6-K 1 zk2024740.htm 6-K

 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF 
THE SECURITIES EXCHANGE ACT OF 1934
 
For the month of August 2020

Commission File No.: 000-30668
 
NOVA MEASURING INSTRUMENTS LTD.
(Translation of registrant’s name into English)

5 David Fikes St., Rehovot
P.O.B 266
Israel
 (Address of principal executive offices)
 
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. 

Form 20-F ☒    Form 40-F ☐
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____ 
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____ 
 
Attached hereto and incorporated by way of reference herein is a press release issued by the Registrant and entitled: “Nova Reports Second Quarter 2020 Results”.

The GAAP financial statements tables included in the press release attached hereto are hereby incorporated by reference into the Registrant’s registration statements on Form S-8, filed with the Securities and Exchange Commission on the following dates: November 5, 2007 (File No. 333-147140); October 25, 2012 (File No. 333-184585), March 6, 2015 (File No. 333-202550); and August 25, 2017 (File No. 333-220158).

SIGNATURES 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. 

  
 
 
Date: August 4, 2020
 
NOVA MEASURING INSTRUMENTS LTD.
(Registrant)

By: /s/ Dror David
——————————————
Dror David
Chief Financial Officer




Company Contact:
Dror David, Chief Financial Officer
Nova Measuring Instruments Ltd.
Tel: +972-73-229-5760
E-mail: info@novami.com 
www.novami.com
Investor Relations Contact:
Miri Segal
MS-IR LLC
Tel: +917-607-8654
E-mail: msegal@ms-ir.com

Company Press Release
 
Nova Reports Second Quarter 2020 Results

Rehovot, Israel, August 4, 2020 - Nova (Nasdaq: NVMI) today announced financial results for the second quarter 2020, the period ended June 30, 2020.

Second Quarter 2020 Highlights:
 

Quarterly revenue of $62.6 million, meeting guidance of $58 million to $66 million
 

GAAP net income of $8.7 million, or $0.30 per diluted share, meeting guidance of $0.29 to $0.43 per share
 

Non-GAAP net income of $13.8 million, or $0.48 per diluted share, meeting guidance of $0.37 to $0.51 per share


Balanced revenue mix with five major customers contributing over 10% each to the geographically diverse product revenue


Record quarterly integrated metrology revenues, driven by growing demand for advanced integrated solutions across different technology nodes

GAAP Results ($K)
 
Q2 2020
Q1 2020
Q2 2019
Revenues
$62,586
$61,022
$51,120
Net Income
$8,672
$11,682
$6,468
Earnings per Diluted Share
$0.30
$0.41
$0.23
NON-GAAP Results ($K)
 
Q2 2020
Q1 2020
Q2 2019
Net Income
$13,774
$13,481
$9,007
Earnings per Diluted Share
$0.48
$0.47
$0.32
 
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, stock-based compensation expenses, expense related to a transaction made by a financial institution without Company authorization, facilities transition costs, revaluation of long-term liabilities and tax effect of non-GAAP adjustments.
 
Management Comments
 
“Our second quarter results met our expectations and Company guidance, highlighting our ability to successfully navigate through the dynamic global environment caused by the COVID-19 pandemic. The success of our decisive actions to secure our supply chain and production capabilities, while ensuring business continuity, is evident in our achievements this quarter. During the second quarter, we continued to execute well and achieved important milestones in our new product rollout plans with several leading customers.” stated Eitan Oppenhaim, President and Chief Executive Officer. “Despite various market uncertainties, we remain focused on the Company’s growth as we leverage the current steady demand for our products.”
 

2020 Third Quarter Financial Outlook
 
Management provided an outlook for the third quarter, the period ending September 30, 2020. Based on current estimates, management expects:


$58 million to $66 million in revenue
 

$0.25 to $0.39 in diluted GAAP EPS
 

$0.34 to $0.47 in diluted non-GAAP EPS
 
2020 Second Quarter Results
 
Total revenues for the second quarter of 2020 were $62.6 million, an increase of 2.6% compared with the first quarter of 2020 and an increase of 22.4% compared with the second quarter of 2019.
 
