Form 6-K NOVA LTD. For: Aug 05

              Date: August 5, 2021

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Company Contact:

Dror David, Chief Financial Officer

Tel: +972-73-229-5760

 

Investor Relations Contact:

Miri Segal MS-IR LLC

Tel: +917-607-8654

 

Nova Reports Record Second Quarter 2021 Results

 

Rehovot, Israel, August 5, 2021 - Nova (Nasdaq: NVMI) today announced record financial results for the second quarter of 2021, the period ended June 30, 2021.

 

Second Quarter 2021 Highlights:

 

 

GAAP Results ($K)

 

NON-GAAP Results ($K)

 

A reconciliation between GAAP operating results and non-GAAP operating results is provided following the financial statements that are part of this release. See also "Use of Non-GAAP Adjusted Financial Measures" section.

 

Management Comments

 

"We continue to reap the benefits of our well-executed plans meeting the Company's strategic targets. Our evolving product portfolio resonates well with our customers and propelled our continuous growth with another strong quarter," commented Eitan Oppenhaim, President and Chief Executive Officer. "Following our consistent achievements this year, we announced during our recent analyst and investor day, our new plan to organically grow the business to more than $500M in revenues. The combination of our financial model, operation leverage, and diversified portfolio supports our plans to continue our growth across segments and customers. Along with our guidance for the third quarter of 2021, we are well-positioned to achieve another record year and position Nova to capitalize on further opportunities in different territories."

 

2021 Third Quarter Financial Outlook

 

Management provided an outlook for the third quarter, the period ending September 30, 2021. Based on current estimates, management expects:

 

2021 Second Quarter Results

 

Total revenues for the second quarter of 2021 were $97.7 million, an increase of 16% compared with the first quarter of 2021 and an increase of 56% compared with the second quarter of 2020.

 

Gross margin in the second quarter of 2021 was 57%, similar to the previous quarter and compared with gross margin of 58% in the second quarter of 2020.

 

Operating expenses in the second quarter of 2021 were $28.7 million, compared with $28.2 million in the first quarter of 2021 and  $26.3 million in the second quarter of 2020.

 

On a GAAP basis, the Company reported net income of $22.9 million, or $0.77 per diluted share, in the second quarter of 2021. This is compared with net income of $17.6 million, or $0.60 per diluted share, in the first quarter of 2021, and net income of $8.7 million, or $0.30 per diluted share, in the second quarter of 2020.

 

On a non-GAAP basis, the Company reported net income of $26.9 million, or $0.90 per diluted share, in the second quarter of 2021. This is compared with net income of $20.5 million, or $0.70 per diluted share, in the first quarter of 2021, and net income of $13.8 million, or $0.48 per diluted share, in the second quarter of 2020.

Conference Call Information

 

Nova will host a conference call today, August 5, 2021, 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: 1-888-394-8218

ISRAEL TOLL-FREE Dial-in Number: 1-809-212-883

INTERNATIONAL Dial-in Number: 1-323-701-0225

At:

8:30 a.m. Eastern Time

5:30 a.m. Pacific Time

3:30 p.m. Israel Time

Please reference conference ID: 6930576

 

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 5, 2021 at 11:30 a.m. Eastern Time to August 12, 2021 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: 6930576

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 Nova website link - https://www.novami.com/.

 

Nova is traded on the Nasdaq & 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, stock-based compensation expenses, expense related to a transaction made by a financial institution without Company authorization, 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 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: 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 intellectual property; open source technology exposure; failure to compete effectively or to respond to the rapid technological changes; consolidation in our industry; difficulty to predict 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; 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, 2020 filed with the Securities and Exchange Commission on March 1, 2021. 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)

 

NOVA LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 (U.S. dollars in thousands, except per share data) - (Unaudited)

 

NOVA LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(U.S. dollars in thousands) - (Unaudited)

 

NOVA LTD.
RECONCILIATION OF GAAP TO NON-GAAP RESULTS

(U.S. dollars in thousands, except percentage and per share data) - (Unaudited)

* Stock-based compensation expenses for the three months ended June 30, 2021 included in – Cost of revenues – 382; Research and development expenses, net – 811; Sales and marketing expenses – 527; General and administrative expenses – 408

NOVA LTD.
SUPPLEMENTAL INFORMATION - RECONCILIATION OF THIRD QUARTER 2021
GAAP TO NON-GAAP GUIDANCE

(Unaudited)

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