Nova Announces Record 2013 Fourth Quarter And Full Year Results

Record Quarterly Revenues of $30.2 million And Record Yearly Revenues of $111.5 million

18 Feb, 2014, 05:00 ET from Nova Measuring Instruments Ltd.

REHOVOT, Israel, Feb. 18, 2014 /PRNewswire/ -- Nova Measuring Instruments Ltd. (Nasdaq: NVMI), provider of leading edge standalone metrology and the market leader of integrated metrology solutions to the semiconductor process control market, today reported record 2013 fourth quarter and full year results.

Business Highlights:

  • Stand Alone driving market share gains in major foundries for Front End and Back End Etch process steps in 2X and 1X technology nodes; represented 50% of bookings in 4Q13
  • Growing deliveries of Integrated and Stand Alone tools to support 16/14nm with sequential increase from 3Q13 to 4Q13
  • Shipped first systems for 10nm R&D line to a large pure-play foundry
  • Crossed delivery mark of 250 Metrology tools for 2Xnm and below technology nodes  for all industry segments
  • Ongoing evaluations at 3 memory customers for advanced V-NAND and TSV applications
  • Received first orders for Fleet Management SW solution

Fourth Quarter and Full Year 2013 Financial Highlights:

  • Quarterly revenues of $30.2 million, up 37% from $22.1 million a year ago
  • Quarterly gross margin of 53%, up from 50% a year ago
  • Full year 2013 revenues of $111.5 million, up 16% from $96.2 million in 2012
  • Full year gross margin of 53%, similar to 2012
  • Total cash reserves of $99.7 million as of December 31, 2013, and no debt

 

GAAP Results ($K)

Q4 2013

Q3 2013

Q4 2012

FY2013

FY2012

Revenues

$30,198

$25,771

$22,098

$111,509

$96,168

Net Income

$3,077

$2,240

$2,472

$10,515

$11,828

Earnings per Diluted Share

$0.11

$0.08

$0.09

$0.38

$0.43

NON-GAAP Results ($K)

Q4 2013

Q3 2013

Q4 2012

FY2013

FY2012

Net Income

$4,055

$2,724

$1,037

$14,147

$14,211

Earnings per Diluted Share

$0.15

$0.10

$0.04

$0.52

$0.52

A reconciliation between GAAP operating results and non-GAAP operating results is provided following the financial statements that are part of this release. Non-GAAP results exclude adjustments of deferred taxes, stock based compensation expenses, income from insurance claim and loss related to equipment and inventory damage.

Management Comments

"We posted record revenues for the fourth quarter and for the whole year, exceeding the high end of our quarterly revenue guidance, due to strong demand for our Optical Metrology solutions during the quarter," commented Eitan Oppenhaim, President and CEO of Nova. "Our continuous investment in R&D to strengthen our leadership position in Optical Metrology for process control is clearly paying off and leading to increased market share in this high growth market.

"We continue to outpace the industry as we grow our placement in the Foundry segment, with a presence in multiple process steps in all advanced technology nodes. Our recent market share wins, combined with a diversified and enhanced product portfolio, position us very well for a solid start in 2014. The growth of the semiconductor equipment industry is fueled by growing investments in transitioning to advanced technology nodes and complex device structures. These challenging technology transitions require additional optical metrology measurements for better process control. Nova is well positioned to benefit from these trends and to continue its growth trajectory."

2013 Fourth Quarter Results

Total revenues for the fourth quarter of 2013 were $30.2 million, an increase of 37% relative to the fourth quarter of 2012, and an increase of 17% relative to the third quarter of 2013.

Gross margin for the fourth quarter of 2013 was 53%, compared with 50% in the fourth quarter of 2012 and 51% in the third quarter of 2013.

Operating expenses in the fourth quarter of 2013 were $12.0 million, compared with $11.4 million in the fourth quarter of 2012 and $10.9 million in the third quarter of 2013.

On a GAAP basis, the company reported net income of $3.1 million, or $0.11 per diluted share, in the fourth quarter of 2013. This compares to a net income of $2.5 million, or $0.09 per diluted share, in the fourth quarter of 2012, and a net income of $2.2 million, or $0.08 per diluted share, in the third quarter of 2013.

