zk1313436.htm


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
 
July 30, 2013
 
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 S 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): ____ 
 
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 £ No S
 
Attached hereto and incorporated by way of reference herein is a press release issued by the Registrant and entitled: “Nova Announces 2013 Second Quarter Results”.

The financial statements tables included in the press release (pages 4-8 of the press release) 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: December 29, 2005 (File No. 333-130745); November 5, 2007 (File No. 333-147140) and October 25, 2012 (File No. 333-184585).

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: July 30, 2013
 
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: +972-73-229-5833
E-mail: info@novameasuring.com
www.novameasuring.com
Investor Relations Contacts:
Ehud Helft / Kenny Green
CCG Investor Relations
Tel: +1-646-201-9246
E-mail: nova@ccgisrael.com
 
Company Press Release
 
NOVA ANNOUNCES 2013 SECOND QUARTER RESULTS
 
Rehovot, Israel – July 30, 2013 - 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 2013 second quarter results.
 
Highlights for the Second Quarter of 2013
 
 
·
Quarterly revenues of $28.1 million
 
 
·
Blended gross margin of 55%
 
 
·
GAAP Net income of $2.8 million, or $0.10 per diluted share
 
 
·
Non-GAAP Net income of $3.8 million, or $0.14 per diluted share
 
 
·
Positive cash flow from operations of $3.5 million
 
Management Comments
 
“We are pleased to report revenues for the second quarter near the high end of our guidance range,” said Gabi Seligsohn, President and CEO of Nova. “This strong performance, combined with a slightly more favorable revenue mix than we expected, also enabled us to exceed the high end of our earnings guidance.”
 
“Our strong position in the foundry segment continues to be reflected in our results, as several customers ramp up 28nm capacity, continuing the demand for both stand-alone and integrated metrology tools for this process node. In turn, we are able to continue to invest in breakthrough technology such as the new NovaMARS 6.0 modeling engine which we introduced during the second quarter, while also generating positive operating cash flow. During the second quarter, we increased our cash position to $98 million.”
 
 
 

 
 
Addressing the business outlook, Mr. Eitan Oppenheim, President and CEO-elect said, “We expect demand for both stand-alone and integrated systems from our broad base of foundry customers to continue during the second half of 2013, mainly for production in 28nm, and possibly 20nm late in the year. We also expect to ship systems for 20nm pilot lines and 16/14nm R&D lines. In addition, we will continue to take advantage of upgrade opportunities, while also collaborating on advanced process control development with leading customers and OEMs. During the second half of 2013, our focus will be on preparing for the 20nm ramp up and the next expansion phase in memory, increasing the adoption of our stand-alone metrology tools for advanced 3D processes, and continuing our strategic software development and expansion initiatives. We will also be leveraging our initial success to further penetrate the 3D interconnect market.”
 
Nova will discuss the results, along with its outlook and guidance for the third quarter of 2013, on a conference call today, July 30, 2013, beginning at 5:00pm ET. The call will be webcast live from a link on Nova’s website at http://ir.novameasuring.com.
 
Nova will also conduct a conference call in Hebrew on Wednesday, July 31, 2013 at 11:00am Israel Time.
 
2013 Second Quarter Results
 
Total revenues for the second quarter of 2013 were $28.1 million, an increase of 4% relative to the second quarter of 2012, and an increase of 3% relative to the first quarter of 2013.
 
Gross margin for the second quarter of 2013 was 55%, compared with 54% in the second quarter of 2012 and 54% in the first quarter of 2013.
 
Operating expenses in the second quarter of 2013 were $12.0 million, compared with $9.9 million in the second quarter of 2012 and $11.8 million in the first quarter of 2013.
 
On a GAAP basis, the company reported net income of $2.8 million, or $0.10 per diluted share, in the second quarter of 2013. This compares to a net income of $3.7 million, or $0.14 per diluted share, in the second quarter of 2012, and a net income of $2.4 million, or $0.09 per diluted share, in the first quarter of 2013.
 
