NOVA LTD.
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(Registrant)
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By: /s/ Dror David
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—————————————
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Dror David
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Chief Financial Officer
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• |
Record quarterly revenue of $134.0 million, exceeding the high end of a guidance of $132 million. Up 59% year over year
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Record GAAP net income of $34.2 million, or $1.07 per diluted share, exceeding the high end of a guidance of $0.96. Up 78% year over year on a per-share basis
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Record non-GAAP net income of $41.5 million, or $1.30 per diluted share, exceeding the high end of a guidance of $1.14. Up 86% year over year on a per-share basis
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Diversified geographic contributions led by China quarterly record revenue
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Strong customer mix driven by five major customers contributing over 10% each to products revenue, including the world leading IDM
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Q1 2022
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Q4 2021
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Q1 2021
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Revenues
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$133,957
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$121,521
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$84,133
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Net Income
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$34,162
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$22,226
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$17,616
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Earnings per Diluted Share
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$1.07
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$0.73
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$0.60
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Q1 2022
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Q4 2021
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Q1 2021
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Net Income
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$ 41,487
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$32,752
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$20,485
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Earnings per Diluted Share
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$ 1.30
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$1.08
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$0.70
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• |
$133 million to $141 million in revenue
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$0.82 to $0.96 in diluted GAAP EPS
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$1.09 to $1.23 in diluted non-GAAP EPS
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As of
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March 31,
2022
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December 31,
2021
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ASSETS
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Current assets
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Cash and cash equivalents
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105,193
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126,698
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Short-term interest-bearing bank deposits
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172,264
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221,897
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Marketable securities
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63,425
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61,568
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Trade accounts receivable, net
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77,985
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68,446
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Inventories
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96,193
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78,665
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Other current assets
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25,116
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9,242
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Total current assets
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540,176
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566,516
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Non-current assets
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Marketable securities
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132,011
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137,415
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Interest-bearing bank deposits
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3,595
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3,672
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Restricted interest-bearing bank deposits
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1,602
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1,600
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Deferred tax assets
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9,448
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6,161
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Severance pay funds
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1,308
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1,327
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Operating lease right-of-use assets
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45,809
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30,627
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Property and equipment, net
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44,367
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34,460
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Intangible assets, net
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49,308
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2,601
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Goodwill
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50,540
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20,114
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Other long-term assets
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744
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661
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Total non-current assets
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338,732
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238,638
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Total assets
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878,908
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805,154
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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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195,432
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183,037
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Trade accounts payable
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35,973
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36,218
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Deferred revenues
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14,583
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15,338
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Operating lease current liabilities
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5,897
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4,452
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Other current liabilities
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59,775
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48,885
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Total current liabilities
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311,660
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287,930
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Non-current liabilities
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Accrued severance pay
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3,728
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3,686
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Operating lease long-term liabilities
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47,293
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33,450
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Long-term deferred tax liability
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13,743
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-
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Other long-term liabilities
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6,936
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6,334
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Total non-current liabilities
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71,700
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43,470
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Shareholders' equity
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495,548
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473,754
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Total liabilities and shareholders' equity
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878,908
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805,154
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Three months ended March 31,
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2022
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2021
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Revenues:
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Products
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109,912
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66,283
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Services
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24,045
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17,850
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Total revenues
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133,957
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84,133
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Total cost of revenues
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57,807
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36,203
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Gross profit
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76,150
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47,930
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Operating expenses:
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Research and development, net
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19,129
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14,518
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Sales and marketing
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12,246
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9,540
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General and administrative
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6,056
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3,539
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Amortization of intangible assets
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1,613
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575
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Total operating expenses
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39,044
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28,172
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Operating income
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37,106
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19,758
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Financing income, net
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1,218
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424
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Income before taxes on income
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38,324
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20,182
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Income tax expenses
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4,162
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2,566
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Net income for the period
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34,162
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17,616
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Earnings per share:
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Basic
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1.20
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0.62
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Diluted
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1.07
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0.60
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Shares used in calculation of earnings per share
(in thousands): |
||||||||
Basic
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28,579
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28,214
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Diluted
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31,968
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29,306
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Three months ended March 31,
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2022
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2021
