REHOVOT, Israel, May 4, 2010 /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 2010 first quarter financial results.
Highlights for the first quarter of 2010
- Total revenues of $16.0 million
- Record level gross margins of 51%
- GAAP net income of $2.7 million, or $0.11 per diluted share
- $5.0 million positive operating cash flow
- New stand alone products gaining market traction
2010 First Quarter Results
Total revenues for the first quarter of 2010 were $16.0 million, an increase of 179% from the first
quarter of 2009, and an increase of 5% from the fourth quarter of
2009.
Gross margin for the first quarter of 2010 was 51%, compared
with 33% in the first quarter of 2009, and 49% in the fourth
quarter of 2009.
Operating expenses in the first quarter of 2010 were
$5.4 million, compared with
$3.5 million in the first quarter of
2009, and $4.7 million in the fourth
quarter of 2009.
On a GAAP basis, the company reported net income of $2.7 million, or $0.11 per diluted share, in the first quarter of
2010. This compares to a net loss of $1.7
million, or $0.09 per share,
in the first quarter of 2009, and net income of $2.7 million, or $0.13 per diluted share, in the fourth quarter of
2009.
On a non-GAAP basis, which excludes stock-based compensation
expenses, the company reported net income of $2.8 million, or $0.12 per diluted share, in the first quarter of
2010. This compares to a non-GAAP net loss of $1.6 million, or $0.08 per share, in the first quarter of 2009,
and a non-GAAP net income of $2.8
million, or $0.13 per diluted
share, in the fourth quarter of 2009.
The company generated $5.0 million
in cash from operating activities during the first quarter of 2010,
and total cash reserves as of March 31,
2010 were $40.7 million.
Management Comments
"During the first quarter, we reached record quarterly shipment
levels and again achieved solid financial performance, through our
strong position in new industry expansion projects and through our
ability to provide additional functionality and value to our
existing products", commented Gabi
Seligsohn, President and CEO of Nova. "In addition, our
service business regained momentum, and presented 19% increase in
revenues and improved gross margins".
"Semiconductor business fundamentals continue to be strong at
the high end of technology and our leading edge customers have
indicated that demand is expected to continue to be robust
throughout the year. Given the pace of technology transition,
several customers are actively evaluating our new stand alone
products, and we believe these evaluations lay the foundation for
additional business growth in the future and for further
improvement of our competitive position in our core markets".
"The memory side of the business is performing better than it
did three months ago. In addition, we currently have better
visibility on new fab build-outs and expansions, and we believe we
are very well positioned to address these opportunities. Based on
these developments, we think it is appropriate to raise our
guidance for the year".
Revised Guidance for 2010
The company's revised revenue guidance for 2010 is $61-$66 million. Based on this revenue guidance,
the company is also guiding to net profitability of 13%-17% for
2010.
The Company will host a conference call today, May 4, 2010, at 9:00am
ET. To participate, please dial in the US: 1 866 850 2201;
or internationally: +972 3 721 9510. A recording of the call will
be available on Nova's website, within 24 hours following the end
of the call.
In addition, a presentation to accompany the conference call
will be available together with a live webcast of the conference
call. This will be accessible from a link on Nova's website at
www.nova.co.il.
This press release provides financial measures that exclude
non-cash charges for stock-based compensation and are therefore not
calculated in accordance with generally accepted accounting
principles (GAAP). Management believes that these non-GAAP
financial measures provide meaningful supplemental information
regarding Nova's performance because they reflect our operational
results and enhances management's and investors' ability to
evaluate Nova's performance before charges considered by management
to be outside Nova's ongoing operating results.
The presentation of this non-GAAP financial information is not
intended to be considered in isolation or as a substitute for the
financial information prepared and presented in accordance with
GAAP. Management believes that it is in the best interest of its
investors to provide financial information that will facilitate
comparison of both historical and future results and allows greater
transparency to supplemental information used by management in its
financial and operational decision making. A reconciliation of each
GAAP to non-GAAP financial measure discussed in this press release
is contained in the accompanying financial tables.
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; risks related to currency fluctuations;
unanticipated consequences of the global economic crisis 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 31,2009 filed with the Securities and
Exchange Commission on March 26,
2010. 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.
(Tables to Follow)
NOVA MEASURING INSTRUMENTS LTD.
