Nova Measuring Instruments, which develops testing systems for semiconductor manufacturing processes, today announced it had fired 15% of its 300 employees and lowered the salaries of the rest by 10%.
Nova Measuring Instruments implemented a number of preventative measures in recent months to stave off layoffs. The company adopted a four-day work week and reduced executive pay by 15%. It appears that the first quarter financial results, together with gloomy forecasts, led company management to decide that the current cutbacks were inescapable.
Nova Measuring Instruments’ first quarter revenue totaled $9.3 million, down 41% from the preceding quarter. The company lost $2.3 million compared with a $1.6 million profit in Q4 2000 and a $188,000 loss in the corresponding quarter last year.
Nova Measuring Instruments’ gross first quarter profit fell to 38%, compared with 51% in the preceding quarter. The decline in gross profit was due to lower orders by the company's customers in the semiconductor industry.
Investment bank Lehman Brothers included Nova Measuring Instruments in its recent recommendation advocating long-term investment in several Israeli companies with medium-sized valuations. The company's share is currently traded at $6, reflecting a company value of $87 million.
Nova Measuring Instruments said the company is taking a series of steps to reduce its losses during the current slowdown, while focusing efforts on advancing the production of new systems in advanced development stages. It added that it believes that the new measures, together with the recovery of the semiconductor industry, would return the company to profitability in 2002.
Published by Israel's Business Arena on June 14, 2001