REHOVOT, Israel, Aug. 7, 2019
/PRNewswire/ -- Nova (Nasdaq: NVMI) today announced
financial results for the second quarter 2019, the period ended
June 30, 2019.
Second Quarter 2019 Highlights:
- Quarterly revenue of $51.1
million, meeting guidance of $45
million to $53 million.
- GAAP net income of $6.5 million,
or $0.23 per diluted share, meeting
guidance of $0.09 to
$0.26 per share
- Non-GAAP net income of $9
million, or $0.32 per diluted
share, meeting guidance of $0.17 to
$0.35 per share
- Tool selection wins in a global memory customer led to a
diversified customer mix with 65% of product revenue generated from
memory
- Launched a breakthrough technology (PRIZM™) to enhance Nova's
Dimensional Metrology portfolio
|
GAAP Results
($K)
|
|
Q2
2019
|
Q1
2019
|
Q2
2018
|
|
Revenues
|
$51,120
|
$56,657
|
$61,888
|
|
Net Income
|
$6,468
|
$7,756
|
$11,833
|
|
Earnings per Diluted
Share
|
$0.23
|
$0.27
|
$0.41
|
|
NON-GAAP Results
($K)
|
|
Q2
2019
|
Q1
2019
|
Q2
2018
|
|
Net Income
|
$9,007
|
$10,449
|
$13,343
|
|
Earnings per Diluted
Share
|
$0.32
|
$0.37
|
$0.46
|
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
"Our second quarter results came within the high end of our
guidance range, reflecting the progress we are making with leading
Memory and Foundry customers in several key applications,"
commented Eitan Oppenhaim, President and Chief Executive Officer of
Nova. "We are encouraged by the traction our new technological
developments are gaining in the market and are confident that our
unique technical approach will support Nova's long-term growth.The
first product launched as part of our new portfolio was the PRIZM™,
a dimensional metrology platform, which integrates ground breaking
technology allowing our customers to improve their yield and time
to market in the most complex device fabrication processes," added
Mr. Oppenhaim. "We believe that the industry fundamental drivers
will continue generating growth opportunities for us while we
strengthen our market position and competitive portfolio."
2019 Third Quarter Financial Outlook
Management provided an outlook for the third quarter, the period
ending September 30, 2019. Based on
current estimates, management expects:
- $46 million to $54 million in revenue
- $0.11 to $0.24 in diluted GAAP EPS
- $0.20 to $0.34 in diluted non-GAAP EPS
2019 Second Quarter Results
Total revenues for the second quarter of 2019 were $51.1 million, a decrease of 10% compared to the first
quarter of 2019 and 21% compared to the second quarter
of 2018.
Gross margin for the second quarter of 2019 was 55%, compared to
56% gross margin in the first quarter of 2019, and compared to the
gross margin of 58% in the second quarter of 2018.
Operating expenses in the second quarter of 2019 were
$21.3 million, compared with
$22.9 million in the first quarter of
2019, and compared with $22.1 million
in the second quarter of 2018.
On a GAAP basis, the company reported net income of $6.5 million, or $0.23 per diluted share, in the
second quarter of 2019. This is compared with $7.8 million, or $0.27 per diluted share, in the first quarter
of 2019, and compared with net income of $11.8 million, or $0.41 per diluted share, in the second quarter of
2018.
On a non-GAAP basis, which excludes amortization of acquired
intangible assets, stock-based compensation expenses, facilities
transition costs, revaluation of long-term liabilities and tax
effects of non-GAAP adjustments, the company reported net income of
$9 million, or $0.32 per diluted share,
in the second quarter of 2019. This is compared with net income of $10.4 million, or $0.37 per diluted share,
in the first quarter of 2019, and compared with net income of
$13.3 million, or $0.46 per diluted share, in the second quarter
of 2018.
Conference Call Information
Nova will host a conference call today, August 7, 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- 800-289-0438
ISRAEL Dial-in Number:
1-809-212-883
INTERNATIONAL Dial-in Number: 1-323-794-2423
At:
9 a.m. Eastern Time
6 a.m. Pacific Time
4 p.m. Israeli Time
Please reference conference ID 4935686
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 August
7, 2019 at 12 p.m. Eastern Time to August
14, 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: 4935686
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.
