REHOVOTH, Israel, April 11 /PRNewswire-FirstCall/ -- Nova Measuring
Instruments, Ltd. (NASDAQ:NVMI), the market leader in integrated
measurement and process control for the semiconductor industry,
today announced results for the fourth quarter and full year 2005
(the comparable figures below are 2004 restated figures). Total
revenues for the fourth quarter of 2005 were $8.8 million, an 11%
decrease relative to revenues of $10.0 million of the fourth
quarter of 2004 and a 1% sequential decrease relative to revenues
of $8.9 million for the third quarter of 2005. Total revenues for
2005 were $30.1 million, an 18% decrease relative to revenues of
$36.8 million in 2004. Net loss for the fourth quarter of 2005 was
$1.5 million, or $0.10 per share, compared with a net loss of $0.3
million, or $0.02 per share, for the fourth quarter of 2004 and net
loss of $1.0 million, or $0.06 per share, for the third quarter of
2005. Net loss in 2005 was $8.4 million, or $0.55 per share,
compared to net loss of $1.4 million, or $0.09 per share, in 2004.
Cash reserves at the end of 2005 were $22.8 million, a decrease of
$1.2 million compared to the third quarter of 2005. "During 2005 we
focused on building our product portfolio, strengthening our
customer relations with leading process equipment and semiconductor
manufacturers, and on expanding our global infrastructure. During
the first quarter of 2006 we began to see positive changes in
market conditions. The bookings stream has increased relative to
the previous quarters, including orders for delivery in the
following quarters, and we expect moderate growth in the following
quarters." said Dr. Giora Dishon, President and CEO. "In addition,
during the first quarter of 2006, we have continued successfully
the proliferation of our new NovaScan 3090 product series, as
stand-alone and integrated metrology for CMP and Optical CD
applications. We have received positive demand through our process
equipment manufacturers and from major end-users for this new
product series and we expect increases in deliveries of the
NovaScan 3090 in the following quarters," continued Dr. Dishon.
Restated financial results for year 2004 The company also announced
that it has completed the restatement of the financial results for
the fiscal year ended December 31, 2004, which was announced during
February 2006. The restatement relates to recognition of revenues,
in transactions that included an upgrade or trade-in option, which
did not comply with generally accepted accounting principles. The
restated revenues for year 2004 are $36.8 million, compared to
previously reported revenues of $40.9 million. The restated net
loss for year 2004 is $1.4 million, or ($0.09) per share, compared
to previously reported net profit of $1.5 million, or $0.10 per
share. The majority of the $4.1 million in revenues improperly
recognized in 2004 is expected to be recognized during 2006 (some
already in Q1/06), as the upgrades and trade-in options are
fulfilled or expire. In addition to restating its financial
statements for 2004, the company also corrected its previously
published results for the first three quarters of 2005, which
resulted in a $0.2 million reduction of revenues for the nine
months ended September 30, 2005. These corrections related mainly
to year 2004 restatement issues, as well as a correction to the
method of apportioning revenues from extended warranty contracts
relating to the first quarter of 2005. Commenting on the restated
results and corrections, Mr. Dror David, CFO, noted, "In the last
two months we have been working intensively to conclude the review
of prior years, and our auditors have completed their audit on the
restatement of year 2004 and their review on the quarterly
corrections of 2005. We appreciate the dedication of our financial
team and the Audit Committee of the Board of Directors in resolving
the restatement issues as promptly as possible. We are confident we
improved our control measures, and are pleased that we are now able
to focus our full attention on realizing our business objectives
and continuing our growth." The full financial statements for 2004,
as restated, are attached as an Exhibit to the Current Report on
Form 6-K furnished by the Company to the Securities and Exchange
Commission, and are also available on Nova's website at
nova_restated_year_2004. The restated quarterly results of 2004 and
the corrected quarterly results of 2005 are available on the
company's website at nova_quarterly_adjustments. The company
intends to file an Amended Annual Report on Form 20-F for the year
ended December 31, 2004 as soon as practicable, and Annual Report
on Form 20-F for the year ended December 31, 2005 in June 2006. The
Company will host a conference call on April 11, 2006, at 12:00
EST. To participate please dial in the US: +1-866-500-4964 or
internationally: +972-3-925-5910 at least 5 minutes before the
start of 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
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. Nova Measuring Instruments Ltd.
