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Published: 2020-11-12 08:00:10 ET
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6-K 1 zk2025126.htm 6-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF 
THE SECURITIES EXCHANGE ACT OF 1934
 
For the month of November 2020

Commission File No.: 000-30668
 
NOVA MEASURING INSTRUMENTS LTD.
(Translation of registrant’s name into English)

5 David Fikes St., Rehovot
P.O.B 266
Israel
 (Address of principal executive offices)
 
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. 

Form 20-F ☒ Form 40-F ☐
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____ 
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____ 
 
Attached hereto and incorporated by way of reference herein is a press release issued by the Registrant and entitled: “Nova Reports Third Quarter 2020 Results”.

The GAAP financial statements tables included in the press release attached hereto are hereby incorporated by reference into the Registrant’s registration statements on Form S-8, filed with the Securities and Exchange Commission on the following dates: November 5, 2007 (File No. 333-147140); October 25, 2012 (File No. 333-184585), March 6, 2015 (File No. 333-202550); and August 25, 2017 (File No. 333-220158).

SIGNATURES 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. 

  
 
 
Date: November 12, 2020
  
NOVA MEASURING INSTRUMENTS LTD.
(Registrant)

By: /s/ Dror David
——————————————
Dror David
Chief Financial Officer



Company Contact:
Dror David, Chief Financial Officer
Nova Measuring Instruments Ltd.
Tel: +972-73-229-5760
E-mail: info@novami.com 
www.novami.com
Investor Relations Contact:
Miri Segal
MS-IR LLC
Tel: +917-607-8654
E-mail: msegal@ms-ir.com

Company Press Release
 
Nova Reports Third Quarter 2020 Results
 
Rehovot, Israel, November 12, 2020 - Nova (Nasdaq: NVMI) today announced financial results for the third quarter 2020, the period ended September 30, 2020.
 
Business Highlights:
 

 •
Record quarterly revenue of $69.5 million, up 32% year-over-year
 

 •
GAAP net income of $13.9 million, or $0.48 per diluted share, up 60% year-over-year on a per-share basis
 

 •
Non-GAAP net income of $16.5 million, or $0.57 per diluted share, up 43% year-over-year on a per-share basis
 

 •
Record quarterly optical standalone revenues, driven by growing demand for Nova’s unique dimensional metrology solutions
 

 •
In October, completed a private offering of $200 million of 0% convertible senior notes due 2025
 
GAAP Results ($K)
 
Q3 2020
Q2 2020
Q3 2019
Revenues
$69,485
$62,586
$52,507
Net Income
$13,896
$8,672
$8,562
Earnings per Diluted Share
$0.48
$0.30
$0.30
NON-GAAP Results ($K)
 
Q3 2020
Q2 2020
Q3 2019
Net Income
$16,511
$13,774
$11,507
Earnings per Diluted Share
$0.57
$0.48
$0.40
 
A reconciliation between GAAP operating results and non-GAAP operating results is provided following the financial statements that are part of this release. Non-GAAP results exclude amortization of acquired intangible assets, stock-based compensation expenses, expense related to a transaction made by a financial institution without Company authorization, facilities transition costs, revaluation of long-term liabilities and tax effect of non-GAAP adjustments.
 
Management Comments
 
“Nova’s outstanding financial results for the quarter exceeded our previous expectations and guidance. These results demonstrate the resilience of our operational model and the strategic value we bring to our customers while they continue developing their next generation technology nodes,” commented Eitan Oppenhaim, President and Chief Executive Officer. “Following our strong operational execution in 2020, we remain confident in our strategy and the value we create, which provide us a solid base to deliver our long-term growth objectives.”
 
2020 Fourth Quarter Financial Outlook
 
Management provided an outlook for the fourth quarter, the period ending December 31, 2020. Based on current estimates, management expects:
 

 •
$66 million to $73 million in revenue
 

 •
$0.32 to $0.43 in diluted GAAP EPS
 

 •
$0.45 to $0.56 in diluted non-GAAP EPS
 
2020 Third Quarter Results
 
Total revenues for the third quarter of 2020 were $69.5 million, an increase of 11.0% compared with the second quarter of 2020 and an increase of 32.3% compared with the third quarter of 2019.
 
Gross margin for the third quarter of 2020 was 57.1%, compared with a gross margin of 58.5% in the second quarter of 2020, and compared with a gross margin of 52.4% in the third quarter of 2019.
 
Operating expenses in the third quarter of 2020 were $24.1 million, compared with $26.3 million in the second quarter of 2020 and compared with $21.0 million in the third quarter of 2019.
 
On a GAAP basis, the Company reported net income of $13.9 million, or $0.48 per diluted share, in the third quarter of 2020. This is compared with net income of $8.7 million, or $0.30 per diluted share, in the second quarter of 2020, and compared with net income of $8.6 million, or $0.30 per diluted share, in the third quarter of 2019.
 
