REHOVOT, Israel, May 5 /PRNewswire-FirstCall/ -- Nova Measuring Instruments Ltd. (NASDAQ:NVMI), provider of leading edge stand alone metrology and the market leader of integrated metrology solutions to the semiconductor process control market, today reported its 2008 first quarter financial results.
Highlights for the first quarter of 2008 - Revenues of $12.8 million - Gross margin of 40% - Non-GAAP net income of $0.2 million, or $0.01 per diluted share;
Breakeven GAAP net income reflect effective cost control initiatives 2008 First Quarter Results
Total revenues for the first quarter of 2008 were $12.8 million, a decrease of 4% relative to the first quarter of 2007, and a decrease of 20% relative to the fourth quarter of 2007.
Gross margin for the first quarter of 2008 was 40%, compared with 44% for the first quarter of 2007, and compared with 43% for the fourth quarter of 2007.
Operating expenses in the first quarter of 2008 decreased to $5.3 million, compared with $6.6 million in the first quarter of 2007, and $6.3 million in the fourth quarter of 2007.
On a GAAP basis, the company reported breakeven net results in the first quarter of 2008, as compared to a net loss of $0.6 million, or $0.04 per share, for the first quarter of 2007, and a net loss of $0.7 million, or $0.04 per share, for the fourth quarter of 2007.
On a non-GAAP basis, the company reported net income of $0.2 million, or $0.01 per diluted share, for the first quarter of 2008. This compares with a non-GAAP net loss of $0.3 million, or $0.04 per share, in the first quarter of 2007, and a non-GAAP net income of $1 million, or $0.05 per diluted share, in the fourth quarter of 2007.
The company used $1.9 million in cash flow for operating activities during the first quarter of 2008.
Management Comments "While our industry is experiencing a steeper decline in 2008 than had originally been expected, we are pleased that our Q1 revenues were down only marginally from the first quarter a year ago," commented Gabi Seligsohn, President & CEO. "Most significantly, we read the change in our market environment early and our cost cutting initiatives have already reduced our expense level by around 15% and enabled us to report a positive net income for the quarter." "Business wise, during the first quarter, we continued to strengthen our market position, receiving a follow on order combining our stand-alone and integrated metrology platforms from a major Chinese foundry," continued Seligsohn.
"It is evident that the current market environment will have an effect on us, as we are not immune to the weakness in capital spending and overall economic conditions. However, we believe that our strong execution and tight cost controls, combined with our exposure to the best-performing segments of the market, will help us mitigate the effects of these negative factors which are beyond our control. We still expect to outperform the industry in 2008, and we believe that we are now well structured to weather the current cyclical downturn, coming out a stronger and leaner company." The Company will host a conference call today, May 5, 2008, at 10:00am EST. To participate, please dial in the US: 1-888-281-1167; or internationally: +972-3-918-0620. A recording of the call will be available on Nova's website, within 24 hours following the end of the call.
In addition, the conference call will also be webcast live from a link on Nova's website at http://www.nova.co.il/.
This press release provides financial measures that exclude non-cash charges for inventory write-off, stock-based compensation and impairment charges and are therefore not calculated in accordance with generally accepted accounting principles (GAAP). Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding Nova's performance because they reflect our operational results and enhances management's and investors' ability to evaluate Nova's performance before charges considered by management to be outside Nova's ongoing operating results.
The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management believes that it is in the best interest of its investors to provide financial information that will facilitate comparison of both historical and future results and allows greater transparency to supplemental information used by management in its financial and operational decision making. A reconciliation of each GAAP to non-GAAP financial measure discussed in this press release is contained in the accompanying financial tables.
About Nova Nova Measuring Instruments Ltd. develops, produces and markets advanced integrated and stand alone metrology solutions for the semiconductor manufacturing industry. Nova is traded on the NASDAQ & TASE under the symbol NVMI. The Company's website is http://www.nova.co.il/.
This press release contains forward-looking statements within the meaning of safe harbor provisions of the Private Securities Litigation Reform Act of 1995 relating to future events or our future performance, such as statements regarding trends, demand for our products, expected deliveries, transaction, expected revenues, operating results, earnings and profitability. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied in those forward-looking statements. These risks and other factors include but are not limited to: our dependency on a single integrated process control product line; the highly cyclical nature of the markets we target; our inability to reduce spending during a slowdown in the semiconductor industry; our ability to respond effectively on a timely basis to rapid technological changes; risks associated with our dependence on a single manufacturing facility; our ability to expand our manufacturing capacity or marketing efforts to support our future growth; our dependency on a small number of large customers and small number of suppliers; risks related to our intellectual property; changes in customer demands for our products; new product offerings from our competitors; changes in or an inability to execute our business strategy; unanticipated manufacturing or supply problems; changes in tax requirements; changes in customer demand for our products and risks related to our operations in Israel. We cannot guarantee future results, levels of activity, performance or achievements. The matters discussed in this press release also involve risks and uncertainties summarized under the heading "Risk Factors" in Nova's Annual Report on Form 20-F for the year ended December 31, 2007 filed with the Securities and Exchange Commission on March 28, 2008. These factors are updated from time to time through the filing of reports and registration statements with the Securities and Exchange Commission. Nova Measuring Instruments Ltd. does not assume any obligation to update the forward-looking information contained in this press release.
