REHOVOT, Israel, May 9, 2024
/PRNewswire/ -- Nova (Nasdaq: NVMI) today announced financial
results for the first quarter, the three-month period ended
March 31, 2024.
First Quarter 2024 Highlights:
- Quarterly revenue of $141.8
million, up 6% QoQ, exceeding the high end of the Company
guidance of $140 million.
- GAAP net income of $36.9 million,
or $1.15 per diluted share, down 4%
QoQ, exceeding the high end of the Company guidance of
$1.12.
- Record Non-GAAP net income of $44.6
million, or $1.39 per diluted
share, up 2% QoQ, exceeding the high end of the Company guidance of
$1.33.
- Record operating and free cash flow.
- Continued adoption of Nova's innovative portfolio by leading
customers for cutting-edge applications in logic, memory, and
advanced packaging.
- Service business continued to expand, growing 13% year over
year, driven by increasing utilization rates and tool life
extensions.
- Memory product revenue share increased to 40%, driven by
advanced DRAM and HBM demand.
GAAP Results (K)
|
Q1
2024
|
Q4
2023
|
Q1
2023
|
|
Revenues
|
$141,798
|
$134,219
|
$132,193
|
|
Net Income
|
$36,860
|
$38,068
|
$34,627
|
|
Earnings per Diluted
Share
|
$1.15
|
$1.20
|
$1.10
|
Non-GAAP Results (K)
|
Q1 2024
|
Q4 2023
|
Q1 2023
|
|
Net Income
|
$44,612
|
$43,597
|
$39,075
|
|
Earnings per Diluted
Share
|
$1.39
|
$1.36
|
$1.23
|
|
|
A reconciliation
between GAAP operating results and non-GAAP operating results is
provided following the financial statements included in
this release. See also "Use of Non-GAAP Adjusted Financial
Measures" section.
|
Management Comments
"Our results this quarter exceeded the high end of the guidance
we provided in revenue and profit, driven by increased demand
for our state-of-the-art portfolio, and supported by a robust
operational model," said Gaby
Waisman, President and CEO. "Our performance was bolstered
by diverse exposure to opportunities across markets, territories,
customers, and technologies, which include the transition to
Gate-All-Around, rising need for advanced packaging solutions, and
a healthy demand for mature nodes. Our Chemical Metrology division
consistently delivers solid results, penetrating multiple HBM
customers. As we anticipate the transition to the most advanced
technology nodes, we saw an increase in market traction for our new
technologies, Elipson and Metrion, with multiple evaluations
underway at various customers."
2024 Second Quarter Financial Outlook
Management provided an outlook for the second quarter, the
period ending June 30, 2024. Based on
current estimates, management expects:
- $144 million to $152 million in revenue
- $1.07 to $1.21 in diluted GAAP EPS
- $1.27 to $1.42 in diluted non-GAAP EPS
2024 First Quarter Results
Total revenues for the first quarter of 2024 were $141.8 million, an increase of 6% compared with
the fourth quarter of 2023 and an increase of 7% compared with the
first quarter of 2023.
Gross margin in the first quarter of 2024 was 59%,
compared with 55% in the fourth quarter of 2023 and
58% in the first quarter of 2023.
Operating expenses in the first quarter of 2024 were
$46.0 million, compared with
$40.4 million in the fourth quarter
of 2023 and $41.5 million in the
first quarter of 2023.
On a GAAP basis, the Company reported net income of $36.9 million, or $1.15 per diluted share, in the first quarter of
2024. This is compared with net income of $38.1 million, or $1.20 per diluted share, in the fourth quarter of
2023, and $34.6 million, or
$1.10 per diluted share, in the first
quarter of 2023.
On a non-GAAP basis, the Company reported net income of
$44.6 million, or $1.39 per diluted share, in the first quarter of
2024. This is compared with net income of $43.6 million, or $1.36 per diluted share, in the fourth quarter of
2023, and $39.1 million, or
$1.23 per diluted share, in the first
quarter of 2023.
