REHOVOT, Israel, Feb. 24, 2022 /PRNewswire/ — Nova (Nasdaq: NVMI) today announced financial results for the fourth quarter and full year 2021.
Fourth Quarter 2021 Highlights:
- Record quarterly revenue of $121.5 million, up 59% year over year
- GAAP net income of $22.2 million, or $0.73 per diluted share, up 55% year over year
on a per-share basis - Non-GAAP net income of $32.8 million, or $1.08 per diluted share, up 96% year over year on a per-share basis
- Revenues recognized from multiple customers for Nova Metrion®, a newly launched materials metrology solution
- VeraFlex® IV selection with multiple orders by a leading global semiconductor manufacturer
- Record software revenues, led by Nova’s advanced Nova Fit machine learning solution
Full Year 2021 Highlights:
- Record annual revenue of $416.1 million, up 54% year over year
- GAAP net income of $93.1 million, or $3.12 per diluted share, up 89% year over year
on a per-share basis - Non-GAAP net income of $114.7 million, or $3.85 per diluted share, up 87% year over year
on a per-share basis
GAAP Results ($K)
|
Q4 2021 |
Q3 2021 |
Q4 2020 |
FY 2021 |
FY 2020 |
|
|
Revenues |
$121,521 |
$112,713 |
$76,303 |
$416,113 |
$269,396 |
|
Net Income |
$22,226 |
$30,335 |
$13,657 |
$93,101 |
$47,907 |
|
Earnings per Diluted Share |
$0.73 |
$1.02 |
$0.47 |
$3.12 |
$1.65 |
Non-GAAP Results ($K)
|
Q4 2021 |
Q3 2021 |
Q4 2020 |
FY 2021 |
FY 2020 |
|
|
Net Income |
$32,752 |
$34,546 |
$15,872 |
$114,669 |
$59,638 |
|
Earnings per Diluted Share |
$1.08 |
$1.16 |
$0.55 |
$3.85 |
$2.06 |
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 are very pleased with Nova’s strong results for the fourth quarter, which conclude another record year with significant growth in both our product and service revenue. Against the backdrop of the continuous pandemic and its influence on the supply chain, Nova succeeded in outperforming the market, demonstrating the agility and efficiency of its operational model,” commented Eitan Oppenhaim, President and Chief Executive Officer. “Our solid annual results underscore the competitive advantages and differentiated value in the marketplace. In addition to our growing organic engines, Nova expanded its offering this quarter with new advanced chemical metrology capabilities as part of the acquisition of ancosys, a leading German metrology supplier. This strategic transaction extends Nova’s available markets and positions Nova for another growth year in 2022.”
2022 First Quarter Financial Outlook
Management provided an outlook for the first quarter, the period ending March 31, 2022. Based on current estimates, management expects:
- $122 million to $132 million in revenue
- $0.78 to $0.96 in diluted GAAP EPS
- $0.96 to $1.14 in diluted non-GAAP EPS
2021 Fourth Quarter Results
Total revenues for the fourth quarter of 2021 were $121.5 million, an increase of 8% compared with the third quarter of 2021 and an increase of 59% compared with the fourth quarter of 2020.
Gross margin in the fourth quarter of 2021 was 56%, compared with 58% in the third quarter of 2021 and 55% in the fourth quarter of 2020.
Operating expenses in the fourth quarter of 2021 were $38.4 million, compared with $29.7 million in the third quarter of 2021 and $25.5 million in the fourth quarter of 2020.
On a GAAP basis, the Company reported net income of $22.2 million, or $0.73 per diluted share, in the fourth quarter of 2021. This is compared with net income of $30.3 million, or $1.02 per diluted share, in the third quarter of 2021, and net income of $13.7 million, or $0.47 per diluted share, in the fourth quarter of 2020.
On a non-GAAP basis, the Company reported net income of $32.8 million, or $1.08 per diluted share, in the fourth quarter of 2021. This is compared with net income of $34.5 million, or $1.16 per diluted share, in the third quarter of 2021, and net income of $15.9 million, or $0.55 per diluted share, in the fourth quarter of 2020.
2021 Full Year Results
Total revenues for 2021 were $416.1 million, an increase of 54% compared to total revenues of $269.4 million for 2020.
Gross margin in 2021 was 57%, same as 2020.
Operating expenses in 2021 were $125 million, compared with operating expenses of $97.4 million in 2020.
On a GAAP basis, the Company reported net income of $93.1 million, or $3.12 per diluted share, in 2021. This is compared with a net income of $47.9 million, or $1.65 per diluted share, in 2020.
On a non-GAAP basis, the Company reported net income of $114.7 million, or $3.85 per diluted share, in 2021. This is compared with net income of $59.6 million, or $2.06 per diluted share, in 2020.
Conference Call Information
Nova will host a conference call today, February 24, 2022, 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: 1-855-327-6837
ISRAEL TOLL-FREE Dial-in Number: 1-809-458-327
INTERNATIONAL Dial-in Number: 1-631-891-4304
At:
8:30 a.m. Eastern Time
5:30 a.m. Pacific Time
3:30 p.m. Israel Time
The conference call will also be webcast live from a Link on Nova’s website at https://www.novami.com/investors/events/.
A replay of the conference call will be available from February 24, 2022, at 11:30 a.m. Eastern Time to March 3, 2022, 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: 10017625
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 material, optical and chemical metrology solutions for advanced process control 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 developing and producing the most advanced semiconductor devices. Nova’s unique capability to deliver innovative 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 worldwide. Additional information may be found at Nova’s website link – https://www.novami.com/.
Nova is traded on 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, acquisition related 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, tax effect of non-GAAP adjustment and taxes attributed to one-time elective tax settlement, 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; difficulty to integrate current or future acquisitions; 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.
