zk1415695.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
 
October 29, 2014
 
Commission File No.: 000-30668
 
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): ____ 
 
Attached hereto and incorporated by way of reference herein is a press release issued by the Registrant and entitled: “Nova Announces 2014 Third 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: October 29, 2014
 
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:
Hayden/ MS-IR LLC
Miri Segal
Tel: +917-607-8654
E-mail: msegal@ms-ir.com
Or
David Fore
Tel: +206-395-2711
E-mail: dave@haydenir.com

Company Press Release

NOVA ANNOUNCES 2014 THIRD QUARTER RESULTS

Year-to-Date GAAP Net Income More Than Doubles
 
REHOVOT, Israel, October 29, 2014 - Nova Measuring Instruments (Nasdaq: NVMI), a leading innovator and a key provider of optical metrology solutions for advanced process control used in semiconductor manufacturing, today reported 2014 third quarter results.
 
Quarterly Highlights:
 
 
·
Quarterly revenues of $27.4 million, up 6% from $25.8 million a year ago
 
·
Quarterly gross margin of 54%, compared with 51% a year ago
 
·
Quarterly net income of $3.3 million, up 46% from $2.2 million a year ago
 
·
Increased deliveries to support growing DRAM demand
 
·
Selected by a leading logic manufacturer to support its 10nm and 7nm nodes
 
·
Increased revenue stream from new SW solutions
 
GAAP Results ($K)
 
    Q3 2014      Q2 2014      Q3 2013  
Revenues
  $ 27,350     $ 32,785     $ 25,771  
Net Income
  $ 3,269     $ 5,694     $ 2,240  
Earnings per Diluted Share
  $ 0.12     $ 0.20     $ 0.08  
 
NON-GAAP Results ($K)
 
    Q3 2014      Q2 2014      Q3 2013  
Net Income
  $ 3,854     $ 6,108     $ 2,724  
Earnings per Diluted Share
  $ 0.14     $ 0.22     $ 0.10  
 
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 adjustments of deferred tax assets and stock based compensation expenses.

 
1

 
Management Comments
 
“We posted solid quarterly results with revenue performance in line with our guidance and profits better than market expectations,” commented Eitan Oppenhaim, President and CEO of Nova. “Our profitability this quarter demonstrates that we are effectively executing our growth plan while maintaining the operational efficiency and flexibility needed to match industry cycles. Our business model enables us to continue investing extensively in our development programs in order to maintain long term innovation leadership and continuous growth.”
 
“Nova continues to navigate through the industry’s near-term challenges while increasing focus on profitability and technology leadership. We were successful this quarter in diversifying our customer base, winning a competitive selection for 10/7 nm and accelerating our software revenue stream,” added Mr. Oppenhaim. “The anticipated transitions to advanced nodes during next year, along with our growing customers’ presence, reinforce our confidence that we are well positioned to capture the growing opportunities during 2015.”
 
Third Quarter 2014 Results
 
Total revenues for the third quarter of 2014 were $27.4 million, an increase of 6% relative to the third quarter of 2013, and a decrease of 17% relative to the second quarter of 2014.
 
Gross margin for the third quarter of 2014 was 54%, compared with 51% in the third quarter of 2013 and 54% in the second quarter of 2014.
 
Operating expenses in the third quarter of 2014 were $11.5 million, an increase of 5% relative to the third quarter of 2013, and a decrease of 4% relative to the second quarter of 2014.
 
On a GAAP basis, the company reported net income of $3.3 million, or $0.12 per diluted share, in the third quarter of 2014. This compares to a net income of $2.2 million, or $0.08 per diluted share, in the third quarter of 2013, and a net income of $5.7 million, or $0.20 per diluted share, in the second quarter of 2014.
 
On a Non-GAAP basis, which excludes adjustments of deferred tax assets and stock based compensation expenses, the company reported net income of $3.9 million, or $0.14 per diluted share, in the third quarter of 2014. This compares to a net income of $2.7 million, or $0.10 per diluted share, in the third quarter of 2013, and a net income of $6.1 million, or $0.22 per diluted share, in the second quarter of 2014.
 
Conference Call Information
 
Nova will host a conference call on Wednesday, October 29, 2014 at 8:30 a.m. Eastern Time, to discuss the third quarter results and future outlook, along with its guidance for the fourth quarter of 2014.
 
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.

 
2

 

U.S. Dial-in Number:  1-888-801-6507
ISRAEL Dial-in Number:  1809-24-6037
INTERNATIONAL Dial-in Number:  1-913-312-1381

At:

8:30 a.m. Eastern Time
5:30 a.m. Pacific Time
2:30 p.m. Israeli Time

The conference call will also be webcast live from a link on Nova’s website at http://ir.novameasuring.com. For those unable to participate in the conference call, there will be a replay available from a link on Nova’s website at http://ir.novameasuring.com.
 
About Nova: Nova Measuring Instrument Ltd. delivers continuous innovation by providing advanced optical metrology solutions for the semiconductor manufacturing industry. Deployed with the world’s largest integrated-circuit manufacturers, Nova’s products deliver 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, supports the development and production of the most advanced devices in today’s high-end semiconductor market. Nova’s technical innovation and market leadership enable customers to improve process performance, enhance products’ 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.novameasuring.com.
 
