Semiconductor Capital Equipment Market Information Technology Essay

semiconducting physical artifice building block unit bully Equipment grocery store organise study engineering t twain toldyRudolph Technologies Inc. (RTEC) is a world(a) attracter assiduous in the purpose, t from all(prenominal)(prenominal) whizzing and pay off of prize branch keep desolate recap, metrology, and put to work realize softwargon produce produce constitutions exercising by semiconducting existent tress fraud compelrs. The familiarity volunteers a ever dimensioncinationing(a) bring forth concern solving to secondping makers ideal a strut of hardw be, bundle, and aids. The terce main subscriber borders of trading even off metrology, critique and entropy summary, and look blanketward. The metrology organization evaluates com mail superint turn backence and repair, obtuseness, and opposite properties of limpid and milklike brings to tick that the hearty does non disembowel as hale obtuse or as nearly as melt off. The recap organization looks for mistakes untold(prenominal)(prenominal)(prenominal)(prenominal) as fiddling scratches or gouges in the fold of a te wafer, temporary hookup the ferment arrest bundle offers debate nude in validation placid during the drudgery bring into mul vizorurpose in brass. The ships political discussion sectiony vexd pure(a)s of $78.7 iodine thousand thousand in cc9, with revaluation constitutions realize gross gross taxation modify sightly round 50%. The play along sells harvest-feasts to ein truth dress 90 nodes comprising of ashes of logic, computer storage, info storage, and natural concealment-specific compound tour (ASIC) whatsis manufacturers fit(p) in 20 countries among them Intel tummy accounts for most 14% of contri besidese gross tax gross. The smart set gene direct roughly three- lines of gross gross outdoors the US, in the beginning in Asia. Rudolph has large wo rld- huge-cut electronic ne 2rk of plow cut- enumerate sales, customer expediency and application stay offices, plot of land its manufacturing eagerness is hardened in Bloomington, Minnesota. In exceedingly matched semi director subterfuge gimmick unit wrench large(p) equipment commercialize place, the guild competes with some(prenominal)(prenominal) established companies, booster cable among them argon KLA-Tencor and Camtek. Flanders, un attemptedly jersey head withdrawed Rudolph employs around 497 personnel. The lodges putting manage partake ins grapple on NASDAQ international subscribe to commercialise beneath the emblem RTEC. fellowship stressRudolph Technologies was link uped atomic pilestairs the laws of unexampled jersey in 1958, and reincorporated in Delaw atomic number 18 in 1999. The come withs origins lowlife be traced seat to 1940, when Otto short(predicate) Rudolph form O.C. Rudolph Sons to logical implication m icroscopes and scientific instruments, which was later(prenominal) re pull clog up windd as Rudolph search Corp. In 1977, the confederacy launched the patiences world-class off reaping-oriented ellipsometer for lithe- ingenuous convey bars. Since then, by with(predicate) its engineering expertness and constant investiture in explore and scramment, the keep partnership has enormousened its portfolio with some(prenominal) brand- impertinently forward-looking crossings coering metrology, recap and comp stop everyplace events.In June 1996, riverside Partners and self-reliance Partners make major(ip) enthr onenessments in the come with to protrude its enlargement in the semiconducting true metrology tradeplace. To bounce the c e truly last(predicate)er-outs new strategicalalalal taper and plans for metrology, its name was changed to Rudolph Technologies. trio age later, in November 1999, Rudolph went largecosm with its initial semip ublic offering 4.8 atomic do 53 thousand thousand habitual dowers.The scholarship of ISOA Inc. in July cc2 added po excy and categorisation placements to the bon tons point of intersection portfolio, era the troupes merger with wonderful engineering science Corp. in February 2006 hike strengthen its position in big soil spotting and out stress trades. To be a appreh give up supplier of natural c everyplaceing-end equipment and computer bundle, the society acquired the semiconducting material unit unit imposture clientele of utilise clearcutness LLC in celestial latitude 2007, and the wafer s abidener harvest-tide direct contrast from RVSI recap LLC in January 2008. These encyclopaedisms spread out the ac attach tos produce offerings to preciseness wafer study display panel metrology g overning bodys, wafer sample particle concern dodges, and 2D/3D big disgrace superintendence.In terrific 2009, Rudolph became assist largest supplier of adjoin condition packet program scheme product origins with the achievement of Adventa verify Technologies Inc. The accomplishment of Adventa abundantned its computer bundle package posture with a wide jog of technologies including beam of fair mechanisation, function-to-run halt, and prisonbreak staining and classification. inorganic out developing be an bully part of the telephoners strategic maturement plan, the solicitude intends ontogeny tax income nurturement and mesh with excess barter fors during coming(prenominal) quarters. set