Nova Announces 2012 Fourth Quarter And Full Year Results

           Nova Announces 2012 Fourth Quarter And Full Year Results

PR Newswire

REHOVOT, Israel, Feb. 19, 2013

REHOVOT, Israel, Feb. 19, 2013 /PRNewswire/ -- 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 2012 fourth quarter and full year results.

Highlights for the Fourth Quarter of 2012

  oQuarterly revenues of $22.1 million
  oGross margin of 50%
  oGAAP Net income of $2.5 million, or $0.09 per diluted share
  oNon-GAAP Net income of $1.0 million, or $0.04 per diluted share

Highlights for the Full Year of 2012

  oAnnual revenues of $96.2 million
  oGross margin of 53%
  oGAAP Net income of $11.8 million, or $0.43 per diluted share
  oNon-GAAP Net income of $14.2 million, or $0.52 per diluted share

Management Comments

"Results for the fourth quarter were at the high end of our revenues guidance
range and we were able to capitalize on improving demand late in the quarter,"
commented Gabi Seligsohn, President and CEO of Nova. "Despite the weakness
during most of the second half of the year, we managed to generate positive
operating cash flow in 2012. We achieved this even after stepping up our
investment in research and development, and we ended the year with over $90
million in cash reserves. Our ability to invest ahead of important technology
transitions continues to be an important element of our long-term strategy.
Past investment, followed by multiple new products and strong execution, has
enabled us to significantly outperform the industry during 2012."

"With foundry demand returning toward the end of Q4, our bookings increased
and we ended the year with a significant improvement in our backlog, providing
strong momentum as we enter 2013. Demand for memory remains weak, but
continues to represent future upside potential. As expected, we are
benefitting from the need for additional foundry capacity and yield
improvements at 28nm, augmented by plans for ramping at the 20nm technology
node soon. Process control requirements will continue to increase as process
nodes shrink. We believe that optical metrology will continue to account for a
higher share of overall capital expenditures, increasing our available market.
Continuing our close collaboration with process equipment manufacturers and
end customers, we are focused on increasing our footprint within each fab,
expanding our customer base, and growing in exciting new market segments such
as 3D interconnect technology. Coupled with continued reinvestment in next
generation projects, these are the primary elements of our strategy for
achieving sustainable long term growth."

Nova will discuss the results for its fiscal year 2012, along with its outlook
and guidance for the first quarter of 2013, on a conference call today,
February 19, 2013, beginning at 5:00pm ET. A webcast of the call will be
available at: http://ir.novameasuring.com.

2012 Fourth Quarter Results

Total revenues for the fourth quarter of 2012 were $22.1 million, an increase
of 15% relative to the fourth quarter of 2011, and a decrease of 10% relative
to the third quarter of 2012.

Gross margin for the fourth quarter of 2012 was 50%, compared with 55% in the
fourth quarter of 2011 and 53% in the third quarter of 2012.

Operating expenses in the fourth quarter of 2012 were $11.4 million, compared
with $8.3 million in the fourth quarter of 2011 and $9.9 million in the third
quarter of 2012.

On a GAAP basis, the company reported net income of $2.5 million, or $0.09 per
diluted share, in the fourth quarter of 2012. This compares to a net income of
$5.0 million, or $0.18 per diluted share, in the fourth quarter of 2011, and a
net income of $2.9 million, or $0.11 per diluted share, in the third quarter
of 2012.

On a Non-GAAP basis, which excludes adjustments related to tax assets, stock
based compensation expenses and loss related to equipment and inventory
damage, the company reported net income of $1.0 million, or $0.04 per diluted
share, in the fourth quarter of 2012. This compares to a net income of $3.0
million, or $0.11 per diluted share, in the fourth quarter of 2011, and a net
income of $3.7 million, or $0.14 per diluted share, in the third quarter of
2012.

Total cash reserves at the end of the fourth quarter of 2012 were $91.4
million.