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Cash flows from operating activities:
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Net income
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34,162
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17,616
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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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2,035
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1,579
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Amortization of intangible assets
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1,613
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575
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Amortization of premium and accretion of discount on marketable securities, net
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829
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-
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Amortization of debt discount and issuance costs
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320
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1,034
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Share-based compensation
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3,860
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2,222
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Net effect of exchange rate fluctuation
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793
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362
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Changes in assets and liabilities:
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Trade accounts receivables, net
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470
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3,494
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Inventories
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(6,898
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)
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(4,417
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)
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Other current and long-term assets
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(15,996
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)
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(1,162
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)
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Deferred tax assets, net
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(2,609
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)
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(598
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)
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Operating lease right-of-use assets
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912
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406
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Trade accounts payables
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(1,941
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)
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439
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Deferred revenues
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(744
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)
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9,021
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Operating lease liabilities
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(806
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)
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(1,266
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)
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Other current and long-term liabilities
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(3,151
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)
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3,718
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Accrued severance pay, net
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61
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(38
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)
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Net cash provided by operating activities
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12,910
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32,985
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Cash flows from investment activities:
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Acquisition of subsidiary, net of acquired cash
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(78,469
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)
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-
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Change in short-term and long-term interest-bearing bank deposits
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49,632
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(55,805
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)
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Investment in marketable securities
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(16,836
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)
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-
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Proceeds from maturities of marketable securities
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15,770
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-
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Purchase of property and equipment
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(3,718
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)
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(488
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)
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Net cash used in investing activities
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(33,621
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)
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(56,293
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)
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Net cash provided by financing activities
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-
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-
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Effect of exchange rate fluctuations on cash and cash equivalents
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(794
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)
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(238
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)
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Changes in cash and cash equivalents
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(21,505
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)
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(23,546
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)
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Cash and cash equivalents - beginning of period
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126,698
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232,304
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Cash and cash equivalents - end of period
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105,193
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208,758
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Three months ended
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March 31,
2022 |
December 31,
2021 |
March 31,
2021 |
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GAAP gross profit
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76,150
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68,249
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47,930
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Stock-based compensation*
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883
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803
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418
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Acquisition-related inventory step-up
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2,606
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-
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-
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Non-GAAP gross profit
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79,639
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69,052
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48,348
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GAAP gross margin as a percentage of revenues
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57
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%
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56
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%
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57
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%
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Non-GAAP gross margin as a percentage of revenues
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59
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%
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57
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%
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57
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%
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||||||
GAAP operating income
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37,106
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29,893
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19,758
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|||||||||
Stock-based compensation*
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3,860
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3,496
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2,222
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|||||||||
Acquisition-related inventory step-up
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2,606
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-
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-
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Acquisition-related expenses and contingent
consideration revaluation
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1,355
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999
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-
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Amortization of acquired intangible assets
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1,613
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735
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575
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Non-GAAP operating income
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46,540
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35,123
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22,555
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GAAP operating margin as a percentage of revenues
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28
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%
|
25
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%
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23
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%
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||||||
Non-GAAP operating margin as a percentage of revenues
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35
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%
|
29
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%
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27
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%
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||||||
GAAP net income
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34,162
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22,226
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17,616
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|||||||||
Stock-based compensation*
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3,860
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3,496
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2,222
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|||||||||
Acquisition-related inventory step-up
|
2,606
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-
|
-
|
|||||||||
Acquisition-related expenses and contingent
consideration revaluation
|
1,355
|
999
|
-
|
|||||||||
Amortization of acquired intangible assets
|
1,613
|
735
|
575
|
|||||||||
Amortization of debt discount and issuance costs
|
320
|
1,075
|
1,034
|
|||||||||
Revaluation of operating lease liabilities
|
(546
|
)
|
907
|
(860
|
)
|
|||||||
Tax effect of non-GAAP adjustments
|
(1,883
|
)
|
(402
|
)
|
(102
|
)
|
||||||
Taxes attributed to one-time elective tax settlement
|
-
|
3,716
|
-
|
|||||||||
Non-GAAP net income
|
41,487
|
32,752
|
20,485
|
|||||||||
GAAP basic earnings per share
|
1.20
|
0.78
|
0.62
|
|||||||||
Non-GAAP basic earnings per share
|
1.45
|
1.15
|
0.73
|
|||||||||
GAAP diluted earnings per share
|
1.07
|
0.73
|
0.60
|
|||||||||
Non-GAAP diluted earnings per share
|
1.30
|
1.08
|
0.70
|
|||||||||
Shares used for calculation of earnings per share
(in thousands): |
||||||||||||
Basic
|
28,579
|
28,539
|
28,214
|
|||||||||
Diluted
|
31,968
|
30,285
|
29,306
|
Low
|
High
|
|||||||
Estimated GAAP net income per diluted share
|
0.82
|
0.96
|
||||||
Estimated non-GAAP items:
|
||||||||
Stock-based compensation
|
0.13
|
0.13
|
||||||
Amortization of acquired intangible assets
|
0.06
|
0.06
|
||||||
Acquisition-related expenses and contingent
consideration revaluation
|
0.07
|
0.07
|
||||||
Acquisition-related inventory step-up
|
0.01
|
0.01
|
||||||
Amortization of issuance costs
|
0.01
|
0.01
|
||||||
Tax effect of non-GAAP adjustments
|
(0.01
|
)
|
(0.01
|
)
|
||||
Estimated non-GAAP net income per diluted share
|
1.09
|
1.23
|