Nova Measuring Instruments Ltd. (Nasdaq:NVMI; TASE:NVMI) has received more than $10 million in orders to install its stand-alone CD metrology system at seven different customers, five of which are new stand-alone customers. The installations of the Nova T500 system will be completed by the end of September.
Nova designs and manufactures metrology systems for the manufacture of semiconductors. It produces both tests systems, which cost $250,000-300,000 each, that are integrated into other systems. It also produces stand-alone system at a cost of around $1 million each. The company also receives maintenance and service income for its systems.
Nova CEO Gabi Seligsohn told "Globes" about the uniqueness the company's systems. "The T500 is a platform that enables the replacement of the measuring instrument with new developed instruments. This is a very important upgrade, since systems cost hundreds of thousands of dollars apiece. These updates not only increase our revenue from post-sales services, but also the profit margins," he said.
Seligsohn added, "This is an important step for us, since five of the seven customers who worked with us with integrated systems are now buying the stand-alone systems. These seven customers account for about 70% of the top-20 semiconductor manufacturers wafer fab equipment spending, which gives us immense potential for next year."
Although Nova did not mention which customers bought the Nova T500, the company's customers include IBM Corporation (NYSE: IBM) and Samsung Electronics Co., Ltd. (KSX: 5930). Market sources believe that Nova has resumed sales to Toshiba Corporation (TSE: 6502; LSE: TOS), after a 10-year break.
Nova's share price opened today on Nasdaq at $3.96, giving a market cap of $79 million. The share price rose 1.6% on the TASE today to NIS 15.66.
Published by Globes [online], Israel business news - www.globes-online.com - on July 8, 2010
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