Nova Announces 2010 Fourth Quarter and Full Year Results
Excellent Momentum Lays Foundation for Outperforming the Industry in 2011 for Third Consecutive Year
REHOVOT, Israel, February 15, 2011 /PRNewswire-FirstCall/ -- Nova Measuring Instruments Ltd. (Nasdaq: NVMI), provider of leading edge stand alone metrology and the market leader of integrated metrology solutions to the semiconductor process control market, today reported its 2010 fourth quarter and full year financial results.
Highlights for the Fourth Quarter of 2010
- Quarterly revenues of $27.0 million, up 77% year over year
- Gross margin of 57.0%
- Record quarterly net income of $7.5 million, or $0.28 per diluted
share
- Positive cash flow from operating activities of $6.7 million
Highlights for the Full Year 2010
- Revenues of $86.6 million, up 120% year over year
- Products revenues of $71.8 million, up 142% year over year
- Gross margin of 54.7%, up from 44.7% in 2009
- Record net income of $22.2 million, or $0.86 per diluted share
- Positive operating cash flow of $25.8 million
- Doubled Stand Alone Optical CD customer base
Management Comments
"The fourth quarter and 2010 as a whole were excellent by any metric", commented Gabi Seligsohn, President and CEO of Nova. "For the second consecutive year, we continued to outperform the industry by solid execution of our strategic plans. We implemented adjustments to our business model in integrated metrology; we continued our penetration of the stand alone metrology market and doubled our customer base; we improved the performance of our services business and, finally, we identified attractive new areas for growth in new process technologies".
"In order to maintain our current strong margins on significantly higher revenues over the long term, we continued to step up our research and development expenses and capital expenditures during the fourth quarter, and this investment will continue during 2011. Through our strategic investments, we believe we will succeed in expanding our share of currently served market segments by introducing next generation solutions and adding applications at existing customer sites. In addition, we expect to expand our total addressable market to close to $1 billion over the next few years, by introducing solutions for new process technologies that our customers are currently developing. These steps are the cornerstones of our strategy that will enable us to continue to outperform the overall market over the long term."
2011 First Quarter Guidance
For the first quarter of 2011, management expects revenues of $27.5-$29.5 million, with net profitability of 25%-28%.
2010 Fourth Quarter Results
Total revenues for the fourth quarter of 2010 were $27.0 million, an increase of 77% relative to the fourth quarter of 2009, and an increase of 11% relative to the third quarter of 2010.
Gross margin for the fourth quarter of 2010 was 57.0%, compared with 48.5% in the fourth quarter of 2009 and 55.7% in the third quarter of 2010.
Operating expenses in the fourth quarter of 2010 were $8.0 million, compared with $4.7 million in the fourth quarter of 2009 and $6.4 million in the third quarter of 2010.
The company reported net income of $7.5 million, or $0.28 per diluted share, in the fourth quarter of 2010. This compares to a net income of $2.7 million, or $0.13 per diluted share, in the fourth quarter of 2009, and a net income of $7.3 million, or $0.27 per diluted share, in the third quarter of 2010.
The company generated $6.7 million in cash from operating activities during the fourth quarter of 2010.
2010 Full Year Results
Total revenues for 2010 were $86.6 million, as compared with total revenues of $39.3 million for 2009.
Gross margin in 2010 was 54.7%, as compared to 44.7% in 2009.
Operating expenses in 2010 were $25.6 million, as compared with $15.1 million in 2009.
Net income in 2010 was $22.2 million, or $0.86 per diluted share, as compared to a net income of $2.6 million, or $0.13 per diluted share, in 2009.
During 2010, the company generated $25.8 million in cash flow from operating activities, as compared to $1.8 million cash flow used for operating activities in 2009.
Total cash reserves at the end of 2010 were $61.6 million, an increase of $42.6 million compared to the end of 2009.