Gross margin for the second quarter of 2020 was 58.5%, compared with a gross margin of 56.3% in the first quarter of 2020, and compared with a gross margin of 55.0% in the second quarter of 2019.
 
Operating expenses in the second quarter of 2020 were $26.3 million, compared with $21.5 million in the first quarter of 2020 and compared with $21.3 million in the second quarter of 2019.
 
On a GAAP basis, the Company reported net income of $8.7 million, or $0.30 per diluted share, in the second quarter of 2020. This is compared with net income of $11.7 million, or $0.41 per diluted share, in the first quarter of 2020, and compared with net income of $6.5 million, or $0.23 per diluted share, in the second quarter of 2019.
 
On a non-GAAP basis, which excludes amortization of acquired intangible assets, stock-based compensation expenses, one-time expense related to a transaction made by a financial institution without Company authorization, facilities transition costs, revaluation of long-term liabilities and tax effect of non-GAAP adjustments, the Company reported net income of $13.8 million, or $0.48 per diluted share, in the second quarter of 2020. This is compared with net income of $13.5 million, or $0.47 per diluted share, in the first quarter of 2020, and compared with net income of $9.0 million, or $0.32 per diluted share, in the second quarter of 2019.
 
Conference Call Information
 
Nova will host a conference call today, August 4, 2020, at 9 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: 1-866-548-4713
ISRAEL TOLL-FREE Dial-in Number: 1-809-212-883
INTERNATIONAL Dial-in Number: 1-323-794-2093

At:
9 a.m. Eastern Time
6 a.m. Pacific Time
4 p.m. Israel Time
Please reference conference ID: 8576081
 
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, 2020 at 12 p.m. Eastern Time to August 11, 2020 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: 8576081

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 metrology solutions for advanced process control used 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 the development and production of the most advanced semiconductor devices. Nova’s unique capability to deliver innovative x-ray and optical 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 around the world. Additional information may be found at www.novami.com.
 
Nova is traded on the NASDAQ & TASE under the symbol NVMI.

This press release provides financial measures that exclude amortization of acquired intangible assets, stock-based compensation expenses, expense related to a transaction made by a financial institution without Company authorization, facilities transition costs, revaluation of long-term liabilities and tax effect of non-GAAP adjustments 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 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 worldwide financial and economic instabilities, including the implications of the ongoing novel coronavirus (COVID-19) pandemic; 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 technology security threats, including data breaches, cyberattacks and system disruptions, and changes in privacy laws; 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, 2019 filed with the Securities and Exchange Commission on March 12, 2020. 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)


NOVA MEASURING INSTRUMENTS LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands) - (Unaudited)

