REHOVOTH, Israel, May 19 /PRNewswire-FirstCall/ -- Nova Measuring Instruments, Ltd. (Nasdaq: NVMI), today reported results for the first quarter of 2003. 2003 First Quarter Results Total revenues for the first quarter of 2003 were $4.8 million, a 20% increase over revenues of $4.0 million reported for the first quarter of 2002, and a 14% sequential decrease over revenues of $5.6 million for the fourth quarter of 2002. The Company reported gross profit of $1.5 million (32% of revenues) compared with gross profit of $1.3 million (33% of revenues) for the first quarter of 2002 and gross profit of $1.8 million (32% of revenues) sequentially. Net loss for the quarter was $(2.6) million, or $(0.17) per share, compared with a net loss in the first quarter of 2002 of $(4.9) million, or $(0.34) per share and a net loss of $(2.5) million, or $(0.17) per share sequentially. First quarter 2003 results include stock-based compensation expenses of $0.2 million. Excluding these expenses, net loss was $(0.16) per share. Research and development expenses were $2.2 million (45% of revenues) compared with $2.7 million (67% of revenues) in the first quarter of 2002 and $2.2 million (40% of revenues) sequentially. Sales and marketing expenses were $1.5 million (32% of revenues) compared with $1.6 million (40% of revenues) in the first quarter of 2002 and $1.7 million (31% of revenues) sequentially. Dr. Giora Dishon, President & CEO of Nova commented, "As we have experienced over the last 3-4 years, the first quarter of the year tends to be the more difficult one. We did anticipate it for this year, we did much better than in the first quarter of 2002, and the results are better than our plans. We succeeded to continue to lead the IPC market with a market share of over 70%, gaining several major wins in Japan and Asia Pacific, each with mutiple sales (up to 8 system in a site). We also sold systems of our new products for Copper CMP, and saw the first sale of the NovaScan CD for Etch application. According to Dataquest, a leading market research company, the market segments of copper and OCD is expected to significantly outgrow the 15% forecasted growth for Wafer Front-end Equipment (WFE) market in 2003, and the CAGR for the following years. About 70% of our sales were for 300mm systems, strengthening our position as we move forward towards the next upturn in the industry, which we believe will be dominated by 300mm manufacturing equipment." Dr. Dishon concluded, "We are encouraged by the sales of the Copper and NovaScan CD system and believe that we will see a gradual increase in demand for these systems, which will provide an upside opportunity for the Company. We continue to manage our business looking towards the future growth of the company, whilst reducing the operations costs and reducing the losses. This, together with our strong balance sheet and cash position, will enable us to leverage from the industry's continuous technological advances -- its progress toward smaller design rules and copper, from the transition to 300mm manufacturing, and from the upturn, when it arrives, enhanced with the anticipated fast growth of the IPC market." About Nova Nova Measuring Instruments Ltd. develops, designs and produces integrated process control systems in the semiconductor manufacturing industry. Nova provides a broad range of integrated process control solutions that link between different semiconductor processes and process equipment. The Company's website is www.nova.co.il. This press release may contain forward-looking statements, including statements related to anticipated growth rates, manufacturing capacity and tax rate. Actual results may differ materially from those projected due to a number of risks, including 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, or changes in tax requirements. Nova 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 Form F-1 filed with the Securities and Exchange Commission on April 9, 2000. 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. Nova Measuring Instruments Ltd. Interim Consolidated Statement of Operations (U.S. dollars in thousands, except share and per share data) Three months ended March 31, December 31, 2003 2002 (unaudited) REVENUES Product sales 3,604 4,476 Services 1,169 1,097 4,773 5,573 COST OF REVENUES Product sales 1,858 2,224 Services 1,405 1,553 3,263 3,777 GROSS PROFIT 1,510 1,796 OPERATING COSTS AND EXPENSES Research & Development expenses, net 2,152 2,228 Sales & Marketing expenses 1,509 1,735 General & Administration expenses 585 489 4,246 4,452 OPERATING LOSS (2,736) (2,656) FINANCING EXPENSES 148 168 LOSS (2,588) (2,488) LOSS PER SHARE (0.17) (0.17) Comments: 1. Employee Stock Based Compensation expenses 167 160 2. Shares for calculation of loss per share Basic and Diluted 14,931 14,930 3. The adjusted results excluding Employee Stock Based Compensation Gross Profit 1,530 1,815 Operating Expenses 4,099 4,311 Loss (2,421) (2,328) Loss per share (0.16) (0.16) Nova Measuring Instruments Ltd. Interim Consolidated Statement of Operations (U.S. dollars in thousands, except share and per share data) Three months ended March 31, March 31, 2003 2002 (unaudited) REVENUES Product sales 3,604 2,545 Services 1,169 1,453 4,773 3,998 COST OF REVENUES Product sales 1,858 1,003 Services 1,405 1,710 3,263 2,713 GROSS PROFIT 1,510 1,285 OPERATING COSTS AND EXPENSES Research & Development expenses, net 2,152 2,436 Technology in use for research and development -- 1,478 Sales & Marketing expenses 1,509 1,605 General & Administration expenses 585 499 4,246 6,339 OPERATING LOSS (2,736) (5,054) FINANCING EXPENSES 148 140 LOSS (2,588) (4,914) LOSS PER SHARE (0.17) (0.34) Comments: 1. Employee Stock Based Compensation expenses 167 363 2. Shares for calculation of loss per share Basic and Diluted 14,931 14,651 3. The adjusted results excluding Employee Stock Based Compensation: Gross Profit 1,530 1,329 Operating Expenses 4,099 6,020 Loss (2,421) (4,551) Loss per share (0.16) (0.31) Nova Measuring Instruments Ltd. Interim Consolidated Balance Sheet (U.S. dollars in thousands) As of As of March 31, December 31, 2003 2002 CURRENT ASSETS Cash and cash equivalents 33,557 36,694 Short-term interest-bearing deposits 650 622 Held to maturity securities 994 994 Trade accounts receivable 3,458 2,663 Inventories 2,764 3,150 Other current assets 1,202 1,137 42,625 45,530 LONG-TERM ASSETS Severance pay funds 1,748 1,701 Fixed assets, net 1,667 1,777 3,415 3,478 46,040 49,008 CURRENT LIABILITIES Trade accounts payable 3,016 3,340 Other current liabilities 7,273 7,616 10,289 10,956 LONG-TERM LIABILITIES Liability for employee termination benefits 2,322 2,162 Other long-term liability 173 213 2,495 2,375 SHAREHOLDERS' EQUITY Share capital 46 46 Additional paid- in capital 72,508 72,614 Deferred stock-based compensation (536) (809) Accumulated deficit (38,762) (36,174) 33,256 35,677 46,040 49,008 Company Contact: Chai Toren, CFO and Vice President Finance Nova Measuring Instruments Ltd. Tel: 972-8-938-7505 E-mail : email@example.com http://www.nova.co.il Investor Relations Contact: Ehud Helft, or Kenny Green Gal IR International +1-866-704-6710 Email : Ehud.Helft@galir.com or Kenny.Green@galir.com
SOURCE Nova Measuring Instruments Ltd.