NVMI Nova Ltd

REHOVOTH, Israel, August 4 /PRNewswire-FirstCall/ -- Nova Measuring Instruments, Ltd. (NASDAQ:NVMI), the market leader in integrated measurement and process control for the semiconductor industry, today reported its results for the second quarter of 2005. Total revenues for the second quarter of 2005 were $7.7 million, a 65% increase over revenues of $4.6 million as reported for the first quarter of 2005, and a 25% decrease compared with revenues of $10.2 million as reported for the second quarter of 2004. The Company reported a gross profit of $2.5 million for the second quarter of 2005 compared with gross profit of $1.0 million for the first quarter of 2005, and gross profit of $4.7 million for the second quarter of 2004. Gross margin for the second quarter of 2005 was 32% compared with 22% for the first quarter of 2005 and 46% for the second quarter of 2004. Net loss in the second quarter of 2005 was $1.9 million or $0.12 per share, compared with a net loss of $4.1 million or $0.27 per share for the first quarter of 2005. In the second quarter of 2004, the company reported a net income of $0.5 million or $0.03 per share. At the end of the second quarter of 2005, cash and cash equivalents, bank deposits and held to maturity securities, short and long term, stood at $23.9 million, a decrease of $4.3 million compared with that of the previous quarter. Dr. Giora Dishon, President & CEO of Nova commented, "We are pleased with the improvement in our results this quarter. We recently launched the new line of our advanced NovaScan 3090 systems. The new line includes systems for CMP, CD and Copper. The market reception has been very good, and these new systems contributed more than 20% of the system revenue this quarter. This, together with wins of large purchase orders with strategic customers during the quarter, contributed to our revenue growth. Furthermore, in the industry as a whole we are seeing signs of recovery, even though with still limited visibility. We therefore remain cautious, but optimistic." Dr. Dishon continued, "As our systems continue to penetrate the process segments of Copper CMP and Etch for high volume manufacturing, we expect to gain market share in subsequent quarters. Looking to the future, towards more advanced technology nodes such as 45nm, we are continuing our investment in developing the leading edge next-generation metrology systems, which we believe will support our long-term growth." The Company will host a conference call on the same day, August 4th, 2005, at 09:00am EST. To participate please dial in the U.S: U.S Dial-in Numbers: 1-866-276-1002 or internationally: +972-3-925-5910 at least 5 minutes before the start of the call. A conference call presentation will be available for download on the company's website http://www.nova.co.il/, before and during the call. About Nova Nova Measuring Instruments Ltd. develops, designs and produces integrated process control systems in the semiconductor manufacturing industry. Nova provides a broad range of integrated process control solutions that link between different semiconductor processes and process equipment. The Company's website is http://www.nova.co.il/. This press release may contain forward-looking statements, including statements related to anticipated growth rates, manufacturing capacity and tax rate. Actual results may differ materially from those projected due to a number of risks, including 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, or changes in tax requirements. Nova 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 Form F-1 filed with the Securities and Exchange Commission on April 9, 2000. 