REHOVOT, Israel, Aug. 5, 2021 /PRNewswire/ -- Nova (Nasdaq:
NVMI) today announced record financial results for the second
quarter of 2021, the period ended June 30,
2021.
Second Quarter 2021 Highlights:
- Record quarterly revenue of $97.7
million, up 56% year over year
- Record GAAP net income of $22.9
million, or $0.77 per diluted
share, up 157% year over year on a per-share
basis
- Record non-GAAP net income of $26.9
million, or $0.90 per diluted
share, up 88% year over year on a per-share basis
- The continuing proliferation of optical CD standalone
solutions to various leading customers drove sales to a new
quarterly high
- Broader exposure to multiple accounts strengthened
geographical diversification with record revenues from China
GAAP Results ($K)
|
Q2
2021
|
Q1
2021
|
Q2
2020
|
|
Revenues
|
$97,746
|
$84,133
|
$62,586
|
|
Net Income
|
$22,924
|
$17,616
|
$8,672
|
|
Earnings per Diluted
Share
|
$0.77
|
$0.60
|
$0.30
|
NON-GAAP Results ($K)
|
Q2
2021
|
Q1
2021
|
Q2
2020
|
|
Net Income
|
$26,886
|
$20,485
|
$13,774
|
|
Earnings per Diluted
Share
|
$0.90
|
$0.70
|
$0.48
|
A reconciliation between GAAP operating results and non-GAAP
operating results is provided following the financial statements
that are part of this release. See also "Use of Non-GAAP Adjusted
Financial Measures" section.
Management Comments
"We continue to reap the benefits of our well-executed plans
meeting the Company's strategic targets. Our evolving product
portfolio resonates well with our customers and propelled our
continuous growth with another strong quarter," commented Eitan
Oppenhaim, President and Chief Executive Officer. "Following our
consistent achievements this year, we announced during our recent
analyst and investor day, our new plan to organically grow the
business to more than $500M in
revenues. The combination of our financial model, operation
leverage, and diversified portfolio supports our plans to continue
our growth across segments and customers. Along with our guidance
for the third quarter of 2021, we are well-positioned to achieve
another record year and position Nova to capitalize on further
opportunities in different territories."
2021 Third Quarter Financial Outlook
Management provided an outlook for the third quarter, the period
ending September 30, 2021. Based on
current estimates, management expects:
- $99 million to $106 million in revenue
- $0.71 to $0.84 in diluted GAAP EPS
- $0.85 to $0.98 in diluted non-GAAP EPS
2021 Second Quarter Results
Total revenues for the second quarter of 2021 were $97.7 million, an increase of 16% compared with
the first quarter of 2021 and an increase of 56% compared with the
second quarter of 2020.
Gross margin in the second quarter of 2021 was 57%, similar to
the previous quarter and compared with gross margin of 58% in the
second quarter of 2020.
Operating expenses in the second quarter of 2021 were
$28.7 million, compared with
$28.2 million in the first quarter of
2021 and $26.3 million in the
second quarter of 2020.
On a GAAP basis, the Company reported net income of $22.9 million, or $0.77 per diluted share, in the second quarter of
2021. This is compared with net income of $17.6 million, or $0.60 per diluted share, in the first quarter of
2021, and net income of $8.7 million,
or $0.30 per diluted share, in the
second quarter of 2020.
On a non-GAAP basis, the Company reported net income of $26.9
million, or $0.90 per diluted share,
in the second quarter of
2021. This is compared with net income of $20.5
million, or $0.70 per diluted share, in
the first quarter of 2021, and net income of $13.8 million, or $0.48 per diluted share, in the second quarter of
2020.
Conference Call Information
Nova will host a conference call today, August 5, 2021, at 8:30
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: 1-888-394-8218
ISRAEL TOLL-FREE Dial-in Number:
1-809-212-883
INTERNATIONAL Dial-in Number: 1-323-701-0225
At:
8:30 a.m. Eastern Time
5:30 a.m. Pacific Time
3:30 p.m. Israel Time
Please reference conference ID: 6930576
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
August 5, 2021 at 11:30 a.m. Eastern Time to August 12, 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: 6930576
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 https://www.novami.com/.
