REHOVOT, Israel, November 2, 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 third quarter financial results.
Highlights for the Third Quarter of 2010
- Record revenues of $24.2 million
- Record gross margins of 56%
- Record net income of $7.3 million, or $0.27 per diluted share; net
margin of 30%
- $7.9 million positive operating cash flow; strong balance sheet with
cash reserves of $54.8 million
Management Comments
"Q3 was another excellent quarter, with record performance
achieved in all aspects of our business", said Gabi Seligsohn, President and CEO of Nova.
"During the quarter we also continued to execute on our strategy of
expanding our customer base with the stand alone metrology product
line, adding two new foundry customers and one new memory customer.
We expect to recognize most of the related revenues at the
beginning of 2011."
"On the integrated metrology front, we continued to enjoy record
business volumes with many fabs ordering and installing dozens of
tools per fab. Given the significant challenges experienced in
design rule shrink in all our served markets, the extent by which
integrated metrology is being deployed is the highest it has ever
been. Meanwhile, we successfully started the proliferation of our
latest integrated metrology product, the Nova i500, and continued
the delivery of the Nova T500 stand alone tool. We believe that the
combination of new products and the recent customer design wins
will support further growth in the future."
2010 Fourth Quarter and Annual Guidance
For the fourth quarter of 2010, management expects revenues of
$24.5-$26 million, with net
profitability of 26%-29%.
In terms of the company's existing 2010 annual guidance, of
revenues of $78-$85 million and net
profitability of 21%-24%, management expects to reach or slightly
exceed the top-end of this guidance.
2010 Third Quarter Results
Total revenues for the third quarter of 2010 were $24.2 million, an increase of 112% relative to
the third quarter of 2009, and an increase of 25% relative to the
second quarter of 2010.
Gross margin for the third quarter of 2010 was 56%, compared
with 48% in the third quarter of 2009, and 54% in the second
quarter of 2010.
Operating expenses in the third quarter of 2010 were
$6.4 million, compared with
$4.0 million in the third quarter of
2009, and $5.8 million in the second
quarter of 2010.
The company reported net income of $7.3
million, or $0.27 per diluted
share, in the third quarter of 2010. This compares to a net income
of $1.7 million, or $0.08 per share, in the third quarter of 2009,
and a net income of $4.7 million, or
$0.18 per diluted share, in the
second quarter of 2010.
The company generated $7.9 million
in cash from operating activities during the third quarter of 2010,
and total cash reserves at the end of the third quarter of 2010
were $54.8 million.
The Company will host a conference call today, November 2, 2010, at 10:00am ET. To participate, please dial in the
US: 1 866 850 2201; in Israel: 03
721 9510 or internationally: +1 212 444 0482. 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 http://www.nova.co.il.
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 two integrated process control product lines; 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; our dependency on OEM suppliers; 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; 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.
NOVA MEASURING INSTRUMENTS LTD.
CONSOLIDATED BALANCE SHEET
(U.S. dollars in thousands)
As of As of
September 30, December 31,
2010 2009
CURRENT ASSETS
Cash and cash equivalents 10,977 9,861
Short-term interest-bearing bank
deposits 43,228 8,607
Trade accounts receivable 12,523 11,545
Inventories 10,041 3,949
Other current assets 3,088 1,728
79,857 35,690
LONG-TERM ASSETS
Long-term interest-bearing bank
deposits 570 561
Other Long-term assets 167 142
Severance pay funds 2,525 2,368
3,262 3,071
FIXED ASSETS, NET 2,422 2,163
Total assets 85,541 40,924
CURRENT LIABILITIES
Trade accounts payable 8,644 3,715
Deferred income 5,115 1,671
Other current liabilities 6,801 5,237
20,560 10,623
LONG-TERM LIABILITIES
Liability for employee severance pay 3,478 3,168
Deferred income 1,502 183
Other long-term liability 26 35
5,006 3,386
SHAREHOLDERS' EQUITY 59,975 26,915
Total liabilities and shareholders'
equity 85,541 40,924
NOVA MEASURING INSTRUMENTS LTD.
QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except per share data)
Three months ended
September 30, June 30, September 30,
2010 2010 2009
REVENUES
Product sales 20,350 15,889 8,717
Services 3,860 3,551 2,677
24,210 19,440 11,394
COST OF REVENUES
Products 8,182 6,554 3,699
Services 2,542 2,452 2,191
10,724 9,006 5,890
GROSS PROFIT 13,486 10,434 5,504
OPERATING EXPENSES
Research & Development expenses,
net 2,783 2,828 1,850
Sales & Marketing expenses 2,810 2,242 1,523
General & Administration expenses 795 679 594
6,388 5,749 3,967
OPERATING PROFIT 7,098 4,685 1,537
Interest income, net 176 24 153
NET INCOME FOR THE PERIOD 7,274 4,709 1,690
Net income per share:
Basic 0.29 0.19 0.09
Diluted 0.27 0.18 0.08
Shares used for calculation of
net income per share:
Basic 25,008 24,808 19,417
Diluted 26,478 26,406 19,942
NOVA MEASURING INSTRUMENTS LTD.
