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
 
For the month of August 2018

Commission File No.: 000-30668
 
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 Reports Second Quarter 2018 Results”.

The GAAP financial statements tables included in the press release attached hereto 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: November 5, 2007 (File No. 333-147140); October 25, 2012 (File No. 333-184585), March 6, 2015 (File No. 333-202550); and August 25, 2017 (File No. 333-220158).
 
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: August 1, 2018
 
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: +972-73-229-5760
E-mail: info@novameasuring.com
www.novami.com
Investor Relations Contact:
Miri Segal
MS-IR LLC
Tel: +917-607-8654
E-mail: msegal@ms-ir.com
 
Company Press Release
 
Nova Reports Second Quarter 2018 Results
 
Rehovot, Israel, August 1, 2018 - Nova (Nasdaq: NVMI) today announced financial results for the second quarter 2018, the period ended June 30, 2018.
 
Second Quarter 2018 Highlights:
·
Quarterly revenue of $61.9 million, up 10% year-over-year, within company guidance
·
GAAP net income of $11.8 million, or $0.41 per diluted share, exceeding guidance of $0.30 to $0.40 per share
·
Non-GAAP net income of $13.3 million, or $0.46 per diluted share, exceeding guidance of $0.35 to $0.45 per share
·
Memory customers generated 50% of overall product revenue
·
Five large customers, three Memory and two Foundry, contributed more than 10% each to overall product revenue 
 
GAAP Results ($K)
 
Q2 2018
Q1 2018
Q2 2017
Revenues
$61,888
$62,603
$56,126
Net Income
$11,833
$14,080
$13,313
Earnings per Diluted Share
$0.41
$0.49
$0.47
NON-GAAP Results ($K)
 
Q2 2018
Q1 2018
Q2 2017
Net Income
$13,343
$15,430
$15,167
Earnings per Diluted Share
$0.46
$0.54
$0.53
 
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 amortization of acquired intangible assets, certain discrete tax items and stock-based compensation expenses.
 
Management Comments

“We are very pleased with our quarterly results, which reflect our continuous efforts to execute on our strategic growth plan to diversify our customer base and technology offering,” commented Eitan Oppenhaim, President and Chief Executive Officer of Nova. “The second quarter results solidify the progress we are making with both our Dimensional and Materials metrology solutions for advanced 3D NAND and DRAM device manufacturing. We believe that the expanded customer base, along with our differentiated technology, presents a larger market for us to pursue as we continue to execute effectively our long-term growth plans,” concluded Mr. Oppenhaim.
 

 
2018 Third Quarter Financial Outlook
 
Management provided an outlook for the third quarter, the period ending September 30, 2018. Based on current estimates, management expects:
 
·
$58 million to $64 million in revenue
 
·
$0.32 to $0.44 in diluted GAAP EPS
 
·
$0.37 to $0.49 in diluted non-GAAP EPS
 
2018 Second Quarter Results
 
Total revenues for the second quarter of 2018 were $61.9 million, a decrease of 1% compared to the first quarter of 2018 and a year-over-year increase of 10% relative to the second quarter of 2017.
 
Gross margin for the second quarter of 2018 was 58%, unchanged from gross margin in the first quarter of 2018 and compared to the gross margin of 59% in the second quarter of 2017.
 
Operating expenses in the second quarter of 2018 were $22.1 million, compared with $20.3 the first quarter of 2018 and compared with $17.7 million in the second quarter of 2017.
 
On a GAAP basis, the company reported net income of $11.8 million, or $0.41 per diluted share, in the second quarter of 2018. This is compared with $14.1 million, or $0.49 per diluted share, in the first quarter of 2018, and compared with net income of $13.3 million, or $0.47 per diluted share, in the second quarter of 2017.
 
On a non-GAAP basis, which excludes amortization of acquired intangible assets, certain discrete tax items and stock-based compensation expenses, the company reported net income of $13.3 million, or $0.46 per diluted share, in the second quarter of 2018. This is compared with net income of $15.4 million, or $0.54 per diluted share, in the first quarter of 2018, and compared with net income of $15.2 million, or $0.53 per diluted share, in the second quarter of 2017.
 
