Nova Measuring Instruments discloses cost reduction initiative
The reductions, which will come from all parts of the organization, will be mainly in R&D and operations, and will include management positions. As a result of the headcount reduction and realignment of several activities, the Company expects to generate cost savings of approximately $2 million in 2007. The company expects that its fourth quarter results will include a charge of approximately $0.3 million to cover termination expenses and other costs.
"Taking this action, although difficult, is important in order to bring the new organization into strategic balance," said Gabi Seligsohn, President and CEO of Nova. "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. Beyond the addition of people where needed, we have had to adjust to lower expenses in some other areas. This was done in order to fit to a new set of requirements, as we accelerate the penetration of our new offerings and begin developing our next generation of products. The new management team has acted as quickly as possible to complete this organizational realignment in order to reduce our breakeven point and accelerate the attainment of our business goals."
