REHOVOT, Israel, May 6, 2021 /PRNewswire/ -- Nova
(Nasdaq: NVMI) today announced financial results for the first
quarter ended March 31, 2021.
First Quarter 2021 Highlights:
- Record quarterly revenue of $84.1
million, up 38% year over year
- Record GAAP net income of $17.6
million, or $0.60 per diluted
share, up 46% year over year on a per-share basis
- Record Non-GAAP net income of $20.5
million, or $0.70 per diluted
share, up 37% year over year on a per-share basis
- Record service revenue, led by installed base functionality
expansions and productivity upgrades
- Record product bookings driven by continued diversification
across geographies, fabrication technologies and customers
GAAP Results
($K)
|
|
Q1
2021
|
Q4
2020
|
Q1
2020
|
Revenues
|
$84,133
|
$76,303
|
$61,022
|
Net Income
|
$17,616
|
$13,657
|
$11,682
|
Earnings per Diluted
Share
|
$0.60
|
$0.47
|
$0.41
|
NON-GAAP Results
($K)
|
|
Q1
2021
|
Q4
2020
|
Q1
2020
|
Net Income
|
$20,485
|
$15,872
|
$13,481
|
Earnings per Diluted
Share
|
$0.70
|
$0.55
|
$0.47
|
A reconciliation
between GAAP operating results and non-GAAP operating results is
provided following the financial statements that are part of this
release. Non-GAAP results exclude amortization of acquired
intangible assets, stock-based compensation expenses, expense
related to a transaction made by a financial institution without
Company authorization, facilities transition costs, revaluation of
operating lease liabilities, amortization of debt discount and
issuance costs and tax effect of non-GAAP
adjustment.
|
Management Comments
"Nova delivered a strong growth quarter, outperforming our
guidance and achieving revenue and profit records. Our remarkable
results were driven by the proliferation of our advanced solutions
across customers, segments and technology nodes," commented Eitan
Oppenhaim, President and Chief Executive Officer. "Our
differentiated portfolio, honed by our commitment to innovation,
continues to strengthen our market position as we address
increasingly complex technical transitions to new generations of
semiconductors. The achievements this quarter mark another
successful milestone in our growth trajectory for this year, as we
expand our market presence and deploy our new leading-edge
technologies."
2021 Second Quarter Financial Outlook
Management provided an outlook for the second quarter, the
period ending June 30, 2021. Based on
current estimates, management expects:
- $84 million to $92 million in revenue
- $0.51 to $0.64 in diluted GAAP EPS
- $0.64 to $0.77 in diluted non-GAAP EPS
2021 First Quarter Results
Total revenues for the first quarter of
2021 were $84.1 million, an increase
of 10%, compared with the fourth quarter
of 2020 and an increase of 38% compared with the first quarter of
2020.
Gross margin for the first quarter of 2021 was 57%, compared
with a gross margin of 55% in the fourth quarter of 2020, and
compared with a gross margin of 56% in the first quarter of
2020.
Operating expenses in the first quarter of 2021 were
$28.2 million, compared with
$25.5 million in the fourth quarter
of 2020 and compared with $21.5
million in the first quarter of 2020.
On a GAAP basis, the Company reported net income of $17.6 million, or $0.60 per diluted share, in the first quarter of
2021. This is compared with net income of $13.7 million, or $0.47 per diluted share, in the fourth quarter of
2020, and compared with net income of $11.7
million, or $0.41 per diluted
share, in the first quarter of 2020.
On a non-GAAP basis, which excludes amortization of acquired
intangible assets, stock-based compensation expenses, a one-time
expense related to a transaction made by a financial
institution without Company authorization, facilities
transition costs, revaluation of operating lease liabilities,
amortization of debt discount and issuance costs and tax effect of
non-GAAP adjustment, the Company reported net income of $20.5
million, or $0.70 per diluted share,
in the first quarter of
2021. This is compared with net income of $15.9
million, or $0.55 per diluted share, in
the fourth quarter of 2020, and compared with net income of
$13.5 million, or $0.47 per diluted share, in the first quarter of
2020.
Conference Call Information
Nova will host a conference call today, May 6, 2021, at 9 a.m.
Eastern Time, to discuss the financial
results and outlook. To attend the conference call, please dial one of the following teleconferencing
numbers. Please begin by placing your calls five minutes before the
conference call commences. If you are unable to connect using the
toll-free numbers, please try the international
dial-in number.
U.S. TOLL-FREE Dial-in Number: 1-800-289-0438
ISRAEL TOLL-FREE Dial-in Number:
1-809-212-883
INTERNATIONAL Dial-in Number: 1-323-794-2423
At:
9 a.m. Eastern Time
6 a.m. Pacific Time
4 p.m. Israel Time
Please reference conference ID: 3276680
The conference call will also be webcast live from a link on
Nova's website at https://www.novami.com/investors/events/.