Nova is traded on the NASDAQ & TASE under the symbol NVMI.
 
This press release provides financial measures that exclude non-cash charges for stock-based compensation expenses, deferred income tax expenses, income from insurance claim and loss related to equipment and inventory damage 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; our dependency on a small number of large customers and small number of suppliers; 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; 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 the extremely competitive market we are operation in;  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; new product offerings from our competitors; 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, 2013 filed with the Securities and Exchange Commission on February 28, 2014. 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
September 30,
   
As of December 31,
 
   
2014
   
2013
 
             
CURRENT ASSETS
           
Cash and cash equivalents
    13,149       17,542  
Short-term interest-bearing bank deposits
    99,744       79,552  
Available for sale securities
    1,747       1,845  
Trade accounts receivable
    22,900       27,947  
Inventories
    17,042       18,118  
Deferred income tax assets
    221       137  
Other current assets
    2,774       3,922  
      157,577       149,063  
LONG-TERM ASSETS
               
Long-term interest-bearing bank deposits
    1,000       750  
Other long-term assets
    186       230  
Severance pay funds
    1,660       1,852  
      2,846       2,832  
                 
FIXED ASSETS, NET
    10,637       10,382  
                 
TOTAL ASSETS
    171,060       162,277  
                 
CURRENT LIABILITIES
               
Trade accounts payable
    8,889       15,599  
Deferred income
    4,010       3,420  
Other current liabilities
    12,561       11,448  
      25,460       30,467  
                 
LONG-TERM LIABILITIES
               
Liability for employee severance pay
    2,587       2,798  
Deferred income
    175       341  
Other long-term liability
    5       7  
      2,767       3,146  
                 
SHAREHOLDERS' EQUITY
    142,833       128,664  
                 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
    171,060       162,277  

 
4

 

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

   
Three months ended
 
   
September 30,
2014
   
June 30,
2014
   
September 30,
 2013
 
       
REVENUES
                 
Products
    20,157       26,015       19,911  
Services
    7,193       6,770       5,860  
      27,350       32,785       25,771  
                         
COST OF REVENUES
                       
Products
    8,543       11,050       9,045  
Services
    3,975       4,139       3,626  
      12,518       15,189       12,671  
                         
GROSS PROFIT
    14,832       17,596       13,100  
                         
OPERATING EXPENSES
                       
Research and Development expenses, net
    7,510       7,152       7,021  
Sales and Marketing expenses
    2,888       3,505       2,643  
General and Administration expenses
    1,096       1,316       1,256  
      11,494       11,973       10,920  
                         
OPERATING PROFIT
    3,338       5,623       2,180  
                         
INTEREST INCOME, NET
    20       202       257  
                         
INCOME BEFORE INCOME TAXES
    3,358       5,825       2,437  
                         
    INCOME TAX EXPENSES
    89       131       197  
                         
NET INCOME FOR THE PERIOD
    3,269       5,694       2,240  
                         
Earnings per share:
                       
Basic
    0.12       0.21       0.08  
Diluted
    0.12       0.20       0.08  
                         
Shares used for calculation of earnings per share:
                       
Basic
    27,496       27,592       27,237  
Diluted
    27,780       28,138       27,503  

 
5

 


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, 2014
   
September 30, 2013
 
       
REVENUES
           
Product
    74,948       64,671  
Services
    19,847       16,649  
      94,795       81,320  
                 
COST OF REVENUES
               
Product sales
    32,390       27,466  
Services
    12,254       10,655  
      44,644       38,121  
                 
GROSS PROFIT
    50,151       43,199  
                 
OPERATING EXPENSES
               
Research and Development expenses, net
    21,563       22,087  
Sales and Marketing expenses
    9,799       8,835  
General and Administration expenses
    3,476       3,847  
      34,838       34,769  
                 
OPERATING PROFIT
    15,313       8,430  
                 
    INTEREST INCOME, NET
    397       633  
                 
INCOME BEFORE INCOME TAXES
    15,710       9,063  
                 
    INCOME TAX EXPENSES
    349       1,625  
                 
NET INCOME FOR THE PERIOD
    15,361       7,438  
                 
Net income per share:
               
Basic
    0.56       0.27  
Diluted
    0.55       0.27  
                 
Shares used for calculation of net income per share:
               
Basic
    27,506       27,071  
Diluted
    27,920       27,343  
 
 
6

 
 
NOVA MEASURING INSTRUMENTS LTD.
QUARTERLY CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
 
   
Three months ended
 
   
September 30,
2014
   
June 30,
2014
   
September 30,
2013
 
                   
CASH FLOW – OPERATING ACTIVITIES
                 
                   
Net income for the period
    3,269       5,694       2,240  
                         
Adjustments to reconcile net income to net cash
   provided by operating activities:
                       