Nova is traded on the Nasdaq & TASE, Nasdaq ticker symbol
NVMI.
Use of Non-GAAP Adjusted Financial Measures
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, 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.
Forward-Looking Statements
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 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 Ltd. does not assume any obligation to
update the forward-looking information contained in this press
release.
(Tables to Follow)
|
NOVA
LTD.
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(U.S. dollars in
thousands) -(Unaudited)
|
|
|
As
of
|
|
ASSETS
|
June
30,
|
December
31,
|
|
2021
|
2020
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
136,290
|
232,304
|
|
Short-term
interest-bearing bank deposits
|
243,635
|
191,567
|
|
Marketable
securities
|
40,270
|
-
|
|
Trade accounts
receivable, net
|
58,207
|
63,314
|
|
Inventories
|
71,800
|
61,734
|
|
Other current
assets
|
9,879
|
9,782
|
|
Total current
assets
|
560,081
|
558,701
|
|
Non-current
assets
|
|
|
|
Marketable
securities
|
59,605
|
-
|
|
Interest-bearing bank
deposits
|
3,503
|
2,547
|
|
Restricted
interest-bearing bank deposits
|
1,750
|
1,476
|
|
Deferred tax
assets
|
4,583
|
2,869
|
|
Other long-term
assets
|
456
|
462
|
|
Severance pay
funds
|
1,311
|
1,281
|
|
Operating lease
right-of-use assets
|
28,833
|
29,109
|
|
Property and
equipment, net
|
33,041
|
34,168
|
|
Intangible assets,
net
|
3,910
|
5,059
|
|
Goodwill
|
20,114
|
20,114
|
|
Total non-current
assets
|
157,106
|
97,085
|
|
Total
assets
|
717,187
|
655,786
|
|
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Convertible senior
notes, net
|
180,893
|
-
|
|
Trade accounts
payable
|
26,527
|
24,096
|
|
Deferred
revenues
|
13,591
|
4,717
|
|
Operating lease
current liabilities
|
3,942
|
3,703
|
|
Other current
liabilities
|
32,096
|
28,418
|
|
Total current
liabilities
|
257,049
|
60,934
|
|
Non-current
liabilities
|
|
|
|
Convertible senior
notes, net
|
-
|
178,808
|
|
Accrued severance
pay
|
3,804
|
3,719
|
|
Operating lease
long-term liabilities
|
31,022
|
31,905
|
|
Other long-term
liability
|
9,610
|
8,882
|
|
Total non-current
liabilities
|
44,436
|
223,314
|
|
Shareholders'
equity
|
415,702
|
371,538
|
|
Total liabilities
and shareholders' equity
|
717,187
|
655,786
|
|
|
|
|
|
|
|
NOVA
LTD.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(U.S. dollars
in thousands, except per share data) - (Unaudited)
|
|
|
Three months
ended
June 30,
|
Six months
ended
June 30,
|
|
2021
|
2020
|
2021
|
2020
|
|
Revenues:
|
|
|
|
|
|
Products
|
78,293
|
47,097
|
144,576
|
92,822
|
|
Services
|
19,453
|
15,489
|
37,303
|
30,786
|
|
Total
revenues
|
97,746
|
62,586
|
181,879
|
123,608
|
|
Cost of
revenues
|
41,802
|
25,985
|
78,005
|
52,665
|
|
Gross
profit
|
55,944
|
36,601
|
103,874
|
70,943
|
|
Operating
expenses:
|
|
|
|
|
|
Research and
development, net
|
15,341
|
12,622
|
29,859
|
24,305
|
|
Sales and
marketing
|
9,432
|
7,263
|
18,972
|
13,826
|
|
General and
administrative
|
3,388
|
5,775
|
6,927
|
8,364
|
|
Amortization of
acquired intangible assets
|
574
|
626
|
1,149
|
1,252
|
|
Total operating
expenses
|
28,735
|
26,286
|
56,907
|
47,747
|
|
Operating
income
|
27,209
|
10,315
|
46,967
|