A replay of the conference call will be available from
May 6, 2021 at 12 p.m. Eastern Time to May 13, 2021 at 11:59 p.m.
Eastern Time. To access the replay, please dial one of the
following numbers:
Replay Dial-in TOLL-FREE: 1-844-512-2921
Replay Dial-in TOLL/INTERNATIONAL: 1-412-317-6671
Replay Pin Number: 3276680
A replay will also be available for 90 days on Nova's website at
https://www.novami.com/investors/events/.
About Nova: Nova is a leading innovator and key provider
of metrology solutions for advanced process control used in
semiconductor manufacturing. Nova delivers continuous innovation by
providing state-of-the-art high-performance metrology solutions for
effective process control throughout the semiconductor fabrication
lifecycle. Nova's product portfolio, which combines high-precision
hardware and cutting-edge software, provides its customers with
deep insight into the development and production of the most
advanced semiconductor devices. Nova's unique capability to deliver
innovative x-ray and optical solutions enables its customers to
improve performance, enhance product yields and accelerate time to
market. Nova acts as a partner to semiconductor manufacturers from
its offices around the world. Additional information may be found
at www.novami.com.
Nova is traded on the NASDAQ & TASE under the symbol
NVMI.
This press release provides financial measures that exclude
amortization of acquired intangible assets, stock-based
compensation expenses, expense related to a transaction made by a
financial institution without Company authorization, facilities
transition costs, revaluation of operating lease liabilities,
amortization of debt discount and issuance costs and tax effect of
non-GAAP adjustment, as applicable, 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 enhance management's and investors' ability to evaluate
Nova's performance before charges or benefits 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 allow 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.
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, but are not
limited to, anticipated growth opportunities and projections about
our business and its future revenues, expenses 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. Factors that may affect our results, performance,
circumstances or achievements include, but are not limited to, the
following: catastrophic events such as the outbreak of COVID-19;
increased information technology security threats and sophisticated
computer crime; foreign political and economic risks; changes in
U.S. trade policies; inability to protect intellectual property;
open source technology exposure; failure to compete effectively or
to respond to the rapid technological changes; consolidation in our
industry; difficulty to predict the length and strength of any
downturn or expansion period of the market we target; factors that
adversely affect the pricing and demand for our product lines;
dependency on a small number of large customers; dependency on a
single manufacturing facility per product line; dependency on a
limited number of suppliers; lengthy sales cycle and customer
delays in orders; political, economic, and military instability in
Israel; risks related to our
convertible notes; currency fluctuations; and quarterly
fluctuations in our operating results. 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, 2020 filed with the Securities and
Exchange Commission on March 1, 2021.
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.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(U.S. dollars in
thousands) - (Unaudited)
|
|
|
As
of
|
ASSETS
|
|
March
31,
2021
|
|
December
31,
2020
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
208,758
|
|
232,304
|
Short-term
interest-bearing bank deposits
|
|
246,096
|
|
191,567
|
Trade accounts
receivable, net
|
|
59,820
|
|
63,314
|
Inventories
|
|
66,141
|
|
61,734
|
Other current
assets
|
|
10,435
|
|
9,782
|
|
|
|
|
|
Total current
assets
|
|
591,250
|
|
558,701
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
Interest-bearing bank
deposits
|
|
3,425
|
|
2,547
|
Restricted
interest-bearing bank deposits
|
|
1,750
|
|
1,476
|
Deferred tax
assets
|
|
3,467
|
|
2,869
|
Other long-term
assets
|
|
443
|
|
462
|
Severance pay
funds
|
|
