LONDON Semiconductor metrology specialist Nova Measuring Instruments Ltd., is reducing its workforce by 8 percent, with research and development groups and production staff set to be the worst affected. It is taking a $300 000 charge in its fourth quarter because of the cutbacks.
Nova (Rehovoth, Israel) said the measures were necessary to "bring the organization into strategic balance" and added it would lead to savings of approximately $2 million in 2007.
According to an SEC filing at the end of 2005, the company had 240 employees, with about 60 percent of its sales in the U.S.
Gabi Seligsohn, President and CEO of Nova, said: "Recently, we have continued the localization initiative, which we began last year. This initiative involved increasing headcount for customer support and sales in specific regions and we are already witnessing the positive results it has generated, as evidenced by our business results in the first nine months of 2006."
Earlier this month, Nova reported its revenues in the third quarter rose 40 percent to $12.5 million compared with the same period last year, and an increase of $1.1 million or 9 percent over total revenues of $11.4 million reported for the second quarter of 2006.
The company reported a gross profit of $5.1 million compared with a gross profit of $3.4 million for the third quarter of 2005 and a gross profit of $5.0 million for the previous quarter.
Nova recently made changes to its management structure, and has also offered some of its technology patents up for license via auction.