6-K 1 zk2025126.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 November 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 Third 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: November 12, 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 Third Quarter 2020 Results
 
Rehovot, Israel, November 12, 2020 - Nova (Nasdaq: NVMI) today announced financial results for the third quarter 2020, the period ended September 30, 2020.
 
Business Highlights:
 

Record quarterly revenue of $69.5 million, up 32% year-over-year
 

GAAP net income of $13.9 million, or $0.48 per diluted share, up 60% year-over-year on a per-share basis
 

Non-GAAP net income of $16.5 million, or $0.57 per diluted share, up 43% year-over-year on a per-share basis
 

Record quarterly optical standalone revenues, driven by growing demand for Nova’s unique dimensional metrology solutions
 

In October, completed a private offering of $200 million of 0% convertible senior notes due 2025
 
GAAP Results ($K)
 
Q3 2020
Q2 2020
Q3 2019
Revenues
$69,485
$62,586
$52,507
Net Income
$13,896
$8,672
$8,562
Earnings per Diluted Share
$0.48
$0.30
$0.30
NON-GAAP Results ($K)
 
Q3 2020
Q2 2020
Q3 2019
Net Income
$16,511
$13,774
$11,507
Earnings per Diluted Share
$0.57
$0.48
$0.40
 
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
 
“Nova’s outstanding financial results for the quarter exceeded our previous expectations and guidance. These results demonstrate the resilience of our operational model and the strategic value we bring to our customers while they continue developing their next generation technology nodes,” commented Eitan Oppenhaim, President and Chief Executive Officer. “Following our strong operational execution in 2020, we remain confident in our strategy and the value we create, which provide us a solid base to deliver our long-term growth objectives.”
 

2020 Fourth Quarter Financial Outlook
 
Management provided an outlook for the fourth quarter, the period ending December 31, 2020. Based on current estimates, management expects:
 

$66 million to $73 million in revenue
 

$0.32 to $0.43 in diluted GAAP EPS
 

$0.45 to $0.56 in diluted non-GAAP EPS
 
2020 Third Quarter Results
 
Total revenues for the third quarter of 2020 were $69.5 million, an increase of 11.0% compared with the second quarter of 2020 and an increase of 32.3% compared with the third quarter of 2019.
 
Gross margin for the third quarter of 2020 was 57.1%, compared with a gross margin of 58.5% in the second quarter of 2020, and compared with a gross margin of 52.4% in the third quarter of 2019.
 
Operating expenses in the third quarter of 2020 were $24.1 million, compared with $26.3 million in the second quarter of 2020 and compared with $21.0 million in the third quarter of 2019.
 
On a GAAP basis, the Company reported net income of $13.9 million, or $0.48 per diluted share, in the third quarter of 2020. This is compared with net income of $8.7 million, or $0.30 per diluted share, in the second quarter of 2020, and compared with net income of $8.6 million, or $0.30 per diluted share, in the third 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 $16.5 million, or $0.57 per diluted share, in the third quarter of 2020. This is compared with net income of $13.8 million, or $0.48 per diluted share, in the second quarter of 2020, and compared with net income of $11.5 million, or $0.40 per diluted share, in the third quarter of 2019.
 
Conference Call Information
 
Nova will host a conference call today, November 12, 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: 1-888-394-8218
ISRAEL TOLL-FREE Dial-in Number: 1-809-212-883
INTERNATIONAL Dial-in Number: 1-323-701-0225

At:
9 a.m. Eastern Time
6 a.m. Pacific Time
4 p.m. Israel Time
Please reference conference ID: 1420148
 
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 November 12, 2020 at 12 p.m. Eastern Time to November 19, 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: 1420148

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, tax effect of non-GAAP adjustments and amortization of debt discount and issuance costs, 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..


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
 

 
September 30,
2020
   
December 31,
2019
 
ASSETS
           
Current assets
           
Cash and cash equivalents
   
32,713
     
31,748
 
Short-term interest-bearing bank deposits
   
200,676
     
154,533
 
Trade accounts receivable
   
41,097
     
51,603
 
Inventories
   
62,063
     
48,362
 
Other current assets
   
11,899
     
17,122
 
                 
Total current assets
   
348,448
     
303,368
 
                 
Non-current assets
               
Interest-bearing bank deposits
   
2,824
     
2,813
 
Restricted interest-bearing bank deposits
   
2,000
     
2,000
 
Deferred tax assets
   
5,282
     
4,554
 
Severance pay funds
   
1,197
     
1,210
 
Right of-use assets
   
29,508
     
28,256
 
Property and equipment, net
   
32,491
     
30,566
 
Intangible assets, net
   
5,684
     
7,562
 
Goodwill
   
20,114
     
20,114
 
                 
Total non-current assets
   
99,100
     
97,075
 
                 
Total assets
   
447,548
     
400,443
 
                 
 LIABILITIES AND SHAREHOLDERS’ EQUITY
               
Current liabilities
               
Trade accounts payable
   
22,733
     
20,706
 
Deferred revenues
   
3,791
     
2,256
 
Operating lease current liabilities
   
2,391
     
2,236
 
Other current liabilities
   
26,303
     
21,751
 
     