On a Non-GAAP basis, which excludes deferred income tax adjustments, stock based compensation expenses and loss or income related to equipment and inventory damage, the company reported net income of $3.8 million, or $0.14 per diluted share, in the second quarter of 2013. This compares to a net income of $5.4 million, or $0.20 per diluted share, in the second quarter of 2012, and a net income of $3.6 million, or $0.13 per diluted share, in the first quarter of 2013.
 
Total cash reserves at the end of the second quarter of 2013 were $97.6 million.
 
Conference call details
 
To attend the conference call today, July 30, 2013, at 5:00pm ET, please dial in the US: 1 877 280 1254; or internationally +972 3 763 0145 or +1 646 254 3361.
 
 
2

 
 
To attend the conference call in Hebrew, on July 31, 2013, at 11:00am Israel Time, please dial +972 3 918 0609.
 
Nova’s financial results conference call on July 30, 2013 will be webcast live from a link on Nova’s website at http://ir.novameasuring.com, together with a presentation to accompany the conference call.
 
Replays of both the English and Hebrew conference calls will be available from the same link.
 
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.novameasuring.com.
 
This press release provides financial measures that exclude non-cash charges for stock-based compensation, loss or income related to equipment and inventory damage as well as deferred income taxes 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 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:  our dependency on two product lines; 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; our dependency on PEM; risks related to exclusivity obligations and non-limited liability that may be included in our commercial agreements and arrangements; cyber security risks; risks related to open source technologies; our ability to retain our competitive position despite the ongoing consolidation in our industry; risks related to our dependence on a single manufacturing facility; risks related to our lease agreements; our ability to expand our manufacturing capacity or marketing efforts to support our future growth; risks related to quarterly fluctuations in our operating results; risks related to the extremely competitive market we are operation in; our dependency on a small number of large customers and small number of suppliers; our dependency on our key employees; risks related to changes in our order backlog; risks related to the financial, political and environmental instabilities in Asia; 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, 2012 filed with the Securities and Exchange Commission on March 11, 2013. 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)
 
 
3

 
 
NOVA MEASURING INSTRUMENTS LTD.
CONSOLIDATED BALANCE SHEET
(U.S. dollars in thousands)

   
As of
June 30,
   
As of
December 31,
 
   
2013
   
2012
 
             
CURRENT ASSETS
           
Cash and cash equivalents
    17,799       15,963  
Short-term interest-bearing bank deposits
    79,371       75,039  
Trade accounts receivable
    19,717       17,362  
Inventories
    16,205       17,827  
Deferred income tax assets
    528       1,850  
Other current assets
    2,518       2,549  
      136,138       130,590  
LONG-TERM ASSETS
               
Long-term interest-bearing bank deposits
    405       405  
Other long-term assets
    419       516  
Severance pay funds
    1,819       1,873  
      2,643       2,794  
                 
FIXED ASSETS, NET
    9,607       8,660  
                 
TOTAL ASSETS
    148,388       142,044  
                 
CURRENT LIABILITIES
               
Trade accounts payable
    10,601       10,819  
Deferred income
    2,634       4,775  
Other current liabilities
    9,194       8,444  
      22,429       24,038  
                 
LONG-TERM LIABILITIES
               
Liability for employee severance pay
    2,805       2,806  
Deferred income
    568       159  
Other long-term liability
    266       270  
      3,639       3,235  
                 
SHAREHOLDERS' EQUITY
    122,320       114,771  
                 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
    148,388       142,044  

 
4

 

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

   
Three months ended
 
   
June 30,
2013
   
March 31,
2013
   
June 30,
 2012
 
       
REVENUES
                 
Products
    22,419       22,341       22,070  
Services
    5,705       5,084       4,980  
      28,124       27,425       27,050  
                         
COST OF REVENUES
                       
Products
    9,342       9,079       9,150  
Services
    3,449       3,580       3,324  
      12,791       12,659       12,474  
                         