|
NOVA LTD. |
||
|
As of December 31, |
||
|
ASSETS |
2021 |
2020 |
|
Current assets |
||
|
Cash and cash equivalents |
126,698 |
232,304 |
|
Short-term interest-bearing bank deposits |
221,897 |
191,567 |
|
Marketable securities |
61,568 |
- |
|
Trade accounts receivable, net |
68,446 |
63,314 |
|
Inventories |
78,665 |
61,734 |
|
Other current assets |
9,242 |
9,782 |
|
Total current assets |
566,516 |
558,701 |
|
Non-current assets |
||
|
Marketable securities |
137,415 |
- |
|
Interest-bearing bank deposits |
3,672 |
2,547 |
|
Restricted interest-bearing bank deposits |
1,600 |
1,476 |
|
Deferred tax assets |
6,161 |
2,869 |
|
Severance pay funds |
1,327 |
1,281 |
|
Operating lease right-of-use assets |
30,627 |
29,109 |
|
Property and equipment, net |
34,460 |
34,168 |
|
Intangible assets, net |
2,601 |
5,059 |
|
Goodwill |
20,114 |
20,114 |
|
Other long-term assets |
661 |
462 |
|
Total non-current assets |
238,638 |
97,085 |
|
Total assets |
805,154 |
655,786 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
||
|
Current liabilities |
||
|
Convertible senior notes, net |
183,037 |
- |
|
Trade accounts payable |
36,218 |
24,096 |
|
Deferred revenues |
15,338 |
4,717 |
|
Operating lease current liabilities |
4,452 |
3,703 |
|
Other current liabilities |
48,885 |
28,418 |
|
Total current liabilities |
287,930 |
60,934 |
|
Non-current liabilities |
||
|
Convertible senior notes, net |
- |
178,808 |
|
Accrued severance pay |
3,686 |
3,719 |
|
Operating lease long-term liabilities |
33,450 |
31,905 |
|
Other long-term liabilities |
6,334 |
8,882 |
|
Total non-current liabilities |
43,470 |
223,314 |
|
Shareholders' equity |
473,754 |
371,538 |
|
Total liabilities and shareholders' equity |
805,154 |
655,786 |
|
NOVA LTD. |
||||
|
Three months ended |
Year ended |
|||
|
2021 |
2020 |
2021 |
2020 |
|
|
Revenues: |
||||
|
Products |
99,898 |
61,741 |
337,026 |
209,320 |
|
Services |
21,623 |
14,562 |
79,087 |
60,076 |
|
Total revenues |
121,521 |
76,303 |
416,113 |
269,396 |
|
Cost of revenues |
53,272 |
33,980 |
178,752 |
116,473 |
|
Gross profit |
68,249 |
42,323 |
237,361 |
152,923 |
|
Operating expenses: |
||||
|
Research and development, net |
20,140 |
15,753 |
65,857 |
53,015 |
|
Sales and marketing |
11,219 |
8,089 |
39,336 |
29,321 |
|
General and administrative |
6,262 |
1,009 |
17,324 |
12,514 |
|
Amortization of intangible assets |
735 |
626 |
2,458 |
2,503 |
|
Total operating expenses |
38,356 |
25,477 |
124,975 |
97,353 |
|
Operating income |
29,893 |
16,846 |
112,386 |
55,570 |
|
Financing income (expense), net |
(1,518) |
(1,335) |
(3,133) |
926 |
|
Income before taxes on income |
28,375 |
15,511 |
109,253 |
56,496 |
|
Income tax expenses |
6,149 |
1,854 |
16,152 |
8,589 |
|
Net income for the period |
22,226 |
13,657 |
93,101 |
47,907 |
|
Earnings per share: |
||||
|
Basic |
0.78 |
0.49 |
3.28 |
1.71 |
|
Diluted |
0.73 |
0.47 |
3.12 |
1.65 |
|
Shares used in calculation of earnings per share |
||||
|
Basic |
28,539 |
28,146 |
28,372 |
28,097 |
|
Diluted |
30,285 |
28,999 |
29,816 |
28,950 |
|
NOVA LTD. |
||||
|
Three months ended December 31, |
Year ended |
|||
|
2021 |
2020 |
2021 |
2020 |
|
|
Cash flows from operating activities: |
||||
|
Net income |
22,226 |
13,657 |
93,101 |
47,907 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
||||
|
Depreciation of property and equipment |
1,681 |
1,572 |
6,475 |
5,875 |
|
Amortization of intangible assets |
735 |
626 |
2,458 |
2,503 |
|
Amortization of premium and accretion of discount on marketable securities, net |
855 |
- |
1,708 |
- |
|
Amortization of debt discount and issuance costs |
1,075 |
868 |
4,229 |
868 |
|
Share-based compensation |
3,496 |
2,231 |
10,488 |
6,949 |
|
Net effect of exchange rate fluctuation |
(694) |
(1,187) |
(745) |
(1,584) |
|
Changes in assets and liabilities: |
||||
|
Trade accounts receivables, net |
(3,816) |
(22,217) |
(5,132) |
(11,711) |
|
Inventories |
(5,964) |
(1,219) |
(18,457) |
(16,271) |
|
Other current and long-term assets |
1,076 |
1,655 |
192 |
6,878 |
|
Deferred tax assets, net |
(741) |
535 |
(2,989) |
(193) |
|
Operating lease right-of-use assets |
489 |
395 |
1,680 |
1,351 |
|
Trade accounts payables |
6,799 |
1,228 |
11,697 |
3,255 |
|
Deferred revenues |
(16,572) |
926 |
10,621 |
2,461 |
|
Operating lease liabilities |
164 |
1,346 |
(904) |
91 |
|
Other current and long-term liabilities |
9,587 |
5,898 |
17,919 |
11,520 |
|
Accrued severance pay, net |
(133) |
162 |
(79) |
354 |
|
Net cash provided by operating activities |
20,263 |
6,476 |
132,262 |
60,253 |
|
Cash flows from investment activities: |
||||
|
Change in short-term and long-term interest-bearing bank deposits |
37,223 |
10,125 |
(31,456) |
(36,016) |
|
Investment in marketable securities |
(6,364) |
- |
(215,091) |
- |
|
Proceed from maturities of marketable securities |
5,141 |
- |
12,862 |
- |
|
Purchase of property and equipment |
(2,250) |
(1,570) |
(4,816) |
(6,443) |
|
Net cash provided by (used in) investing activities |
33,750 |
8,555 |
(238,501) |
(42,459) |
|
Cash flows from financing activities: |
||||
|
Proceeds from the issuance of convertible senior notes, net of issuance costs |
- |
193,588 |
- |
193,588 |
|
Purchases of treasury shares |
- |
(10,000) |
- |
(12,549) |
|
Proceeds from exercise of options |
- |
- |
11 |
367 |
|
Net cash provided by financing activities |
- |
183,588 |
11 |
181,406 |
|
Effect of exchange rate fluctuations on cash and cash equivalents |
558 |
972 |
622 |
1,356 |
|
Increase (decrease) in cash and cash equivalents |
54,571 |
199,591 |
(105,606) |
200,556 |
|
Cash and cash equivalents - beginning of period |
72,127 |
32,713 |
232,304 |
31,748 |
|
Cash and cash equivalents - end of period |
126,698 |
232,304 |
126,698 |
232,304 |
|
NOVA LTD. |
||||
|
Three months ended |
||||
|
December 31, |
September 30, |
December 31, |
||
|
GAAP gross profit |
68,249 |
65,238 |
42,323 |
|
|
Stock-based compensation* |
803 |
557 |
415 |
|
|
Non-GAAP gross profit |
69,052 |
65,795 |
42,738 |
|
|
GAAP gross margin as a percentage of revenues |
56% |
58% |
55% |
|
|
Non-GAAP gross margin as a percentage of revenues |
57% |
58% |
56% |
|
|
GAAP operating income |
29,893 |
35,526 |
16,846 |
|
|
Stock-based compensation* |
3,496 |
2,642 |
2,231 |
|
|
Acquisition related expenses |
999 |
- |
- |
|
|
Amortization of acquired intangible assets |
735 |
574 |
626 |
|
|
Income related to a transaction made by a financial institution without Company authorization |
- |
- |
(2,850) |
|
|
Non-GAAP operating income |
35,123 |
38,742 |
16,853 |
|
|
GAAP operating margin as a percentage of revenues |
25% |
32% |
22% |
|
|
Non-GAAP operating margin as a percentage of revenues |
29% |
34% |
22% |
|
|
GAAP net income |
22,226 |
30,335 |
13,657 |
|
|
Stock-based compensation* |
3,496 |
2,642 |
2,231 |
|
|
Acquisition related expenses |
999 |
- |
- |
|
|
Amortization of acquired intangible assets |
735 |
574 |
626 |
|
|
Amortization of debt discount and issuance costs |
1,075 |
1,069 |
868 |
|
|
Income related to a transaction made by a financial institution without Company authorization |
- |
- |
(2,850) |
|
|
Revaluation of operating lease liabilities |
907 |
217 |
1,364 |
|
|
Tax effect of non-GAAP adjustments |
(402) |
(291) |
(24) |
|
|
Taxes attributed to one-time elective tax settlement |
3,716 |
- |
- |
|
|
Non-GAAP net income |
32,752 |
34,546 |
15,872 |
|
|
GAAP basic earnings per share |
0.78 |
1.07 |
0.49 |
|
|
Non-GAAP basic earnings per share |
1.15 |
1.22 |
0.56 |
|
|
GAAP diluted earnings per share |
0.73 |
1.02 |
0.47 |
|
|
Non-GAAP diluted earnings per share |
1.08 |
1.16 |
0.55 |
|
|
Shares used for calculation of earnings per share |