23,196
|
|
Financing income
(expense), net
|
(1,150)
|
387
|
(726)
|
1,415
|
|
Income before tax
on income
|
26,059
|
10,702
|
46,241
|
24,611
|
|
Income tax
expenses
|
3,135
|
2,030
|
5,701
|
4,257
|
|
Net income for the
period
|
22,924
|
8,672
|
40,540
|
20,354
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
Basic
|
0.81
|
0.31
|
1.43
|
0.73
|
|
Diluted
|
0.77
|
0.30
|
1.37
|
0.70
|
|
|
|
|
|
|
Shares used for
calculation of earnings per share
(in thousands):
|
|
|
|
|
|
Basic
|
28,304
|
28,039
|
28,259
|
28,037
|
|
Diluted
|
29,815
|
28,888
|
29,561
|
28,890
|
|
NOVA
LTD.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(U.S. dollars in
thousands) - (Unaudited)
|
|
|
Three months ended
June 30,
|
Six months
ended
June 30,
|
|
2021
|
2020
|
2021
|
2020
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net
income
|
$ 22,924
|
$
8,672
|
$ 40,540
|
$ 20,354
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation of property and
equipment
|
1,596
|
1,419
|
3,175
|
2,829
|
|
Amortization of intangible
assets
|
574
|
626
|
1,149
|
1,252
|
|
Amortization of premium and
accretion of discount on marketable securities, net
|
283
|
-
|
283
|
-
|
|
Amortization of debt
discount and issuance costs
|
1,051
|
-
|
2,085
|
-
|
|
Share-based
compensation
|
2,128
|
1,454
|
4,350
|
2,772
|
|
Net effect of exchange rate
fluctuation
|
(350)
|
(178)
|
12
|
221
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
Trade accounts receivables,
net
|
1,613
|
10,586
|
5,107
|
7,146
|
|
Inventories
|
(5,831)
|
(7,022)
|
(10,248)
|
(8,470)
|
|
Other current and long-term
assets
|
554
|
1,046
|
(608)
|
4,739
|
|
Deferred tax assets,
net
|
(1,116)
|
(345)
|
(1,714)
|
(546)
|
|
Operating lease right-of-use
assets
|
411
|
350
|
817
|
604
|
|
Trade accounts
payables
|
1,932
|
2,920
|
2,371
|
665
|
|
Deferred revenues
|
(147)
|
(1,437)
|
8,874
|
(1,091)
|
|
Operating lease
liabilities
|
81
|
76
|
(1,185)
|
(390)
|
|
Other current and long-term
liabilities
|
587
|
618
|
4,305
|
2,572
|
|
Accrued severance pay,
net
|
93
|
132
|
55
|
150
|
|
Net cash provided
by operating activities
|
26,383
|
18,917
|
59,368
|
32,807
|
|
|
|
|
|
|
Cash flows from
investment activities:
|
|
|
|
|
|
Change in short-term
and long-term interest-bearing bank deposits
|
2,461
|
(25,373)
|
(53,344)
|
(33,002)
|
|
Investment in
marketable securities
|
(106,403)
|
-
|
(106,403)
|
-
|
|
Proceed from sales
and maturities of marketable securities
|
6,137
|
-
|
6,137
|
-
|
|
Purchase of property
and equipment
|
(1,318)
|
(890)
|
(1,806)
|
(3,160)
|
|
Net cash used in
investing activities
|
(99,123)
|
(26,263)
|
(155,416)
|
(36,162)
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
Purchases of treasury
shares
|
-
|
(2,535)
|
-
|
(2,549)
|
|
Proceeds from
exercise of options
|
-
|
142
|
-
|
253
|
|
Net cash used in
financing activities
|
-
|
(2,393)
|
-
|
(2,296)
|
|
Effect of exchange
rate fluctuations on cash and cash equivalents
|
272
|
93
|
34
|
(212)
|
|
Decrease in cash
and cash equivalents
|
(72,468)
|
(9,646)
|
(96,014)
|
(5,863)
|
|
Cash and cash
equivalents - beginning of period
|
208,758
|
35,531
|
232,304
|
31,748
|
|
Cash and cash
equivalents - end of period
|
$ 136,290
|
$
25,885
|
$ 136,290
|
$
25,885
|
|
NOVA
LTD.