Total cash reserves on June 30, 2018 were $168.8 million, compared to $149.8 million on December 31, 2017.
 
Conference Call Information
 
Nova will host a conference call today, August 1, 2018, at 9 a.m. Eastern Time, to discuss the financial results and future outlook. To attend the conference call, please dial one of the following teleconferencing numbers. Please begin by placing your calls five 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: 1-888-394-8218
ISRAEL Dial-in Number: 1-809-212-883
INTERNATIONAL Dial-in Number: 1-323-701-0225
At:
9 a.m. Eastern Time
6 a.m. Pacific Time
4 p.m. Israeli Time

Please reference conference ID 8991200
 
The conference call will also be webcast live from a link on Nova's website at http://ir.novami.com.
 

 
A replay of the conference call will be available from August 1, 2018 at 12 p.m. Eastern Time to August 8, 2018 at 11:59 p.m. Eastern Time. To access the replay, please dial one of the following numbers:
 
Replay Dial-in TOLL-FREE   1-844-512-2921 
Replay Dial-in TOLL/INTERNATIONAL   1-412-317-6671

Replay Pin Number:  8991200
 
A replay will also be available for 90 days on Nova's website at http://ir.novami.com.
 
About Nova: Nova is a leading innovator and key provider of metrology solutions for advanced process control used in semiconductor manufacturing. Nova delivers continuous innovation by providing state-of-the-art high-performance metrology solutions for effective process control throughout the semiconductor fabrication lifecycle. Nova’s product portfolio, which combines high-precision hardware and cutting-edge software, provides its customers with deep insight into the development and production of the most advanced semiconductor devices. Nova’s unique capability to deliver innovative X-ray and Optical solutions enable its customers to improve performance, enhance product yields and accelerate time to market. Nova acts as a partner to semiconductor manufacturers from its offices around the world. Additional information may be found at www.novami.com.
 
Nova is traded on the NASDAQ & TASE under the symbol NVMI.

This press release provides financial measures that exclude charges for amortization of acquired intangible assets, certain discrete tax items and stock-based compensation expenses 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, but are not limited to, anticipated growth opportunities and projections about our business and its future revenues, expenses 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. Factors that may affect our results, performance, circumstances or achievements include, but are not limited to, the following: our dependency on three product lines; our dependency on a small number of large customers and small number of suppliers; the highly cyclical and competitive nature of the markets we target and we operate in; 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 PEMs; 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 our manufacturing facilities; risks related to changes in our order backlog; risks related to efforts to complete and integrate current and/or future acquisitions; risks related to the worldwide financial instabilities; risks related to our intellectual property; new product offerings from our competitors; unanticipated manufacturing or supply problems; risks related to government programs we participate in; risks related to taxation; changes in customer demand for our products; risks related to currency fluctuations; risks related to technology security threats and changes in privacy laws; risks related to acquisitions we may pursue 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, 2017 filed with the Securities and Exchange Commission on February 28, 2018. 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.
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands) - (Unaudited)
 
   
As of
 
ASSETS
 
June 30,
2018
   
December 31,
2017
 
Current assets
           
Cash and cash equivalents
   
27,622
     
27,697
 
Short-term interest-bearing bank deposits
   
140,039
     
121,390
 
Trade accounts receivable
   
43,073
     
40,949
 
Inventories
   
41,332
     
34,921
 
Other current assets
   
3,739
     
7,313
 
                 
Total current assets
   
255,805
     
232,270
 
                 
Long-term assets
               
Long-term interest-bearing bank deposits
   
1,100
     
750
 
Deferred tax assets
   
2,514
     
1,957
 
Severance pay funds
   
1,476
     
1,503
 
Property and equipment, net
   
13,585
     
13,891
 
Identifiable intangible assets, net
   
11,493
     
12,800
 
Goodwill
   
20,114
     
20,114
 
                 
Total long-term assets
   
50,282
     
51,015
 
                 
Total assets
   
306,087
     
283,285
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
               
Current liabilities
               
Trade accounts payable
   
18,545
     
15,754
 
Deferred revenues
   
9,484
     
10,334
 
Other current liabilities
   
18,732
     
26,038
 
                 
Total current liabilities
   
46,761
     
52,126
 
                 
Long-term liabilities
               
Liability for employee severance pay
   
2,528
     
2,590
 
Other long-term liabilities
   
2,228
     
1,833
 
                 
Total long-term liabilities
   
4,756
     
4,423
 
                 
Shareholders' equity
   
254,570
     
226,736
 
                 
Total liabilities and shareholders’ equity
   
306,087
     
283,285
 
 
 