         
Total current liabilities
   
55,218
     
46,949
 
     

         
Non-current liabilities
               
Accrued severance pay
   
2,139
     
2,120
 
Operating lease long-term liabilities
   
31,875
     
31,077
 
Other long-term liability
   
6,616
     
5,758
 
                 
Total non-current liabilities
   
40,630
     
38,955
 
                 
Shareholders' equity
   
351,700
     
314,539
 
                 
Total liabilities and shareholders’ equity
   
447,548
     
400,443
 


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

   
Three months ended
   
Nine months ended
 
   
September 30,
2020
   
September 30,
2019
   
September 30,
2020
   
September 30,
2019
 
                         
Revenues:
                       
Products
   
54,757
     
38,723
     
147,579
     
120,185
 
Services
   
14,728
     
13,784
     
45,514
     
40,099
 
Total revenues
   
69,485
     
52,507
     
193,093
     
160,284
 
                                 
Cost of revenues:
                               
Products
   
20,732
     
16,342
     
55,922
     
48,446
 
Services
   
9,096
     
8,672
     
26,571
     
24,651
 
Total cost of revenues
   
29,828
     
25,014
     
82,493
     
73,097
 
                                 
Gross profit
   
39,657
     
27,493
     
110,600
     
87,187
 
                                 
Operating expenses:
                               
Research and development expenses, net
   
12,957
     
10,548
     
37,262
     
34,786
 
Sales and marketing expenses
   
7,406
     
7,156
     
21,232
     
20,943
 
General and administrative expenses
   
3,141
     
2,658
     
11,505
     
7,564
 
Amortization of acquired intangible assets
   
625
     
657
     
1,877
     
1,969
 
Total operating expenses
   
24,129
     
21,019
     
71,876
     
65,262
 
                                 
Operating income
   
15,528
     
6,474
     
38,724
     
21,925
 
                                 
Financing income, net
   
846
     
887
     
2,261
     
2,252
 
                                 
Income before tax on income
   
16,374
     
7,361
     
40,985
     
24,177
 
                                 
Income tax expenses
   
2,478
     
(1,201
)
   
6,735
     
1,391
 
                                 
Net income for the period
   
13,896
     
8,562
     
34,250
     
22,786
 
                                 
Earnings per share:
                               
Basic
   
0.49
     
0.31
     
1.22
     
0.82
 
Diluted
   
0.48
     
0.30
     
1.18
     
0.80
 
                                 
Shares used for calculation of earnings per share:
                               
Basic
   
28,168
     
27,826
     
28,080
     
27,935
 
Diluted
   
29,020
     
28,474
     
28,933
     
28,599
 


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

   
Three months ended
   
Nine months ended
 
   
September 30,
2020
   
September 30,
2019
   
September 30,
2020
   
September 30,
2019
 
Cash flows from operating activities:
                       
Net income for the period
   
13,896
     
8,562
     
34,250
     
22,786
 
                                 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
                               
Depreciation and amortization
   
2,447
     
3,842
     
7,133
     
9,312
 
Share-based compensation
   
1,946
     
1,364
     
4,718
     
3,662
 
Change in deferred tax assets, net
   
(182
)
   
(410
)
   
(728
)
   
(754
)
Change in accrued severance pay, net
   
4
     
25
     
32
     
52
 
Change in trade accounts receivable
   
3,360
     
1,024
     
10,506
     
6,477
 
Change in inventories
   
(6,582
)
   
(1,332
)
   
(15,052
)
   
(9,187
)
Change in other current and long-term assets
   
484
     
(7,180
)
   
5,223
     
(4,600
)
Change in trade accounts payable
   
1,362
     
1,700
     
2,027
     
(426
)
Change in other current and long-term liabilities
   
2,227
     
3,247
     
4,530
     
(1,332
)
Change in short term deferred revenues
   
2,626
     
(1,599
)
   
1,535
     
(269
)
                                 