2012 Full Year Results

Total revenues for 2012 were $96.2 million, compared to total revenues of
$102.8 million for 2011.

Gross margin in 2012 was 53%, compared to 56% in 2011.

Operating expenses in 2012 were $40.6 million, compared to $33.3 million in
2011.

On a GAAP basis, the company reported net income of $11.8 million in 2012, or
$0.43 per diluted share. This compares to a net income of $28.1 million, or
$1.04 per diluted share, in 2011.

On a Non-GAAP basis, which excludes adjustments related to tax assets, stock
based compensation expenses and loss related to equipment and inventory
damage, the company reported net income $14.2 million in 2012, or $0.52 per
diluted share. This compares to a net income of $27.1 million, or $1.00 per
diluted share, in 2011.

During 2012, the company generated $7.7 million in cash flow from operating
activities, as compared to $25.1 million cash flow generated from operating
activities in 2011.

Total cash reserves at the end of 2012 were $91.4 million, compared to $87.1
million at the end of 2011.

Conference call details

To attend the conference call today, February 19, 2013, at 5:00pm ET, please
dial in the US: 1 877 249 9037; or internationally +972 3 763 0145 or +1 212
444 0481.

To attend the conference call in Hebrew, on February 20, 2013, at 11:00am
Israel Time, please dial +972 3 918 0609.

Both of the Nova financial results conference calls will be webcast live from
a link on Nova's website at http://ir.novameasuring.com, together with a
presentation to accompany the conference calls.

For those unable to participate in the conference calls, there will be replays
available from the same links.

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 related to equipment and inventory damage
as well as adjustments related to tax assets 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 OEM
suppliers; cyber security risks; risks related to open source technologies;
our ability to retain our competitive position despite the ongoing
consolidation in our industry; 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; 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, 2011 filed with the Securities and Exchange Commission on March
28, 2012. 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.

Company Contact:                  Investor Relations Contacts:
Dror David, Chief Financial Officer    Ehud Helft / Kenny Green
Nova Measuring Instruments Ltd.     CCG Investor Relations
Tel: 972-73-229-5833             Tel: +1-646-201-9246
E-mail: info@novameasuring.com        E-mail: nova@ccgisrael.com
http://www.novameasuring.com

(Tables to Follow)

NOVA MEASURING INSTRUMENTS LTD.
CONSOLIDATED BALANCE SHEET
(U.S. dollars in thousands)
                                            As of         As of
                                            December 31,  December 31,
                                            2012          2011
CURRENT ASSETS
 Cash and cash equivalents                15,963        18,716
Short-term interest-bearing bank deposits   75,039        66,247
Held to maturity securities                 --            1,582
Trade accounts receivable                   17,362        13,402
Inventories                                 17,827        9,608
Deferred income tax assets                  1,850         2,500
Other current assets                        2,549         1,173
                                            130,590       113,228
LONG-TERM ASSETS
Long-term interest-bearing bank deposits    405           545
Other long-term assets                      516           291
Severance pay funds                         1,873         2,885
                                            2,794         3,721
FIXED ASSETS, NET                           8,660         5,998
TOTAL ASSETS                                142,044       122,947
CURRENT LIABILITIES
Trade accounts payable                      10,819        8,305
Deferred income                             4,775         2,172
Other current liabilities                   8,444         8,082
                                            24,038        18,559
LONG-TERM LIABILITIES
Liability for employee severance pay        2,806         3,851
Deferred income                             159           611
Other long-term liability                   270           20
                                            3,235         4,482
SHAREHOLDERS' EQUITY                        114,771       99,906
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY  142,044       122,947



