CREDENCE SYSTEMS CORP
8-K, 1999-03-15
INSTRUMENTS FOR MEAS & TESTING OF ELECTRICITY & ELEC SIGNALS
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                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                 ---------------
                                    FORM 8-K
                                 CURRENT REPORT
                     Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934

                                 March 12, 1999
                Date of Report (Date of earliest event reported)



                          CREDENCE SYSTEMS CORPORATION
- --------------------------------------------------------------------------------
               (Exact name of registrant as specified in charter)



           Delaware                       0-22366               94-2878499   
- --------------------------------------------------------------------------------
        (State or other                 (Commission          (IRS Employer
 jurisdiction of incorporation)         File Number)       Identification No.)




    215 Fourier Avenue, Fremont, California                       94539        
- --------------------------------------------------------------------------------
   (Address of principal executive offices)                     (Zip Code)




Registrant's telephone number, including area code   (510) 657-7400    
                                                   --------------------



                                       N/A
- --------------------------------------------------------------------------------
         (Former name or former address, if changed since last report.)


<PAGE>


Item 5.  Other Events.

                  On March 12,  1999,  the  Registrant  issued an  aggregate  of
129,167 shares of its common stock in exchange for an aggregate of $3,500,000 of
its 5 1/4% Convertible Subordinated Notes due 2002. The Registrant may engage in
similar transactions in the future.





                                    SIGNATURE

                  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 hereunto duly authorized.



                                   CREDENCE SYSTEMS CORPORATION
                                           (Registrant)

Date:  March 12, 1999                 By:        /s/ DENNIS P. WOLF
                                               --------------------
                                      Name:    Dennis P. Wolf
                                      Title:   Chief Financial Officer




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