On a Non-GAAP basis, which excludes adjustments of deferred taxes, stock based compensation expenses and loss related to equipment and inventory damage, the company reported net income of $4.1 million, or $0.15 per diluted share, in the fourth quarter of 2013. This compares to a net income of $1.0 million, or $0.04 per diluted share, in the fourth quarter of 2012, and a net income of $2.7 million, or $0.10 per diluted share, in the third quarter of 2013.

2013 Full Year Results

Total revenues for 2013 were $111.5 million, compared to total revenues of $96.1 million for 2012.

Gross margin in 2013 was 53%, compared to 53% in 2012.

Operating expenses in 2013 were $46.7 million, compared to $40.6 million in 2012.

On a GAAP basis, the company reported net income of $10.5 million in 2013, or $0.38 per diluted share. This compares to a net income of $11.8 million, or $0.43 per diluted share, in 2012.

On a Non-GAAP basis, which excludes adjustments of deferred taxes, stock based compensation expenses, income from insurance claim and loss related to equipment and inventory damage, the company reported net income $14.1 million in 2013, or $0.52 per diluted share. This compares to a net income of $14.2 million, or $0.52 per diluted share, in 2012.

During 2013, the company generated $11.0 million in cash flow from operating activities, as compared to $7.7 million cash flow generated from operating activities in 2012.

Total cash reserves at the end of 2013 were $99.7 million, compared to $91.4 million at the end of 2012.

Conference Call Information

Nova will host a conference call on Tuesday, February 18, 2014 at 8:30 a.m. Eastern Time, to discuss the fourth quarter results and future outlook, along with its guidance for the first quarter of 2014.

To attend the conference call, please dial one of the following teleconferencing numbers. Please begin by placing your calls 5 minutes before the conference call commences. If you are unable to connect using the toll-free numbers, please try the international dial-in number.

U.S. Dial-in Number: 1-877-941-1427 ISRAEL Dial-in Number: 1809-21-4368           INTERNATIONAL Dial-in Number: 1-480-629-9664 At: 8:30 a.m. Eastern Time 5:30 a.m. Pacific Time 3:30 p.m. Israeli Time

The conference call will also be webcast live from a link on Nova's website at http://ir.novameasuring.com. For those unable to participate in the conference call, there will be a replay 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 related to equipment and inventory damage, income from insurance claim 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; 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 the extremely competitive market we are operation in; our dependency on a small number of large customers and small number of suppliers; 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; new product offerings from our competitors; 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:

Dror David, Chief Financial Officer

Nova Measuring Instruments Ltd.

Tel: +972-73-229-5833

E-mail: info@novameasuring.com

www.novameasuring.com

Investor Relations Contacts:

Hayden/ MS-IR LLC

Miri Segal

Tel: +917-607-8654

E-mail: msegal@ms-ir.com

Or

David Fore

Tel: +206-395-2711

E-mail: dave@haydenir.com

 

(Tables to Follow)

 

NOVA MEASURING INSTRUMENTS LTD.

CONSOLIDATED BALANCE SHEET

(U.S. dollars in thousands)

As of December 31,

As of December 31,

2013

2012

CURRENT ASSETS

    Cash and cash equivalents

17,542

15,963

Short-term interest-bearing bank deposits

79,552

75,039

Available for sale securities

1,845

--

Trade accounts receivable

27,947

17,362

Inventories

18,118

17,827

Deferred income tax assets

137

1,850

Other current assets

3,922

2,549

149,063

130,590

LONG-TERM ASSETS

Long-term interest-bearing bank deposits

750

405

Other long-term assets

230

516

Severance pay funds

1,852

1,873

2,832

2,794

FIXED ASSETS, NET

10,382

8,660

TOTAL ASSETS

162,277

142,044

CURRENT LIABILITIES

Trade accounts payable

15,599

10,819

Deferred income

3,420

4,775

Other current liabilities

11,448

8,444

30,467

24,038

LONG-TERM LIABILITIES

Liability for employee severance pay

2,798

2,806

Deferred income

341

159

Other long-term liability

7

270

3,146

3,235

SHAREHOLDERS' EQUITY

128,664

114,771

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

162,277

142,044

 

 

NOVA MEASURING INSTRUMENTS LTD.

QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS

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

Three months ended

December 31, 2013

September 30, 2013

December 31, 2012

REVENUES

Products

24,739

19,911

17,016

Services

5,450

5,860

5,082

30,189

25,771

22,098

COST OF REVENUES

Products

10,299

9,045

7,390

Services

4,018

3,626

3,644

14,317

12,671

11,034

GROSS PROFIT

15,872

13,100

11,064

OPERATING EXPENSES

Research and Development expenses, net

7,491

7,021

7,117

Sales and Marketing expenses

3,128

2,643

3,102

General and Administration expenses

1,350

1,256

1,191

11,969

10,920

11,410

OPERATING PROFIT (LOSS)

3,903

2,180

(346)

INTEREST INCOME, NET

60

257

337

INCOME (LOSS) BEFORE INCOME TAXES

3,963

2,437

(9)

    INCOME TAX  BENEFIT (EXPENSES)

(886)

(197)

2,481

NET INCOME FOR THE PERIOD

3,077

2,240

2,472

Earnings per share:

       Basic

0.11

0.08

0.09

       Diluted

0.11

0.08

0.09

Shares used for calculation of earnings per share:

       Basic

27,268

27,237

26,679

       Diluted

27,548

27,503

27,317

 

 

NOVA MEASURING INSTRUMENTS LTD.

ANNUAL CONSOLIDATED STATEMENTS OF OPERATIONS

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

Year ended

December 31, 2013

December 31, 2012

REVENUES

Products

89,410

77,212

Services

22,099

18,956

111,509

96,168

COST OF REVENUES

Products

37,765

31,734

Services

14,673

13,280

52,438

45,014

GROSS PROFIT

59,071

51,154

OPERATING EXPENSES

Research & Development expenses, net

29,578

24,594

Sales & Marketing expenses

11,963

11,998

General & Administration expenses

5,197

3,978

46,738

40,570

OPERATING PROFIT

12,333

10,584

INTEREST INCOME, NET

693

1,368

INCOME BEFORE INCOME TAXES

13,026

11,952

    INCOME TAX EXPENSES

2,511

124

NET INCOME FOR THE YEAR

10,515

11,828

Net income per share:

       Basic

0.39

0.44

       Diluted

0.38

0.43

Shares used for calculation of net income per share:

       Basic   

27,091

26,619

       Diluted 

27,373

27,277

 

 

NOVA MEASURING INSTRUMENTS LTD.

QUARTERLY CONSOLIDATED STATEMENTS OF CASH FLOWS

(U.S. dollars in thousands)

Three months ended

December 31,

2013

September 30,

2013

December 31,

2012

CASH FLOW – OPERATING ACTIVITIES

Net income for the period

3,077

2,240

2,472

 

Adjustments to reconcile net income to net cash

   provided by operating activities:

       Depreciation and amortization

945

907

858

       Loss related to equipment and inventory damage

-

-

509

       Amortization of deferred stock-based compensation

518

368

609

       Increase (decrease) in liability for employee

           termination benefits, net

 

(37)

 

(1)

 

104

       Deferred income taxes

460

116

(1,806)

       Increase in trade accounts receivables

(7,118)

(1,112)

(2,461)

       Decrease (increase) in inventories

(1,950)

144

143

       Decrease (increase) in other current

          and long term Assets

(291)

 

(1,064)

250

       Increase (decrease) in trade accounts  payables

          and other long-term liabilities

 

4,489

 

250

 

(2,392)

       Increase in other current liabilities

1,600

614

414

       Increase (decrease) in short and long term

          deferred income

(234)

793

207

Net cash provided by (used in) operating activities

1,459

3,255

(1,093)

CASH FLOW – INVESTMENT ACTIVITIES

Decrease (increase) in short-term interest-bearing

     bank deposits

 

4,367

 

