373	[1]
Total current liabilities	53,991	49,306	[1]
Other liabilities	14,324	8,113	[1]
Stockholders' Equity:
Stockholders' equity	349,324	296,029	[1]
Total liabilities and stockholders' equity	$ 417,639	$ 353,448	[1]

[1] The Balance Sheet as of December 31, 2011 has been derived from the audited financial statements at that date.

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Notes Payable (Details) (Line of Credit, Brokerage Firm, USD $) In Millions, unless otherwise specified	Sep. 29, 2012	Dec. 31, 2011
Line of Credit Facility [Line Items]
Maximum borrowing percent of cash, cash equivalents and investments balance	75.00%
Line of credit facilitry amount outstanding	$ 1.0	$ 1.0
Line of credit facility collateral requirement	$ 1.3	$ 1.3
Federal Funds Open Rate
Line of Credit Facility [Line Items]
Line of credit facility basis points	1.25%

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Description of Business

9 Months Ended

Sep. 29, 2012

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Description of Business

Description of Business

Ultratech, Inc. (referred to herein as “Ultratech,” the “Company”, “we”, “our” or “us”) develops, manufactures and markets photolithography and laser thermal processing equipment designed to reduce the cost of ownership for manufacturers of semiconductor devices, including advanced packaging processes and various nanotechnology components including thin film head magnetic recording devices ("thin film heads" or "TFHs"), optical networking devices, laser diodes and high-brightness light emitting diodes ("HBLEDs") for customers located throughout North America, Europe, Singapore, Japan, Taiwan, Korea and the rest of Asia. Ultratech was incorporated in the state of Delaware in 1992.

We supply step-and-repeat photolithography systems based on one-to-one imaging technology. Within the semiconductor industry, we target the market for advanced packaging applications. Our laser thermal processing equipment is targeted at advanced annealing applications within the semiconductor industry. Within the nanotechnology industry, our target markets include thin film head magnetic recording devices, ink jet print heads, laser diodes and HBLEDs.

In evaluating our business, we gave consideration to the Chief Executive Officer’s review of financial information and the organizational structure of our management. Based on this review, we concluded that, at the present time, resources are allocated and other financial decisions are made based on our consolidated financial information. Accordingly, we have determined that we operate in one business segment, which is the manufacture and distribution of capital equipment to manufacturers of semiconductor devices and nanotechnology components.

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Stock-Based Compensation Narrative (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended		3 Months Ended				0 Months Ended
	Sep. 29, 2012	Oct. 01, 2011	Sep. 29, 2012	Oct. 01, 2011	Sep. 29, 2012 Stock Options	Sep. 29, 2012 Stock Options, 50 Month Vesting Class	Sep. 29, 2012 Stock Options, 100 Month Vesting Class	Sep. 29, 2012 Restricted Stock	Jul. 19, 2011 1993 Stock Plan	Sep. 29, 2012 1993 Stock Plan Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount	$ 0.1	$ 0.3	$ 0.1	$ 0.2
Period for recognition of costs related to stock options and restricted stock units (in years)			4 years 7 months 6 days		5 years 6 months			4 years 7 months 6 days
Increased number of shares available for issuance (in shares)									3.3
Shares reserved for future awards (in shares)										2.2
Stock options vesting period (in months)						50 months	100 months

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Basis Of Presentation Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 29, 2012

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Accounting, Policy

The accompanying condensed consolidated financial statements include our accounts and the accounts of our subsidiaries. All intercompany accounts and transactions have been eliminated.

Our interim financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("U.S. GAAP") for interim financial information and the rules and regulations of the Securities and Exchange Commission ("SEC") for interim financial statements and accounting policies, consistent, in all material respects with those applied in preparing our audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2011, filed with the SEC on February 29, 2012. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In our opinion, all adjustments, consisting of only normal recurring adjustments considered necessary for fair presentation, have been included.

Fiscal Period, Policy

Our fiscal periods end on the Saturday closest to month-end, except that our fiscal year ends on December 31. All references to the quarter or three month period refer to our fiscal quarter. Our fiscal quarters covered by this report ended on September 29, 2012 and October 1, 2011.

Use of Estimates, Policy

USE OF ESTIMATES — The preparation of the financial statements and related disclosures in conformity with U.S. GAAP require us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and the related disclosure of contingent assets and liabilities at the date of the consolidated financial statements. By their nature, these estimates and judgments are subject to an inherent degree of uncertainty. On an ongoing basis, we evaluate our estimates, including those related to inventories, warranty obligations, purchase order commitments, asset retirement obligations, bad debts, estimated useful lives of fixed assets, asset impairment, income taxes, intangible assets, contingencies and litigation. We base our estimates on historical experience and on various other analyses and assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

Impact of Recently Issued Accounting Standards, Policy

IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS —In June 2011, the FASB issued ASU No. 2011-05, Comprehensive Income, Presentation of Comprehensive Income and in December 2011, the FASB issued ASU No. 2011-12, Deferral of the Effective Date for Amendments to the Presentation of Reclassification of Items Out of Accumulated Other Comprehensive Income in ASU 2011-05 to increase the prominence of items reported in other comprehensive income. Specifically, the new guidance allows an entity to present components of net income or other comprehensive income in one continuous statement, referred to as the statement of comprehensive income, or in two separate, but consecutive statements. The new guidance eliminates the current option to report other comprehensive income and its components in the consolidated statement of shareholders' equity. While the new guidance changes the presentation of comprehensive income, there are no changes to the components that are recognized in net income or other comprehensive income under current accounting guidance. This new guidance is effective for fiscal years and interim periods beginning after December 15, 2011. We adopted this guidance on January 1, 2012 and have presented a new financial statement titled Condensed Consolidated Statement of Comprehensive Income for the three and nine month periods ending September 29, 2012 and October 1, 2011.

Revenue Recognition, Policy

Revenue Recognition

We recognize revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the arrangement consideration is fixed or determinable, and collectability is reasonably assured. We derive revenue from four sources: system sales, spare parts sales, service contracts and license fees.

Provided all other criteria are met, we recognize revenues on system sales when system acceptance provisions have been met in accordance with the terms and conditions of the arrangement. In the event that terms of the sale provide for a lapsing system acceptance period, we recognize revenue upon the expiration of the lapsing acceptance period or system acceptance, whichever occurs first. In these instances, which are infrequent, revenue is recorded only if the product has met product specifications prior to shipment and management deems that no significant uncertainties as to product performance exist.

Our transactions frequently include the sale of systems and services under multiple element arrangements. In transactions with multiple deliverables, revenue is recognized upon the delivery of the separate elements and when system acceptance has occurred or we are otherwise released from our system acceptance obligations.

In the first quarter of 2011, we adopted Accounting Standard Update (“ASU”) No. 2009-13, Revenue Recognition ("Topic 605") - Multi-Deliverables Revenue Arrangements, a Consensus of the FASB Emerging Issues Task Force on a prospective basis for applicable transactions originating or materially modified on or subsequent to January 1, 2011. The new standard changed the requirements for establishing separate units of accounting in a multiple element arrangement and requires the allocation of arrangement consideration to each deliverable to be based on the relative selling price. Implementation of this new authoritative guidance had an insignificant impact on reported revenue as compared to revenue under previous guidance, as the new guidance did not change the units of accounting within sales arrangements and the elimination of the residual method for the allocation of arrangement consideration had an insignificant impact on the amount and timing of reported revenue.

