Nova Measuring Instruments Announces 2003 First Quarter Results

    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 : info@nova.co.il
      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.

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