Conference Call Information
Nova will host a conference call today, May 09, 2024, at 8:30 a.m.
Eastern Time, to discuss the Company's first quarter 2024
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: 1-833-816-1427
ISRAEL TOLL-FREE Dial-in Number:
1-809-213-284
INTERNATIONAL Dial-in Number: 1-412-317-0519
At:
8:30 a.m. Eastern Time
5:30 a.m. Pacific Time
3:30 p.m. Israel Time
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 9, 2024, at 11:30 a.m. Eastern Time until May 16, 2024, at 11:59
p.m. Eastern Time. To access the replay, please dial one of
the following numbers:
Replay Dial-in U.S. TOLL-FREE: 1-877-344-7529
Replay Dial-in INTERNATIONAL: 1-412-317-0088
Replay Pin Number: 6529075
A replay will also be available for 90 days on
Nova's website link at
https://www.novami.com/investors/events/.
About Nova
Nova is a leading innovator and key provider of material,
optical and chemical metrology solutions for advanced process
control 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 developing and
producing the most advanced semiconductor devices. Nova's unique
capability to deliver innovative 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 worldwide. Additional information may be found on
Nova's website link - https://www.novami.com/.
Nova is traded on the Nasdaq and 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, revaluation of operating lease liabilities
and remeasurement of intercompany loans, amortization of 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 differ
materially 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: increased information technology security threats
and sophisticated computer crime; foreign political and economic
risks including supply-chain difficulties; regulations that could
restrict our operations such as economic sanctions and export
restrictions; changes in U.S. trade policies; indirect effects of
the Russia – Ukraine conflict; market instability including
inflation and recessionary pressures; risks related to doing
business with China; catastrophic
events; inability to protect our intellectual property; open source
technology exposure, including risks related to artificial
intelligence; failure to compete effectively or to respond to rapid
technological changes; consolidation in our industry; difficulty in
predicting 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; difficulty in integrating current or future
acquisitions; lengthy sales cycle and customer delays in orders;
risks related to conditions in Israel, including related to the war against
Hamas and other terrorist organizations; 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, 2023, filed with the Securities and
Exchange Commission on February 20,
2024. 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
|
|
March
31,
|
December
31,
|
|
ASSETS
|
2024
|
2023
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
118,106
|
107,574
|
|
Short-term
interest-bearing bank deposits
|
156,618
|
119,850
|
|
Marketable
securities
|
220,811
|
216,258
|
|
Trade accounts
receivable, net
|
99,394
|
111,256
|
|
Inventories
|
148,421
|
138,198
|
|
Other current
assets
|
20,118
|
17,084
|
|
Total current
assets
|
763,468
|
710,220
|
|
Non-current
assets
|
|
|
|
Marketable
securities
|
195,136
|
191,351
|
|
Interest-bearing bank
deposits and restricted deposits
|
7,716
|
6,254
|
|
Deferred tax
assets
|
24,420
|
23,583
|
|
Operating lease
right-of-use assets
