Nova Measuring Instruments Announces Preliminary Q4 2005 Financial Results and Restatement of Results for 2004
February 16 2006 - 6:02AM
PR Newswire (US)
REHOVOTH, Israel, February 16 /PRNewswire-FirstCall/ -- Nova
Measuring Instruments, Ltd. (NASDAQ:NVMI), the market leader in
integrated measurement and process control for the semiconductor
industry, today announced preliminary unaudited financial results
for the fourth quarter ended December 31, 2005. The company expects
to report revenue of $8.0-$8.5 million and a net loss of $1.5-$2.0
million for the fourth quarter of 2005 when it releases its final
results by mid April 2006. These preliminary results are subject to
revision following the completion of an internal review currently
in progress. Commenting on the preliminary results, Dr. Giora
Dishon, President and CEO, noted, "We have not seen any significant
change in market conditions or business performance during the
fourth quarter. Bookings remained stable in the fourth quarter, and
the slightly lower revenue compared to our expectation of an upward
trend relates primarily to the delay in recognizing revenues from
systems already delivered in Q4. Our working capital at year-end
was about the same as in the third quarter and we had approximately
$23 million in cash reserves on our balance sheet on December 31,
2005." Nova has determined that it will be required to restate its
previously issued financial statements for the fiscal year ended
December 31, 2004, because the recognition of revenues for a small
number of NovaScan systems, which included an option to upgrade the
systems' capabilities, was not consistent with generally accepted
accounting principles. This restatement is expected to result in a
reduction of 2004 revenue and net profit. The revenues recognized
improperly in 2004, currently estimated to be less than 10% of the
total 2004 revenues previously reported, are expected to be
recognized during 2006 as the upgrades are delivered. The company
is working closely with its auditors, Brightman Almagor (a member
firm of Deloitte Touche Tohmatsu), to complete the review of past
periods and finalize the audit of 2005. Audited 2005 results will
also include a correction to the method of apportioning revenues
from service contracts, applicable to the first quarter of 2005,
identified during the closing process of the company's 2005
financials, and a related correction to net income, as well as any
other adjustments that may be required based on the review process.
Nova expects to release its fourth quarter 2005 and 2005 financial
results by mid April 2006. "We are aggressively addressing these
issues" said Dr. Giora Dishon, "Under the leadership of Dror David,
our chief financial officer since November 2005, we have been
focusing considerable attention on our internal controls and
procedures, and concluding this internal review and the 2005 audit
is a top priority." The company intends to file an Amended Annual
Report on Form 20-F for the year ended December 31, 2004 and to
publish corrected financial results for the nine months ended
September 30, 2005, and related quarters, as soon as practicable.
Until the Amended Annual Report on Form 20-F for 2004 is filed and
the corrected financial results for the nine months ended September
30, 2005, and related quarters, are published, the company's
consolidated financial statements for the year ended December 31,
2004, and previously published financial results for the nine
months ended September 30, 2005, and related quarters, should not
be relied upon. 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
contains forward-looking statements relating to future events or
our future performance and 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 ability to successfully complete our review of our
financial statements and results, the discovery of additional
accounting irregularities, the outcome of our investigation into
accounting irregularities, our ability to implement improvements to
our internal controls and procedures to prevent similar accounting
irregularities in the future, 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 and
changes in customer demand for our products. 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,
2004 filed with the Securities and Exchange Commission on June 28,
2005. 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. Company Contact: Dror David, Chief
Financial Officer Nova Measuring Instruments Ltd. Tel:
+972-8-938-7505 E-mail: http://www.nova.co.il/ Investor relations
Contacts: Ehud Helft / Kenny Green GK Investor Relations Tel:
+1-866-704-6710 E-mail : DATASOURCE: Nova Measuring Instruments,
Ltd CONTACT: Company Contact: Dror David, Chief Financial Officer,
Nova Measuring Instruments Ltd., Tel: +972-8-938-7505, E-mail: ,
http://www.nova.co.il/. Investor relations Contacts: Ehud Helft /
Kenny Green, GK Investor Relations, Tel: +1-866-704-6710, E-mail :
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