||||
|
Basic |
28,539 |
28,429 |
28,146 |
|
|
Diluted |
30,285 |
29,858 |
28,999 |
|
* Stock-based compensation for the three months ended December 31, 2021, included in – Cost of revenues – 803; Research and development, net – 1,315; Sales and marketing – 717; General and administrative – 661
|
NOVA LTD. |
||
|
Year ended December 31, |
||
|
2021 |
2020 |
|
|
GAAP gross profit |
237,361 |
152,923 |
|
Stock-based compensation* |
2,160 |
1,364 |
|
Non-GAAP gross profit |
239,521 |
154,287 |
|
GAAP gross margin as a percentage of revenues |
57% |
57% |
|
Non-GAAP gross margin as a percentage of revenues |
58% |
57% |
|
GAAP operating income |
112,386 |
55,570 |
|
Stock-based compensation* |
10,488 |
6,949 |
|
Acquisition related expenses |
999 |
- |
|
Amortization of acquired intangible assets |
2,458 |
2,503 |
|
Expense related to a transaction made by a financial institution without Company authorization |
- |
150 |
|
Non-GAAP operating income |
126,331 |
65,172 |
|
GAAP operating margin as a percentage of revenues |
27% |
21% |
|
Non-GAAP operating margin as a percentage of revenues |
30% |
24% |
|
GAAP net income |
93,101 |
47,907 |
|
Stock-based compensation* |
10,488 |
6,949 |
|
Acquisition related expenses |
999 |
- |
|
Amortization of acquired intangible assets |
2,458 |
2,503 |
|
Amortization of debt discount and issuance costs |
4,229 |
868 |
|
Expense related to a transaction made by a financial institution without Company authorization |
- |
150 |
|
Revaluation of operating lease liabilities |
818 |
2,053 |
|
Tax effect of non-GAAP adjustments |
(1,140) |
(792) |
|
Taxes attributed to one-time elective tax settlement |
3,716 |
- |
|
Non-GAAP net income |
114,669 |
59,638 |
|
GAAP basic earnings per share |
3.28 |
1.71 |
|
Non-GAAP basic earnings per share |
4.04 |
2.12 |
|
GAAP diluted earnings per share |
3.12 |
1.65 |
|
Non-GAAP diluted earnings per share |
3.85 |
2.06 |
|
Shares used for calculation of earnings per share |
||
|
Basic |
28,372 |
28,097 |
|
Diluted |
29,816 |
28,950 |
* Stock-based compensation for the year ended December 31, 2021, included in – Cost of revenues – 2,160; Research and development, net – 3,994; Sales and marketing – 2,221; General and administrative – 2,113
|
NOVA LTD. |
||
|
Low |
High |
|
|
Estimated GAAP net income per diluted share |
0.78 |
0.96 |
|
Estimated non-GAAP items: |
||
|
Stock-based compensation |
0.12 |
0.12 |
|
Acquisition related expenses |
0.02 |
0.02 |
|
Amortization of acquired intangible assets |
0.06 |
0.06 |
|
Amortization of issuance costs |
0.01 |
0.01 |
|
Tax effect of non-GAAP adjustments |
(0.03) |
(0.03) |
|
Estimated non-GAAP net income per diluted share |
0.96 |
1.14 |
Rehovot, Israel – March 1, 2022 – Nova (Nasdaq: NVMI) announced today that its annual report on Form 20-F, containing audited consolidated financial statements for the year ended December 31, 2021, as filed with the Securities and Exchange Commission on March 1, 2022, is available through its website (https://www.novami.com/). Shareholders may receive a hard copy of the annual report free of charge upon request. This press release is being issued pursuant to Nasdaq Listing Rule 5250(d)(1)(C).
About Nova:
Nova is a leading innovator and key provider of material, optical and chemical metrology solutions for advanced process control 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 developing and producing the most advanced semiconductor devices. Nova’s unique capability to deliver innovative 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 worldwide. Additional information may be found at Nova’s website link – https://www.novami.com/.
Nova is traded on Nasdaq & TASE, Nasdaq ticker symbol NVMI.
Demonstrating In-Line Raman Spectroscopy (Nova Elipson™) for Nanosheet devices
Rehovot, Israel – April 26, 2022 – Nova (Nasdaq: NVMI) today announced that its co-authored paper with IBM Research on “In-Line Raman Spectroscopy for Stacked Nanosheet Device Manufacturing” has been selected as the winner of the Diana Nyyssonen award for “best paper at SPIE’s 2021 Advanced Lithography Symposia.” The award was granted to Nova and IBM on the opening day of the 2022 conference. The paper is a result of a continuous collaboration between the companies that drove numerous innovative joint development programs to enhance advanced chip manufacturing. The paper demonstrates the novel technologies Nova promotes in advanced process control by utilizing its unique and differentiated solutions. As part of the collaboration with IBM Research, Nova installed its most advanced portfolio at IBM Research’s lab in Albany, New York.
Monitoring and controlling strain in next-generation devices within intricate nanoscale structures is a new challenge. A suitable non-destructive and fast in-line technique is critical for successful research and development and manufacturing. The joint effort demonstrates in-line Raman spectroscopy for non-destructive strain metrology at multiple critical process steps throughout the front-end-of-line (FEOL) manufacturing cycle of stacked nanosheet devices. This paper establishes the importance of in-line Raman and support the growing demand for materials metrology in high volume manufacturing.
“Our in-line Raman spectroscopy work with Nova supports critical advances in logic scaling that offer new pathways of managing strain metrology for nanosheet transistors,” said Dr. Huiming Bu, Vice President, Hybrid Cloud Technology Research & Albany Operations at IBM Research. “This joint effort is indicative of the collaborative ecosystem IBM and partners have cultivated in Albany to steer our leading edge logic technology R&D roadmap.”
“We are honored to be selected for this prestigious award in collaboration with IBM Research,” said Dr. Shay Wolfling, Chief Technology Officer of Nova. “controlling Nanosheets strain at critical process steps is enabled by our innovative Nova ElipsonTM Raman Spectroscopy solution that is designed to measure materials properties such as stress, crystallinity, and surface properties for both Memory and Logic devices. The joint work with IBM Research has demonstrated that through collaboration with our customers, we can introduce new technologies, offering groundbreaking solutions to enable the transition to next-generation manufacturing.”
About Nova:
Nova is a leading innovator and key provider of material, optical and chemical metrology solutions for advanced process control 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 developing and producing the most advanced semiconductor devices. Nova’s unique capability to deliver innovative 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 worldwide. Additional information may be found at Nova’s website link – https://www.novami.com/.
Nova is traded on Nasdaq & TASE, Nasdaq ticker symbol NVMI.
Forward looking statement:
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 global 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; risks associated with violations of environmental, safety and health regulations; 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; difficulty to integrate current or future acquisitions; lengthy sales cycle and customer delays in orders; failures to attract, recruit and retain qualified employees due to intense competition for highly skilled personnel; 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, 2021 filed with the Securities and Exchange Commission on March 1, 2022. 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.
REHOVOT, Israel, May 12, 2022 /PRNewswire/ — Nova (Nasdaq: NVMI) today announced financial results for the first quarter ended March 31, 2022.