For multiple element arrangements entered into or materially modified on or subsequent to January 1, 2011, the total consideration for an arrangement is allocated among the separate elements in the arrangement based on a selling price hierarchy. The selling price hierarchy for a deliverable is based on (i) vendor specific objective evidence ("VSOE"); if available; (ii) third party evidence of selling price if VSOE is not available; or (iii) an estimated selling price, if neither VSOE nor third party evidence is available. If we have not established VSOE and cannot obtain third party evidence of selling price, we determine our estimate of the relative selling price by considering our production costs and historical margins of similar products or services. We believe this best represents the price at which we would transact a sale if the product or service were sold on a stand-alone basis. We regularly review the method used to determine our relative selling price and update any estimates accordingly. We limit the amount of revenue recognized for delivered elements to the amount that is not contingent on the future delivery of products or services or other future performance obligations.

For multiple element arrangements entered into prior to January 1, 2011, revenue is allocated among the separate accounting units based on the residual method under which the revenue is allocated to undelivered elements based on fair value of such undelivered elements and the residual amounts of revenue are allocated to delivered elements, provided the delivered elements have value on a stand alone basis, there is objective and reliable evidence of fair value for the undelivered elements, the arrangement does not include a general right of return relative to the delivered item and delivery or performance of the undelivered item(s) is considered probable and substantially in our control. The maximum revenue recognized on a delivered element is limited to the amount that is not contingent upon the delivery of additional items.

We generally recognize revenue from spare parts sales upon shipment, as our products are generally sold on terms that transfer title and risk of ownership when it leaves our site. We sell service contracts for which revenue is deferred and recognized ratably over the contract period (for time-based service contracts) or as service hours are delivered (for contracts based on a purchased quantity of hours). We recognize license revenue from transactions in which our systems are re-sold by our customers to third parties, as well as from royalty arrangements.

Costs related to deferred product revenues are capitalized (deferred) and recognized at the time of revenue recognition. Deferred product revenue and costs are netted on our balance sheet, under the caption “deferred product and services income.” The gross amount of deferred revenues and deferred costs at September 29, 2012 were $32.3 million and $10.6 million, respectively, as compared to $20.7 million and $5.7 million, respectively, at December 31, 2011.

Costs incurred for shipping and handling are included in cost of sales.

Other Assets, Policy

Other Assets

Included in other assets at September 29, 2012 is restricted cash in the amount of $0.2 million. The restricted cash is in the form of an interest bearing account. Our obligation will be released upon the completion of our warranty obligation for a certain customer.

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Basic And Diluted Net Income Per Share (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 29, 2012	Oct. 01, 2011	Sep. 29, 2012	Oct. 01, 2011
Numerator:
Net income	$ 12,442	$ 10,464	$ 33,813	$ 28,059
Denominator:
Basic weighted-average shares outstanding (in shares)	27,047,000	25,977,000	26,635,000	25,678,000
Effect of dilutive employee stock options and restricted stock units (in shares)	730,000	670,000	846,000	942,000
Diluted weighted-average shares outstanding (in shares)	27,777,000	26,647,000	27,481,000	26,620,000
Net income per share - basic:
Net income per share - basic (in dollars per share)	$ 0.46	$ 0.40	$ 1.27	$ 1.09
Net income per share - diluted:
Net income per share - diluted (in dollars per share)	$ 0.45	$ 0.39	$ 1.23	$ 1.05
Common Stock
Net income per share - diluted:
Antidilutive securities excluded from computation of earnings per share (in shares)	1,400,000	1,300,000	1,300,000	900,000
Restricted Stock Units (RSUs)
Net income per share - diluted:
Antidilutive securities excluded from computation of earnings per share (in shares)		200,000	100,000	0

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Basic And Diluted Net Income Per Share (Tables)

9 Months Ended

Sep. 29, 2012

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table sets forth the computation of basic and diluted net income per share:

	Three Months Ended				Nine Months Ended
(In thousands, except per share amounts)	September 29, 2012		October 1, 2011		September 29, 2012		October 1, 2011
Numerator:
Net income	$	12,442	$	10,464	$	33,813	$	28,059
Denominator:
Basic weighted-average shares outstanding	27,047		25,977		26,635		25,678
Effect of dilutive employee stock options and restricted stock units	730		670		846		942
Diluted weighted-average shares outstanding	27,777		26,647		27,481		26,620
Net income per share - basic:
Net income	$	0.46	$	0.40	$	1.27	$	1.09
Net income per share - diluted:
Net income	$	0.45	$	0.39	$	1.23	$	1.05

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Basis Of Presentation

9 Months Ended

Sep. 29, 2012

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis Of Presentation

Basis of Presentation

The accompanying condensed consolidated financial statements include our accounts and the accounts of our subsidiaries. All intercompany accounts and transactions have been eliminated.

Our interim financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("U.S. GAAP") for interim financial information and the rules and regulations of the Securities and Exchange Commission ("SEC") for interim financial statements and accounting policies, consistent, in all material respects with those applied in preparing our audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2011, filed with the SEC on February 29, 2012. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In our opinion, all adjustments, consisting of only normal recurring adjustments considered necessary for fair presentation, have been included.

Our fiscal periods end on the Saturday closest to month-end, except that our fiscal year ends on December 31. All references to the quarter or three month period refer to our fiscal quarter. Our fiscal quarters covered by this report ended on September 29, 2012 and October 1, 2011.

Operating results for the three and nine month periods ended September 29, 2012 are not necessarily indicative of the results that may be expected for the year ending December 31, 2012, or any future periods.

USE OF ESTIMATES — The preparation of the financial statements and related disclosures in conformity with U.S. GAAP require us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and the related disclosure of contingent assets and liabilities at the date of the consolidated financial statements. By their nature, these estimates and judgments are subject to an inherent degree of uncertainty. On an ongoing basis, we evaluate our estimates, including those related to inventories, warranty obligations, purchase order commitments, asset retirement obligations, bad debts, estimated useful lives of fixed assets, asset impairment, income taxes, intangible assets, contingencies and litigation. We base our estimates on historical experience and on various other analyses and assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS —In June 2011, the FASB issued ASU No. 2011-05, Comprehensive Income, Presentation of Comprehensive Income and in December 2011, the FASB issued ASU No. 2011-12, Deferral of the Effective Date for Amendments to the Presentation of Reclassification of Items Out of Accumulated Other Comprehensive Income in ASU 2011-05 to increase the prominence of items reported in other comprehensive income. Specifically, the new guidance allows an entity to present components of net income or other comprehensive income in one continuous statement, referred to as the statement of comprehensive income, or in two separate, but consecutive statements. The new guidance eliminates the current option to report other comprehensive income and its components in the consolidated statement of shareholders' equity. While the new guidance changes the presentation of comprehensive income, there are no changes to the components that are recognized in net income or other comprehensive income under current accounting guidance. This new guidance is effective for fiscal years and interim periods beginning after December 15, 2011. We adopted this guidance on January 1, 2012 and have presented a new financial statement titled Condensed Consolidated Statement of Comprehensive Income for the three and nine month periods ending September 29, 2012 and October 1, 2011.

Revenue Recognition

We recognize revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the arrangement consideration is fixed or determinable, and collectability is reasonably assured. We derive revenue from four sources: system sales, spare parts sales, service contracts and license fees.

