Question-and-Answer Session
Operator
Thank you. (Operator Instructions) Your first question comes from the line of Gary Hsueh with Oppenheimer & Company. Pleases proceed.
Gary Hsueh - Oppenheimer & Company
Yes, hi. I missed most of the prepared comments. But if I look at your business and the fantastic financial performance that you turned in the quarter, it seems to be driven by South Korea and standalone metrology in addition to some service contractor, software business that really kind of boosted the margins there. Is that in accurate characterization and if it is, and if it is South Korea, how sustainable do you think that is kind of going forward over the next one to two quarters?
Tim Stultz
Hi, Gary. Thanks for the question. We certainly have posted a quite bit revenue and sales in South Korea, but I'll point back to the comments, I made earlier is that over a half of our business came from non-semiconductor expansion spending that being our service, our upgrades on our materials characterization.
So, those have been pretty steady for us over the last, certainly last several quarters, the last year or so, and any reductions in Korea, we have exposure to certainly in the standalone area and we're going to be face with that effect continues, but we kept the benefit of the support from the other revenue generators.
Gary Hsueh - Oppenheimer & Company
Okay. Just to be clear, that the service business is more driven from non-semi business for software and upgrades or software and upgrades for semis.
Tim Stultz
It's relatively semis.
Gary Hsueh - Oppenheimer & Company
Okay. And that upgrade business, I think you have been enjoying margin expansion on that upgrade business at least for two quarters now. I mean, how much more can we expect you're going forward?
Tim Stultz
That's a good question. I'd like to just go back to a little bit, and originally you can see that the upgrade focus in strategy. The 2007 and when we're looking at 2008 its being the potential area, where a year, where we would see some revenue decline, its struck is that with an installed base of 6,000 systems. We have the opportunity to mind that installed base by providing productivity and performance enhancement to our customers.
And we originally vision that as a kind of a temporal short-term opportunity and that would have legs maybe the last a few quarters to a year. What we have learned from it since that time is this will become, I think it will be a steady contributor to our revenue stream maybe it had ups and downs to different periods.
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