zk1312668.htm


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF 
THE SECURITIES EXCHANGE ACT OF 1934
 
February 19, 2013
 
Commission File No.: 000-30688
 
NOVA MEASURING INSTRUMENTS LTD.
(Translation of registrant’s name into English)

Building 22 Weizmann Science Park, Rehovot
P.O.B 266
Israel
 (Address of principal executive offices)
 
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. 

Form 20-F S    Form 40-F £
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____ 
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____ 
 
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. 

Yes £    No S

Attached hereto is a press release issued by the Registrant and entitled: “Nova Announces 2012 Fourth Quarter and Full Year Results”.

The financial statements tables included in the press release (pages 5-9 of the press release) are hereby incorporated by reference into the Registrant’s registration statements on Form S-8, filed with the Securities and Exchange Commission on the following dates: December 29, 2005 (File No. 333-130745); November 5, 2007 (File No. 333-147140) and October 25, 2012 (File No. 333-184585).

SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. 

 
 
 
Date: February 19, 2013
 
NOVA MEASURING INSTRUMENTS LTD.
(Registrant)
 
By: /s/ Dror David
——————————————
Dror David
Chief Financial Officer

 
 

 

 
Company Contact:    
Dror David, Chief Financial Officer 
Nova Measuring Instruments Ltd.    
Tel: 972-73-229-5833      
E-mail: info@novameasuring.com   
http://www.novameasuring.com
Investor Relations Contacts:
Ehud Helft / Kenny Green
CCG Investor Relations
Tel: +1-646-201-9246
E-mail: nova@ccgisrael.com
 
Company Press Release
 
NOVA ANNOUNCES 2012 FOURTH QUARTER
AND FULL YEAR RESULTS

Rehovot, Israel – February 19, 2013 - 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 2012 fourth quarter and full year results.
 
Highlights for the Fourth Quarter of 2012
 
 
·
Quarterly revenues of $22.1 million
 
 
·
Gross margin of 50%
 
 
·
GAAP Net income of $2.5 million, or $0.09 per diluted share
 
 
·
Non-GAAP Net income of $1.0 million, or $0.04 per diluted share
 
Highlights for the Full Year of 2012
 
 
·
Annual revenues of $96.2 million
 
 
·
Gross margin of 53%
 
 
·
GAAP Net income of $11.8 million, or $0.43 per diluted share
 
 
·
Non-GAAP Net income of $14.2 million, or $0.52 per diluted share
 
Management Comments
 
“Results for the fourth quarter were at the high end of our revenues guidance range and we were able to capitalize on improving demand late in the quarter,” commented Gabi Seligsohn, President and CEO of Nova. “Despite the weakness during most of the second half of the year, we managed to generate positive operating cash flow in 2012. We achieved this even after stepping up our investment in research and development, and we ended the year with over $90 million in cash reserves. Our ability to invest ahead of important technology transitions continues to be an important element of our long-term strategy. Past investment, followed by multiple new products and strong execution, has enabled us to significantly outperform the industry during 2012.” 
 
 
 
1

 
 
“With foundry demand returning toward the end of Q4, our bookings increased and we ended the year with a significant improvement in our backlog, providing strong momentum as we enter 2013.  Demand for memory remains weak, but continues to represent future upside potential. As expected, we are benefitting from the need for additional foundry capacity and yield improvements at 28nm, augmented by plans for ramping at the 20nm technology node soon. Process control requirements will continue to increase as process nodes shrink. We believe that optical metrology will continue to account for a higher share of overall capital expenditures, increasing our available market. Continuing our close collaboration with process equipment manufacturers and end customers, we are focused on increasing our footprint within each fab, expanding our customer base, and growing in exciting new market segments such as 3D interconnect technology. Coupled with continued reinvestment in next generation projects, these are the primary elements of our strategy for achieving sustainable long term growth.”
 
Nova will discuss the results for its fiscal year 2012, along with its outlook and guidance for the first quarter of 2013, on a conference call today, February 19, 2013, beginning at 5:00pm ET. A webcast of the call will be available at: http://ir.novameasuring.com.
 
2012 Fourth Quarter Results
 
Total revenues for the fourth quarter of 2012 were $22.1 million, an increase of 15% relative to the fourth quarter of 2011, and a decrease of 10% relative to the third quarter of 2012.
 
Gross margin for the fourth quarter of 2012 was 50%, compared with 55% in the fourth quarter of 2011 and 53% in the third quarter of 2012.
 