YEAR TO DATE CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except per share data)
Nine-months ended
September 30, September 30,
2010 2009
REVENUES
Product sales 49,140 16,993
Services 10,491 7,085
59,631 24,078
COST OF REVENUES
Product sales 20,214 7,333
Services 7,383 6,554
27,597 13,887
GROSS PROFIT 32,034 10,191
OPERATING EXPENSES
Research & Development expenses, net 8,165 4,816
Sales & Marketing expenses 7,248 3,989
General & Administration expenses 2,125 1,581
17,538 10,386
OPERATING PROFIT (LOSS) 14,496 (195)
INTEREST INCOME, NET 186 132
NET INCOME (LOSS) FOR THE PERIOD 14,682 (63)
Net income (loss) per share:
Basic 0.61 (0.00)
Diluted 0.57
Shares used for calculation of net
income (loss) per share:
Basic 24,182 19,391
Diluted 25,540
NOVA MEASURING INSTRUMENTS LTD.
QUARTERLY CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
Three months ended
September 30, June 30, September 30,
2010 2010 2009
CASH FLOW - OPERATING ACTIVITIES
Net income for the period 7,274 4,709 1,690
Adjustments to reconcile net loss to
net cash
used in operating activities:
Depreciation and amortization 354 323 311
Amortization of deferred stock-based
compensation 215 122 130
Increase (decrease) in liability for
employee termination benefits, net (10) 105 (2)
Net recognized gains on investments -- -- 4
Decrease (increase) in trade (1,670) 67 (622)
accounts receivables
Decrease (increase) in inventories (2,065) (1,855) 790
Decrease (Increase) in other short
and long term assets (776) (388) 45
Increase (decrease) in trade
accounts payables 2,095 289 (662)
Increase in other current and
long-term liabilities 1,738 1,130 1,039
Increase (decrease) in short and
long term deferred income 746 1,769 (857)
Net cash from operating activities 7,901 6,271 1,866
CASH FLOW - INVESTMENT ACTIVITIES
Increase in short-term
interest-bearing bank deposits (3,934) (10,701) --
Proceeds from long-term
interest-bearing bank deposits -- -- 4,595
Investments in long-term deposits -- -- (2)
Additions to fixed assets (453) (307) (72)
Net cash from (used in) investment
Activities (4,387) (11,008) 4,521
CASH FLOW - FINANCING ACTIVITIES
Shares issued under employee
share-based plans 625 51 --
Shares issued in public offering -- -- 142
Net cash from financing activities 625 51 142
Increase (decrease) in cash and cash
Equivalents 4,139 (4,686) 6,529
Cash and cash equivalents -
beginning of period 6,838 11,524 9,017
Cash and cash equivalents - end of
period 10,977 6,838 15,546
NOVA MEASURING INSTRUMENTS LTD.
YEAR TO DATE CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
Nine months ended
September September
30, 2010 30, 2009
CASH FLOW - OPERATING ACTIVITIES
Net income (loss) for the period 14,682 (63)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization 1,001 907
Amortization of deferred stock-based 453 336
compensation
Increase in liability for employee
termination benefits, net 143 28
Increase in trade accounts receivables (978) (2,819)
Decrease (increase) in inventories (6,187) 1,946
Decrease (increase) in other current and
long term assets (1,423) 134
Increase (decrease) in trade accounts
payables and other long
term liabilities 4,929 (1,964)
Increase (decrease) in current liabilities 1,762 (600)
Increase (decrease) in short and long term
deferred income 4,763 (1,795)
Net cash from (used in) operating activities 19,145 (3,890)
CASH FLOW - INVESTMENT ACTIVITIES
Decrease (increase) in short-term
interest-bearing bank deposits (34,621) 50
Proceeds from (investment in) long-term
Deposits (9) 19
Additions to fixed assets (1,165) (100)
Net cash used in investment activities (35,795) (31)
CASH FLOW - FINANCING ACTIVITIES
Shares issued under employee share-based
Plans 798 142
Shares issued in public offering 16,968 --
Net cash from financing activities 17,766 142
Increase (decrease) in cash and cash
Equivalents 1,116 (3,779)
Cash and cash equivalents - beginning of
Period 9,861 19,325
Cash and cash equivalents - end of period 10,977 15,546
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