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Investors Press Releases

Nova Reports Record Second Quarter 2021 Results

Rehovot, Israel, August 5, 2021

 

 

REHOVOT, Israel, Aug. 5, 2021 /PRNewswire/ — Nova (Nasdaq: NVMI) today announced record financial results for the second quarter of 2021, the period ended June 30, 2021.

Second Quarter 2021 Highlights:

  • Record quarterly revenue of $97.7 million, up 56% year over year
  • Record GAAP net income of $22.9 million, or $0.77 per diluted share, up 157% year over year on a per-share basis
  • Record non-GAAP net income of $26.9 million, or $0.90 per diluted share, up 88% year over year on a per-share basis
  • The continuing proliferation of optical CD standalone solutions to various leading customers drove sales to a new quarterly high 
  • Broader exposure to multiple accounts strengthened geographical diversification with record revenues from China

GAAP Results ($K)

 

Q2 2021

Q1 2021

Q2 2020

Revenues

$97,746

$84,133

$62,586

Net Income

$22,924

$17,616

$8,672

Earnings per Diluted Share

$0.77

$0.60

$0.30

NON-GAAP Results ($K)

 

Q2 2021

Q1 2021

Q2 2020

Net Income

$26,886

$20,485

$13,774

Earnings per Diluted Share

$0.90

$0.70

$0.48

A reconciliation between GAAP operating results and non-GAAP operating results is provided following the financial statements that are part of this release. See also “Use of Non-GAAP Adjusted Financial Measures” section.

Management Comments

“We continue to reap the benefits of our well-executed plans meeting the Company’s strategic targets. Our evolving product portfolio resonates well with our customers and propelled our continuous growth with another strong quarter,” commented Eitan Oppenhaim, President and Chief Executive Officer. “Following our consistent achievements this year, we announced during our recent analyst and investor day, our new plan to organically grow the business to more than $500M in revenues. The combination of our financial model, operation leverage, and diversified portfolio supports our plans to continue our growth across segments and customers. Along with our guidance for the third quarter of 2021, we are well-positioned to achieve another record year and position Nova to capitalize on further opportunities in different territories.”

2021 Third Quarter Financial Outlook

Management provided an outlook for the third quarter, the period ending September 30, 2021. Based on current estimates, management expects:

  • $99 million to $106 million in revenue
  • $0.71 to $0.84 in diluted GAAP EPS
  • $0.85 to $0.98 in diluted non-GAAP EPS

2021 Second Quarter Results

Total revenues for the second quarter of 2021 were $97.7 million, an increase of 16% compared with the first quarter of 2021 and an increase of 56% compared with the second quarter of 2020.

Gross margin in the second quarter of 2021 was 57%, similar to the previous quarter and compared with gross margin of 58% in the second quarter of 2020.

Operating expenses in the second quarter of 2021 were $28.7 million, compared with $28.2 million in the first quarter of 2021 and  $26.3 million in the second quarter of 2020.

On a GAAP basis, the Company reported net income of $22.9 million, or $0.77 per diluted share, in the second quarter of 2021. This is compared with net income of $17.6 million, or $0.60 per diluted share, in the first quarter of 2021, and net income of $8.7 million, or $0.30 per diluted share, in the second quarter of 2020.

On a non-GAAP basis, the Company reported net income of $26.9 million, or $0.90 per diluted share, in the second quarter of 2021. This is compared with net income of $20.5 million, or $0.70 per diluted share, in the first quarter of 2021, and net income of $13.8 million, or $0.48 per diluted share, in the second quarter of 2020.

Conference Call Information

Nova will host a conference call today, August 5, 2021, at 8:30 a.m. Eastern Time, to discuss the financial results and 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. TOLL-FREE Dial-in Number: 1-888-394-8218
ISRAEL TOLL-FREE Dial-in Number: 1-809-212-883
INTERNATIONAL Dial-in Number: 1-323-701-0225

At:
8:30 a.m. Eastern Time
5:30 a.m. Pacific Time
3:30 p.m. Israel Time
Please reference conference ID: 6930576

The conference call will also be webcast live from a link on Nova’s website at https://www.novami.com/investors/events/ [public.viavid.com].

A replay of the conference call will be available from August 5, 2021 at 11:30 a.m. Eastern Time to August 12, 2021 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: 6930576

A replay will also be available for 90 days on Nova’s website at https://www.novami.com/investors/events/.

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 enables 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
Nova Website Link- https://www.novami.com/.

Nova is traded on the Nasdaq & TASE, Nasdaq ticker symbol NVMI.

Use of Non-GAAP Adjusted Financial Measures

This press release provides financial measures that exclude amortization of acquired intangible assets, stock-based compensation expenses, expense related to a transaction made by a financial institution without Company authorization, revaluation of operating lease liabilities, amortization of debt discount and issuance costs and tax effect of non-GAAP adjustment, as applicable, 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 enhance 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 allow 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.

