REHOVOT, Israel, Aug. 4, 2020 /PRNewswire/ -- Nova (Nasdaq: NVMI)
today announced financial results for the second quarter 2020, the
period ended June 30, 2020.
Second Quarter 2020 Highlights:
- Quarterly revenue of $62.6
million, meeting guidance of $58
million to $66 million
- GAAP net income of $8.7 million,
or $0.30 per diluted share, meeting
guidance of $0.29 to
$0.43 per share
- Non-GAAP net income of $13.8
million, or $0.48 per diluted
share, meeting guidance of $0.37 to
$0.51 per share
- Balanced revenue mix with five major customers contributing
over 10% each to the geographically diverse product revenue
- Record quarterly integrated metrology revenues, driven by
growing demand for advanced integrated solutions across different
technology nodes
GAAP Results
($K)
|
|
Q2
2020
|
Q1
2020
|
Q2
2019
|
Revenues
|
$62,586
|
$61,022
|
$51,120
|
Net Income
|
$8,672
|
$11,682
|
$6,468
|
Earnings per Diluted
Share
|
$0.30
|
$0.41
|
$0.23
|
NON-GAAP Results
($K)
|
|
Q2
2020
|
Q1
2020
|
Q2
2019
|
Net Income
|
$13,774
|
$13,481
|
$9,007
|
Earnings per Diluted
Share
|
$0.48
|
$0.47
|
$0.32
|
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 long-term liabilities and tax
effect of non-GAAP adjustments.
Management Comments
"Our second quarter results met our expectations and Company
guidance, highlighting our ability to successfully navigate through
the dynamic global environment caused by the COVID-19 pandemic. The
success of our decisive actions to secure our supply chain and
production capabilities, while ensuring business continuity, is
evident in our achievements this quarter. During the second
quarter, we continued to execute well and achieved important
milestones in our new product rollout plans with several leading
customers," stated Eitan Oppenhaim, President and Chief Executive
Officer. "Despite various market uncertainties, we remain focused
on the Company's growth as we leverage the current steady demand
for our products."
2020 Third Quarter Financial Outlook
Management provided an outlook for the third quarter, the period
ending September 30, 2020. Based on
current estimates, management expects:
- $58 million to $66 million in revenue
- $0.25 to $0.39 in diluted GAAP EPS
- $0.34 to $0.47 in diluted non-GAAP EPS
2020 Second Quarter Results
Total revenues for the second quarter of 2020 were $62.6 million, an
increase of 2.6% compared with the first
quarter of 2020 and an increase of 22.4% compared with the
second quarter of 2019.
Gross margin for the second quarter of 2020 was 58.5%, compared
with a gross margin of 56.3% in the first quarter of 2020, and
compared with a gross margin of 55.0% in the second quarter
of 2019.
Operating expenses in the second quarter of 2020 were
$26.3 million, compared with
$21.5 million in the first quarter of
2020 and compared with $21.3 million
in the second quarter of 2019.
On a GAAP basis, the Company reported net income of $8.7 million, or $0.30 per diluted share, in the second quarter of
2020. This is compared with net income of $11.7 million, or $0.41 per diluted share, in the first quarter of
2020, and compared with net income of $6.5
million, or $0.23 per diluted
share, in the second quarter of 2019.
On a non-GAAP basis, which excludes amortization of acquired
intangible assets, stock-based compensation expenses, one-time
expense related to a transaction made by a financial institution
without Company authorization, facilities transition costs,
revaluation of long-term liabilities and tax effect of non-GAAP
adjustments, the Company reported net income of $13.8 million, or
$0.48 per diluted share,
in the second quarter of 2020. This is compared with net income of $13.5
million, or $0.47 per diluted share, in
the first quarter of 2020, and compared with net income of
$9.0 million, or $0.32 per diluted share, in the second quarter
of 2019.
