zk1414429.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 18, 2014
 
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): ____ 
 
Attached hereto and incorporated by way of reference herein is a press release issued by the Registrant and entitled: “Nova Announces Record 2013 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 18, 2014
 
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
www.novameasuring.com
Investor Relations Contacts:
Hayden/ MS-IR LLC
Miri Segal
Tel: +917-607-8654
E-mail: msegal@ms-ir.com
Or
David Fore
Tel: +206-395-2711
E-mail: dave@haydenir.com
 
Company Press Release

NOVA ANNOUNCES RECORD 2013 FOURTH QUARTER
AND FULL YEAR RESULTS

Record Quarterly Revenues of $30.2 million
And Record Yearly Revenues of $111.5 million
 
Rehovot, Israel, February 18, 2014 - Nova Measuring Instruments Ltd. (Nasdaq: NVMI), provider of leading edge standalone metrology and the market leader of integrated metrology solutions to the semiconductor process control market, today reported record 2013 fourth quarter and full year results.
 
Business Highlights:
 
·
Stand Alone driving market share gains in major foundries for Front End and Back End Etch process steps in 2X and 1X technology nodes; represented 50% of bookings in 4Q13
 
·
Growing deliveries of Integrated and Stand Alone tools to support 16/14nm with sequential increase from 3Q13 to 4Q13
 
·
Shipped first systems for 10nm R&D line to a large pure-play foundry
 
·
Crossed delivery mark of 250 Metrology tools for 2Xnm and below technology nodes  for all industry segments
 
·
Ongoing evaluations at 3 memory customers for advanced V-NAND and TSV applications
 
·
Received first orders for Fleet Management SW solution
 
Fourth Quarter and Full Year 2013 Financial Highlights:
 
·
Quarterly revenues of $30.2 million, up 37% from $22.1 million a year ago
 
·
Quarterly gross margin of 53%, up from 50% a year ago
 
·
Full year 2013 revenues of $111.5 million, up 16% from $96.2 million in 2012
 
·
Full year gross margin of 53%, similar to 2012
 
·
Total cash reserves of $99.7 million as of December 31, 2013, and no debt

 
 

 
 
GAAP Results ($K)
 
      Q4 2013       Q3 2013       Q4 2012    
FY2013
   
FY2012
 
Revenues
  $ 30,198     $ 25,771     $ 22,098     $ 111,509     $ 96,168  
Net Income
  $ 3,077     $ 2,240     $ 2,472     $ 10,515     $ 11,828  
Earnings per Diluted Share
  $ 0.11     $ 0.08     $ 0.09     $ 0.38     $ 0.43  
   
NON-GAAP Results ($K)
 
      Q4 2013       Q3 2013       Q4 2012    
FY2013
   
FY2012
 
Net Income
  $ 4,055     $ 2,724     $ 1,037     $ 14,147     $ 14,211  
Earnings per Diluted Share
  $ 0.15     $ 0.10     $ 0.04     $ 0.52     $ 0.52  
 
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 adjustments of deferred taxes, stock based compensation expenses, income from insurance claim and loss related to equipment and inventory damage.

Management Comments
 
“We posted record revenues for the fourth quarter and for the whole year, exceeding the high end of our quarterly revenue guidance, due to strong demand for our Optical Metrology solutions during the quarter,” commented Eitan Oppenhaim, President and CEO of Nova. “Our continuous investment in R&D to strengthen our leadership position in Optical Metrology for process control is clearly paying off and leading to increased market share in this high growth market.”
 
“We continue to outpace the industry as we grow our placement in the Foundry segment, with a presence in multiple process steps in all advanced technology nodes. Our recent market share wins, combined with a diversified and enhanced product portfolio, position us very well for a solid start in 2014. The growth of the semiconductor equipment industry is fueled by growing investments in transitioning to advanced technology nodes and complex device structures. These challenging technology transitions require additional optical metrology measurements for better process control. Nova is well positioned to benefit from these trends and to continue its growth trajectory”.

2013 Fourth Quarter Results
 
Total revenues for the fourth quarter of 2013 were $30.2 million, an increase of 37% relative to the fourth quarter of 2012, and an increase of 17% relative to the third quarter of 2013.
 
Gross margin for the fourth quarter of 2013 was 53%, compared with 50% in the fourth quarter of 2012 and 51% in the third quarter of 2013.
 
