NVMI Nova Ltd

Nova Measuring Instruments Announces 2003 Third Quarter Results REHOVOTH, Israel, Nov. 13 /PRNewswire-FirstCall/ -- Nova Measuring Instruments, Ltd. , the worldwide market leader in Integrated Metrology systems for the semiconductor industry today reported results for the third quarter of 2003. 2003 Third Quarter Results Total revenues for the third quarter of 2003 were $7.4 million, a 36% increase over revenues of $5.4 million reported for the third quarter of 2002, and a 15% sequential increase over revenues of $6.4 million for the previous quarter. The Company reported gross profit of $3.1 million (42% of revenues) compared with gross profit of $2.0 million (37% of revenues) for the third quarter of 2002 and gross profit of $2.4 million (38% of revenues) in the previous quarter. Net loss for the quarter was $(0.8) million, or $(0.06) per share, compared with a net loss in the third quarter of 2002 of $(2.7) million, or $(0.18) per share and a net loss of $(1.4) million, or $(0.09) per share in the previous quarter. Third quarter 2003 results include stock-based compensation expenses of $0.1 million. Excluding these expenses, net loss was $(0.05) per share. Research and development expenses were $1.8 million (25% of revenues) compared with $2.4 million (44% of revenues) in the third quarter of 2002 and $1.6 million (25% of revenues) in the previous quarter. Sales and marketing expenses were $1.7 million (23% of revenues) compared with $1.8 million (33% of revenues) in the third quarter of 2002 and $1.8 million (28% of revenues) in the previous quarter. At the end of the third quarter, cash and cash equivalents, short and long term bank deposits were $32 million, the same level as at the end of previous quarter. Working capital was recorded at $29 million. The third quarter results reflects a continuing sequential revenue growth of 36% over the same quarter last year and 15% sequentially. The results also show a continuing reduction in the net loss, from $1.4M to $0.8M and approaching the breakeven point. Sales of the quarter included the delivery of the new NovaScan CD systems, both in stand-alone and integrated configurations. We believe there is now a higher probability of increasing sales of the NovaScan CD in the next 12 months. In addition, over the quarter, the company has seen some important gains of multiple systems sales in several major accounts in Japan and Asia Pacific, and maintained its leading integrated metrology market share of over 70%. Dr. Giora Dishon, President & CEO of Nova commented: "The company is succeeding to improve its performance significantly and consistently: increased revenues, improved margins and reduction of losses for several quarters. Improvements are across all regions, but most significantly in Asia Pacific and Japan, and we expect that these territories will continue to lead in the coming quarters. We are proud that 18 of the top 20 semiconductor manufacturers are now using our integrated metrology systems and Advanced Process Control (APC) solutions. Orders and deliveries in both stand-alone and integrated systems of the new NovaScan 3030CD system for optical CD control -- a process control equipment segment, which Dataquest expects to grow from $8M last year to about $100M in 2006, are very encouraging. Most of the sales to the different CMP equipment manufacturers were of our new 300mm systems, and yet we have also seen a trend of increase in upgrade activity. These combined, may be initial signs of a recovery in the sector, and they do represent an additional opportunity for the company." Dr. Dishon concluded, "We are encouraged by the results and the trends in the industry. However, as long as the visibility is still limited, we continue to manage our business looking forward with a high sense of caution -- ramping up and continuing introduction of our new integrated systems, while controlling the cost of the operations to reduce losses and to return the business to profitability." 