Nova Reports First Quarter 2019 Results

REHOVOT, Israel, May 1, 2019 /PRNewswire/ -- Nova (Nasdaq: NVMI) today announced financial results for the first quarter 2019, the period ended March 31, 2019.

First Quarter 2019 Highlights:

  • Quarterly revenue of $56.7 million, meeting guidance of $52 Million to $58 Million.
  • GAAP net income of $7.8 million, or $0.27 per diluted share, exceeding guidance of $0.15 to $0.26 per share
  • Non-GAAP net income of $10.4 million, or $0.37 per diluted share, exceeding guidance of $0.24 to $0.34 per share
  • Five customers contributed 10% or more each to total product revenues, including two Foundry and three Memory providers
  • Additional Memory penetration and extensive deliveries to leading edge Foundry led to a balanced revenue mix

 

GAAP Results ($K)


Q1 2019

Q4 2018

Q1 2018

Revenues

$56,657

$63,072

$62,603

Net Income

$7,756

$15,152

$14,080

Earnings per Diluted Share

$0.27

$0.53

$0.49

NON-GAAP Results ($K)


Q1 2019

Q4 2018

Q1 2018

Net Income

$10,449

$16,914

$15,430

Earnings per Diluted Share

$0.37

$0.59

$0.54

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, facilities transition costs, revaluation of long-term liabilities and tax effect of non-GAAP adjustments.


Management Comments

"Nova continued to demonstrate solid execution through the first quarter of 2019, with revenue within the guidance range and EPS exceeding guidance. The results demonstrate the efficient business model we have built predicated on growing diversification in our revenue mix, customer base and technology offering" commented Eitan Oppenhaim, President and Chief Executive Officer of Nova. "Looking forward, we are confident in our strategy and expect that our balanced market exposure, combined with our newly awaited products, will further strengthen the company's fundamentals and will support our long-term growth plans as market conditions improve beyond the interim industry volatility."

2019 Second Quarter Financial Outlook

Management provided an outlook for the second quarter, the period ending June 30, 2019. Based on current estimates, management expects:

  • $45 million to $53 million in revenue
  • $0.09 to $ 0.26 in diluted GAAP EPS
  • $ 0.17 to $ 0.35 in diluted non-GAAP EPS

2019 First Quarter Results

Total revenues for the first quarter of 2019 were $56.7 million, a decrease of 10% compared to the fourth quarter of 2018 and the first quarter of 2018.

Gross margin for the first quarter of 2019 was 56%, compared to 57% gross margin in the fourth quarter of 2018, and compared to the gross margin of 58% in the first quarter of 2018.

Operating expenses in the first quarter of 2019 were $22.9 million, compared with $20.7 in the fourth quarter of 2018, and compared with $20.3 million in the first quarter of 2018.

On a GAAP basis, the company reported net income of $7.8 million, or $0.27 per diluted share, in the first quarter of 2019. This is compared with $15.2 million, or $0.53 per diluted share, in the fourth quarter of 2018, and compared with net income of $14.1 million, or $0.49 per diluted share, in the first quarter of 2018.

On a non-GAAP basis, which exclude amortization of acquired intangible assets, stock-based compensation expenses, facilities transition costs, revaluation of long-term liabilities and tax effect of non-GAAP adjustments, the company reported net income of $10.4 million, or $0.37 per diluted share, in the first quarter of 2019. This is compared with net income of $16.9 million, or $0.59 per diluted share, in the fourth quarter of 2018, and compared with net income of $15.4 million, or $0.54 per diluted share, in the first quarter of 2018.

Conference Call Information

Nova will host a conference call today, May 1, 2019, at 9 a.m. Eastern Time, to discuss the financial results and future 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. Dial-in Number: 1-888-394-8218
ISRAEL Dial-in Number: 1-809-212-883
INTERNATIONAL Dial-in Number: 1-323-701-0225
At:
9 a.m. Eastern Time
6 a.m. Pacific Time
4 p.m. Israeli Time

Please reference conference ID 3002923

The conference call will also be webcast live from a link on Nova's website at http://ir.novami.com.

A replay of the conference call will be available from May 1, 2019 at 12 p.m. Eastern Time to May 8, 2019 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:  3002923

A replay will also be available for 90 days on Nova's website at http://ir.novami.com.

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 enable 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, 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 the worldwide financial instabilities; 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 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, 2018 filed with the Securities and Exchange Commission on February 28, 2019. 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.

 

 

NOVA MEASURING INSTRUMENTS LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands) - (Unaudited)




As of

ASSETS


March 31,


December 31,

2019

2018

Current assets





Cash and cash equivalents


36,134


22,877

Short-term interest-bearing bank deposits


155,323


152,951

Trade accounts receivable


46,921


53,531

Inventories


45,631


41,786

Other current assets


10,359


10,961






Total current assets


294,368


282,106






Long-term assets





Long-term interest-bearing bank deposits


2,000


2,000

   Deferred tax assets


4,070


3,873

   Severance pay funds


1,436


1,394

   Property and equipment, net


15,025


13,756

   Identifiable intangible assets, net


9,530


10,187

   Operating lease right-of-use assets


27,826


-

   Goodwill


20,114


20,114






Total long-term assets


80,001


51,324






Total assets


374,369


333,430






LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities





Trade accounts payable


22,319


19,015

   Deferred revenues


5,118


3,984

   Operating lease current liabilities


3,236


-

   Other current liabilities


23,239


25,079






Total current liabilities


53,912


48,078






Long-term liabilities





   Liability for employee severance pay


2,329


2,254

   Operating lease long-term liabilities


25,697


-

   Other long-term liabilities


2,422


2,358






Total long-term liabilities


30,448


4,612






Shareholders' equity 


290,009


280,740






Total liabilities and shareholders' equity


374,369


333,430

 

