Nova Reports Record Results for First Quarter 2017

REHOVOT, Israel, May 9, 2017 /PRNewswire/ -- 

Nova (Nasdaq: NVMI), a leading innovator and a key provider of metrology solutions for advanced process control used in semiconductor manufacturing, today reported record financial results for the first quarter 2017, the period ended March 31, 2017.

First Quarter 2017 Highlights:

• Record quarterly revenue of $54.4 million, up 8% sequentially and 60% year-over-year, above guidance of $50 to $54 million
• GAAP net income of $13.4 million, or $0.48 per diluted share, up 60% sequentially and 336% year-over-year on a per-share basis, exceeding guidance of $0.31 to $0.39 per share
• Non-GAAP net income of $14.1 million, or $0.50 per diluted share, up 19% sequentially and 212% year-over-year on a per-share basis, exceeding guidance of $0.37 to $0.45 per share
• Record quarterly revenue from Integrated Metrology solutions
• Record quarterly bookings from 3D-NAND

A reconciliation between GAAP operating results and non-GAAP operating results is provided following the financial statements that are part of this release. Non-GAAP results exclude amortization of acquired intangible assets, net adjustments of deferred tax assets and stock-based compensation expenses.

Management Comments

"Nova continued to perform well this quarter, setting new business and financial records that demonstrate our growing competitive strength across the market segments we serve," commented Eitan Oppenhaim, President and Chief Executive Officer of Nova. "Growing demand for our unique value proposition, which is becoming a key enabler for our customers' transition to the most advanced products, enabled us to achieve these outstanding milestones. Nova's solid start for the year, along with the second quarter guidance, supports our outlook for another strong year, in which we continue to effectively execute the Company's growth plans and expand our position within leading edge customers."

2017 Second Quarter Financial Outlook

Management provided an outlook for the second quarter, the period ending June 30, 2017. Based on current estimates, management expects:

• $52 million to $56 million in revenue
• $0.32 to $0.39 in diluted GAAP EPS
• $0.38 to $0.46 in diluted non-GAAP EPS

2017 First Quarter Results

Total revenues for the first quarter of 2017 were $54.4 million, a sequential increase of 8% compared to the fourth quarter of 2016, and a year-over-year increase of 60% relative to the first quarter of 2016.

Gross margin for the first quarter of 2017 was 60%, compared sequentially with gross margin of 56% in the fourth quarter of 2016, and compared with gross margin of 54% in the first quarter of 2016.

Operating expenses in the first quarter of 2017 were $17.7 million. This is compared with $17.4 million in the fourth quarter of 2016 and compared with $15.7 million in the first quarter of 2016.

On a GAAP basis, the company reported net income of $13.4 million, or $0.48 per diluted share, in the first quarter of 2017. This is compared with $8.4 million, or $0.30 per diluted share, in the fourth quarter of 2016, and compared with net income of $2.9 million, or $0.11 per diluted share, in the first quarter of 2016.

On a non-GAAP basis, which excludes amortization of acquired intangible assets, net adjustments of deferred tax assets and stock-based compensation expenses, the company reported net income of $14.1 million, or $0.50 per diluted share, in the first quarter of 2017. This is compared with net income of $11.7 million, or $0.42 per diluted share, in the fourth quarter of 2016, and compared with net income of $4.5 million, or $0.16 per diluted share, in the first quarter of 2016.

Total cash reserves at March 31, 2017 were $115.8 million, compared to $91.7 million at December 31, 2016.

Conference Call Information

Nova will host a conference call today, May 9, 2017, at 9 a.m. Eastern Time, to discuss the financial results and future 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. Dial-in Number: 1-888-437-9364
ISRAEL Dial-in Number: 1 80 924 6042
INTERNATIONAL Dial-in Number: 1-719-325-2236
At:
9 a.m. Eastern Time
6 a.m. Pacific Time
4 p.m. Israeli Time

Please reference conference ID 6912093

The conference call will also be webcast live from a link on Nova's website at http://ir.novameasuring.com.

A replay of the conference call will be available from May 9, 2017 at 12 p.m. Eastern Time to May 16, 2017 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:  6912093

A replay will also be available for 90 days on Nova's website at http://ir.novameasuring.com.

About Nova: Nova delivers continuous innovation by providing advanced metrology solutions for the semiconductor manufacturing industry. Deployed with the world's largest integrated-circuit manufacturers, Nova's products deliver 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, supports the development and production of the most advanced devices in today's high-end semiconductor market. Nova's technical innovation and market leadership enable customers to improve process performance, enhance products' yields and accelerate time to market. Nova acts as a partner to semiconductor manufacturers from its offices around the world. Additional information may be found at www.novameasuring.com.

Nova is traded on the NASDAQ & TASE under the symbol NVMI.

This press release provides financial measures that exclude charges for amortization of acquired intangible assets, net adjustment of deferred tax assets and stock-based compensation expenses 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 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 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.

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 are 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: our dependency on three product lines; our dependency on a small number of large customers and small number of suppliers; the highly cyclical and competitive nature of the markets we target and we operate in; 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; our ability to recognize the benefits of ReVera acquisition and risks that the acquisition may disrupt current plans and operations and impact relationships with customers, distributors and suppliers; our dependency on PEMs; risks related to exclusivity obligations and non-limited liability that may be included in our commercial agreements and arrangements; our ability to retain our competitive position despite the ongoing consolidation in our industry; risks related to our dependence on our manufacturing facilities; risks related to changes in our order backlog; risks related to efforts to complete and integrate current and/or future acquisitions; risks related to the worldwide financial instabilities; risks related to our intellectual property; new product offerings from our competitors; unanticipated manufacturing or supply problems; risks related to government programs we participate in; risks related to taxation; changes in customer demand for our products; risks related to currency fluctuations, risks related to acquisitions we may pursue 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, 2016 filed with the Securities and Exchange Commission on March 3, 2017. 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.

(Tables to Follow)

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SOURCE Nova Measuring Instruments Ltd