Nova Announces 2011 Third Quarter Results
REHOVOT, Israel, November 1, 2011 /PRNewswire/ --
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 third quarter results.
Highlights for the Third Quarter of 2011
- Quarterly revenues of $25.8 million, up 7% year over year
- Gross margin of 55%
- Net margin of 23%
- Quarterly net income of $5.9 million, or $0.22 per diluted share
- Positive cash flow from operating activities of $5.9 million
- Total cash reserves reached a record level of $83.7 million
Management Comments
"During the third quarter we continued to demonstrate solid financial performance with significant net income and positive cash flow, and the stage is now set for our full year results to show record revenue levels of around $100 million," said Gabi Seligsohn, President and CEO of Nova. "This achievement, combined with excellent profitability and positive cash flow, is a direct result of our technology leadership and market share gains built over the last several years."
"The pace of business during the second half of 2011 is slow and the macro-economic concerns are weighing on our customers' spending. Short term visibility at this time is also very limited. Under these circumstances, the transition to next generation design rules of below 30nm has been slower than originally expected in foundry and memory segments, and several projects have been delayed. However, in light of end-user market demand and ongoing announcements of new mobile devices, the transition cannot be held off much longer, and our leading customers are already preparing limited capacity to deal with these requirements."
"Through continued close collaboration with our customers and the introduction of new products and capabilities, we have already been supplying tools to several of these next generation manufacturing and development processes, securing our ability to participate in their ramp up when the general economic status improves. We plan to continue and cultivate these collaborations as they are the key to securing our long term growth plans".
2011 Fourth Quarter Guidance
For the fourth quarter of 2011, management expects revenues of $16-$19 million, with net profitability of 1%-8%.
In terms of the company's 2011 annual results, this guidance implies record annual revenues of $100M-$103M and record annual net income of $23M-$25M.
2011 Third Quarter Results
Total revenues for the third quarter of 2011 were $25.8 million, an increase of 7% relative to the third quarter of 2010, and a decrease of 13% relative to the second quarter of 2011.
Gross margin for the third quarter of 2011 was 55%, compared with 56% in the third quarter of 2010 and 58% in the second quarter of 2011.
Operating expenses in the third quarter of 2011 were $8.4 million, compared with $6.4 million in the third quarter of 2010 and $8.2 million in the second quarter of 2011.
The company reported net income of $5.9 million, or $0.22 per diluted share, in the third quarter of 2011. This compares to a net income of $7.3 million, or $0.27 per diluted share, in the third quarter of 2010, and a net income of $9.2 million, or $0.34 per diluted share, in the second quarter of 2011.
The company generated $5.9 million in cash from operating activities during the third quarter of 2011. Total cash reserves at the end of the third quarter of 2011 were $83.7 million.
The Company will host a conference call today, November 1, 2011, at 9:00am ET. To participate, please dial in the US: 1 866 564 0425; or internationally: +972-3-721 7906 / +1 646 254 3374. 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 September 30, As of December 31,
___________________ __________________
2011 2010
___________________ __________________
CURRENT ASSETS
Cash and cash equivalents 7,682 25,394
Short-term interest-bearing
bank deposits 74,291 35,562
Held to maturity securities 1,100 --
Trade accounts receivable 12,121 13,162
Inventories 11,370 10,849
Other current assets 1,237 1,736
_______ ______
107,801 86,703
_______ ______
LONG-TERM ASSETS
Long-term interest-bearing
bank deposits 631 631
Other Long-term assets 311 163
Severance pay funds 2,970 2,786
_______ ______
3,912 3,580
_______ ______
FIXED ASSETS, NET 5,099 3,094
_______ ______
Total assets 116,812 93,377
======= ======
CURRENT LIABILITIES
Trade accounts payable 7,985 9,956
Deferred income 2,247 3,397
Other current liabilities 7,451 7,908
_______ ______
17,683 21,261
_______ ______
LONG-TERM LIABILITIES
Liability for employee
severance pay 3,996 3,709
Deferred income 823 -
Other long-term liability 14 23
_______ ______
4,833 3,732
_______ ______
SHAREHOLDERS' EQUITY 94,296 68,384
_______ ______
Total liabilities and
shareholders' equity 116,812 93,377
======= ======
NOVA MEASURING INSTRUMENTS LTD.
QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except per share data)
Three months ended
__________________
September June September
30, 30, 30,
2011 2011 2010
_________ ________ _________
REVENUES
Product sales 21,382 24,989 20,350
Services 4,438 4,658 3,860
_________ ________ _________
25,820 29,647 24,210
_________ ________ _________
COST OF REVENUES
Products 8,921 9,698 8,182
Services 2,782 2,833 2,542
_________ ________ _________
11,703 12,531 10,724
--------- -------- ---------
GROSS PROFIT 14,117 17,116 13,486
_________ ________ _________
OPERATING EXPENSES
Research & Development expenses,
net 4,627 4,516 2,783
Sales & Marketing expenses 2,933 2,778 2,810
General & Administration
expenses 809 945 795
_________ ________ _________
8,369 8,239 6,388
_________ ________ _________
OPERATING PROFIT 5,748 8,877 7,098
INTEREST INCOME, NET 189 286 176
_________ ________ _________
NET INCOME FOR THE PERIOD 5,937 9,163 7,274
========= ======== =========
Net income per share:
Basic 0.23 0.35 0.29
========= ======== =========
Diluted 0.22 0.34 0.27
========= ======== =========
Shares used for calculation of
net income per share:
Basic 26,334 26,250 25,008
========= ======== =========
Diluted 27,079 27,176 26,478
========= ======== =========
NOVA MEASURING INSTRUMENTS LTD.