1,251
|
|
1,281
|
Operating lease
right-of-use assets
|
|
29,055
|
|
29,109
|
Property and
equipment, net
|
|
33,138
|
|
34,168
|
Intangible assets,
net
|
|
4,484
|
|
5,059
|
Goodwill
|
|
20,114
|
|
20,114
|
|
|
|
|
|
Total non-current
assets
|
|
97,127
|
|
97,085
|
|
|
|
|
|
Total
assets
|
|
688,377
|
|
655,786
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Trade accounts
payable
|
|
24,586
|
|
24,096
|
Deferred
revenues
|
|
13,738
|
|
4,717
|
Operating lease
current liabilities
|
|
3,867
|
|
3,703
|
Other current
liabilities
|
|
31,741
|
|
28,418
|
|
|
|
|
|
Total current
liabilities
|
|
73,932
|
|
60,934
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
Convertible senior
notes, net
|
|
179,842
|
|
178,808
|
Accrued severance
pay
|
|
3,651
|
|
3,719
|
Operating lease
long-term liabilities
|
|
30,827
|
|
31,905
|
Other long-term
liability
|
|
9,378
|
|
8,882
|
|
|
|
|
|
Total non-current
liabilities
|
|
223,698
|
|
223,314
|
|
|
|
|
|
Shareholders'
equity
|
|
390,747
|
|
371,538
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
|
688,377
|
|
655,786
|
NOVA MEASURING
INSTRUMENTS LTD.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(U.S. dollars in
thousands, except per share data) - (Unaudited)
|
|
|
Three months
ended
March
31,
|
|
2021
|
|
2020
|
|
|
|
|
Revenues:
|
|
|
|
Products
|
66,283
|
|
45,725
|
Services
|
17,850
|
|
15,297
|
Total
revenues
|
84,133
|
|
61,022
|
|
|
|
|
Cost of
revenues:
|
|
|
|
Products
|
25,232
|
|
18,040
|
Services
|
10,971
|
|
8,640
|
Total cost of
revenues
|
36,203
|
|
26,680
|
|
|
|
|
Gross
profit
|
47,930
|
|
34,342
|
|
|
|
|
Operating
expenses:
|
|
|
|
Research and
development, net
|
14,518
|
|
11,683
|
Sales and
marketing
|
9,540
|
|
6,563
|
General and
administrative
|
3,539
|
|
2,589
|
Amortization of
acquired intangible assets
|
575
|
|
626
|
Total operating
expenses
|
28,172
|
|
21,461
|
|
|
|
|
Operating
income
|
19,758
|
|
12,881
|
|
|
|
|
Financing income,
net
|
424
|
|
1,028
|
|
|
|
|
Income before tax
on income
|
20,182
|
|
13,909
|
|
|
|
|
Income tax
expenses
|
2,566
|
|
2,227
|
|
|
|
|
Net income for the
period
|
17,616
|
|
11,682
|
|
|
|
|
Earnings per
share:
|
|
|
|
Basic
|
0.62
|
|
0.42
|
Diluted
|
0.60
|
|
0.41
|
|
|
|
|
Shares used for
calculation of earnings per share
(in thousands):
|
|
|
|
Basic
|
28,214
|
|
27,902
|
Diluted
|
29,306
|
|
28,760
|
NOVA MEASURING
INSTRUMENTS LTD.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(U.S. dollars in
thousands) - (Unaudited)
|
|
|
Three months
ended
March
31,
|
|
2021
|
2020
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net
income
|
$
17,616
|
$
11,682
|
|
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
Depreciation of property and
equipment
|
1,579
|
1,410
|
Amortization of intangible
assets
|
575
|
626
|
Amortization of debt
discount and issuance costs
|
1,034
|
-
|
Share-based
compensation
|
2,222
|
1,318
|
Net effect of exchange rate
fluctuation
|
362
|
399
|
Changes in assets and
liabilities:
|
|
|
Trade accounts receivables,
net
|
3,494
|
(3,440)
|
Inventories
|
(4,417)
|
(1,448)
|
Other current and long-term
assets
|
(1,162)
|
3,693
|
Deferred tax assets,
net
|
(598)
|
(201)
|
Operating lease right-of-use
assets
|
406
|
254
|
Trade accounts
payables
|
439
|
(2,255)
|
Deferred revenues
|
9,021
|
346
|
Operating lease
liabilities
|
(1,266)
|
(923)
|
Other current and long-term
liabilities
|
3,718
|
2,411
|
Accrued severance pay,
net
|
(38)
|
18
|
|
|
|
Net cash provided
by operating activities
|
32,985
|
13,890
|
|
|
|
Cash flows from
investment activities:
|
|
|
Increase in
short-term and long-term interest-bearing bank deposits
|
(55,805)
|
(7,629)
|
Purchase of property
and equipment
|
(488)
|
(2,270)
|
|
|
|
Net cash used in
investing activities
|
(56,293)
|
(9,899)
|
|
|
|
Cash flows from
financing activities:
|
|
|
Purchases of treasury
shares
|
-
|
(14)
|
Proceeds from
exercise of options
|
-
|
111
|
|
|
|
Net cash provided
by financing activities
|
-
|
97
|
|
|
|
Effect of exchange
rate fluctuations on cash and cash equivalents
|
(238)
|
(305)
|
|
|
|
Increase
(decrease) in cash and cash equivalents
|
(23,546)
|
3,783
|
Cash and cash
equivalents - beginning of year
|
232,304
|
31,748
|
Cash and cash
equivalents - end of year
|
$
208,758
|
$
35,531
|
|
NOVA MEASURING
INSTRUMENTS LTD.
