Nova Announces 2009 Second Quarter Results
REHOVOT,
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 2009 second quarter
financial results.
Highlights for the Second Quarter of 2009
- Total revenues of $7 million, up 22% sequentially
- Gross margins of 41%, up from 33% in the first quarter of 2009,
resulting from improved services gross margins
- Breakeven Non-GAAP net results; GAAP net loss of $0.1 million
- Significant market share gains and all time record bookings for the
Stand Alone Optical CD product line
2009 Second Quarter Results
Total revenues for the second quarter of 2009 were
decrease of 37% relative to the second quarter of 2008, and an increase of
22% relative to the first quarter of 2009.
Gross margin for the second quarter of 2009 was 41%, compared with 39% in
the second quarter of 2008 and 33% in the first quarter of 2009.
Operating expenses in the second quarter of 2009 were
compared with
the first quarter of 2009.
On a GAAP basis, the company reported a net loss of
second quarter of 2009. This compares to a net loss of
per share, for the second quarter of 2008, and a net loss of
On a non-GAAP basis, which excludes stock-based compensation and
impairment charges, the company reported breakeven results for the second
quarter of 2009. This compares with a non-GAAP net loss of
The company used
quarter of 2009, mostly related to an increase in accounts receivables due to
the increase in revenues. Total cash reserves at the end of the second
quarter of 2009 were
Management Comments
“By all measures, second quarter results showed excellent improvement,”
said
in business volumes and improved order patterns will enable us to show
significant improvement in our financial performance in the second half of
the year”.
“Continued market share gains in both the Stand Alone Optical CD and the
IM Copper CMP segments, combined with our effective cost control measures,
enabled us to increase revenues and reach breakeven results for the quarter.
Looking forward, sales of both our Integrated and Stand Alone solutions are
well-positioned for further growth, because they enable cost-effective
migration to lower technology nodes, while still using existing process
equipment”.
The Company will host a conference call today,
ET
internationally: +972-3-918-0610. A recording of the call will be available
on Nova’s website, within 24 hours following the end of the call.
In addition, the conference call will also be webcast live from a link on
Nova’s website at http://www.nova.co.il.
This press release provides financial measures that exclude non-cash
charges for stock-based compensation, amortization of intangibles and
impairment charges 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 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.
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: unanticipated consequences of the global economic
crisis, our dependency on a single integrated process control product line;
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; 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
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
Securities and Exchange Commission on
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 June 30 As of December 31,
2009 2008
CURRENT ASSETS
Cash and cash equivalents 9,017 19,325
Short-term interest-bearing bank
deposits 46 97
Short-term investments 4,599 --
Trade accounts receivable 4,980 2,783
Inventories 5,505 6,862
Other current assets 1,301 1,086
25,448 30,153
LONG-TERM ASSETS
Long-term interest-bearing bank
deposits 524 544
Other Long-term assets 126 157
Severance pay funds 2,140 2,141
2,790 2,842
FIXED ASSETS, NET 2,429 2,796
Total assets 30,667 35,791
CURRENT LIABILITIES
Trade accounts payable 2,178 3,480
Deferred income 1,611 2,385
Other current liabilities 2,494 4,042
6,283 9,907
LONG-TERM LIABILITIES
Liability for employee severance pay 3,114 3,152
Deferred income 187 351
Other long-term liability 40 40
3,341 3,543
SHAREHOLDERS' EQUITY 21,043 22,341
Total liabilities and shareholders'
equity 30,667 35,791
NOVA MEASURING INSTRUMENTS LTD.
QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except per share data)
Three months ended
June 30, March 31, June 30,
2009 2009 2008
REVENUES
Product sales 4,631 3,645 7,496
Services 2,333 2,075 3,594
6,964 5,720 11,090
COST OF REVENUES
Product sales 2,050 1,582 3,524
Services 2,091 2,274 3,250
4,141 3,856 6,774
GROSS PROFIT 2,823 1,864 4,316
OPERATING EXPENSES
Research & Development 1,183 1,783 2,177
expenses, net
Sales & Marketing expenses 1,293 1,173 2,042
General & Administration 484 503 797
expenses
Impairment loss on equipment
related to Hypernex assets
and liabilities acquisition -- -- 633
2,960 3,459 5,649
OPERATING LOSS (137) (1,595) (1,333)
INTEREST INCOME (EXPENSES), NET 43 (64) 66
NET LOSS FOR THE PERIOD (94) (1,659) (1,267)
Basic net loss per share (0.00) (0.09) (0.07)
Shares used for calculation
of basic net loss per share 19,378 19,378 19,378
NOVA MEASURING INSTRUMENTS LTD.
YEAR TO DATE CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except per share data)
Six-months ended
June 30, 2009 June 30, 2008
REVENUES
Product sales 8,276 17,110
Services 4,408 6,791
12,684 23,901
COST OF REVENUES
Product sales 3,632 8,012
Services 4,365 6,407
7,997 14,419
GROSS PROFIT 4,687 9,482
OPERATING EXPENSES
Research & Development expenses,
net 2,966 4,082
Sales & Marketing expenses 2,466 4,482
General & Administration
expenses 987 1,701
Impairment loss on equipment
related to Hypernex assets and
liabilities acquisition -- 633
6,419 10,898
OPERATING LOSS (1,732) (1,416)
INTEREST INCOME (EXPENSES), NET (21) 190
NET LOSS FOR THE PERIOD (1,753) (1,226)
Basic net loss per share (0.09) (0.06)
Shares used for calculation
of basic net loss per share 19,378 19,356
NOVA MEASURING INSTRUMENTS LTD.