Conference Call Information
Nova will host a conference call today, August 4, 2020, 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: 1-866-548-4713
ISRAEL TOLL-FREE Dial-in Number:
1-809-212-883
INTERNATIONAL Dial-in Number: 1-323-794-2093
At:
9 a.m. Eastern Time
6 a.m. Pacific Time
4 p.m. Israel Time
Please reference conference ID: 8576081
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 4, 2020 at 12 p.m. Eastern Time to August 11, 2020 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: 8576081
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 long-term liabilities and tax
effect of non-GAAP adjustments 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 enhances
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 allows 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: our dependency on three product lines; our dependency on
a small number of large customers and small number of suppliers;
the highly cyclical and competitive nature of the markets we target
and we operate in; 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 PEMs; risks related to exclusivity obligations and
non-limited liability that may be included in our commercial
agreements and arrangements; our ability to retain our competitive
position despite the ongoing consolidation in our industry; risks
related to our dependence on our manufacturing facilities; risks
related to changes in our order backlog; risks related to efforts
to complete and integrate current and/or future acquisitions; risks
related to worldwide financial and economic instabilities,
including the implications of the ongoing novel coronavirus
(COVID-19) pandemic; risks related to our intellectual property;
new product offerings from our competitors; unanticipated
manufacturing or supply problems; risks related to government
programs we participate in; risks related to taxation; changes in
customer demand for our products; risks related to currency
fluctuations; risks related to technology security threats,
including data breaches, cyberattacks and system disruptions, and
changes in privacy laws; risks related to acquisitions we may
pursue 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, 2019 filed with the Securities and
Exchange Commission on March 12,
2020. 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.
Company Contact:
Dror
David, Chief Financial Officer
Nova Measuring Instruments Ltd.
Tel: +972-73-229-5760
E-mail: info@novami.com
www.novami.com
Investor Relations Contact:
Miri Segal MS-IR LLC
Tel: +917-607-8654
E-mail: msegal@ms-ir.com
|
NOVA MEASURING
INSTRUMENTS LTD.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(U.S. dollars in
thousands) - (Unaudited)
|
|
|
|
As
of
|
|
ASSETS
|
|
June
30,
2020
|
|
December
31,
2019
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
25,885
|
|
31,748
|
|
Short-term
interest-bearing bank deposits
|
|
187,535
|
|
154,533
|
|
Trade accounts
receivable
|
|
44,457
|
|
51,603
|
|
Inventories
|
|
56,584
|
|
48,362
|
|
Other current
assets
|
|
12,383
|
|
17,122
|
|
|
|
|
|
|
|
Total current
assets
|
|
326,844
|
|
303,368
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
Interest-bearing bank
deposits
|
|
2,804
|
|
2,813
|
|
Restricted
interest-bearing bank deposits
|
|
2,000
|
|
2,000
|
|
Deferred tax
assets
|
|
5,100
|
|
4,554
|
|
Severance pay
funds
|
|
1,181
|
|
1,210
|
|
Right of-use
assets
|
|
27,555
|
|
28,256
|
|
Property and
equipment, net
|
|
31,489
|
|
30,566
|
|
Intangible assets,
net
|
|
6,310
|
|
7,562
|
|
Goodwill
|
|
20,114
|
|
20,114
|
|
|
|
|
|
|
|
Total non-current
assets
|
|
96,553
|
|
97,075
|
|
|
|
|
|
|
|
Total
assets
|
|
423,397
|
|
400,443
