REHOVOT, Israel, November 1, 2011 /PRNewswire/ --
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 2011 third quarter results.
Highlights for the Third Quarter of 2011
- Quarterly revenues of $25.8 million, up 7% year over year
- Gross margin of 55%
- Net margin of 23%
- Quarterly net income of $5.9 million, or $0.22 per diluted share
- Positive cash flow from operating activities of $5.9 million
- Total cash reserves reached a record level of $83.7 million
Management Comments
"During the third quarter we continued to demonstrate solid financial performance with significant net income and positive cash flow, and the stage is now set for our full year results to show record revenue levels of around $100 million," said Gabi Seligsohn, President and CEO of Nova. "This achievement, combined with excellent profitability and positive cash flow, is a direct result of our technology leadership and market share gains built over the last several years."
"The pace of business during the second half of 2011 is slow and the macro-economic concerns are weighing on our customers' spending. Short term visibility at this time is also very limited. Under these circumstances, the transition to next generation design rules of below 30nm has been slower than originally expected in foundry and memory segments, and several projects have been delayed. However, in light of end-user market demand and ongoing announcements of new mobile devices, the transition cannot be held off much longer, and our leading customers are already preparing limited capacity to deal with these requirements."
"Through continued close collaboration with our customers and the introduction of new products and capabilities, we have already been supplying tools to several of these next generation manufacturing and development processes, securing our ability to participate in their ramp up when the general economic status improves. We plan to continue and cultivate these collaborations as they are the key to securing our long term growth plans".
2011 Fourth Quarter Guidance
For the fourth quarter of 2011, management expects revenues of $16-$19 million, with net profitability of 1%-8%.
In terms of the company's 2011 annual results, this guidance implies record annual revenues of $100M-$103M and record annual net income of $23M-$25M.
2011 Third Quarter Results
Total revenues for the third quarter of 2011 were $25.8 million, an increase of 7% relative to the third quarter of 2010, and a decrease of 13% relative to the second quarter of 2011.
Gross margin for the third quarter of 2011 was 55%, compared with 56% in the third quarter of 2010 and 58% in the second quarter of 2011.
Operating expenses in the third quarter of 2011 were $8.4 million, compared with $6.4 million in the third quarter of 2010 and $8.2 million in the second quarter of 2011.
The company reported net income of $5.9 million, or $0.22 per diluted share, in the third quarter of 2011. This compares to a net income of $7.3 million, or $0.27 per diluted share, in the third quarter of 2010, and a net income of $9.2 million, or $0.34 per diluted share, in the second quarter of 2011.
The company generated $5.9 million in cash from operating activities during the third quarter of 2011. Total cash reserves at the end of the third quarter of 2011 were $83.7 million.
The Company will host a conference call today, November 1, 2011, at 9:00am ET. To participate, please dial in the US: 1 866 564 0425; or internationally: +972-3-721 7906 / +1 646 254 3374. 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 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; our ability to retain our competitive position despite the ongoing consolidation in our industry; 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; our dependency on our key employees; risks related to changes in our order backlog; risks related to the financial, political and environmental instabilities in Asia; 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 31,2010 filed with the Securities and Exchange Commission on March 30, 2011. 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.
CONSOLIDATED BALANCE SHEET
(U.S. dollars in thousands)
As of September 30, As of December 31, ___________________ __________________ 2011 2010 ___________________ __________________ CURRENT ASSETS Cash and cash equivalents 7,682 25,394 Short-term interest-bearing bank deposits 74,291 35,562 Held to maturity securities 1,100 -- Trade accounts receivable 12,121 13,162 Inventories 11,370 10,849 Other current assets 1,237 1,736 _______ ______ 107,801 86,703 _______ ______ LONG-TERM ASSETS Long-term interest-bearing bank deposits 631 631 Other Long-term assets 311 163 Severance pay funds 2,970 2,786 _______ ______ 3,912 3,580 _______ ______ FIXED ASSETS, NET 5,099 3,094 _______ ______ Total assets 116,812 93,377 ======= ====== CURRENT LIABILITIES Trade accounts payable 7,985 9,956 Deferred income 2,247 3,397 Other current liabilities 7,451 7,908 _______ ______ 17,683 21,261 _______ ______ LONG-TERM LIABILITIES Liability for employee severance pay 3,996 3,709 Deferred income 823 - Other long-term liability 14 23 _______ ______ 4,833 3,732 _______ ______ SHAREHOLDERS' EQUITY 94,296 68,384 _______ ______ Total liabilities and shareholders' equity 116,812 93,377 ======= ======
NOVA MEASURING INSTRUMENTS LTD.
QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except per share data)
Three months ended __________________ September June September 30, 30, 30, 2011 2011 2010 _________ ________ _________ REVENUES Product sales 21,382 24,989 20,350 Services 4,438 4,658 3,860 _________ ________ _________ 25,820 29,647 24,210 _________ ________ _________ COST OF REVENUES Products 8,921 9,698 8,182 Services 2,782 2,833 2,542 _________ ________ _________ 11,703 12,531 10,724 --------- -------- --------- GROSS PROFIT 14,117 17,116 13,486 _________ ________ _________ OPERATING EXPENSES Research & Development expenses, net 4,627 4,516 2,783 Sales & Marketing expenses 2,933 2,778 2,810 General & Administration expenses 809 945 795 _________ ________ _________ 8,369 8,239 6,388 _________ ________ _________ OPERATING PROFIT 5,748 8,877 7,098 INTEREST INCOME, NET 189 286 176 _________ ________ _________ NET INCOME FOR THE PERIOD 5,937 9,163 7,274 ========= ======== ========= Net income per share: Basic 0.23 0.35 0.29 ========= ======== ========= Diluted 0.22 0.34 0.27 ========= ======== ========= Shares used for calculation of net income per share: Basic 26,334 26,250 25,008 ========= ======== ========= Diluted 27,079 27,176 26,478 ========= ======== =========
NOVA MEASURING INSTRUMENTS LTD.