|
40,801
|
41,856
|
|
Property plant and
equipment, net
|
66,905
|
66,874
|
|
Intangible assets,
net
|
36,846
|
39,184
|
|
Goodwill
|
49,401
|
50,080
|
|
Other long-term
assets
|
4,879
|
4,405
|
|
Total non-current
assets
|
426,104
|
423,587
|
|
Total
assets
|
1,189,572
|
1,133,807
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Convertible senior notes, net
|
198,000
|
197,678
|
|
Trade accounts
payable
|
38,813
|
35,158
|
|
Deferred
revenues
|
46,831
|
41,978
|
|
Operating lease
current liabilities
|
6,643
|
6,703
|
|
Other current
liabilities
|
48,061
|
41,294
|
|
Total current
liabilities
|
338,348
|
322,811
|
|
Non-current
liabilities
|
|
|
|
Operating lease
long-term liabilities
|
38,245
|
39,762
|
|
Long-term deferred tax
liability
|
10,354
|
10,574
|
|
Other long-term
liabilities
|
10,844
|
9,908
|
|
Total non-current
liabilities
|
59,443
|
60,244
|
|
Shareholders'
equity
|
791,781
|
750,752
|
|
Total liabilities
and shareholders' equity
|
1,189,572
|
1,133,807
|
|
NOVA
LTD.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(U.S. dollars in
thousands, except per share data) - (Unaudited)
|
|
|
Three months ended
March 31,
|
|
2024
|
2023
|
|
Revenues:
|
|
|
|
Products
|
111,570
|
105,331
|
|
Services
|
30,228
|
26,862
|
|
Total
revenues
|
141,798
|
132,193
|
|
Total cost of
revenues
|
58,537
|
54,927
|
|
Gross
profit
|
83,261
|
77,266
|
|
Operating
expenses:
|
|
|
|
Research and
development, net
|
24,752
|
22,968
|
|
Sales and
marketing
|
16,493
|
13,522
|
|
General and
administrative
|
4,796
|
5,039
|
|
Total operating
expenses
|
46,041
|
41,529
|
|
Operating
income
|
37,220
|
35,737
|
|
Financing income,
net
|
6,000
|
4,728
|
|
Income before taxes
on income
|
43,220
|
40,465
|
|
Income tax
expenses
|
6,360
|
5,838
|
|
Net income for the
period
|
36,860
|
34,627
|
|
|
|
|
Earnings per
share:
|
|
|
|
Basic
|
1.27
|
1.21
|
|
Diluted
|
1.15
|
1.10
|
|
|
|
|
Shares used in
calculation of earnings per share
(in thousands):
|
|
|
|
Basic
|
29,030
|
28,678
|
|
Diluted
|
32,159
|
31,824
|
|
NOVA
LTD.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(U.S. dollars in
thousands) - (Unaudited)
|
|
|
Three months ended
March 31,
|
|
2024
|
2023
|
|
Cash flows from
operating activities:
|
|
|
|
Net
income
|
36,860
|
34,627
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation of property and
equipment
|
2,903
|
2,340
|
|
Amortization of intangible
assets
|
1,468
|
1,444
|
|
Amortization of premium and
accretion of discount on marketable securities, net
|
(1,648)
|
(428)
|
|
Amortization of debt
discount and issuance costs
|
322
|
316
|
|
Share-based
compensation
|
6,372
|
4,394
|
|
Net effect of exchange rate
fluctuation
|
1,257
|
1,349
|
|
Changes in assets and
liabilities:
|
|
|
|
Trade accounts receivable,
net
|
11,402
|
8,617
|
|
Inventories
|
(11,518)
|
(20,335)
|
|
Other current and long-term
assets
|
(3,482)
|
(8,231)
|
|
Deferred tax assets,
net
|
(766)
|
(1,937)
|
|
Operating lease right-of-use
assets
|
1,044
|
802
|
|
Trade accounts
payable
|
3,975
|
500
|
|
Deferred revenues
|
4,884
|
(313)
|
|
Operating lease
liabilities
|
(1,566)
|
(1,645)
|
|
Other current and long-term
liabilities
|
7,893
|
1,670
|
|
Accrued severance pay,
net
|
38
|
(98)
|
|
Net cash provided by
operating activities
|
59,438
|
23,072
|
|
Cash flows from
investment activities:
|
|
|
|
Change in short-term
and long-term interest-bearing bank deposits
|
(38,259)
|
(23,062)
|
|
Investment in