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Trade accounts
payable
|
|
21,716
|
|
20,706
|
|
Deferred
revenues
|
|
1,165
|
|
2,256
|
|
Operating lease
current liabilities
|
|
1,935
|
|
2,236
|
|
Other current
liabilities
|
|
23,161
|
|
21,751
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
47,977
|
|
46,949
|
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
Accrued severance
pay
|
|
2,119
|
|
2,120
|
|
Operating lease
long-term liabilities
|
|
30,891
|
|
31,077
|
|
Other long-term
liability
|
|
6,448
|
|
5,758
|
|
|
|
|
|
|
|
Total non-current
liabilities
|
|
39,458
|
|
38,955
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
335,962
|
|
314,539
|
|
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
|
423,397
|
|
400,443
|
|
NOVA MEASURING
INSTRUMENTS LTD.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(U.S. dollars in
thousands, except per share data) - (Unaudited)
|
|
|
Three months
ended
|
|
Six months
ended
|
|
June
30,
2020
|
|
June
30,
2019
|
|
June
30,
2020
|
|
June
30,
2019
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Products
|
47,097
|
|
37,401
|
|
92,822
|
|
81,462
|
Services
|
15,489
|
|
13,719
|
|
30,786
|
|
26,315
|
Total
revenues
|
62,586
|
|
51,120
|
|
123,608
|
|
107,777
|
|
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
Products
|
17,150
|
|
14,527
|
|
35,190
|
|
32,104
|
Services
|
8,835
|
|
8,483
|
|
17,475
|
|
15,979
|
Total cost of
revenues
|
25,985
|
|
23,010
|
|
52,665
|
|
48,083
|
|
|
|
|
|
|
|
|
Gross
profit
|
36,601
|
|
28,110
|
|
70,943
|
|
59,694
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development expenses, net
|
12,622
|
|
11,654
|
|
24,305
|
|
24,238
|
Sales and marketing
expenses
|
7,263
|
|
6,641
|
|
13,826
|
|
13,787
|
General and
administrative expenses
|
5,775
|
|
2,384
|
|
8,364
|
|
4,906
|
Amortization of
acquired intangible assets
|
626
|
|
656
|
|
1,252
|
|
1,312
|
Total operating
expenses
|
26,286
|
|
21,335
|
|
47,747
|
|
44,243
|
|
|
|
|
|
|
|
|
Operating
income
|
10,315
|
|
6,775
|
|
23,196
|
|
15,451
|
|
|
|
|
|
|
|
|
Financing income,
net
|
387
|
|
855
|
|
1,415
|
|
1,365
|
|
|
|
|
|
|
|
|
Income before tax
on income
|
10,702
|
|
7,630
|
|
24,611
|
|
16,816
|
|
|
|
|
|
|
|
|
Income tax
expenses
|
2,030
|
|
1,162
|
|
4,257
|
|
2,592
|
|
|
|
|
|
|
|
|
Net income for the
period
|
8,672
|
|
6,468
|
|
20,354
|
|
14,224
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
0.31
|
|
0.23
|
|
0.73
|
|
0.51
|
Diluted
|
0.30
|
|
0.23
|
|
0.70
|
|
0.50
|
|
|
|
|
|
|
|
|
Shares used for
calculation of earnings per share:
|
|
|
|
|
|
|
|
Basic
|
28,039
|
|
27,869
|
|
28,037
|
|
27,898
|
Diluted
|
28,888
|
|
28,564
|
|
28,890
|
|
28,234
|
NOVA MEASURING
INSTRUMENTS LTD.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(U.S. dollars in
thousands) - (Unaudited)
|
|
|
Three months
ended
|
|
Six months
ended
|
|
June
30,
2020
|
|
June
30,
2019
|
|
June
30,
2020
|
|
June
30,
2019
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net income for the
period
|
8,672
|
|
6,468
|
|
20,354
|
|
14,224
|
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
2,039
|
|
2,770
|
|
4,783
|
|
5,470
|
Share-based
compensation
|
1,454
|
|
1,086
|
|
2,772
|
|
2,298
|
Change in deferred
tax assets, net
|
(345)
|
|
(147)
|
|
(546)
|
|
(344)
|
Change in accrued
severance pay, net
|
42
|
|
(6)
|
|
28
|
|
27
|
Change in trade
accounts receivable
|
10,586
|
|
(1,157)
|
|
7,146
|
|
5,453
|
Change in
inventories
|
(7,022)
|
|
(3,323)
|
|
(8,470)
|
|
(7,855)
|
Change in other
current and long-term assets
|
1,046
|
|
1,978
|
|
4,739
|
|
2,580
|
Change in trade
accounts payable
|
2,920
|
|
(5,430)
|
|
665
|
|
(2,126)
|
Change in other
current and long-term liabilities
