Nova fires 10% of staff

The company also recovered $3 million in ARS investments made by Credit Suisse.

Metrology solutions provider Nova Measuring Instruments Ltd. (Nasdaq:NVMI; TASE:NVMI) is the latest Israeli high-tech company to announce layoffs. Sources inform ''Globes'' that the company will fire 10% of its staff, about 30 people. Nova has 270 employees, including 170 in Israel. Earlier this year, the company fired 20 people.

Nova declined to comment on the report.

Nova's announcement comes one day after Amdocs Ltd. (NYSE: DOX) reportedly fired 3% of its global work force, including 200 employees in Israel.

In a separate development, the company announced the full recovery of its US$3 million Auction Rate Securities (ARS) investments, which were repurchased at full par value by the custodian, as part of a settlement. The company confirmed that Credit Suisse is the custodian. Nova expects to report in the fourth quarter a one-time income of $1.4 million from the settlement.

Nova is the latest Israeli company to reach a settlement with Credit Suisse on ARS investments, after Visonic Ltd. (LSE: VSC; TASE:VSC), IncrediMail Ltd. (Nasdaq:MAIL: TASE:MAIL). and Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA).

Nova added that it had $21 million in cash at the end of September. The share was unchanged at $0.80 in early trading on Nasdaq today, giving a market cap of $15 million. The share was also unchanged on the TASE.

Published by Globes [online], Israel business news - www.globes-online.com - on October 28, 2008

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

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