Quarterly Consolidated Statements of Operations (US dollars in
thousands, except per share data) Q4-2005 Q4-2004 Q3-2005 (As
restated) (Corrected) REVENUES Product sales 6,601 8,503 6,658
Services 2,236 1,452 2,244 8,837 9,955 8,902 COST OF REVENUES
Product sales 2,939 3,733 3,313 Services 2,152 1,782 2,156 5,091
5,515 5,469 GROSS PROFIT 3,746 4,440 3,433 OPERATING EXPENSES
Research & Development expenses, net 2,280 2,370 1,990 Sales
& Marketing expenses 2,007 1,898 1,510 General &
Administration expenses 1,089 642 1,068 5,376 4,910 4,568 OPERATING
LOSS 1,630 470 1,135 INTEREST INCOME, NET 105 180 133 NET LOSS
1,525 290 1,002 Loss per share 0.10 0.02 0.06 Shares used for
calculation of loss per share 15,457 15,309 15,453 Nova Measuring
Instruments Ltd. Consolidated Statements of Operations (U.S.
dollars in thousands, except per share data) Year ended December
31, 2005 2004 2003 (As restated) REVENUES Product sales 21,985
29,274 21,152 Services 8,157 7,532 5,536 30,142 36,806 26,688 COST
OF REVENUES Product sales 11,413 14,396 10,270 Services 7,893 6,715
6,265 19,306 21,111 16,535 GROSS PROFIT 10,836 15,695 10,153
OPERATING EXPENSES Research and development expenses, net 9,301
8,665 8,561 Sales and marketing expenses 6,950 6,647 6,534 General
and administrative expenses 3,626 2,331 1,898 Other operating
income - - (2,203) 19,877 17,643 14,790 OPERATING LOSS 9,041 1,948
4,637 INTEREST INCOME, NET 627 528 425 NET LOSS FOR THE YEAR 8,414
1,420 4,212 Loss per share 0.55 0.09 0.28 Shares used in
calculation of loss per share 15,437 15,259 14,994 Nova Measuring
Instruments Ltd. Consolidated Balance Sheet (U.S. dollars in
thousands) As of December 31, 2005 2004 (As restated) CURRENT
ASSETS Cash and cash equivalents 5,776 12,171 Short-term
interest-bearing bank deposits 1,206 1,916 Short-term investments
3,500 - Held to maturity securities 4,388 8,583 Trade accounts
receivable, net 6,841 6,850 Inventories 6,606 6,354 Other current
assets 1,141 1,169 29,458 37,043 LONG-TERM ASSETS Long-term
interest-bearing bank deposits 2,974 2,145 Held to maturity
securities 4,952 5,989 Other Long-term assets 262 382 Severance pay
funds 2,186 2,288 10,374 10,804 FIXED ASSETS, NET 2,507 2,119 Total
assets 42,339 49,966 CURRENT LIABILITIES Trade accounts payable
5,744 4,795 Other current liabilities 8,880 6,539 14,624 11,334
LONG-TERM LIABILITIES Liability for employee termination benefits
2,907 3,075 Deferred income 1,264 3,831 Other long-term liability
100 145 4,271 7,051 SHAREHOLDERS' EQUITY Ordinary shares 46 46
Additional paid-in capital 73,636 73,333 Accumulated other
comprehensive income (18) 8 Accumulated deficit (50,220) (41,806)
Total shareholders' equity 23,444 31,581 Total liabilities and
shareholders' equity 42,339 49,966 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: .
Investor relations Contacts: Ehud Helft / Kenny Green, GK Investor
Relations, Tel: +1-866-704-6710, E-mail: ,
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