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

November 3, 2009
Commission File No.: 000-30688

NOVA MEASURING INSTRUMENTS LTD.
(Translation of registrant’s name into English)

Building 22 Weizmann Science Park, 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 x Form 40-F o

        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): ____ 

        Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. 

Yes o No x

        Attached hereto and incorporated by way of reference herein is a press release issued by the Registrant and entitled “NOVA ANNOUNCES RECORD NET INCOME IN THE THIRD QUARTER OF 2009”

        This report on Form 6-K is hereby incorporated by reference into Nova Measuring Instruments Ltd.‘s registration statements on Form S-8, filed with the Securities and Exchange Commission on the following dates: September 13, 2000 (File No. 333-12546); March 5, 2002 (File No. 333-83734); December 24, 2002 (File No. 333-102193, as amended by Amendment No. 1, filed on January 5, 2006); March 24, 2003 (File No. 333-103981); May 17, 2004 (three files, File Nos. 333-115554, 333-115555, and 333-115556, as amended by Amendment No. 1, filed on January 5, 2006); March 7, 2005 (File No. 333-123158); December 29, 2005 (File No. 333-130745); September 21, 2006 (File No. 333-137491); and November 5, 2007 (File No. 333-147140) and into Nova Measuring Instruments Ltd.‘s registration statement on Form F-3, filed with the Securities and Exchange Commission on May 11, 2007 (File No. 333-142834).



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 3, 2009
NOVA MEASURING INSTRUMENTS LTD.
(Registrant)


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



Company Contact: Investor relations Contacts:
Dror David, Chief Financial Officer Ehud Helft / Kenny Green
Nova Measuring Instruments Ltd. GK Investor Relations
Tel: 972-8-938-7505 Tel: +1-646-201-9246
E-mail: info@nova.co.il E-mail: nova@gkir.com
http://www.nova.co.il

Company Press Release

NOVA ANNOUNCES RECORD NET INCOME
IN THE THIRD QUARTER OF 2009

64% sequential revenue increase to $11.4 million and record quarterly net income of $1.7 million;
Company expects trend to continue

Rehovot, Israel – November 3, 2009 – Nova Measuring Instruments Ltd. (Nasdaq: NVMI), provider of leading edge stand alone metrology and the market leader of integrated metrology solutions to the semiconductor process control market, today reported its 2009 third quarter financial results.

Highlights for the Third Quarter of 2009

  Total revenues of $11.4 million, up 64% sequentially and 29% from the third quarter of 2008

  Gross margins of 48%, up from 41% in the second quarter of 2009 and 24% in the third quarter of 2008

  Record high quarterly GAAP net income of $1.7 million, or $0.08 per diluted share

  Continued market share gains

2009 Third Quarter Results

Total revenues for the third quarter of 2009 were $11.4 million, an increase of 29% relative to the third quarter of 2008, and an increase of 64% relative to the second quarter of 2009.

Gross margin for the third quarter of 2009 was 48%, compared with 24% in the third quarter of 2008 and 41% in the second quarter of 2009.

Operating expenses in the third quarter of 2009 were $4.0 million, compared with $4.7 million in the third quarter of 2008, and $3.0 million in the second quarter of 2009.



On a GAAP basis, the company reported record net income of $1.7 million in the third quarter of 2009, or $0.08 per diluted share. This compares to a GAAP net loss of $2.6 million, or $0.14 per share, for the third quarter of 2008, and a net loss of $0.1 million for the second quarter of 2009.

On a non-GAAP basis, which excludes stock-based compensation and inventory write-off charges, the company reported record net income of $1.8 million in the third quarter of 2009, or $0.09 per diluted share. This compares with a non-GAAP net loss of $1.7 million, or $0.09 per share, in the third quarter of 2008, and breakeven results in the second quarter of 2009.

The company generated $1.9 million in cash from operating activities during the third quarter of 2009. Total cash reserves increased to $16.1 million at the end of the third quarter of 2009.