Provided all other criteria are met, we recognize revenues on system sales when system acceptance provisions have been met in accordance with the terms and conditions of the arrangement. In the event that terms of the sale provide for a lapsing system acceptance period, we recognize revenue upon the expiration of the lapsing acceptance period or system acceptance, whichever occurs first. In these instances, which are infrequent, revenue is recorded only if the product has met product specifications prior to shipment and management deems that no significant uncertainties as to product performance exist.

Our transactions frequently include the sale of systems and services under multiple element arrangements. In transactions with multiple deliverables, revenue is recognized upon the delivery of the separate elements and when system acceptance has occurred or we are otherwise released from our system acceptance obligations.

In the first quarter of 2011, we adopted Accounting Standard Update (“ASU”) No. 2009-13, Revenue Recognition ("Topic 605") - Multi-Deliverables Revenue Arrangements, a Consensus of the FASB Emerging Issues Task Force on a prospective basis for applicable transactions originating or materially modified on or subsequent to January 1, 2011. The new standard changed the requirements for establishing separate units of accounting in a multiple element arrangement and requires the allocation of arrangement consideration to each deliverable to be based on the relative selling price. Implementation of this new authoritative guidance had an insignificant impact on reported revenue as compared to revenue under previous guidance, as the new guidance did not change the units of accounting within sales arrangements and the elimination of the residual method for the allocation of arrangement consideration had an insignificant impact on the amount and timing of reported revenue.

For multiple element arrangements entered into or materially modified on or subsequent to January 1, 2011, the total consideration for an arrangement is allocated among the separate elements in the arrangement based on a selling price hierarchy. The selling price hierarchy for a deliverable is based on (i) vendor specific objective evidence ("VSOE"); if available; (ii) third party evidence of selling price if VSOE is not available; or (iii) an estimated selling price, if neither VSOE nor third party evidence is available. If we have not established VSOE and cannot obtain third party evidence of selling price, we determine our estimate of the relative selling price by considering our production costs and historical margins of similar products or services. We believe this best represents the price at which we would transact a sale if the product or service were sold on a stand-alone basis. We regularly review the method used to determine our relative selling price and update any estimates accordingly. We limit the amount of revenue recognized for delivered elements to the amount that is not contingent on the future delivery of products or services or other future performance obligations.

For multiple element arrangements entered into prior to January 1, 2011, revenue is allocated among the separate accounting units based on the residual method under which the revenue is allocated to undelivered elements based on fair value of such undelivered elements and the residual amounts of revenue are allocated to delivered elements, provided the delivered elements have value on a stand alone basis, there is objective and reliable evidence of fair value for the undelivered elements, the arrangement does not include a general right of return relative to the delivered item and delivery or performance of the undelivered item(s) is considered probable and substantially in our control. The maximum revenue recognized on a delivered element is limited to the amount that is not contingent upon the delivery of additional items.

We generally recognize revenue from spare parts sales upon shipment, as our products are generally sold on terms that transfer title and risk of ownership when it leaves our site. We sell service contracts for which revenue is deferred and recognized ratably over the contract period (for time-based service contracts) or as service hours are delivered (for contracts based on a purchased quantity of hours). We recognize license revenue from transactions in which our systems are re-sold by our customers to third parties, as well as from royalty arrangements.

Costs related to deferred product revenues are capitalized (deferred) and recognized at the time of revenue recognition. Deferred product revenue and costs are netted on our balance sheet, under the caption “deferred product and services income.” The gross amount of deferred revenues and deferred costs at September 29, 2012 were $32.3 million and $10.6 million, respectively, as compared to $20.7 million and $5.7 million, respectively, at December 31, 2011.

Costs incurred for shipping and handling are included in cost of sales.

Other Assets

Included in other assets at September 29, 2012 is restricted cash in the amount of $0.2 million. The restricted cash is in the form of an interest bearing account. Our obligation will be released upon the completion of our warranty obligation for a certain customer.

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Condensed Consolidated Statements of Operations (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 29, 2012	Oct. 01, 2011	Sep. 29, 2012	Oct. 01, 2011
Net sales:
Products	$ 56,242	$ 49,283	$ 154,870	$ 140,736
Services	3,652	5,361	13,061	14,786
Licenses	653	300	1,303	750
Total net sales	60,547	54,944	169,234	156,272
Cost of sales:
Cost of products sold	22,844	21,935	64,825	64,013
Cost of services	3,534	3,614	9,801	11,671
Total cost of sales	26,378	25,549	74,626	75,684
Gross profit	34,169	29,395	94,608	80,588
Operating expenses:
Research, development, and engineering	7,745	6,349	22,280	17,832
Selling, general, and administrative	11,469	11,484	32,938	32,301
Operating income	14,955	11,562	39,390	30,455
Interest expense	(1)	(4)	(6)	(16)
Interest and other income, net	126	(74)	208	40
Income before income tax	15,080	11,484	39,592	30,479
Provision for income taxes	2,638	1,020	5,779	2,420
Net income	$ 12,442	$ 10,464	$ 33,813	$ 28,059
Net income per share - basic (in dollars per share)	$ 0.46	$ 0.40	$ 1.27	$ 1.09
Number of shares used in per share computations - basic (in shares)	27,047	25,977	26,635	25,678
Net income per share - diluted (in dollars per share)	$ 0.45	$ 0.39	$ 1.23	$ 1.05
Number of shares used in per share computations - diluted (in shares)	27,777	26,647	27,481	26,620

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Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Sep. 29, 2012

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive loss, net of tax, is comprised of the following items:

(In thousands)	September 29, 2012			December 31, 2011
Unrealized gain (loss) on available-for-sale investments	$	5		$	(30	)
Change in minimum postretirement medical obligation	(61		)	(69		)
Accumulated other comprehensive loss at end of period	$	(56	)	$	(99	)

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Document And Entity Information	9 Months Ended
	Sep. 29, 2012
Entity Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 29, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q3
Entity Registrant Name	ULTRATECH INC
Entity Central Index Key	0000909791
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding	27,021,299

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Employee Benefit Plans

9 Months Ended

Sep. 29, 2012

Compensation Related Costs [Abstract]

Employee Benefit Plans

Employee Benefit Plans

Employee bonus plans

We currently sponsor an executive incentive bonus plan that distributes employee awards based on the achievement of predetermined targets. We recorded charges of $1.4 million and $4.0 million under this bonus plan for the three and nine month periods ended September 29, 2012, respectively, as compared to $0.8 million and $2.6 million for the corresponding periods of 2011, respectively.

Employee savings and retirement plans

We sponsor a 401(k) employee salary deferral plan that allows voluntary contributions by all full-time employees up to the Internal Revenue Service limits of their pretax earnings. We may also make matching contributions to this plan at our discretion. Employees are eligible for the matching plan if they contribute at least 2% of their compensation. Our contributions, when made, are limited to a maximum of 3% of the employee's compensation if the company exceeds certain income levels.

We contributed $0.1 million and $0.5 million to this plan for each of the three and nine month periods ended September 29, 2012, respectively. For the three and nine month periods ended October 1, 2011, we contributed $0.2 million and $0.5 million respectively.