Operating expenses in the fourth quarter of 2012 were $11.4 million, compared with $8.3 million in the fourth quarter of 2011 and $9.9 million in the third quarter of 2012.
 
On a GAAP basis, the company reported net income of $2.5 million, or $0.09 per diluted share, in the fourth quarter of 2012. This compares to a net income of $5.0 million, or $0.18 per diluted share, in the fourth quarter of 2011, and a net income of $2.9 million, or $0.11 per diluted share, in the third quarter of 2012.
 
On a Non-GAAP basis, which excludes adjustments related to tax assets, stock based compensation expenses and loss related to equipment and inventory damage, the company reported net income of $1.0 million, or $0.04 per diluted share, in the fourth quarter of 2012. This compares to a net income of $3.0 million, or $0.11 per diluted share, in the fourth quarter of 2011, and a net income of $3.7 million, or $0.14 per diluted share, in the third quarter of 2012.
 
Total cash reserves at the end of the fourth quarter of 2012 were $91.4 million.
 
 
2

 

2012 Full Year Results
 
Total revenues for 2012 were $96.2 million, compared to total revenues of $102.8 million for 2011.
 
Gross margin in 2012 was 53%, compared to 56% in 2011.
 
Operating expenses in 2012 were $40.6 million, compared to $33.3 million in 2011.
 
On a GAAP basis, the company reported net income of $11.8 million in 2012, or $0.43 per diluted share. This compares to a net income of $28.1 million, or $1.04 per diluted share, in 2011.
 
On a Non-GAAP basis, which excludes adjustments related to tax assets, stock based compensation expenses and loss related to equipment and inventory damage, the company reported net income $14.2 million in 2012, or $0.52 per diluted share. This compares to a net income of $27.1 million, or $1.00 per diluted share, in 2011.
 
During 2012, the company generated $7.7 million in cash flow from operating activities, as compared to $25.1 million cash flow generated from operating activities in 2011.
 
Total cash reserves at the end of 2012 were $91.4 million, compared to $87.1 million at the end of 2011.
 
Conference call details
 
To attend the conference call today, February 19, 2013, at 5:00pm ET, please dial in the US: 1 877 249 9037; or internationally +972 3 763 0145 or +1 212 444 0481.
 
To attend the conference call in Hebrew, on February 20, 2013, at 11:00am Israel Time, please dial +972 3 918 0609.
 
Both of the Nova financial results conference calls will be webcast live from a link on Nova’s website at http://ir.novameasuring.com, together with a presentation to accompany the conference calls.
 
For those unable to participate in the conference calls, there will be replays available from the same links.
 
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 www.novameasuring.com.

This press release provides financial measures that exclude non-cash charges for stock-based compensation, loss related to equipment and inventory damage as well as adjustments related to tax assets 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.


 
3

 
 
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; cyber security risks; risks related to open source technologies; 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, 2011 filed with the Securities and Exchange Commission on March 28, 2012. 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)
 
 
4

 
 
NOVA MEASURING INSTRUMENTS LTD.
CONSOLIDATED BALANCE SHEET
(U.S. dollars in thousands)

   
As of
December 31,
   
As of
December 31,
 
   
2012
   
2011
 
             
CURRENT ASSETS
           
Cash and cash equivalents
    15,963       18,716  
Short-term interest-bearing bank deposits
    75,039       66,247  
Held to maturity securities
    --       1,582  
Trade accounts receivable
    17,362       13,402  
Inventories
    17,827       9,608  
Deferred income tax assets
    1,850       2,500  
Other current assets
    2,549       1,173  
      130,590       113,228  
LONG-TERM ASSETS
               
Long-term interest-bearing bank deposits
    405       545  
Other long-term assets
    516       291  
Severance pay funds
    1,873       2,885  
      2,794       3,721  
                 
FIXED ASSETS, NET
    8,660       5,998  
                 
TOTAL ASSETS
    142,044       122,947  
                 
CURRENT LIABILITIES
               
Trade accounts payable
    10,819       8,305  
Deferred income
    4,775       2,172  
Other current liabilities
    8,444       8,082  
      24,038       18,559  
                 
LONG-TERM LIABILITIES
               
Liability for employee severance pay
    2,806       3,851  
Deferred income
    159       611  
Other long-term liability
    270       20  
      3,235       4,482  
                 