The Company will host a conference call today, February 15, 2011, at 9:30am ET. To participate, please dial in the US: 1-888-935-4575; or internationally: +972-3-721 9509 or 1 212 444 0412. A recording of the call will be available on Nova's website, within 24 hours following the end of the call. In addition, a presentation to accompany the conference call will be available together with a live webcast of the conference call. This will be accessible from a link on Nova's website at http://www.nova.co.il.
About Nova
Nova Measuring Instruments Ltd. develops, produces and markets advanced integrated and stand alone metrology solutions for the semiconductor manufacturing industry. Nova is traded on the NASDAQ & TASE under the symbol NVMI. The Company's website is http://www.nova.co.il.
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 trends, demand for our products, expected deliveries, transaction, expected revenues, operating results, earnings 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. These risks and other factors include but are not limited to: our dependency on two integrated process control product lines; the highly cyclical nature of the markets we target; 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 OEM suppliers; risks associated with our dependence on a single manufacturing facility; our ability to expand our manufacturing capacity or marketing efforts to support our future growth; our dependency on a small number of large customers and small number of suppliers; risks related to our intellectual property; changes in customer demands for our products; new product offerings from our competitors; changes in or an inability to execute our business strategy; unanticipated manufacturing or supply problems; changes in tax requirements; changes in customer demand for our products; risks related to currency fluctuations; 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 31,2009 filed with the Securities and Exchange Commission on March 26, 2010. 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.
CONSOLIDATED BALANCE SHEE
(U.S. dollars in thousands)
As of December 31,
2010 2009
CURRENT ASSETS
Cash and cash equivalents 25,394 9,861
Short-term interest-bearing bank deposits 35,562 8,607
Trade accounts receivable 13,162 11,545
Inventories 10,849 3,949
Other current assets 1,736 1,728
86,703 35,690
LONG-TERM ASSETS
Long-term interest-bearing bank deposits 631 561
Other Long-term assets 163 142
Severance pay funds 2,786 2,368
3,580 3,071
FIXED ASSETS, NET 3,094 2,163
TOTAL ASSETS 93,377 40,924
CURRENT LIABILITIES
Trade accounts payable 9,956 3,715
Deferred income 3,397 1,671
Other current liabilities 7,908 5,237
21,261 10,623
LONG-TERM LIABILITIES
Liability for employee severance pay 3,709 3,168
Deferred income -- 183
Other long-term liability 23 35
3,732 3,386
SHAREHOLDERS' EQUITY 68,384 26,915
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 93,377 40,924
NOVA MEASURING INSTRUMENTS LTD.
QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except per share data)
Three months ended
December 31, September 30, December 31,
2010 2010 2009
REVENUES
Products 22,650 20,350 12,646
Services 4,339 3,860 2,594
26,989 24,210 15,240
COST OF REVENUES
Product sales 8,842 8,182 5,399
Services 2,765 2,542 2,445
11,607 10,724 7,844
GROSS PROFIT 15,382 13,486 7,396
OPERATING EXPENSES
Research and Development
expenses, net 4,280 2,783 2,049
Sales and Marketing expenses 2,885 2,810 2,025
General and Administration
expenses 843 795 659
8,008 6,388 4,733
OPERATING PROFIT 7,374 7,098 2,663
Finance income, net 119 176 31
NET INCOME FOR THE PERIOD 7,493 7,274 2,694
Earnings per share:
Basic 0.30 0.29 0.14
Diluted 0.28 0.27 0.13
Shares used for calculation of
earnings per share:
Basic 25,248 25,008 19,717
Diluted 26,762 26,478 21,173
NOVA MEASURING INSTRUMENTS LTD.