|
|
RECONCILIATION OF
GAAP TO NON-GAAP RESULTS
|
|
(U.S. dollars in
thousands, except percentage and per share data) -
(Unaudited)
|
|
|
|
|
Three months
ended
|
|
June
30,
2021
|
March 31,
2021
|
June 30,
2020
|
|
GAAP gross
profit
|
55,944
|
47,930
|
36,601
|
|
Stock-based
compensation expenses *
|
382
|
418
|
279
|
|
Non-GAAP gross
profit
|
56,326
|
48,348
|
36,880
|
|
GAAP gross margin
as a percentage of revenues
|
57%
|
57%
|
58%
|
|
Non-GAAP gross
margin as a percentage of revenues
|
58%
|
57%
|
59%
|
|
|
|
|
|
GAAP
operating income
|
27,209
|
19,758
|
10,315
|
|
Stock-based
compensation expenses *
|
2,128
|
2,222
|
1,454
|
|
Amortization of
acquired intangible assets
|
574
|
575
|
626
|
|
Expense related
to a transaction made by a financial institution without Company
authorization
|
-
|
-
|
3,000
|
|
Non-GAAP operating
income
|
29,911
|
22,555
|
15,395
|
|
GAAP operating
margin as a percentage of revenues
|
28%
|
23%
|
16%
|
|
Non-GAAP operating
margin as a percentage of revenues
|
31%
|
27%
|
25%
|
|
|
|
|
|
GAAP net
income
|
22,924
|
17,616
|
8,672
|
|
Stock-based
compensation expenses *
|
2,128
|
2,222
|
1,454
|
|
Amortization of
acquired intangible assets
|
574
|
575
|
626
|
|
Amortization of debt
discount and issuance costs
|
1,051
|
1,034
|
-
|
|
One-time expense
related to a transaction made by a financial institution without
Company authorization
|
-
|
-
|
3,000
|
|
Revaluation of
operating lease liabilities
|
554
|
(860)
|
594
|
|
Tax effect of non-GAAP
adjustments
|
(345)
|
(102)
|
(572)
|
|
Non-GAAP net
income
|
26,886
|
20,485
|
13,774
|
|
|
|
|
|
GAAP basic earnings
per share
|
0.81
|
0.62
|
0.31
|
|
Non-GAAP basic
earnings per share
|
0.95
|
0.73
|
0.49
|
|
|
|
|
|
GAAP diluted earnings
per share
|
0.77
|
0.60
|
0.30
|
|
Non-GAAP diluted
earnings per share
|
0.90
|
0.70
|
0.48
|
|
|
|
|
|
Shares used for
calculation of earnings per share
(in thousands):
|
|
|
|
|
Basic
|
28,304
|
28,214
|
28,039
|
|
Diluted
|
29,815
|
29,306
|
28,888
|
|
|
|
|
|
* Stock-based compensation expenses for the three months ended
June 30, 2021 included in – Cost of
revenues – 382; Research and development expenses, net – 811; Sales
and marketing expenses – 527; General and administrative expenses –
408
|
NOVA
LTD.
|
|
SUPPLEMENTAL
INFORMATION - RECONCILIATION OF THIRD QUARTER 2021
|
|
GAAP TO NON-GAAP
GUIDANCE
|
|
(Unaudited)
|
|
|
Low
|
High
|
|
Estimated GAAP net
income per diluted share
|
0.71
|
0.84
|
|
Estimated non-GAAP
items:
|
|
|
|
Stock-based
compensation expenses
|
0.10
|
0.10
|
|
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
|
0.85
|
0.98
|
Company Contact:
Dror
David, Chief Financial Officer
Tel: +972-73-229-5760
investors@novami.com
https://www.novami.com/
Investor Relations Contact:
Miri Segal MS-IR LLC
Tel: +917-607-8654
msegal@ms-ir.com
View original
content:https://www.prnewswire.com/news-releases/nova-reports-record-second-quarter-2021-results-301349128.html
SOURCE Nova