   
As of
 
ASSETS
 
June 30,
2020
   
December 31,
2019
 
Current assets
           
Cash and cash equivalents
   
25,885
     
31,748
 
Short-term interest-bearing bank deposits
   
187,535
     
154,533
 
Trade accounts receivable
   
44,457
     
51,603
 
Inventories
   
56,584
     
48,362
 
Other current assets
   
12,383
     
17,122
 
                 
Total current assets
   
326,844
     
303,368
 
                 
Non-current assets
               
Interest-bearing bank deposits
   
2,804
     
2,813
 
Restricted interest-bearing bank deposits
   
2,000
     
2,000
 
Deferred tax assets
   
5,100
     
4,554
 
Severance pay funds
   
1,181
     
1,210
 
Right of-use assets
   
27,555
     
28,256
 
Property and equipment, net
   
31,489
     
30,566
 
Intangible assets, net
   
6,310
     
7,562
 
Goodwill
   
20,114
     
20,114
 
                 
Total non-current assets
   
96,553
     
97,075
 
                 
Total assets
   
423,397
     
400,443
 
                 
 LIABILITIES AND SHAREHOLDERS’ EQUITY
               
Current liabilities
               
Trade accounts payable
   
21,716
     
20,706
 
Deferred revenues
   
1,165
     
2,256
 
Operating lease current liabilities
   
1,935
     
2,236
 
Other current liabilities
   
23,161
     
21,751
 
                 
Total current liabilities
   
47,977
     
46,949
 
                 
Non-current liabilities
               
Accrued severance pay
   
2,119
     
2,120
 
Operating lease long-term liabilities
   
30,891
     
31,077
 
Other long-term liability
   
6,448
     
5,758
 
                 
Total non-current liabilities
   
39,458
     
38,955
 
                 
Shareholders' equity
   
335,962
     
314,539
 
                 
Total liabilities and shareholders’ equity
   
423,397
     
400,443
 


NOVA MEASURING INSTRUMENTS LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 (U.S. dollars in thousands, except per share data) - (Unaudited)

   
Three months ended
   
Six months ended
 
   
June 30,
2020
   
June 30,
2019
   
June 30,
2020
   
June 30,
2019
 
                         
Revenues:
                       
Products
   
47,097
     
37,401
     
92,822
     
81,462
 
Services
   
15,489
     
13,719
     
30,786
     
26,315
 
Total revenues
   
62,586
     
51,120
     
123,608
     
107,777
 
                                 
Cost of revenues:
                               
Products
   
17,150
     
14,527
     
35,190
     
32,104
 
Services
   
8,835
     
8,483
     
17,475
     
15,979
 
Total cost of revenues
   
25,985
     
23,010
     
52,665
     
48,083
 
                                 
Gross profit
   
36,601
     
28,110
     
70,943
     
59,694
 
                                 
Operating expenses:
                               
Research and development expenses, net
   
12,622
     
11,654
     
24,305
     
24,238
 
Sales and marketing expenses
   
7,263
     
6,641
     
13,826
     
13,787
 
General and administrative expenses
   
5,775
     
2,384
     
8,364
     
4,906
 
Amortization of acquired intangible assets
   
626
     
656
     
1,252
     
1,312
 
Total operating expenses
   
26,286
     
21,335
     
47,747
     
44,243
 
                                 
Operating income
   
10,315
     
6,775
     
23,196
     
15,451
 
                                 
Financing income, net
   
387
     
855
     
1,415
     
1,365
 
                                 
Income before tax on income
   
10,702
     
7,630
     
24,611
     
16,816
 
                                 
Income tax expenses
   
2,030
     
1,162
     
4,257
     
2,592
 
                                 
Net income for the period
   
8,672
     
6,468
     
20,354
     
14,224
 
                                 
Earnings per share:
                               
Basic
   
0.31
     
0.23
     
0.73
     
0.51
 
Diluted
   
0.30
     
0.23
     
0.70
     
0.50
 
                                 
Shares used for calculation of earnings per share:
                               
Basic
   
28,039
     
27,869
     
28,037
     
27,898
 
Diluted
   
28,888
     
28,564
     
28,890
     
28,234
 


NOVA MEASURING INSTRUMENTS LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands) - (Unaudited)

   
Three months ended
   
Six months ended
 
   
June 30,
2020
   
June 30,
2019
   
June 30,
2020
   
June 30,
2019
 
Cash flows from operating activities:
                       
Net income for the period
   
8,672
     
6,468
     
20,354
     
14,224
 
                                 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
                               
Depreciation and amortization
   
2,039
     
2,770
     
4,783
     
5,470
 
Share-based compensation
   
1,454
     
1,086
     
2,772
     
2,298
 
Change in deferred tax assets, net
   
(345
)
   
(147
)
   
(546
)
   
(344
)
Change in accrued severance pay, net
   
42
     
(6
)
   
28
     
27
 
Change in trade accounts receivable
   
10,586
     
(1,157
)
   
7,146
     
5,453
 
Change in inventories
   
(7,022
)
   
(3,323
)
   
(8,470
)
   
(7,855
)
Change in other current and long-term assets
   
1,046
     
1,978
     
4,739
     
2,580
 
Change in trade accounts payable
   
2,920
     
(5,430
)
   
665
     
(2,126
)
Change in other current and long-term liabilities
   
1,140
     
(3,457
)
   
