NOVA LTD.
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(Registrant)
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By: /s/ Dror David
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Dror David
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Chief Financial Officer
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• |
Quarterly revenue of $122.7 million, above the midpoint of guidance range of $117 to $125 million and down 13% year over year.
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• |
GAAP net income of $29.9 million, or $0.94 per diluted share, higher than the company guidance of $0.75 to $0.89 and down 14% year over year on a per-share basis.
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• |
Non-GAAP net income of $33.8 million, or $1.06 per diluted share, reaching the top of the company’s guidance range of $0.92 to $1.06 and down 15% year over year on a per-share
basis.
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• |
Continued adoption of advanced dimensional and materials product portfolio, including the Elipson and multiple procurements of Nova’s newest Veraflex model by a leading Memory
customer.
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• |
Heightened interest in Nova’s unique technology offerings, including advanced packaging solutions, manifested by multiple evaluation processes at leading customers.
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Q2 2023
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Q1 2023
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Q2 2022
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Revenues
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$122,702
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$132,193
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$141,628
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Net Income
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$29,926
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$34,627
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$34,878
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Earnings per Diluted Share
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$0.94
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$1.09
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$1.09
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Q2 2023
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Q1 2023
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Q2 2022
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Net Income
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$33,814
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$39,075
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$39,546
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Earnings per Diluted Share
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$1.06
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$1.23
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$1.24
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• |
$119 million to $126 million in revenue
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• |
$0.83 to $0.94 in diluted GAAP EPS
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• |
$1.02 to $1.13 in diluted non-GAAP EPS
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As of
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June 30,
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December 31,
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|||||||
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2023
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2022
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ASSETS
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||||||||
Current assets
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||||||||
Cash and cash equivalents
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129,190
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111,121
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||||||
Short-term interest-bearing bank deposits
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99,036
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95,305
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||||||
Marketable securities
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188,163
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167,073
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||||||
Trade accounts receivable, net
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82,904
|
109,320
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||||||
Inventories
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149,001
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116,600
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||||||
Other current assets
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16,220
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13,527
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||||||
Total current assets
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664,514
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612,946
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||||||
Non-current assets
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||||||||
Marketable securities
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148,379
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153,462
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Interest-bearing bank deposits and restricted cash
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5,971
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2,083
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||||||
Deferred tax assets
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23,756
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20,097
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||||||
Operating lease right-of-use assets
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43,134
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44,885
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||||||
Property plant and equipment, net
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60,471
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55,886
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Intangible assets, net
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41,434
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43,586
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||||||
Goodwill
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49,539
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49,009
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||||||
Other long-term assets
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1,906
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2,151
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Total non-current assets
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374,590
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371,159
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Total assets
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1,039,104
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984,105
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LIABILITIES AND SHAREHOLDERS’ EQUITY
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||||||||
Current liabilities
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||||||||
Convertible senior notes, net
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197,030
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-
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||||||
Trade accounts payable
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35,951
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42,732
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Deferred revenues
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27,181
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30,543
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Operating lease current liabilities
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5,728
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5,968
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Other current liabilities
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47,323
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54,825
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Total current liabilities
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313,213
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134,068
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Non-current liabilities
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||||||||
Convertible senior notes, net
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-
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196,394
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Operating lease long-term liabilities
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40,564
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43,697