                         
Depreciation and amortization
    1,072       972       907  
Amortization of deferred stock-based compensation
    620       472       368  
Increase (decrease)  in liability for employee
   termination benefits, net
    (77 )     74       (1 )
Deferred income taxes
    (35 )     (58 )     116  
Decrease (increase) in trade accounts receivables
    3,330       (3,898 )     (1,112 )
Decrease in inventories
    1,963       688       144  
Decrease (increase)  in other current and long term
           assets
    1,254       257       (1,064 )
Increase (decrease) in trade accounts payables
   and other long-term liabilities
    (3,207 )     (2,456 )     250  
Increase (decrease) in other current liabilities
    56       (787 )     614  
Increase (decrease) in short and long term
   deferred income
    (1,906 )     1,247       793  
Net cash provided by operating activities
    6,339       2,205       3,255  
                         
CASH FLOW – INVESTMENT ACTIVITIES
                       
                         
Increase in short-term interest-bearing bank deposits
    (8,458 )     (1,943 )     (4,548 )
Decrease (increase) in short-term available for sale
     securities
    18       (19 )     -  
Additions to fixed assets
    (1,788 )     (1,228 )     (761 )
Net cash used in investment activities
    (10,228 )     (3,190 )     (5,309 )
                         
CASH FLOW – FINANCING ACTIVITIES
                       
                         
Purchases of treasury shares
    (3,173 )     (1,103 )     -  
Shares issued under employee share-based plans
    312       961       12  
Net cash provided by (used in) financing activities
    (2,861 )     (142 )     12  
                         
Decrease in cash and cash equivalents
    (6,750 )     (1,127 )     (2,042 )
Cash and cash equivalents – beginning of period
    19,899       21,026       17,799  
Cash and cash equivalents – end of period
    13,149       19,899       15,757  

 
7

 

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

   
Nine months ended
 
   
September 30, 2014
   
September 30, 2013
 
CASH FLOW – OPERATING ACTIVITIES
           
             
Net income for the period
    15,361       7,438  
                 
  Adjustments to reconcile net income to net cash
provided by operating activities:
               
                 
Depreciation and amortization
    2,946       2,577  
Loss related to equipment and inventory damage
    -       148  
Amortization of deferred stock-based compensation
    1,614       1,577  
       Increase (decrease) in liability for employee termination
benefits, net
    (29 )     54  
      Deferred income taxes
    (84 )     1,438  
      Decrease (increase) in trade accounts receivables
    5,173       (3,467 )
      Decrease in inventories
    1,291       167  
      Decrease (increase) in other current and long term assets
    794       (943 )
      Increase (decrease) in trade accounts payables and
             other long term liabilities
    (6,712 )     28  
Increase in other current liabilities
    502       1,454  
Increase (decrease) in short and long term deferred income
    424       (939 )
Net cash provided by operating activities
    21,280       9,532  
                 
CASH FLOW – INVESTMENT ACTIVITIES
               
                 
Increase in short-term and long-term interest-bearing
     bank deposits
    (20,442 )     (8,880 )
 Proceeds from insurance claim
    -       219  
 Additions to fixed assets
    (3,541 )     (2,145 )
 Net cash used in investment activities
    (23,983 )     (10,806 )
                 
CASH FLOW – FINANCING ACTIVITIES
               
                 
 Purchases of treasury shares
    (4,276 )     -  
 Shares issued under employee share-based plans
    2,586       1,068  
 Net cash provided by (used in) financing activities
    (1,690 )     1,068  
                 
Decrease  in cash and cash equivalents
    (4,393 )     (206 )
Cash and cash equivalents – beginning of period
    17,542       15,963  
Cash and cash equivalents – end of period
    13,149       15,757  

 
8

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

   
Three months ended
 
   
September 30,
   
June 30,
   
September 30,
 
   
2014
   
2014
   
2013
 
                   
GAAP Net income for the period
    3,269       5,694       2,240  
                         
Non-GAAP Adjustments:
                       
Stock based compensation expenses
    620       472       368  
Deferred income taxes
    (35 )     (58 )     116  
                         
Non-GAAP Net income for the period
    3,854       6,108       2,724  
                         
Non-GAAP Net income per share:
                       
Basic
    0.14       0.22       0.10  
Diluted
    0.14       0.22       0.10  
                         
Shares used for calculation of  Non-GAAP net income per share:
                       
Basic
    27,496       27,592       27,237  
Diluted
    27,780       28,138       27,503  

   
Nine months ended
 
   
September 30,
   
September 30,
 
   
2014
   
2013
 
             
GAAP Net income for the period
    15,361       7,438  
                 
Non-GAAP Adjustments:
               
Stock based compensation expenses
    1,614       1,577  
Deferred income taxes
    (84 )     1,438  
Income from insurance claim
    -       (509 )
Loss related to equipment and inventory damage
    -       148  
                 
Non-GAAP Net income for the period
    16,891       10,092  
                 
Non-GAAP Net income per share:
               
Basic
    0.61       0.37  
Diluted
    0.60       0.37  
                 
Shares used for calculation of Non-GAAP net income per share:
               
Basic
    27,506       27,071  
Diluted
    27,920       27,343  
 
9