2,206
     
(4,579
)
Change in short term deferred revenues
   
(1,437
)
   
196
     
(1,091
)
   
1,330
 
                                 
Net cash provided by (used in) operating activities
   
19,095
     
(1,022
)
   
32,586
     
16,478
 
                                 
Cash flow from investment activities:
                               
Increase in short-term and long-term interest-bearing bank deposits
   
(25,458
)
   
8,447
     
(32,993
)
   
6,075
 
Purchase of property and equipment
   
(890
)
   
(5,716
)
   
(3,160
)
   
(7,693
)
                                 
Net cash provided by (used in) investment activities
   
(26,348
)
   
2,731
     
(36,153
)
   
(1,618
)
                                 
Cash flows from financing activities:
                               
Purchases of treasury shares
   
(2,535
)
   
(7,159
)
   
(2,549
)
   
(7,159
)
Shares issued upon exercise of options
   
142
     
166
     
253
     
272
 
                                 
Net cash used in financing activities
   
(2,393
)
   
(6,993
)
   
(2,296
)
   
(6,887
)
                                 
Increase (decrease) in cash and cash equivalents
   
(9,646
)
   
(5,284
)
   
(5,863
)
   
7,973
 
Cash and cash equivalents – beginning of period
   
35,531
     
38,134
     
31,748
     
24,877
 
Cash and cash equivalents – end of period
   
25,885
     
32,850
     
25,885
     
32,850
 


NOVA MEASURING INSTRUMENTS 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,
2020
   
March 31,
2020
   
June 30,
2019
 
GAAP gross profit
   
36,601
     
34,342
     
28,110
 
Stock-based compensation expenses *
   
279
     
256
     
222
 
Facilities transition costs
   
-
     
-
     
271
 
Non-GAAP gross profit
   
36,880
     
34,598
     
28,603
 
GAAP gross margin as a percentage of revenues
   
58
%
   
56
%
   
55
%
Non-GAAP gross margin as a percentage of revenues
   
59
%
   
57
%
   
56
%
                         
GAAP operating income
   
10,315
     
12,881
     
6,775
 
Stock-based compensation expenses *
   
1,454
     
1,318
     
1,086
 
Amortization of acquired intangible assets
   
626
     
626
     
656
 
One-time expense related to a transaction made by a financial institution without Company authorization
   
3,000
     
-
     
-
 
Facilities transition costs
   
-
     
-
     
827
 
Non-GAAP operating income
   
15,395
     
14,825
     
9,344
 
GAAP operating margin as a percentage of revenues
   
16
%
   
21
%
   
13
%
Non-GAAP operating margin as a percentage of revenues
   
25
%
   
24
%
   
18
%
                         
GAAP net income
   
8,672
     
11,682
     
6,468
 
Stock-based compensation expenses *
   
1,454
     
1,318
     
1,086
 
Amortization of acquired intangible assets
   
626
     
626
     
656
 
One-time expense related to a transaction made by a financial institution without Company authorization
   
3,000
     
-
     
-
 
Facilities transition costs
   
-
     
-
     
827
 
Revaluation of long-term liabilities
   
594
     
(66
)
   
295
 
Tax effect of non-GAAP adjustments
   
(572
)
   
(79
)
   
(325
)
Non-GAAP net income
   
13,774
     
13,481
     
9,007
 
                         
GAAP basic earnings per share
   
0.31
     
0.42
     
0.23
 
Non-GAAP basic earnings per share
   
0.49
     
0.48
     
0.32
 
                         
GAAP diluted earnings per share
   
0.30
     
0.41
     
0.23
 
Non-GAAP diluted earnings per share
   
0.48
     
0.47
     
0.32
 
                         
Shares used for calculation of earnings per share:
                       
Basic
   
28,039
     
27,902
     
27,869
 
Diluted
   
28,888
     
28,760
     
28,564
 

* Stock-based compensation expenses for the three months ended June 30, 2020 included in – Cost of revenues products - 169; Cost of revenues services - 110; Research and development expenses, net – 604; Sales and marketing expenses – 327; General and administrative expenses – 244