REHOVOT, Israel, February 15, 2011 /PRNewswire-FirstCall/ -- 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 2010 fourth quarter and full year financial results.
Highlights for the Fourth Quarter of 2010 - Quarterly revenues of $27.0 million, up 77% year over year - Gross margin of 57.0% - Record quarterly net income of $7.5 million, or $0.28 per diluted share - Positive cash flow from operating activities of $6.7 million Highlights for the Full Year 2010 - Revenues of $86.6 million, up 120% year over year - Products revenues of $71.8 million, up 142% year over year - Gross margin of 54.7%, up from 44.7% in 2009 - Record net income of $22.2 million, or $0.86 per diluted share - Positive operating cash flow of $25.8 million - Doubled Stand Alone Optical CD customer base
"The fourth quarter and 2010 as a whole were excellent by any metric", commented Gabi Seligsohn, President and CEO of Nova. "For the second consecutive year, we continued to outperform the industry by solid execution of our strategic plans. We implemented adjustments to our business model in integrated metrology; we continued our penetration of the stand alone metrology market and doubled our customer base; we improved the performance of our services business and, finally, we identified attractive new areas for growth in new process technologies".
"In order to maintain our current strong margins on significantly higher revenues over the long term, we continued to step up our research and development expenses and capital expenditures during the fourth quarter, and this investment will continue during 2011. Through our strategic investments, we believe we will succeed in expanding our share of currently served market segments by introducing next generation solutions and adding applications at existing customer sites. In addition, we expect to expand our total addressable market to close to $1 billion over the next few years, by introducing solutions for new process technologies that our customers are currently developing. These steps are the cornerstones of our strategy that will enable us to continue to outperform the overall market over the long term."
2011 First Quarter Guidance
For the first quarter of 2011, management expects revenues of $27.5-$29.5 million, with net profitability of 25%-28%.
2010 Fourth Quarter Results
Total revenues for the fourth quarter of 2010 were $27.0 million, an increase of 77% relative to the fourth quarter of 2009, and an increase of 11% relative to the third quarter of 2010.
Gross margin for the fourth quarter of 2010 was 57.0%, compared with 48.5% in the fourth quarter of 2009 and 55.7% in the third quarter of 2010.
Operating expenses in the fourth quarter of 2010 were $8.0 million, compared with $4.7 million in the fourth quarter of 2009 and $6.4 million in the third quarter of 2010.
The company reported net income of $7.5 million, or $0.28 per diluted share, in the fourth quarter of 2010. This compares to a net income of $2.7 million, or $0.13 per diluted share, in the fourth quarter of 2009, and a net income of $7.3 million, or $0.27 per diluted share, in the third quarter of 2010.
The company generated $6.7 million in cash from operating activities during the fourth quarter of 2010.
2010 Full Year Results
Total revenues for 2010 were $86.6 million, as compared with total revenues of $39.3 million for 2009.
Gross margin in 2010 was 54.7%, as compared to 44.7% in 2009.
Operating expenses in 2010 were $25.6 million, as compared with $15.1 million in 2009.
Net income in 2010 was $22.2 million, or $0.86 per diluted share, as compared to a net income of $2.6 million, or $0.13 per diluted share, in 2009.
During 2010, the company generated $25.8 million in cash flow from operating activities, as compared to $1.8 million cash flow used for operating activities in 2009.
Total cash reserves at the end of 2010 were $61.6 million, an increase of $42.6 million compared to the end of 2009.
The Company will host a conference call today, February 15, 2011, at 9:30am ET. To participate, please dial in the US: 1-888-935-4575; or internationally: +972-3-721 9509 or 1 212 444 0412. A recording of the call will be available on Nova's website, within 24 hours following the end of the call. In addition, a presentation to accompany the conference call will be available together with a live webcast of the conference call. This will be accessible from a link on Nova's website at http://www.nova.co.il.
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 http://www.nova.co.il.
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 integrated process control 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 OEM suppliers; risks associated with our dependence on a single manufacturing facility; our ability to expand our manufacturing capacity or marketing efforts to support our future growth; our dependency on a small number of large customers and small number of suppliers; 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 31,2009 filed with the Securities and Exchange Commission on March 26, 2010. 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.