YEAR TO DATE CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except per share data)
Year ended December 31,
2010 2009
REVENUES
Products 71,790 29,639
Services 14,830 9,679
86,620 39,318
COST OF REVENUES
Product sales 29,056 12,732
Services 10,148 8,999
39,204 21,731
GROSS PROFIT 47,416 17,587
OPERATING EXPENSES
Research and Development expenses, net 12,445 6,865
Sales and Marketing expenses 10,133 6,014
General and Administration expenses 2,968 2,240
25,546 15,119
OPERATING PROFIT 21,870 2,468
Finance income, net 305 163
NET INCOME FOR THE YEAR 22,175 2,631
Earnings per share:
Basic 0.91 0.14
Diluted 0.86 0.13
Shares used for calculation of earnings per
share:
Basic 24,448 19,473
Diluted 25,692 20,089
NOVA MEASURING INSTRUMENTS LTD.
QUARTERLY CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
Three months ended
December 31,September 30, December 31,
2010 2010 2009
CASH FLOW - OPERATING ACTIVITIES
Net income for the period 7,493 7,274 2,694
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation and amortization 259 354 347
Amortization of deferred stock-based
compensation 257 215 118
Decrease in liability for employee
termination benefits, net (35) (10) (187)
Increase in trade accounts receivables (639) (1,670) (5,943)
Decrease (increase) in inventories (1,339) (2,065) 749
Decrease (increase) in other current and
long term assets 1,620 (776) (555)
Increase in trade accounts payables
and other long-term liabilities 1,313 2,095 2,198
Increase in other current liabilities 978 1,738 1,769
Increase (decrease) in short and long
term deferred income (3,220) 746 913
Net cash provided by operating
activities 6,687 7,901 2,103
CASH FLOW - INVESTMENT ACTIVITIES
Decrease (increase) in short-term
interest-bearing bank deposits 7,666 (3,934) (8,560)
Investments in long-term
interest-bearing bank deposits (61) -- (36)
Additions to fixed assets (400) (453) (303)
Net cash provided by (used in)
investment activities 7,205 (4,387) (8,899)
CASH FLOW - FINANCING ACTIVITIES
Shares issued under employee share-based
plans 525 625 1,111
Net cash provided by financing
activities 525 625 1,111
Increase (decrease) in cash and cash
equivalents 14,417 4,139 (5,685)
Cash and cash equivalents - beginning of
period 10,977 6,838 15,546
Cash and cash equivalents - end of
period 25,394 10,977 9,861
NOVA MEASURING INSTRUMENTS LTD.
YEAR TO DATE CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
Year ended December
31,
2010 2009
CASH FLOW - OPERATING ACTIVITIES
Net income for the year 22,175 2,631
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Depreciation and amortization 1,260 1,254
Amortization of deferred stock-based compensation 710 454
Increase (decrease) in liability for employee
Termination benefits, net 108 (159)
Increase in trade accounts receivables (1,617) (8,762)
Decrease (increase) in inventories (7,526) 2,695
Decrease (increase) in other current and long term
assets 197 (421)
Increase in trade accounts payables and other
long term liabilities 6,242 234
Increase in other current liabilities 2,740 1,169
Increase (decrease) in short and long term
deferred income 1,543 (882)
Net cash provided by (used in) operating
activities 25,832 (1,787)
CASH FLOW - INVESTMENT ACTIVITIES
Increase in short-term interest-bearing bank
deposits (26,955) (8,510)
Investments in long-term interest-bearing bank
deposits and long-term investments (70) (17)
Additions to fixed assets (1,565) (403)
Net cash used in investment activities (28,590) (8,930)
CASH FLOW - FINANCING ACTIVITIES
Shares issued in a public offering 16,968 --
Shares issued under employee share-based plans 1,323 1,253
Net cash provided by financing activities 18,291 1,253
Increase (decrease) in cash and cash equivalents 15,533 (9,464)
Cash and cash equivalents - beginning of year 9,861 19,325
Cash and cash equivalents - end of year 25,394 9,861
Company Contact: Investor relations Contacts:
Dror David, Chief Financial Officer Ehud Helft / Kenny Green
Nova Measuring Instruments Ltd. CCG Investor Relations
Tel: +972-8-938-7505 Tel: +1-646-201-9246
E-mail: [email protected] E-mail: [email protected]
http://www.nova.co.il
SOURCE Nova Measuring Instruments Ltd
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