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

   
Three months ended
   
Six months ended
 
   
June 30,
2018
   
June 30,
2017
   
June 30,
2018
   
June 30,
2017
 
                         
Revenues:
                       
Products
   
45,784
     
44,954
     
95,969
     
88,470
 
Services
   
16,104
     
11,172
     
28,522
     
22,086
 
Total revenues
   
61,888
     
56,126
     
124,491
     
110,556
 
                                 
Cost of revenues:
                               
Products
   
18,002
     
15,809
     
35,971
     
30,929
 
Services
   
8,186
     
6,923
     
16,463
     
13,373
 
Total cost of revenues
   
26,188
     
22,732
     
52,434
     
44,302
 
                                 
Gross profit
   
35,700
     
33,394
     
72,057
     
66,254
 
                                 
Operating expenses:
                               
Research and development expenses, net
   
11,849
     
9,238
     
23,075
     
18,513
 
Sales and marketing expenses
   
7,442
     
5,892
     
13,673
     
11,980
 
General and administrative expenses
   
2,134
     
1,938
     
4,364
     
3,595
 
Amortization of acquired intangible assets
   
654
     
640
     
1,307
     
1,280
 
Total operating expenses
   
22,079
     
17,708
     
42,419
     
35,368
 
                                 
Operating income
   
13,621
     
15,686
     
29,638
     
30,886
 
                                 
Financing income, net
   
486
     
525
     
934
     
940
 
                                 
Income before tax on income
   
14,107
     
16,211
     
30,572
     
31,826
 
                                 
Income tax expenses
   
2,274
     
2,898
     
4,659
     
5,110
 
                                 
Net income for the period
   
11,833
     
13,313
     
25,913
     
26,716
 
                                 
Earnings per share:
                               
Basic
   
0.42
     
0.48
     
0.93
     
0.97
 
Diluted
   
0.41
     
0.47
     
0.91
     
0.96
 
                                 
Shares used for calculation of earnings per share:
                               
                                 
Basic
   
27,977
     
27,655
     
27,946
     
27,561
 
Diluted
   
28,766
     
28,562
     
28,349
     
27,958
 



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

   
Three months ended
   
Six months ended
 
   
June 30,
2018
   
June 30,
2017
   
June 30,
2018
   
June 30,
2017
 
Cash flows from operating activities:
                       
Net income for the period
   
11,833
     
13,313
     
25,913
     
26,716
 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
                               
Depreciation
   
1,312
     
938
     
2,227
     
1,893
 
Amortization of acquired intangible assets
   
654
     
640
     
1,307
     
1,280
 
Amortization of deferred stock-based compensation
   
993
     
548
     
1,827
     
1,211
 
Decrease (increase) in liability for employee termination benefits, net
   
6
     
41
     
(35
)
   
73
 
Deferred tax assets, net
   
(421
)
   
666
     
(557
)
   
75
 
Decrease (increase) in trade accounts receivable
   
(5,648
)
   
1,887
     
(2,081
)
   
6,274
 
Increase in inventories
   
(2,761
)
   
(3,041
)
   
(7,236
)
   
(4,616
)
Decrease (increase) in other current assets
   
2,068
     
(1,376
)
   
3,574
     
(955
)
Increase in trade accounts payable
   
438
     
2,618
     
2,791
     
2,708
 
Increase (decrease) in other current liabilities and other long-term liabilities
   
(4,414
)
   
409
     
(7,098
)
   
2,288
 
Increase (decrease) in short term deferred revenues
   
3,519
     
3,770
     
(850
)
   