Management Comments

“As anticipated, third quarter results showed excellent sequential improvement and a real turnaround compared to the third quarter of last year”, commented Gabi Seligsohn, President and CEO of Nova. “We doubled our gross margins and reported a swing of over $4 million from a net loss of $2.6 million in the third quarter of 2008 to a net profit of $1.7 million in the third quarter of 2009, on improved revenues which grew 29%. In addition, our order patterns remain strong and we expect this trend to continue”.

“Looking forward, sales of both our Integrated and Stand Alone solutions are well-positioned for further growth, because they enable cost-effective migration to lower technology nodes, while still using existing process equipment. Another positive sign is that we have begun to receive orders related to capacity expansions, driven by consumer demand for mobile computing devices such as netbooks and high end cellular devices. Given the significant increase we are continuing to see in our bookings, we expect to continue and show strong financial performance in the coming quarters”.

The Company will host a conference call today, November 3, 2009, at 8:30am ET. To participate, please dial in the US: 1-888-668-9141; or internationally: +972-3-918-0609. A recording of the call will be available on Nova’s website, within 24 hours following the end of the call.

In addition, the conference call will also be webcast live from a link on Nova’s website at www.nova.co.il.

This press release provides financial measures that exclude non-cash charges for stock-based compensation, inventory write-off and impairment charges 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 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.



About Nova
Nova Measuring Instruments Ltd. develops, produces and markets advanced integrated and stand alone metrology solutions for the semiconductor manufacturing industry. Nova is traded on the NASDAQ & TASE under the symbol NVMI. The Company’s website is www.nova.co.il.

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 trends, demand for our products, expected deliveries, transaction, expected revenues, operating results, earnings 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. These risks and other factors include but are not limited to: unanticipated consequences of the global economic crisis, our dependency on a single integrated process control product line; the highly cyclical nature of the markets we target; 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; risks associated with our dependence on a single manufacturing facility; our ability to expand our manufacturing capacity or marketing efforts to support our future growth; our dependency on a small number of large customers and small number of suppliers; risks related to our intellectual property; changes in customer demands for our products; new product offerings from our competitors; changes in or an inability to execute our business strategy; unanticipated manufacturing or supply problems; changes in tax requirements; changes in customer demand for our products; risks related to currency fluctuations; 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 31,2008 filed with the Securities and Exchange Commission on March 30, 2009. 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.
CONSOLIDATED BALANCE SHEET

(U.S. dollars in thousands)

As of
September 30,

As of
December 31,

2009
2008
 
CURRENT ASSETS            
   Cash and cash equivalents    15,546    19,325  
   Short-term interest-bearing bank deposits    47    97  
   Trade accounts receivable    5,602    2,783  
   Inventories    4,709    6,862  
   Other current assets    1,212    1,086  


     27,116    30,153  


LONG-TERM ASSETS  
   Long-term interest-bearing bank deposits    525    544  
   Other Long-term assets    170    157  
   Severance pay funds    2,266    2,141  


     2,961    2,842  


   
   FIXED ASSETS, NET    2,196    2,796  


   
         Total assets    32,273    35,791  


   
CURRENT LIABILITIES  
   Trade accounts payable    1,516    3,480  
   Deferred income    699    2,385  
   Other current liabilities    3,357    4,042  


     5,572    9,907  


   
LONG-TERM LIABILITIES  
   Liability for employee severance pay    3,238    3,152  
   Deferred income    242    351  
   Other long-term liability    38    40  


     3,518    3,543  


   
SHAREHOLDERS' EQUITY    23,183    22,341  


   
      Total liabilities and shareholders' equity    32,273    35,791  





NOVA MEASURING INSTRUMENTS LTD.
QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS

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

Three months ended
September 30,
June 30,
September 30,
2009
2009
2008
 
REVENUES                
    Product sales    8,717    4,631    5,535  
    Services    2,677    2,333    3,305  



