|
NOVA LTD.
(Registrant) By: /s/ Dror David ————————————— Dror David
Chief Financial Officer |
• |
Record quarterly revenue of $97.7 million, up 56% year over year
|
• |
Record GAAP net income of $22.9 million, or $0.77 per diluted share, up 157% year over year on a per-share basis
|
• |
Record non-GAAP net income of $26.9 million, or $0.90 per diluted share, up 88% year over year on a per-share basis
|
• |
The continuing proliferation of optical CD standalone solutions to various leading customers drove sales to a new quarterly high
|
• |
Broader exposure to multiple accounts strengthened geographical diversification with record revenues from China
|
Q2 2021
|
Q1 2021
|
Q2 2020
|
|
Revenues
|
$97,746
|
$84,133
|
$62,586
|
Net Income
|
$22,924
|
$17,616
|
$8,672
|
Earnings per Diluted Share
|
$0.77
|
$0.60
|
$0.30
|
Q2 2021
|
Q1 2021
|
Q2 2020
|
|
Net Income
|
$26,886
|
$20,485
|
$13,774
|
Earnings per Diluted Share
|
$0.90
|
$0.70
|
$0.48
|
• |
$99 million to $106 million in revenue
|
• |
$0.71 to $0.84 in diluted GAAP EPS
|
• |
$0.85 to $0.98 in diluted non-GAAP EPS
|
As of
|
||||||||
ASSETS
|
June 30,
2021
|
December 31,
2020
|
||||||
Current assets
|
||||||||
Cash and cash equivalents
|
136,290
|
232,304
|
||||||
Short-term interest-bearing bank deposits
|
243,635
|
191,567
|
||||||
Marketable securities
|
40,270
|
-
|
||||||
Trade accounts receivable, net
|
58,207
|
63,314
|
||||||
Inventories
|
71,800
|
61,734
|
||||||
Other current assets
|
9,879
|
9,782
|
||||||
Total current assets
|
560,081
|
558,701
|
||||||
Non-current assets
|
||||||||
Marketable securities
|
59,605
|
-
|
||||||
Interest-bearing bank deposits
|
3,503
|
2,547
|
||||||
Restricted interest-bearing bank deposits
|
1,750
|
1,476
|
||||||
Deferred tax assets
|
4,583
|
2,869
|
||||||
Other long-term assets
|
456
|
462
|
||||||
Severance pay funds
|
1,311
|
1,281
|
||||||
Operating lease right-of-use assets
|
28,833
|
29,109
|
||||||
Property and equipment, net
|
33,041
|
34,168
|
||||||
Intangible assets, net
|
3,910
|
5,059
|
||||||
Goodwill
|
20,114
|
20,114
|
||||||
Total non-current assets
|
157,106
|
97,085
|
||||||
Total assets
|
717,187
|
655,786
|
||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
Current liabilities
|
||||||||
Convertible senior notes, net
|
180,893
|
-
|
||||||
Trade accounts payable
|
26,527
|
24,096
|
||||||
Deferred revenues
|
13,591
|
4,717
|
||||||
Operating lease current liabilities
|
3,942
|
3,703
|
||||||
Other current liabilities
|
32,096
|
28,418
|
||||||
Total current liabilities
|
257,049
|
60,934
|
||||||
Non-current liabilities
|
||||||||
Convertible senior notes, net
|
-
|
178,808
|
||||||
Accrued severance pay
|
3,804
|
3,719
|
||||||
Operating lease long-term liabilities
|
31,022
|
31,905
|
||||||
Other long-term liability
|
9,610
|
8,882
|
||||||
Total non-current liabilities
|
44,436
|
223,314
|
||||||
Shareholders' equity
|
415,702
|
371,538
|
||||||
Total liabilities and shareholders' equity
|
717,187
|
655,786
|
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
Revenues:
|
||||||||||||||||
Products
|
78,293
|
47,097
|
144,576
|
92,822
|
||||||||||||
Services
|
19,453
|
15,489
|
37,303
|
30,786
|
||||||||||||
Total revenues
|
97,746
|
62,586
|
181,879
|
123,608
|
||||||||||||
Cost of revenues
|
41,802
|
25,985
|
78,005
|
52,665
|
||||||||||||
