Le Lézard
Classified in: Science and technology, Business, Covid-19 virus
Subjects: ERN, ERP

Nova Reports Results for Second Quarter of 2022


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.

Nova Logo
Second Quarter 2022 Highlights:
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

Earnings per Diluted Share

$1.24

$1.30

$0.90

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:

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
 (in thousands):





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
June 30,

Six months ended
June 30,


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,
2022

March 31,
2022

June 30,
2021

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
(in thousands):




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

 

 

Company Contact:
Dror David, Chief Financial Officer
Tel: +972-73-229-5760
E-mail - [email protected]
Nova website link - https://www.novami.com/

Investor Relations Contact:
Miri Segal MS-IR LLC
Tel: +917-607-8654
E-mail - [email protected]

SOURCE Nova


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