Nova Announces 2011 First Quarter Results
Record Bookings and Backlog Solidify Continued Growth
REHOVOT, Israel, May 4, 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 2011 first quarter results.
Highlights for the First Quarter of 2011
- Quarterly revenues of $28.2 million, up 76% year over year
- Gross margin of 57.6%
- Net margin of 28.6%
- Record quarterly net income of $8.1 million, or $0.30 per diluted share
- Positive cash flow from operating activities of $8.4 million
- Record quarterly bookings and backlog
Management Comments
"The first quarter of 2011 marked an excellent start to the year," said Gabi Seligsohn, President and CEO of Nova. "Not only did we continue to break records in all our financial metrics, we also achieved all time record bookings in each of our product lines."
"On the stand alone metrology front, the doubling of our customer base during 2010 is definitely paying off. Stand alone bookings during the first quarter reached all time record high levels, mostly as a result of repeat orders from our expanded customer base. As mentioned on several occasions, Optical CD has become an enabling technology at smaller geometries and accordingly the larger part of our orders these days come from the 2X and 3X technology nodes, supporting both the front end and back end of semiconductor manufacturing."
"In order to defend our expanding base and further penetrate certain customers, we must invest strategically and remain at the forefront in terms of features and performance. Fortunately, we are well-positioned to do this and we are refining our plans to take Nova to the next level via strategic investments and enhanced R&D activities. While we are extremely proud of our disciplined management efforts that enabled us to report above-target profitability, we continue to believe that our target model of 20-25% net margin is still the right one over the long-term."
2011 Second Quarter Guidance
For the second quarter of 2011, management expects revenues of $28.5-$31.0 million, with net profitability of 27%-30%.
2011 First Quarter Results
Total revenues for the first quarter of 2011 were $28.2 million, an increase of 76% relative to the first quarter of 2010, and an increase of 4% relative to the fourth quarter of 2010.
Gross margin for the first quarter of 2011 was 57.6%, compared with 50.8% in the first quarter of 2010 and 57.0% in the fourth quarter of 2010.
Operating expenses in the first quarter of 2011 were $8.4 million, compared with $5.4 million in the first quarter of 2010 and $8.0 million in the fourth quarter of 2010.
The company reported net income of $8.1 million, or $0.30 per diluted share, in the first quarter of 2011. This compares to a net income of $2.7 million, or $0.11 per diluted share, in the first quarter of 2010, and a net income of $7.5 million, or $0.28 per diluted share, in the fourth quarter of 2010.
The company generated $8.4 million in cash from operating activities during the first quarter of 2011. Total cash reserves at the end of the first quarter of 2011 were $71.5 million.
The Company will host a conference call today, May 4, 2011, at 9:00am ET. To participate, please dial in the US: 1 888 935 4575; or internationally: +972-3-721 9509. 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.
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 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 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; our ability to retain our competitive position despite the ongoing consolidation in our industry; 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; 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 31,2010 filed with the Securities and Exchange Commission on March 30, 2011. 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.
CONSOLIDATED BALANCE SHEET
(U.S. dollars in thousands)
As of As of
March 31, December 31,
2011 2010
CURRENT ASSETS
Cash and cash equivalents 14,986 25,394
Short-term interest-bearing bank
deposits 55,865 35,562
Trade accounts receivable 14,840 13,162
Inventories 11,877 10,849
Other current assets 2,560 1,736
100,128 86,703
LONG-TERM ASSETS
Long-term interest-bearing bank
deposits 631 631
Other Long-term assets 261 163
Severance pay funds 2,959 2,786
3,851 3,580
FIXED ASSETS, NET 3,649 3,094
Total assets 107,628 93,377
CURRENT LIABILITIES
Trade accounts payable 12,620 9,956
Deferred income 3,770 3,397
Other current liabilities 8,588 7,908
24,978 21,261
LONG-TERM LIABILITIES
Liability for employee severance pay 3,876 3,709
Other long-term liability 20 23
3,896 3,732
SHAREHOLDERS' EQUITY 78,754 68,384
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY 107,628 93,377
NOVA MEASURING INSTRUMENTS LTD.
QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except per share data)
Three months ended
March 31, December 31, March 31,
2011 2010 2010
REVENUES
Products 23,918 22,650 12,901
Services 4,251 4,339 3,080
28,169 26,989 15,981
COST OF REVENUES
Product sales 9,198 8,842 5,478
Services 2,735 2,765 2,389
11,933 11,607 7,867
GROSS PROFIT 16,236 15,382 8,114
OPERATING EXPENSES
Research and Development
expenses, net 4,967 4,280 2,554
Sales and Marketing
expenses 2,711 2,885 2,196
General and Administration
expenses 729 843 651
8,407 8,008 5,401
OPERATING PROFIT 7,829 7,374 2,713
Finance income (expenses),
net 219 119 (14)
NET INCOME FOR THE PERIOD 8,048 7,493 2,699
Earnings per share:
Basic 0.31 0.30 0.12
Diluted 0.30 0.28 0.11
Shares used for calculation of
earnings per share:
Basic 25,960 25,248 22,666
Diluted 27,020 26,762 24,236
NOVA MEASURING INSTRUMENTS LTD.
QUARTERLY CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
Three months ended
March 31, December 31, March 31,
2011 2010 2010
CASH FLOW - OPERATING ACTIVITIES
Net income for the period 8,048 7,493 2,699
Adjustments to reconcile net
income to net cash
provided by operating
activities:
Depreciation and amortization 362 259 324
Amortization of deferred
stock-based compensation 266 257 116
Increase (decrease) in liability
for employee termination benefits,
net (6) (35) 48
Decrease (increase) in trade
accounts receivables (1,678) (639) 625
Increase in inventories (1,269) (1,339) (2,267)
Decrease (increase) in other
current and long term
assets (1,083) 1,620 (260)
Increase in trade accounts
payables and other long-term
liabilities 2,663 1,313 2,545
Increase (decrease) in other
current liabilities 678 978 (1,105)
Increase (decrease) in short and
long term deferred income 373 (3,220) 2,248
Net cash provided by operating
activities 8,354 6,687 4,973
CASH FLOW - INVESTMENT
ACTIVITIES
Decrease (increase) in
short-term interest-bearing
bank deposits (20,303) 7,666 (19,986)
Investments in long-term
interest-bearing
bank deposits -- (61) (9)
Additions to fixed assets (676) (400) (405)
Net cash provided by (used in)
investment activities (20,979) 7,205 (20,400)
CASH FLOW - FINANCING ACTIVITIES
Shares issued in public offering -- -- 16,968
Shares issued under employee
share-based plans
and exercise of warrants 2,217 525 122
Net cash provided by financing
activities 2,217 525 17,090
Increase (decrease) in cash and
cash equivalents (10,408) 14,417 1,663
Cash and cash equivalents -
beginning of period 25,394 10,977 9,861
Cash and cash equivalents - end
of period 14,986 25,394 11,524
Company Contact:
Dror David, Chief Financial Officer
Nova Measuring Instruments Ltd.
Tel: +972-8-938-7505
E-mail: [email protected]
http://www.nova.co.il
Investor relations Contacts:
Ehud Helft / Kenny Green
CCG Investor Relations
Tel: +1-646-201-9246
E-mail: [email protected]
SOURCE Nova Measuring Instruments Ltd
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