Operating expenses in the fourth quarter of 2013 were $12.0 million, compared with $11.4 million in the fourth quarter of 2012 and $10.9 million in the third quarter of 2013.
 
On a GAAP basis, the company reported net income of $3.1 million, or $0.11 per diluted share, in the fourth quarter of 2013. This compares to a net income of $2.5 million, or $0.09 per diluted share, in the fourth quarter of 2012, and a net income of $2.2 million, or $0.08 per diluted share, in the third quarter of 2013.
 
 
2

 
 
On a Non-GAAP basis, which excludes adjustments of deferred taxes, stock based compensation expenses and loss related to equipment and inventory damage, the company reported net income of $4.1 million, or $0.15 per diluted share, in the fourth quarter of 2013. This compares to a net income of $1.0 million, or $0.04 per diluted share, in the fourth quarter of 2012, and a net income of $2.7 million, or $0.10 per diluted share, in the third quarter of 2013.

2013 Full Year Results
 
Total revenues for 2013 were $111.5 million, compared to total revenues of $96.1 million for 2012.
 
Gross margin in 2013 was 53%, compared to 53% in 2012.
 
Operating expenses in 2013 were $46.7 million, compared to $40.6 million in 2012.
 
On a GAAP basis, the company reported net income of $10.5 million in 2013, or $0.38 per diluted share. This compares to a net income of $11.8 million, or $0.43 per diluted share, in 2012.
 
On a Non-GAAP basis, which excludes adjustments of deferred taxes, stock based compensation expenses, income from insurance claim and loss related to equipment and inventory damage, the company reported net income $14.1 million in 2013, or $0.52 per diluted share. This compares to a net income of $14.2 million, or $0.52 per diluted share, in 2012.
 
During 2013, the company generated $11.0 million in cash flow from operating activities, as compared to $7.7 million cash flow generated from operating activities in 2012.
 
Total cash reserves at the end of 2013 were $99.7 million, compared to $91.4 million at the end of 2012.

Conference Call Information
 
Nova will host a conference call on Tuesday, February 18, 2014 at 8:30 a.m. Eastern Time, to discuss the fourth quarter results and future outlook, along with its guidance for the first quarter of 2014.
 
To attend the conference call, please dial one of the following teleconferencing numbers. Please begin by placing your calls 5 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: 1-877-941-1427
ISRAEL Dial-in Number: 1809-21-4368
INTERNATIONAL Dial-in Number: 1-480-629-9664
At:
8:30 a.m. Eastern Time
5:30 a.m. Pacific Time
3:30 p.m. Israeli Time
 
 
3

 

The conference call will also be webcast live from a link on Nova’s website at http://ir.novameasuring.com. For those unable to participate in the conference call, there will be a replay available from the same link.
 
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, income from insurance claim as well as deferred income taxes adjustments 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 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 PEM; 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 a single manufacturing facility; risks related to the extremely competitive market we are operation in; our dependency on a small number of large customers and small number of suppliers; 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; new product offerings from our competitors; 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, 2012 filed with the Securities and Exchange Commission on March 11, 2013. 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,
 
   
2013
   
2012
 
             
CURRENT ASSETS
           
Cash and cash equivalents
    17,542       15,963  
Short-term interest-bearing bank deposits
    79,552       75,039  
Available for sale securities
    1,845       --  
Trade accounts receivable
    27,947       17,362  
Inventories
    18,118       17,827  
Deferred income tax assets
    137       1,850  
Other current assets
    3,922       2,549  
      149,063       130,590  
LONG-TERM ASSETS
               
Long-term interest-bearing bank deposits
    750       405  
Other long-term assets
    230       516  
Severance pay funds
    1,852       1,873  
      2,832       2,794  
                 
FIXED ASSETS, NET
    10,382       8,660  
                 
TOTAL ASSETS
    162,277       142,044  
                 
CURRENT LIABILITIES
               
Trade accounts payable
    15,599       10,819  
Deferred income
    3,420       4,775  
Other current liabilities
    11,448       8,444  
      30,467       24,038  
                 
LONG-TERM LIABILITIES
               
Liability for employee severance pay
    2,798       2,806  
Deferred income
    341       159  
Other long-term liability
    7       270  
      3,146       3,235  
                 
