Nanometrics Slashes Number of Staff in Bid for Profitability

Nanometrics Incorporated, a leading supplier of advanced metrology equipment to the semiconductor industry, today announced it is reducing its global work force by approximately seven percent.  This reduction affects employees in each of the company’s locations worldwide and is aimed at achieving Nanometrics’ goals of improved profitability, cash flow and predictability.

The company will record approximately $600,000 in restructuring charges on its first quarter 2008 financials in connection with the reduction.

“While our longer-term outlook for the metrology sector is positive and we feel we are well-positioned in our served markets, we believe it is prudent to act in response to the softness currently seen in the semiconductor capital equipment industry,” commented Tim Stultz, president and chief executive officer of Nanometrics. “While this was a difficult decision for us to make, it came about as a result of our stated strategy to run our business with reduced sensitivity to revenue level. We expect the cost savings to be fully realized in our second quarter 2008 financial results.”

“We remain committed to investing in research and development activities and believe that our strong product offerings position Nanometrics to demonstrate continued solid performance in the process control market,” Dr. Stultz concluded.

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