First Quarter 2022 Highlights:
- Record quarterly revenue of $134.0 million, exceeding the high end of a guidance of $132 million. Up 59% year over year
- Record GAAP net income of $34.2 million, or $1.07 per diluted share, exceeding the high end of a guidance of $0.96. Up 78% year over year on a per-share basis
- Record non-GAAP net income of $41.5 million, or $1.30 per diluted share, exceeding the high end of a guidance of $1.14. Up 86% year over year on a per-share basis
- Diversified geographic contributions led by China quarterly record revenue
- Strong customer mix driven by five major customers contributing over 10% each to products revenue, including the world leading IDM
|
GAAP Results ($K) |
|||
|
Q1 2022 |
Q4 2021 |
Q1 2021 |
|
|
Revenues |
$133,957 |
$121,521 |
$84,133 |
|
Net Income |
$34,162 |
$22,226 |
$17,616 |
|
Earnings per Diluted Share |
$1.07 |
$0.73 |
$0.60 |
|
Non-GAAP Results ($K) |
|||
|
Q1 2022 |
Q4 2021 |
Q1 2021 |
|
|
Net Income |
$ 41,487 |
$32,752 |
$20,485 |
|
Earnings per Diluted Share |
$ 1.30 |
$1.08 |
$0.70 |
A reconciliation between GAAP operating results and non-GAAP operating results is provided following the financial statements included in this release. See also “Use of Non-GAAP Adjusted Financial Measures” section.
Management Comments
“Nova delivered a robust opening for 2022, outperforming guidance and locking down eight consecutive quarters of revenue growth. Our remarkable performance was driven by our burgeoning position across various industry sectors and technology nodes,” commented Eitan Oppenhaim, President and Chief Executive Officer. “Following the ancosys acquisition, this is the first quarter that we are embedding chemical metrology sales results into our consolidated reporting. During the quarter, we continued to integrate ancosys as a division into Nova, developing a strong pipeline of products and opportunities in both the front-end and back-end semiconductor processes. The demand for Nova’s solutions across dimensional, materials and chemical applications, continues to be strong and along with our record quarterly bookings and yearly backlog, we expect to continue our solid growth this year as well.”
2022 Second Quarter Financial Outlook
Management provided an outlook for the second quarter, the period ending June 30, 2022. Based on current estimates, management expects:
- $133 million to $141 million in revenue
- $0.82 to $0.96 in diluted GAAP EPS
- $1.09 to $1.23 in diluted non-GAAP EPS
2022 First Quarter Results
Total revenues for the first quarter of 2022 were $134.0 million, an increase of 10% compared with the fourth quarter of 2021 and an increase of 59% compared with the first quarter of 2021.
Gross margin in the first quarter of 2022 was 57%, compared with 56% in the fourth quarter of 2021 and 57% in the first quarter of 2021.
Operating expenses in the first quarter of 2022 were $39.0 million, compared with $38.4 million in the fourth quarter of 2021 and $28.2 million in the first quarter of 2021.
On a GAAP basis, the Company reported net income of $34.2 million, or $1.07 per diluted share, in the first quarter of 2022. This is compared with net income of $22.2 million, or $0.73 per diluted share, in the fourth quarter of 2021, and net income of $17.6 million, or $0.60 per diluted share, in the first quarter of 2021.
On a non-GAAP basis, the Company reported net income of $41.5 million, or $1.30 per diluted share, in the first quarter of 2022. This is compared with net income of $32.8 million, or $1.08 per diluted share, in the fourth quarter of 2021, and net income of $20.5 million, or $0.70 per diluted share, in the first quarter of 2021.
Conference Call Information
Nova will host a conference call today, May 12, 2022, 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: 1-800-239-9838
ISRAEL TOLL-FREE Dial-in Number: 1-809-407-724
INTERNATIONAL Dial-in Number: 1-323-794-2551
At:
8:30 a.m. Eastern Time
5:30 a.m. Pacific Time
3:30 p.m. Israel Time
The conference call will also be webcast live from a Link on Nova’s website at https://www.novami.com/investors/events/.
A replay of the conference call will be available from May 12, 2022, at 11:30 a.m. Eastern Time to May 19, 2022, 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: 2902650
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 material, optical and chemical metrology solutions for advanced process control 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 developing and producing the most advanced semiconductor devices. Nova’s unique capability to deliver innovative 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 worldwide. Additional information may be found at Nova’s website link – https://www.novami.com/.
Nova is traded on the Nasdaq and 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, acquisition related expenses, inventory step-up and contingent consideration revaluation, stock-based compensation expenses, revaluation of operating lease liabilities, amortization of debt discount and issuance costs, tax effect of non-GAAP adjustment and taxes attributed to one-time elective tax settlement, 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 differ materially 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 our intellectual property; open source technology exposure; failure to compete effectively or to respond to the rapid technological changes; consolidation in our industry; difficulty in predicting 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; difficulty in integrating current or future acquisitions; 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, 2021 filed with the Securities and Exchange Commission on March 1, 2022. 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 |
March 31, |
December 31, |
|
Current assets |
||
|
Cash and cash equivalents |
105,193 |
126,698 |
|
Short-term interest-bearing bank deposits |
172,264 |
221,897 |
|
Marketable securities |
63,425 |
61,568 |
|
Trade accounts receivable, net |
77,985 |
68,446 |
|
Inventories |
96,193 |
78,665 |
|
Other current assets |
25,116 |
9,242 |
|
Total current assets |
540,176 |
566,516 |
|
Non-current assets |
||
|
Marketable securities |
132,011 |
137,415 |
|
Interest-bearing bank deposits |
3,595 |
3,672 |
|
Restricted interest-bearing bank deposits |
1,602 |
1,600 |
|
Deferred tax assets |
9,448 |
6,161 |
|
Severance pay funds |
1,308 |
1,327 |
|
Operating lease right-of-use assets |
45,809 |
30,627 |
|
Property and equipment, net |
44,367 |
34,460 |
|
Intangible assets, net |
49,308 |
2,601 |
|
Goodwill |
50,540 |
20,114 |
|
Other long-term assets |
744 |
661 |
|
Total non-current assets |
338,732 |
238,638 |
|
Total assets |
878,908 |
805,154 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
||
|
Current liabilities |
||
|
Convertible senior notes, net |
195,432 |
183,037 |
|
Trade accounts payable |
35,973 |
36,218 |
|
Deferred revenues |
14,583 |
15,338 |
|
Operating lease current liabilities |
5,897 |
4,452 |
|
Other current liabilities |
59,775 |
48,885 |
|
Total current liabilities |
311,660 |
287,930 |
|
Non-current liabilities |
||
|
Accrued severance pay |
3,728 |
3,686 |
|
Operating lease long-term liabilities |
47,293 |
33,450 |
|
Long-term deferred tax liability |
13,743 |
- |
|
Other long-term liabilities |
6,936 |
6,334 |
|
Total non-current liabilities |
71,700 |
43,470 |
|
Shareholders' equity |
495,548 |
473,754 |
|
Total liabilities and shareholders' equity |
878,908 |
805,154 |
|
NOVA LTD. |
||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||
|
(U.S. dollars in thousands, except per share data) - (Unaudited) |
||
|
Three months ended |
||
|
2022 |
2021 |
|
|
Revenues: |
||
|
Products |
109,912 |
66,283 |
|
Services |
24,045 |
17,850 |
|
Total revenues |
133,957 |
84,133 |
|
Total cost of revenues |
57,807 |
36,203 |
|
Gross profit |
76,150 |
47,930 |
|
Operating expenses: |
||
|
Research and development, net |
19,129 |
14,518 |
|
Sales and marketing |
12,246 |
9,540 |
|