SHAREHOLDERS' EQUITY
    114,771       99,906  
                 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
    142,044       122,947  
 
 
5

 
 
NOVA MEASURING INSTRUMENTS LTD.
QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS
 (U.S. dollars in thousands, except per share data)

   
Three months ended
 
   
December 31,
2012
   
September 30,
2012
   
December 31,
 2011
 
       
REVENUES
                 
Products
    17,016       19,359       15,273  
Services
    5,082       5,059       3,919  
      22,098       24,418       19,192  
                         
COST OF REVENUES
                       
Products
    7,390       7,999       5,972  
Services
    3,644       3,483       2,693  
      11,034       11,482       8,665  
                         
GROSS PROFIT
    11,064       12,936       10,527  
                         
OPERATING EXPENSES
                       
Research and Development expenses, net
    7,117       6,003       4,567  
Sales and Marketing expenses
    3,102       2,967       2,951  
General and Administration expenses
    1,191       973       746  
      11,410       9,943       8,264  
                         
OPERATING PROFIT (LOSS)
    (346 )     2,993       2,263  
                         
INTEREST INCOME, NET
    337       283       207  
                         
INCOME (LOSS) BEFORE INCOME TAXES
    (9 )     3,276       2,470  
                         
       INCOME TAX BENEFIT (EXPENSES)
    2,481       (381 )     2,500  
                         
NET INCOME FOR THE PERIOD
    2,472       2,895       4,970  
                         
Earnings per share:
                       
Basic
    0.09       0.11       0.19  
Diluted
    0.09       0.11       0.18  
                         
Shares used for calculation of earnings per share:
                       
Basic
    26,679       26,646       26,425  
Diluted
    27,317       27,485       27,007  

 
6

 

NOVA MEASURING INSTRUMENTS LTD.
ANNUAL CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except per share data)

   
Year ended
 
   
December 31, 2012
   
December 31, 2011
 
       
REVENUES
           
Products
    77,212       85,562  
Services
    18,956       17,266  
      96,168       102,828  
                 
COST OF REVENUES
               
Products
    31,734       33,789  
Services
    13,280       11,043  
      45,014       44,832  
                 
GROSS PROFIT
    51,154       57,996  
                 
OPERATING EXPENSES
               
Research & Development expenses, net
    24,594       18,677  
Sales & Marketing expenses
    11,998       11,373  
General & Administration expenses
    3,978       3,229  
      40,570       33,279  
                 
OPERATING PROFIT
    10,584       24,717  
                 
    INTEREST INCOME, NET
    1,368       901  
                 
INCOME BEFORE INCOME TAXES
    11,952       25,618  
                 
    INCOME TAX BENEFIT (EXPENSES)
    (124 )     2,500  
                 
NET INCOME FOR THE PERIOD
    11,828       28,118  
                 
Net income per share:
               
Basic
    0.44       1.07  
Diluted
    0.43       1.04  
                 
Shares used for calculation of net income per share:
               
Basic
    26,619       26,232  
Diluted
    27,277       26,931  

 
7

 

NOVA MEASURING INSTRUMENTS LTD.
QUARTERLY CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
 
   
Three months ended
 
   
December 31,
2012
   
September 30,
2012
   
December 31,
2011
 
CASH FLOW – OPERATING ACTIVITIES
                 
                   
Net income for the period
    2,472       2,895       4,970  
       Adjustments to reconcile net income to net cash provided by operating activities:
                       
                         
Depreciation and amortization
    858       771       541  
Loss related to equipment and inventory damage
    509       -       -  
Amortization of deferred stock-based compensation
    609       489       476  
Increase (decrease) in liability for employee termination benefits, net
    104       (80 )     (60 )
Decrease (increase) in deferred income tax assets, net
    (1,806 )     349       (2,500 )
Decrease (increase) in trade accounts receivables
    (2,461 )     2,619       (1,281 )
Decrease (increase) in inventories
    143       (3,770 )     954  
Decrease (increase) in other current and long term Assets
    250       (64 )     85  
Increase (decrease) in trade accounts payables and other long-term liabilities
    (2,392 )     (5 )     332  
Increase in other current liabilities
    414       485       625  
Increase (decrease) in short and long term deferred income
    207       572       (287 )
Net cash provided by (used in) operating activities
    (1,093 )     4,261       3,855  
                         