GROSS PROFIT
    15,333       14,766       14,576  
                         
OPERATING EXPENSES
                       
Research and Development expenses, net
    7,567       7,499       5,893  
Sales and Marketing expenses
    2,968       3,224       3,048  
General and Administration expenses
    1,472       1,119       972  
      12,007       11,842       9,913  
                         
OPERATING PROFIT
    3,326       2,924       4,663  
                         
INTEREST INCOME, NET
    246       130       339  
                         
INCOME BEFORE INCOME TAXES
    3,572       3,054       5,002  
                         
    INCOME TAXES EXPENSES
    769       659       1,278  
                         
NET INCOME FOR THE PERIOD
    2,803       2,395       3,724  
                         
Net income per share:
                       
Basic
    0.10       0.09       0.14  
Diluted
    0.10       0.09       0.14  
                         
Shares used for calculation of net income per share
                       
Basic
    27,121       26,854       26,610  
Diluted
    27,419       27,261       27,299  

 
5

 
 
NOVA MEASURING INSTRUMENTS LTD.
YEAR TO DATE CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except per share data)

   
Six months ended
 
   
June 30, 2013
   
June 30, 2012
 
       
REVENUES
           
Product
    44,760       40,837  
Services
    10,789       8,815  
      55,549       49,652  
                 
COST OF REVENUES
               
Product sales
    18,421       16,345  
Services
    7,029       6,153  
      25,450       22,498  
                 
GROSS PROFIT
    30,099       27,154  
                 
OPERATING EXPENSES
               
Research and Development expenses, net
    15,066       11,474  
Sales and Marketing expenses
    6,192       5,929  
General and Administration expenses
    2,591       1,814  
      23,849       19,217  
                 
OPERATING PROFIT
    6,250       7,937  
                 
    INTEREST INCOME, NET
    376       748  
                 
INCOME BEFORE INCOME TAXES
    6,626       8,685  
                 
    INCOME TAX EXPENSES
    1,428       2,224  
                 
NET INCOME FOR THE PERIOD
    5,198       6,461  
                 
Net income per share:
               
Basic
    0.19       0.24  
Diluted
    0.19       0.24  
                 
Shares used for calculation of net income per share:
               
Basic
    26,988       26,575  
Diluted
    27,278       27,269  

 
6

 

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

   
Three months ended
 
   
June 30,
2013
   
March 31,
2013
   
June 30,
2012
 
CASH FLOW – OPERATING ACTIVITIES
                 
                   
Net income for the period
    2,803       2,395       3,724  
                         
Adjustments to reconcile net income to net cash
    provided by operating activities:
                       
                         
Depreciation and amortization
    846       824       577  
    Loss related to inventory damage
    148       -       -  
Amortization of deferred stock-based compensation
    624       585       409  
Increase (decrease) in liability for employee
           termination benefits, net
    66       (11 )     (41 )
    Deferred income taxes
    713       609       1,241  
Decrease (increase) in trade accounts receivables
    (712 )     (1,643 )     971  
Decrease (increase) in inventories
    583       (560 )     (3,282 )
Decrease (increase) in other current and long term
          Assets
    841       (720 )     (122 )
Increase (decrease) in trade accounts payables
     and other long-term liabilities
    (147 )     (75 )     1,170  
Increase (decrease) in other current liabilities
    (504 )     1,344       (375 )
Increase (decrease) in short and long term
          deferred income
    (1,793 )     61       212  
Net cash provided by operating activities
    3,468       2,809       4,484  
                         
CASH FLOW – INVESTMENT ACTIVITIES
                       
                         
Decrease (increase) in short-term interest-bearing
     bank deposits
    (6,317 )     1,985       (10,150 )
Proceeds from short-term held to maturity securities
    -       -       87  
Proceeds from insurance claim
    219       -       -  
Additions to fixed assets
    (1,042 )     (342 )     (679 )
Net cash provided by (used in) investment activities
    (7,140 )     1,643       (10,742 )
                         
CASH FLOW – FINANCING ACTIVITIES
                       
                         
Shares issued under employee share-based plans
    599       457       72  
Net cash provided by financing activities
    599       457       72  
                         
