REHOVOT, Israel, Aug. 4, 2022
/PRNewswire/ -- Nova (Nasdaq: NVMI) today announced
financial results for the second quarter, the three-month period
ended June 30, 2022.
Second Quarter 2022 Highlights:
- Record quarterly revenue of $141.6
million. Up 45% year over year
- GAAP net income of $34.9 million,
or $1.09 per diluted share. Up 42%
year over year on a per-share basis
- Non-GAAP net income of $39.5
million, or $1.24 per diluted
share. Up 38% year over year on a per-share basis
- Record Optical CD Standalone revenue driven by multiple
customer selections
- Diversified geographic mix, including four major territories
contributing over 15% of revenue each
- Continued proliferation of Nova METRION®. Selected by Advanced
Logic Manufacturer
GAAP Results ($K)
|
Q2
2022
|
Q1
2022
|
Q2
2021
|
|
Revenues
|
$141,628
|
$133,957
|
$97,746
|
|
Net Income
|
$34,878
|
$34,162
|
$22,924
|
|
Earnings per Diluted
Share
|
$1.09
|
$1.07
|
$0.77
|
Non-GAAP Results ($K)
|
Q2
2022
|
Q1
2022
|
Q2
2021
|
|
Net Income
|
$39,546
|
$41,487
|
$26,886
|
|
Earnings per Diluted
Share
|
$1.24
|
$1.30
|
$0.90
|
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
"Nova delivered sound results for the second quarter,
demonstrating strength in all product lines across our dimensional,
materials, and chemical metrology portfolio. Our business
performance yielded another quarterly revenue record with both
revenue and profitability reaching the high end of the guidance,"
commented Eitan Oppenhaim, President and Chief Executive Officer.
"Our solid backlog and the demand for our products across the
various semiconductor technology nodes solidify our goal to
continue our profitable growth this year as well. With the
company revenues exceeding $500
million in the last four quarters, we mark the realization
of our Nova 500 strategic plan, which cemented the fundamentals to
support our future organic and inorganic growth in the long
term."
2022 Third Quarter Financial
Outlook
Management provided an outlook for the third quarter, the period
ending September 30, 2022. Based on
current estimates, management expects:
- $137 million to $147 million in revenue
- $0.89 to $1.08 in diluted GAAP EPS
- $1.06 to $1.25 in diluted non-GAAP EPS
2022 Second Quarter Results
Total revenues for the second quarter of
2022 were $141.6 million, an increase
of 6% compared with the first quarter of 2022
and an increase of 45% compared with the second quarter of
2021.
Gross margin in the second quarter of 2022 was 57%, same as the
first quarter of 2022 and the second quarter of 2021.
Operating expenses in the second quarter of 2022 were
$43.4 million, compared with
$39.0 million in the first quarter of
2022 and $28.7 million in the second
quarter of 2021.
On a GAAP basis, the Company reported net income of $34.9 million, or $1.09 per diluted share, in the second quarter of
2022. This is compared with net income of $34.2 million, or $1.07 per diluted share, in the first quarter of
2022, and net income of $22.9
million, or $0.77 per diluted
share, in the second quarter of 2021.
On a non-GAAP basis, the Company reported net income of
$39.5 million, or $1.24 per diluted share, in the second
quarter of
2022. This is compared with net income
of $41.5
million, or $1.30 per diluted share, in
the first quarter of 2022, and net income of $26.9 million, or $0.90 per diluted share, in the second quarter of
2021.
