REHOVOT, Israel, Aug. 2,
2017 /PRNewswire/ -- Nova (Nasdaq: NVMI), a leading
innovator and a key provider of metrology solutions for advanced
process control used in semiconductor manufacturing, today reported
record financial results for the second quarter 2017, the period
ended June 30, 2017.
Second Quarter 2017 Highlights:
- Record quarterly revenue of $56.1
million, up 58% year-over-year, above the high end of
guidance of $52 million to $56
million
- GAAP net income of $13.3 million,
or $0.47 per diluted share, up 327%
year-over-year on a per-share basis, exceeding guidance of
$0.32 to $0.39 per share
- Non-GAAP net income of $15.2
million, or $0.53 per diluted
share, up 212% year-over-year on a per-share basis, exceeding
guidance of $0.38 to $0.46 per
share
- Diversified customer mix, including five 10%-plus
customers
- Record quarterly revenue from Integrated Metrology solutions,
including record Integrated Metrology revenue from Memory
customers
GAAP Results
($K)
|
|
Q2
2017
|
Q1
2017
|
Q2
2016
|
Revenues
|
$56,126
|
$54,430
|
$35,575
|
Net Income
|
$13,313
|
$13,403
|
$3,153
|
Earnings per Diluted
Share
|
$0.47
|
$0.48
|
$0.11
|
NON-GAAP Results
($K)
|
|
Q2
2017
|
Q1
2017
|
Q2
2016
|
Net Income
|
$15,167
|
$14,115
|
$4,703
|
Earnings per Diluted
Share
|
$0.53
|
$0.50
|
$0.17
|
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, net adjustments of
deferred tax assets and stock-based compensation expenses.
Management Comments
"We continue to outperform and solidify Nova's competitive
position in the market by offering an innovative and unique
portfolio of metrology solutions to a growing addressable market,"
commented Eitan Oppenhaim, President and Chief Executive Officer of
Nova. "The record quarterly results are driven by continuous demand
for all our product lines, including Dimensional and Materials
solutions, across all segments. Our second quarter revenue and
profitability both exceeded our guidance range, supported by an
increasingly diverse customer base with five 10%-plus customers
from both the Foundry and Memory segments."
"We delivered significant growth during the first half of 2017,
demonstrating the value and efficiency embedded into our business
model, which allows us to continue investing in our next-generation
products and to pursue our strategic targets," added Mr. Oppenhaim.
"The results in the first half of 2017 suggest that we are well on
pace for another significant growth year, while our strong cash
reserves provide ample resources to further expand our market
position."
2017 Third Quarter Financial Outlook
Management provided an outlook for the third quarter, the period
ending September 30, 2017. Based on
current estimates, management expects:
- $51 million to $56 million in
revenue
- $0.27 to $0.37 in diluted GAAP
EPS
- $0.33 to $0.43 in diluted
non-GAAP EPS
2017 Second Quarter Results
Total revenues for the second quarter of 2017 were $56.1 million, a sequential increase of 3%
compared to the first quarter of 2017 and a year-over-year increase
of 58% relative to the second quarter of 2016.
Gross margin in the second quarter of 2017 was 59%, compared to
a gross margin of 60% in the first quarter of 2017 and compared to
a gross margin of 53% in the second quarter of 2016.
Operating expenses in the second quarter of 2017 were
$17.7 million, similar to the first
quarter of 2017 and compared with $15.4
million in the second quarter of 2016.
On a GAAP basis, the company reported net income of $13.3 million, or $0.47 per diluted share, in the second quarter of
2017. This is compared with net income of $13.4 million, or $0.48 per diluted share, in the first quarter of
2017, and compared with net income of $3.2
million, or $0.11 per diluted
share, in the second quarter of 2016.
On a non-GAAP basis, which excludes amortization of acquired
intangible assets, net adjustments of deferred tax assets and
stock-based compensation expenses, the company reported net income
of $15.2 million, or $0.53 per diluted share, in the second quarter of
2017. This is compared with net income of $14.1 million, or $0.50 per diluted share, in the first quarter of
2017, and compared with net income of $4.7
million, or $0.17 per diluted
share, in the second quarter of 2016.
Total cash reserves at June 30,
2017 were $135.7 million,
compared to $91.7 million at
December 31, 2016.
