REHOVOT, Israel, May 1, 2019 /PRNewswire/ -- Nova (Nasdaq:
NVMI) today announced financial results for the first quarter
2019, the period ended March 31,
2019.
First Quarter 2019 Highlights:
- Quarterly revenue of $56.7
million, meeting guidance of $52
Million to $58 Million.
- GAAP net income of $7.8 million,
or $0.27 per diluted share, exceeding
guidance of $0.15 to $0.26 per share
- Non-GAAP net income of $10.4
million, or $0.37 per diluted
share, exceeding guidance of $0.24 to
$0.34 per share
- Five customers contributed 10% or more each to total product
revenues, including two Foundry and three Memory providers
- Additional Memory penetration and extensive deliveries to
leading edge Foundry led to a balanced revenue mix
GAAP Results
($K)
|
|
Q1
2019
|
Q4
2018
|
Q1
2018
|
Revenues
|
$56,657
|
$63,072
|
$62,603
|
Net Income
|
$7,756
|
$15,152
|
$14,080
|
Earnings per Diluted
Share
|
$0.27
|
$0.53
|
$0.49
|
NON-GAAP Results
($K)
|
|
Q1
2019
|
Q4
2018
|
Q1
2018
|
Net Income
|
$10,449
|
$16,914
|
$15,430
|
Earnings per Diluted
Share
|
$0.37
|
$0.59
|
$0.54
|
A reconciliation between GAAP operating results and non-GAAP
operating results is provided following the financial statements
that are part of this release. Non-GAAP results exclude
amortization of acquired intangible assets, stock-based
compensation expenses, facilities transition costs, revaluation of
long-term liabilities and tax effect of non-GAAP
adjustments.
Management Comments
"Nova continued to demonstrate solid execution through the first
quarter of 2019, with revenue within the guidance range and EPS
exceeding guidance. The results demonstrate the efficient business
model we have built predicated on growing diversification in our
revenue mix, customer base and technology offering" commented Eitan
Oppenhaim, President and Chief Executive Officer of Nova. "Looking
forward, we are confident in our strategy and expect that our
balanced market exposure, combined with our newly awaited products,
will further strengthen the company's fundamentals and will support
our long-term growth plans as market conditions improve beyond the
interim industry volatility."
2019 Second Quarter Financial Outlook
Management provided an outlook for the second quarter, the
period ending June 30, 2019. Based on
current estimates, management expects:
- $45 million to $53 million in revenue
- $0.09 to $
0.26 in diluted GAAP EPS
- $ 0.17 to $ 0.35 in diluted non-GAAP EPS
2019 First Quarter Results
Total revenues for the first quarter of 2019 were $56.7 million, a decrease of 10% compared to
the fourth quarter of 2018 and the first quarter of 2018.
Gross margin for the first quarter of 2019 was 56%, compared to
57% gross margin in the fourth quarter of 2018, and compared to the
gross margin of 58% in the first quarter of 2018.
Operating expenses in the first quarter of 2019 were
$22.9 million, compared with
$20.7 in the fourth quarter of 2018,
and compared with $20.3 million in
the first quarter of 2018.
On a GAAP basis, the company reported net income of $7.8 million, or $0.27 per diluted share, in the first quarter of
2019. This is compared with $15.2
million, or $0.53 per
diluted share, in the fourth quarter of 2018, and compared with net
income of $14.1 million, or
$0.49 per diluted share, in the first
quarter of 2018.
On a non-GAAP basis, which exclude amortization of acquired
intangible assets, stock-based compensation expenses, facilities
transition costs, revaluation of long-term liabilities and tax
effect of non-GAAP adjustments, the company reported net income of
$10.4 million, or $0.37 per diluted share, in the first
quarter of 2019. This is compared with net income of
$16.9 million, or $0.59 per
diluted share, in the fourth quarter of 2018, and compared with net
income of $15.4 million, or
$0.54 per diluted share, in the
first quarter of 2018.
Conference Call Information
Nova will host a conference call today, May 1, 2019, at 9 a.m.
Eastern Time, to discuss the financial results and future
outlook. To attend the conference call, please dial one of the
following teleconferencing numbers. Please begin by placing your
calls five minutes before the conference call commences. If you are
unable to connect using the toll-free numbers, please try the
international dial-in number.
U.S. Dial-in Number: 1-888-394-8218
ISRAEL Dial-in Number:
1-809-212-883
INTERNATIONAL Dial-in Number: 1-323-701-0225
At:
9 a.m. Eastern Time
6 a.m. Pacific Time
4 p.m. Israeli Time
Please reference conference ID 3002923
The conference call will also be webcast live from a link on
Nova's website at http://ir.novami.com.