(Tables to Follow)
|
NOVA MEASURING
INSTRUMENTS LTD.
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(U.S. dollars in
thousands) - (Unaudited)
|
|
|
As
of
|
|
|
ASSETS
|
|
June
30,
2019
|
|
December
31,
2018
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
30,850
|
|
22,877
|
|
|
Short-term
interest-bearing bank deposits
|
|
146,876
|
|
152,951
|
|
|
Trade accounts
receivable
|
|
48,078
|
|
53,531
|
|
|
Inventories
|
|
48,976
|
|
41,786
|
|
|
Other current
assets
|
|
8,381
|
|
10,961
|
|
|
|
|
|
|
|
|
Total current
assets
|
|
283,161
|
|
282,106
|
|
|
|
|
|
|
|
|
Long-term
assets
|
|
|
|
|
|
|
Long-term
interest-bearing bank deposits
|
|
2,000
|
|
2,000
|
|
|
Deferred tax
assets
|
|
4,217
|
|
3,873
|
|
|
Severance pay
funds
|
|
1,157
|
|
1,394
|
|
|
Property and
equipment, net
|
|
19,353
|
|
13,756
|
|
|
Identifiable
intangible assets, net
|
|
8,874
|
|
10,187
|
|
|
Operating lease
right-of-use assets
|
|
27,078
|
|
-
|
|
|
Goodwill
|
|
20,114
|
|
20,114
|
|
|
|
|
|
|
|
|
Total long-term
assets
|
|
82,793
|
|
51,324
|
|
|
|
|
|
|
|
|
Total
assets
|
|
365,954
|
|
333,430
|
|
|
Liabilities and shareholders' Equity
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Trade accounts
payable
|
|
16,889
|
|
19,015
|
|
|
Deferred
revenues
|
|
5,314
|
|
3,984
|
|
|
Operating lease
current liabilities
|
|
3,137
|
|
-
|
|
|
Other current
liabilities
|
|
19,460
|
|
25,079
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
44,800
|
|
48,078
|
|
|
|
|
|
|
|
|
Long-term
liabilities
|
|
|
|
|
|
|
Liability for employee
severance pay
|
|
2,044
|
|
2,254
|
|
|
Operating lease
long-term liabilities
|
|
25,723
|
|
-
|
|
|
Other long-term
liabilities
|
|
2,779
|
|
2,358
|
|
|
|
|
|
|
|
|
Total long-term
liabilities
|
|
30,546
|
|
4,612
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
290,608
|
|
280,740
|
|
|
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
|
365,954
|
|
333,430
|
|
|
NOVA MEASURING
INSTRUMENTS LTD.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(U.S. dollars
in thousands, except per share data) - (Unaudited)
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
June
30,
2019
|
|
June
30,
2018
|
|
June
30,
2019
|
|
June
30,
2018
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Products
|
37,401
|
|
45,784
|
|
81,462
|
|
95,969
|
|
Services
|
13,719
|
|
16,104
|
|
26,315
|
|
28,522
|
|
Total
revenues
|
51,120
|
|
61,888
|
|
107,777
|
|
124,491
|
|
|
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
|
Products
|
14,527
|
|
18,002
|
|
32,104
|
|
35,971
|
|
Services
|
8,483
|
|
8,186
|
|
15,979
|
|
16,463
|
|
Total cost of
revenues
|
23,010
|
|
26,188
|
|
48,083
|
|
52,434
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
28,110
|
|
35,700
|
|
59,694
|
|
72,057
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development expenses, net
|
11,654
|
|
11,849
|
|
24,238
|
|
23,075
|
|
Sales and marketing
expenses
|
6,641
|
|
7,442
|
|
13,787
|
|
13,673
|
|
General and
administrative expenses
|
2,384
|
|
2,134
|
|
4,906
|
|
4,364
|
|
Amortization of
acquired intangible assets
|
656
|
|
654
|
|
1,312
|
|
1,307
|
|
Total operating
expenses
|
21,335
|
|
22,079
|
|