Conference Call Information
Nova will host a conference call today, August 2, 2017, 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: 1-800-310-1961
ISRAEL Dial-in Number: 1-809-245-905
INTERNATIONAL Dial-in Number: 1-719-325-2291
At:
9 a.m. Eastern Time
6 a.m. Pacific Time
4 p.m. Israeli Time
Please reference conference ID 1221502
The conference call will also be webcast live from a link on
Nova's website at http://ir.novameasuring.com.
A replay of the conference call will be available from
August 2, 2017 at 12 p.m. Eastern Time to August 9, 2017 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: 1221502
A replay will also be available for 90 days on Nova's website at
http://ir.novameasuring.com.
About Nova: Nova delivers continuous innovation by
providing advanced metrology solutions for the semiconductor
manufacturing industry. Deployed with the world's largest
integrated-circuit manufacturers, Nova's products deliver
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, supports the development and
production of the most advanced devices in today's high-end
semiconductor market. Nova's technical innovation and market
leadership enable customers to improve process performance, enhance
products' 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.novameasuring.com.
Nova is traded on the NASDAQ & TASE under the symbol
NVMI.
This press release provides financial measures that exclude
charges for amortization of acquired intangible assets, net
adjustment of deferred tax assets and stock-based compensation
expenses 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
ability to recognize the benefits of ReVera acquisition and risks
that the acquisition may disrupt current plans and operations and
impact relationships with customers, distributors and suppliers;
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 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, 2016 filed with the Securities and
Exchange Commission on March 3, 2017.
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,
|
|
December
31,
|
|
2017
|
2016
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
41,732
|
|
20,406
|
|
Short-term
interest-bearing bank deposits
|
|
93,205
|
|
70,546
|
|
Trade accounts
receivable
|
|
36,352
|
|
42,626
|
|
Inventories
|
|
33,671
|
|
29,260
|
|
Other current
assets
|
|
6,023
|
|
5,068
|
|
|
|
|
|
|
|
Total current
assets
|
|
210,983
|
|
167,906
|
|
|
|
|
|
|
|
Long-term
assets
|
|
|
|
|
|
Long-term
interest-bearing bank deposits
|
|
750
|
|
750
|
|
Deferred tax
assets
|
|
2,367
|
|
3,020
|
|
Severance pay
funds
|
|
1,471
|
|
1,425
|
|
Property and
equipment, net
|
|
9,596
|
|
10,017
|
|
Identifiable
intangible assets, net
|
|
14,081
|
|
15,361
|
|
Goodwill
|
|
20,114
|
|
20,114
|
|
|
|
|
|
|
|
Total long-term
assets
|
|
48,379
|
|
50,687
|
|
|
|
|
|
|
|
Total
assets
|
|
259,362
|
|
218,593
|
|
|
|
|
|
|
|
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
Current
liabilities
|
|
|
|
|
|
Trade accounts
payable
|
|
19,209
|
|
16,501
|
|
Deferred
revenues
|
|
10,236
|
|
4,072
|
|
Other current
liabilities
|
|
19,996
|
|
18,461
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
49,441
|
|
39,034
|
|
|
|
|
|
|
|
Long-term
liabilities
|
|
|
|
|
|
Deferred tax
liabilities
|
|
516
|
|
1,094
|
|
Liability for employee
severance pay
|
|
2,537
|
|
2,418
|
|
Other long-term
liabilities
|
|
1,616
|
|
1,330
|
|
|
|
|
|
|
|
Total long-term
liabilities
|
|
4,669
|
|
4,842
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
205,252
|