We also sponsor an executive non-qualified deferred compensation plan (the “Plan”) that allows qualifying executives to defer current cash compensation. As of September 29, 2012, Plan assets of $1.6 million, representing the cash surrender value of life insurance policies held by us and liabilities of $1.9 million were included in our Consolidated Balance Sheets under the captions “Other assets” and “Other liabilities”, respectively. The related Plan expenses for each of the three and nine month periods ended September 29, 2012 and October 1, 2011 were insignificant.

Postretirement benefits

We have committed to providing and fully paying for lifetime postretirement medical and dental benefits to our Chief Executive Officer and Chief Financial Officer and their spouses, commencing after retirement. We recorded net periodic benefit costs of an insignificant amount for the three and nine month periods ended September 29, 2012 and October 1, 2011, respectively.

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Condensed Consolidated Statement of Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 29, 2012	Oct. 01, 2011	Sep. 29, 2012	Oct. 01, 2011
Net income	$ 12,442	$ 10,464	$ 33,813	$ 28,059
Other comprehensive income, net of tax:
Unrealized gain (loss) on available-for-sale investments	75	(30)	35	38
Change in minimum postretirement medical obligation	2	1	8	5
Total comprehensive income	77	(29)	43	43
Total comprehensive income	$ 12,519	$ 10,435	$ 33,856	$ 28,102

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Derivative Instruments and Hedging

9 Months Ended

Sep. 29, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging

Derivative Instruments and Hedging

The majority of our revenue, expense and capital purchasing activities are transacted in U.S. dollars. However, we also enter into these transactions in other currencies, primarily Japanese yen as we have direct sales operations in Japan and orders are often denominated in Japanese yen. This subjects us to a higher degree of risk from currency exchange rate fluctuations.

Our policy is to minimize foreign currency denominated transaction and remeasurement exposure with derivative instruments, mainly forward contracts. We enter into foreign currency forward contracts that generally have maturities of nine months or less. The gains and losses on these derivatives are intended to mitigate the translation gains and losses recognized in earnings. We do not enter into foreign exchange forward contracts for speculative purposes.

Under ASC Topic 815, Derivatives and Hedging (“ASC 815”), all derivatives are recorded on the balance sheet at fair value. The gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. All of our derivatives are designated as hedging instruments under ASC 815. The fair value of derivative instruments recorded in our Condensed Consolidated Balance Sheets is as follows:

	Derivatives
		Fair Value as of
(In thousands)	Balance Sheet Location	September 29, 2012			December 31, 2011
Foreign exchange contracts	Other current assets	$	8		$	3
	Other current liabilities	(19		)	(1		)
Total derivatives		$	(11	)	$	2

Our derivative financial instruments are subject to both credit and market risk. Credit risk is the risk of loss due to failure of a counterparty to perform its obligations in accordance with contractual terms. Market risk is the potential change in an investment’s value caused by fluctuations in interest and currency exchange rates, credit spreads or other variables. We monitor the credit-worthiness of the financial institutions that are counterparties to our derivative financial instruments and do not consider the risks of counterparty nonperformance to be material. Credit and market risks, as a result of an offset by the underlying assets being hedged, related to derivative instruments were not considered material at September 29, 2012 and December 31, 2011.

Fair Value Hedging

We manage the foreign currency risk associated with Japanese yen denominated assets and liabilities using foreign exchange forward contracts. The change in fair value of these derivatives is recognized as a component of interest and other income (expense), net and is intended to offset the remeasurement gains and losses associated with the non-functional currency denominated assets and liabilities. At September 29, 2012, we had one currency buy-forward contract for the purchase of 77.4 million Japanese yen, or approximately $1.0 million and one currency sell-forward contract for the sale of 31.2 million Japanese yen, or approximately $0.4 million. The fair value of derivatives classified as balance sheet hedges at September 29, 2012 and December 31, 2011, respectively, was insignificant. The following sets forth the effect of the derivative instruments on our Condensed Consolidated Statements of Operations for the three and nine month periods ended September 29, 2012 and October 1, 2011, respectively:

		Amount of Loss Recognized in Income on Derivatives During
Derivatives in ASC 815 Fair Value Hedging Relationship	Location of Loss Recognized in Income on Derivatives	The three months ended, September 29, 2012 (in thousands)			The nine months ended, September 29, 2012 (in thousands)
Foreign exchange contracts	Interest and other income (expense), net	$	(8	)	$	(13	)
		Amount of Gain (Loss) Recognized in Income on Derivatives During
Derivatives in ASC 815 Fair Value Hedging Relationship	Location of Gain (Loss) Recognized in Income on Derivatives	The three months ended, October 1, 2011 (in thousands)			The nine months  ended, October 1, 2011 (in thousands)
Foreign exchange contracts	Interest and other income (expense), net	$	(3	)	$	22

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Investments

9 Months Ended

Sep. 29, 2012

Investments, Debt and Equity Securities [Abstract]

Investments

Investments

We classified all of our investments as “available for sale” as of September 29, 2012 and December 31, 2011. Accordingly, we state our investments at estimated fair value. Fair values are determined based on quoted market prices or pricing models using current market rates. We deem all investments to be available to meet current working capital requirements. The cost of securities sold was determined based on the specific identification method.

The following table summarizes our investments:

	September 29, 2012								December 31, 2011
	Amortized Cost		Accumulated Other Comprehensive Income				Estimated Fair  Value		Amortized Cost		Accumulated Other Comprehensive Income				Estimated Fair  Value
Available-for-sale securities (in thousands)			Gains		Losses						Gains		Losses
Commercial paper	$	17,997	$	—	$	—	$	17,997	$	9,996	$	—	$	—	$	9,996
Money market funds	5,318		—		—		5,318		6,706		—		—		6,706
U.S. corporate debt securities	—		—		—		—		1,441		—		1		1,440
U.S. treasury bills and notes	4,022		4		—		4,026		3,908		5		—		3,913
Securities and obligations of U.S. government agencies	198,546		60		59		198,547		162,703		37		71		162,669
Total	$	225,883	$	64	$	59	$	225,888	$	184,754	$	42	$	72	$	184,724

The following table identifies the balance sheet classifications of our investments at September 29, 2012 and December 31, 2011:

(In thousands)	September 29, 2012		December 31, 2011
Cash equivalents	$	19,317	$	15,557
Short-term investments	206,571		169,167
Investments, at estimated fair value	$	225,888	$	184,724

The gross amortized cost and estimated fair value of our investments at September 29, 2012 and December 31, 2011, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties.

	September 29, 2012				December 31, 2011
(In thousands)	Gross Amortized Cost		Fair Value		Gross Amortized Cost		Fair Value
Due in one year or less	$	169,310	$	169,302	$	153,346	$	153,328
Due after one year through five years	56,573		56,586		31,408		31,396
Total	$	225,883	$	225,888	$	184,754	$	184,724

The following table provides the breakdown of the cash equivalents and investments with unrealized losses at September 29, 2012:

	In Loss Position for Less Than 12 Months				Total
(In thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Securities and obligations of U.S. government agencies	28,508		59		28,508		59
Total	$	28,508	$	59	$	28,508	$	59

The following table provides the breakdown of the cash equivalents and investments with unrealized losses at December 31, 2011:

	In Loss Position for Less Than 12 Months				Total
(In thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
U.S. Corporate debt securities	$	1,440	$	1	$	1,440	$	1
Securities and obligations of U.S. government agencies	28,173		71		28,173		71
Total	$	29,613	$	72	$	29,613	$	72

We review our investment portfolio regularly for impairment. A security is considered impaired when its fair value is less than its cost basis. If we intend to sell an impaired debt security or it is more likely than not that we will be required to sell it prior to recovery of its amortized cost basis, an other-than-temporary-impairment (“OTTI”) is deemed to have occurred. In these instances, the OTTI loss is recognized in earnings equal to the entire difference between the debt security’s amortized cost basis and its fair value at the balance sheet date.