44,243
|
|
42,419
|
|
|
|
|
|
|
|
|
|
Operating
income
|
6,775
|
|
13,621
|
|
15,451
|
|
29,638
|
|
|
|
|
|
|
|
|
|
Financing income,
net
|
855
|
|
486
|
|
1,365
|
|
934
|
|
|
|
|
|
|
|
|
|
Income before tax
on income
|
7,630
|
|
14,107
|
|
16,816
|
|
30,572
|
|
|
|
|
|
|
|
|
|
Income tax
expenses
|
1,162
|
|
2,274
|
|
2,592
|
|
4,659
|
|
|
|
|
|
|
|
|
|
Net income for the
period
|
6,468
|
|
11,833
|
|
14,224
|
|
25,913
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
Basic
|
0.23
|
|
0.42
|
|
0.51
|
|
0.93
|
|
Diluted
|
0.23
|
|
0.41
|
|
0.50
|
|
0.91
|
|
|
|
|
|
|
|
|
|
Shares used for
calculation of earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
27,869
|
|
27,977
|
|
27,898
|
|
27,946
|
|
Diluted
|
28,564
|
|
28,766
|
|
28,234
|
|
28,349
|
|
NOVA MEASURING
INSTRUMENTS LTD.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(U.S. dollars in
thousands) - (Unaudited)
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
June
30,
2019
|
|
June
30,
2018
|
|
June
30,
2019
|
|
June
30,
2018
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income for the
period
|
6,468
|
|
11,833
|
|
14,224
|
|
25,913
|
|
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
2,770
|
|
1,966
|
|
5,470
|
|
3,534
|
|
Amortization of
deferred stock-based compensation
|
1,086
|
|
993
|
|
2,298
|
|
1,827
|
|
Decrease (increase)
in liability for employee
termination benefits, net
|
(6)
|
|
6
|
|
27
|
|
(35)
|
|
Deferred tax assets,
net
|
(147)
|
|
(421)
|
|
(344)
|
|
(557)
|
|
Decrease (increase) in
trade accounts receivable
|
(1,157)
|
|
(5,648)
|
|
5,453
|
|
(2,081)
|
|
Increase in
inventories
|
(3,323)
|
|
(2,761)
|
|
(7,855)
|
|
(7,236)
|
|
Decrease in other
current assets
|
1,978
|
|
2,068
|
|
2,580
|
|
3,574
|
|
Increase (decrease)
in trade accounts payable
|
(5,430)
|
|
438
|
|
(2,126)
|
|
2,791
|
|
Decrease in other
current liabilities and other long-
term liabilities
|
(3,457)
|
|
(4,414)
|
|
(4,579)
|
|
(7,098)
|
|
Increase (decrease)
in short term deferred revenues
|
196
|
|
3,519
|
|
1,330
|
|
(850)
|
|
|
|
|
|
|
|
|
|
Net cash provided
by (used in) operating
activities
|
(1,022)
|
|
7,579
|
|
16,478
|
|
19,782
|
|
Cash flow from
investment activities:
|
|
|
|
|
|
|
|
|
Increase in
short-term and long-term interest-
bearing bank deposits
|
8,447
|
|
*(7,841)
|
|
6,075
|
|
*(18,999)
|
|
Additions to property
and equipment
|
(5,716)
|
|
(735)
|
|
(7,693)
|
|
(1,096)
|
|
Net cash provided
by (used in) investment
activities
|
2,731
|
|
*(8,576)
|
|
(1,618)
|
|
*(20,095)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Purchases of treasury
shares
|
(7,159)
|
|
-
|
|
(7,159)
|
|
-
|
|
Shares issued under
employee stock-based plans
|
166
|
|
151
|
|
272
|
|
238
|
|
Net cash provided
by (used in) financing activities
|
(6,993)
|
|
151
|
|
(6,887)
|
|
238
|
|
Decrease in cash
and cash equivalents and
restricted cash
|
(5,284)
|
|
*(846)
|
|
7,973
|
|
*275
|
|
Cash and cash
equivalents and restricted cash –
beginning of period
|
38,134
|
|
*29,568
|
|
24,877
|
|
*28,447
|
|
Cash and cash
equivalents and restricted cash –
end of period
|
32,850
|
|
*28,722
|
|
32,850
|
|
*28,722
|
|
|
|
|
|
|
|
|
|