     11,394    6,964    8,840  



   
COST OF REVENUES   
    Product sales    3,699    2,050    2,872  
    Inventory write-off    -    -    850  
    Services    2,191    2,091    2,956  



     5,890    4,141    6,678  



   
GROSS PROFIT     5,504    2,823    2,162  



   
OPERATING EXPENSES   
    Research & Development expenses, net    1,850    1,183    2,301  
    Sales & Marketing expenses    1,523    1,293    1,631  
    General & Administration expenses    594    484    760  



     3,967    2,960    4,692  



   
OPERATING PROFIT (LOSS)     1,537    (137 )  (2,530 )
   
INTEREST INCOME (EXPENSES), NET     153    43    (94 )



   
NET INCOME (LOSS) FOR THE PERIOD     1,690    (94 )  (2,624 )



   
    Net income (loss) per share:  
         Basic    0.09    (0.00 )  (0.14 )



         Diluted    0.08    (0.00 )  (0.14 )



   
    Shares used for calculation of net income (loss)  
         per share:  
         Basic    19,417    19,378    19,378  



         Diluted    19,942    19,378    19,378  






NOVA MEASURING INSTRUMENTS LTD.
YEAR TO DATE CONSOLIDATED STATEMENTS OF OPERATIONS

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

Nine-months ended
September 30,
September 30,
2009
2008
 
REVENUES            
    Product sales    16,993    22,645  
    Services    7,085    10,096  


     24,078    32,741  


   
COST OF REVENUES   
    Product sales    7,333    10,884  
    Inventory write-off    -    850  
    Services    6,554    9,363  


     13,887    21,097  


   
GROSS PROFIT     10,191    11,644  


   
OPERATING EXPENSES   
    Research & Development expenses, net    4,816    6,383  
    Sales & Marketing expenses    3,989    6,113  
    General & Administration expenses    1,581    2,461  
    Impairment loss on equipment related to Hypernex assets and  
    liabilities acquisition    -    633  


     10,386    15,590  


   
OPERATING LOSS     (195 )  (3,946 )
   
INTEREST INCOME, NET     132    96  


   
NET LOSS FOR THE PERIOD     (63 )  (3,850 )


   
    Basic net loss per share    (0.00 )  (0.20 )


   
    Shares used for calculation of basic net loss per share    19,391    19,366  





NOVA MEASURING INSTRUMENTS LTD.
QUARTERLY CONSOLIDATED STATEMENTS OF CASH FLOWS

(U.S. dollars in thousands)

September 30,
Three months ended
June 30,

September 30,
2009
2009
2008
 
CASH FLOW - OPERATING ACTIVITIES                
   
    Net income (loss) for the period    1,690    (94 )  (2,624 )
   
    Adjustments to reconcile net loss to net cash  
         used in operating activities:  
   
         Depreciation and amortization    311    276    323  
         Amortization of deferred stock-based  
               compensation    130    100    123  
         Increase (decrease) in liability for employee  
               termination benefits, net    (2 )  144    (33 )
   
         Net recognized losses (gains) on investments    4    (4 )  4  
         Increase in trade accounts receivables    (622 )  (2,441 )  (208 )
         Decrease in inventories    790    636    1,703  
         Decrease (increase) in other current and long term  
               assets    45    (608 )  314  
         Decrease in trade accounts payables    (662 )  (102 )  (494 )
         Increase (decrease) in current liabilities    1,039    (2 )  (1,918 )
         Increase (decrease) in short and long term  
               deferred income    (857 )  (44 )  526  



    Net cash from (used in) operating activities       1,866     (2,139 )   (2,284 )



   
CASH FLOW - INVESTMENT ACTIVITIES    
   
    Increase in short-term interest-bearing bank deposits    -    -    (46 )
    Decrease (increase) in short-term investments    4,595    -    (4,243 )
    Proceeds from held to maturity securities    -    -    1,506  
    Proceeds (investments) in long-term deposits    (2 )  141    9  
    Additions to fixed assets    (72 )  (24 )  (165 )



