NOVA MEASURING INSTRUMENTS LTD. REHOVOT, Israel, May 4, 2016 /PRNewswire/ -- Nova Measuring Instruments (Nasdaq: NVMI), a leading innovator and a key provider of metrology solutions for advanced process control used in semiconductor manufacturing, today reported financial results for the first quarter of 2016, the period ended March 31, 2016.
First Quarter 2016 Highlights:
-- Revenues of $34.1 million, within guidance ($33-37 million)
-- Non-GAAP net income of $4.5 million, or $0.16 per diluted share, at the
high end of the guidance ($0.10-$0.17 per diluted share)
-- Diversified customer mix yielded four customers contributing more than
10% each to the quarterly revenues, including one leading memory
customer
-- Selected by the world's leading foundry to deliver Optical and X-ray
metrology solutions for multiple process steps at 10/7/5nm technology
nodes
-- Growing revenues from multiple competitive wins in China
GAAP Results ($K)
----------------
Q1 2016 Q4 2015 Q1 2015
------- ------- -------
Revenues $34,056 $40,022 $27,494
-------- ------- ------- -------
Net Income $2,905 $5,161 $2,977
---------- ------ ------ ------
Earnings per Diluted Share $0.11 $0.19 $0.11
-------------------------- ----- ----- -----
NON-GAAP Results ($K)
--------------------
Q1 2016 Q4 2015 Q1 2015
------- ------- -------
Net Income $4,450 $5,278 $4,034
---------- ------ ------ ------
Earnings per Diluted Share $0.16 $0.19 $0.15
-------------------------- ----- ----- -----
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, deferred tax assets adjustments (net), stock-based compensation expenses and acquisition related expenses.
Management Comments
"The first quarter results were in-line with our expectations, with profitability at the higher end of our guidance, reflecting the market dynamics and our ability to adjust accordingly," commented Eitan Oppenhaim, President and Chief Executive Officer of Nova. "As evident by this quarter results, our focus on customer diversification is becoming critically important, as customers adopt different spending cycles, and is a key to our continuous growth. Our goal to expand our portfolio by converging different metrology techniques (X-ray and Optical) is gathering momentum with several customers as we widen our applications' reach beyond CDs to include Film Thickness and Material composition as well."
"A notable recent uptick in bookings supports our expectations that 2016 will be another well-executed year with a stronger second half that will benefit primarily from investment related to next-generation devices," continued Mr. Oppenhaim. "The increase in bookings is already evident, with the recent announcement of more than $20 million in orders received from several Foundry customers in recent weeks, bolstering our confidence in another solid year for Nova."
2016 Second Quarter Financial Outlook
Management provided an outlook for the second quarter, the period ending June 30, 2016. Based on current estimates, management expects:
-- $34 million to $38 million in revenue
-- $0.08 to $0.15 in diluted non-GAAP EPS
-- $0.04 to $0.10 in diluted GAAP EPS
2016 First Quarter Results
Total revenues for the first quarter of 2016 were $34.1 million, a decrease of 15% compared to the fourth quarter of 2015, and an increase of 24% relative to the first quarter of 2015.
Gross margin for the first quarter of 2016 was 54%. This is compared with 52% in the fourth quarter and first quarter of 2015.
Operating expenses in the first quarter of 2016 were $15.7 million, and included $0.6 million of amortization of acquired intangible assets. This is compared with $17.3 million in the fourth quarter of 2015 and compared with $12.1 million in the first quarter of 2015.
On a GAAP basis, the company reported net income of $2.9 million, or $0.11 per diluted share, in the first quarter of 2016. This is compared with net income of $5.2 million, or $0.19 per diluted share, in the fourth quarter of 2015. The company reported net income of $3.0 million, or $0.11 per diluted share, in the first quarter of 2015.
On a Non-GAAP basis, which excludes amortization of acquired intangible assets, adjustments of deferred tax assets net, stock-based compensation expenses and acquisition related expenses the company reported net income of $4.5 million, or $0.16 per diluted share, in the first quarter of 2016. This is compared with net income of $5.3 million, or $0.19 per diluted share, in the fourth quarter of 2015 and compared with net income of $4.0 million, or $0.15 per diluted share, in the first quarter of 2015.
Conference Call Information
Nova will host a conference call that same day, May 4, 2016, at 9:30 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: 1-888-417-8516
ISRAEL Dial-in Number: 1-80-924-5906
INTERNATIONAL Dial-in Number: 1-719-457-2645
At:
9:30 a.m. Eastern Time
6:30 a.m. Pacific Time
4:30 p.m. Israeli Time
Please reference conference ID 1539748
The conference call will also be webcast live from a link on Nova's website at http://ir.novameasuring.com.