Forward-Looking Statements

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 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: catastrophic events such as the outbreak of COVID-19; increased information technology security threats and sophisticated computer crime; foreign political and economic risks; changes in U.S. trade policies; inability to protect intellectual property; open source technology exposure; failure to compete effectively or to respond to the rapid technological changes; consolidation in our industry; difficulty to predict the length and strength of any downturn or expansion period of the market we target; factors that adversely affect the pricing and demand for our product lines; dependency on a small number of large customers; dependency on a single manufacturing facility per product line; dependency on a limited number of suppliers; lengthy sales cycle and customer delays in orders; political, economic, and military instability in Israel; risks related to our convertible notes; currency fluctuations; and quarterly fluctuations in our operating results. 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, 2020 filed with the Securities and Exchange Commission on March 1, 2021. These factors are updated from time to time through the filing of reports and registration statements with the Securities and Exchange Commission. Nova Ltd. does not assume any obligation to update the forward-looking information contained in this press release.

 

(Tables to Follow)

 

NOVA LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands) -(Unaudited)

 
 

As of 

ASSETS

June 30,

December 31,

2021

2020

Current assets

   

Cash and cash equivalents

136,290

232,304

Short-term interest-bearing bank deposits

243,635

191,567

Marketable securities

40,270

Trade accounts receivable, net

58,207

63,314

Inventories

71,800

61,734

Other current assets

9,879

9,782

Total current assets

560,081

558,701

Non-current assets

   

Marketable securities

59,605

Interest-bearing bank deposits

3,503

2,547

Restricted interest-bearing bank deposits

1,750

1,476

Deferred tax assets

4,583

2,869

Other long-term assets

456

462

Severance pay funds

1,311

1,281

Operating lease right-of-use assets

28,833

29,109

Property and equipment, net

33,041

34,168

Intangible assets, net

3,910

5,059

Goodwill

20,114

20,114

Total non-current assets

157,106

97,085

Total assets

717,187

655,786

 LIABILITIES AND SHAREHOLDERS’ EQUITY

   

Current liabilities

   

Convertible senior notes, net

180,893

Trade accounts payable

26,527

24,096

Deferred revenues

13,591

4,717

Operating lease current liabilities

3,942

3,703

Other current liabilities

32,096

28,418

Total current liabilities

257,049

60,934

Non-current liabilities

   

Convertible senior notes, net

178,808

Accrued severance pay

3,804

3,719

Operating lease long-term liabilities

31,022

31,905

Other long-term liability

9,610

8,882

Total non-current liabilities

44,436

223,314

Shareholders’ equity 

415,702

371,538

Total liabilities and shareholders’ equity 

717,187

655,786

     
     

 

 

 

NOVA LTD.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 (U.S. dollars in thousands, except per share data) – (Unaudited)

 
 

Three months ended
June 30,

Six months ended
June 30,

 

2021

2020

2021

2020

Revenues:

       

Products

78,293

47,097

144,576

92,822

Services

19,453

15,489

37,303

30,786

Total revenues

97,746

62,586

181,879

123,608

Cost of revenues

41,802

25,985

78,005

52,665

Gross profit

55,944

36,601

103,874

70,943

Operating expenses:

       

Research and development, net

15,341

12,622

29,859

24,305

Sales and marketing

9,432

7,263

18,972

13,826

General and administrative

3,388

5,775

6,927

8,364

Amortization of acquired intangible assets

574

626

1,149

1,252

Total operating expenses

28,735

26,286

56,907

47,747

Operating income

27,209

10,315

46,967

23,196

Financing income (expense), net

(1,150)

387

(726)

1,415

Income before tax on income

26,059

10,702

46,241

24,611

Income tax expenses

3,135

2,030

5,701

4,257

Net income for the period

22,924

8,672

40,540

20,354

         

Earnings per share:

       

Basic

0.81

0.31

1.43

0.73

Diluted

0.77

0.30

1.37

0.70

         

Shares used for calculation of earnings per share
 (in thousands):

       

Basic

28,304

28,039

28,259

28,037

Diluted

29,815

28,888

29,561

28,890

 

 

 

NOVA LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(U.S. dollars in thousands) – (Unaudited)

 
 

Three months ended June 30,

Six months ended
June 30,

 

2021

2020

2021

2020

Cash flows from operating activities:

       

Net income

$ 22,924

$   8,672

$ 40,540

$ 20,354

Adjustments to reconcile net income to net cash provided by operating activities:

       

     Depreciation of property and equipment

1,596

1,419

3,175

2,829

     Amortization of intangible assets

574

626

1,149

1,252

     Amortization of premium and accretion of discount on marketable securities, net

283

283

     Amortization of debt discount and issuance costs

1,051

2,085

     Share-based compensation

2,128

1,454

4,350

2,772

     Net effect of exchange rate fluctuation

(350)