    Net cash from (used in) investment activities       4,521     117     (2,939 )



   
CASH FLOW - FINANCING ACTIVITIES    
   
    Shares issued under employee share-based plans    142    -    -  



    Net cash from investment activities       142     -     -  



   
    Increase (decrease) in cash and cash equivalents       6,529     (2,022 )   (5,223 )
    Cash and cash equivalents - beginning of period       9,017     11,039     13,744  



    Cash and cash equivalents - end of period       15,546     9,017     8,521  






NOVA MEASURING INSTRUMENTS LTD.
YEAR TO DATE CONSOLIDATED STATEMENTS OF CASH FLOWS

(U.S. dollars in thousands)

Nine months ended
September 30,
September 30,
2009
2008
 
CASH FLOW - OPERATING ACTIVITIES            
   
    Net loss for the period    (63 )  (3,850 )
    Adjustments to reconcile net loss to net cash  
         used in operating activities:  
   
         Depreciation and amortization    907    1,005  
         Amortization of deferred stock-based compensation    336    442  
         Increase in liability for employee termination benefits, net    28    94  
         Impairment loss on equipment    -    633  
   
         Net recognized losses on investments    -    17  
         Decrease (increase) in trade accounts receivables    (2,819 )  3,898  
         Decrease in inventories    1,946    571  
         Decrease in other current and long term assets    134    207  
         Decrease in trade accounts payables and other long term  
             liabilities    (1,964 )  (3,561 )
         Decrease in current liabilities    (600 )  (3,117 )
         Increase (decrease) in short and long term deferred income    (1,795 )  1,079  


    Net cash used in operating activities       (3,890 )   (2,582 )


   
CASH FLOW - INVESTMENT ACTIVITIES    
   
    Decrease (increase) in short-term interest-bearing bank deposits    50    (118 )
    Increase in short-term and long-term investments    -    (8,554 )
    Proceeds from held to maturity securities    -    3,700  
    Proceeds from long-term deposits    19    1,643  
    Additions to fixed assets    (100 )  (904 )


    Net cash used in investment activities       (31 )   (4,233 )


   
CASH FLOW - FINANCING ACTIVITIES    
   
    Shares issued under employee share-based plans    142    12  


    Net cash from financing activities       142     12  


   
    Decrease in cash and cash equivalents       (3,779 )   (6,803 )
    Cash and cash equivalents - beginning of period       19,325     15,324  


    Cash and cash equivalents - end of period       15,546     8,521  





NOVA MEASURING INSTRUMENTS LTD.
DISCLOSURE OF NON-GAAP NET INCOME (LOSS)

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

Three months ended
September 30,
June 30,
September 30,
2009
2009
2008
 
GAAP Net income (loss) for the period       1,690     (94 )   (2,624 )
   
Non-GAAP Adjustments:   
    Stock based compensation expenses    130    100    123  
    Inventory write-off    -    -    850  



   
Non-GAAP Net income (loss) for the period       1,820     6     (1,651 )



   
    Non-GAAP net income (loss) per share:  
         Basic    0.09    0.00    (0.09 )



         Diluted    0.09    0.00    (0.09 )



   
    Shares used for calculation of non-GAAP net income  
    (loss) per share:  
         Basic    19,417    19,378    19,378  



         Diluted    19,942    19,378    19,378  




Nine months ended
September 30,
September 30,
2009
2008
 
GAAP Net loss for the period       (63 )   (3,850 )
   
Non-GAAP Adjustments:   
    Stock based compensation expenses    336    442  
    Inventory write-off    -    850  
    Impairment loss on equipment related to  
    Hypernex assets and liabilities acquisition    -    633  


   
Non-GAAP Net income (loss) for the period       273     (1,925 )


   
Non-GAAP net income (loss) per share:  
    Basic    0.01    (0.10 )


    Diluted    0.01    (0.10 )


   
Shares used for calculation of non-GAAP net  
income (loss) per share  
    Basic    19,391    19,366  


   
    Diluted    19,749    19,433