6-K 1 zk1923604.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 2019

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

5 David Fikes Street, 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 2019 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. 

  NOVA MEASURING INSTRUMENTS LTD.
  
 
(Registrant)
  
       
Date: November 7, 2019
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 2019 Results
 
Rehovot, Israel, November 7, 2019 - Nova (Nasdaq: NVMI) today announced financial results for the third quarter 2019, the period ended September 30, 2019.
 
Third Quarter 2019 Highlights:
 

 •
Quarterly revenue of $52.5 million, meeting guidance of $46 million to $54 million.
 

 •
GAAP net income of $8.6 million, or $0.30 per diluted share, exceeding guidance of $0.11 to $0.24 per share
 

•
Non-GAAP net income of $11.5 million, or $0.40 per diluted share, exceeding guidance of $0.20 to $0.34 per share


•
Accelerated deliveries to leading edge Foundry to support expansion of its most advanced technology node


•
Balanced revenue contribution across segments, geographies and customers
 
GAAP Results ($K)
 
Q3 2019
Q2 2019
Q3 2018
 Revenues
$52,507
$51,120
$63,571
 Net Income
$8,562
$6,468
$13,310
 Earnings per Diluted Share
$0.30
$0.23
$0.46
NON-GAAP Results ($K)
 
Q3 2019
Q2 2019
Q3 2018
 Net Income
$11,507
$9,007
$15,080
 Earnings per Diluted Share
$0.40
$0.32
$0.52
 
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, facilities transition costs, revaluation of long-term liabilities and tax effect of non-GAAP adjustments.

Management Comments

"We are pleased with our performance during the third quarter of the year despite the varying market conditions. Based on our focused efforts to execute our plans, revenues came in at the high end of the guidance, while profitability exceeded the guidance range,” commented Eitan Oppenhaim, President and Chief Executive Officer. “Our solid performance during different industry cycles is a result of our technology differentiation, operational efficiency and growing exposure to leading customers from all segments. Following our continuous investment in innovative development, the company is well positioned to capitalize on multiple opportunities once markets resume growth."
 
2019 Fourth Quarter Financial Outlook
 
Management provided an outlook for the fourth quarter, the period ending December 31, 2019. Based on current estimates, management expects:
 

 •
$56 million to $62 million in revenue
 

 •
$0.32 to $0.42 in diluted GAAP EPS
 

 •
$0.40 to $0.50 in diluted non-GAAP EPS
 
2019 Third Quarter Results
 
Total revenues for the third quarter of 2019 were $52.5 million, an increase of 3% compared to the second quarter of 2019 and decrease of 17% compared to the third quarter of 2018.
 
Gross margin for the third quarter of 2019 was 52%, compared to a gross margin of 55% in the second quarter of 2019, and compared to the gross margin of 59% in the third quarter of 2018.
 
Operating expenses in the third quarter of 2019 were $21.0 million, compared with $21.3 in the second quarter of 2019 and compared with $21.7 million in the third quarter of 2018.
 
On a GAAP basis, the company reported net income of $8.6 million, or $0.30 per diluted share, in the third quarter of 2019. This is compared with $6.5 million, or $0.23 per diluted share, in the second quarter of 2019, and compared with net income of $13.3 million, or $0.46 per diluted share, in the third quarter of 2018.
 
On a non-GAAP basis, which exclude amortization of acquired intangible assets, stock-based compensation expenses, facilities transition costs, revaluation of long-term liabilities and tax effect of non-GAAP adjustments, the company reported net income of $11.5 million, or $0.40 per diluted share, in the third quarter of 2019. This is compared with net income of $9.0 million, or $0.32 per diluted share, in the second quarter of 2019, and compared with net income of $15.1 million, or $0.52 per diluted share, in the third quarter of 2018.
 
Conference Call Information
 
Nova will host a conference call today, November 7, 2019, 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. Dial-in Number: 1-800-239-9838
ISRAEL Dial-in Number: 1-809-212-883
INTERNATIONAL Dial-in Number: 1-323-794-2551
At:
9 a.m. Eastern Time
6 a.m. Pacific Time
4 p.m. Israeli Time
 
Please reference conference ID 6009704
 
The conference call will also be webcast live from a link on Nova's website at http://ir.novami.com.

A replay of the conference call will be available from November 7, 2019 at 12 p.m. Eastern Time to November 14, 2019 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 
TOLL/INTERNATIONAL 1-412-317-6671

Replay Pin Number: 6009704
 
A replay will also be available for 90 days on Nova's website at http://ir.novami.com.
 