About Nova: Nova Measuring Instruments delivers continuous innovation by providing advanced metrology solutions for the semiconductor manufacturing industry. Deployed with the world's largest integrated-circuit manufacturers, Nova's products deliver 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, supports the development and production of the most advanced devices in today's high-end semiconductor market. Nova's technical innovation and market leadership enable customers to improve process performance, enhance products' 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.novameasuring.com.
Nova is traded on the NASDAQ & TASE under the symbol NVMI.
This press release provides financial measures that exclude non-cash charges for amortization of acquired intangible assets, deferred tax assets adjustments (net), stock-based compensation expenses and acquisition related expenses 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 ability to recognize the benefits of ReVera acquisition and risks that the acquisition may disrupt current plans and operations and impact relationships with customers, distributors and suppliers; 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 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 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, 2015 filed with the Securities and Exchange Commission on February 29, 2016. 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.
(Tables to Follow)
NOVA MEASURING INSTRUMENTS LTD.
-------------------------------
CONDENSED CONSOLIDATED BALANCE SHEETS
-------------------------------------
(U.S. dollars in thousands) - (Unaudited)
As of
-----
March 31, December 31,
2016 2015
ASSETS (Audited)
--------
Current assets
Cash and cash equivalents 16,198 27,733
Short-term interest-bearing
bank deposits 76,328 69,298
Trade accounts receivable 22,086 19,046
Inventories 27,974 27,683
Deferred tax assets 4,439 3,540
Other current assets 3,752 2,888
----- -----
Total current assets 150,777 150,188
------- -------
Long-term assets
Long-term interest-bearing bank
deposits 750 750
Deferred tax assets 4,792 5,735
Severance pay funds 1,541 1,514
Property and equipment, net 10,433 11,062
Identifiable intangible assets,
net 17,270 17,906
Goodwill 20,114 20,114
------ ------
Total long-term assets 54,900 57,081
------ ------
Total assets 205,677 207,269
======= =======
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities
Trade accounts payable 11,188 14,378
Deferred revenues 2,871 5,828
Deferred tax liabilities 1,297 956
Other current liabilities 15,895 15,996
------ ------
Total current liabilities 31,251 37,158
------ ------
Long-term liabilities
Deferred tax liabilities 5,528 5,760
Liability for employee severance
pay 2,562 2,469
Other long-term liabilities 848 822
--- ---
Total long-term liabilities 8,938 9,051
----- -----
Shareholders' equity 165,488 161,060
------- -------
Total liabilities and
shareholders' equity 205,677 207,269
======= =======
NOVA MEASURING INSTRUMENTS LTD.
-------------------------------
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
-----------------------------------------------
(U.S. dollars in thousands, except per share data) - (Unaudited)
Three months ended
------------------
March 31, March 31,
2016 2015
---- ----
Revenues:
Products 24,262 19,324
Services 9,794 8,170
----- -----
Total
revenues 34,056 27,494
------ ------
Cost of revenues:
Products 9,861 8,639
Services 5,665 4,432
----- -----
Total cost
of
revenues 15,526 13,071
------ ------
Gross
profit 18,530 14,423
------ ------
Operating expenses:
Research
and
development
expenses,
net 7,908 6,999
Sales and
marketing
expenses 5,367 2,806
General
and
administration
expenses 1,810 1,224
Acquisition
related
expenses - 1,106
Amortization
of
acquired
intangible
assets 636 -
--- ---
Total
operating
expenses 15,721 12,135
------ ------
Operating
income 2,809 2,288
Financing
income,
net 469 211
--- ---
Income
before
tax on
income 3,278 2,499
Income tax
expenses
(benefit) 373 (478)
--- ----
Net income
for the
period 2,905 2,977
===== =====
Earnings per share:
Basic 0.11 0.11
==== ====
Diluted 0.11 0.11
==== ====
Shares used for
calculation of
earnings per
share:
Basic 27,116 27,210
====== ======
Diluted 27,351 27,552
====== ======
NOVA MEASURING INSTRUMENTS LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands) - (Unaudited)
