2014

Nova Announces 2013 Second Quarter Results

REHOVOT, Israel, July 30, 2013 /PRNewswire/ -- Nova Measuring Instruments Ltd. (Nasdaq: NVMI), provider of leading edge stand alone metrology and the market leader of integrated metrology solutions to the semiconductor process control market, today reported its 2013 second quarter results.

Highlights for the Second Quarter of 2013

  • Quarterly revenues of $28.1 million
  • Blended gross margin of 55%
  • GAAP Net income of $2.8 million, or $0.10 per diluted share
  • Non-GAAP Net income of $3.8 million, or $0.14 per diluted share
  • Positive cash flow from operations of $3.5 million

Management Comments

"We are pleased to report revenues for the second quarter near the high end of our guidance range," said Gabi Seligsohn, President and CEO of Nova. "This strong performance, combined with a slightly more favorable revenue mix than we expected, also enabled us to exceed the high end of our earnings guidance."

"Our strong position in the foundry segment continues to be reflected in our results, as several customers ramp up 28nm capacity, continuing the demand for both stand-alone and integrated metrology tools for this process node. In turn, we are able to continue to invest in breakthrough technology such as the new NovaMARS 6.0 modeling engine which we introduced during the second quarter, while also generating positive operating cash flow. During the second quarter, we increased our cash position to $98 million."

Addressing the business outlook, Mr. Eitan Oppenheim, President and CEO-elect said, "We expect demand for both stand-alone and integrated systems from our broad base of foundry customers to continue during the second half of 2013, mainly for production in 28nm, and possibly 20nm late in the year. We also expect to ship systems for 20nm pilot lines and 16/14nm R&D lines. In addition, we will continue to take advantage of upgrade opportunities, while also collaborating on advanced process control development with leading customers and OEMs. During the second half of 2013, our focus will be on preparing for the 20nm ramp up and the next expansion phase in memory, increasing the adoption of our stand-alone metrology tools for advanced 3D processes, and continuing our strategic software development and expansion initiatives. We will also be leveraging our initial success to further penetrate the 3D interconnect market."

Nova will discuss the results, along with its outlook and guidance for the third quarter of 2013, on a conference call today, July 30, 2013, beginning at 5:00 pm ET. The call will be webcast live from a link on Nova's website at http://ir.novameasuring.com.

Nova will also conduct a conference call in Hebrew on Wednesday, July 31, 2013 at 11:00 am Israel Time.

2013 Second Quarter Results

Total revenues for the second quarter of 2013 were $28.1 million, an increase of 4% relative to the second quarter of 2012, and an increase of 3% relative to the first quarter of 2013.

Gross margin for the second quarter of 2013 was 55%, compared with 54% in the second quarter of 2012 and 54% in the first quarter of 2013.

Operating expenses in the second quarter of 2013 were $12.0 million, compared with $9.9 million in the second quarter of 2012 and $11.8 million in the first quarter of 2013.

On a GAAP basis, the company reported net income of $2.8 million, or $0.10 per diluted share, in the second quarter of 2013. This compares to a net income of $3.7 million, or $0.14 per diluted share, in the second quarter of 2012, and a net income of $2.4 million, or $0.09 per diluted share, in the first quarter of 2013.

On a Non-GAAP basis, which excludes deferred income tax adjustments, stock based compensation expenses and loss or income related to equipment and inventory damage, the company reported net income of $3.8 million, or $0.14 per diluted share, in the second quarter of 2013. This compares to a net income of $5.4 million, or $0.20 per diluted share, in the second quarter of 2012, and a net income of $3.6 million, or $0.13 per diluted share, in the first quarter of 2013.

Total cash reserves at the end of the second quarter of 2013 were $97.6 million.

Conference call details

To attend the conference call today, July 30, 2013, at 5:00 pm ET, please dial in the US: 1 877 280 1254; or internationally +972 3 763 0145 or +1 646 254 3361.

To attend the conference call in Hebrew, on July 31, 2013, at 11:00 am Israel Time, please dial +972 3 918 0609.

Nova's financial results conference call on July 30, 2013 will be webcast live from a link on Nova's website at http://ir.novameasuring.com, together with a presentation to accompany the conference call.