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 enable 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, 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 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 technology security threats 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, 2018 filed with the Securities and Exchange Commission on February 28, 2019. 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,
2019
    
December 31,
2018
  
ASSETS            
             
Current assets
            
Cash and cash equivalents
    
26,220
      
22,877
  
Short-term interest-bearing bank deposits
    
152,916
      
152,951
  
Trade accounts receivable
    
47,054
      
53,531
  
Inventories
    
50,143
      
41,786
  
Other current assets
    
15,561
      
10,961
  
                 
Total current assets
    
291,894
      
282,106
  
                 
Long-term assets
                
Long-term interest-bearing bank deposits
    
2,000
      
2,000
  
Deferred tax assets
    
4,627
      
3,873
  
Severance pay funds
    
1,185
      
1,394
  
Property and equipment, net
    
25,914
      
13,756
  
Identifiable intangible assets, net
    
8,227
      
10,187
  
Operating lease right-of-use assets
    
25,415
      
-
  
Goodwill
    
20,114
      
20,114
  
                 
Total long-term assets
    
87,482
      
51,324
  
                 
Total assets
    
379,376
      
333,430
  
LIABILITIES AND SHAREHOLDERS’ EQUITY
                
Current liabilities
                
Trade accounts payable
    
18,589
      
19,015
  
Deferred revenues
    
3,715
      
3,984
  
Operating lease current liabilities
    
3,620
      
-
  
Other current liabilities
    
20,340
      
25,079
  
                 
Total current liabilities
    
46,264
      
48,078
  
                 
Long-term liabilities
                
Liability for employee severance pay
    
2,097
      
2,254
  
Operating lease long-term liabilities
    
25,199
      
-
  
Other long-term liabilities
    
5,180
      
2,358
  
                 
Total long-term liabilities
    
32,476
      
4,612
  
                 
Shareholders' equity
    
300,636
      
280,740
  
                 
Total liabilities and shareholders’ equity
    
379,376
      
333,430
  

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,
2019
    
September 30,
2018
    
September 30,
2019
    
September 30,
2018
  
                         
Revenues:
                        
Products
    
38,723
      
48,953
      
120,185
      
144,922
  
Services
    
13,784
      
14,618
      
40,099
      
43,140
  
Total revenues
    
52,507
      
63,571
      
160,284
      
188,062
  
                                 
Cost of revenues:
                                
Products
    
16,342
      
17,615
      
48,446
      
53,586
  
Services
    
8,672
      
8,489
      
24,651
      
24,952
  
Total cost of revenues
    
25,014
      
26,104
      
73,097
      
78,538
  
                                 
Gross profit
    
27,493
      
37,467
      
87,187
      
109,524
  
                                 
Operating expenses:
                                
Research and development expenses, net
    
10,548
      
11,886
      
34,786
      
34,961
  
Sales and marketing expenses
    
7,156
      
7,016
      
20,943
      
20,689
  
General and administrative expenses
    
2,658
      
2,162
      
7,564
      
6,526
  
Amortization of acquired intangible assets
    
657
      
653
      
1,969
      
1,960
  
Total operating expenses
    
21,019
      
21,717
      
65,262
      
64,136
  
                                 
Operating income
    
6,474
      
15,750
      
21,925
      
45,388
  
                                 
Financing income, net
    
887
      
872
      
2,252
      
1,806
  
                                 
Income before tax on income
    
7,361
      
16,622
      
24,177
      
47,194
  
                                 
Income tax expenses (income)
    
(1,201
)
    
3,312
      
1,391
      
7,971
  
                                 
Net income for the period
    
8,562
      
13,310
      
22,786
      
39,223
  
                                 
Earnings per share:
                                
Basic
    
0.31
      
0.47
      
0.82
      
1.40
  
Diluted
    
0.30
      
0.46
      
0.80
      
1.36
  
                                 
Shares used for calculation of earnings per share:
                                
                                 
Basic
    
27,826
      
28,047
      
27,935
      
27,980
  
Diluted
    
28,474
      
28,777
      
28,599
      
28,761
  

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

   
Three months ended
    
Nine months ended
  
   
September 30,
2019
    
September 30,
2018
    
September 30,
2019
    
September 30,
2018
  
Cash flows from operating activities:
                        
Net income for the period
    
8,562
      
13,310
      
22,786
      
39,223
  
                                 
Adjustments to reconcile net income to net cash
provided by operating activities:
                                
Depreciation and amortization
    
3,842
      
2,000
      
9,312
      
5,534
  
Amortization of deferred stock-based compensation
    
1,364
      
1,254
      
3,662
      
3,081
  
Decrease (increase) in liability for employee termination benefits, net
    
25
      
(18
)
    
52
      
(53
)
Deferred tax assets, net
    
(410
)
    
(188
)
    
(754
)
    
(745
)
Decrease (increase) in trade accounts receivable
    
1,024
      
(4,998
)
    
6,477
      
(7,079
)
Increase in inventories
    
(1,332
)
    
(768
)
    
(9,187
)
    
(8,004
)
Decrease (increase) in other current assets
    
(7,180
)
    