YEAR TO DATE CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except per share data)
Nine-months ended
September 30, 2011 September 30, 2010
__________________ __________________
REVENUES
Product sales 70,289 49,140
Services 13,347 10,491
______ ______
83,636 59,631
------ ------
COST OF REVENUES
Product sales 27,817 20,214
Services 8,350 7,383
______ ______
36,167 27,597
______ ______
GROSS PROFIT 47,469 32,034
______ ______
OPERATING EXPENSES
Research &
Development
expenses, net 14,110 8,165
Sales & Marketing
expenses 8,422 7,248
General &
Administration
expenses 2,483 2,125
______ ______
25,015 17,538
______ ______
OPERATING PROFIT 22,454 14,496
INTEREST INCOME,
NET 694 186
______ ______
NET INCOME FOR THE
PERIOD 23,148 14,682
______ ______
Net income per
share:
Basic 0.88 0.61
______ ______
Diluted 0.86 0.57
______ ______
Shares used for
calculation of net
income per share:
Basic 26,182 24,182
_______ _______
Diluted 27,010 25,540
_______ _______
NOVA MEASURING INSTRUMENTS LTD.
QUARTERLY CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
Three months ended
__________________
September 30, June 30, September 30,
____________ __________ _____________
2011 2011 2010
____ ____ ____
CASH FLOW - OPERATING
ACTIVITIES
Net income for the
period 5,937 9,163 7,274
Adjustments to
reconcile net income
to net cash provided by operating
activities:
Depreciation and
amortization 420 377 354
Amortization of
deferred stock-based
compensation 421 272 215
Increase (decrease) in
liability for employee
termination benefits,
net (94) 203 (10)
Decrease (increase) in
trade accounts
receivables 7,554 (4,835) (1,670)
Decrease (increase) in
inventories 1,499 (2,240) (2,065)
Decrease (increase) in
other short and long
term assets 726 (33) (776)
Increase (decrease) in
trade accounts
payables and other
long term liabilities (3,967) (667) 2,095
Increase (decrease) in
other current
liabilities (642) (502) 1,738
Increase (decrease) in
short and long term
deferred income (5,966) 5,266 746
_______ _______ _______
Net cash provided by
operating activities 5,888 7,004 7,901
------- ------- -------
CASH FLOW - INVESTMENT
ACTIVITIES
Increase in short-term
interest-bearing bank
deposits (9,000) (9,426) (3,934)
Increase (decrease) in
short term held to
maturity securities 86 (1,186) --
Additions to fixed
assets (460) (539) (453)
_______ ________ _______
Net cash used in
investment activities (9,374) (11,151) (4,387)
------- -------- -------
CASH FLOW - FINANCING
ACTIVITIES
Shares issued under
employee share-based
plans 104 225 625
_______ _______ _______
Net cash provided by
financing activities 104 225 625
------- ------- -------
Increase (decrease) in
cash and cash
equivalents (3,382) (3,922) 4,139
Cash and cash
equivalents -
beginning of period 11,064 14,986 6,838
_______ _______ _______
Cash and cash
equivalents - end of
period 7,682 11,064 10,977
======= ======= =======
NOVA MEASURING INSTRUMENTS LTD.
YEAR TO DATE CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
Nine months ended
__________________
September 30, 2011 September 30, 2010
__________________ __________________
CASH FLOW - OPERATING
ACTIVITIES
Net income for the period 23,148 14,682
Adjustments to reconcile
net income to net cash
provided by operating
activities:
Depreciation and
amortization 1,159 1,001
Amortization of deferred
stock-based compensation 959 453
Increase in liability for
employee termination
benefits, net 103 143
Decrease (increase) in
trade accounts receivables 1,041 (978)
Increase in inventories (2,010) (6,187)
Increase in other short
and long term assets (390) (1,423)
Increase (decrease) in
trade accounts payables
and other long term
liabilities (1,971) 4,929
Increase (decrease) in
current liabilities (466) 1,762
Increase (decrease) in
short and long term
deferred income (327) 4,763
_______ ______
Net cash provided by
operating activities 21,246 19,145
------- ------
CASH FLOW - INVESTMENT
ACTIVITIES
Increase in short-term
interest-bearing bank
deposits (38,729) (34,621)
Investment in short term
held to maturity
securities (1,100) --
Investment in long-term
deposits -- (9)
Additions to fixed assets (1,675) (1,165)
________ ________
Net cash used in
investment activities (41,504) (35,795)
-------- --------
CASH FLOW - FINANCING
ACTIVITIES
Shares issued under
employee share-based plans
and exercise of warrants 2,546 798
Shares issued in public
offering -- 16,968
________ ________
Net cash provided by
financing activities 2,546 17,766
-------- --------
Increase (decrease) in
cash and cash equivalents (17,712) 1,116
Cash and cash equivalents
- beginning of period 25,394 9,861
________ ________
Cash and cash equivalents
- end of period 7,682 10,977
======== ========
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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