Conference Call Information
Nova will host a conference call today, August 4, 2022, 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: 1-800-239-9838
ISRAEL TOLL-FREE Dial-in Number:
1-809-407-724
INTERNATIONAL Dial-in Number: 1-323-794-2551
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
August 4, 2022, at 11:30 a.m. Eastern Time to August 11, 2022, 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: 2902650
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 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, acquisition related
expenses, inventory step-up and contingent consideration
revaluation, stock-based compensation expenses, 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 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: 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 our intellectual
property; open source technology exposure; failure to compete
effectively or to respond to the 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; 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, 2021 filed with the
Securities and Exchange Commission on March
1, 2022. 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,
2022
|
December
31,
2021
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
170,297
|
126,698
|
|
Short-term
interest-bearing bank deposits
|
105,393
|
221,897
|
|
Marketable
securities
|
88,622
|
61,568
|
|
Trade accounts
receivable, net
|
94,559
|
68,446
|
|
Inventories
|
101,633
|
78,665
|
|
Other current
assets
|
17,326
|
9,242
|
|
Total current
assets
|
577,830
|
566,516
|
|
Non-current
assets
|
|
|
|
Marketable
securities
|
120,937
|
137,415
|
|
Interest-bearing bank
deposits
|
3,263
|
3,672
|
|
Restricted
interest-bearing bank deposits
|
1,600
|
1,600
|
|
Deferred tax
assets
|
11,306
|
6,161
|
|
Severance pay
funds
|
1,198
|
1,327
|
|
Operating lease
right-of-use assets
|
44,873
|
30,627
|
|
Property and
equipment, net
|
45,781
|
34,460
|
|
Intangible assets,
net
|
45,456
|
2,601
|
|
Goodwill
|
48,534
|
20,114
|
|
Other long-term
assets
|
723
|
661
|
|
Total non-current
assets
|
323,671
|
238,638
|
|
Total
assets
|
901,501
|
805,154
|
|
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Convertible senior
notes, net
|
-
|
183,037
|
|
Trade accounts
payable
|
36,819
|
36,218
|
|
Deferred
revenues
|
19,829
|
15,338
|
|
Operating lease
current liabilities
|
5,727
|
4,452
|
|
Other current
liabilities
|
53,713
|
48,885
|
|
Total current
liabilities
|
116,088
|
287,930
|
|
Non-current
liabilities
|
|
|
|
Convertible senior
notes, net
|
195,750
|
-
|
|
Accrued severance
pay
|
3,628
|
3,686
|
|
Operating lease
long-term liabilities
|
43,301
|
33,450
|
|
Long-term deferred tax
liability
|
12,593
|
-
|
|
Other long-term
liabilities
|
7,627
|
6,334
|
|
Total non-current
liabilities
|
262,899
|
43,470
|
|
Shareholders'
equity
|
522,514
|
473,754
|
|
Total liabilities
and shareholders' equity
|
901,501
|
805,154
|
|
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,
|
|
2022
|
2021
|
2022
|
2021
|
|
Revenues:
|
|
|
|
|
|
Products
|
114,120
|
78,293
|
224,032
|
144,576
|
|
Services
|
27,508
|
19,453
|
51,553
|
37,303
|
|
Total
revenues
|
141,628
|
97,746
|
275,585
|
181,879
|
|
Total cost of
revenues
|
61,240
|
41,802
|
119,047
|
78,005
|
|
Gross
profit
|
80,388
|
55,944
|
156,538
|