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. CONSOLIDATED STATEMENT OF OPERATIONS (U.S. dollars in thousands, except per share data) Three- month period ended June 30, 2005 March 31, 2005 (unaudited) REVENUES Product sales 5,603 3,363 Services 2,059 1,273 7,662 4,636 COST OF REVENUES Product sales 3,164 2,067 Services 2,014 1,571 5,178 3,638 GROSS PROFIT 2,484 998 OPERATING EXPENSES Research & Development expenses, net 2,114 2,917 Sales & Marketing expenses 1,731 1,710 General & Administrative expenses 758 711 4,603 5,338 OPERATING LOSS (2,119) (4,340) INTEREST INCOME 196 193 LOSS FOR THE PERIOD (1,923) (4,147) LOSS PER SHARE (0.12) (0.27) Shares used in calculation of basic loss per share (in thousnads) 15,401 15,339 NOVA MEASURING INSTRUMENTS LTD. CONSOLIDATED STATEMENT OF OPERATIONS (U.S. dollars in thousands, except per share data) Three-month period ended June 30, 2005 June 30, 2004 (unaudited) REVENUES Product sales 5,603 7,921 Services 2,059 2,296 7,662 10,217 COST OF REVENUES Product sales 3,164 3,784 Services 2,014 1,729 5,178 5,513 GROSS PROFIT 2,484 4,704 OPERATING EXPENSES Research & Development expenses, net 2,114 2,045 Sales & Marketing expenses 1,731 1,666 General & Administrative expenses 758 641 4,603 4,352 OPERATING PROFIT (LOSS) (2,119) 352 INTEREST INCOME 196 98 PROFIT (LOSS) FOR THE PERIOD (1,923) 450 EARNINGS (LOSS) PER SHARE (0.12) 0.03 Shares used in calculation of basic loss per share (in thousnads) 15,401 15,261 NOVA MEASURING INSTRUMENTS LTD. CONSOLIDATED STATEMENT OF OPERATIONS (U.S. dollars in thousands, except per share data) Six-month period ended June 30, 2005 June 30, 2004 (unaudited) REVENUES Product sales 8,966 15,392 Services 3,332 3,997 12,298 19,389 COST OF REVENUES Product sales 5,231 7,389 Services 3,585 3,231 8,816 10,620 GROSS PROFIT 3,482 8,769 OPERATING EXPENSES Research & Development expenses, net 5,031 4,171 Sales & Marketing expenses 3,441 3,169 General & Administrative expenses 1,469 1,098 9,941 8,438 OPERATING PROFIT (LOSS) (6,459) 331 INTEREST INCOME 389 188 PROFIT (LOSS) FOR THE PERIOD (6,070) 519 EARNINGS (LOSS) PER SHARE (0.39) 0.03 Comments: 1. Employee Stock Based Compensation expenses - 122 2. Shares for calculation of earnings (loss) per share Basic 15,394 15,243 Diluted 15,742 15,243 NOVA MEASURING INSTRUMENTS LTD. CONSOLIDATED BALANCE SHEET (U.S. dollars in thousands) As of June 30, 2005 As of Dec. 31, 2004 (unaudited) (audited) CURRENT ASSETS Cash and cash equivalents 5,708 12,171 Short-term interest-bearing bank deposits 1,623 1,916 Held to maturity securities 6,337 5,280 Trade accounts receivable (Net of $40 allowance for doubtful accounts in June 30,2005, no allowance on December 31,2004) 5,350 7,461 Inventories 4,773 5,239 Other current assets 1,338 1,169 25,129 33,236 LONG-TERM ASSETS Long-term interest-bearing bank deposits 3,635 2,145 Held to maturity securities 6,647 9,292 Other long-term assets 378 382 Severance pay funds 2,091 2,288 Fixed assets, net 2,514 2,119 15,265 16,226 40,394 49,462 CURRENT LIABILITIES Trade accounts payable 3,758 5,016 Other current liabilities 5,074 6,389 8,832 11,405 LONG-TERM LIABILITIES Liability for employee termination 2,777 3,075 benefits Deferred Income 390 369 Other long-term liability 100 145 3,267 3,589 SHAREHOLDERS' EQUITY Share capital 46 46 Additional paid- in capital 73,499 73,333 Accumulated other comprehensive (261) 8 income (loss) Accumulated deficit (44,989) (38,919) 28,295 34,468 40,394 49,462 http://www.nova.co.il/ Company Contact: Investor relations Contacts: Chai Toren Ehud Helft / Kenny Green CFO and Vice President Finance GK International Investor Relations Nova Measuring Instruments Ltd. Tel: +1-866-704-6710 Tel: +972-8-938-7505 E-mail : E-mail: DATASOURCE: Nova Measuring Instruments, Ltd CONTACT: Company Contact: Chai Toren, CFO and Vice President Finance, Nova Measuring Instruments Ltd., Tel: +972-8-938-7505, E-mail: http://www.nova.co.il/; Investor relations Contacts: Ehud Helft / Kenny Green GK International Investor Relations Tel: +1-866-704-6710, E-mail : ,

Copyright