|
174,717
|
|
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
|
259,362
|
|
218,593
|
|
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,
2017
|
|
June
30,
2016
|
|
June
30,
2017
|
|
June
30,
2016
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Products
|
44,954
|
|
25,427
|
|
88,470
|
|
49,689
|
Services
|
11,172
|
|
10,148
|
|
22,086
|
|
19,942
|
Total
revenues
|
56,126
|
|
35,575
|
|
110,556
|
|
69,631
|
|
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
Products
|
15,809
|
|
10,092
|
|
30,929
|
|
19,953
|
Services
|
6,923
|
|
6,584
|
|
13,373
|
|
12,249
|
Total cost of
revenues
|
22,732
|
|
16,676
|
|
44,302
|
|
32,202
|
|
|
|
|
|
|
|
|
Gross
profit
|
33,394
|
|
18,899
|
|
66,254
|
|
37,429
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development expenses, net
|
9,238
|
|
8,684
|
|
18,513
|
|
16,592
|
Sales and marketing
expenses
|
5,892
|
|
4,535
|
|
11,980
|
|
9,902
|
General and
administration expenses
|
1,938
|
|
1,521
|
|
3,595
|
|
3,331
|
Amortization of
acquired intangible assets
|
640
|
|
636
|
|
1,280
|
|
1,272
|
Total operating
expenses
|
17,708
|
|
15,376
|
|
35,368
|
|
31,097
|
|
|
|
|
|
|
|
|
Operating
income
|
15,686
|
|
3,523
|
|
30,886
|
|
6,332
|
|
|
|
|
|
|
|
|
Financing income,
net
|
525
|
|
256
|
|
940
|
|
725
|
|
|
|
|
|
|
|
|
Income before tax
on income
|
16,211
|
|
3,779
|
|
31,826
|
|
7,057
|
|
|
|
|
|
|
|
|
Income tax
expenses
|
2,898
|
|
626
|
|
5,110
|
|
999
|
|
|
|
|
|
|
|
|
Net income for the
period
|
13,313
|
|
3,153
|
|
26,716
|
|
6,058
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
0.48
|
|
0.12
|
|
0.97
|
|
0.22
|
Diluted
|
0.47
|
|
0.11
|
|
0.96
|
|
0.22
|
|
|
|
|
|
|
|
|
Shares used for
calculation of earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
27,655
|
|
27,123
|
|
27,561
|
|
27,120
|
Diluted
|
28,562
|
|
27,422
|
|
27,958
|
|
27,253
|
NOVA MEASURING
INSTRUMENTS LTD.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(U.S. dollars in
thousands) - (Unaudited)
|
|
|
Three months
ended
|
|
Six months
ended
|
|
June
30,
2017
|
|
June
30,
2016
|
|
June
30,
2017
|
|
June
30,
2016
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net income for the
period
|
13,313
|
|
3,153
|
|
26,716
|
|
6,058
|
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
|
|
|
|
|
|
|
|
Depreciation
|
938
|
|
1,064
|
|
1,893
|
|
2,349
|
Amortization of
acquired intangible assets
|
640
|
|
636
|
|
1,280
|
|
1,272
|
Amortization of
deferred stock-based compensation
|
548
|
|
649
|
|
1,211
|
|
1,405
|
Increase in liability
for employee termination benefits, net
|
41
|
|
30
|
|
73
|
|
96
|
Deferred tax assets,
net
|
666
|
|
265
|
|
75
|
|
418
|
Decrease (increase) in
trade accounts receivable
|
1,887
|
|
(689)
|
|
6,274
|
|
(3,729)
|
Increase in
inventories
|
(3,041)
|
|
(2,687)
|
|
(4,616)
|
|
(3,057)
|
Decrease (increase)
in other current assets
|
(1,376)
|
|
739
|
|
(955)
|
|
392
|
Increase (decrease)
in trade accounts payable
|
2,618
|
|
1,946
|
|
2,708
|
|
(1,244)
|
Increase (decrease)
in other current liabilities
and other long-term
liabilities
|
409
|
|
(2,490)
|
|
2,288
|
|
(2,607)
|
Increase (decrease)
in short term deferred revenues
|
3,770
|
|
851
|
|
6,164
|
|
(2,106)
|
|
|
|
|
|
|
|
|
Net cash provided
by (used in) operating activities
|
20,413
|
|
3,467
|
|
43,111
|
|
(753)
|
|
|
|
|
|
|
|
|
Cash flow from
investment activities:
|
|
|
|
|
|
|
|
Decrease (increase)
in short-term interest-bearing bank deposits
|
(2,581)
|
|
1,098
|
|
(22,659)
|
|
(5,932)
|
Additions to property