NOVA MEASURING INSTRUMENTS LTD.
QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except per share data)
                                     Three months ended
                                     December 31,  September 30, December 31,
                                     2012                        2011
                                                   2012
REVENUES
Products                             17,016        19,359        15,273
Services                             5,082         5,059         3,919
                                     22,098        24,418        19,192
COST OF REVENUES
Products                             7,390         7,999         5,972
Services                             3,644         3,483         2,693
                                     11,034        11,482        8,665
GROSS PROFIT                         11,064        12,936        10,527
OPERATING EXPENSES
Research and Development expenses,   7,117         6,003         4,567
net
Sales and Marketing expenses         3,102         2,967         2,951
General and Administration expenses  1,191         973           746
                                     11,410        9,943         8,264
OPERATING PROFIT (LOSS)              (346)         2,993         2,263
INTEREST INCOME, NET                 337           283           207
INCOME (LOSS) BEFORE INCOME TAXES    (9)           3,276         2,470
 INCOME TAX BENEFIT (EXPENSES)   2,481         (381)         2,500
NET INCOME FOR THE PERIOD            2,472         2,895         4,970
Earnings per share:
 Basic                           0.09          0.11          0.19
 Diluted                         0.09          0.11          0.18
Shares used for calculation of earnings per
share:
 Basic                           26,679        26,646        26,425
 Diluted                         27,317        27,485        27,007



NOVA MEASURING INSTRUMENTS LTD.
ANNUAL CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except per share data)
                                           Year ended
                                           December 31, 2012 December 31, 2011
REVENUES
Products                                   77,212            85,562
Services                                   18,956            17,266
                                           96,168            102,828
COST OF REVENUES
Products                                   31,734            33,789
Services                                   13,280            11,043
                                           45,014            44,832
GROSS PROFIT                               51,154            57,996
OPERATING EXPENSES
Research & Development expenses, net       24,594            18,677
Sales & Marketing expenses                 11,998            11,373
General & Administration expenses          3,978             3,229
                                           40,570            33,279
OPERATING PROFIT                           10,584            24,717
 INTEREST INCOME, NET
                                           1,368             901

INCOME BEFORE INCOME TAXES
                                           11,952            25,618

 INCOME TAX BENEFIT (EXPENSES)         (124)             2,500
NET INCOME FOR THE PERIOD                  11,828            28,118
Net income per share:
 Basic                                 0.44              1.07
 Diluted                               0.43              1.04
Shares used for calculation of net income
per share:
 Basic                                 26,619            26,232
 Diluted                        27,277            26,931



NOVA MEASURING INSTRUMENTS LTD.
QUARTERLY CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
                                                   Three months ended
                                                   December September December
                                                   31,2012 30,2012  31,2011
CASH FLOW – OPERATING ACTIVITIES
Net income for the period                          2,472    2,895     4,970
Adjustments to reconcile net income to net cash

 provided by operating activities:
 Depreciation and amortization                 858      771       541
 Loss related to equipment and inventory       509      -         -
damage
 Amortization of deferred stock-based          609      489       476
compensation
 Increase (decrease) in liability for employee                  

 termination benefits, net               104      (80)      (60)
 Decrease (increase) in deferred income tax    (1,806)  349       (2,500)
assets, net
 Decrease (increase) in trade accounts         (2,461)  2,619     (1,281)
receivables
 Decrease (increase) in inventories            143      (3,770)   954
 Decrease (increase) in other current and long 250      (64)      85
term Assets
Increase (decrease) in trade accounts                    
payables and other
 long-term liabilities             (2,392)  (5)       332
 Increase in other current liabilities   414      485       625
 Increase (decrease) in short and long                    
term
 deferred income                   207      572       (287)
Net cash provided by (used in) operating           (1,093)  4,261     3,855
activities
CASH FLOW – INVESTMENT ACTIVITIES
Decrease (increase) in short-term interest-bearing                  

 bank deposits                                 (18,110) 11,100    8,044
Decrease in long-term interest-bearing bank        140      -         86
deposits
Proceeds from (investments in) short-term held to                   

 maturity securities                           1,554    (5)       (482)
Additions to fixed assets                          (1,512)  (896)     (632)
Net cash provided by (used in) investment          (17,928) 10,199    7,016
activities
CASH FLOW – FINANCING ACTIVITIES
Shares issued under employee share-based plans     12       104       163
Net cash provided by financing activities          12       104       163
Increase (decrease) in cash and cash equivalents   (19,009) 14,564    11,034
Cash and cash equivalents – beginning of period    34,972   20,408    7,682
Cash and cash equivalents – end of period          15,963   34,972    18,716