Increase (decrease) in cash and cash equivalents
    (3,073 )     4,909       (6,186 )
Cash and cash equivalents – beginning of period
    20,872       15,963       26,594  
Cash and cash equivalents – end of period
    17,799       20,872       20,408  

 
7

 
 
NOVA MEASURING INSTRUMENTS LTD.
YEAR TO DATE CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)

   
Six months ended
 
   
June 30, 2013
   
June 30, 2012
 
CASH FLOW – OPERATING ACTIVITIES
           
             
Net income for the period
    5,198       6,461  
Adjustments to reconcile net income to net cash
    provided by operating activities:
               
                 
Depreciation and amortization
    1,670       1,154  
    Loss related to equipment and inventory damage
    148       -  
Amortization of deferred stock-based compensation
    1,209       829  
Increase (decrease) in liability for employee
           termination benefits, net
    55       (51 )
    Deferred income taxes
    1,322       2,151  
Increase in trade accounts receivables
    (2,355 )     (4,118 )
Decrease (increase) in inventories
    23       (6,886 )
Decrease (increase) in other current and long term assets
    121       (653 )
Increase (decrease) in trade accounts payables and
    other long term liabilities
    (222 )     4,907  
Increase (decrease) in other current liabilities
    840       (616 )
Increase (decrease) in short and long term deferred income
    (1,732 )     1,372  
Net cash provided by operating activities
    6,277       4,550  
                 
CASH FLOW – INVESTMENT ACTIVITIES
               
                 
Increase in short-term interest-bearing bank deposits
    (4,332 )     (1,782 )
Proceeds from short-term held to
maturity securities
    -       33  
Proceeds from insurance claim
    219       -  
Additions to fixed assets
    (1,384 )     (1,252 )
Net cash used in investment activities
    (5,497 )     (3,001 )
                 
CASH FLOW – FINANCING ACTIVITIES
               
                 
Shares issued under employee share-based plans
    1,056       143  
Net cash provided by financing activities
    1,056       143  
                 
Increase in cash and cash equivalents
    1,836       1,692  
Cash and cash equivalents – beginning of period
    15,963       18,716  
Cash and cash equivalents – end of period
    17,799       20,408  

 
8

 
 
DISCLOSURE OF NON-GAAP NET INCOME
(U.S. dollars in thousands, except per share data)

   
Three months ended
 
   
June 30,
   
March 31,
   
June 30,
 
   
2013
   
2013
   
2012
 
                   
GAAP Net income for the period
    2,803       2,395       3,724  
                         
Non-GAAP Adjustments:
                       
Stock based compensation expenses
    624       585       409  
Income taxes expenses
    713       609       1,241  
Income from insurance claim
    (509 )     -       -  
Loss related to equipment and inventory damage
    148       -       -  
                         
Non-GAAP Net income for the period
    3,779       3,589       5,374  
                         
Non-GAAP Net income per share:
                       
Basic
    0.14       0.13       0.20  
Diluted
    0.14       0.13       0.20  
                         
Shares used for calculation of Non-GAAP net income per share:
                       
Basic
    27,121       26,859       26,610  
Diluted
    27,419       27,261       27,299  

   
Six months ended
 
   
June 30,
   
June 30,
 
   
2013
   
2012
 
             
GAAP Net income for the period
    5,198       6,461  
                 
Non-GAAP Adjustments:
               
Stock based compensation expenses
    1,209       829  
Deferred income taxes expenses
    1,322       2,151  
Income from insurance claim
    (509 )     -  
Loss related to equipment and inventory damage
    148       -  
                 
Non-GAAP Net income for the period
    7,368       9,441  
                 
Non-GAAP Net income per share:
               
Basic
    0.27       0.36  
Diluted
    0.27       0.35  
                 
Shares used for calculation of Non-GAAP net income per share:
               
Basic
    26,988       26,575  
Diluted
    27,278       27,269  
 
9