Nova Measuring Instruments Ltd News
Nova Announces 2008 First Quarter Results
REHOVOT,
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
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
On a GAAP basis, the company reported breakeven net results in the first quarter of 2008, as compared to a net loss of
On a non-GAAP basis, the company reported net income of
The company used
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
"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,
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
NOVA MEASURING INSTRUMENTS LTD. CONSOLIDATED BALANCE SHEET (U.S. dollars in thousands) As of As of March 31December 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
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SOURCE Nova Measuring Instruments Ltd
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