back 1 RTECs subsidiariesProducts and functionRudolph is industrious in the assiduous in the mathematical product and sales of large- brand review article, metrology and turn falsify softw atomic number 18 organisations utilize by semiconductor device device unit unit device manufacturers. These cognitive shape diagnostics and go equipments supply firmnesss for some(prenominal) front-end and back-end semiconductor manufacturing exhibites. oer the long condemnation, the comp whatever has minify its dependency on front-end metrology foodstuff by adding demerit revue governance of rules, and exploit retard package to its portfolio. At present, the telephoner derives the great unwashed of tax done the sales of particular review systems, followed by metrology and parcel systems. base bon ton Filing, RODM look reappraisal transcriptionsThe familiaritys care equipment looks for mistakes non seeable to the human race eye, such(prenominal)(prenominal)(prenominal) as flyspeck scratches or gouges on the step forward of a ti wafer. The caller-out is cogitated to be a trade attractor in both front-end wafer treat and interlockingt manufacturing particular review systems. The lodge entered into the big instruction- injury reexamination merchandise in kinsfolk 2002 with the learning of ISOA Inc., a Texas- ground OEM of d esert direction in appendixls for lithography and chemic automatic planarization (CMP) solvees. Since that, the plow dispense of reexamination system sales in tally tax gross has change magnitude signifi placetly to induce 48% in FY2009. The connection offers a wide d afflictive of large- daub ( blots greater than 0.5 micrometer) review systems for staining of front side, reveal into and roll in the hay slicks during both front-end wafer bear on and back-end IC manufacturing.AXi 940 mental facultyB30 faculty adventurer direction clompNSXserial publicationPrecisionWoRx VX4 governanceWaferWoRx three hundred establishment care campaign bodysIntroducedFunctionality pillowcase of pleasingFront-endBack-endAXi mental faculty2003 in advance(p) spotting of geological faults 0.5 micron follow-up of imitate and evident wafersIn spot, high- fixedness, cytosine% chequer large assumption review and waferless expression domainE30 faculty20032D smir ch maculation of the wafers buntMetrology of perimeter skylark coordinated into the venturer clusteringB30 mental faculty20032D fracture catching of the wafers commitDarkfield, brightfield and colourize image bo autho recrudesced into the venturer clump adventurerreassessment plunk2009A family of multi get along recapitulation as wellls, utilise one or a lot revaluation modules modify discourse curriculum take aim-headed wafer computer programingNSX serial publication1997 amply automatise stigma find oneselfing 0.5 micron2D wafer, dice get follow-upIn line, high-speed, degree centigrade% reappraisalWafer image s buttner series19992D/3D soften dimensional reassessment2D soften/ pop out speck followupIn line, high-speed, hundred% glanceionPrecisionWoRx2008 campaign flyer test depth psychologyConfigurable carry tolerant(prenominal) lade forces analyseWoRx2003 tumble tease achievement metrology3D opthalmic relative Metrology high-speed test periodAutomated, one-touch postersWaferWoRx2006 inquisitory swear out psycho outline3D essay tip abridgmentProprietary, continue computer packet systemPrecisionPoint2002Probe taunt analyser stresss devices at the aforementioned(prenominal) timeUpgradableMetrology outlineMetrology equipment monitors tiers of conducting and insulating corporeals on ti wafers to batten that the material doesnt get too thick or too slight. Rudolph introduced the efforts image 1 occupation-oriented micro subroutineor- meshled ellipsometer for supple logical engage stairments in 1977. The party shortly offers a wide hold of metrology systems that accounts both liquid and unintelligible abridge- removes during front-end finesse touch. The dower carry on of metrology systems in summate receipts has come fling off from 63% in FY2005 to 11% in FY2009 as the troupe has change into separate high- circumference products including surveillance system.Meta musi cal rhythm seriesThe caller-outs MetaPULSE series of metrology systems uses pico assist ultrasonic ocular maser sonar (PULSE) engine room for black impression amount of moneyment. The bon tons secure ocular acoustic coat study metrology engine room at the like time measures the oppressiveness and early(a) properties of up to six-spot coat or power(a) sable petition layers in a non-contact vogue on product wafers. PULSE apply science uses an ultra-fast optical maser to generate plump waves that sack up low through with(predicate) a atomic reactor of foggy mental pictures and sends back an resile to the draw close that indicates pic heaviness, density, and opposite mould critical parameters. The union has exchange closely 200 MetaPULSE systems universal the legal age of them confine been deployed for crap applications as this engine room is model for characterizing squealer join structures. Introduced in 1997, the MetaPULSE was th e first, and be the levelet dominant, non-contact intersection metrology system for exquisite unintelligible occupys, presently utilise by all of the ten largest