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Long-term deferred tax liability
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11,675
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12,190
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Other long-term liabilities
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11,324
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10,793
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Total non-current liabilities
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63,563
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263,074
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Shareholders' equity
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662,328
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586,963
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Total liabilities and shareholders' equity
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1,039,104
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984,105
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Three months ended June 30,
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Six months ended June 30,
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|||||||||||||||
2023
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2022
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2023
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2022
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Revenues:
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Products
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95,627
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114,120
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200,958
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224,032
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||||||||||||
Services
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27,075
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27,508
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53,937
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51,553
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||||||||||||
Total revenues
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122,702
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141,628
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254,895
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275,585
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Total cost of revenues
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53,044
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62,595
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107,971
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121,877
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||||||||||||
Gross profit
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69,658
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79,033
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146,924
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153,708
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||||||||||||
Operating expenses:
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Research and development, net
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22,413
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22,115
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45,381
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41,244
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Sales and marketing
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12,927
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12,500
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26,449
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24,884
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General and administrative
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5,602
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7,455
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10,641
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13,511
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||||||||||||
Total operating expenses
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40,942
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42,070
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82,471
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79,639
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||||||||||||
Operating income
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28,716
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36,963
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64,453
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74,069
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||||||||||||
Financing income, net
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5,628
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3,568
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10,356
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4,786
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||||||||||||
Income before taxes on income
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34,344
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40,531
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74,809
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78,855
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||||||||||||
Income tax expenses
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4,418
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5,653
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10,256
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9,815
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||||||||||||
Net income for the period
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29,926
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34,878
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64,553
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69,040
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Earnings per share:
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Basic
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1.04
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1.22
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2.25
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2.41
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Diluted
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0.94
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1.09
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2.02
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2.16
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Shares used in calculation of earnings per share
(in thousands): |
||||||||||||||||
Basic
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28,766
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28,688
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28,706
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28,662
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||||||||||||
Diluted
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31,928
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31,902
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31,927
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31,963
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Three months ended June 30,
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Six months ended June 30,
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|||||||||||||||
2023
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2022
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2023
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2022
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Cash flows from operating activities:
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||||||||||||||||
Net income
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29,926
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34,878
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64,553
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69,040
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||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities:
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||||||||||||||||
Depreciation of property and equipment
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2,476
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2,001
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4,816
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4,036
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||||||||||||
Amortization of intangible assets
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1,475
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1,513
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2,919
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3,126
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||||||||||||
Amortization of premium and accretion of discount on marketable securities, net