|
1,140
|
|
(3,457)
|
|
2,206
|
|
(4,579)
|
Change in short term
deferred revenues
|
(1,437)
|
|
196
|
|
(1,091)
|
|
1,330
|
|
|
|
|
|
|
|
|
Net cash provided
by (used in) operating activities
|
19,095
|
|
(1,022)
|
|
32,586
|
|
16,478
|
|
|
|
|
|
|
|
|
Cash flow from
investment activities:
|
|
|
|
|
|
|
|
Increase in
short-term and long-term interest-bearing bank deposits
|
(25,458)
|
|
8,447
|
|
(32,993)
|
|
6,075
|
Purchase of property
and equipment
|
(890)
|
|
(5,716)
|
|
(3,160)
|
|
(7,693)
|
|
|
|
|
|
|
|
|
Net cash provided
by (used in) investment activities
|
(26,348)
|
|
2,731
|
|
(36,153)
|
|
(1,618)
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Purchases of treasury
shares
|
(2,535)
|
|
(7,159)
|
|
(2,549)
|
|
(7,159)
|
Shares issued upon
exercise of options
|
142
|
|
166
|
|
253
|
|
272
|
|
|
|
|
|
|
|
|
Net cash used in
financing activities
|
(2,393)
|
|
(6,993)
|
|
(2,296)
|
|
(6,887)
|
|
|
|
|
|
|
|
|
Increase
(decrease) in cash and cash equivalents
|
(9,646)
|
|
(5,284)
|
|
(5,863)
|
|
7,973
|
Cash and cash
equivalents – beginning of period
|
35,531
|
|
38,134
|
|
31,748
|
|
24,877
|
Cash and cash
equivalents – end of period
|
25,885
|
|
32,850
|
|
25,885
|
|
32,850
|
|
|
|
|
|
|
|
|
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
|
|
June 30,
2020
|
|
March 31,
2020
|
|
June 30,
2019
|
GAAP gross
profit
|
36,601
|
|
34,342
|
|
28,110
|
Stock-based
compensation expenses *
|
279
|
|
256
|
|
222
|
Facilities transition
costs
|
-
|
|
-
|
|
271
|
Non-GAAP gross
profit
|
36,880
|
|
34,598
|
|
28,603
|
GAAP gross margin
as a percentage of revenues
|
58%
|
|
56%
|
|
55%
|
Non-GAAP gross
margin as a percentage of revenues
|
59%
|
|
57%
|
|
56%
|
|
|
|
|
|
|
GAAP
operating income
|
10,315
|
|
12,881
|
|
6,775
|
Stock-based
compensation expenses *
|
1,454
|
|
1,318
|
|
1,086
|
Amortization of
acquired intangible assets
|
626
|
|
626
|
|
656
|
One-time expense
related to a transaction made by a
financial institution without Company authorization
|
3,000
|
|
-
|
|
-
|
Facilities transition
costs
|
-
|
|
-
|
|
827
|
Non-GAAP operating
income
|
15,395
|
|
14,825
|
|
9,344
|
GAAP operating
margin as a percentage of revenues
|
16%
|
|
21%
|
|
13%
|
Non-GAAP operating
margin as a percentage of revenues
|
25%
|
|
24%
|
|
18%
|
|
|
|
|
|
|
GAAP net
income
|
8,672
|
|
11,682
|
|
6,468
|
Stock-based
compensation expenses *
|
1,454
|
|
1,318
|
|
1,086
|
Amortization of
acquired intangible assets
|
626
|
|
626
|
|
656
|
One-time expense
related to a transaction made by a
financial institution without Company authorization
|
3,000
|
|
-
|
|
-
|
Facilities transition
costs
|
-
|
|
-
|
|
827
|
Revaluation of
long-term liabilities
|
594
|
|
(66)
|
|
295
|
Tax effect of non-GAAP
adjustments
|
(572)
|
|
(79)
|
|
(325)
|
Non-GAAP net
income
|
13,774
|
|
13,481
|
|
9,007
|
|
|
|
|
|
|
GAAP basic earnings
per share
|
0.31
|
|
0.42
|
|
0.23
|
Non-GAAP basic
earnings per share
|
0.49
|
|
0.48
|
|
0.32
|
|
|
|
|
|
|
GAAP diluted earnings
per share
|
0.30
|
|
0.41
|
|
0.23
|
Non-GAAP diluted
earnings per share
|
0.48
|
|
0.47
|
|
0.32
|
|
|
|
|
|
|
Shares used for
calculation of earnings per share:
|
|
|
|
|
|
Basic
|
28,039
|
|
27,902
|
|
27,869
|
Diluted
|
28,888
|
|
28,760
|
|
28,564
|
|
|
|
|
|
|
|
* Stock-based compensation expenses for the three months ended
June 30, 2020 included in – Cost of
revenues products - 169; Cost of revenues services - 110; Research
and development expenses, net – 604; Sales and marketing expenses –
327; General and administrative expenses – 244
View original
content:http://www.prnewswire.com/news-releases/nova-reports-second-quarter-2020-results-301105594.html
SOURCE Nova