Replays of both the English and Hebrew conference calls will be available from the same link.

About Nova: Nova Measuring Instruments Ltd. develops, produces and markets advanced integrated and stand alone metrology solutions for the semiconductor manufacturing industry. Nova is traded on the NASDAQ & TASE under the symbol NVMI. The Company's website is: www.novameasuring.com.

This press release provides financial measures that exclude non-cash charges for stock-based compensation, loss or income related to equipment and inventory damage as well as deferred income taxes adjustments and are therefore not calculated in accordance with generally accepted accounting principles (GAAP). Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding Nova's performance because they reflect our operational results and enhances management's and investors' ability to evaluate Nova's performance before charges or benefits considered by management to be outside Nova's ongoing operating results.

The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management believes that it is in the best interest of its investors to provide financial information that will facilitate comparison of both historical and future results and allows greater transparency to supplemental information used by management in its financial and operational decision making. A reconciliation of each GAAP to non-GAAP financial measure discussed in this press release is contained in the accompanying financial tables.

This press release contains forward-looking statements within the meaning of safe harbor provisions of the Private Securities Litigation Reform Act of 1995 relating to future events or our future performance, such as statements regarding trends, demand for our products, expected deliveries, transaction, expected revenues, operating results, earnings and profitability. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied in those forward looking statements. These risks and other factors include but are not limited to:  our dependency on two product lines; the highly cyclical nature of the markets we target; our inability to reduce spending during a slowdown in the semiconductor industry; our ability to respond effectively on a timely basis to rapid technological changes; our dependency on PEM; risks related to exclusivity obligations and non-limited liability that may be included in our commercial agreements and arrangements; cyber security risks; risks related to open source technologies; our ability to retain our competitive position despite the ongoing consolidation in our industry; risks related to our dependence on a single manufacturing facility; risks related to our lease agreements; our ability to expand our manufacturing capacity or marketing efforts to support our future growth; risks related to quarterly fluctuations in our operating results; risks related to the extremely competitive market we are operation in; our dependency on a small number of large customers and small number of suppliers; our dependency on our key employees; risks related to changes in our order backlog; risks related to the financial, political and environmental instabilities in Asia; risks related to our intellectual property; changes in customer demands for our products; new product offerings from our competitors; changes in or an inability to execute our business strategy; unanticipated manufacturing or supply problems; changes in tax requirements; changes in customer demand for our products; risks related to currency fluctuations and risks related to our operations in Israel. We cannot guarantee future results, levels of activity, performance or achievements. The matters discussed in this press release also involve risks and uncertainties summarized under the heading "Risk Factors" in Nova's Annual Report on Form 20-F for the year ended December 31, 2012 filed with the Securities and Exchange Commission on March 11, 2013. These factors are updated from time to time through the filing of reports and registration statements with the Securities and Exchange Commission. Nova Measuring Instruments Ltd. does not assume any obligation to update the forward-looking information contained in this press release.

Company Contact:

Investor Relations Contacts:

Dror David, Chief Financial Officer

Ehud Helft / Kenny Green

Nova Measuring Instruments Ltd.

CCG Investor Relations

Tel: +972-73-229-5833

Tel: +1-646-201-9246

E-mail: info@novameasuring.com

E-mail: nova@ccgisrael.com

www.novameasuring.com


 


NOVA MEASURING INSTRUMENTS LTD.

CONSOLIDATED BALANCE SHEET

(U.S. dollars in thousands)






As of
June 30,


As of
December 31,




2013


2012








CURRENT ASSETS






Cash and cash equivalents


17,799


15,963


Short-term interest-bearing bank deposits


79,371


75,039


Trade accounts receivable


19,717


17,362


Inventories


16,205


17,827


Deferred income tax assets


528


1,850


Other current assets


2,518


2,549




136,138


130,590


LONG-TERM ASSETS






Long-term interest-bearing bank deposits


405


405


Other long-term assets


419


516


Severance pay funds


1,819


1,873




2,643


2,794








FIXED ASSETS, NET


9,607


8,660








TOTAL ASSETS


148,388


142,044








CURRENT LIABILITIES






Trade accounts payable


10,601


10,819


Deferred income


2,634


4,775


Other current liabilities


9,194


8,444




22,429


24,038








LONG-TERM LIABILITIES






Liability for employee severance pay


2,805


2,806


Deferred income


568


159


Other long-term liability


266


270




3,639


3,235








SHAREHOLDERS' EQUITY


122,320


114,771








TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY


148,388


142,044










 


NOVA MEASURING INSTRUMENTS LTD.

QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS

 (U.S. dollars in thousands, except per share data)



Three months ended


June 30,
2013


March 31,
2013


June 30,
2012













REVENUES






Products

22,419


22,341


22,070

Services

5,705


5,084


4,980


28,124


27,425


27,050







COST OF REVENUES






Products

9,342


9,079


9,150

Services

3,449


3,580


3,324


12,791


12,659


12,474







GROSS PROFIT

15,333


14,766


14,576







OPERATING EXPENSES






Research and Development expenses, net

7,567


7,499


5,893

Sales and Marketing expenses

2,968


3,224


3,048

General and Administration expenses

1,472


1,119


972


12,007


11,842


9,913







OPERATING PROFIT

3,326


2,924


4,663







INTEREST INCOME, NET

246


130


339







INCOME BEFORE INCOME TAXES

3,572


3,054


5,002







    INCOME TAXES EXPENSES

769


659


1,278







NET INCOME FOR THE PERIOD

2,803


2,395


3,724



















Net income per share:






     Basic

0.10


0.09


0.14

     Diluted

0.10


0.09


0.14







Shares used for calculation of net income per share








     Basic

27,121


26,854


26,610

     Diluted

27,419


27,261


27,299










 

 

 


NOVA MEASURING INSTRUMENTS LTD.

YEAR TO DATE CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. dollars in thousands, except per share data)





Six months ended


June 30, 2013


June 30, 2012





REVENUES




Product

44,760


40,837

Services

10,789


8,815


55,549


49,652





COST OF REVENUES




Product sales

18,421


16,345

Services

7,029


6,153


25,450


22,498





GROSS PROFIT

30,099


27,154





OPERATING EXPENSES




Research and Development expenses, net

15,066


11,474

Sales and Marketing expenses

6,192


5,929

General and Administration expenses

2,591


1,814


23,849


19,217





OPERATING PROFIT

6,250


7,937





    INTEREST INCOME, NET

376


748





INCOME BEFORE INCOME TAXES

6,626


8,685





    INCOME TAX  EXPENSES

1,428


2,224





NET INCOME FOR THE PERIOD

5,198


6,461









Net income per share:




     Basic

0.19


0.24

     Diluted

0.19


0.24









Shares used for calculation of net income per share:




     Basic

26,988


26,575

     Diluted       

27,278


27,269

 

 

NOVA MEASURING INSTRUMENTS LTD.

QUARTERLY CONSOLIDATED STATEMENTS OF CASH FLOWS

(U.S. dollars in thousands)



Three months ended


June 30,

2013


March 31,

2013


June 30,

2012

CASH FLOW – OPERATING ACTIVITIES












  Net income for the period

2,803


2,395


3,724

  Adjustments to reconcile net income to net cash
      provided by operating activities:












        Depreciation and amortization

846


824


577

        Loss related to inventory damage

148


-


-

        Amortization of deferred stock-based compensation

624


585


409

        Increase (decrease) in liability for employee
            termination benefits, net

66


(11)


(41)

        Deferred income taxes

713


609


1,241

        Decrease (increase) in trade accounts receivables

(712)


(1,643)


971

        Decrease (increase) in inventories

583


(560)


(3,282)

        Decrease (increase) in other current and long term
            Assets

841


(720)


(122)

        Increase (decrease) in trade accounts payables and
            other long-term liabilities

(147)


(75)


1,170

        Increase (decrease) in other current liabilities

(504)


1,344


(375)

        Increase (decrease) in short and long term deferred
            income

(1,793)