If we do not intend to sell an impaired debt security and it is not more likely than not that we will be required to sell it prior to recovery of its amortized cost basis, we must determine whether it will recover its amortized cost basis. If we conclude it will not, a credit loss exists and the resulting OTTI is separated into:

• The amount representing the credit loss, which is recognized in earnings, and

• The amount related to all other factors, which is recognized in other comprehensive income.

As part of this assessment we will consider the various characteristics of each security, including, but not limited to the following: the length of time and the extent to which the fair value has been less than the amortized cost basis; adverse conditions specifically related to the security, an industry, or a geographic area; the payment structure of the debt security; failure of the issuer of the security to make scheduled interest or principal payments; any changes to the rating of the security by a rating agency and related outlook or status; recoveries or additional declines in fair value subsequent to the balance sheet date. The relative importance of this information varies based on the facts and circumstances surrounding each security, as well as the economic environment at the time of assessment.

We have not recorded any OTTI of our investments for the three and nine month periods ended September 29, 2012 and October 1, 2011.

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Stock-Based Compensation (Tables)

9 Months Ended

Sep. 29, 2012

Share-based Compensation [Abstract]

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs

Stock-based compensation expense recognized under ASC Topic 718, Compensation – Stock Compensation (“ASC 718”), for employees and directors and the effect on our Condensed Consolidated Statements of Operations were as follows:

	Three Months Ended				Nine Months Ended
(In thousands)	September 29, 2012		October 1, 2011		September 29, 2012		October 1, 2011
Cost of sales	$	179	$	119	$	430	$	320
Research, development, and engineering	492		434		1,231		1,050
Selling, general and administrative expenses	2,683		2,105		6,718		4,820
Total stock-based compensation expense	$	3,354	$	2,658	$	8,379	$	6,190

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

We used the following weighted-average assumptions to estimate the fair value of our stock options granted during the three and nine month periods ended September 29, 2012 and October 1, 2011, respectively:

	Three Months Ended		Nine Months Ended
	September 29, 2012	October 1, 2011	September 29, 2012	October 1, 2011
Expected life (in years)	8.4	7.9	7.7993150685	8.2
Risk-free interest rate	1.3%	2.6%	1.4%	3.0%
Volatility	49%	49%	48%	48%
Dividend yield	—	—	—	—

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Income Taxes

9 Months Ended

Sep. 29, 2012

Income Tax Expense (Benefit) [Abstract]

Income Taxes

Income Taxes

For the three and nine month periods ended September 29, 2012, we recorded income tax provisions of $2.6 million and $5.8 million, respectively as compared to $1.0 million and $2.4 million for the comparable periods in 2011. The income tax provision recognized for the nine month period ended September 29, 2012 resulted primarily from U.S. federal, state and foreign income taxes.

In accordance with FASB ASC Topic 740, Income Taxes (“ASC 740”), we had unrecognized tax benefits of $5.5 million as of December 31, 2011. We continue to recognize interest and penalties as a component of the income tax provision. If we are able to eventually recognize these uncertain tax positions, $5.5 million of our unrecognized benefit would reduce the effective tax rate. Over the next twelve months, we expect an insignificant decline in liabilities associated with our uncertain tax positions as a result of expiring statutes of limitations.

We currently have a full valuation allowance against our U.S. net deferred tax asset. We continue to monitor the relative weight of positive and negative evidence of future profitability in relevant jurisdictions. As of September 29, 2012, we have experienced historical profitability. However, as of September 29, 2012, we have determined that the following negative evidence outweighs the positive evidence such that it is not more likely than not the Company will generate sufficient taxable income in the relevant jurisdictions to utilize our deferred tax assets and release the associated valuation allowance:

• Movement of certain product manufacturing to Singapore, resulting in reduced U.S. taxable income,

• Inherent earnings volatility of our industry resulting in our inability to forecast long term earnings, and

• Usage limitations resulting in a longer period being required to realize our deferred tax assets.

It is possible that sometime in the next 12 months the positive evidence will be sufficient to release a material amount of our valuation allowance; however there is no assurance that this will occur.

As a result of our analysis, we concluded that it is more likely than not that, as of September 29, 2012, our net deferred tax assets will not be realized, with the exception of those in Japan and Taiwan. Therefore, we continue to provide a full valuation allowance against net deferred tax assets outside of Japan and Taiwan. We closely monitor available evidence, and as noted above, may release some or all of the valuation allowance in future periods.

We are subject to federal and state tax examinations for years 1999 forward and 1997 forward, respectively, by virtue of the tax attributes carrying forward from those years. We are also subject to audits in the foreign jurisdictions in which we operate for years 2004 and forward. There are no material income tax audits currently in progress as of September 29, 2012.

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Current Liabilities

9 Months Ended

Sep. 29, 2012

Accounts Payable and Accrued Liabilities, Current [Abstract]

Current Liabilities

Current Liabilities

Deferred Services Revenue

A portion of our revenue is generated from service contracts. Payments from certain of these service contracts are collected in advance. As such, revenues from these service contracts are deferred and recognized ratably over the contract period for time-based service contracts, or as service hours are delivered for contracts based on a purchased quantity of hours. Changes in our deferred service revenue are as follows:

	Three Months Ended						Nine Months Ended
(In thousands)	September 29, 2012			October 1, 2011			September 29, 2012			October 1, 2011
Balance, beginning of the period	$	5,602		$	4,717		$	4,991		$	2,903
Additions	1,478			1,374			5,332			6,585
Revenue recognized	(1,153		)	(1,362		)	(4,396		)	(4,759		)
Balance, end of the period	$	5,927		$	4,729		$	5,927		$	4,729
Balance sheet classification
Deferred service income-short term	$	4,636		$	3,360
Deferred service income-long term	1,291			1,369
Balance, end of period	$	5,927		$	4,729

Other current liabilities

Other current liabilities consist of the following:

(In thousands)	September 29, 2012		December 31, 2011
Salaries and benefits	$	9,762	$	10,023
Warranty accrual	2,785		2,398
Advanced billing	411		5,809
Accrued taxes-other	591		1,729
Capital lease, current portion	45		176
Other	2,201		2,238
Balance, end of the period	$	15,795	$	22,373

Warranty Accrual

We generally warrant our new and refurbished products for material and labor to repair the product for periods of twelve months and three months, respectively, from the date of system acceptance. Accordingly, an accrual for the estimated cost of the warranty is recorded at the time the product is shipped. Extended warranty terms, if granted, result in deferral of revenue equating to our standard pricing for similar service contracts. Recognition of the related warranty cost is deferred until product revenue is recognized. Factors that affect our warranty liability include the number of installed units, historical and anticipated rates of warranty claims and cost per claim. We periodically assess the adequacy of our recorded warranty liabilities and adjust the amounts as necessary. We believe our warranty accrual, as of September 29, 2012, is sufficient to satisfy outstanding obligations as of that date. Changes in our warranty accrual are as follows:

	Three Months Ended						Nine Months Ended
(In thousands)	September 29, 2012			October 1, 2011			September 29, 2012			October 1, 2011
Balance, beginning of the period	$	2,795		$	2,674		$	2,398		$	2,111
Liabilities accrued for warranties issued	730			545			2,797			2,313
Warranty claims paid and utilized	(793		)	(529		)	(2,075		)	(1,633		)
Changes in accrued warranty liabilities	53			(414		)	(335		)	(515		)
Balance, end of the period	$	2,785		$	2,276		$	2,785		$	2,276

Advanced Billings

On occasion, we require, or our customers pay, a deposit in advance of order shipment. These amounts are classified as advanced billings until the related order ships. The balance of $0.4 million of advanced billings was from multiple customers as of September 29, 2012. There were $5.8 million of advance payments received as of December 31, 2011.