A replay of the conference call will be available from
May 1, 2019 at 12 p.m. Eastern Time to May 8, 2019 at 11:59 p.m.
Eastern Time. To access the replay, please dial one of the
following numbers:
Replay Dial-in TOLL-FREE
1-844-512-2921
Replay Dial-in TOLL/INTERNATIONAL 1-412-317-6671
Replay Pin Number: 3002923
A replay will also be available for 90 days on
Nova's website at http://ir.novami.com.
About Nova: Nova is a leading innovator and key
provider of metrology solutions for advanced process control used
in semiconductor manufacturing. Nova delivers continuous innovation
by providing state-of-the-art high-performance metrology solutions
for effective process control throughout the semiconductor
fabrication lifecycle. Nova's product portfolio, which combines
high-precision hardware and cutting-edge software, provides its
customers with deep insight into the development and production of
the most advanced semiconductor devices. Nova's unique capability
to deliver innovative X-ray and Optical solutions enable its
customers to improve performance, enhance product yields and
accelerate time to market. Nova acts as a partner to semiconductor
manufacturers from its offices around the world. Additional
information may be found at www.novami.com.
Nova is traded on the NASDAQ & TASE under the symbol
NVMI.
This press release provides financial measures that exclude
amortization of acquired intangible assets, stock-based
compensation expenses, facilities transition costs, revaluation of
long-term liabilities and tax effect of non-GAAP adjustments and
are therefore not calculated in accordance with generally accepted
accounting principles (GAAP). Management believes that these
non-GAAP financial measures provide meaningful supplemental
information regarding Nova's performance because they reflect our
operational results and enhances management's and investors'
ability to evaluate Nova's performance before charges or benefits
considered by management to be outside Nova's ongoing operating
results. The presentation of this non-GAAP financial information is
not intended to be considered in isolation or as a substitute for
the financial information prepared and presented in accordance with
GAAP. Management believes that it is in the best interest of its
investors to provide financial information that will facilitate
comparison of both historical and future results and allows greater
transparency to supplemental information used by management in its
financial and operational decision making. A reconciliation of each
GAAP to non-GAAP financial measure discussed in this press release
is contained in the accompanying financial tables.
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, but are not
limited to, anticipated growth opportunities and projections about
our business and its future revenues, expenses 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. Factors that may affect our results, performance,
circumstances or achievements include, but are not limited to, the
following: our dependency on three product lines; our dependency on
a small number of large customers and small number of suppliers;
the highly cyclical and competitive nature of the markets we target
and we operate in; 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 PEMs; risks related to exclusivity obligations and
non-limited liability that may be included in our commercial
agreements and arrangements; our ability to retain our competitive
position despite the ongoing consolidation in our industry; risks
related to our dependence on our manufacturing facilities; risks
related to changes in our order backlog; risks related to efforts
to complete and integrate current and/or future acquisitions; risks
related to the worldwide financial instabilities; risks related to
our intellectual property; new product offerings from our
competitors; unanticipated manufacturing or supply problems; risks
related to government programs we participate in; risks related to
taxation; changes in customer demand for our products; risks
related to currency fluctuations; risks related to technology
security threats and changes in privacy laws; risks related to
acquisitions we may pursue 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, 2018 filed with the Securities and
Exchange Commission on February 28,
2019. 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.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(U.S. dollars in
thousands) - (Unaudited)
|
|
|
|
As
of
|
ASSETS
|
|
March
31,
|
|
December
31,
|
2019
|
2018
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
36,134
|
|
22,877
|
Short-term
interest-bearing bank deposits
|
|
155,323
|
|
152,951
|
Trade accounts
receivable
|
|
46,921
|
|
53,531
|
Inventories
|
|
45,631
|
|
41,786
|
Other current
assets
|
|
10,359
|
|
10,961
|
|
|
|
|
|
Total current
assets
|
|
294,368
|
|
282,106
|
|
|
|
|
|
Long-term
assets
|
|
|
|
|
Long-term
interest-bearing bank deposits
|
|
2,000
|
|
2,000
|
Deferred tax assets
|
|
4,070
|
|
3,873
|