General and administrative |
6,056 |
3,539 |
|
Amortization of intangible assets |
1,613 |
575 |
|
Total operating expenses |
39,044 |
28,172 |
|
Operating income |
37,106 |
19,758 |
|
Financing income, net |
1,218 |
424 |
|
Income before taxes on income |
38,324 |
20,182 |
|
Income tax expenses |
4,162 |
2,566 |
|
Net income for the period |
34,162 |
17,616 |
|
Earnings per share: |
||
|
Basic |
1.20 |
0.62 |
|
Diluted |
1.07 |
0.60 |
|
Shares used in calculation of earnings per share (in thousands): |
||
|
Basic |
28,579 |
28,214 |
|
Diluted |
31,968 |
29,306 |
|
NOVA LTD. |
||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||
|
(U.S. dollars in thousands) - (Unaudited) |
||
|
Three months ended |
||
|
2022 |
2021 |
|
|
Cash flows from operating activities: |
||
|
Net income |
34,162 |
17,616 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
||
|
Depreciation of property and equipment |
2,035 |
1,579 |
|
Amortization of intangible assets |
1,613 |
575 |
|
Amortization of premium and accretion of discount on marketable securities, net |
829 |
- |
|
Amortization of debt discount and issuance costs |
320 |
1,034 |
|
Share-based compensation |
3,860 |
2,222 |
|
Net effect of exchange rate fluctuation |
793 |
362 |
|
Changes in assets and liabilities: |
||
|
Trade accounts receivables, net |
470 |
3,494 |
|
Inventories |
(6,898) |
(4,417) |
|
Other current and long-term assets |
(15,996) |
(1,162) |
|
Deferred tax assets, net |
(2,609) |
(598) |
|
Operating lease right-of-use assets |
912 |
406 |
|
Trade accounts payables |
(1,941) |
439 |
|
Deferred revenues |
(744) |
9,021 |
|
Operating lease liabilities |
(806) |
(1,266) |
|
Other current and long-term liabilities |
(3,151) |
3,718 |
|
Accrued severance pay, net |
61 |
(38) |
|
Net cash provided by operating activities |
12,910 |
32,985 |
|
Cash flows from investment activities: |
||
|
Acquisition of subsidiary, net of acquired cash |
(78,469) |
- |
|
Change in short-term and long-term interest-bearing bank deposits |
49,632 |
(55,805) |
|
Investment in marketable securities |
(16,836) |
- |
|
Proceeds from maturities of marketable securities |
15,770 |
- |
|
Purchase of property and equipment |
(3,718) |
(488) |
|
Net cash used in investing activities |
(33,621) |
(56,293) |
|
Net cash provided by financing activities |
- |
- |
|
Effect of exchange rate fluctuations on cash and cash equivalents |
(794) |
(238) |
|
Changes in cash and cash equivalents |
(21,505) |
(23,546) |
|
Cash and cash equivalents - beginning of period |
126,698 |
232,304 |
|
Cash and cash equivalents - end of period |
105,193 |
208,758 |
|
NOVA LTD. |
||||
|
RECONCILIATION OF GAAP TO NON-GAAP RESULTS |
||||
|
(U.S. dollars in thousands, except percentage and per share data) - (Unaudited) |
||||
|
Three months ended |
||||
|
March 31, |
December 31, |
March 31, |
||
|
GAAP gross profit |
76,150 |
68,249 |
47,930 |
|
|
Stock-based compensation* |
883 |
803 |
418 |
|
|
Acquisition-related inventory step-up |
2,606 |
- |
- |
|
|
Non-GAAP gross profit |
79,639 |
69,052 |
48,348 |
|
|
GAAP gross margin as a percentage of revenues |
57% |
56% |
57% |
|
|
Non-GAAP gross margin as a percentage of revenues |
59% |
57% |
57% |
|
|
GAAP operating income |
37,106 |
29,893 |
19,758 |
|
|
Stock-based compensation* |
3,860 |
3,496 |
2,222 |
|
|
Acquisition-related inventory step-up |
2,606 |
- |
- |
|
|
Acquisition-related expenses and contingent consideration revaluation |
1,355 |
999 |
- |
|
|
Amortization of acquired intangible assets |
1,613 |
735 |
575 |
|
|
Non-GAAP operating income |
46,540 |
35,123 |
22,555 |
|
|
GAAP operating margin as a percentage of revenues |
28% |
25% |
23% |
|
|
Non-GAAP operating margin as a percentage of revenues |
35% |
29% |
27% |
|
|
GAAP net income |
34,162 |
22,226 |
17,616 |
|
|
Stock-based compensation* |
3,860 |
3,496 |
2,222 |
|
|
Acquisition-related inventory step-up |
2,606 |
- |
- |
|
|
Acquisition-related expenses and contingent consideration revaluation |
1,355 |
999 |
- |
|
|
Amortization of acquired intangible assets |
1,613 |
735 |
575 |
|
|
Amortization of debt discount and issuance costs |
320 |
1,075 |
1,034 |
|
|
Revaluation of operating lease liabilities |
(546) |
907 |
(860) |
|
|
Tax effect of non-GAAP adjustments |
(1,883) |
(402) |
(102) |
|
|
Taxes attributed to one-time elective tax settlement |
- |
3,716 |
- |
|
|
Non-GAAP net income |
41,487 |
32,752 |
20,485 |
|
|
GAAP basic earnings per share |
1.20 |
0.78 |
0.62 |
|
|
Non-GAAP basic earnings per share |
1.45 |
1.15 |
0.73 |
|
|
GAAP diluted earnings per share |
1.07 |
0.73 |
0.60 |
|
|
Non-GAAP diluted earnings per share |
1.30 |
1.08 |
0.70 |
|
|
Shares used for calculation of earnings per share |
||||
|
Basic |
28,579 |
28,539 |
28,214 |
|
|
Diluted |
31,968 |
30,285 |
29,306 |
|
* Stock-based compensation for the three months ended March 31, 2022 included in – Cost of revenues – 883; Research and development, net – 1,525; Sales and marketing – 786; General and administrative – 666
|
NOVA LTD. |
||
|
SUPPLEMENTAL INFORMATION - RECONCILIATION OF SECOND QUARTER 2022 |
||
|
GAAP TO NON-GAAP GUIDANCE |
||
|
(Unaudited) |
||
|
Low |
High |
|
|
Estimated GAAP net income per diluted share |
0.82 |
0.96 |
|
Estimated non-GAAP items: |
||
|
Stock-based compensation |
0.13 |
0.13 |
|
Amortization of acquired intangible assets |
0.06 |
0.06 |
|
Acquisition-related expenses and contingent consideration revaluation |
0.07 |
0.07 |
|
Acquisition-related inventory step-up |
0.01 |
0.01 |
|
Amortization of issuance costs |
0.01 |
0.01 |
|
Tax effect of non-GAAP adjustments |
(0.01) |
(0.01) |
|
Estimated non-GAAP net income per diluted share |
1.09 |
1.23 |
Rehovot, Israel, June 8, 2022 – Nova (Nasdaq: NVMI), a leading innovator and a key provider of metrology solutions for advanced process control used in semiconductor manufacturing, today announced that Eitan Oppenhaim, President & Chief Executive Officer, and Dror David, Chief Financial Officer, will attend SEMICON West and hold investor meetings on July 12 and 13 at the Zelos Hotel, 12 4th Street, San Francisco, CA.
SEMICON West will be held as a hybrid event from July 11-14, 2022, both live at San Francisco’s Moscone Center as well as in a virtual format. Concurrently, Nova’s management will hold meetings in a nearby location in San Francisco. To schedule a meeting and get all the pertinent details, please contact Miri Segal of MS-IR at [email protected].
SEMICON West is the world marketplace for microelectronics innovation, featuring nearly 1,500 international exhibitors from 54 different countries showcasing products and services across the manufacturing ecosystem – from design to fabrication. The global industry looks to SEMICON West for the most up-to-date information on the tools, technologies, and trends driving the design, manufacture, and business of microelectronics.
About Nova
Nova is a leading innovator and key provider of material, optical, and chemical metrology solutions for advanced process control 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 developing and producing the most advanced semiconductor devices. Nova’s unique capability to deliver innovative 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 worldwide. Additional information can be found at Nova’s website link – https://www.novami.com/. Nova is traded on Nasdaq & TASE, Nasdaq ticker: NVMI
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 differ materially 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 our intellectual property; open source technology exposure; failure to compete effectively or to respond to the rapid technological changes; consolidation in our industry; difficulty in predicting 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; difficulty in integrating current or future acquisitions; 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, 2021 filed with the Securities and Exchange Commission on March 1, 2022. 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.