CONSOLIDATED BALANCE SHEET
(U.S. dollars in thousands)
As of As of December 31,
March 31, 2010 2009
CURRENT ASSETS
Cash and cash equivalents 11,524 9,861
Short-term interest-bearing bank
deposits 28,593 8,607
Trade accounts receivable 10,920 11,545
Inventories 6,142 3,949
Other current assets 1,976 1,728
59,155 35,690
LONG-TERM ASSETS
Long-term interest-bearing bank
deposits 570 561
Other long-term assets 137 142
Severance pay funds 2,389 2,368
3,096 3,071
FIXED ASSETS, NET 2,318 2,163
Total assets 64,569 40,924
CURRENT LIABILITIES
Trade accounts payable 6,260 3,715
Deferred income 3,916 1,671
Other current liabilities 4,055 5,237
14,231 10,623
LONG-TERM LIABILITIES
Liability for employee severance 3,252
pay 3,168
Deferred income 186 183
Other long-term liability 32 35
3,470 3,386
SHAREHOLDERS' EQUITY 46,868 26,915
Total liabilities and shareholders'
equity 64,569 40,924
NOVA MEASURING INSTRUMENTS LTD.
QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except per share data)
Three months ended
March 31, December 31, March 31,
2010 2009 2009
REVENUES
Product sales 12,901 12,646 3,645
Services 3,080 2,594 2,075
15,981 15,240 5,720
COST OF REVENUES
Products 5,478 5,399 1,582
Services 2,389 2,445 2,274
7,867 7,844 3,856
GROSS PROFIT 8,114 7,396 1,864
OPERATING EXPENSES
Research & Development expenses, net 2,554 2,049 1,783
Sales & Marketing expenses 2,196 2,025 1,173
General & Administration expenses 651 659 503
5,401 4,733 3,459
OPERATING PROFIT (LOSS) 2,713 2,663 (1,595)
Interest income (expenses), net (14) 31 (64)
NET INCOME (LOSS) FOR THE PERIOD 2,699 2,694 (1,659)
Net income (loss) per share:
Basic 0.12 0.14 (0.09)
Diluted 0.11 0.13
Shares used for calculation of net
income (loss)
per share:
Basic 22,666 19,717 19,378
Diluted 24,236 21,173
NOVA MEASURING INSTRUMENTS LTD.
QUARTERLY CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
Three months ended
March 31, December 31 March 31,
2010 2009 2009
CASH FLOW - OPERATING ACTIVITIES
Net income (loss) for the period 2,699 2,694 (1,659)
Adjustments to reconcile net loss to
net cash
used in operating activities:
Depreciation and amortization 324 347 320
Amortization of deferred stock-based 116 118 106
compensation
Increase (decrease) in liability for
employee termination benefits, net
48 (187) (114)
Decrease (increase) in trade accounts 625 (5,943) 244
receivables
Decrease (increase) in inventories (2,267) 749 520
Decrease (increase) in other short and
long term assets
(260) (555) 697
Increase (decrease) in trade accounts 2,545 2,198 (1,200)
payables
Increase (decrease) in other current
and long-term
(1,105) 1,769 (1,637)
liabilities
Increase (decrease) in short and long
term deferred
2,248 913 (894)
income
Net cash from (used in) operating 4,973 2,103 (3,617)
activities
CASH FLOW - INVESTMENT ACTIVITIES
Decrease (increase) in short-term
interest-bearing bank deposits
(19,986) (8,560) 50
Increase in short-term investments -- -- (4,595)
Investment in long-term (9) (36) (120)
interest-bearing bank deposits
Additions to fixed assets (405) (303) (4)
Net cash used in investment activities (20,400) (8,899) (4,669)
CASH FLOW - FINANCING ACTIVITIES
Shares issued under employee
share-based plans
122 1,111 --
and exercise of warrants
Shares issued in a public offering 16,968 -- --
Net cash from financing activities 17,090 1,111 --
Increase (decrease) in cash and cash 1,663 (5,685) (8,286)
equivalents
Cash and cash equivalents - beginning 9,861 15,546 19,325
of period
Cash and cash equivalents - end of
period 11,524 9,861 11,039
NOVA MEASURING INSTRUMENTS LTD.
DISCLOSURE OF NON-GAAP NET INCOME (LOSS)
(U.S. dollars in thousands, except per share data)
Three months ended
March 31, December 31, March 31,
2010 2009 2009
GAAP Net income (loss) for the quarter 2,699 2,694 (1,659)
Non-GAAP Adjustments:
Stock based compensation expenses 116 118 106
Non-GAAP Net income (loss) for the
quarter 2,815 2,812 (1,553)
Non-GAAP net income (loss) per share:
Basic 0.12 0.14 (0.08)
Diluted 0.12 0.13
Shares used for calculation of non-GAAP
net income (loss) per share:
Basic 22,666 19,717 19,378
Diluted 24,236 21,173
Company Contact:
Dror David, Chief Financial Officer
Nova Measuring Instruments Ltd.
Tel:+972-8-938-7505
E-mail: info@nova.co.il
http://www.nova.co.il
Investor relations Contacts:
Ehud Helft / Kenny Green
CCG Investor Relations
Tel: +1-646-201-9246
E-mail: nova@ccgisrael.com
SOURCE Nova Measuring Instruments Ltd