(178)

12

221

Changes in assets and liabilities:

       

     Trade accounts receivables, net

1,613

10,586

5,107

7,146

     Inventories

(5,831)

(7,022)

(10,248)

(8,470)

     Other current and long-term assets

554

1,046

(608)

4,739

     Deferred tax assets, net

(1,116)

(345)

(1,714)

(546)

     Operating lease right-of-use assets

411

350

817

604

     Trade accounts payables

1,932

2,920

2,371

665

     Deferred revenues

(147)

(1,437)

8,874

(1,091)

     Operating lease liabilities

81

76

(1,185)

(390)

     Other current and long-term liabilities

587

618

4,305

2,572

     Accrued severance pay, net

93

132

55

150

Net cash provided by operating activities

26,383

18,917

59,368

32,807

         

Cash flows from investment activities:

       

Change in short-term and long-term interest-bearing bank deposits

2,461

(25,373)

(53,344)

(33,002)

Investment in marketable securities

(106,403)

(106,403)

Proceed from sales and maturities of marketable securities

6,137

6,137

Purchase of property and equipment

(1,318)

(890)

(1,806)

(3,160)

Net cash used in investing activities

(99,123)

(26,263)

(155,416)

(36,162)

         

Cash flows from financing activities:

       

Purchases of treasury shares

(2,535)

(2,549)

Proceeds from exercise of options

142

253

Net cash used in financing activities

(2,393)

(2,296)

Effect of exchange rate fluctuations on cash and cash equivalents

272

93

34

(212)

Decrease in cash and cash equivalents 

(72,468)

(9,646)

(96,014)

(5,863)

Cash and cash equivalents – beginning of period

208,758

35,531

232,304

31,748

Cash and cash equivalents – end of period

$ 136,290

$  25,885

$ 136,290

$  25,885


 

 

NOVA 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,
2021

March 31,
2021

June 30,
2020

GAAP gross profit

55,944

47,930

36,601

Stock-based compensation expenses *

382

418

279

Non-GAAP gross profit

56,326

48,348

36,880

GAAP gross margin as a percentage of revenues

57%

57%

58%

Non-GAAP gross margin as a percentage of revenues

58%

57%

59%

       

GAAP operating income

27,209

19,758

10,315

Stock-based compensation expenses *

2,128

2,222

1,454

Amortization of acquired intangible assets

574

575

626

Expense related to a transaction made by a financial institution without Company authorization

3,000

Non-GAAP operating income

29,911

22,555

15,395

GAAP operating margin as a percentage of revenues

28%

23%

16%

Non-GAAP operating margin as a percentage of revenues

31%

27%

25%

       

GAAP net income

22,924

17,616

8,672

Stock-based compensation expenses *

2,128

2,222

1,454

Amortization of acquired intangible assets

574

575

626

Amortization of debt discount and issuance costs

1,051

1,034

One-time expense related to a transaction made by a financial institution without Company authorization

3,000

Revaluation of operating lease liabilities

554

(860)

594

Tax effect of non-GAAP adjustments

(345)

(102)

(572)

Non-GAAP net income

26,886

20,485

13,774

       

GAAP basic earnings per share

0.81

0.62

0.31

Non-GAAP basic earnings per share

0.95

0.73

0.49

       

GAAP diluted earnings per share

0.77

0.60

0.30

Non-GAAP diluted earnings per share

0.90

0.70

0.48

       

Shares used for calculation of earnings per share
(in thousands):

     

Basic

28,304

28,214

28,039

Diluted

29,815

29,306

28,888

         

* Stock-based compensation expenses for the three months ended June 30, 2021 included in – Cost of revenues – 382; Research and development expenses, net – 811; Sales and marketing expenses – 527; General and administrative expenses – 408

 

 

NOVA LTD.

SUPPLEMENTAL INFORMATION – RECONCILIATION OF THIRD QUARTER 2021

GAAP TO NON-GAAP GUIDANCE

(Unaudited)

 
 

Low

High

Estimated GAAP net income per diluted share

0.71

0.84

Estimated non-GAAP items:

   

Stock-based compensation expenses

0.10

0.10

Amortization of acquired intangible assets

0.02

0.02

Amortization of debt discount and issuance costs

0.03

0.03

Tax effect of non-GAAP adjustments

(0.01)

(0.01)

Estimated non-GAAP net income per diluted share

0.85

0.98

 

 

Company Contact:
Dror David, Chief Financial Officer
Nova Measuring Instruments Ltd.
Tel: +972-73-229-5760
Mail to: investors@novami.com
Nova Website Link

Investor Relations Contact:
Miri Segal
MS-IR LLC
Tel: +917-607-8654
E-mail: Mail to MS-IR
Nova