Rehovot, Israel, July 7, 2022 – Nova (Nasdaq: NVMI) announced today that a leading analog and mixed-signal device manufacturer recently adopted the Nova VeraFlex® solution for advanced process control. Nova has already delivered numerous tools to several of the customer’s fabrication sites.
Analog device manufacturing today requires tighter process control for ultra-thin films to shorten the time for device qualification and yield growth. Nova’s x-ray photoelectron spectroscopy (XPS) is uniquely equipped for this purpose and was selected over other traditional methods due to its superior technology benefits. Over recent years Nova VeraFlex® has revolutionized materials metrology and is the industry standard for materials characterization, providing inline composition and thin film process control in various process steps.
“This selection signifies the great potential of our materials metrology portfolio for a variety of IC devices. This new win bolsters our strategy to grow our materials metrology beyond Nova’s traditional markets,” said Eitan Oppenhaim, President and Chief Executive Officer of Nova. “Our ability to develop unique and differentiated solutions allows us to offer a broader range of capabilities, which resonates well with various customers in different steps of the IC manufacturing value chain.”
About Nova
Nova is a leading innovator and key provider of material, optical, and chemical metrology solutions for advanced process control 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 developing and producing the most advanced semiconductor devices. Nova’s unique capability to deliver innovative 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 worldwide. Additional information can be found at Nova’s website link – https://www.novami.com/. Nova is traded on Nasdaq & TASE, Nasdaq ticker: NVMI
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 differ materially 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 our intellectual property; open source technology exposure; failure to compete effectively or to respond to the rapid technological changes; consolidation in our industry; difficulty in predicting 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; difficulty in integrating current or future acquisitions; 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, 2021, filed with the Securities and Exchange Commission on March 1, 2022. 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.
Rehovot, Israel, July 12, 2022 – Nova (Nasdaq: NVMI) announced today that a leading logic manufacturer recently selected Nova Metrion® for next-generation Integrated Circuit (IC) development. This recent deal is part of the Company’s long-term collaboration agreement with the customer to establish a full suite of Nova’s materials metrology portfolio for future device development. The customer previously installed a broad range of Nova’s advanced solutions, including Nova Elipson™ and Nova VeraFlex®.
Nova Metrion® is expected to replace traditional lab-based SIMS (secondary ion mass spectrometry) measurements, providing a depth profile of materials composition in next-generation devices. The system is designed from the ground up for a high-volume manufacturing environment. Nova Metrion® provides quantitative and actionable results with high-depth resolution and precision. This breakthrough technology enables advanced process control of complex and critical multilayer films.
“We are delighted with this close partnership that keeps yielding breakthrough solutions for logic manufacturing. Nova is unique in its ability to bridge the chasm between lab and fab environments, which is becoming a critical factor in enabling next-generation device manufacturing,” said Eitan Oppenhaim, President and Chief Executive Officer of Nova. “As production becomes more challenging than ever before, our advanced platforms allow customers to address the increasing need for process control. With multiple Nova Metrion® systems installed by various customers, we are advancing well towards establishing a new method of measuring material profiles in high-volume manufacturing.”
The company expects to recognize revenues from this selection by the end of calendar year 2022.
About Nova
Nova is a leading innovator and key provider of material, optical, and chemical metrology solutions for advanced process control 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 developing and producing the most advanced semiconductor devices. Nova’s unique capability to deliver innovative 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 worldwide. Additional information can be found at Nova’s website link – https://www.novami.com/. Nova is traded on Nasdaq & TASE, Nasdaq ticker: NVMI
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 differ materially 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 our intellectual property; open source technology exposure; failure to compete effectively or to respond to the rapid technological changes; consolidation in our industry; difficulty in predicting 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; difficulty in integrating current or future acquisitions; 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, 2021, filed with the Securities and Exchange Commission on March 1, 2022. 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.
Conference call to be held on the same day at 8:30 a.m. Eastern Time
Rehovot, Israel, July 12, 2022 – Nova (Nasdaq: NVMI) today announced that it expects to release its financial results for the second quarter of 2022 before the Nasdaq market opens on Thursday, August 4, 2022.
Q2 2022 Conference Call Details:
Eitan Oppenhaim, President and Chief Executive Officer, and Dror David, Chief Financial Officer, will host a conference call to review the Company’s second quarter 2022 financial results on August 4, 2022 at 8:30 a.m. Eastern Time.
To attend the conference call, please dial one of the following teleconferencing numbers. Please begin by placing your call at least 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: 1-855-327-6837
ISRAEL TOLL-FREE: 1-809-458-327
INTERNATIONAL: 1-631-891-4304
WEBCAST LINK: https://viavid.webcasts.com/starthere.jsp?ei=1555124&tp_key=3175622040
At:
8:30 a.m. Eastern Time
5:30 a.m. Pacific Time
3:30 p.m. Israel Time
The conference call will also be available via a live webcast from a link on Nova’s Investor Relations website – https://www.novami.com/investors/events/.
A replay of the conference call will be available from August 4, 2022, to August 11, 2022. To access the replay, please dial one of the following numbers:
Replay TOLL-FREE: 1-844-512-2921
Replay TOLL/INTERNATIONAL: 1-412-317-6671
Replay Pin Number: 10019423
About Nova:
Nova is a leading innovator and key provider of material, optical, and chemical metrology solutions for advanced process control 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 developing and producing the most advanced semiconductor devices. Nova’s unique capability to deliver innovative 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 worldwide. Additional information can be found at Nova’s website link – https://www.novami.com/.
Nova is traded on Nasdaq & TASE, Nasdaq ticker symbol NVMI.
Forward looking statement:
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 differ materially 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 our intellectual property; open source technology exposure; failure to compete effectively or to respond to the rapid technological changes; consolidation in our industry; difficulty in predicting 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; difficulty in integrating current or future acquisitions; 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, 2021, filed with the Securities and Exchange Commission on March 1, 2022. 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.
REHOVOT, Israel, Aug. 4, 2022 /PRNewswire/ — Nova (Nasdaq: NVMI) today announced financial results for the second quarter, the three-month period ended June 30, 2022.
Second Quarter 2022 Highlights:
- Record quarterly revenue of $141.6 million. Up 45% year over year
- GAAP net income of $34.9 million, or $1.09 per diluted share. Up 42% year over year on a per-share basis
- Non-GAAP net income of $39.5 million, or $1.24 per diluted share. Up 38% year over year on a per-share basis
- Record Optical CD Standalone revenue driven by multiple customer selections
- Diversified geographic mix, including four major territories contributing over 15% of revenue each
- Continued proliferation of Nova Metrion®. Selected by Advanced Logic Manufacturer
GAAP Results ($K)
|
Q2 2022 |
Q1 2022 |
Q2 2021 |
|
|
Revenues |
$141,628 |
$133,957 |
$97,746 |
|
Net Income |
$34,878 |
$34,162 |
$22,924 |
|
Earnings per Diluted Share |
$1.09 |
$1.07 |
$0.77 |
Non-GAAP Results ($K)
|
Q2 2022 |
Q1 2022 |
Q2 2021 |
|
|
Net Income |
$39,546 |
$41,487 |
$26,886 |
A reconciliation between GAAP operating results and non-GAAP operating results is provided following the financial statements included in this release. See also “Use of Non-GAAP Adjusted Financial Measures” section.
