Premium scientific & technical instruments company MKS Instruments, Inc. MKSI reported better-than-expected first-quarter 2016 earnings. Increased demand from semiconductor customers, strong 3D NAND business, greater innovation and product portfolio solidification supported the quarterly results.In the first quarter, adjusted earnings of 38 cents per share surpassed the Zacks Consensus Estimate of 33 cents. However, the bottom line declined 42.4% year over year. RevenuesNet sales plunged 14.1% year over year to $183.7 million. However, the top line beat the Zacks Consensus Estimate of $178 million.In the reported quarter, revenues from sale of Products came in at $153.6 million, while sales from Services amounted to $30.1 million. Products revenues represent 83.6% of the total revenue, while sales from Services account for the remainder.Margins/CostsMKS Instruments’ adjusted gross profit margin for the quarter deteriorated 300 basis points (bps) year over year to 42.4%. Selling, general and administrative expenses totaled $34 million, up 10% year over year. Research and development expenditure rose 3.3% year over year to $17.2 million. Adjusted operating margin was 14.6%, down from 23.1% recorded a year ago.Balance SheetMKS Instruments’ cash and cash equivalents at the end of the quarter were $357.9 million compared with $227.6 million at year-end 2015. At the end of the quarter, the company had total assets worth $1290.7 million as against $1273.3 million as of Dec 31, 2015.OutlookMKS Instruments expects favorable business environment at its end markets to drive growth going forward. The company expects to the close its Newport Corporation acquisition deal soon. The acquisition is expected to boost revenues in the upcoming quarters. Based on the current situation, the company anticipates sales of $185–$205 million and adjusted earnings of 41–54 cents per share in second-quarter 2016.Stocks to ConsiderMKS Instruments presently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include Brooks Automation, Inc. BRKS, Mattson Technology Inc. MTSN and Ultratech, Inc. UTEK. All the three companies currently hold a Zacks Rank #2 (Buy).Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BROOKS AUTOMATN (BRKS): Free Stock Analysis Report MATTSON TECH (MTSN): Free Stock Analysis Report MKS INSTRUMENTS (MKSI): Free Stock Analysis Report ULTRATECH STEP (UTEK): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research