NVMI Nova Ltd

REHOVOT, Israel, February 20 /PRNewswire-FirstCall/ -- Nova Measuring Instruments Ltd. (NASDAQ:NVMI), provider of leading edge stand alone metrology and the market leader of integrated metrology solutions to the semiconductor process control market, today reported its 2006 fourth quarter and full year financial results, announcing a 60% annual increase in 2006 revenues. Total revenues for the fourth quarter of 2006 were $14.1 million, an increase of 59% over the fourth quarter of 2005, and an increase of 13% over the third quarter of 2006. Gross margin for the fourth quarter of 2006 was 41%, compared with 42% for the fourth quarter of 2005, and compared with 41% for the third quarter of 2006. Total operating expenses were $6.6 million, or 47% of revenues, for the fourth quarter of 2006, compared with $5.4 million, or 61% of revenues, in the fourth quarter of 2005, and $6.0 million, or 48% of revenue, in the third quarter of 2006. Net loss for the fourth quarter of 2006 declined to $0.8 million, or $0.05 per share, compared with a net loss of $1.5 million for the fourth quarter of 2005, or $0.10 per share, and compared with a net loss of $0.8 million, or $0.05 per share, for the third quarter of 2006. The results for the fourth quarter of 2006 included a one-time charge of $0.3 million related to headcount reduction and realignment of activities as part of the company's cost reduction initiative, and a $0.6 million share based compensation expense and amortization of intangible assets. Total revenues for year 2006 were $48.3 million, a 60% increase over total revenues of $30.1 million reported for year 2005. Gross margin was 43% in 2006, compared with 36% in 2005. Total operating expenses in 2006 were $23.1 million, or 48% of revenues, compared with $19.9 million, or 66% of revenues in 2005. Net loss for the year declined substantially to $1.9 million, or $0.12 per share, compared with a net loss of $8.4 million, or $0.55 per share, in 2005. The results for year 2006 included the one-time charge of $0.3 million as described above, and $0.8 million share based compensation expense and amortization of intangible assets. Cash and equivalents at 2006 year end were $15.2 million, a decrease of $0.9 million compared to the end of the third quarter of 2006. "2006 was a year of major achievement for Nova," said Gabi Seligsohn, President and CEO. "In addition to very strong revenue growth in our core business as well as significant market share gains, we accomplished some important objectives. We added important new products and made a strategic acquisition in order to expand our available market. We also realigned the management team and implemented a cost reduction initiative. Reflecting our successful initial penetration into a new market, revenues from Stand Alone Optical CD products accounted for approximately 10% of our overall yearly systems revenues." "Looking ahead," continued Seligsohn, "we expect further growth from our new products, mainly in the second half of the year. Together with our focus on cost controls, we expect this growth to enable us to generate improved profitability in 2007." The Company will host a conference call today, February 20, 2007 at 10:00am EST. To participate please dial in the U.S: 1-888-407-2553, UK: 0-800-051-8913 or internationally: +972-3-918-0609 at least 5 minutes before the start of the call. A recording of the call will be available on Nova's website, within 24 hours following the end of the call. About Nova Nova Measuring Instruments Ltd. develops, produces and markets advanced integrated and stand alone metrology solutions for the semiconductor manufacturing industry. Nova is traded on the NASDAQ & TASE under the symbol NVMI. The Company's website is http://www.nova.co.il/. 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 trends, demand for our products, expected deliveries, transaction, expected revenues, operating results, and earnings. 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. These risks and other factors include but are not limited to: our dependency on a single integrated process control product line; the highly cyclical nature of the markets we target; 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; risks associated with our dependence on a single manufacturing facility; our ability to expand our manufacturing capacity or marketing efforts to support our future growth; our dependency on a small number of large customers and small number of suppliers; risks related to our intellectual property; 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; changes in customer demand for our products 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, 2005 filed with the Securities and Exchange Commission on June 29, 2006. 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 STATEMENT OF OPERATIONS (U.S. dollars in thousands, except per share data) Q4-2006 Q4-2005 Q3-2006 REVENUES Product sales 11,463 6,601 9,857 Services 2,603 2,236 2,644 14,066 8,837 12,501 COST OF REVENUES Product sales 5,562 2,939 5,175 Services 2,751 2,152 2,247 8,313 5,091 7,422 GROSS PROFIT 5,753 3,746 5,079 OPERATING EXPENSES Research & Development expenses, net 2,587 2,280 2,272 Sales & Marketing expenses 2,747 2,007 2,292 General & Administration expenses 1,283 1,089 1,423 6,617 5,376 5,987 OPERATING LOSS 864 1,630 908 INTEREST INCOME, NET 104 105 130 NET LOSS 760 1,525 778 Loss per share 0.05 0.10 0.05 Shares used for calculation of loss per share 16,771 15,453 16,178 NOVA MEASURING INSTRUMENTS LTD. YEARLY CONSOLIDATED STATEMENT OF OPERATIONS (U.S. dollars in thousands, except per share data) Year ended December 31, 2006 2005 2004 (As Restated) REVENUES Product sales 38,258 21,985 29,274 Services 10,034 8,157 7,532 48,292 30,142 36,806 COST OF REVENUES Product sales 18,728 11,413 14,396 Services 9,015 7,893 6,715 27,743 19,306 21,111 GROSS PROFIT 20,549 10,836 15,695 OPERATING EXPENSES Research & Development expenses, net 9,166 9,301 8,665 Sales & Marketing expenses 8,754 6,950 6,647 General & Administration expenses 5,136 3,626 2,331 23,056 19,877 17,643 OPERATING LOSS 2,507 9,041 1,948 INTEREST INCOME, NET 573 627 528 NET LOSS 1,934 8,414 1,420 Loss per share 0.12 0.55 0.09 Shares used for calculation of loss per share 15,976 15,394 15,259 NOVA MEASURING INSTRUMENTS LTD. CONSOLIDATED BALANCE SHEET (U.S. dollars in thousands) As of December 31, 2006 2005 CURRENT ASSETS Cash and cash equivalents 4,176 5,776 Short-term interest-bearing bank deposits 466 1,206 Short-term investments 2,400 3,500 Held to maturity securities 3,265 4,388 Trade accounts receivable 10,252 6,841 Inventories 8,968 6,606 Other current assets 1,917 1,141 31,444 29,458 LONG-TERM ASSETS Long-term interest-bearing bank deposits 3,172 2,974 Held to maturity securities 1,704 4,952 Other Long-term assets 222 262 Severance pay funds 2,249 2,186 7,347 10,374 FIXED ASSETS, NET 2,601 2,507 INTANGIBLE ASSETS, NET 3,027 - Total assets 44,419 42,339 CURRENT LIABILITIES Trade accounts payable 5,884 5,744 Deferred income 3,048 3,852 Other current liabilities 6,639 5,028 15,571 14,624 LONG-TERM LIABILITIES Liability for employee termination 3,224 2,907 benefits Deferred income 979 1,264 Other long-term liability 70 100 4,273 4,271 SHAREHOLDERS' EQUITY 24,575 23,444 Total liabilities and shareholders' equity 44,419 42,339 Company Contact: Investor relations Contacts: Dror David, Chief Financial Officer Ehud Helft / Kenny Green Nova Measuring Instruments Ltd. GK International Investor Relations Tel: +972-8-938-7505 Tel: +1-866-704-6710 E-mail: E-mail: http://www.nova.co.il/ 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 International Investor Relations, Tel: +1-866-704-6710, E-mail: ,

Copyright