SHAREHOLDERS' EQUITY
    128,664       114,771  
                 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
    162,277       142,044  

 
5

 

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

   
Three months ended
 
   
December 31,
2013
   
September 30,
2013
   
December 31,
 2012
 
                   
       
REVENUES
                 
Products
    24,739       19,911       17,016  
Services
    5,450       5,860       5,082  
      30,189       25,771       22,098  
                         
COST OF REVENUES
                       
Products
    10,299       9,045       7,390  
Services
    4,018       3,626       3,644  
      14,317       12,671       11,034  
                         
GROSS PROFIT
    15,872       13,100       11,064  
                         
OPERATING EXPENSES
                       
Research and Development expenses, net
    7,491       7,021       7,117  
Sales and Marketing expenses
    3,128       2,643       3,102  
General and Administration expenses
    1,350       1,256       1,191  
      11,969       10,920       11,410  
                         
OPERATING PROFIT (LOSS)
    3,903       2,180       (346 )
                         
INTEREST INCOME, NET
    60       257       337  
                         
INCOME (LOSS) BEFORE INCOME TAXES
    3,963       2,437       (9 )
                         
    INCOME TAX BENEFIT (EXPENSES)
    (886 )     (197 )     2,481  
                         
NET INCOME FOR THE PERIOD
    3,077       2,240       2,472  
                         
Earnings per share:
                       
Basic
    0.11       0.08       0.09  
Diluted
    0.11       0.08       0.09  
                         
Shares used for calculation of earnings per share:
                       
Basic
    27,268       27,237       26,679  
Diluted
    27,548       27,503       27,317  

 
6

 

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

   
Year ended
 
   
December 31, 2013
   
December 31, 2012
 
       
REVENUES
           
Products
    89,410       77,212  
Services
    22,099       18,956  
      111,509       96,168  
                 
COST OF REVENUES
               
Products
    37,765       31,734  
Services
    14,673       13,280  
      52,438       45,014  
                 
GROSS PROFIT
    59,071       51,154  
                 
OPERATING EXPENSES
               
Research & Development expenses, net
    29,578       24,594  
Sales & Marketing expenses
    11,963       11,998  
General & Administration expenses
    5,197       3,978  
      46,738       40,570  
                 
OPERATING PROFIT
    12,333       10,584  
                 
    INTEREST INCOME, NET
    693       1,368  
                 
INCOME BEFORE INCOME TAXES
    13,026       11,952  
                 
    INCOME TAX EXPENSES
    2,511       124  
                 
NET INCOME FOR THE YEAR
    10,515       11,828  
                 
Net income per share:
               
Basic
    0.39       0.44  
Diluted
    0.38       0.43  
                 
Shares used for calculation of net income per share:
               
Basic
    27,091       26,619  
Diluted
    27,373       27,277  

 
7

 

NOVA MEASURING INSTRUMENTS LTD.
QUARTERLY CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
   
Three months ended
 
   
December 31,
2013
   
September 30,
2013
   
December 31,
2012
 
                   
CASH FLOW – OPERATING ACTIVITIES
                 
                   
Net income for the period
    3,077       2,240       2,472  
Adjustments to reconcile net income to net cash provided by operating activities:
                       
                         
Depreciation and amortization
    945       907       858  
Loss related to equipment and inventory damage
    -       -       509  
Amortization of deferred stock-based compensation
    518       368       609  
Increase (decrease) in liability for employee termination benefits, net
    (37 )     (1 )     104  
Deferred income taxes
    460       116       (1,806 )
Increase in trade accounts receivables
    (7,118 )     (1,112 )     (2,461 )
Decrease (increase) in inventories
    (1,950 )     144       143  
Decrease (increase) in other current and long term Assets
    (291 )     (1,064 )     250  
Increase (decrease) in trade accounts payables and other long-term liabilities
    4,489       250       (2,392 )
Increase in other current liabilities
    1,600       614       414  
Increase (decrease) in short and long term deferred income
    (234 )     793       207  
Net cash provided by (used in) operating activities
    1,459       3,255       (1,093 )
                         
