Yesteerday's falls on NASDAQ didn't hold up the flotation of Nova, which succeeded in raising $54 million, at a company value of $270 million. The issue did go through, but market's bearish mood was reflected in the fact that the share price - $18 - was at the bottom of the price range set for the offering. Contrary to Nova, Camtek continues to cross bridges only when it reaches them and hope for better days. Camtek has been putting off its Wall Street issue in throughout the past week, due to NASDAQ's doldrums.
Nova, which develops systems for measuring silicon layers in the semi-conductor industry, is held by listed companies Clal Electronic (20%) Inventec (14.4%) and Teuza (13%). The company manufactures systems for real-time measuring of silicon layers, monitoring production processes, and providing the resolution, accuracy and speed required for the semi-conductor industry.
Nova's revenues increased from $23.3 million in 1998 to $27.6 million in 1999. Some 73% of its revenues in 1999 came from five major customers (down from 81% in 1998). Nova's customers include Hitachi, Intel, Micron, Motorola and others.
Despite an 18% increase in revenues, the company lost $5 million in 1999, compared to a profit of $1.4 million in 1998. The main reason was a $4 million one-off bonus given to company workers.
Clal Electronic, Inventec and Teuza will make hefty capital gains from Nova's issue. Clal Electronic's shares are worth $53 million, Inventech's $38.5 million and Teuza's close to $34 million. Under the terms of the issue, the shares are blocked for 180 days. In the meantime, each of the three has made tens of millions of dollars in profit - at least on paper.
Published by Israel's Business Arena on 11 April, 2000