QUARTERLY CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
Three months ended
June 30, March 31, June 30,
2009 2009 2008
CASH FLOW - OPERATING ACTIVITIES
Net loss for the period (94) (1,659) (1,267)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization 276 320 315
Amortization of deferred stock-based
compensation 100 106 155
Increase (decrease) in liability for
Employee termination benefits, net 144 (114) 68
Impairment loss on equipment -- -- 633
Net recognized losses (gains) on
investments (4) -- 2
Decrease (increase) in trade accounts
receivables (2,441) 244 3,331
Decrease in inventories 636 520 228
Decrease (increase) in other current
and long term assets (608) 697 758
Decrease in trade accounts payables (102) (1,200) (2,415)
Decrease in current liabilities (2) (1,637) (974)
Increase (decrease) in short and long
term deferred income (44) (894) 722
Net cash from (used in) operating
Activities (2,139) (3,617) 1,557
CASH FLOW - INVESTMENT ACTIVITIES
Decrease (increase) in short-term
interest-bearing bank deposits -- 50 (72)
Increase in short-term investments -- (4,595) --
Proceeds from held to maturity securities -- -- 11,068
Proceeds (investments) in long-term
Deposits 141 (120) 696
Investment in held to maturity securities -- -- (9,654)
Additions to fixed assets (24) (4) (183)
Net cash from (used in) investment
activities 117 (4,669) 1,855
CASH FLOW - FINANCING ACTIVITIES -- -- --
Increase (decrease) in cash and cash
equivalents (2,022) (8,286) 3,412
Cash and cash equivalents - beginning of
period 11,039 19,325 10,332
Cash and cash equivalents - end of period 9,017 11,039 13,744
NOVA MEASURING INSTRUMENTS LTD.
YEAR TO DATE CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
Six months ended
June 30, 2009 June 30, 2008
CASH FLOW - OPERATING ACTIVITIES
Net loss for the period
Adjustments to reconcile net loss to net
cash used in operating activities: (1,753) (1,226)
Depreciation and amortization 596 682
Amortization of deferred stock-based
Compensation 206 319
Increase in liability for employee
termination benefits, net 30 127
Impairment loss on equipment -- 633
Net recognized losses (gains) on
investments (4) 13
Decrease (increase) in trade accounts
Receivables (2,197) 4,106
Decrease (increase) in inventories 1,156 (1,131)
Decrease (increase) in other current
and long term assets 89 (107)
Decrease in trade accounts payables
and other long term liabilities (1,302) (3,067)
Decrease in current liabilities (1,639) (1,199)
Increase (decrease) in short and
long term deferred income (938) 553
Net cash used in operating activities (5,756) (297)
CASH FLOW - INVESTMENT ACTIVITIES
Decrease (increase) in short-term
interest-bearing bank deposits 50 (72)
Increase in short-term investments (4,595) --
Proceeds from held to maturity
securities -- 13,273
Proceeds from long-term deposits 21 1,634
Investment in held to maturity
securities -- (15,390)
Additions to fixed assets (28) (740)
Net cash used in investment activities (4,552) (1,295)
CASH FLOW - FINANCING ACTIVITIES
Shares issued in private placement -- --
Shares issued under employee
share-based plans -- 12
Net cash from financing activities -- 12
Decrease in cash and cash equivalents (10,308) (1,580)
Cash and cash equivalents -
beginning of period 19,325 15,324
Cash and cash equivalents -
end of period 9,017 13,744
NOVA MEASURING INSTRUMENTS LTD.
DISCLOSURE OF NON-GAAP NET INCOME (LOSS)
(U.S. dollars in thousands, except per share data)
Three months ended
June 30, March 31, June 30,
2009 2009 2008
GAAP Net income loss for the period (94) (1,659) (1,267)
Non-GAAP Adjustments:
Stock based compensation expenses 100 106 155
Impairment loss on equipment related
to Hypernex assets and liabilities
acquisition -- -- 633
Non-GAAP Net income (loss)
for the period 6 (1,553) (479)
Non-GAAP net income (loss)
per share:
Basic 0.00 (0.08) (0.02)
Diluted 0.00
Shares used for calculation
of non-GAAP net income (loss)
per share:
Basic 19,378 19,378 19,378
Diluted 19,715
Six months ended
June 30, June 30,
2009 2008
GAAP Net loss for the period (1,753) (1,226)
Non-GAAP Adjustments:
Stock based compensation expenses 206 319
Impairment loss on equipment related to
Hypernex assets and liabilities
acquisition -- 633
Non-GAAP Net loss for the period (1,547) (274)
Non-GAAP basic net loss per share: (0.08) (0.01)
Shares used for calculation of non-GAAP
basic net loss per share 19,378 19,356
http://www.nova.co.il
Company Contact:
Dror David, Chief Financial Officer
Tel: 972-8-938-7505
E-mail: info@nova.co.il
Investor relations Contacts:
Ehud Helft / Kenny Green
Nova Measuring Instruments Ltd. GK Investor Relations
Tel: +1-646-201-9246
E-mail: info@gkir.com
SOURCE Nova Measuring Instruments Ltd