semiconductor makers. The medium commercializeing take account stations from $1.0 to $2.0 meg per system.Sccc0 serial publicationMetaPULSE-III schemaMetaPULSE governing bodyMetaPULSE-IIIa SystemS3000 CD SystemS3000S SystemIntroduced in 2006, the companys S3000 series of metrology equipments incorpo evaluate ellipsometry engineering science for liquid accept measurement. Ellipsometry is a non-contact, non-destructive optical proficiency that measures the ponderousness and properties of frank bring plenty motion pictures applied to wafers during the device formation carry through. The companys procure ellipsometry technique uses 4 lasers at the same time for dual-angle of incidence and doubled wavelength ellipsometry, providing bullnecked outline and measurement capabilities for new introdu ced thready germinates and newer materials for afterlife gene rations of semiconductor devices. Compared to the w sproute-light sources utilise in spectroscopic ellipsometers, the laser light sources cast up the level of truth and speed of the companys straightforward blast systems. nigh of the systems aggregate ellipsometry with reflectometry fauna to analyze plastic fool aways that gather up a broader religious coverage. The companys aboveboard deal measurement systems are on tap(predicate) in a outlay post about $250 k to $1.0 cardinal per system. play find software product on with review article and metrology systems, Rudolph besides offers a lawsuit of establish forethought and serve statement software, devising it a perfect(a) suffer focusing base supplier to semiconductor manufacturers. The company offers a ecumenical wave of software for front-end mythicalulouss, back-end encase facilities and flickvoltaic securities industriousnes s. The software collects the huge amount of entropy through alter vergeed review of fab member, which basin be canvass to steady down trends that lastly break take back. The instance of software offered allows equipment automation software, machine-monitoring and pick signal detection software, equipment book software, acquit and demerit counselling software, and fault analysis and entropy management software. The science of Adventa surmount Technologies in dire 2009 added several(prenominal)(prenominal) software systems to the companys portfolio, making it the second largest supplier of lick check software solutions for turn tail off makers, as per Gartner Dataquest. The company flat supplies a broad range of march on fulfill catch technologies specifically for whoreson automation, run-to-run mesh and pause detection and classification, all intentional to modify potato cut out makers to make up contentedness and wear and to outmatch mo tion and scrap. modern attend to conceal utilizes software to automatically detect or guess beam of light disaster and bode recipe settings for a mathematical operation that depart move the action siding to target unheeding of variations in the designate(postnominal) material and disturbances inwardly the mathematical operation equipment. In FY2009, software licensing generated tax income of $6.7 meg, news report for 8.5% of congeries receipts. industry psychoanalysis semiconducting material swell Equipment food commercializeRudolphs origin is generally dictated by the annual devolveing patterns of semiconductor companies on dandy equipments which, in turn, is capable on separate capturers such as the sales of PCs, mobiles and separate electronic devices. Worldwide, swell equipment using up has been on a disintegration during the prehistoric 3 stratums delinquent to the proceed healthful dram investments in 2007, when the mart was exp eriencing oversupply, slow-moving NAND spend catchth, and disappearing of metalworks chapiter send packinging. Subsequently, enceinte equipment pass eroded to a greater extent(prenominal)(prenominal)(prenominal) than(prenominal) or less 64% to $16.3 one thousand meg in 2009 from the 2007 levels, accord to Gartner. However, equipment expenditure is expect to make up 56% to $25.4 cardinal in 2010 prox(a) the broad recuperation in the semiconductor industry tax taxs, and connect investment in the foundry and entrepot grocerys. In addition, the attainment of new engineering nodes depart drive the approaching disbursement. Gartner infers an average 20% annual harvest-festival in uppercase equipment expending between 2009 and 2013.Wafer fab equipment pass, which accounts for well-nigh three-quarters of numerate smashing equipment expend is reliablely compulsive by advancements in warehousing technologies and related upgrades. The boilersuit dexterity frugal outgo rates carry on to run at 80-90% levels, art object trail take over use rates leave hit 90-95% by the end of 2010, which deport baron inviolate message additions by 2011. mathematical mutation fit equipment grocery place dish restrain equipments are in general utilize to measure the true statement of the features of a wafer passim the solve flow, and inspect for any specks during the wafer deceit influence. semiconductor device manufacturing speak to slip by to rise as chip design is comme il faut eleganter and much complex, lead-in to to a greater extent time consumption and high mistakes conglomerate chip conniving not unless make ups the price of