Management Comments
“Nova delivered sound results for the second quarter, demonstrating strength in all product lines across our dimensional, materials, and chemical metrology portfolio. Our business performance yielded another quarterly revenue record with both revenue and profitability reaching the high end of the guidance,” commented Eitan Oppenhaim, President and Chief Executive Officer. “Our solid backlog and the demand for our products across the various semiconductor technology nodes solidify our goal to continue our profitable growth this year as well. With the company revenues exceeding $500 million in the last four quarters, we mark the realization of our Nova 500 strategic plan, which cemented the fundamentals to support our future organic and inorganic growth in the long term.”
2022 Third Quarter Financial Outlook
Management provided an outlook for the third quarter, the period ending September 30, 2022. Based on current estimates, management expects:
- $137 million to $147 million in revenue
- $0.89 to $1.08 in diluted GAAP EPS
- $1.06 to $1.25 in diluted non-GAAP EPS
2022 Second Quarter Results
Total revenues for the second quarter of 2022 were $141.6 million, an increase of 6% compared with the first quarter of 2022 and an increase of 45% compared with the second quarter of 2021.
Gross margin in the second quarter of 2022 was 57%, same as the first quarter of 2022 and the second quarter of 2021.
Operating expenses in the second quarter of 2022 were $43.4 million, compared with $39.0 million in the first quarter of 2022 and $28.7 million in the second quarter of 2021.
On a GAAP basis, the Company reported net income of $34.9 million, or $1.09 per diluted share, in the second quarter of 2022. This is compared with net income of $34.2 million, or $1.07 per diluted share, in the first quarter of 2022, and net income of $22.9 million, or $0.77 per diluted share, in the second quarter of 2021.
On a non-GAAP basis, the Company reported net income of $39.5 million, or $1.24 per diluted share, in the second quarter of 2022. This is compared with net income of $41.5 million, or $1.30 per diluted share, in the first quarter of 2022, and net income of $26.9 million, or $0.90 per diluted share, in the second quarter of 2021.
Conference Call Information
Nova will host a conference call today, August 4, 2022, 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: 1-800-239-9838
ISRAEL TOLL-FREE Dial-in Number: 1-809-407-724
INTERNATIONAL Dial-in Number: 1-323-794-2551
At:
8:30 a.m. Eastern Time
5:30 a.m. Pacific Time
3:30 p.m. Israel Time
The conference call will also be webcast live from a Link on Nova’s website at https://www.novami.com/investors/events/.
A replay of the conference call will be available from August 4, 2022, at 11:30 a.m. Eastern Time to August 11, 2022, 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: 2902650
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 material, optical and chemical metrology solutions for advanced process control 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 developing and producing the most advanced semiconductor devices. Nova’s unique capability to deliver innovative 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 worldwide. Additional information may be found on Nova’s website link – https://www.novami.com/.
Nova is traded on the Nasdaq and 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, acquisition related expenses, inventory step-up and contingent consideration revaluation, stock-based compensation expenses, 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 differ materially 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 our intellectual property; open source technology exposure; failure to compete effectively or to respond to the rapid technological changes; consolidation in our industry; difficulty in predicting 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; difficulty in integrating current or future acquisitions; 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, 2021 filed with the Securities and Exchange Commission on March 1, 2022. 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, 2022 |
December 31, 2021 |
|
Current assets |
||
|
Cash and cash equivalents |
170,297 |
126,698 |
|
Short-term interest-bearing bank deposits |
105,393 |
221,897 |
|
Marketable securities |
88,622 |
61,568 |
|
Trade accounts receivable, net |
94,559 |
68,446 |
|
Inventories |
101,633 |
78,665 |
|
Other current assets |
17,326 |
9,242 |
|
Total current assets |
577,830 |
566,516 |
|
Non-current assets |
||
|
Marketable securities |
120,937 |
137,415 |
|
Interest-bearing bank deposits |
3,263 |
3,672 |
|
Restricted interest-bearing bank deposits |
1,600 |
1,600 |
|
Deferred tax assets |
11,306 |
6,161 |
|
Severance pay funds |
1,198 |
1,327 |
|
Operating lease right-of-use assets |
44,873 |
30,627 |
|
Property and equipment, net |
45,781 |
34,460 |
|
Intangible assets, net |
45,456 |
2,601 |
|
Goodwill |
48,534 |
20,114 |
|
Other long-term assets |
723 |
661 |
|
Total non-current assets |
323,671 |
238,638 |
|
Total assets |
901,501 |
805,154 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
||
|
Current liabilities |
||
|
Convertible senior notes, net |
- |
183,037 |
|
Trade accounts payable |
36,819 |
36,218 |
|
Deferred revenues |
19,829 |
15,338 |
|
Operating lease current liabilities |
5,727 |
4,452 |
|
Other current liabilities |
53,713 |
48,885 |
|
Total current liabilities |
116,088 |
287,930 |
|
Non-current liabilities |
||
|
Convertible senior notes, net |
195,750 |
- |
|
Accrued severance pay |
3,628 |
3,686 |
|
Operating lease long-term liabilities |
43,301 |
33,450 |
|
Long-term deferred tax liability |
12,593 |
- |
|
Other long-term liabilities |
7,627 |
6,334 |
|
Total non-current liabilities |
262,899 |
43,470 |
|
Shareholders' equity |
522,514 |
473,754 |
|
Total liabilities and shareholders' equity |
901,501 |
805,154 |
|
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, |
|||
|
2022 |
2021 |
2022 |
2021 |
|
|
Revenues: |
||||
|
Products |
114,120 |
78,293 |
224,032 |
144,576 |
|
Services |
27,508 |
19,453 |
51,553 |
37,303 |
|
Total revenues |
141,628 |
97,746 |
275,585 |
181,879 |
|
Total cost of revenues |
61,240 |
41,802 |
119,047 |
78,005 |
|
Gross profit |
80,388 |
55,944 |
156,538 |
103,874 |
|
Operating expenses: |
||||
|
Research and development, net |
22,115 |
15,341 |
41,244 |
29,859 |
|
Sales and marketing |
12,342 |
9,432 |
24,588 |
18,972 |
|
General and administrative |
7,455 |
3,388 |
13,511 |
6,927 |
|
Amortization of intangible assets |
1,513 |
574 |
3,126 |
1,149 |
|
Total operating expenses |
43,425 |
28,735 |
82,469 |
56,907 |
|
Operating income |
36,963 |
27,209 |
74,069 |
46,967 |
|
Financing income (expense), net |
3,568 |
(1,150) |
4,786 |
(726) |
|
Income before taxes on income |
40,531 |
26,059 |
78,855 |
46,241 |
|
Income tax expenses |
5,653 |
3,135 |
9,815 |
5,701 |
|
Net income for the period |
34,878 |
22,924 |
69,040 |
40,540 |
|
Earnings per share: |
||||
|
Basic |
1.22 |
0.81 |
2.41 |
1.43 |
|
Diluted |
1.09 |
0.77 |
2.16 |
1.37 |
|
Shares used in calculation of earnings per share |
||||
|
Basic |
28,688 |
28,304 |
28,662 |
28,259 |
|
Diluted |
31,902 |
29,815 |
31,963 |
29,561 |
|
NOVA LTD. |
||||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||
|
(U.S. dollars in thousands) - (Unaudited) |
||||
|
Three months ended |
Six months ended |
|||
|
2022 |
2021 |
2022 |
2021 |
|
|