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 may contain forward-looking statements, including statements related to anticipated growth rates, manufacturing capacity and tax rate. Actual results may differ materially from those projected due to a number of risks, including 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, or changes in tax requirements. Nova 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 Form F-1 filed with the Securities and Exchange Commission on April 9, 2000. 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. INTERIM CONSOLIDATED STATEMENT OF OPERATIONS (U.S. dollars in thousands, except share and per share data) Three months ended September 30, June 30, 2003 2003 (unaudited) REVENUES Products sale 5,827 5,213 Services 1,565 1,220 7,392 6,433 COST OF REVENUES Products sale 2,794 2,549 Services 1,526 1,455 4,320 4,004 GROSS PROFIT 3,072 2,429 OPERATING COSTS AND EXPENSES Research & Development expenses, net 1,813 1,605 Sales & Marketing expenses 1,727 1,782 General & Administration expenses 466 489 4,006 3,876 OPERATING LOSS (934) (1,447) FINANCING INCOME 87 93 LOSS (847) (1,354) LOSS PER SHARE (0.06) (0.09) Comments: 1. Employee Stock Based Compensation expenses 134 106 2. Shares used in calculation of basic loss per share 14,988 14,939 3. The adjusted results excluding Employee Stock Based Compensation: Gross Profit 3,088 2,442 Operating Expenses 3,888 3,783 Loss (800) (1,248) Loss per share (0.05) (0.08) NOVA MEASURING INSTRUMENTS LTD. INTERIM CONSOLIDATED STATEMENT OF OPERATIONS (U.S. dollars in thousands, except share and per share data) Three months ended September 30, September 30, 2003 2002 (unaudited) REVENUES Products sale 5,827 3,662 Services 1,565 1,761 7,392 5,423 COST OF REVENUES Products sale 2,794 1,787 Services 1,526 1,651 4,320 3,438 GROSS PROFIT 3,072 1,985 OPERATING COSTS AND EXPENSES Research & Development expenses, net 1,813 2,390 Sales & Marketing expenses 1,727 1,792 General & Administration expenses 466 434 4,006 4,616 OPERATING LOSS (934) (2,631) FINANCING INCOME (EXPENSES) 87 (45) LOSS (847) (2,676) LOSS PER SHARE (0.06) (0.18) Comments: 1. Employee Stock Based Compensation expenses 134 277 2. Shares used in calculation of basic loss per share 14,988 14,904 3. The adjusted results excluding Employee Stock Based Compensation: Gross Profit 3,088 2,017 Operating Expenses 3,888 4,372 Loss (800) (2,399) Loss per share (0.05) (0.16) NOVA MEASURING INSTRUMENTS LTD. INTERIM CONSOLIDATED BALANCE SHEET (U.S. dollars in thousands) As of As of September 30, December 31, 2003 2002 CURRENT ASSETS Cash and cash equivalents & 28,383 37,586 Short-term interest-bearing bank deposits Held to maturity securities 1,990 994 Trade accounts receivable 7,015 2,663 Inventories 2,911 3,150 Other current assets 1,103 1,137 41,402 45,530 LONG-TERM ASSETS Long-term interest-bearing bank deposits 1,483 - Severance pay funds 1,960 1,701 3,443 1,701 FIXED ASSETS, NET 1,442 1,777 46,287 49,008 CURRENT LIABILITIES Trade accounts payable 3,787 3,340 Other current liabilities 8,317 7,616 12,104 10,956 LONG-TERM LIABILITIES Liability for employee termination benefits 2,592 2,162 Other long-term liability 163 213 2,755 2,375 SHAREHOLDERS' EQUITY Share capital 46 46 Additional paid- in capital 72,580 72,614 Deferred stock-based compensation (243) (809) Accumulated other comprehensive income 8 - Accumulated deficit (40,963) (36,174) 31,428 35,677 46,287 49,008 Company Contact: Investor relations Contacts: Chai Toren, CFO and Vice President Finance Ehud Helft or Kenny Green Nova Measuring Instruments Ltd. Gal IR International 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: Chai Toren, CFO and Vice President Finance of Nova Measuring Instruments, Ltd., +972-8-938-7505, ; or Investors - Ehud Helft, or Kenny Green, , both of Gal IR International, +1-866-704-6710, for Nova Measuring Instruments, Ltd. Web site: http://www.nova.co.il/

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