|
RECONCILIATION OF
GAAP TO NON-GAAP RESULTS
|
(U.S. dollars in
thousands, except percentage and per share data) -
(Unaudited)
|
|
|
|
|
Three months
ended
|
|
March 31,
2021
|
|
December 31,
2020
|
|
March 31,
2020
|
GAAP gross
profit
|
47,930
|
|
42,323
|
|
34,342
|
Stock-based
compensation expenses *
|
418
|
|
415
|
|
256
|
Non-GAAP gross
profit
|
48,348
|
|
42,738
|
|
34,598
|
GAAP gross margin
as a percentage of revenues
|
57%
|
|
55%
|
|
56%
|
Non-GAAP gross
margin as a percentage of revenues
|
57%
|
|
56%
|
|
57%
|
|
|
|
|
|
|
GAAP
operating income
|
19,758
|
|
16,846
|
|
12,881
|
Stock-based
compensation expenses *
|
2,222
|
|
2,231
|
|
1,318
|
Amortization of
acquired intangible assets
|
575
|
|
626
|
|
626
|
One-time income
related to a transaction made by a
financial institution without Company authorization
|
-
|
|
(2,850)
|
|
-
|
Non-GAAP operating
income
|
22,555
|
|
16,853
|
|
14,825
|
GAAP operating
margin as a percentage of revenues
|
23%
|
|
22%
|
|
21%
|
Non-GAAP operating
margin as a percentage of revenues
|
27%
|
|
22%
|
|
24%
|
|
|
|
|
|
|
GAAP net
income
|
17,616
|
|
13,657
|
|
11,682
|
Stock-based
compensation expenses *
|
2,222
|
|
2,231
|
|
1,318
|
Amortization of
acquired intangible assets
|
575
|
|
626
|
|
626
|
Amortization of debt
discount and issuance costs
|
1,034
|
|
868
|
|
-
|
One-time income
related to a transaction made by a
financial institution without Company authorization
|
-
|
|
(2,850)
|
|
-
|
Revaluation of
operating lease liabilities
|
(860)
|
|
1,364
|
|
(66)
|
Tax effect of non-GAAP
adjustments
|
(102)
|
|
(24)
|
|
(79)
|
Non-GAAP net
income
|
20,485
|
|
15,872
|
|
13,481
|
|
|
|
|
|
|
GAAP basic earnings
per share
|
0.62
|
|
0.49
|
|
0.42
|
Non-GAAP basic
earnings per share
|
0.73
|
|
0.56
|
|
0.48
|
|
|
|
|
|
|
GAAP diluted earnings
per share
|
0.60
|
|
0.47
|
|
0.41
|
Non-GAAP diluted
earnings per share
|
0.70
|
|
0.55
|
|
0.47
|
|
|
|
|
|
|
Shares used for
calculation of earnings per share
(in
thousands):
|
|
|
|
|
|
Basic
|
28,214
|
|
28,146
|
|
27,902
|
Diluted
|
29,306
|
|
28,999
|
|
28,760
|
|
|
|
|
|
|
|
* Stock-based compensation expenses for the three months ended
March 31, 2021 included in – Cost of
revenues products - 250; Cost of revenues services - 168; Research
and development expenses, net – 843; Sales and marketing expenses –
501; General and administrative expenses – 460
NOVA MEASURING
INSTRUMENTS LTD.
|
SUPPLEMENTAL
INFORMATION - RECONCILIATION OF SECOND QUARTER 2021
|
GAAP TO NON-GAAP
GUIDANCE
|
(Unaudited)
|
|
|
Low
|
|
High
|
Estimated GAAP net
income per diluted share
|
0.51
|
|
0.64
|
Estimated non-GAAP
items:
|
|
|
|
Stock-based
compensation expenses
|
0.09
|
|
0.09
|
Amortization of
acquired intangible assets
|
0.02
|
|
0.02
|
Amortization of debt
discount and issuance costs
|
0.03
|
|
0.03
|
Tax effect of non-GAAP
adjustments
|
(0.01)
|
|
(0.01)
|
Estimated non-GAAP
net income per diluted share
|
0.64
|
|
0.77
|
Company
Contact: Dror David, Chief
Financial Officer
Nova Measuring Instruments Ltd.
Tel: +972-73-229-5760 E-mail:
info@novami.com
https://www.novami.com/
|
Investor Relations
Contact: Miri Segal MS-IR
LLC Tel:
+917-607-8654 E-mail:
msegal@ms-ir.com
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Logo -
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content:http://www.prnewswire.com/news-releases/nova-reports-record-first-quarter-2021-results-301285430.html
SOURCE Nova