 

NOVA MEASURING INSTRUMENTS LTD.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(U.S. dollars in thousands, except per share data) - (Unaudited)





Three months ended






March 31,

2019


March 31,

2018









Revenues:








Products





44,061


50,185

Services





12,596


12,418

Total revenues





56,657


62,603









Cost of revenues:








Products





17,577


17,969

Services





7,496


8,277

Total cost of revenues





25,073


26,246









Gross profit





31,584


36,357









Operating expenses:








Research and development expenses, net





12,584


11,226

Sales and marketing expenses





7,146


6,231

General and administrative expenses





2,522


2,230

Amortization of acquired intangible assets





656


653

Total operating expenses





22,908


20,340









Operating income





8,676


16,017









Financing income, net





510


448









Income before tax on income





9,186


16,465









Income tax expenses





1,430


2,385









Net income for the period





7,756


14,080









Earnings per share:








Basic





0.28


0.50

Diluted





0.27


0.49









Shares used for calculation of earnings per
share:
















Basic





27,932


27,915

Diluted





28,580


28,739

 

 

NOVA MEASURING INSTRUMENTS LTD.


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


(U.S. dollars in thousands) - (Unaudited)





Three months ended




March 31,

2019


March 31,

2018


Cash flows from operating activities:






Net income for the period


7,756


14,080



Adjustments to reconcile net income to net cash
provided by operating activities:






Depreciation and amortization


2,700


1,568


Amortization of deferred stock-based compensation


1,212


834


Decrease (increase) in liability for employee termination benefits, net


33


(41)


Deferred tax assets, net


(197)


(136)


Decrease in trade accounts receivable


6,610


3,567


Increase in inventories


(4,532)


(4,475)


Decrease in other current assets


602


1,506


Increase in trade accounts payable


3,304


2,353


Decrease in other current liabilities and other long-term liabilities


(1,122)


(2,684)


Increase (decrease) in short term deferred revenues


1,134


(4,369)








Net cash provided by operating activities


17,500


12,203








Cash flow from investment activities:






Increase in short-term and long-term interest-bearing bank deposits


(2,372)


*(10,808)


Additions to property and equipment


(1,977)


(361)








Net cash used in investment activities


(4,349)


*(11,169)








Cash flows from financing activities:






Shares issued under employee stock-based plans


106


87








Net cash provided by financing activities


106


87








Increase in cash and cash equivalents and restricted cash


13,257


*1,121


Cash and cash equivalents and restricted cash – beginning of period


24,877


*28,447


Cash and cash equivalents and restricted cash – end of period


38,134


*29,568








Reconciliation of cash, cash equivalents, and restricted cash to the
consolidated balance sheet






Cash and cash equivalents


36,134


28,468


Restricted cash included in Long-term interest-bearing bank deposits


2,000


1,100


Total cash, cash equivalents, and restricted cash


38,134


29,568








     *Reclassified












 

 

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,

2019


December 31,

2018


March 31,

2018

GAAP gross profit

31,584


35,710


36,357

Stock-based compensation expenses

234


269


171

Facilities transition costs

212


-


-

Non-GAAP gross profit

32,030


35,979


36,528

GAAP gross margin as a percentage of revenues

56%


57%


58%

Non-GAAP gross margin as a percentage of revenues

57%


57%


58%







GAAP operating income

8,676


15,054


16,017

Stock-based compensation expenses

1,212


1,245


834

Amortization of acquired intangible assets

656


654


653

Facilities transition costs

614


-


-

Non-GAAP operating income

11,158


16,953


17,504

GAAP operating margin as a percentage of revenues

15%


24%


26%

Non-GAAP operating margin as a percentage of revenues

20%


27%


28%







GAAP net income

7,756


15,152


14,080

Stock-based compensation expenses

1,212


1,245


834

Amortization of acquired intangible assets

656


654


653

Facilities transition costs

614


-


-

Revaluation of long-term liabilities

484


-


-

Tax effect of non-GAAP adjustments

(273)


(137)


(137)

Non-GAAP net income

10,449


16,914


15,430







GAAP basic earnings per share

0.28


0.54


0.50

Non-GAAP basic earnings per share

0.37


0.60


0.55







GAAP diluted earnings per share

0.27


0.53


0.49

Non-GAAP diluted earnings per share

0.37


0.59


0.54







Shares used for calculation of earnings per share:






Basic

27,932


28,026


27,915

Diluted

28,580


28,655


28,739








 

 

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

 

Cision View original content:http://www.prnewswire.com/news-releases/nova-reports-first-quarter-2019-results-300841645.html

SOURCE Nova

{{root.upsell.info.feature_headline}}.

{{root.upsell.info.feature_description}}

Please note that this feature is only available as an add-on to YCharts subscriptions.


Please note that this feature requires full activation of your account and is not permitted during the free trial period.

Start My Free Trial {{root.upsell.info.call_to_action}} No credit card required.

Already a subscriber? Sign in.