DCG Systems' history includes over 25 years of experience. Beginning with the original Diagnostic Systems Group in the late 1980's as part of Schlumberger's former ATE division and later the Probe Systems Group as part of NPTest, the group was later combined with Optonics and Hypervision to form Credence System Corporation's Diagnostic and Characterization Group. In 2010, DCG acquired Zyvex Instruments.

DCG Systems retains the expertise and experience from the development of a broad range of diagnostic products. We continue to support our large installed base of Probe Systems, Optonics, Hypervision and Zyvex instruments.

DCG Systems performance during the 2008-2009 downturn

During its first two years of operation, DCG Systems significantly exceeded expectations during the recent economic downturn. In an environment whose performance has been referred to by the World Bank as the worst since the Great Depression of the 1930s and the news of workforce reductions became almost a weekly event, DCG not only retained its workforce, but expanded through the creation of a new Japanese subsidiary: DCG KK. The company revenue almost doubled in 2009; it posted a net profit for both 2008 and 2009, and has continued to supply its customers with new products and technologies in order to allow them to maintain their competitive edge.

When preparations were made to spin out the Diagnostics and Characterization Group division of Credence Systems Corp. at the beginning of 2008, such success was hoped for, but definitely not guaranteed. At Credence, the division lost money and the backlog was practically non-existent. Complicating this was the timing: February 2008 was not an optimal time to create a new, private startup. DCG, however, had some significant strengths going for it: A large customer installed base, and a collection of outstanding technical talent.

Dr. Israel Niv led a small group of private investors, and purchased the division from Credence. Dr. Niv brought an exceptional amount of experience, having successfully guided Opal from a small private company through an IPO to acquisition by Applied Materials and then Optonics through an acquisition by Credence. Dr. Niv also had a personal interest in the DCG division: he had served as its General Manager after the acquisition of both Optonics and NPTest by Credence. The deal was made, and DCG Systems, Inc. was created. DCG was saved from closure in February 2008, but the real work was still ahead. The economy began its downward slide in earnest in the early months of 2008. Measures had to be taken in order to ensure DCG’s survival during those first critical six months of existence. Customers were reassured that the company would continue, and ongoing projects to fulfill customer commitments would be maintained. Yet, costs needed to be minimized.

DCG’s board of directors adopted a strategy that would ensure the continuation of vital projects while significantly reducing cost. Every employee in DCG accepted a pay reduction for the duration of the year, thus maintaining its entire workforce intact. This was not a simple pay reduction, however. If the company met its goals during 2008, each employee would receive retroactive pay at the end of the fiscal year equal to the entire cumulative amount of their pay reduction. In essence, if the company did well during the year, each employee would end the fiscal year with the equivalent of their full salary. This strategy served well during 2008. DCG not only met its goals, but managed to post a slight profit. Employees received their retro-pay for 2008. Although 2008 was challenging, going into 2009 the economy looked even bleaker, and the reduced salary plan was carried into 2009.

2009 was a busy year for DCG. Dr. Niv recognized that periods of economic downturn are ideal times to search for ways to grow the company through partnerships and acquisitions, and increase market-share through technology leadership. DCG sales grew 94% YOY in 2009 while all its competitors reported that revenues declined in 2009. In January 2009, DCG established a Japanese subsidiary, DCG KK, which was profitable in 2009. In addition, a partnership was established with a European company which allowed DCG to enter a new market: 3D fault localization. The company even introduced a new wafer analysis tool. The end of fiscal year 2009 was capped by the acquisition of the Zyvex Instruments group, which increased the size of DCG by approximately 20%. DCG posted a nice profit in 2009, and employees once again received their retroactive pay, this time referred to as the “Salary Reduction Bonus.” Better yet, employees will also receive performance bonuses. Significantly, DCG also retired the majority of its investor debt at the end of 2009.