NOVA MEASURING INSTRUMENTS LTD.
ANNUAL CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)
                                                     Year ended
                                                     December 31, December 31,
                                                     2012         2011
CASH FLOW – OPERATING ACTIVITIES
Net income for the period                            11,828       28,118
Adjustments to reconcile net income to net cash

 provided by operating activities:
 Depreciation and amortization                   2,783        1,700
 Loss related to equipment and inventory damage  509          -
 Amortization of deferred                        1,927        1,435
stock-basedcompensation
 Increase (decrease) in liability for employee               

 termination benefits, net                 (27)         43
 Decrease (increase) in deferred income tax      694          (2,500)
assets, net
 Increase in trade accounts receivables    (3,960)      (240)
 Increase in inventories                         (10,513)     (1,056)
 Increase in other current and long term assets  (467)        (305)
 Increase (decrease) in trade accounts
payables                                             2,510        (1,639)
 and other long term liabilities
 Increase in other current liabilities           283          159
 Increase (decrease) in short and long term      2,151        (614)
deferred income
Net cash provided by operating activities            7,718        25,101
CASH FLOW – INVESTMENT ACTIVITIES
Increase in short-term interest-bearing bank         (8,792)      (30,685)
deposits
Decrease in long-term interest-bearing bank deposits 140          86
Proceeds from (investments in) short-term held to                
maturity
                                                     1,582        (1,582)
 securities
Additions to fixed assets                            (3,660)      (2,307)
Net cash used in investment activities               (10,730)     (34,488)
CASH FLOW – FINANCING ACTIVITIES
Shares issued under employee share-based plans       259          2,709
Net cash provided by financing activities            259          2,709
Decrease in cash and cash equivalents                (2,753)      (6,678)
Cash and cash equivalents – beginning of period      18,716       25,394
Cash and cash equivalents – end of period            15,963       18,716



DISCLOSURE OF NON-GAAP NET INCOME
(U.S. dollars in thousands, except per share data)
                                       Three months ended
                                       December31, September30, December31,
                                       2012         2012          2011
GAAP Net income for the period         2,472        2,895         4,970
Non-GAAP Adjustments:
Stock based compensation expenses      609          489           476
Adjustments related to tax assets      (2,553)      349           (2,500)
Loss related to equipment and          509          -             -
inventory damage
Non-GAAP Net income for the period     1,037        3,733         2,946
Non-GAAP Net income per share:
 Basic                             0.04         0.14          0.11
 Diluted                           0.04         0.14          0.11
Shares used for calculation of
Non-GAAP net income per share:
 Basic                             26,679       26,646        26,425
 Diluted                           27,317       27,485        27,007

                                                     Year ended
                                                     December 31, December 31,
                                                     2012         2011
GAAP Net income for the period                       11,828       28,118
Non-GAAP Adjustments:
Stock based compensation expenses                    1,927        1,435
Adjustments related to tax assets                    (53)         (2,500)
Loss related to equipment and inventory damage       509          -
Non-GAAP Net income for the period                   14,211       27,053
Non-GAAP Net income per share:
 Basic                                           0.53         1.03
 Diluted                                         0.52         1.00
Shares used for calculation of Non-GAAP net income
per share:
 Basic                                           26,619       26,232
 Diluted                                         27,277       26,931



SOURCE Nova Measuring Instruments Ltd.

Website: http://www.novameasuring.com