Severance pay funds
|
|
1,436
|
|
1,394
|
Property
and equipment, net
|
|
15,025
|
|
13,756
|
Identifiable intangible assets, net
|
|
9,530
|
|
10,187
|
Operating lease right-of-use assets
|
|
27,826
|
|
-
|
Goodwill
|
|
20,114
|
|
20,114
|
|
|
|
|
|
Total long-term
assets
|
|
80,001
|
|
51,324
|
|
|
|
|
|
Total
assets
|
|
374,369
|
|
333,430
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
Current
liabilities
|
|
|
|
|
Trade accounts
payable
|
|
22,319
|
|
19,015
|
Deferred revenues
|
|
5,118
|
|
3,984
|
Operating lease current
liabilities
|
|
3,236
|
|
-
|
Other current
liabilities
|
|
23,239
|
|
25,079
|
|
|
|
|
|
Total current
liabilities
|
|
53,912
|
|
48,078
|
|
|
|
|
|
Long-term
liabilities
|
|
|
|
|
Liability for employee severance pay
|
|
2,329
|
|
2,254
|
Operating lease long-term liabilities
|
|
25,697
|
|
-
|
Other
long-term liabilities
|
|
2,422
|
|
2,358
|
|
|
|
|
|
Total long-term
liabilities
|
|
30,448
|
|
4,612
|
|
|
|
|
|
Shareholders'
equity
|
|
290,009
|
|
280,740
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
|
374,369
|
|
333,430
|
NOVA MEASURING
INSTRUMENTS LTD.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(U.S. dollars in
thousands, except per share data) - (Unaudited)
|
|
|
|
|
Three months
ended
|
|
|
|
|
|
March
31,
2019
|
|
March
31,
2018
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Products
|
|
|
|
|
44,061
|
|
50,185
|
Services
|
|
|
|
|
12,596
|
|
12,418
|
Total
revenues
|
|
|
|
|
56,657
|
|
62,603
|
|
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
Products
|
|
|
|
|
17,577
|
|
17,969
|
Services
|
|
|
|
|
7,496
|
|
8,277
|
Total cost of
revenues
|
|
|
|
|
25,073
|
|
26,246
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
|
31,584
|
|
36,357
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development expenses, net
|
|
|
|
|
12,584
|
|
11,226
|
Sales and marketing
expenses
|
|
|
|
|
7,146
|
|
6,231
|
General and
administrative expenses
|
|
|
|
|
2,522
|
|
2,230
|
Amortization of
acquired intangible assets
|
|
|
|
|
656
|
|
653
|
Total operating
expenses
|
|
|
|
|
22,908
|
|
20,340
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
|
|
8,676
|
|
16,017
|
|
|
|
|
|
|
|
|
Financing income,
net
|
|
|
|
|
510
|
|
448
|
|
|
|
|
|
|
|
|
Income before tax
on income
|
|
|
|
|
9,186
|
|
16,465
|
|
|
|
|
|
|
|
|
Income tax
expenses
|
|
|
|
|
1,430
|
|
2,385
|
|
|
|
|
|
|
|
|
Net income for the
period
|
|
|
|
|
7,756
|
|
14,080
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
0.28
|
|
0.50
|
Diluted
|
|
|
|
|
0.27
|
|
0.49
|
|
|
|
|
|
|
|
|
Shares used for
calculation of earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
27,932
|
|
27,915
|
Diluted
|
|
|
|
|
28,580
|
|
28,739
|
NOVA MEASURING
INSTRUMENTS LTD.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(U.S. dollars in
thousands) - (Unaudited)
|
|
|
|
|
Three months
ended
|
|
|
|
March
31,
2019
|
|
March
31,
2018
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net income for the
period
|
|
7,756
|
|
14,080
|
|
Adjustments to reconcile net income to net cash
provided by operating activities:
|
|
|
|
|
|
Depreciation and
amortization
|
|
2,700
|
|
1,568
|
|
Amortization of
deferred stock-based compensation
|
|
1,212
|
|
834
|
|
Decrease (increase)
in liability for employee termination benefits, net
|
|
33
|
|
(41)
|
|
Deferred tax assets,
net
|
|
(197)
|
|
(136)
|
|
Decrease in trade
accounts receivable
|
|
6,610
|
|
3,567
|
|
Increase in
inventories
|
|
(4,532)
|
|
(4,475)
|
|
Decrease in other
current assets
|
|
602
|
|
1,506
|
|
Increase in trade
accounts payable
|
|
3,304
|
|
2,353
|
|
Decrease in other
current liabilities and other long-term liabilities
|
|
(1,122)
|
|
(2,684)
|
|
Increase (decrease)
in short term deferred revenues
|
|
1,134
|
|
(4,369)
|
|
|
|
|
|
|
|
Net cash provided
by operating activities
|
|
17,500
|
|
12,203
|
|
|
|
|
|
|
|
Cash flow from
investment activities:
|
|
|
|
|
|
Increase in
short-term and long-term interest-bearing bank deposits
|
|
(2,372)
|
|
*(10,808)
|
|
Additions to property
and equipment
|
|
(1,977)
|
|
(361)
|
|
|
|
|
|
|
|
Net cash used in
investment activities
|
|
(4,349)
|
|
*(11,169)
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
Shares issued under
employee stock-based plans
|
|
106
|
|
87
|
|
|
|
|
|
|
|
Net cash provided
by financing activities
|
|
106
|
|
87
|
|
|
|
|
|
|
|
Increase in cash
and cash equivalents and restricted cash
|
|
13,257
|
|
*1,121
|
|
Cash and cash
equivalents and restricted cash – beginning of
period
|
|
24,877
|
|
*28,447
|
|
Cash and cash
equivalents and restricted cash – end of period
|
|
38,134
|
|
*29,568
|
|
|
|
|
|
|
|
Reconciliation of
cash, cash equivalents, and restricted cash to the
consolidated balance sheet
|
|
|
|
|
|
Cash and cash
equivalents
|
|
36,134
|
|
28,468
|
|
Restricted cash
included in Long-term interest-bearing bank deposits
|
|
2,000
|
|
1,100
|
|
Total cash, cash
equivalents, and restricted cash
|
|
38,134
|
|
29,568
|
|
|
|
|
|
|
|
*Reclassified
|
|
|
|
|
|
|
|
|
|
|
|
NOVA MEASURING
INSTRUMENTS LTD.