(Tables to Follow) NOVA MEASURING INSTRUMENTS LTD. CONSOLIDATED BALANCE SHEE (U.S. dollars in thousands) As of December 31, 2010 2009 CURRENT ASSETS Cash and cash equivalents 25,394 9,861 Short-term interest-bearing bank deposits 35,562 8,607 Trade accounts receivable 13,162 11,545 Inventories 10,849 3,949 Other current assets 1,736 1,728 86,703 35,690 LONG-TERM ASSETS Long-term interest-bearing bank deposits 631 561 Other Long-term assets 163 142 Severance pay funds 2,786 2,368 3,580 3,071 FIXED ASSETS, NET 3,094 2,163 TOTAL ASSETS 93,377 40,924 CURRENT LIABILITIES Trade accounts payable 9,956 3,715 Deferred income 3,397 1,671 Other current liabilities 7,908 5,237 21,261 10,623 LONG-TERM LIABILITIES Liability for employee severance pay 3,709 3,168 Deferred income -- 183 Other long-term liability 23 35 3,732 3,386 SHAREHOLDERS' EQUITY 68,384 26,915 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 93,377 40,924 NOVA MEASURING INSTRUMENTS LTD. QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS (U.S. dollars in thousands, except per share data) Three months ended December 31, September 30, December 31, 2010 2010 2009 REVENUES Products 22,650 20,350 12,646 Services 4,339 3,860 2,594 26,989 24,210 15,240 COST OF REVENUES Product sales 8,842 8,182 5,399 Services 2,765 2,542 2,445 11,607 10,724 7,844 GROSS PROFIT 15,382 13,486 7,396 OPERATING EXPENSES Research and Development expenses, net 4,280 2,783 2,049 Sales and Marketing expenses 2,885 2,810 2,025 General and Administration expenses 843 795 659 8,008 6,388 4,733 OPERATING PROFIT 7,374 7,098 2,663 Finance income, net 119 176 31 NET INCOME FOR THE PERIOD 7,493 7,274 2,694 Earnings per share: Basic 0.30 0.29 0.14 Diluted 0.28 0.27 0.13 Shares used for calculation of earnings per share: Basic 25,248 25,008 19,717 Diluted 26,762 26,478 21,173 NOVA MEASURING INSTRUMENTS LTD. YEAR TO DATE CONSOLIDATED STATEMENTS OF OPERATIONS (U.S. dollars in thousands, except per share data) Year ended December 31, 2010 2009 REVENUES Products 71,790 29,639 Services 14,830 9,679 86,620 39,318 COST OF REVENUES Product sales 29,056 12,732 Services 10,148 8,999 39,204 21,731 GROSS PROFIT 47,416 17,587 OPERATING EXPENSES Research and Development expenses, net 12,445 6,865 Sales and Marketing expenses 10,133 6,014 General and Administration expenses 2,968 2,240 25,546 15,119 OPERATING PROFIT 21,870 2,468 Finance income, net 305 163 NET INCOME FOR THE YEAR 22,175 2,631 Earnings per share: Basic 0.91 0.14 Diluted 0.86 0.13 Shares used for calculation of earnings per share: Basic 24,448 19,473 Diluted 25,692 20,089 NOVA MEASURING INSTRUMENTS LTD. QUARTERLY CONSOLIDATED STATEMENTS OF CASH FLOWS (U.S. dollars in thousands) Three months ended December 31,September 30, December 31, 2010 2010 2009 CASH FLOW - OPERATING ACTIVITIES Net income for the period 7,493 7,274 2,694 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 259 354 347 Amortization of deferred stock-based compensation 257 215 118 Decrease in liability for employee termination benefits, net (35) (10) (187) Increase in trade accounts receivables (639) (1,670) (5,943) Decrease (increase) in inventories (1,339) (2,065) 749 Decrease (increase) in other current and long term assets 1,620 (776) (555) Increase in trade accounts payables and other long-term liabilities 1,313 2,095 2,198 Increase in other current liabilities 978 1,738 1,769 Increase (decrease) in short and long term deferred income (3,220) 746 913 Net cash provided by operating activities 6,687 7,901 2,103 CASH FLOW - INVESTMENT ACTIVITIES Decrease (increase) in short-term interest-bearing bank deposits 7,666 (3,934) (8,560) Investments in long-term interest-bearing bank deposits (61) -- (36) Additions to fixed assets (400) (453) (303) Net cash provided by (used in) investment activities 7,205 (4,387) (8,899) CASH FLOW - FINANCING ACTIVITIES Shares issued under employee share-based plans 525 625 1,111 Net cash provided by financing activities 525 625 1,111 Increase (decrease) in cash and cash equivalents 14,417 4,139 (5,685) Cash and cash equivalents - beginning of period 10,977 6,838 15,546 Cash and cash equivalents - end of period 25,394 10,977 9,861 NOVA MEASURING INSTRUMENTS LTD. YEAR TO DATE CONSOLIDATED STATEMENTS OF CASH FLOWS (U.S. dollars in thousands) Year ended December 31, 2010 2009 CASH FLOW - OPERATING ACTIVITIES Net income for the year 22,175 2,631 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization 1,260 1,254 Amortization of deferred stock-based compensation 710 454 Increase (decrease) in liability for employee Termination benefits, net 108 (159) Increase in trade accounts receivables (1,617) (8,762) Decrease (increase) in inventories (7,526) 2,695 Decrease (increase) in other current and long term assets 197 (421) Increase in trade accounts payables and other long term liabilities 6,242 234 Increase in other current liabilities 2,740 1,169 Increase (decrease) in short and long term deferred income 1,543 (882) Net cash provided by (used in) operating activities 25,832 (1,787) CASH FLOW - INVESTMENT ACTIVITIES Increase in short-term interest-bearing bank deposits (26,955) (8,510) Investments in long-term interest-bearing bank deposits and long-term investments (70) (17) Additions to fixed assets (1,565) (403) Net cash used in investment activities (28,590) (8,930) CASH FLOW - FINANCING ACTIVITIES Shares issued in a public offering 16,968 -- Shares issued under employee share-based plans 1,323 1,253 Net cash provided by financing activities 18,291 1,253 Increase (decrease) in cash and cash equivalents 15,533 (9,464) Cash and cash equivalents - beginning of year 9,861 19,325 Cash and cash equivalents - end of year 25,394 9,861 Company Contact: Investor relations Contacts: Dror David, Chief Financial Officer Ehud Helft / Kenny Green Nova Measuring Instruments Ltd. CCG Investor Relations Tel: +972-8-938-7505 Tel: +1-646-201-9246 E-mail: email@example.com E-mail: firstname.lastname@example.org http://www.nova.co.il
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