(4,548)

 

(18,110)

Decrease (increase) in long-term interest-bearing

     bank deposits

 

(345)

 

-

 

140

Investment in short-term available for sale securities

(1,845)

-

-

Proceeds from short-term held to maturity securities

-

-

1,554

Additions to fixed assets

(1,974)

(761)

(1,512)

Net cash provided by (used in) investment activities

203

(5,309)

(17,928)

CASH FLOW – FINANCING ACTIVITIES

Shares issued under employee share-based plans

123

12

12

Net cash provided by financing activities

123

12

12

Increase (decrease) in cash and cash equivalents

1,785

(2,042)

(19,009)

Cash and cash equivalents – beginning of period

15,757

17,799

34,972

Cash and cash equivalents – end of period

17,542

15,757

15,963

 

 

NOVA MEASURING INSTRUMENTS LTD.

ANNUAL CONSOLIDATED STATEMENTS OF CASH FLOWS

(U.S. dollars in thousands)

Year ended

December 31, 2013

December 31, 2012

CASH FLOW – OPERATING ACTIVITIES

Net income for the year

10,515

11,828

 

Adjustments to reconcile net income to net cash

    provided by operating activities:

         Depreciation and amortization

3,522

2,783

         Loss related to equipment and inventory damage

148

509

         Amortization of deferred stock-based compensation

2,095

1,927

         Increase (decrease) in liability for employee

            termination benefits, net

 

17

 

(27)

         Deferred income taxes

1,898

694

         Increase in trade accounts receivables

(10,585)

(3,960)

         Increase in inventories

(1,783)

(10,513)

         Increase in other current and long term assets

(1,234)

(467)

         Increase in trade accounts payables and other

            long term liabilities

 

4,517

 

2,510

         Increase in other current liabilities

3,054

283

         Increase (decrease) in short and long term deferred income

(1,173)

2,151

Net cash provided by operating activities

10,991

7,718

CASH FLOW – INVESTMENT ACTIVITIES

Increase in short-term interest-bearing bank deposits

(4,513)

(8,792)

Decrease (increase) in long-term interest-bearing bank deposits

(345)

140

Investment in short-term available for sale securities

(1,845)

-

Proceeds from short-term held to maturity securities

-

1,582

Reimbursement from insurance claim

219

-

Additions to fixed assets

(4,119)

(3,660)

Net cash used in investment activities

(10,603)

(10,730)

CASH FLOW – FINANCING ACTIVITIES

Shares issued under employee share-based plans

1,191

259

Net cash provided by financing activities

1,191

259

Increase (decrease) in cash and cash equivalents

1,579

(2,753)

Cash and cash equivalents – beginning of period

15,963

18,716

Cash and cash equivalents – end of period

17,542

15,963

 

 

DISCLOSURE OF NON-GAAP NET INCOME

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

Three months ended

December 31,

September 30,

December 31,

2013

2013

2012

GAAP Net income for the period

3,077

2,240

2,472

Non-GAAP Adjustments:

Stock based compensation expenses

518

368

609

Deferred income tax expenses (benefit)

460

116

(2,553)

Loss related to equipment and inventory damage

-

-

509

Non-GAAP Net income for the period

4,055

2,724

1,037

Non-GAAP Net income per share:

Basic

0.15

0.10

0.04

Diluted

0.15

0.10

0.04

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

Basic

27,268

27,237

26,679

Diluted

27,548

27,503

27,317

Year ended

December 31,

December 31,

2013

2012

GAAP Net income for the year

10,515

11,828

Non-GAAP Adjustments:

Stock based compensation expenses

2,095

1,927

Deferred income taxes expenses (income)

1,898

(53)

Income from insurance claim

(509)

-

Loss related to equipment and inventory damage

148

509

Non-GAAP Net income for the year

14,147

14,211

Non-GAAP Net income per share:

Basic

0.52

0.53

Diluted

0.52

0.52

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

Basic

27,091

26,619

Diluted

27,373

27,277

 

SOURCE Nova Measuring Instruments Ltd.



RELATED LINKS

http://www.novameasuring.com