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Inventories, net

9 Months Ended

Sep. 29, 2012

Inventory Disclosure [Abstract]

Inventories, net

Inventories, net

Inventories consist of the following:

(In thousands)	September 29, 2012		December 31, 2011
Raw materials	$	21,273	$	17,373
Work-in-process	13,969		12,404
Finished products	12,504		11,508
Balance, end of the period	$	47,746	$	41,285

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Notes Payable

9 Months Ended

Sep. 29, 2012

Line of Credit Facility [Abstract]

Notes Payable

Notes Payable

We have a line of credit agreement with a brokerage firm. Under the terms of this agreement, we may borrow funds at a cost equal to the current Federal funds open rate plus 125 basis points (approximately1.3% as of September 29, 2012). Funds are advanced to us under this facility based on pre-determined advance rates on the cash and securities held by us in this brokerage account. Under this facility, we may borrow up to 75% of our total cash, cash equivalents and investments balance in this brokerage account with no restriction in the use of those assets. This agreement has no set expiration date and there are no loan covenants, other than the aforementioned collateral requirement. As of September 29, 2012 and as of December 31, 2011, $1.0 million and $1.0 million, respectively, were outstanding under this facility, with a related collateral requirement of approximately $1.3 million and $1.3 million, respectively, of our cash, cash equivalents and investments.

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Other Liabilities

9 Months Ended

Sep. 29, 2012

Other Liabilities Disclosure [Abstract]

Other Liabilities

Other Liabilities

Other liabilities consist of the following:

(In thousands)	September 29, 2012		December 31, 2011
Long-term income taxes payable	$	7,805	$	2,344
Asset retirement obligation	2,012		1,925
Deferred compensation	1,942		1,120
Deferred service income-long term	1,291		1,458
Postretirement medical obligation	909		909
Deferred rent	140		—
Other	225		357
Balance, end of the period	$	14,324	$	8,113

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Stock-Based Compensation Weighted Average Assumptions (Details)	3 Months Ended		9 Months Ended
	Sep. 29, 2012	Oct. 01, 2011	Sep. 29, 2012	Oct. 01, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life (in years)	8 years 4 months 24 days
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life (in years)	8 years 4 months 24 days	7 years 10 months 24 days	7 years 9 months 18 days	8 years 2 months 12 days
Risk-free interest rate	1.30%	2.60%	1.40%	3.00%
Volatility factor	49.00%	49.00%	48.00%	48.00%
Dividend yield	0.00%	0.00%	0.00%	0.00%

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Employee Benefit Plans (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 29, 2012	Oct. 01, 2011	Sep. 29, 2012	Oct. 01, 2011	Dec. 31, 2011
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Bonus compensation	$ 1,400,000	$ 800,000	$ 4,000,000	$ 2,600,000
Non-qualified deferred compensation plan liabilities	1,942,000		1,942,000		1,120,000
Defined Contribution Pension
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
401(k) Plan, maximum annual employer contribution percent per employee			3.00%
401(k) Plan, employer contribution	100,000	200,000	500,000	500,000
Deferred Compensation, Excluding Share-based Payments and Retirement Benefits
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Non-qualified deferred compensation plan assets	1,600,000		1,600,000
Non-qualified deferred compensation plan liabilities	$ 1,900,000		$ 1,900,000
Minimum | Defined Contribution Pension
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
401(k) Plan, employee minimum contribution percent qualifying for company match			2.00%

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Commitments And Contingencies

9 Months Ended

Sep. 29, 2012

Commitments and Contingencies Disclosure [Abstract]

Commitments And Contingencies

Commitments and Contingencies

Commitments

In March 2010, the Company entered into a building lease agreement (the "Original Lease") in preparation for the expansion of our manufacturing operations in Singapore. The initial term of the lease is three years, and the lease is accounted for as an operating lease.

On August 15, 2012, Ultratech SE Asia PTE, Ltd (“Singapore SE”), an indirect wholly-owned subsidiary of Ultratech, Inc., renegotiated the Original Lease and entered into a new lease (the “New Singapore Lease”) with Ascendas Services Pte Ltd, (“Ascendas”), effective June 15, 2013. The New Singapore Lease governs the terms and conditions under which Singapore SE leases certain premises from Ascendas located at 1 Kaki Bukit View, Singapore. The New Singapore Lease extended the term of the Original Lease such that it expires on June 14, 2018 and sets forth the revised base rent for each of the years covered.

The table below summarizes our operating lease commitments as of September 29, 2012.

In thousands	Operating Leases
For the years:
Remainder of 2012	618
2013	2,487
2014	2,481
2015	2,339
2016	740
Thereafter	883
Total minimum lease payments	9,548

In July 2007, we capitalized a five-year lease agreement for a new phone system recorded as office equipment. The amortization of this phone system is included with depreciation expense.

In August 2008 and December 2009, we entered into agreements with a leasing company for the sale and leaseback of certain assets for an initial term of 4years. The sale prices of these items were $6.8 million and $5.4 million in 2008 and 2009, respectively. There was no gain or loss from these transactions. Under these sale-leaseback arrangements, we have an option to purchase the assets back at the future current fair market value upon the expiration of the leases in 2012 and 2013, respectively. These leases are classified as operating leases in accordance with ASC Topic 840, Leases. In January 2009, we bought back assets with values totaling $1.3 million. We did not buy back any assets during the three and nine month periods ended September 29, 2012. In April 2010, we bought back an asset with a value of $1.2 million. As of September 29, 2012, the minimum future lease payments to be made under these agreements were $2.3 million.

On May 10, 2012, we entered into a lease extension for the August 2008 transaction. The twenty-seven month extension is valued at $2.0 million and will expire on August 14, 2014.

Legal Proceedings

Ultratech, Inc. is a defendant in Dennis Rice v. Ultratech, Inc., et al., a class action lawsuit commenced on June 14, 2012 in the Superior Court of California, County of Santa Clara. The plaintiff alleges that the proposal in our proxy seeking approval to increase the authorized shares of common stock from 40 million to 80 million was misleading and incomplete and that the directors violated their fiduciary duties by making these misleading disclosures. The plaintiff sought to enjoin the stockholders’ vote on this proposal. On July 16, 2012, the Court held a hearing on plaintiff’s motion for a preliminary injunction and issued an order denying the plaintiff’s motion. After plaintiff’s motion for an injunction was denied, plaintiff indicated it intended to file an amended complaint, and the amended complaint was filed on October 24, 2012. The amended complaint asserts the same causes of action, against the same defendants, as the original complaint, but adds a few new allegations regarding the process by which the proxy was approved. We believe the action is without merit and we plan a vigorous defense.