103,874
|
|
Operating
expenses:
|
|
|
|
|
|
Research and
development, net
|
22,115
|
15,341
|
41,244
|
29,859
|
|
Sales and
marketing
|
12,342
|
9,432
|
24,588
|
18,972
|
|
General and
administrative
|
7,455
|
3,388
|
13,511
|
6,927
|
|
Amortization of
intangible assets
|
1,513
|
574
|
3,126
|
1,149
|
|
Total operating
expenses
|
43,425
|
28,735
|
82,469
|
56,907
|
|
Operating
income
|
36,963
|
27,209
|
74,069
|
46,967
|
|
Financing income
(expense), net
|
3,568
|
(1,150)
|
4,786
|
(726)
|
|
Income before taxes
on income
|
40,531
|
26,059
|
78,855
|
46,241
|
|
Income tax
expenses
|
5,653
|
3,135
|
9,815
|
5,701
|
|
Net income for the
period
|
34,878
|
22,924
|
69,040
|
40,540
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
Basic
|
1.22
|
0.81
|
2.41
|
1.43
|
|
Diluted
|
1.09
|
0.77
|
2.16
|
1.37
|
|
|
|
|
|
|
Shares used in
calculation of earnings per share
(in thousands):
|
|
|
|
|
|
Basic
|
28,688
|
28,304
|
28,662
|
28,259
|
|
Diluted
|
31,902
|
29,815
|
31,963
|
29,561
|
|
NOVA
LTD.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(U.S. dollars in
thousands) - (Unaudited)
|
|
|
Three months
ended
June 30,
|
Six months ended
June 30,
|
|
2022
|
2021
|
2022
|
2021
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net
income
|
34,878
|
22,924
|
69,040
|
40,540
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation of property and
equipment
|
2,001
|
1,596
|
4,036
|
3,175
|
|
Amortization of intangible
assets
|
1,513
|
574
|
3,126
|
1,149
|
|
Amortization of premium and
accretion of discount on marketable securities, net
|
715
|
283
|
1,544
|
283
|
|
Amortization of debt
discount and issuance costs
|
318
|
1,051
|
638
|
2,085
|
|
Share-based
compensation
|
4,072
|
2,128
|
7,932
|
4,350
|
|
Net effect of exchange rate
fluctuation
|
2,178
|
(350)
|
2,971
|
12
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
Trade accounts receivables,
net
|
(17,264)
|
1,613
|
(16,794)
|
5,107
|
|
Inventories
|
(5,637)
|
(5,831)
|
(12,535)
|
(10,248)
|
|
Other current and long-term
assets
|
7,925
|
554
|
(8,071)
|
(608)
|
|
Deferred tax assets,
net
|
(2,331)
|
(1,116)
|
(4,940)
|
(1,714)
|
|
Operating lease right-of-use
assets
|
1,123
|
411
|
2,035
|
817
|
|
Trade accounts
payables
|
881
|
1,932
|
(1,060)
|
2,371
|
|
Deferred revenues
|
5,266
|
(147)
|
4,522
|
8,874
|
|
Operating lease
liabilities
|
(4,332)
|
81
|
(5,138)
|
(1,185)
|
|
Other current and long-term
liabilities
|
(6,234)
|
587
|
(9,385)
|
4,305
|
|
Accrued severance pay,
net
|
10
|
93
|
71
|
55
|
|
Net cash provided by
operating activities
|
25,082
|
26,383
|
37,992
|
59,368
|
|
Cash flows from
investment activities:
|
|
|
|
|
|
Acquisition of
subsidiary, net of acquired cash
|
-
|
-
|
(78,469)
|
-
|
|
Change in short-term
and long-term interest-bearing bank deposits
|
66,872
|
2,461
|
116,504
|
(53,344)
|
|
Investment in
marketable securities
|
(34,691)
|
(101,466)
|
(51,527)
|
(101,466)
|
|
Proceeds from
maturities of marketable securities
|
18,428
|
1,200
|
34,198
|
1,200
|
|
Purchase of property
and equipment
|
(4,239)
|
(1,318)
|
(7,957)
|
(1,806)
|
|
Net cash provided by
(used in) investing activities
|
46,370
|
(99,123)
|
12,749
|
(155,416)
|
|
Cash flows from
investment activities:
|
|
|
|
|
|
Purchases of treasury
shares
|
(4,270)
|
-
|
(4,270)
|
-
|
|
Proceeds from exercise