Gross profit
|
55,944
|
36,601
|
103,874
|
70,943
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Research and development, net
|
15,341
|
12,622
|
29,859
|
24,305
|
||||||||||||
Sales and marketing
|
9,432
|
7,263
|
18,972
|
13,826
|
||||||||||||
General and administrative
|
3,388
|
5,775
|
6,927
|
8,364
|
||||||||||||
Amortization of acquired intangible assets
|
574
|
626
|
1,149
|
1,252
|
||||||||||||
Total operating expenses
|
28,735
|
26,286
|
56,907
|
47,747
|
||||||||||||
Operating income
|
27,209
|
10,315
|
46,967
|
23,196
|
||||||||||||
Financing income (expense), net
|
(1,150
|
)
|
387
|
(726
|
)
|
1,415
|
||||||||||
Income before tax on income
|
26,059
|
10,702
|
46,241
|
24,611
|
||||||||||||
Income tax expenses
|
3,135
|
2,030
|
5,701
|
4,257
|
||||||||||||
Net income for the period
|
22,924
|
8,672
|
40,540
|
20,354
|
||||||||||||
Earnings per share:
|
||||||||||||||||
Basic
|
0.81
|
0.31
|
1.43
|
0.73
|
||||||||||||
Diluted
|
0.77
|
0.30
|
1.37
|
0.70
|
||||||||||||
Shares used for calculation of earnings per share
(in thousands): |
||||||||||||||||
Basic
|
28,304
|
28,039
|
28,259
|
28,037
|
||||||||||||
Diluted
|
29,815
|
28,888
|
29,561
|
28,890
|
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
Cash flows from operating activities:
|
||||||||||||||||
Net income
|
$
|
22,924
|
$
|
8,672
|
$
|
40,540
|
$
|
20,354
|
||||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||||||
Depreciation of property and equipment
|
1,596
|
1,419
|
3,175
|
2,829
|
||||||||||||
Amortization of intangible assets
|
574
|
626
|
1,149
|
1,252
|
||||||||||||
Amortization of premium and accretion of discount on marketable securities, net
|
283
|
-
|
283
|
-
|
||||||||||||
Amortization of debt discount and issuance costs
|
1,051
|
-
|
2,085
|
-
|
||||||||||||
Share-based compensation
|
2,128
|
1,454
|
4,350
|
2,772
|
||||||||||||
Net effect of exchange rate fluctuation
|
(350
|
)
|
(178
|
)
|
12
|
221
|
||||||||||
Changes in assets and liabilities:
|
||||||||||||||||
Trade accounts receivables, net
|
1,613
|
10,586
|
5,107
|
7,146
|
||||||||||||
Inventories
|
(5,831
|
)
|
(7,022
|
)
|
(10,248
|
)
|
(8,470
|
)
|
||||||||
Other current and long-term assets
|
554
|
1,046
|
(608
|
)
|
4,739
|
|||||||||||
Deferred tax assets, net
|
(1,116
|
)
|
(345
|
)
|
(1,714
|
)
|
(546
|
)
|
||||||||
Operating lease right-of-use assets
|
411
|
350
|
817
|
604
|
||||||||||||
Trade accounts payables
|
1,932
|
2,920
|
2,371
|
665
|
||||||||||||
Deferred revenues
|
(147
|
)
|
(1,437
|
)
|
8,874
|
(1,091
|
)
|
|||||||||
Operating lease liabilities
|
81
|
76
|
(1,185
|
)
|
(390
|
)
|
||||||||||
Other current and long-term liabilities
|
587
|
618
|
4,305
|
2,572
|
||||||||||||
Accrued severance pay, net
|
93
|
132
|
55
|
150
|
||||||||||||
Net cash provided by operating activities
|
26,383
|
18,917
|
59,368
|
32,807
|
||||||||||||
Cash flows from investment activities:
|
||||||||||||||||
Change in short-term and long-term interest-bearing bank deposits
|
2,461
|
(25,373
|
)
|
(53,344
|
)
|
(33,002
|
)
|
|||||||||
Investment in marketable securities
|
(106,403
|
)
|
-
|
(106,403
|
)
|
-
|
||||||||||
Proceed from sales and maturities of marketable securities
|
6,137
|
-
|
6,137
|
-
|
||||||||||||
Purchase of property and equipment
|
(1,318
|
)
|
(890
|
)
|
(1,806
|
)
|
(3,160
|
)
|
