NVMI Nova Ltd

REHOVOT, Israel, August 1 /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 second quarter of 2007. Total revenues increased 29% to $14.8 million, compared to $11.4 million reported for the second quarter of 2006. Revenues increased 11% sequentially compared to $13.4 million reported for the first quarter of 2007. Gross margin for the second quarter of 2007 was 46% compared with 43% for the second quarter of 2006 and 44% for the first quarter of 2007. Total operating expenses were $5.9 million for the second quarter of 2007, compared with $5.4 million in the second quarter of 2006, and $6.6 million in the first quarter of 2007. Net profit for the second quarter of 2007 was $1.1 million, $0.06 basic profit per share and $0.05 diluted profit per share, compared with a net loss of $0.4 million, or $0.02 per share, for the second quarter of 2006, and compared with a net loss of $0.6 million, or $0.04 per share, for the first quarter of 2007. The second quarter net results included $0.4 million of share based compensation expenses and amortization of intangible assets. Cash reserves at the end of the second quarter of 2007 were $20.4 million, a decrease of $0.7 million compared to the end of first quarter of 2007. This decrease is related to final payments of intelectual property litigation costs which were settled back in April this year. "We are pleased to report that, within 12 months of the management reorganization, our initiatives have resulted in significant revenue growth and a long-awaited return to profitability," said Gabi Seligsohn, President and CEO. "In addition to continued market share gains and penetration of new market segments, the impact of our cost reduction programs, and the contribution of high-margin software sales have also helped us achieve this goal. We have succeeded in significantly lowering our breakeven point, and will contiune to focus on profitability going forward." The Company will host a conference call today, August 1, 2007, at 10:00am EST. To participate please dial in the U.S: +1-866-860-9642; UK: +44(0)-800-032-3367; or internationally: +972-3-918-0687 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, 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, 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, 2006 filed with the Securities and Exchange Commission on May 11, 2007. 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) Q2-2007 Q1-2007 Q2-2006 REVENUES Product sales 12,128 10,443 9,141 Services 2,682 2,924 2,302 14,810 13,367 11,443 COST OF REVENUES Product sales 5,522 4,868 4,335 Services 2,547 2,666 2,160 8,069 7,534 6,495 GROSS PROFIT 6,741 5,833 4,948 OPERATING EXPENSES Research & Development expenses, net 2,203 2,333 2,010 Sales & Marketing expenses 2,528 2,198 2,043 General & Administration expenses 1,159 2,112 1,382 5,890 6,643 5,435 OPERATING PROFIT (LOSS) 851 (810) (487) INTEREST INCOME, NET 220 169 128 NET PROFIT (LOSS) 1,071 (641) (359) Basic profit (loss) per share 0.06 (0.04) (0.02) Diluted profit (loss) per share 0.05 (0.04) (0.02) Shares used for calculation of basic profit (loss) per share 18,904 17,239 15,481 Shares used for calculation of diluted profit (loss) per share 19,652 17,239 15,481 NOVA MEASURING INSTRUMENTS LTD. YEAR TO DATE CONSOLIDATED STATEMENTS OF OPERATIONS (U.S. dollars in thousands, except per share data) Six-months ended June 30, 2007 June 30, 2006 REVENUES Product sales 22,571 16,938 Services 5,606 4,787 28,177 21,725 COST OF REVENUES Product sales 10,390 7,991 Services 5,213 4,017 15,603 12,008 GROSS PROFIT 12,574 9,717 OPERATING EXPENSES Research & Development expenses, net 4,536 4,307 Sales & Marketing expenses 4,726 3,715 General & Administrative expenses 3,271 2,430 12,533 10,452 OPERATING PROFIT (LOSS) 41 (735) INTEREST INCOME, NET 389 335 NET PROFIT (LOSS) 430 (400) Basic profit (loss) per share 0.02 (0.03) Diluted profit (loss) per share 0.02 (0.03) Shares used for calculation of basic profit (loss) per share 18,072 15,475 Shares used for calculation of diluted profit (loss) per share 18,784 15,475 NOVA MEASURING INSTRUMENTS LTD. CONSOLIDATED BALANCE SHEET (U.S. dollars in thousands) As of As of December 31, June 30, 2007 2006 CURRENT ASSETS Cash and cash equivalents 6,254 4,176 Short-term interest-bearing bank deposits 117 466 Short-term investments 7,177 2,400 Held to maturity securities 2,662 3,265 Trade accounts receivable 8,729 10,252 Inventories 9,055 8,968 Other current assets 2,070 1,917 36,064 31,444 LONG-TERM ASSETS Long-term interest-bearing bank deposits 2,167 3,172 Held to maturity securities 1,979 1,704 Other Long-term assets 164 222 Severance pay funds 2,156 2,249 6,466 7,347 FIXED ASSETS, NET 2,886 2,601 INTANGIBLE ASSETS, NET 2,811 3,027 Total assets 48,227 44,419 CURRENT LIABILITIES Trade accounts payable 5,094 6,424 Deferred income 1,752 3,048 Other current liabilities 6,358 6,099 13,204 15,571 LONG-TERM LIABILITIES Liability for employee severance pay 3,081 3,224 Deferred income 990 979 Other long-term liability 70 70 4,141 4,273 SHAREHOLDERS' EQUITY 30,882 24,575 Total liabilities and shareholders' equity 48,227 44,419 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: +1-646-201-9246 E-mail: DATASOURCE: Nova Measuring Instruments Ltd CONTACT: Company Contact: ror 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: +1-646-201-9246, E-mail:

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