Pandora Silver Bead - Z72 remainder

While this implies reduced level of overall wafer fab equipment purchases, given the lack of new fabs being opened, selective nature of spending creates a unique opportunity for NVMI on both of the product fronts.Customers can retrofit existing process tools, which were purchased for 65-nanometer technology Pandora Silver Bead - Z87 extend their capability down to 45 and 32 nanometers by measuring all wafers and adjusting process parameters on a wafer-by-wafer basis. They do this in order to meet tighter process window requirements. This is done on layers, which are considered critical. On less critical layers, customers can elect to use stand-alone product and sample 3-5 wafers out of every batch of 25, which still allows them sufficient information to be able to adjust process on a less frequent basis.

Another interesting trend Co. is seeing is that customers are upgrading older generation NVMI tools to later models and with Optical CD software.With active Pandora Silver Bead Treasure - Z73 base of over 500 300-millimeter tools, upgrades are becoming an interesting opportunity as well. Given revitalized increase in computer spending, has recently seen significant amount of orders from hard disk manufacturing facilities as well. With continued technological advances in hard disk space and competition it faces with solid state drive technology, more process monitoring become necessary.Addressable markets are growing. Now seeing proliferation of technology into more areas of fab beyond traditional CMP applications.Given capability of Optical CD to perform multiple layer analysis, can now provide process visualization in Lithography, Etch, CVD and CMP areas.

More advanced customers are feeding this information forwards and backwards to provide even tighter process control across fab. 8. Looking Pandora Silver Bead - Z72 remainder of year, significant increase in bookings will lead to stronger financial results in 2H09. Significant progress in all important elements. Increase in revenues is related mainly to market share gains in Optical CD stand-alone segment, and to slight yet encouraging improvement in revenues from services. As stated in May earnings call, larger portion of 2Q bookings was not yet delivered or recognized within 2Q09. Expects it to be delivered and recognized in 3Q09.Product revenues continued to come from East with Asia Pacific practically accounting for all product revenues during the quarters. Looking forward, based on qtr end backlog, expects US and Japan to start coming back as well.

On product revenue side, following stand-alone sales becoming a more significant portion of revenues, has witnessed significant increase in overall ASP.Pandora Silver Bead Hungry-Z70 enabled to maintain product GM at 56% levels similar to previous qtr.Service contracts revenues continued to decline, yet were more than compensated by time and materials revenues.In light of the fact that Co. further reduced global service costs by additional 9%, Co. was able to show major improvement in service GM QoverQ, from negative 10% in 1Q09 to positive 10% in 2Q09.In parallel to this improved financial performance, continued to maintain on-site presence at strategic customer sites in order to facilitate continued successful penetrations into these customers. Received supplier service awards from two of these strategic customers in recent months.