Cash flows from operating activities: |
||||
|
Net income |
34,878 |
22,924 |
69,040 |
40,540 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
||||
|
Depreciation of property and equipment |
2,001 |
1,596 |
4,036 |
3,175 |
|
Amortization of intangible assets |
1,513 |
574 |
3,126 |
1,149 |
|
Amortization of premium and accretion of discount on marketable securities, net |
715 |
283 |
1,544 |
283 |
|
Amortization of debt discount and issuance costs |
318 |
1,051 |
638 |
2,085 |
|
Share-based compensation |
4,072 |
2,128 |
7,932 |
4,350 |
|
Net effect of exchange rate fluctuation |
2,178 |
(350) |
2,971 |
12 |
|
Changes in assets and liabilities: |
||||
|
Trade accounts receivables, net |
(17,264) |
1,613 |
(16,794) |
5,107 |
|
Inventories |
(5,637) |
(5,831) |
(12,535) |
(10,248) |
|
Other current and long-term assets |
7,925 |
554 |
(8,071) |
(608) |
|
Deferred tax assets, net |
(2,331) |
(1,116) |
(4,940) |
(1,714) |
|
Operating lease right-of-use assets |
1,123 |
411 |
2,035 |
817 |
|
Trade accounts payables |
881 |
1,932 |
(1,060) |
2,371 |
|
Deferred revenues |
5,266 |
(147) |
4,522 |
8,874 |
|
Operating lease liabilities |
(4,332) |
81 |
(5,138) |
(1,185) |
|
Other current and long-term liabilities |
(6,234) |
587 |
(9,385) |
4,305 |
|
Accrued severance pay, net |
10 |
93 |
71 |
55 |
|
Net cash provided by operating activities |
25,082 |
26,383 |
37,992 |
59,368 |
|
Cash flows from investment activities: |
||||
|
Acquisition of subsidiary, net of acquired cash |
- |
- |
(78,469) |
- |
|
Change in short-term and long-term interest-bearing bank deposits |
66,872 |
2,461 |
116,504 |
(53,344) |
|
Investment in marketable securities |
(34,691) |
(101,466) |
(51,527) |
(101,466) |
|
Proceeds from maturities of marketable securities |
18,428 |
1,200 |
34,198 |
1,200 |
|
Purchase of property and equipment |
(4,239) |
(1,318) |
(7,957) |
(1,806) |
|
Net cash provided by (used in) investing activities |
46,370 |
(99,123) |
12,749 |
(155,416) |
|
Cash flows from investment activities: |
||||
|
Purchases of treasury shares |
(4,270) |
- |
(4,270) |
- |
|
Proceeds from exercise of options |
82 |
- |
82 |
- |
|
Net cash used in financing activities |
(4,188) |
- |
(4,188) |
- |
|
Effect of exchange rate fluctuations on cash and cash equivalents |
(2,160) |
272 |
(2,954) |
34 |
|
Changes in cash and cash equivalents |
65,104 |
(72,468) |
43,599 |
(96,014) |
|
Cash and cash equivalents - beginning of period |
105,193 |
208,758 |
126,698 |
232,304 |
|
Cash and cash equivalents - end of period |
170,297 |
136,290 |
170,297 |
136,290 |
|
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, |
March 31, |
June 30, |
||
|
GAAP gross profit |
80,388 |
76,150 |
55,944 |
|
|
Stock-based compensation* |
1,021 |
883 |
382 |
|
|
Acquisition-related inventory step-up |
366 |
2,606 |
- |
|
|
Non-GAAP gross profit |
81,775 |
79,639 |
56,326 |
|
|
GAAP gross margin as a percentage of revenues |
57 % |
57 % |
57 % |
|
|
Non-GAAP gross margin as a percentage of revenues |
58 % |
59 % |
58 % |
|
|
GAAP operating income |
36,963 |
37,106 |
27,209 |
|
|
Stock-based compensation* |
4,072 |
3,860 |
2,128 |
|
|
Acquisition-related inventory step-up |
366 |
2,606 |
- |
|
|
Acquisition-related expenses and contingent consideration revaluation |
2,392 |
1,355 |
- |
|
|
Amortization of acquired intangible assets |
1,513 |
1,613 |
574 |
|
|
Non-GAAP operating income |
45,306 |
46,540 |
29,911 |
|
|
GAAP operating margin as a percentage of revenues |
26 % |
28 % |
28 % |
|
|
Non-GAAP operating margin as a percentage of revenues |
32 % |
35 % |
31 % |
|
|
GAAP net income |
34,878 |
34,162 |
22,924 |
|
|
Stock-based compensation* |
4,072 |
3,860 |
2,128 |
|
|
Acquisition-related inventory step-up |
366 |
2,606 |
- |
|
|
Acquisition-related expenses and contingent consideration revaluation |
2,392 |
1,355 |
- |
|
|
Amortization of acquired intangible assets |
1,513 |
1,613 |
574 |
|
|
Amortization of debt discount and issuance costs |
318 |
320 |
1,051 |
|
|
Revaluation of operating lease liabilities |
(3,350) |
(546) |
554 |
|
|
Tax effect of non-GAAP adjustments |
(643) |
(1,883) |
(345) |
|
|
Non-GAAP net income |
39,546 |
41,487 |
26,886 |
|
|
GAAP basic earnings per share |
1.22 |
1.20 |
0.81 |
|
|
Non-GAAP basic earnings per share |
1.38 |
1.45 |
0.95 |
|
|
GAAP diluted earnings per share |
1.09 |
1.07 |
0.77 |
|
|
Non-GAAP diluted earnings per share |
1.24 |
1.30 |
0.90 |
|
|
Shares used for calculation of earnings per share |
||||
|
Basic |
28,688 |
28,579 |
28,304 |
|
|
Diluted |
31,902 |
31,968 |
29,815 |
|
* Stock-based compensation for the three months ended June 30, 2022 included in: Cost of revenues – 1,021; Research and development, net – 1,694; Sales and marketing – 756; General and administrative – 601.
|
NOVA LTD. |
||
|
SUPPLEMENTAL INFORMATION - RECONCILIATION OF THIRD QUARTER 2022 |
||
|
GAAP TO NON-GAAP GUIDANCE |
||
|
(Unaudited) |
||
|
Low |
High |
|
|
Estimated GAAP net income per diluted share |
0.89 |
1.08 |
|
Estimated non-GAAP items: |
||
|
Stock-based compensation |
0.15 |
0.15 |
|
Amortization of acquired intangible assets |
0.05 |
0.05 |
|
Amortization of issuance costs |
0.01 |
0.01 |
|
Tax effect of non-GAAP adjustments |
(0.04) |
(0.04) |
|
Estimated non-GAAP net income per diluted share |
1.06 |
1.25 |
Rehovot, Israel, August 4, 2022 – Nova (Nasdaq: NVMI), a leading innovator and a key provider of metrology solutions for advanced process control used in semiconductor manufacturing, today announced that Dror David, Chief Financial Officer, will participate in the following virtual investor conferences in August:
- Bank of America SMID Cap Ideas Conference
Format: Virtual presentation and one-on-one meetings
When: Tuesday, Aug. 9 at 10:30 am ET
- 3rd Annual Needham Virtual Semiconductor and SemiCap 1×1 Conference
Format: Virtual one-on-one meetings
When: Wednesday, Aug. 24 and Thursday, Aug. 25
Management will be available for one-on-one meetings during both conferences. To schedule a meeting, contact your Bank of America or Needham representative. A replay of the Bank of America presentation will be available for 90 days following the event and can be accessed through this link – https://bofa.veracast.com/webcasts/bofa/smidcap2h022/id98F310.cfm
A live webcast of the Bank of America presentation will be available from Nova’s investor relations page link https://www.novami.com/investors/lobby/
About Nova
Nova is a leading innovator and key provider of material, optical, and chemical metrology solutions for advanced process control 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 developing and producing the most advanced semiconductor devices. Nova’s unique capability to deliver innovative 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 worldwide. Additional information can be found at Nova’s website link – https://www.novami.com/.
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 differ materially 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 our intellectual property; open source technology exposure; failure to compete effectively or to respond to the rapid technological changes; consolidation in our industry; difficulty in predicting 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; difficulty in integrating current or future acquisitions; 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, 2021 filed with the Securities and Exchange Commission on March 1, 2022. 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.