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 |
· |
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
|
· |
$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
|
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
|
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
|
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
|
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
|