of options
|
82
|
-
|
82
|
-
|
|
Net cash used in
financing activities
|
(4,188)
|
-
|
(4,188)
|
-
|
|
Effect of exchange rate
fluctuations on cash and cash equivalents
|
(2,160)
|
272
|
(2,954)
|
34
|
|
Changes in cash and
cash equivalents
|
65,104
|
(72,468)
|
43,599
|
(96,014)
|
|
Cash and cash
equivalents - beginning of period
|
105,193
|
208,758
|
126,698
|
232,304
|
|
Cash and cash
equivalents - end of period
|
170,297
|
136,290
|
170,297
|
136,290
|
|
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,
2022
|
March 31,
2022
|
June 30,
2021
|
|
GAAP gross
profit
|
80,388
|
76,150
|
55,944
|
|
Stock-based
compensation*
|
1,021
|
883
|
382
|
|
Acquisition-related
inventory step-up
|
366
|
2,606
|
-
|
|
Non-GAAP gross
profit
|
81,775
|
79,639
|
56,326
|
|
GAAP gross margin as
a percentage of revenues
|
57 %
|
57 %
|
57 %
|
|
Non-GAAP gross
margin as a percentage of revenues
|
58 %
|
59 %
|
58 %
|
|
|
|
|
|
GAAP operating
income
|
36,963
|
37,106
|
27,209
|
|
Stock-based
compensation*
|
4,072
|
3,860
|
2,128
|
|
Acquisition-related
inventory step-up
|
366
|
2,606
|
-
|
|
Acquisition-related
expenses and contingent
consideration
revaluation
|
2,392
|
1,355
|
-
|
|
Amortization of
acquired intangible assets
|
1,513
|
1,613
|
574
|
|
Non-GAAP operating
income
|
45,306
|
46,540
|
29,911
|
|
GAAP operating
margin as a percentage of revenues
|
26 %
|
28 %
|
28 %
|
|
Non-GAAP operating
margin as a percentage of revenues
|
32 %
|
35 %
|
31 %
|
|
|
|
|
|
GAAP net
income
|
34,878
|
34,162
|
22,924
|
|
Stock-based
compensation*
|
4,072
|
3,860
|
2,128
|
|
Acquisition-related
inventory step-up
|
366
|
2,606
|
-
|
|
Acquisition-related
expenses and contingent
consideration
revaluation
|
2,392
|
1,355
|
-
|
|
Amortization of
acquired intangible assets
|
1,513
|
1,613
|
574
|
|
Amortization of debt
discount and issuance costs
|
318
|
320
|
1,051
|
|
Revaluation of
operating lease liabilities
|
(3,350)
|
(546)
|
554
|
|
Tax effect of non-GAAP
adjustments
|
(643)
|
(1,883)
|
(345)
|
|
Non-GAAP net
income
|
39,546
|
41,487
|
26,886
|
|
|
|
|
|
GAAP basic earnings per
share
|
1.22
|
1.20
|
0.81
|
|
Non-GAAP basic earnings
per share
|
1.38
|
1.45
|
0.95
|
|
|
|
|
|
GAAP diluted earnings
per share
|
1.09
|
1.07
|
0.77
|
|
Non-GAAP diluted
earnings per share
|
1.24
|
1.30
|
0.90
|
|
|
|
|
|
Shares used for
calculation of earnings per share
(in thousands):
|
|
|
|
|
Basic
|
28,688
|
28,579
|
28,304
|
|
Diluted
|
31,902
|
31,968
|
29,815
|
|
|
|
|
|
* Stock-based compensation for the three months ended
June 30, 2022 included in: Cost of
revenues - 1,021; Research and development, net - 1,694; Sales and
marketing - 756; General and administrative - 601.
|
NOVA
LTD.
|
|
SUPPLEMENTAL
INFORMATION - RECONCILIATION OF THIRD QUARTER 2022
|
|
GAAP TO NON-GAAP
GUIDANCE
|
|
(Unaudited)
|
|
|
Low
|
High
|
|
Estimated GAAP net
income per diluted share
|
0.89
|
1.08
|
|
Estimated non-GAAP
items:
|
|
|
|
Stock-based
compensation
|
0.15
|
0.15
|
|
Amortization of
acquired intangible assets
|
0.05
|
0.05
|
|
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
|
1.06
|
1.25
|
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
View original
content:https://www.prnewswire.com/news-releases/nova-reports-results-for-second-quarter-of-2022-301599884.html
SOURCE Nova