6,164
 
                                 
Net cash provided by operating activities
   
7,579
     
20,413
     
19,782
     
43,111
 
                                 
Cash flow from investment activities:
                               
Increase in short-term and long term interest-bearing bank deposits
   
(7,841
)
   
(2,581
)
   
(18,999
)
   
(22,659
)
Additions to property and equipment
   
(735
)
   
(847
)
   
(1,096
)
   
(1,267
)
                                 
Net cash used in investment activities
   
(8,576
)
   
(3,428
)
   
(20,095
)
   
(23,926
)
                                 
Cash flows from financing activities:
                               
Shares issued under employee stock-based plans
   
151
     
324
     
238
     
2,141
 
                                 
Net cash provided by financing activities
   
151
     
324
     
238
     
2,141
 
                                 
Increase (decrease) in cash and cash equivalents
   
(846
)
   
17,309
     
(75
)
   
21,326
 
Cash and cash equivalents – beginning of period
   
28,468
     
24,423
     
27,697
     
20,406
 
Cash and cash equivalents – end of period
   
27,622
     
41,732
     
27,622
     
41,732
 
 

 
NOVA MEASURING INSTRUMENTS LTD.
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(U.S. dollars in thousands, except percentage and per share data) - (Unaudited)
 
   
Three months ended
 
   
June 30,
2018
   
March 31,
2018
   
June 30,
2017
 
GAAP cost of revenues
   
26,188
     
26,246
     
22,732
 
Stock-based compensation in cost of products
   
(114
)
   
(92
)
   
(74
)
Stock-based compensation in cost of services
   
(92
)
   
(79
)
   
(56
)
Non-GAAP cost of revenues
   
25,982
     
26,075
     
22,602
 
                         
GAAP gross profit
   
35,700
     
36,357
     
33,394
 
Gross profit adjustments
   
206
     
171
     
130
 
Non-GAAP gross profit
   
35,906
     
36,528
     
33,524
 
GAAP gross margin as a percentage of revenues
   
58
%
   
58
%
   
59
%
Non-GAAP gross margin as a percentage of revenues
   
58
%
   
58
%
   
60
%
                         
GAAP operating expenses
   
22,079
     
20,340
     
17,708
 
Stock-based compensation in research and development
   
(386
)
   
(340
)
   
(188
)
Stock-based compensation in sales and marketing
   
(259
)
   
(219
)
   
(146
)
Stock-based compensation in general and administrative
   
(142
)
   
(104
)
   
(84
)
Amortization of acquired intangible assets
   
(654
)
   
(653
)
   
(640
)
Non-GAAP operating expenses
   
20,638
     
19,024
     
16,650
 
Non-GAAP operating income
   
15,268
     
17,504
     
16,874
 
GAAP operating margin as a percentage of revenues
   
22
%
   
26
%
   
28
%
Non-GAAP operating margin as a percentage of revenues
   
25
%
   
28
%
   
30
%
                         
GAAP tax on income
   
2,274
     
2,385
     
2,898
 
Certain discrete tax items
   
137
     
137
     
(666
)
Non-GAAP tax on income
   
2,411
     
2,522
     
2,232
 
                         
GAAP net income
   
11,833
     
14,080
     
13,313
 
Amortization of acquired intangible assets
   
654
     
653
     
640
 
Stock-based compensation expenses
   
993
     
834
     
548
 
Certain discrete tax items
   
(137
)
   
(137
)
   
666
 
Non-GAAP net income
   
13,343
     
15,430
     
15,167
 
                         
GAAP basic earnings per share
   
0.42
     
0.50
     
0.48
 
Non-GAAP basic earnings per share
   
0.48
     
0.55
     
0.55
 
                         
GAAP diluted earnings per share
   
0.41
     
0.49
     
0.47
 
Non-GAAP diluted earnings per share
   
0.46
     
0.54
     
0.5 3
 
                         
Shares used for calculation of earnings per share:
                       
Basic
   
27,977
     
27,915
     
27,655
 
Diluted
   
28,766
     
28,739
     
28,562