and equipment
|
(847)
|
|
(503)
|
|
(1,267)
|
|
(1,080)
|
|
|
|
|
|
|
|
|
Net cash provided
by (used in) investment activities
|
(3,428)
|
|
595
|
|
(23,926)
|
|
(7,012)
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Purchases of treasury
shares
|
-
|
|
(937)
|
|
-
|
|
(937)
|
Shares issued under
employee stock-based plans
|
324
|
|
132
|
|
2,141
|
|
424
|
|
|
|
|
|
|
|
|
Net cash provided
by (used in) financing activities
|
324
|
|
(805)
|
|
2,141
|
|
(513)
|
|
|
|
|
|
|
|
|
Increase
(decrease) in cash and cash equivalents
|
17,309
|
|
3,257
|
|
21,326
|
|
(8,278)
|
Cash and cash
equivalents – beginning of period
|
24,423
|
|
16,198
|
|
20,406
|
|
27,733
|
Cash and cash
equivalents – end of period
|
41,732
|
|
19,455
|
|
41,732
|
|
19,455
|
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,
2017
|
|
March
31,
2017
|
|
June
30,
2016
|
GAAP cost of
revenues
|
22,732
|
|
21,570
|
|
16,676
|
Stock-based
compensation in cost of products
|
(74)
|
|
(76)
|
|
(79)
|
Stock-based
compensation in cost of services
|
(56)
|
|
(66)
|
|
(48)
|
Non-GAAP cost of
revenues
|
22,602
|
|
21,428
|
|
16,549
|
|
|
|
|
|
|
GAAP gross
profit
|
33,394
|
|
32,860
|
|
18,899
|
Gross profit
adjustments
|
130
|
|
142
|
|
127
|
Non-GAAP gross
profit
|
33,524
|
|
33,002
|
|
19,026
|
GAAP gross margin
as a percentage of revenues
|
59%
|
|
60%
|
|
53%
|
Non-GAAP gross
margin as a percentage of revenues
|
60%
|
|
61%
|
|
53%
|
|
|
|
|
|
|
GAAP operating
expenses
|
17,708
|
|
17,660
|
|
15,376
|
Stock-based
compensation in research and development
|
(188)
|
|
(262)
|
|
(230)
|
Stock-based
compensation in sales and marketing
|
(146)
|
|
(165)
|
|
(237)
|
Stock-based
compensation in general and administrative
|
(84)
|
|
(94)
|
|
(55)
|
Amortization of
acquired intangible assets
|
(640)
|
|
(640)
|
|
(636)
|
Non-GAAP operating
expenses
|
16,650
|
|
16,499
|
|
14,218
|
Non-GAAP operating
income
|
16,874
|
|
16,503
|
|
4,808
|
GAAP operating
margin as a percentage of revenues
|
28%
|
|
28%
|
|
10%
|
Non-GAAP operating
margin as a percentage of revenues
|
30%
|
|
30%
|
|
14%
|
|
|
|
|
|
|
GAAP tax on
income
|
2,898
|
|
2,212
|
|
626
|
Deferred tax assets
adjustments, net
|
(666)
|
|
591
|
|
(265)
|
Non-GAAP tax on
income
|
2,232
|
|
2,803
|
|
361
|
|
|
|
|
|
|
GAAP net
income
|
13,313
|
|
13,403
|
|
3,153
|
Amortization of
acquired intangible assets
|
640
|
|
640
|
|
636
|
Stock-based
compensation expenses
|
548
|
|
663
|
|
649
|
Deferred tax assets
adjustments, net
|
666
|
|
(591)
|
|
265
|
Non-GAAP net
income
|
15,167
|
|
14,115
|
|
4,703
|
|
|
|
|
|
|
GAAP basic earnings
per share
|
0.48
|
|
0.49
|
|
0.12
|
Non-GAAP basic
earnings per share
|
0.55
|
|
0.51
|
|
0.17
|
|
|
|
|
|
|
GAAP diluted earnings
per share
|
0.47
|
|
0.48
|
|
0.11
|
Non-GAAP diluted
earnings per share
|
0.53
|
|
0.50
|
|
0.17
|
|
|
|
|
|
|
Shares used for
calculation of earnings per share:
|
|
|
|
|
|
Basic
|
27,655
|
|
27,467
|
|
27,123
|
Diluted
|
28,562
|
|
28,148
|
|
27,422
|
|
|
|
|
|
|
Company
Contact:
|
Investor Relations
Contacts:
|
Dror David, Chief
Financial Officer
|
Hayden/ MS-IR
LLC
|
Nova Measuring
Instruments Ltd.
|
Miri Segal
|
Tel:
+972-73-229-5760
|
Tel:
+917-607-8654
|
E-mail:
info@novameasuring.com
|
E-mail:
msegal@ms-ir.com
|
www.novameasuring.com
|
Or
|
|
Brett Maas
|
|
Tel:
+646-536-7331
|
|
E-mail:
brett@haydenir.com
|
View original
content:http://www.prnewswire.com/news-releases/nova-reports-record-second-quarter-2017-results-300498123.html
SOURCE Nova Measuring Instruments Ltd