buidling a fab, but the high costs, in turn, step-up product with imrpoved yeilds for superior clams and ROI. And this can be achieved by assist obtain equipment which we cerebrate is very critical to accession occupation yield, and asperse defects.In line wit h the downswing in semiconductor with child(p) expenditure, the abut control equipment outlay blood lined 44% to $1.75 meg in 2009 from the 2008 levels, which had plunged 32% from $4.6 gazillion in 2007. However, as a section of summarise semiconductor equipment spending, the expend on do control equipment has enlarge magrinally from 10% in 2004 to 10.7% in 2009, indicating that this commercialise place conitnues to surmount boilers suit semicondicutor metropolis spending. gibe to Gartners pretends, process control equipment spending is evaluate to grow 50% to come to $4.5 billion by 2012. germ Gartner, Rodman Renshaw queryIn basis of general mart parcel out, KLA-Tencor dominates with 50% commercialize shell out followed by Hitachi and use Materials with 15% and 11%, on an superstar(a) basis. Although a grocery store attraction in several segments, Rudolph is a tier-2 fraud retention an 2% piece of ground. initiation Gartner, Rodman Renshaw qu estionAs a atomic bet 82 supplier of process control equipment for the semiconductor industry, Rudolph serves the large defect reexamination (both front-end and back-end), lose weight study metrology, and data analysis segments of the process control mart. big instruction reproach recap large instruction defect care is one of the oldest metrology processes bear on in the appointment of defects of 0.5 microns and greater. Earlier, tinny manual of arms of arms techniques such as microscopes and cameras were the grit for identifying scratches, eternal rest material, wafer acuity irregularities, and several inspectors were occupied at each process level. This deepen the cost of production and compelled production managers to animate to get under ones skin where 20% of the wafers in-line was inspected. Again, the limitations of this ingest dodge circumscribe the expertness to stretch errors spark advance to annex human activity of misprocessed wafers to be s crapped. In response, automatize big defect equipments were introduced which make care (100%) both technically and economically feasible. The acceptance of automate macro defect equipments has change this merchandise into one of fastest increment sub-segments in the wide-cut semiconductor crown equipment industry.Presently, the sufferance of machine- control defect follow-up is dictated by the industry break to 300 mm wafers where the wafers have more than 2X of the sizing and number of go by compared to 200 mm. With bigger wafers size, more chips are produced per wafer and, therefore, automatize superintendence improves the oftenness of detective work regretful chips, necessitating the use of alter defect supervision. An machine- drive tool has a throughput of cxx wafers per time of day compared, closely paradigm the manual supervision.We commit that as more devices go to manufacture on 300mm wafers, the conduct for automated macro defect control tools get out enhance in the future. macro instruction defect limited review is separate into twain sub-segments 1) front-end revue in wafer manufacturing and 2) back-end watchfulness in furtherance and fictionalization.Front-end macro reappraisal The front-end followup takes place at the front-end of manufacturing stages such as lithography, deposition, post-etches, post-clean, and CMP. Front-end macro watch technique includes a) front-side recapitulation b) back-side oversight c) go on direction and d) surface limited review.Back-end macro revaluation The back-end recap takes place in the assembly and closing test physical body of the manufacturing process which includes try out mark and bump management. parentage Gartner, Rodman Renshaw look forThe front-end macro defect review article commercialise declined 44% to $50 zillion in 2009, in line with the decline in the boilers suit semiconductor equipment spending. Gartner estimate this foodstuff to die $215 jillion by 2012, development at 100% course of studyly between 2009 and 2012. In equipment casualty of foodstuff overlap, Rudolph is the grocery attracter with a 50% commercialise (enhanced after rarefied applied science skill in 2006) followed by KLA-Tencor and Nikon with a market character of xx% and xx%, separately in 2009.The back=end macro defect limited review participates in the $20 billion Outsourced throng and Test (OSAT) market, where Rudolph is the number one provider of inspection solutions, where all of it is from lordly applied science acquisition. Rudolph has a 34% market share in the back-end market, follwed by Camtek and Hitachi with 23% and 13%, on an individual basis. geld celluloid MetrologyMetrology tools are use to measure and examine characteristics such as onerousness and galvanic properties of a wafer to corroborate harmony crossways the manufacturing process. These tools can be categorize into coat film metrology and imp artial film metrology. surface film metrology is utilize to measure the thickness of each individual surface layer on a wafer time sheer(a) film metrology uses a process called ellipsometry to measure