marketable securities
|
(65,155)
|
(53,682)
|
|
Proceeds from maturity
of marketable securities
|
57,249
|
41,892
|
|
Purchase of property
and equipment
|
(2,768)
|
(2,758)
|
|
Net cash provided by
(used in) investing activities
|
(48,933)
|
(37,610)
|
|
Cash flows from
financing activities:
|
|
|
|
Purchases of treasury
shares
|
-
|
(112)
|
|
Net cash provided by
(used in) financing activities
|
-
|
(112)
|
|
Effect of exchange rate
fluctuations on cash and cash equivalents
|
27
|
(996)
|
|
Changes in cash and
cash equivalents and restricted cash
|
10,532
|
(15,646)
|
|
Cash and cash
equivalents and restricted cash -beginning of
period
|
107,574
|
111,721
|
|
Cash and cash
equivalents - end of period
|
118,106
|
96,075
|
|
NOVA
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,
2024
|
December
31,
2023
|
March
31,
2023
|
|
GAAP gross
profit
|
83,261
|
74,012
|
77,266
|
|
Stock-based
compensation*
|
1,763
|
1,537
|
1,165
|
|
Amortization of
acquired intangible assets
|
1,366
|
1,354
|
1,338
|
|
Non-GAAP gross
profit
|
86,390
|
76,903
|
79,769
|
|
GAAP gross margin as
a percentage of revenues
|
59 %
|
55 %
|
58 %
|
|
Non-GAAP gross
margin as a percentage of revenues
|
61 %
|
57 %
|
60 %
|
|
|
|
|
|
GAAP operating
income
|
37,220
|
33,662
|
35,737
|
|
Stock-based
compensation*
|
6,372
|
5,654
|
4,394
|
|
Amortization of
acquired intangible assets
|
1,468
|
1,461
|
1,444
|
|
Non-GAAP operating
income
|
45,060
|
40,777
|
41,575
|
|
GAAP operating
margin as a percentage of revenues
|
26 %
|
25 %
|
27 %
|
|
Non-GAAP operating
margin as a percentage of revenues
|
32 %
|
30 %
|
31 %
|
|
|
|
|
|
GAAP net
income
|
36,860
|
38,068
|
34,627
|
|
Stock-based
compensation*
|
6,372
|
5,654
|
4,394
|
|
Amortization of
acquired intangible assets
|
1,468
|
1,461
|
1,444
|
|
Amortization of
issuance costs
|
322
|
324
|
316
|
|
Revaluation of
operating lease and intercompany loans
|
893
|
(827)
|
(822)
|
|
Tax effect of non-GAAP
adjustments
|
(1,303)
|
(1,083)
|
(884)
|
|
Non-GAAP net
income
|
44,612
|
43,597
|
39,075
|
|
|
|
|
|
GAAP basic earnings per
share
|
1.27
|
1.31
|
1.21
|
|
Non-GAAP basic earnings
per share
|
1.54
|
1.50
|
1.36
|
|
|
|
|
|
GAAP diluted earnings
per share
|
1.15
|
1.20
|
1.09
|
|
Non-GAAP diluted
earnings per share
|
1.39
|
1.36
|
1.23
|
|
|
|
|
|
Shares used for
calculation of earnings per share
(in thousands):
|
|
|
|
|
Basic
|
29,030
|
28,975
|
28,678
|
|
Diluted
|
32,159
|
32,023
|
31,824
|
|
|
* Stock-based
compensation for the three months ended March 31, 2024, included in
– Cost of revenues - 1,763;
Research and development, net – 2,848; Sales and marketing – 1,253;
General and administrative – 508.
|
|
NOVA
LTD.
|
|
SUPPLEMENTAL
INFORMATION - RECONCILIATION OF SECOND QUARTER 2024
|
|
GAAP TO NON-GAAP
GUIDANCE
|
|
(U.S. dollars)
(Unaudited)
|
|
|
Low
|
High
|
|
Estimated GAAP net
income per diluted share
|
1.07
|
1.21
|
|
Estimated non-GAAP
items:
|
|
|
|
Stock-based
compensation
|
0.19
|
0.20
|
|
Amortization of
acquired intangible assets
|
0.04
|
0.04
|
|
Amortization of
issuance costs
|
0.01
|
0.01
|
|
Tax effect of non-GAAP
adjustments
|
(0.04)
|
(0.04)
|
|
Estimated non-GAAP net
income per diluted share
|
1.27
|
1.42
|
Company Contact:
Dror David, Chief Financial
Officer
Tel: +972-73-229-5760
E-mail - investors@novami.com
Nova website link - 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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SOURCE Nova