Electro Scientific Industries (NASDAQ:ESIO) New Products to Drive Revenue

Although new products offered by Electro Scientific Industries (NASDAQ:ESIO) won't cause revenue to explode, it does offer a solid incremental growth narrative for the company.

Needham said, "The foundation business – DRAM repair and passive components equipment – appears to be on a solid upswing. We believe momentum remains strong in the newer areas of the business, including LED wafer scribing for low-brightness LEDs, and interconnect/micromachining (including the Apple business). We came away from the meeting more optimistic about ESIO's new-product initiatives, notably the advanced light output LED scriber and LED test and inspection system. As the new products begin adding incrementally to revenues in F12, we believe the stock will command a higher multiple."

Electro Scientific closed Friday at $13.69, losing $0.02, or 0.15 percent. Needham has a price target on them of $17 a share, while reiterating a "Buy" rating on the company.