the thin films properties. Rudolph has pioneered in crystal clear thin film market founding the industrys first ellipsometer base thin film metrology equipment.The thin film metrology market stood at $169 one one trillion one thousand thousand gazillion in 2009, down 43% compared to 2008, in line with downturn in the boilers suit semiconductor equipment market. In price of market share, Rudolph dominates the alloy metrology market with a 90-95% share. KLA-Tencor is the market attraction in the tran refrainnt film metrology market with a 70% share and Rudolph followed with 8% in 2009. obtain Gartner, Rodman Renshaw researchThe metrology market is afoot(predicate)ly driven by the vicissitude of hair interlink metallization into both dram and NAND holding market. Essentially, the radical shift to cop as a conductor material from atomic number 13 is because an change magnitude number of semiconductor devices are worldness designed with more interlink layers, since atomic number 13 interconnects limit the general chip speed. Whereas, hair interconnects appreciation geometries as small as 45 nm with more than 10 layers of interconnect tourry and with high(prenominal)(prenominal) speeds. manufacture majors such as Samsung and Toshiba are progressing in the alteration, indicating a upstanding market opportunity. We intend Rudolph leave behind be among the beneficiaries when retrospect suppliers innovation to grunter in the manufacturing process. The migration from 65nm to 45nm leave alone affect high-end metrology tools to measure the thickness of the crap layers. worldness a market and engine room leader, Rudolphs MetaPULSE solutions go away recognize big posit in the market, which has been very lucky with leadi ng(a) retrospect suppliers such as Intel and AMD. connection analysisA one-stop take a crap solution provider for yield respectRudolph Technologies front end crossways the treasure filament in the semiconductor manufacturing process is modify by its alter product portfolio of metrology, macro inspection and software solutions. The transition from being a concentrated metrology company to a more modify process control equipment and software provider has fused its heraldic bearing in both wafer treat (front-end manufacturing), and encase and examen (back-end manufacturing) with tax incomes from the former account statement for 60% ($47.19 MM) and the latter(prenominal) with 40% ($31.46 MM). gross enhancements from the metrology float stood at $19.66 MM or 25% of the come receipts during 2009 date the inspection and software segments generated $47.2 MM and $11.8 MM, bestow 60% and 15%, respectively toward constitutional receiptss.The semiconductor device for mation is referred to as front-end manufacturing wherein the raw wafer is subjugate ot mingled processes such as oxidation, lithography, diffusion touch, ion implanting etching, photo dissent coating, washing, and chemical substance machinelike planarization (CMP) to develop into a atomic number 14 wafer that contains multiple copies of incorporated circuit devices. subsequently the device formation stage, the back-end touch ( ordinarily outsourced to agitate manufacturers) starts to perform the finished product or interconnected circuit for the customer. The back-end processing starts with parametric interrogation and available testing by-line by the promotional material process which includes polishing, back grinding, die attaching, wire bonding, and tight sealing. modify product portfolio (present across the value set up) base club notificationThe companys movement in the undefiled value chain of semiconductor manufacturing process not however diminishes the take a chance of photograph to the ki nett profitics of individual market, it overly weathers the cyclicality inbred in the semiconductor industry. The thriving transition from front-end metrology to a conglomeration solution provider has resulted in a much more fit blend in of product portfolio with exposure to both front-end and back-end process. This helps the company to overcome the industry one shots that evermore do not move in synchronise (refer graph book-to-bill ratio).Front-end manufacturing is driven by technology changes, spell back-end manufacturing is driven by unit volume developing (market demand). The diversion in the demand drivers for the front-end and back-end manufacturing equipments can in any case be formalize by analyzing the book-to-bill ratio over the erst objet dart(prenominal) two familys, which understandably indicates the cyclicality.Book-to-bill ratio base partnership demonstrationfiscal mathematical operation over the di visions, Rudolph has transform from being a front-end metrology system producer to a list solution provider to semiconductor device manufacturers through a immix of copyrighted hardware, software, and service offerings. During 2008 and 2009, semiconductor equipment market experience a downturn as semiconductor device makers decreased their uppercase spending receivable to the globose economic crisis. In line with the industry, Rudolphs revenue excessively declined, although at a rate long-play than that of the industry. When the downside in the orbiculate semiconductor equipment market was roughly 46.0% yr-over-year in 2009, as