|
NOVA LTD.
(Registrant) By: /s/ Dror David ————————————— Dror David
Chief Financial Officer |
• |
Quarterly revenue of $132.2 million, down 1% year over year
|
• |
GAAP net income of $34.6 million, or $1.09 per diluted share, up 2% year over year on a per-share basis, exceeding management guidance of $0.77 to $0.98
|
• |
Non-GAAP net income of $39.1 million, or $1.23 per diluted share, down 5% year over year on a per-share basis, exceeding management guidance of $0.93 to $1.14
|
• |
Significant improvement in blended gross margin, driven by record software revenues and a favorable product mix
|
• |
Record bookings for materials metrology, including VERAFLEX, METRION, and ELIPSON platforms
|
Q1 2023
|
Q4 2022
|
Q1 2022
|
|
Revenues
|
$132,193
|
$151,238
|
$133,957
|
Net Income
|
$34,627
|
$36,098
|
$34,162
|
Earnings per Diluted Share
|
$1.09
|
$1.14
|
$1.07
|
Q1 2023
|
Q4 2022
|
Q1 2022
|
|
Net Income
|
$39,075
|
$40,778
|
$41,487
|
Earnings per Diluted Share
|
$1.23
|
$1.28
|
$1.30
|
● |
$117 million to $125 million in revenue
|
● |
$0.75 to $0.89 in diluted GAAP EPS
|
● |
$0.92 to $1.06 in diluted non-GAAP EPS
|
As of
|
||||||||
March 31,
|
December 31,
|
|||||||
|
2023
|
2022
|
||||||
ASSETS | ||||||||
Current assets
|
||||||||
Cash and cash equivalents
|
96,075
|
111,121
|
||||||
Short-term interest-bearing bank deposits
|
113,562
|
95,305
|
||||||
Marketable securities
|
179,761
|
167,073
|
||||||
Trade accounts receivable, net
|
100,985
|
109,320
|
||||||
Inventories
|
137,096
|
116,600
|
||||||
Other current assets
|
21,639
|
13,527
|
||||||
Total current assets
|
649,118
|
612,946
|
||||||
Non-current assets
|
||||||||
Marketable securities
|
154,825
|
153,462
|
||||||
Interest-bearing bank deposits and restricted cash
|
5,998
|
2,083
|
||||||
Deferred tax assets
|
21,656
|
20,097
|
||||||
Operating lease right-of-use assets
|
43,968
|
44,885
|
||||||
Property plant and equipment, net
|
56,821
|
55,886
|
||||||
Intangible assets, net
|
42,969
|
43,586
|
||||||
Goodwill
|
49,585
|
49,009
|
||||||
Other long-term assets
|
1,997
|
2,151
|
||||||
Total non-current assets
|
377,819
|
371,159
|
||||||
Total assets
|
1,026,937
|
984,105
|
||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
Current liabilities
|
||||||||
Trade accounts payable
|
43,092
|
42,732
|
||||||
Deferred revenues
|
30,238
|
30,543
|
||||||
Operating lease current liabilities
|
5,974
|
5,968
|
||||||
Other current liabilities
|
56,426
|
54,825
|
||||||
Total current liabilities
|
135,730
|
134,068
|
||||||
Non-current liabilities
|
||||||||
Convertible senior notes, net
|
196,710
|
196,394
|
||||||
Operating lease long-term liabilities
|
41,932
|
43,697
|
||||||
Long-term deferred tax liability
|
12,065
|
12,190
|
||||||
Other long-term liabilities
|
11,206
|
10,793
|
||||||
Total non-current liabilities
|
261,913
|
263,074
|
||||||
Shareholders' equity
|
629,294
|
586,963
|
||||||
Total liabilities and shareholders' equity
|
1,026,937
|
984,105
|
Three months ended March 31,
|
||||||||
2023
|
2022
|
|||||||
Revenues:
|
||||||||
Products
|
105,331
|
109,912
|
||||||
Services
|
26,862
|
24,045
|
||||||
Total revenues
|
132,193
|
133,957
|
||||||
Total cost of revenues
|
54,927
|
59,282
|
||||||
Gross profit
|
77,266
|
74,675
|
||||||
Operating expenses:
|
||||||||
Research and development, net
|
22,968
|
19,129
|
||||||
Sales and marketing
|
13,522
|
12,384
|
||||||
General and administrative
|
5,039
|
6,056
|
||||||
Total operating expenses
|
41,529
|
37,569
|
||||||
Operating income
|
35,737
|
37,106
|
||||||
Financing income, net
|
4,728
|
1,218
|
||||||
Income before taxes on income
|
40,465
|
38,324
|
||||||
Income tax expenses
|
5,838
|
4,162
|
||||||
Net income for the period
|
34,627
|
34,162
|
||||||
Earnings per share:
|
||||||||
Basic
|
1.21
|
1.20
|
||||||
Diluted
|
1.09
|
1.07
|
||||||
Shares used in calculation of earnings per share (in thousands):
|
||||||||
Basic
|
28,678
|
28,579
|
||||||
Diluted
|
31,824
|
31,968
|
Three months ended March 31,
|
||||||||
2023
|
2022
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
34,627
|
34,162
|
||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation of property and equipment
|
2,340
|
2,035
|
||||||
Amortization of intangible assets
|
1,444
|
1,613
|
||||||
Amortization of premium and accretion of discount on marketable securities, net
|
(428
|
)
|
829
|
|||||
Amortization of debt discount and issuance costs
|
316
|
320
|
||||||
Share-based compensation
|
4,394