Reconciliation of
cash, cash equivalents, and
restricted cash to the consolidated balance sheet
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
30,850
|
|
27,622
|
|
30,850
|
|
27,622
|
|
Restricted cash
included in Long-term interest-
bearing bank deposits
|
2,000
|
|
1,100
|
|
2,000
|
|
1,100
|
|
Total cash, cash
equivalents, and restricted cash
|
32,850
|
|
28,722
|
|
32,850
|
|
28,722
|
|
*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
|
|
|
June 30,
2019
|
|
March 31,
2019
|
|
June 30,
2018
|
|
GAAP gross
profit
|
28,110
|
|
31,584
|
|
35,700
|
|
Stock-based
compensation expenses (1)
|
222
|
|
234
|
|
206
|
|
Facilities transition
costs (2)
|
271
|
|
212
|
|
-
|
|
Non-GAAP gross
profit
|
28,603
|
|
32,030
|
|
35,906
|
|
GAAP gross margin
as a percentage of revenues
|
55%
|
|
56%
|
|
58%
|
|
Non-GAAP gross
margin as a percentage of revenues
|
56%
|
|
57%
|
|
58%
|
|
|
|
|
|
|
|
GAAP
operating income
|
6,775
|
|
8,676
|
|
13,621
|
|
Stock-based
compensation expenses (1)
|
1,086
|
|
1,212
|
|
993
|
|
Amortization of
acquired intangible assets
|
656
|
|
656
|
|
654
|
|
Facilities transition
costs (2)
|
827
|
|
614
|
|
-
|
|
Non-GAAP operating
income
|
9,344
|
|
11,158
|
|
15,268
|
|
GAAP operating
margin as a percentage of revenues
|
13%
|
|
15%
|
|
22%
|
|
Non-GAAP operating
margin as a percentage of revenues
|
18%
|
|
20%
|
|
25%
|
|
GAAP net
income
|
6,468
|
|
7,756
|
|
11,833
|
|
Stock-based
compensation expenses (1)
|
1,086
|
|
1,212
|
|
993
|
|
Amortization of
acquired intangible assets
|
656
|
|
656
|
|
654
|
|
Facilities transition
costs (2)
|
827
|
|
614
|
|
-
|
|
Revaluation of
long-term liabilities
|
295
|
|
484
|
|
-
|
|
Tax effect of non-GAAP
adjustments
|
(325)
|
|
(273)
|
|
(137)
|
|
Non-GAAP net
income
|
9,007
|
|
10,449
|
|
13,343
|
|
GAAP basic earnings
per share
|
0.23
|
|
0.28
|
|
0.42
|
|
Non-GAAP basic
earnings per share
|
0.32
|
|
0.37
|
|
0.48
|
|
GAAP diluted earnings
per share
|
0.23
|
|
0.27
|
|
0.41
|
|
Non-GAAP diluted
earnings per share
|
0.32
|
|
0.37
|
|
0.46
|
|
|
|
|
|
|
|
Shares used for
calculation of earnings per share:
|
|
|
|
|
|
|
Basic
|
27,869
|
|
27,932
|
|
27,977
|
|
Diluted
|
28,564
|
|
28,580
|
|
28,766
|
|
|
|
|
|
|
|
(1) Stock-based compensation expenses in the three months
ended June 30, 2019 – Cost of
revenues products - 125; Cost of revenues services - 97; Research
and development expenses, net – 401; Sales and marketing expenses –
272; General and administrative expenses – 191.
(2) Facilities transition costs in the three months ended
June 30, 2019 – Cost of revenues
products - 185; Cost of revenues services - 101; Research and
development expenses, net – 255; Sales and marketing expenses –
100; General and administrative expenses – 186.
|
Company
Contact:
|
Investor Relations
Contact:
|
|
Dror David, Chief
Financial Officer
|
Miri Segal
|
|
Nova Measuring
Instruments Ltd.
|
MS-IR LLC
|
|
Tel:
+972-73-229-5760
|
Tel:
+917-607-8654
|
|
E-mail:
info@novami.com
|
E-mail:
msegal@ms-ir.com
|
www.novami.com
View original
content:http://www.prnewswire.com/news-releases/nova-reports-second-quarter-2019-results-300897900.html
SOURCE Nova