61


212

Net cash provided by operating activities

3,468


2,809


4,484







CASH FLOW – INVESTMENT ACTIVITIES












Decrease (increase) in short-term interest-bearing

bank deposits

(6,317)


1,985


(10,150)

Proceeds from short-term held to maturity securities

-


-


87

Proceeds from insurance claim

219


-


-

Additions to fixed assets

(1,042)


(342)


(679)

Net cash provided by (used in) investment
          activities

(7,140)


1,643


(10,742)







CASH FLOW – FINANCING ACTIVITIES












Shares issued under employee share-based plans

599


457


72

Net cash provided by financing activities

599


457


72







Increase (decrease) in cash and cash  
          equivalents

(3,073)


4,909


(6,186)

Cash and cash equivalents – beginning of period

20,872


15,963


26,594

Cash and cash equivalents – end of period

17,799


20,872


20,408









 

 

NOVA MEASURING INSTRUMENTS LTD.

YEAR TO DATE CONSOLIDATED STATEMENTS OF CASH FLOWS

(U.S. dollars in thousands)


Six months ended


June 30, 2013


June 30, 2012

CASH FLOW – OPERATING ACTIVITIES








  Net income for the period

5,198


6,461

  Adjustments to reconcile net income to net cash provided by operating
    activities:








      Depreciation and amortization

1,670


1,154

      Loss related to equipment and inventory damage

148


-

      Amortization of deferred stock-based compensation

1,209


829

      Increase (decrease) in liability for employee termination benefits, net

55


(51)

      Deferred income taxes

1,322


2,151

      Increase in trade accounts receivables

(2,355)


(4,118)

      Decrease (increase) in inventories

23


(6,886)

      Decrease (increase) in other current and long term assets

121


(653)

      Increase (decrease) in trade accounts payables and other long term
          liabilities

(222)


4,907

      Increase (decrease) in other current liabilities

840


(616)

      Increase (decrease) in short and long term deferred income

(1,732)


1,372

  Net cash provided by operating activities

6,277


4,550





CASH FLOW – INVESTMENT ACTIVITIES








Increase in short-term interest-bearing bank deposits

(4,332)


(1,782)

Proceeds from short-term held to maturity securities

-


33

Proceeds from insurance claim

219


-

Additions to fixed assets

(1,384)


(1,252)

Net cash used in investment activities

(5,497)


(3,001)





CASH FLOW – FINANCING ACTIVITIES








Shares issued under employee share-based plans

1,056


143

Net cash provided by financing activities

1,056


143





Increase in cash and cash equivalents

1,836


1,692

Cash and cash equivalents – beginning of period

15,963


18,716

Cash and cash equivalents – end of period

17,799


20,408

 

DISCLOSURE OF NON-GAAP NET INCOME

(U.S. dollars in thousands, except per share data)






Three months ended


June 30,


March 31,


June 30,


2013


2013


2012







GAAP Net income for the period

2,803


2,395


3,724







Non-GAAP Adjustments:






Stock based compensation expenses

624


585


409

Income taxes expenses

713


609


1,241

Income from insurance claim

(509)


-


-

Loss related to equipment and inventory damage

148


-


-







Non-GAAP Net income for the period

3,779


3,589


5,374







Non-GAAP Net income per share:






     Basic

0.14


0.13


0.20

     Diluted

0.14


0.13


0.20







Shares used for calculation of Non-GAAP net income per share:






     Basic

27,121


26,859


26,610

     Diluted

27,419


27,261


27,299








Six months ended


June 30,


June 30,


2013


2012





GAAP Net income for the period

5,198


6,461





Non-GAAP Adjustments:




Stock based compensation expenses

1,209


829

Deferred income taxes expenses

1,322


2,151

Income from insurance claim

(509)


-

Loss related to equipment and inventory damage

148


-





Non-GAAP Net income for the period

7,368


9,441





Non-GAAP Net income per share:




     Basic

0.27


0.36

     Diluted

0.27


0.35





Shares used for calculation of Non-GAAP net income per share:




     Basic

26,988


26,575

     Diluted

27,278


27,269

 

SOURCE Nova Measuring Instruments Ltd.



RELATED LINKS
http://www.novameasuring.com

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