NVMI Nova Ltd

REHOVOTH, Israel, May 7 /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 results for the first quarter of 2007. Total revenues increased 30% to $13.4 million, compared to $10.3 million reported for the first quarter of 2006. Revenues declined 5% sequentially from the fourth quarter of 2006, reflecting seasonal patterns. Gross margin for the first quarter of 2007 was 44% compared with 46% for the first quarter of 2006 and 41% for the fourth quarter of 2006. Total operating expenses were $6.6 million for the first quarter of 2007, compared with $5.0 million in the first quarter of 2006, and $6.6 million in the fourth quarter of 2006. Operating expenses for the first quarter of 2007 included approximately $1.4 million in legal expenses related to recently settled intelectual property litigation, which masked the effects of the cost reduction initiative that began in the fourth quarter of 2006. Net loss for the first quarter of 2007 was $0.6 million, or $0.04 per share, which included the above mentioned legal expenses and $0.4 million of share based compensation expenses and amortization of intangible assets, compared with breakeven results for the first quarter of 2006, and compared with a net loss of $0.8 million, or $0.05 per share, for the fourth quarter of 2006. Cash reserves at the end of the first quarter of 2007 were $21.2 million, an increase of $6 million compared to the end of fourth quarter of 2006. The increase included $1 million of positive cash flow as well as $5 million in proceeds from the Company's private placement in March 2007. "We are pleased with our continuing business growth which results primarily from continued market share gains as well as initial penetration of new segments." said Gabi Seligsohn, President and CEO. "The positive impact of our cost reduction programs will become more apparent during the second quarter when we will have much smaller legal expenses related to the final aspects of the settlement. Our business momentum, combined with reduction of litigation expenses and our ongoing cost control initiatives, will help us succeed in our drive to reach profitability in 2007, in parallel to further strengthening our leadership in integrated metrology and penetrating new segments." The Company will host a conference call today, May 7, 2007, at 10:00am EST. To participate please dial in the U.S: 1-888-281-1167; UK: 0-800-917-9141; or internationally: +972-3-918-0609 at least 5 minutes before the start of the call. A recording of the call will be avialble on Nova's website, within 24 hours following the end 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 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, earnings 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. 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 STATEMENTS OF OPERATIONS (U.S. dollars in thousands, except per share data) Q1-2007 Q1-2006 Q4-2006 REVENUES Product sales 10,443 7,797 11,463 Services 2,924 2,485 2,603 13,367 10,282 14,066 COST OF REVENUES Product sales 4,868 3,656 5,562 Services 2,666 1,857 2,751 7,534 5,513 8,313 GROSS PROFIT 5,833 4,769 5,753 OPERATING EXPENSES Research & Development expenses, 2,333 2,297 2,587 net Sales & Marketing expenses 2,198 1,672 2,747 General & Administration expenses 2,112 1,048 1,283 6,643 5,017 6,617 OPERATING LOSS 810 248 864 INTEREST INCOME, NET 169 207 104 NET LOSS 641 41 760 Basic and diluted loss per share 0.04 0.00 0.05 Shares used for calculation of basic and diluted loss per share 17,239 15,478 16,771 NOVA MEASURING INSTRUMENTS LTD. CONSOLIDATED BALANCE SHEET (U.S. dollars in thousands) As of, As of, March 31, December 31, 2007 2006 CURRENT ASSETS Cash and cash equivalents 7,657 4,176 Short-term interest-bearing bank deposits 183 466 Short-term investments 5,000 2,400 Held to maturity securities 3,377 3,265 Trade accounts receivable 8,796 10,252 Inventories 9,016 8,968 Other current assets 1,522 1,917 35,551 31,444 LONG-TERM ASSETS Long-term interest-bearing bank deposits 2,665 3,172 Held to maturity securities 2,296 1,704 Other Long-term assets 224 222 Severance pay funds 2,398 2,249 7,583 7,347 FIXED ASSETS, NET 2,883 2,601 INTANGIBLE ASSETS, NET 2,920 3,027 Total assets 48,937 44,419 CURRENT LIABILITIES Trade accounts payable 6,775 6,424 Deferred income 3,243 3,048 Other current liabilities 5,452 6,099 15,470 15,571 LONG-TERM LIABILITIES Liability for employee severance pay 3,397 3,224 Deferred income 701 979 Other long-term liability 70 70 4,168 4,273 SHAREHOLDERS' EQUITY 29,299 24,575 Total liabilities and shareholders' equity 48,937 44,419 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: 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: ; Investor relations Contacts: Ehud Helft / Kenny Green, GK Investor Relations, Tel: +1-866-704-6710, E-mail:

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