(2,505
)
    
(4,600
)
    
1,069
  
Increase (decrease) in trade accounts payable
    
1,700
      
(925
)
    
(426
)
    
1,866
  
Increase (decrease) in other current liabilities and other long-term liabilities
    
3,247
      
(496
)
    
(1,332
)
    
(7,594
)
Decrease in short term deferred revenues
    
(1,599
)
    
(3,233
)
    
(269
)
    
(4,083
)
                                 
Net cash provided by operating activities
    
9,243
      
3,433
      
25,721
      
23,215
  
                                 
Cash flow from investment activities:
                                
Decrease (increase) in short-term and long-term interest-bearing bank deposits
    
(6,040
)
    
*(5,761
)
    
35
      
*(24,410
)
Additions to property and equipment
    
(7,928
)
    
(683
)
    
(15,621
)
    
(1,779
)
                                 
Net cash used in investment activities
    
(13,968
)
    
*(6,444
)
    
(15,586
)
    
*(26,189
)
                                 
Cash flows from financing activities:
                                
Purchases of treasury shares
    
-
      
-
      
(7,159
)
    
-
  
Shares issued under employee stock-based plans
    
95
      
56
      
367
      
294
  
                                 
Net cash provided by (used in) financing activities
    
95
      
56
      
(6,792
)
    
294
  
                                 
Increase (decrease) in cash and cash equivalents and restricted cash
    
(4,630
)
    
*(2,955
)
    
3,343
      
*(2,680
)
Cash and cash equivalents and restricted cash – beginning of period
    
32,850
      
*28,722
      
24,877
      
*28,447
  
Cash and cash equivalents and restricted cash – end of period
    
28,220
      
*25,767
      
28,220
      
*25,767
  
                                 
Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheet
                                
Cash and cash equivalents
    
26,220
      
23,767
      
26,220
      
23,767
  
Restricted cash included in Long-term interest-bearing bank deposits
    
2,000
      
2,000
      
2,000
      
2,000
  
Total cash, cash equivalents, and restricted cash
    
28,220
      
25,767
      
28,220
      
25,767
  
                                 
*reclassified
                                

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,
2019
    
June 30,
2019
    
September 30,
2018
  
GAAP gross profit
    
27,493
      
28,110
      
37,467
  
Stock-based compensation expenses (1)
    
277
      
222
      
283
  
Facilities transition costs (2)
    
220
      
271
      
-
  
Non-GAAP gross profit
    
27,990
      
28,603
      
37,750
  
GAAP gross margin as a percentage of revenues
    
52
%
    
55
%
    
59
%
Non-GAAP gross margin as a percentage of revenues
    
53
%
    
56
%
    
59
%
                         
GAAP operating income
    
6,474
      
6,775
      
15,750
  
Stock-based compensation expenses (1)
    
1,364
      
1,086
      
1,254
  
Amortization of acquired intangible assets
    
657
      
656
      
653
  
Facilities transition costs (2)
    
888
      
827
      
-
  
Non-GAAP operating income
    
9,383
      
9,344
      
17,657
  
GAAP operating margin as a percentage of revenues
    
12
%
    
13
%
    
25
%
Non-GAAP operating margin as a percentage of revenues
    
18
%
    
18
%
    
28
%
                         
GAAP net income
    
8,562
      
6,468
      
13,310
  
Stock-based compensation expenses (1)
    
1,364
      
1,086
      
1,254
  
Amortization of acquired intangible assets
    
657
      
656
      
653
  
Facilities transition costs (2)
    
888
      
827
      
-
  
Revaluation of long-term liabilities
    
362
      
295
      
-
  
Tax effect of non-GAAP adjustments
    
(326
)
    
(325
)
    
(137
)
Non-GAAP net income
    
11,507
      
9,007
      
15,080
  
                         
GAAP basic earnings per share
    
0.31
      
0.23
      
0.47
  
Non-GAAP basic earnings per share
    
0.41
      
0.32
      
0.54
  
                         
GAAP diluted earnings per share
    
0.30
      
0.23
      
0.46
  
Non-GAAP diluted earnings per share
    
0.40
      
0.32
      
0.52
  
                         
Shares used for calculation of earnings per share:
                        
Basic
    
27,826
      
27,869
      
28,047
  
Diluted
    
28,474
      
28,564
      
28,777
  


(1)
Stock-based compensation expenses for the three months ended September 30, 2019 included in – Cost of revenues products - 161; Cost of revenues services - 116; Research and development expenses, net – 534; Sales and marketing expenses – 296; General and administrative expenses – 257.

(2)
Facilities transition costs for the three months ended September 30, 2019 included in – Cost of revenues products - 144; Cost of revenues services - 76; Research and development expenses, net – 295; Sales and marketing expenses – 110; General and administrative expenses – 264.