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Investments (Tables)

9 Months Ended

Sep. 29, 2012

Investments, Debt and Equity Securities [Abstract]

Available-for-sale Securities

The following table summarizes our investments:

	September 29, 2012								December 31, 2011
	Amortized Cost		Accumulated Other Comprehensive Income				Estimated Fair  Value		Amortized Cost		Accumulated Other Comprehensive Income				Estimated Fair  Value
Available-for-sale securities (in thousands)			Gains		Losses						Gains		Losses
Commercial paper	$	17,997	$	—	$	—	$	17,997	$	9,996	$	—	$	—	$	9,996
Money market funds	5,318		—		—		5,318		6,706		—		—		6,706
U.S. corporate debt securities	—		—		—		—		1,441		—		1		1,440
U.S. treasury bills and notes	4,022		4		—		4,026		3,908		5		—		3,913
Securities and obligations of U.S. government agencies	198,546		60		59		198,547		162,703		37		71		162,669
Total	$	225,883	$	64	$	59	$	225,888	$	184,754	$	42	$	72	$	184,724

Fair Value, by Balance Sheet Grouping

The following table identifies the balance sheet classifications of our investments at September 29, 2012 and December 31, 2011:

(In thousands)	September 29, 2012		December 31, 2011
Cash equivalents	$	19,317	$	15,557
Short-term investments	206,571		169,167
Investments, at estimated fair value	$	225,888	$	184,724

Investments Classified by Contractual Maturity Date

The gross amortized cost and estimated fair value of our investments at September 29, 2012 and December 31, 2011, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties.

	September 29, 2012				December 31, 2011
(In thousands)	Gross Amortized Cost		Fair Value		Gross Amortized Cost		Fair Value
Due in one year or less	$	169,310	$	169,302	$	153,346	$	153,328
Due after one year through five years	56,573		56,586		31,408		31,396
Total	$	225,883	$	225,888	$	184,754	$	184,724

Schedule of Temporary Impairment Losses, Investments

The following table provides the breakdown of the cash equivalents and investments with unrealized losses at September 29, 2012:

	In Loss Position for Less Than 12 Months				Total
(In thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Securities and obligations of U.S. government agencies	28,508		59		28,508		59
Total	$	28,508	$	59	$	28,508	$	59

The following table provides the breakdown of the cash equivalents and investments with unrealized losses at December 31, 2011:

	In Loss Position for Less Than 12 Months				Total
(In thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
U.S. Corporate debt securities	$	1,440	$	1	$	1,440	$	1
Securities and obligations of U.S. government agencies	28,173		71		28,173		71
Total	$	29,613	$	72	$	29,613	$	72

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Other Liabilities (Details) (USD $) In Thousands, unless otherwise specified	Sep. 29, 2012	Dec. 31, 2011
Other Liabilities Disclosure [Abstract]
Deferred Rent Credit, Noncurrent	$ 140	$ 0
Deferred compensation	1,942	1,120
Long-term income taxes payable	7,805	2,344
Deferred service income-long term	1,291	1,458
Asset retirement obligation	2,012	1,925
Postretirement medical obligation	909	909
Other Liabilities, Noncurrent Other	225	357
Balance, end of the period	$ 14,324	$ 8,113	[1]

[1] The Balance Sheet as of December 31, 2011 has been derived from the audited financial statements at that date.

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Derivative Instruments and Hedging - Derivatives Balance Sheet Location (Details) (Foreign Exchange Contract, Designated as Hedging Instrument, USD $) In Thousands, unless otherwise specified	Sep. 29, 2012	Dec. 31, 2011
Derivative, Fair Value, Net [Abstract]
Total derivatives	$ (11)	$ 2
Other Current Assets
Derivative, Fair Value, Net [Abstract]
Foreign exchange contracts, other current assets	8	3
Other Current Liabilities
Derivative, Fair Value, Net [Abstract]
Foreign exchange contracts, other current liabilities	$ (19)	$ (1)

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Condensed Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 29, 2012		Oct. 01, 2011
Cash flows from operating activities:
Net income	$ 33,813		$ 28,059
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation	3,625		3,096
Amortization	214		53
Accretion of asset retirement obligations	87		82
Gain on disposal of equipment	5		(4)
Stock-based compensation	8,379		6,190
Deferred income taxes	0		(17)
Changes in operating assets and liabilities:
Accounts receivable	6,180		(2,065)
Inventories	(6,511)		(11,527)
Prepaid expenses and other current assets	292		(484)
Other assets	(929)		1,297
Accounts payable	4,549		2,496
Deferred product and services income	6,714		(3,453)
Other current liabilities	(6,578)		2,455
Other liabilities	6,123		3,601
Net cash provided by operating activities	55,963		29,779
Cash flows from investing activities:
Capital expenditures	(6,198)		(3,020)
Purchase of patents	(8,000)		0
Purchase of investments in securities	(266,225)		(157,685)
Proceeds from maturities of investments	228,925		120,320
Net cash used in investing activities	(51,498)		(40,385)
Cash flows from financing activities:
Proceeds from notes payable	3,000		10,000
Repayment of notes payable	(3,000)		(12,000)
Proceeds from issuance of common stock for stock option exercises	15,372		12,980
Tax payment for issuance of common stock from release of restricted stock units	(4,312)		(1,268)
Net cash provided by (used in) financing activities	11,060		9,712
Net decrease in cash and cash equivalents	15,525		(894)
Cash and cash equivalents at beginning of period	58,780	[1]	63,626
Cash and cash equivalents at end of period	$ 74,305		$ 62,732

[1] The Balance Sheet as of December 31, 2011 has been derived from the audited financial statements at that date.

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Fair Value Measurements

9 Months Ended

Sep. 29, 2012

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Fair value is defined under ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”) as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820 describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following:

• Level 1 - Quoted prices for identical assets or liabilities in active markets.

• Level 2 - Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets.

• Level 3 - Model-derived valuations in which one or more significant inputs or significant value drivers are unobservable.

We measure certain financial assets and liabilities at fair value on a recurring basis, including available-for-sale securities and foreign currency derivatives. The fair value of these certain financial assets and liabilities was determined using the following inputs at September 29, 2012 and December 31, 2011, respectively:

	Fair Value Measurements at September 29, 2012 Using
(In thousands)	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Available-for-sale securities(1)
Commercial paper	$	17,997		$	—	$	17,997		$	—
Money market funds	5,318			5,318		—			—
U.S. treasury bills and notes	4,026			—		4,026			—
Securities and obligations of U.S. government agencies	198,547			—		198,547			—
	225,888			5,318		220,570			—
Foreign currency derivatives(2)	8			—		8			—
Foreign currency derivatives(3)	(19		)	—		(19		)	—
	$	225,877		$	5,318	$	220,559		$	—
	Fair Value Measurements at December 31, 2011 Using
(In thousands)	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Available-for-sale securities(1)
Commercial paper	$	9,996		$	—	$	9,996		$	—
Money market funds	6,706			6,706		—			—
U.S. corporate debt securities	1,440			—		1,440			—
U.S. treasury bills and notes	3,913			—		3,913			—
Securities and obligations of U.S. government agencies	162,669			—		162,669			—
	184,724			6,706		178,018			—
Foreign currency derivatives(2)	3			—		3			—
Foreign currency derivatives(3)	(1		)	—		(1		)	—
	$	184,726		$	6,706	$	178,020		$	—

________________ 

(1) Included in cash and cash equivalents and short-term investments on our condensed consolidated balance sheet. See “Investments” in Note 6 for further details.