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(621
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)
|
715
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(1,049
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)
|
1,544
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||||||||||
Amortization of debt discount and issuance costs
|
320
|
318
|
636
|
638
|
||||||||||||
Share-based compensation
|
3,667
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4,072
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8,061
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7,932
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||||||||||||
Net effect of exchange rate fluctuation
|
407
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2,178
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1,756
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2,971
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||||||||||||
Changes in assets and liabilities:
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||||||||||||||||
Trade accounts receivable, net
|
18,064
|
(17,264
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)
|
26,681
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(16,794
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)
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||||||||||
Inventories
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(14,689
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)
|
(5,637
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)
|
(35,024
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)
|
(12,535
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)
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||||||||
Other current and long-term assets
|
5,513
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7,925
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(2,718
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)
|
(8,071
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)
|
||||||||||
Deferred tax assets, net
|
(2,406
|
)
|
(2,331
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)
|
(4,343
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)
|
(4,940
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)
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||||||||
Operating lease right-of-use assets
|
839
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1,123
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1,641
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2,035
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||||||||||||
Trade accounts payable
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(7,773
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)
|
881
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(7,273
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)
|
(1,060
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)
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|||||||||
Deferred revenues
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(3,055
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)
|
5,266
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(3,368
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)
|
4,522
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||||||||||
Operating lease liabilities
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(1,617
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)
|
(4,332
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)
|
(3,262
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)
|
(5,138
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)
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||||||||
Other current and long-term liabilities
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(8,288
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)
|
(6,234
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)
|
(6,618
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)
|
(9,385
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)
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||||||||
Accrued severance pay, net
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(71
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)
|
10
|
(169
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)
|
71
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||||||||||
Net cash provided by operating activities
|
24,167
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25,082
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47,239
|
37,992
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||||||||||||
Cash flows from investment activities:
|
||||||||||||||||
Acquisition of subsidiary, net of acquired cash
|
-
|
-
|
-
|
(78,469
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)
|
|||||||||||
Change in short-term and long-term interest-bearing bank deposits
|
14,452
|
66,872
|
(8,610
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)
|
116,504
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|||||||||||
Investment in marketable securities
|
(44,458
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)
|
(34,691
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)
|
(98,140
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)
|
(51,527
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)
|
||||||||
Proceeds from maturity of marketable securities
|
42,423
|
18,428
|
84,315
|
34,198
|
||||||||||||
Purchase of property and equipment
|
(3,274
|
)
|
(4,239
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)
|
(6,032
|
)
|
(7,957
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)
|
||||||||
Net cash provided by (used in) investing activities
|
9,143
|
46,370
|
(28,467
|
)
|
12,749
|
|||||||||||
Cash flows from financing activities:
|
||||||||||||||||
Purchases of treasury shares
|
-
|
(4,270
|
)
|
(112
|
)
|
(4,270
|
)
|
|||||||||
Proceeds from exercise of options
|
115
|
82
|
115
|
82
|
||||||||||||
Net cash provided by (used in) financing activities
|
115
|
(4,188
|
)
|
3
|
(4,188
|
)
|
||||||||||
Effect of exchange rate fluctuations on cash and cash equivalents
|
(310
|
)
|
(2,160
|
)
|
(1,306
|
)
|
(2,954
|
)
|
||||||||
Changes in cash and cash equivalents and restricted cash
|
33,115
|
65,104
|
17,469
|
43,599
|
||||||||||||
Cash and cash equivalents and restricted cash -beginning of period
|
96,075
|
105,193
|
111,721
|
126,698
|
||||||||||||
Cash and cash equivalents - end of period
|
129,190
|
170,297
|
129,190
|
170,297
|
Three months ended
|
||||||||||||
June 30,
2023 |
March 31,
2023 |
June 30,
2022 |
||||||||||
GAAP gross profit
|
69,658
|
77,266
|
79,033
|
|||||||||
Stock-based compensation*
|
1,071
|
1,165
|
1,021
|
|||||||||
Amortization of acquired intangible assets
|
1,368
|
1,338
|
1,355
|
|||||||||
Acquisition related inventory step-up
|
-
|
-
|
366
|
|||||||||
Non-GAAP gross profit
|
72,097
|
79,769
|
81,775
|
|||||||||
GAAP gross margin as a percentage of revenues
|
57
|
%
|
58
|
%
|
56
|
%
|
||||||
Non-GAAP gross margin as a percentage of revenues
|
59
|
%
|
60
|
%
|
58
|
%
|
||||||
GAAP operating income
|
28,716
|
35,737
|
36,963
|
|||||||||
Stock-based compensation*
|
3,667
|
4,394
|
4,072
|
|||||||||
Acquisition-related inventory step-up
|
-
|
-
|
366
|
|||||||||
Acquisition-related expenses and contingent
consideration revaluation
|
-
|
-
|
2,392
|
|||||||||
Amortization of acquired intangible assets
|
1,475
|
1,444
|
1,513
|
|||||||||
Non-GAAP operating income
|
33,858
|
41,575
|
45,306
|
|||||||||
GAAP operating margin as a percentage of revenues
|
23
|
%
|
27
|
%
|
26
|
%
|
||||||
Non-GAAP operating margin as a percentage of revenues
|
28
|
%
|
31
|
%
|
32
|
%
|
||||||
GAAP net income
|
29,926
|
34,627
|
34,878
|
|||||||||
Stock-based compensation*
|
3,667
|
4,394
|
4,072
|
|||||||||
Acquisition-related inventory step-up
|
-
|
-
|
366
|
|||||||||
Acquisition-related expenses and contingent
consideration revaluation
|
-
|
-
|
2,392
|
|||||||||
Amortization of acquired intangible assets
|
1,475
|
1,444
|
1,513
|
|||||||||
Amortization of debt discount and issuance costs
|
320
|
316
|
318
|
|||||||||
Revaluation of operating lease liabilities
|
(768
|
)
|
(822
|
)
|
(3,350
|
)
|
||||||
Tax effect of non-GAAP adjustments
|
(806
|
)
|
(884
|
)
|
(643
|
)
|
||||||
Non-GAAP net income
|
33,814
|
39,075
|
39,546
|
|||||||||
GAAP basic earnings per share
|
1.04
|
1.21
|
1.22
|
|||||||||
Non-GAAP basic earnings per share
|
1.18
|
1.36
|
1.38
|
|||||||||
GAAP diluted earnings per share
|
0.94
|
1.09
|
1.09
|
|||||||||
Non-GAAP diluted earnings per share
|
1.06
|
1.23
|
1.24
|
|||||||||
Shares used for calculation of earnings per share
(in thousands): |
||||||||||||
Basic
|
28,766
|
28,678
|
28,688
|
|||||||||
Diluted
|
31,928
|
31,824
|
31,902
|
Low
|
High
|
|||||||
Estimated GAAP net income per diluted share
|
0.83
|
0.94
|
||||||
Estimated non-GAAP items:
|
||||||||
Stock-based compensation
|
0.18
|
0.18
|
||||||
Amortization of acquired intangible assets
|
0.04
|
0.04
|
||||||
Amortization of issuance costs
|
0.01
|
0.01
|
||||||
Tax effect of non-GAAP adjustments
|
(0.04
|
)
|
(0.04
|
)
|
||||
Estimated non-GAAP net income per diluted share
|
1.02
|
1.13
|