YEAR TO DATE CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except per share data)
Nine-months ended September 30, 2011 September 30, 2010 __________________ __________________ REVENUES Product sales 70,289 49,140 Services 13,347 10,491 ______ ______ 83,636 59,631 ------ ------ COST OF REVENUES Product sales 27,817 20,214 Services 8,350 7,383 ______ ______ 36,167 27,597 ______ ______ GROSS PROFIT 47,469 32,034 ______ ______ OPERATING EXPENSES Research & Development expenses, net 14,110 8,165 Sales & Marketing expenses 8,422 7,248 General & Administration expenses 2,483 2,125 ______ ______ 25,015 17,538 ______ ______ OPERATING PROFIT 22,454 14,496 INTEREST INCOME, NET 694 186 ______ ______ NET INCOME FOR THE PERIOD 23,148 14,682 ______ ______ Net income per share: Basic 0.88 0.61 ______ ______ Diluted 0.86 0.57 ______ ______ Shares used for calculation of net income per share: Basic 26,182 24,182 _______ _______ Diluted 27,010 25,540 _______ _______
NOVA MEASURING INSTRUMENTS LTD.
QUARTERLY CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
Three months ended __________________ September 30, June 30, September 30, ____________ __________ _____________ 2011 2011 2010 ____ ____ ____ CASH FLOW - OPERATING ACTIVITIES Net income for the period 5,937 9,163 7,274 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 420 377 354 Amortization of deferred stock-based compensation 421 272 215 Increase (decrease) in liability for employee termination benefits, net (94) 203 (10) Decrease (increase) in trade accounts receivables 7,554 (4,835) (1,670) Decrease (increase) in inventories 1,499 (2,240) (2,065) Decrease (increase) in other short and long term assets 726 (33) (776) Increase (decrease) in trade accounts payables and other long term liabilities (3,967) (667) 2,095 Increase (decrease) in other current liabilities (642) (502) 1,738 Increase (decrease) in short and long term deferred income (5,966) 5,266 746 _______ _______ _______ Net cash provided by operating activities 5,888 7,004 7,901 ------- ------- ------- CASH FLOW - INVESTMENT ACTIVITIES Increase in short-term interest-bearing bank deposits (9,000) (9,426) (3,934) Increase (decrease) in short term held to maturity securities 86 (1,186) -- Additions to fixed assets (460) (539) (453) _______ ________ _______ Net cash used in investment activities (9,374) (11,151) (4,387) ------- -------- ------- CASH FLOW - FINANCING ACTIVITIES Shares issued under employee share-based plans 104 225 625 _______ _______ _______ Net cash provided by financing activities 104 225 625 ------- ------- ------- Increase (decrease) in cash and cash equivalents (3,382) (3,922) 4,139 Cash and cash equivalents - beginning of period 11,064 14,986 6,838 _______ _______ _______ Cash and cash equivalents - end of period 7,682 11,064 10,977 ======= ======= =======
NOVA MEASURING INSTRUMENTS LTD.
YEAR TO DATE CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
Nine months ended __________________ September 30, 2011 September 30, 2010 __________________ __________________ CASH FLOW - OPERATING ACTIVITIES Net income for the period 23,148 14,682 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 1,159 1,001 Amortization of deferred stock-based compensation 959 453 Increase in liability for employee termination benefits, net 103 143 Decrease (increase) in trade accounts receivables 1,041 (978) Increase in inventories (2,010) (6,187) Increase in other short and long term assets (390) (1,423) Increase (decrease) in trade accounts payables and other long term liabilities (1,971) 4,929 Increase (decrease) in current liabilities (466) 1,762 Increase (decrease) in short and long term deferred income (327) 4,763 _______ ______ Net cash provided by operating activities 21,246 19,145 ------- ------ CASH FLOW - INVESTMENT ACTIVITIES Increase in short-term interest-bearing bank deposits (38,729) (34,621) Investment in short term held to maturity securities (1,100) -- Investment in long-term deposits -- (9) Additions to fixed assets (1,675) (1,165) ________ ________ Net cash used in investment activities (41,504) (35,795) -------- -------- CASH FLOW - FINANCING ACTIVITIES Shares issued under employee share-based plans and exercise of warrants 2,546 798 Shares issued in public offering -- 16,968 ________ ________ Net cash provided by financing activities 2,546 17,766 -------- -------- Increase (decrease) in cash and cash equivalents (17,712) 1,116 Cash and cash equivalents - beginning of period 25,394 9,861 ________ ________ Cash and cash equivalents - end of period 7,682 10,977 ======== ========
Company Contact:
Dror David, Chief Financial Officer
Nova Measuring Instruments Ltd.
Tel: 972-8-938-7505
E-mail: [email protected]
http://www.nova.co.il
Investor relations Contacts:
Ehud Helft / Kenny Green
CCG Investor Relations
Tel: +1-646-201-9246
E-mail: [email protected]
SOURCE Nova Measuring Instruments Ltd
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