|
RECONCILIATION OF
GAAP TO NON-GAAP RESULTS
|
(U.S. dollars in
thousands, except percentage and per share data) -
(Unaudited)
|
|
|
Three months
ended
|
|
March
31,
2019
|
|
December
31,
2018
|
|
March
31,
2018
|
GAAP gross
profit
|
31,584
|
|
35,710
|
|
36,357
|
Stock-based
compensation expenses
|
234
|
|
269
|
|
171
|
Facilities transition
costs
|
212
|
|
-
|
|
-
|
Non-GAAP gross
profit
|
32,030
|
|
35,979
|
|
36,528
|
GAAP gross margin
as a percentage of revenues
|
56%
|
|
57%
|
|
58%
|
Non-GAAP gross
margin as a percentage of revenues
|
57%
|
|
57%
|
|
58%
|
|
|
|
|
|
|
GAAP
operating income
|
8,676
|
|
15,054
|
|
16,017
|
Stock-based
compensation expenses
|
1,212
|
|
1,245
|
|
834
|
Amortization of
acquired intangible assets
|
656
|
|
654
|
|
653
|
Facilities transition
costs
|
614
|
|
-
|
|
-
|
Non-GAAP operating
income
|
11,158
|
|
16,953
|
|
17,504
|
GAAP operating
margin as a percentage of revenues
|
15%
|
|
24%
|
|
26%
|
Non-GAAP operating
margin as a percentage of revenues
|
20%
|
|
27%
|
|
28%
|
|
|
|
|
|
|
GAAP net
income
|
7,756
|
|
15,152
|
|
14,080
|
Stock-based
compensation expenses
|
1,212
|
|
1,245
|
|
834
|
Amortization of
acquired intangible assets
|
656
|
|
654
|
|
653
|
Facilities transition
costs
|
614
|
|
-
|
|
-
|
Revaluation of
long-term liabilities
|
484
|
|
-
|
|
-
|
Tax effect of non-GAAP
adjustments
|
(273)
|
|
(137)
|
|
(137)
|
Non-GAAP net
income
|
10,449
|
|
16,914
|
|
15,430
|
|
|
|
|
|
|
GAAP basic earnings
per share
|
0.28
|
|
0.54
|
|
0.50
|
Non-GAAP basic
earnings per share
|
0.37
|
|
0.60
|
|
0.55
|
|
|
|
|
|
|
GAAP diluted earnings
per share
|
0.27
|
|
0.53
|
|
0.49
|
Non-GAAP diluted
earnings per share
|
0.37
|
|
0.59
|
|
0.54
|
|
|
|
|
|
|
Shares used for
calculation of earnings per share:
|
|
|
|
|
|
Basic
|
27,932
|
|
28,026
|
|
27,915
|
Diluted
|
28,580
|
|
28,655
|
|
28,739
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Company
Contact:
Dror David, Chief
Financial Officer
Nova Measuring
Instruments Ltd.
Tel:
+972-73-229-5760
E-mail:
info@novami.com www.novami.com
|
Investor Relations
Contact:
Miri Segal
MS-IR LLC
Tel:
+917-607-8654
E-mail:
msegal@ms-ir.com
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content:http://www.prnewswire.com/news-releases/nova-reports-first-quarter-2019-results-300841645.html
SOURCE Nova