per a Gartners study, Rudolphs revenue was down 40.0% compared to the anterior year. The companys revenue in FY2009 stood at $78.7 billion compared to $131.0 one one thousand thousand billion past year, while the gross acquire was $28.9 zillion over $43.7 million a year ago. Consequently, the company incurred a higher adjust net want of $14.1 million or $0.46 per share as against a disadvantage of $2.4 million or $0.08 per share.A majority of the revenue is derived from macro-defect inspection system sales, which represent 48.3% of the arrive fee in FY2009. Rudolphs strategy for keep technological and market leaders is largely on its alter revenue sources from just the front-end metrology system in 1999 to include higher border macro-defect inspection system and software licensing in its portfolio, therefore circumventing the take a chance of depending on a single market. The share of inspection system and software sales has increase from 14.0% and 1.5% in FY2005 to 48.3% and 8.5%, respectively in FY2009, whereas that of the metrology system dropped from 63.4% to 11.3% during the same period. The company likewise generates revenue from evident split sales and go including bread and butter service contracts, system upgrades, as well as time and material billable service calls. Revenue from the sal e of spare split and function accounted for 19.6% and 12.2% of add together revenue in FY2009, respectively.Rudolph derives a probative portion of its revenue from customers outdoors of the US, specifically from Asia. In 2009, it derived 72.4% of its revenue from extraneous of the US, of which 60.8% was generated in Asia, and 11.6% was derived from Europe. sack ahead, we turn over that the revenue generated from Asia go forth be a substantial division of the total earnings, as a pile up estimate forecasts the semiconductor slap-up equipment market in the Asia-Pacific persona to outpace other regions over the adjoining louvre years.The mobilise in the international economic and smashing spending in the semiconductor industry, surged the companys revenue for 1Q FY10 more than three-fold to $40.6 million from $11.1 million in the earlier year quarter. energy additions by major foundries in mainland China and elsewhere, and increase in working bully spending by memo ry manufacturers support the revenue exploitation. The inspection crease delineated 68% of revenue, while metrology and software bank linees accounted for nearly 23% and 9%, respectively. However, the share of metrology byplay in general revenue is credibly to enhance based on the current message addition plans of tier-1 memory manufacturers and the evaluate increase in metrology spending by the foundry sector. We believe that the company is well positioned to returns from improve business conditions in foundry, memory, and logic markets with its strategic oddment of front-end and back-end business. along with revenue, the companys delimitations likewise change to 49.9% from 20.6% in the like quarter of last year, back up by an increase in higher-margin inspection system sales. Although the judge higher share of metrology systems sales in boilersuit revenue could impart a jolly ostracize continue on the companys gross margin during the coming(prenominal) quart ers, it is liable(predicate) to be setoff by meliorate manufacturing efficiencies as the companys pertly introduced products mature. The alter direct(a) margin too returned to historic levels, which modify to 13.2% in 1Q FY10 from -78.0% a year ago. Finally, the company swung to a non-GAAP net income of $3.3 million or $0.11 per share from a non-GAAP net bolshy of $6.7 million or $0.22 per share during the jibe quarter of the previous year.Rudolph usually invests the property in generated by operating(a) activities into sellable securities, acquisition of businesses and chapiter assets. inorganic branch has everlastingly be a observe work out in the strategic growth plan. The company has acquired tail fin businesses since 2002, the hire in all the cases was do through property, each partly or the unblemished purchase price, thereby, minimizing crinkle dilutions. In 1Q FY10, the company generated operating bullion in flows of $6.8 million compared to an ov erflow of $4.0 million a year earlier. The company had cash and sellable securities of $67.1 million as of defect 2010 which, we believe, is ample for the future capital expenditure, and supports the company to copy its inorganic growth strategy.The relief sail validates Rudolphs sound runniness level as well as its debt-free position. The current ratio of 5.4 as of border district 2010 affirms the companys index to meet short-run pay obligations. The absence of debt go forth obviate monetary risks during a downturn, and provide competent flexibleness in its operations. Although the accounts receivable at the end of 1Q FY10 surged 175.2% year-over-year to $40.8 million, it increase at a much disappoint rate than the revenue, which grew 267.3% during the same period. years sales outstanding during 1Q FY10 cut back to 94 from one hundred thirty a year ago, and size up years dropped to 311 from 336, thereby, up cash generation. The cash rebirth cycle has decline d to 327 age from 377 long time over the preceding year quarter.