(2) Included in other current assets on our condensed consolidated balance sheet. Consisted of forward foreign exchange contracts for the Japanese yen. See “Derivative Instruments and Hedging” in Note 7 for further details.

(3) Included in other current liabilities on our condensed consolidated balance sheet. Consisted of forward foreign exchange contracts for the Japanese yen. See “Derivative Instruments and Hedging” in Note 7 for further details.

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Derivative Instruments and Hedging (Tables)

9 Months Ended

Sep. 29, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The fair value of derivative instruments recorded in our Condensed Consolidated Balance Sheets is as follows:

	Derivatives
		Fair Value as of
(In thousands)	Balance Sheet Location	September 29, 2012			December 31, 2011
Foreign exchange contracts	Other current assets	$	8		$	3
	Other current liabilities	(19		)	(1		)
Total derivatives		$	(11	)	$	2

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The following sets forth the effect of the derivative instruments on our Condensed Consolidated Statements of Operations for the three and nine month periods ended September 29, 2012 and October 1, 2011, respectively:

		Amount of Loss Recognized in Income on Derivatives During
Derivatives in ASC 815 Fair Value Hedging Relationship	Location of Loss Recognized in Income on Derivatives	The three months ended, September 29, 2012 (in thousands)			The nine months ended, September 29, 2012 (in thousands)
Foreign exchange contracts	Interest and other income (expense), net	$	(8	)	$	(13	)
		Amount of Gain (Loss) Recognized in Income on Derivatives During
Derivatives in ASC 815 Fair Value Hedging Relationship	Location of Gain (Loss) Recognized in Income on Derivatives	The three months ended, October 1, 2011 (in thousands)			The nine months  ended, October 1, 2011 (in thousands)
Foreign exchange contracts	Interest and other income (expense), net	$	(3	)	$	22

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Investments Summary (Details) (USD $)	Sep. 29, 2012	Dec. 31, 2011
Schedule of Available-for-sale Securities [Line Items]
Cash equivalents and available-for-sale investments, amortized cost	$ 225,883,000	$ 184,754,000
Cash equivalents and available-for-sale investments, gains	64,000	42,000
Cash equivalents and available-for-sale securities, losses	59,000	72,000
Cash equivalents and available-for-sale investments, estimated fair value	225,888,000	184,724,000
Gross Amortized Cost and Estimated Fair Value of Investments
Due in one year or less, gross amortized cost	169,310,000	153,346,000
Due in one year or less, fair value	169,302,000	153,328,000
Due in one year through five years, gross amortized cost	56,573,000	31,408,000
Due after one year through five years, fair value	56,586,000	31,396,000
Total, amortized cost basis	225,883,000	184,754,000
Total, fair value	225,888,000	184,724,000
Commercial papers
Schedule of Available-for-sale Securities [Line Items]
Cash equivalents and available-for-sale investments, amortized cost	17,997,000	9,996,000
Cash equivalents and available-for-sale investments, estimated fair value	17,997,000	9,996,000
Gross Amortized Cost and Estimated Fair Value of Investments
Total, fair value	17,997,000	9,996,000
Money market funds
Schedule of Available-for-sale Securities [Line Items]
Cash equivalents and available-for-sale investments, amortized cost	5,318,000	6,706,000
Cash equivalents and available-for-sale investments, estimated fair value	5,318,000	6,706,000
Gross Amortized Cost and Estimated Fair Value of Investments
Total, fair value	5,318,000	6,706,000
U.S. corporate debt securities
Schedule of Available-for-sale Securities [Line Items]
Cash equivalents and available-for-sale investments, amortized cost	0	1,441,000
Cash equivalents and available-for-sale investments, estimated fair value	0	1,440,000
Gross Amortized Cost and Estimated Fair Value of Investments
Total, fair value	0	1,440,000
U.S. treasury bills and notes
Schedule of Available-for-sale Securities [Line Items]
Cash equivalents and available-for-sale investments, amortized cost	4,022,000	3,908,000
Cash equivalents and available-for-sale investments, estimated fair value	4,026,000	3,913,000
Gross Amortized Cost and Estimated Fair Value of Investments
Total, fair value	4,026,000	3,913,000
Securities and obligations of U.S. government agencies
Schedule of Available-for-sale Securities [Line Items]
Cash equivalents and available-for-sale investments, amortized cost	198,546,000	162,703,000
Cash equivalents and available-for-sale investments, estimated fair value	198,547,000	162,669,000
Gross Amortized Cost and Estimated Fair Value of Investments
Total, fair value	198,547,000	162,669,000
Accumulated other comprehensive income gains losses | Commercial papers
Schedule of Available-for-sale Securities [Line Items]
Cash equivalents and available-for-sale investments, gains	0	0
Cash equivalents and available-for-sale securities, losses	0	0
Accumulated other comprehensive income gains losses | Money market funds
Schedule of Available-for-sale Securities [Line Items]
Cash equivalents and available-for-sale investments, gains	0	0
Cash equivalents and available-for-sale securities, losses	0	0
Accumulated other comprehensive income gains losses | U.S. corporate debt securities
Schedule of Available-for-sale Securities [Line Items]
Cash equivalents and available-for-sale investments, gains	0	0
Cash equivalents and available-for-sale securities, losses	0	1,000
Accumulated other comprehensive income gains losses | U.S. treasury bills and notes
Schedule of Available-for-sale Securities [Line Items]
Cash equivalents and available-for-sale investments, gains	4,000	5,000
Cash equivalents and available-for-sale securities, losses	0	0
Accumulated other comprehensive income gains losses | Securities and obligations of U.S. government agencies
Schedule of Available-for-sale Securities [Line Items]
Cash equivalents and available-for-sale investments, gains	60,000	37,000
Cash equivalents and available-for-sale securities, losses	59,000	71,000
Cash Equivalents
Schedule of Available-for-sale Securities [Line Items]
Cash equivalents and available-for-sale investments, estimated fair value	19,317,000	15,557,000
Gross Amortized Cost and Estimated Fair Value of Investments
Total, fair value	19,317,000	15,557,000
Short-term Investments
Schedule of Available-for-sale Securities [Line Items]
Cash equivalents and available-for-sale investments, estimated fair value	206,571,000	169,167,000
Gross Amortized Cost and Estimated Fair Value of Investments
Total, fair value	$ 206,571,000	$ 169,167,000

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Intangibles Assets, net

3 Months Ended

Sep. 29, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Intangibles assets, net

Intangible Assets, net

On June 26, 2012, we entered into a patent assignment agreement with International Business Machines Corporation (“IBM”), a customer of ours. We acquired the rights to a collection of patents and patent applications from IBM, including patents and patent applications in packaging such as C4 bumping, Ball Grid Arrays, lead-free solders and 3D packaging. Representing both U.S. and foreign patents, the portfolio includes claims directed at methods of making, at compositions and at structures of semiconductor devices. We paid $8.0 million for the rights to the patents and patent applications.