CASH FLOW – INVESTMENT ACTIVITIES
                       
                         
Decrease (increase) in short-term interest-bearing bank deposits
    (18,110 )     11,100       8,044  
Decrease in long-term interest-bearing bank deposits
    140       -       86  
Proceeds from (investments in) short-term held to maturity securities
    1,554       (5 )     (482 )
Additions to fixed assets
    (1,512 )     (896 )     (632 )
Net cash provided by (used in) investment activities
    (17,928 )     10,199       7,016  
                         
CASH FLOW – FINANCING ACTIVITIES
                       
                         
Shares issued under employee share-based plans
    12       104       163  
Net cash provided by financing activities
    12       104       163  
                         
Increase (decrease) in cash and cash equivalents
    (19,009 )     14,564       11,034  
Cash and cash equivalents – beginning of period
    34,972       20,408       7,682  
Cash and cash equivalents – end of period
    15,963       34,972       18,716  

 
8

 
 
NOVA MEASURING INSTRUMENTS LTD.
ANNAUL CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)

   
Year ended
 
   
December 31, 2012
   
December 31, 2011
 
CASH FLOW – OPERATING ACTIVITIES
           
             
Net income for the period
    11,828       28,118  
Adjustments to reconcile net income to net cash provided by operating activities:
               
                 
Depreciation and amortization
    2,783       1,700  
        Loss related to equipment and inventory damage
    509       -  
Amortization of deferred stock-based  compensation
    1,927       1,435  
Increase (decrease) in liability for employee termination benefits, net
    (27 )     43  
         Decrease (increase) in deferred income tax assets, net
    694       (2,500 )
  Increase in trade accounts receivables
    (3,960 )     (240 )
Increase in inventories
    (10,513 )     (1,056 )
Increase in other current and long term assets
    (467 )     (305 )
                Increase (decrease) in trade accounts payables and other long term liabilities
    2,510       (1,639 )
Increase in other current liabilities
    283       159  
Increase (decrease) in short and long term deferred income
    2,151       (614 )
Net cash provided by operating activities
    7,718       25,101  
                 
CASH FLOW – INVESTMENT ACTIVITIES
               
                 
Increase in short-term interest-bearing bank deposits
    (8,792 )     (30,685 )
Decrease in long-term interest-bearing bank deposits
    140       86  
Proceeds from (investments in) short-term held to maturity securities
    1,582       (1,582 )
Additions to fixed assets
    (3,660 )     (2,307 )
Net cash used in investment activities
    (10,730 )     (34,488 )
                 
CASH FLOW – FINANCING ACTIVITIES
               
                 
Shares issued under employee share-based plans
    259       2,709  
Net cash provided by financing activities
    259       2,709  
                 
Decrease in cash and cash equivalents
    (2,753 )     (6,678 )
Cash and cash equivalents – beginning of period
    18,716       25,394  
Cash and cash equivalents – end of period
    15,963       18,716  

 
9

 

DISCLOSURE OF NON-GAAP NET INCOME
(U.S. dollars in thousands, except per share data)


   
Three months ended
 
   
December 31,
   
September 30,
   
December 31,
 
   
2012
   
2012
   
2011
 
                   
GAAP Net income for the period
    2,472       2,895       4,970  
                         
Non-GAAP Adjustments:
                       
Stock based compensation expenses
    609       489       476  
Adjustments related to tax assets
    (2,553 )     349       (2,500 )
Loss related to equipment and inventory damage
    509       -       -  
                         
Non-GAAP Net income for the period
    1,037       3,733       2,946  
                         
Non-GAAP Net income per share:
                       
Basic
    0.04       0.14       0.11  
Diluted
    0.04       0.14       0.11  
                         
Shares used for calculation of Non-GAAP net income per share:
                       
Basic
    26,679       26,646       26,425  
Diluted
    27,317       27,485       27,007  

   
Year ended
 
   
December 31,
   
December 31,
 
   
2012
   
2011
 
             
GAAP Net income for the period
    11,828       28,118  
                 
Non-GAAP Adjustments:
               
Stock based compensation expenses
    1,927       1,435  
Adjustments related to tax assets
    (53 )     (2,500 )
Loss related to equipment and inventory damage
    509       -  
                 
Non-GAAP Net income for the period
    14,211       27,053  
                 
Non-GAAP Net income per share:
               
Basic
    0.53       1.03  
Diluted
    0.52       1.00  
                 
Shares used for calculation of Non-GAAP net income per share:
               
Basic
    26,619       26,232  
Diluted
    27,277       26,931  
 
10