Net cash provided by (used in) operating activities
   
21,588
     
9,243
     
54,174
     
25,721
 
                                 
Cash flow from investment activities:
                               
Change in short-term and long-term interest-bearing bank deposits
   
(13,161
)
   
(6,040
)
   
(46,154
)
   
35
 
Purchase of property and equipment
   
(1,713
)
   
(7,928
)
   
(4,873
)
   
(15,621
)
                                 
Net cash provided by (used in) investment activities
   
(14,874
)
   
(13,968
)
   
(51,027
)
   
(15,586
)
                                 
Cash flows from financing activities:
                               
Purchases of treasury shares
   
-
     
-
     
(2,549
)
   
(7,159
)
Shares issued upon exercise of options
   
114
     
95
     
367
     
367
 
                                 
Net cash used in financing activities
   
114
     
95
     
(2,182
)
   
(6,792
)
                                 
Increase (decrease) in cash and cash equivalents
   
6,828
     
(4,630
)
   
965
     
3,343
 
Cash and cash equivalents – beginning of period
   
25,885
     
32,850
     
31,748
     
24,877
 
Cash and cash equivalents – end of period
   
32,713
     
28,220
     
32,713
     
28,220
 


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
 
   
September 30,
2020
   
June 30,
2020
   
September 30,
2019
 
GAAP gross profit
   
39,657
     
36,601
     
27,493
 
Stock-based compensation expenses *
   
414
     
279
     
277
 
Facilities transition costs
   
-
     
-
     
220
 
Non-GAAP gross profit
   
40,071
     
36,880
     
27,990
 
GAAP gross margin as a percentage of revenues
   
57
%
   
58
%
   
52
%
Non-GAAP gross margin as a percentage of revenues
   
58
%
   
59
%
   
53
%
                         
GAAP operating income
   
15,528
     
10,315
     
6,474
 
Stock-based compensation expenses *
   
1,946
     
1,454
     
1,364
 
Amortization of acquired intangible assets
   
625
     
626
     
657
 
One-time expense related to a transaction made by a financial institution without Company authorization
   
-
     
3,000
     
-
 
Facilities transition costs
   
-
     
-
     
888
 
Non-GAAP operating income
   
18,099
     
15,395
     
9,383
 
GAAP operating margin as a percentage of revenues
   
22
%
   
16
%
   
12
%
Non-GAAP operating margin as a percentage of revenues
   
26
%
   
25
%
   
18
%
                         
GAAP net income
   
13,896
     
8,672
     
8,562
 
Stock-based compensation expenses *
   
1,946
     
1,454
     
1,364
 
Amortization of acquired intangible assets
   
625
     
626
     
657
 
One-time expense related to a transaction made by a financial institution without Company authorization
   
-
     
3,000
     
-
 
Facilities transition costs
   
-
     
-
     
888
 
Revaluation of long-term liabilities
   
161
     
594
     
362
 
Tax effect of non-GAAP adjustments
   
(117
)
   
(572
)
   
(326
)
Non-GAAP net income
   
16,511
     
13,774
     
11,507
 
                         
GAAP basic earnings per share
   
0.49
     
0.31
     
0.31
 
Non-GAAP basic earnings per share
   
0.59
     
0.49
     
0.41
 
                         
GAAP diluted earnings per share
   
0.48
     
0.30
     
0.30
 
Non-GAAP diluted earnings per share
   
0.57
     
0.48
     
0.40
 
                         
Shares used for calculation of earnings per share:
                       
Basic
   
28,168
     
28,039
     
27,826
 
Diluted
   
29,020
     
28,888
     
28,474
 

* Stock-based compensation expenses for the three months ended September 30, 2020 included in – Cost of revenues products - 259; Cost of revenues services - 155; Research and development expenses, net – 713; Sales and marketing expenses – 409; General and administrative expenses – 410



NOVA MEASURING INSTRUMENTS LTD.
SUPPLEMENTAL INFORMATION - RECONCILIATION OF FOURTH QUARTER 2020
GAAP TO NON-GAAP GUIDANCE
 (Unaudited)

   
Low
   
High
 
Estimated GAAP net income per diluted share
   
0.32
     
0.43
 
Estimated non-GAAP items:
               
Stock-based compensation expenses
   
0.09
     
0.09
 
Amortization of acquired intangible assets
   
0.02
     
0.02
 
Amortization of debt discount and issuance costs
   
0.03
     
0.03
 
Tax effect of non-GAAP adjustments
   
(0.01
)
   
(0.01
)
Estimated non-GAAP net income per diluted share
   
0.45
     
0.56