----------------------------------------
Three months ended
------------------
March 31, March 31,
2016 2015
---- ----
Cash flows from operating
activities:
Net income for the period 2,905 2,977
Adjustments to reconcile net
income to net cash
provided by (used in)
operating activities:
Depreciation 1,285 1,060
Amortization of acquired
intangible assets 636 -
Amortization of deferred
stock-based compensation 756 517
Increase (decrease) in
liability for employee
termination 66 (16)
benefits, net
Deferred tax assets, net 153 (566)
Loss on securities - 42
Increase in trade accounts
receivable (3,040) (2,496)
Decrease (increase) in
inventories (370) 117
Decrease (increase) in other
current and long term
assets (347) 330
Increase (decrease) in trade
accounts payable (3,190) 135
Increase (decrease) in other
current liabilities and (117) 475
other long-term liabilities
Decrease in short and long
term deferred (2,957)
revenues (1,102)
------
Net cash provided by (used
in) operating activities (4,220) 1,473
------ -----
Cash flow from investment
activities:
Decrease (increase) in
short-term interest-
bearing (7,030)
bank deposits 48,497
Payment on account of
acquisition - (46,500)
Additions to property and
equipment (577) (757)
---- ----
Net cash provided by (used
in) investment activities (7,607) 1,240
------ -----
Cash flows from financing
activities:
Shares issued under employee
stock-based plans 292 1,092
--- -----
Net cash provided by
financing activities 292 1,092
--- -----
Increase (decrease) in cash
and cash equivalents (11,535) 3,805
Cash and cash equivalents -
beginning of period 27,733 13,649
------ ------
Cash and cash equivalents -
end of period 16,198 17,454
====== ======
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, December 31, March 31,
2016 2015 2015
---- ---- ----
GAAP
cost of
revenues 15,526 19,168 13,071
Amortization
of
acquired
intangible
assets
in cost
of
products - (1,051) -
Stock-
based
compensation
in cost
of
products (96) (94) (81)
Stock-
based
compensation
in cost
of
services (64) (63) (32)
--- --- ---
Non-
GAAP
cost of
revenues 15,366 17,960 12,958
====== ====== ======
GAAP
gross
profit 18,530 20,854 14,423
Gross
profit
adjustments 160 1,208 113
--- ----- ---
Non-
GAAP
gross
profit 18,690 22,062 14,536
====== ====== ======
GAAP
gross
margin
as a
percentage
of
revenues 54% 52% 52%
Non-GAAP
gross
margin
as a
percentage
of
revenues 55% 55% 53%
GAAP
operating
expenses 15,721 17,284 12,135
Stock-
based
compensation
in
research
and
development (306) (322) (190)
Stock-
based
compensation
in
sales
and
marketing (210) (213) (160)
Stock-
based
compensation
in
general
and
administrative (80) (73) (54)
Acquisition
related
expenses - - (1,106)
Amortization
of
acquired
intangible
assets (636) (378) -
---- ---- ---
Non-
GAAP
operating
expenses 14,489 16,298 10,625
------ ------ ------
Non-
GAAP
operating
income 4,201 5,764 3,911
===== ===== =====
GAAP
operating
margin
as a
percentage
of
revenues 8% 9% 8%
Non-GAAP
operating
margin
as a
percentage
of
revenues 12% 14% 14%
GAAP tax
on
income 373 (1,407) (478)
Deferred
tax
assets
adjustments,
net (153) 2,077 566
---- ----- ---
Non-
GAAP
tax on
income 220 670 88
=== === ===
GAAP net
income 2,905 5,161 2,977
Amortization
of
acquired
intangible
assets 636 1,429 -
Stock-
based
compensation
expenses 756 765 517
Deferred
tax
assets
adjustments,
net 153 (2,077) (566)
Acquisition
related
expenses - - 1,106
--- --- -----
Non-
GAAP
net
income 4,450 5,278 4,034
===== ===== =====
GAAP
basic
earnings
per
share 0.11 0.19 0.11
==== ==== ====
Non-
GAAP
basic
earnings
per
share 0.16 0.19 0.15
==== ==== ====
GAAP
diluted
earnings
per
share 0.11 0.19 0.11
==== ==== ====
Non-
GAAP
diluted
earnings
per
share 0.16 0.19 0.15
==== ==== ====
Shares used for calculation of
earnings per share:
Basic 27,116 27,210
27,073
======
Diluted 27,351 27,334 27,552
====== ====== ======
Company Contact: Investor Relations Contacts:
Dror David, Chief Financial Officer Hayden/ MS-IR LLC
Nova Measuring Instruments Ltd. Miri Segal
Tel: +972-73-229-5760 Tel: +917-607-8654
E-mail: info@novameasuring.com E-mail: msegal@ms-ir.com
www.novameasuring.com Or
Brett Maas
Tel: +646-536-7331
E-mail: brett@haydenir.com
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SOURCE Nova Measuring Instruments