||||||||
Net cash used in investing activities
|
(99,123
|
)
|
(26,263
|
)
|
(155,416
|
)
|
(36,162
|
)
|
||||||||
Cash flows from financing activities:
|
||||||||||||||||
Purchases of treasury shares
|
-
|
(2,535
|
)
|
-
|
(2,549
|
)
|
||||||||||
Proceeds from exercise of options
|
-
|
142
|
-
|
253
|
||||||||||||
Net cash used in financing activities
|
-
|
(2,393
|
)
|
-
|
(2,296
|
)
|
||||||||||
Effect of exchange rate fluctuations on cash and cash equivalents
|
272
|
93
|
34
|
(212
|
)
|
|||||||||||
Decrease in cash and cash equivalents
|
(72,468
|
)
|
(9,646
|
)
|
(96,014
|
)
|
(5,863
|
)
|
||||||||
Cash and cash equivalents - beginning of period
|
208,758
|
35,531
|
232,304
|
31,748
|
||||||||||||
Cash and cash equivalents - end of period
|
$
|
136,290
|
$
|
25,885
|
$
|
136,290
|
$
|
25,885
|
Three months ended
|
||||||||||||
June 30,
2021 |
March 31,
2021 |
June 30,
2020 |
||||||||||
GAAP gross profit
|
55,944
|
47,930
|
36,601
|
|||||||||
Stock-based compensation expenses *
|
382
|
418
|
279
|
|||||||||
Non-GAAP gross profit
|
56,326
|
48,348
|
36,880
|
|||||||||
GAAP gross margin as a percentage of revenues
|
57
|
%
|
57
|
%
|
58
|
%
|
||||||
Non-GAAP gross margin as a percentage of revenues
|
58
|
%
|
57
|
%
|
59
|
%
|
||||||
GAAP operating income
|
27,209
|
19,758
|
10,315
|
|||||||||
Stock-based compensation expenses *
|
2,128
|
2,222
|
1,454
|
|||||||||
Amortization of acquired intangible assets
|
574
|
575
|
626
|
|||||||||
Expense related to a transaction made by a financial institution without Company authorization
|
-
|
-
|
3,000
|
|||||||||
Non-GAAP operating income
|
29,911
|
22,555
|
15,395
|
|||||||||
GAAP operating margin as a percentage of revenues
|
28
|
%
|
23
|
%
|
16
|
%
|
||||||
Non-GAAP operating margin as a percentage of revenues
|
31
|
%
|
27
|
%
|
25
|
%
|
||||||
GAAP net income
|
22,924
|
17,616
|
8,672
|
|||||||||
Stock-based compensation expenses *
|
2,128
|
2,222
|
1,454
|
|||||||||
Amortization of acquired intangible assets
|
574
|
575
|
626
|
|||||||||
Amortization of debt discount and issuance costs
|
1,051
|
1,034
|
-
|
|||||||||
One-time expense related to a transaction made by a financial institution without Company authorization
|
-
|
-
|
3,000
|
|||||||||
Revaluation of operating lease liabilities
|
554
|
(860
|
)
|
594
|
||||||||
Tax effect of non-GAAP adjustments
|
(345
|
)
|
(102
|
)
|
(572
|
)
|
||||||
Non-GAAP net income
|
26,886
|
20,485
|
13,774
|
|||||||||
GAAP basic earnings per share
|
0.81
|
0.62
|
0.31
|
|||||||||
Non-GAAP basic earnings per share
|
0.95
|
0.73
|
0.49
|
|||||||||
GAAP diluted earnings per share
|
0.77
|
0.60
|
0.30
|
|||||||||
Non-GAAP diluted earnings per share
|
0.90
|
0.70
|
0.48
|
|||||||||
Shares used for calculation of earnings per share
(in thousands): |
||||||||||||
Basic
|
28,304
|
28,214
|
28,039
|
|||||||||
Diluted
|
29,815
|
29,306
|
28,888
|
Low
|
High
|
|||||||
Estimated GAAP net income per diluted share
|
0.71
|
0.84
|
||||||
Estimated non-GAAP items:
|
||||||||
Stock-based compensation expenses
|
0.10
|
0.10
|
||||||
Amortization of acquired intangible assets
|
0.02
|
0.02
|
||||||
Amortization of debt discount and issuance costs
|
0.03
|
0.03
|
||||||
Tax effect of non-GAAP adjustments
|
(0.01
|
)
|
(0.01
|
)
|
||||
Estimated non-GAAP net income per diluted share
|
0.85
|
0.98
|