|
3,860
|
||||||
Net effect of exchange rate fluctuation
|
1,349
|
793
|
||||||
Changes in assets and liabilities:
|
||||||||
Trade accounts receivables, net
|
8,617
|
470
|
||||||
Inventories
|
(20,335
|
)
|
(6,898
|
)
|
||||
Other current and long-term assets
|
(8,231
|
)
|
(15,996
|
)
|
||||
Deferred tax assets, net
|
(1,937
|
)
|
(2,609
|
)
|
||||
Operating lease right-of-use assets
|
802
|
912
|
||||||
Trade accounts payables
|
500
|
(1,941
|
)
|
|||||
Deferred revenues
|
(313
|
)
|
(744
|
)
|
||||
Operating lease liabilities
|
(1,645
|
)
|
(806
|
)
|
||||
Other current and long-term liabilities
|
1,670
|
(3,151
|
)
|
|||||
Accrued severance pay, net
|
(98
|
)
|
61
|
|||||
Net cash provided by operating activities
|
23,072
|
12,910
|
||||||
Cash flows from investment activities:
|
||||||||
Acquisition of subsidiary, net of acquired cash
|
-
|
(78,469
|
)
|
|||||
Change in short-term and long-term interest-bearing bank deposits
|
(23,062
|
)
|
49,632
|
|||||
Investment in marketable securities
|
(53,682
|
)
|
(16,836
|
)
|
||||
Proceeds from maturity of marketable securities
|
41,892
|
15,770
|
||||||
Purchase of property and equipment
|
(2,758
|
)
|
(3,718
|
)
|
||||
Net cash used in investing activities
|
(37,610
|
)
|
(33,621
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Purchases of treasury shares
|
(112
|
)
|
-
|
|||||
Net cash used in financing activities
|
(112
|
)
|
-
|
|||||
Effect of exchange rate fluctuations on cash and cash equivalents
|
(996
|
)
|
(794
|
)
|
||||
Changes in cash and cash equivalents and restricted cash
|
(15,646
|
)
|
(21,505
|
)
|
||||
Cash and cash equivalents and restricted cash - beginning of period
|
111,721
|
126,698
|
||||||
Cash and cash equivalents - end of period
|
96,075
|
105,193
|
Three months ended
|
||||||||||||
March 31,
2023 |
December 31,
2022 |
March 31,
2022 |
||||||||||
GAAP gross profit
|
77,266
|
82,421
|
74,675
|
|||||||||
Stock-based compensation*
|
1,165
|
1,148
|
883
|
|||||||||
Amortization of acquired intangible assets
|
1,338
|
1,307
|
1,475
|
|||||||||
Acquisition related inventory step-up
|
-
|
-
|
2,606
|
|||||||||
Non-GAAP gross profit
|
79,769
|
84,876
|
79,639
|
|||||||||
GAAP gross margin as a percentage of revenues
|
58
|
%
|
54
|
%
|
56
|
%
|
||||||
Non-GAAP gross margin as a percentage of revenues
|
60
|
%
|
56
|
%
|
59
|
%
|
||||||
GAAP operating income
|
35,737
|
36,924
|
37,106
|
|||||||||
Stock-based compensation*
|
4,394
|
4,381
|
3,860
|
|||||||||
Acquisition-related inventory step-up
|
-
|
-
|
2,606
|
|||||||||
Acquisition-related expenses and contingent consideration revaluation
|
-
|
(752
|
)
|
1,355
|
||||||||
Amortization of acquired intangible assets
|
1,444
|
1,463
|
1,613
|
|||||||||
Non-GAAP operating income
|
41,575
|
42,016
|
46,540
|
|||||||||
GAAP operating margin as a percentage of revenues
|
27
|
%
|
24
|
%
|
28
|
%
|
||||||
Non-GAAP operating margin as a percentage of revenues
|
31
|
%
|
28
|
%
|
35
|
%
|
||||||
GAAP net income
|
34,627
|
36,098
|
34,162
|
|||||||||
Stock-based compensation*
|
4,394
|
4,381
|
3,860
|
|||||||||
Acquisition-related inventory step-up
|
-
|
-
|
2,606
|
|||||||||
Acquisition-related expenses and contingent consideration revaluation
|
-
|
(752
|
)
|
1,355
|
||||||||
Amortization of acquired intangible assets
|
1,444
|
1,463
|
1,613
|
|||||||||
Amortization of debt discount and issuance costs
|
316
|
322
|
320
|
|||||||||
Revaluation of operating lease liabilities
|
(822
|
)
|
294
|
(546
|
)
|
|||||||
Tax effect of non-GAAP adjustments
|
(884
|
)
|
(1,028
|
)
|
(1,883
|
)
|
||||||
Non-GAAP net income
|
39,075
|
40,778
|
41,487
|
|||||||||
GAAP basic earnings per share
|
1.21
|
1.26
|
1.20
|
|||||||||
Non-GAAP basic earnings per share
|
1.36
|
1.42
|
1.45
|
|||||||||
GAAP diluted earnings per share
|
1.09
|
1.14
|
1.07
|
|||||||||
Non-GAAP diluted earnings per share
|
1.23
|
1.28
|
1.30
|
|||||||||
Shares used for calculation of earnings per share (in thousands):
|
||||||||||||
Basic
|
28,678
|
28,731
|
28,579
|
|||||||||
Diluted
|
31,824
|
31,737
|
31,968
|
Low
|
High
|
|||||||
Estimated GAAP net income per diluted share
|
0.75
|
0.89
|
||||||
Estimated non-GAAP items:
|
||||||||
Stock-based compensation
|
0.15
|
0.15
|
||||||
Amortization of acquired intangible assets
|
0.04
|
0.04
|
||||||
Amortization of issuance costs
|
0.01
|
0.01
|
||||||
Tax effect of non-GAAP adjustments
|
(0.03
|
)
|
(0.03
|
)
|
||||
Estimated non-GAAP net income per diluted share
|
0.92
|
1.06
|