NOVA MEASURING INSTRUMENTS LTD. CONSOLIDATED BALANCE SHEET
(U.S. dollars in thousands) As of As of
March 31 December 31,
2008 2007 CURRENT ASSETS
Cash and cash equivalents 10,332 15,324
Held to maturity securities 6,755 2,251
Trade accounts receivable 8,371 9,146
Inventories 9,872 8,524
Other current assets 2,398 1,703
37,728 36,948
LONG-TERM ASSETS
Long-term interest-bearing bank deposits 1,307 2,245
Long-term investments 1,240 1,562
Held to maturity securities 504 1,489
Other Long-term assets 171 169
Severance pay funds 2,701 2,488
5,923 7,953 FIXED ASSETS, NET 3,687 3,484 Total assets 47,338 48,385 CURRENT LIABILITIES
Trade accounts payable 6,830 7,482
Deferred income 1,384 1,496
Other current liabilities 6,990 7,310
15,204 16,288 LONG-TERM LIABILITIES
Liability for employee severance pay 3,853 3,561
Deferred income 844 901
Other long-term liability 51 51
4,748 4,513 SHAREHOLDERS' EQUITY 27,386 27,584 Total liabilities and shareholders'
equity 47,338 48,385 NOVA MEASURING INSTRUMENTS LTD. QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except per share data) Three months ended
March 31, December 31, March 31,
2008 2007 2007 REVENUES
Product sales 9,614 12,831 10,443
Services 3,197 3,177 2,924
12,811 16,008 13,367 COST OF REVENUES
Product sales 4,488 6,341 4,868
Services 3,157 2,751 2,666
7,645 9,092 7,534 GROSS PROFIT 5,166 6,916 5,833 OPERATING EXPENSES
Research & Development expenses, net 1,905 2,410 2,333
Sales & Marketing expenses 2,440 2,896 2,198
General & Administration expenses 904 944 2,112
5,249 6,250 6,643 OPERATING INCOME (LOSS) (83) 666 (810) Interest income, net 124 23 169
Impairment of short-term investments -- (1,366) -- NET INCOME (LOSS) FOR THE PERIOD 41 (677) (641) Net income (loss) per share:
Basic 0.00 (0.04) (0.04)
Diluted 0.00 Shares used for calculation of net
income (loss) per share:
Basic 19,338 19,256 17,239
Diluted 19,541
NOVA MEASURING INSTRUMENTS LTD. QUARTERLY CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands) Three months ended
March 31, December 31, March 31,
2008 2007 2007 CASH FLOW - OPERATING ACTIVITIES Net income (loss) for the period 41 (677) (641)
Adjustments to reconcile net loss to
net cash
used in operating activities: Depreciation and amortization 365 367 437
Amortization of deferred stock-based
Compensation 164 282 264
Increase in liability for employee
termination benefits, net 59 116 4 Impairment of short-term investments -- 1,366 -- Net recognized losses (gains) on
Investments 12 11 (59)
Decrease (increase) in trade accounts
Receivables 775 1,109 1,456
Decrease (increase) in inventories (1,360) (1,947) (559)
Decrease (increase) in other current
and long term assets (865) 80 252
Increase (decrease) in trade accounts
payables and other long term
liabilities (652) 2,165 351
Increase (decrease) in current
Liabilities (225) 1,099 (457)
Increase (decrease) in short and long
term deferred income (169) 46 (83)
Net cash from (used in) operating
Activities (1,854) 4,017 965 CASH FLOW - INVESTMENT ACTIVITIES Decrease in short-term
interest-bearing bank deposits -- -- 283
Decrease (increase) in short-term
investments -- -- (2,600)
Proceeds from held to maturity
securities 2,205 900 851
Proceeds from long-term deposits 938 -- 1,507
Investment in held to maturity
securities (5,736) -- (1,496)
Investment in long-term
interest-bearing bank deposits -- (44) (1,000)
Additions to fixed assets (557) (364) (101)
Net cash from (used in) investment
Activities (3,150) 492 (2,556) CASH FLOW - FINANCING ACTIVITIES Shares issued in private placement -- -- 4,982
Shares issued under employee
share-based plans 12 111 90
Net cash from (used in) financing
Activities 12 111 5,072 Increase (decrease) in cash and cash
Equivalents (4,992) 4,620 3,481
Cash and cash equivalents - beginning
of period 15,324 10,704 4,176
Cash and cash equivalents - end of
period 10,332 15,324 7,657
NOVA MEASURING INSTRUMENTS LTD. DISCLOSURE OF NON-GAAP QUARTERLY NET INCOME (LOSS)
(U.S. dollars in thousands, except per share data) Three months ended
March 31, December 31, March 31,
2008 2007 2007
GAAP Net income (loss) for the quarter 41 (677) (641) Non-GAAP Adjustments:
Stock based compensation expenses 164 282 264
Amortization of intangible assets -- -- 107
Impairment of short-term investments -- 1,366 -- Non-GAAP Net income (loss) for the
quarter 205 971 (270) Non-GAAP net income (loss) per share:
Basic 0.01 0.05 (0.04)
Diluted 0.01 0.05 Shares used for calculation of
non-GAAP net income (loss) per share:
Basic 19,338 19,256 17,239
Diluted 19,541 19,572
http://www.nova.co.il/ Company Contact: Dror David, Chief Financial Officer, Nova Measuring Instruments Ltd., Tel: +972-8-938-7505, E-mail: ; Investor relations: Ehud Helft / Kenny Green, GK Investor Relations, Tel: +1-646-201-9246, E-mail: DATASOURCE: Nova Measuring Instruments Ltd CONTACT: Company Contact: Dror David, Chief Financial Officer, Nova Measuring Instruments Ltd., Tel: +972-8-938-7505, E-mail: ; Investor relations: Ehud Helft / Kenny Green, GK Investor Relations, Tel: +1-646-201-9246, E-mail:
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