CASH FLOW – INVESTMENT ACTIVITIES
                       
                         
Decrease (increase) in short-term interest-bearing bank deposits
    4,367       (4,548 )     (18,110 )
Decrease (increase) in long-term interest-bearing bank deposits
    (345 )     -       140  
Investment in short-term available for sale securities
    (1,845 )     -       -  
Proceeds from short-term held to maturity securities
    -       -       1,554  
Additions to fixed assets
    (1,974 )     (761 )     (1,512 )
       Net cash provided by (used in) investment activities     203       (5,309 )     (17,928 )
                         
CASH FLOW – FINANCING ACTIVITIES
                       
                         
Shares issued under employee share-based plans
    123       12       12  
Net cash provided by financing activities
    123       12       12  
                         
Increase (decrease) in cash and cash equivalents
    1,785       (2,042 )     (19,009 )
Cash and cash equivalents – beginning of period
    15,757       17,799       34,972  
Cash and cash equivalents – end of period
    17,542       15,757       15,963  

 
8

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

   
Year ended
 
   
December 31, 2013
   
December 31, 2012
 
CASH FLOW – OPERATING ACTIVITIES
           
             
Net income for the year
    10,515       11,828  
                 
       Adjustments to reconcile net income to net cash provided by operating activities:
               
                 
Depreciation and amortization
    3,522       2,783  
Loss related to equipment and inventory damage
    148       509  
Amortization of deferred stock-based compensation
    2,095       1,927  
Increase (decrease) in liability for employee termination benefits, net
    17       (27 )
Deferred income taxes
    1,898       694  
Increase in trade accounts receivables
    (10,585 )     (3,960 )
Increase in inventories
    (1,783 )     (10,513 )
Increase in other current and long term assets
    (1,234 )     (467 )
Increase in trade accounts payables and other long term liabilities
    4,517       2,510  
Increase in other current liabilities
    3,054       283  
Increase (decrease) in short and long term deferred income
    (1,173 )     2,151  
Net cash provided by operating activities
    10,991       7,718  
                 
CASH FLOW – INVESTMENT ACTIVITIES
               
                 
Increase in short-term interest-bearing bank deposits
    (4,513 )     (8,792 )
Decrease (increase) in long-term interest-bearing bank deposits
    (345 )     140  
Investment in short-term available for sale securities
    (1,845 )     -  
Proceeds from short-term held to maturity securities
    -       1,582  
Reimbursement from insurance claim
    219       -  
Additions to fixed assets
    (4,119 )     (3,660 )
Net cash used in investment activities
    (10,603 )     (10,730 )
                 
CASH FLOW – FINANCING ACTIVITIES
               
                 
Shares issued under employee share-based plans
    1,191       259  
Net cash provided by financing activities
    1,191       259  
                 
Increase (decrease) in cash and cash equivalents
    1,579       (2,753 )
Cash and cash equivalents – beginning of period
    15,963       18,716  
Cash and cash equivalents – end of period
    17,542       15,963  

 
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,
 
   
2013
   
2013
   
2012
 
                   
GAAP Net income for the period
    3,077       2,240       2,472  
                         
Non-GAAP Adjustments:
                       
Stock based compensation expenses
    518       368       609  
Deferred income tax expenses (benefit)
    460       116       (2,553 )
Loss related to equipment and inventory damage
    -       -       509  
                         
Non-GAAP Net income for the period
    4,055       2,724       1,037  
                         
Non-GAAP Net income per share:
                       
Basic
    0.15       0.10       0.04  
Diluted
    0.15       0.10       0.04  
                         
Shares used for calculation of Non-GAAP net income per share:
                       
Basic
    27,268       27,237       26,679  
Diluted
    27,548       27,503       27,317  

   
Year ended
 
   
December 31,
   
December 31,
 
   
2013
   
2012
 
             
GAAP Net income for the year
    10,515       11,828  
                 
Non-GAAP Adjustments:
               
Stock based compensation expenses
    2,095       1,927  
Deferred income taxes expenses (income)
    1,898       (53 )
Income from insurance claim
    (509 )     -  
Loss related to equipment and inventory damage
    148       509  
                 
Non-GAAP Net income for the year
    14,147       14,211  
                 
Non-GAAP Net income per share:
               
Basic
    0.52       0.53  
Diluted
    0.52       0.52  
                 
Shares used for calculation of Non-GAAP net income per share:
               
Basic
    27,091       26,619  
Diluted
    27,373       27,277  
 
10