On a non-GAAP basis, which excludes amortization of acquired intangible assets, stock-based compensation expenses, one-time expense related to a transaction made by a financial institution without Company authorization, facilities transition costs, revaluation of long-term liabilities and tax effect of non-GAAP adjustments, the Company reported net income of $16.5 million, or $0.57 per diluted share, in the third quarter of 2020. This is compared with net income of $13.8 million, or $0.48 per diluted share, in the second quarter of 2020, and compared with net income of $11.5 million, or $0.40 per diluted share, in the third quarter of 2019.
 
Conference Call Information
 
Nova will host a conference call today, November 12, 2020, at 9 a.m. Eastern Time, to discuss the financial results and outlook. To attend the conference call, please dial one of the following teleconferencing numbers. Please begin by placing your calls five minutes before the conference call commences. If you are unable to connect using the toll-free numbers, please try the international dial-in number.

U.S. TOLL-FREE Dial-in Number: 1-888-394-8218
ISRAEL TOLL-FREE Dial-in Number: 1-809-212-883
INTERNATIONAL Dial-in Number: 1-323-701-0225

At:
9 a.m. Eastern Time
6 a.m. Pacific Time
4 p.m. Israel Time
Please reference conference ID: 1420148
 
The conference call will also be webcast live from a link on Nova's website at https://www.novami.com/investors/events/.

A replay of the conference call will be available from November 12, 2020 at 12 p.m. Eastern Time to November 19, 2020 at 11:59 p.m. Eastern Time. To access the replay, please dial one of the following numbers:
 
Replay Dial-in TOLL-FREE: 1-844-512-2921
Replay Dial-in TOLL/INTERNATIONAL: 1-412-317-6671
Replay Pin Number: 1420148

A replay will also be available for 90 days on Nova's website at https://www.novami.com/investors/events/.
 

About Nova: Nova is a leading innovator and key provider of metrology solutions for advanced process control used in semiconductor manufacturing. Nova delivers continuous innovation by providing state-of-the-art high-performance metrology solutions for effective process control throughout the semiconductor fabrication lifecycle. Nova’s product portfolio, which combines high-precision hardware and cutting-edge software, provides its customers with deep insight into the development and production of the most advanced semiconductor devices. Nova’s unique capability to deliver innovative x-ray and optical solutions enables its customers to improve performance, enhance product yields and accelerate time to market. Nova acts as a partner to semiconductor manufacturers from its offices around the world. Additional information may be found at www.novami.com.
 
Nova is traded on the NASDAQ & TASE under the symbol NVMI.

This press release provides financial measures that exclude amortization of acquired intangible assets, stock-based compensation expenses, expense related to a transaction made by a financial institution without Company authorization, facilities transition costs, revaluation of long-term liabilities, tax effect of non-GAAP adjustments and amortization of debt discount and issuance costs, as applicable, 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 enhance 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 allow 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, but are not limited to, anticipated growth opportunities and projections about our business and its future revenues, expenses 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. Factors that may affect our results, performance, circumstances or achievements include, but are not limited to, the following: our dependency on three product lines; our dependency on a small number of large customers and small number of suppliers; the highly cyclical and competitive nature of the markets we target and we operate in; 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 PEMs; risks related to exclusivity obligations and non-limited liability that may be included in our commercial agreements and arrangements; our ability to retain our competitive position despite the ongoing consolidation in our industry; risks related to our dependence on our manufacturing facilities; risks related to changes in our order backlog; risks related to efforts to complete and integrate current and/or future acquisitions; risks related to worldwide financial and economic instabilities, including the implications of the ongoing novel coronavirus (COVID-19) pandemic; risks related to our intellectual property; new product offerings from our competitors; unanticipated manufacturing or supply problems; risks related to government programs we participate in; risks related to taxation; changes in customer demand for our products; risks related to currency fluctuations; risks related to technology security threats, including data breaches, cyberattacks and system disruptions, and changes in privacy laws; risks related to acquisitions we may pursue 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, 2019 filed with the Securities and Exchange Commission on March 12, 2020. 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.
 
(Tables to Follow)

NOVA MEASURING INSTRUMENTS LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands) - (Unaudited)

   
As of
  

 
September 30,
2020
    
December 31,
2019
  
ASSETS
            
Current assets
            
Cash and cash equivalents
    
32,713
      
31,748
  
Short-term interest-bearing bank deposits
    
200,676
      
154,533
  
Trade accounts receivable
    
41,097
      
51,603
  
Inventories
    
62,063
      
48,362
  
Other current assets
    
11,899
      
17,122
  
                 
Total current assets
    
348,448
      
303,368
  
                 
Non-current assets
                
Interest-bearing bank deposits
    
2,824
      
2,813
  
Restricted interest-bearing bank deposits
    
2,000
      
2,000
  
Deferred tax assets
    
5,282
      
4,554
  
Severance pay funds
    
1,197
      
1,210
  
Right of-use assets
    
29,508
      
28,256
  
Property and equipment, net
    
32,491
      
30,566
  
Intangible assets, net
    
5,684
      
7,562
  
Goodwill
    
20,114
      
20,114
  
                 
Total non-current assets
    
99,100
      
97,075
  
                 
Total assets
    
447,548
      
400,443
  
                 
 LIABILITIES AND SHAREHOLDERS’ EQUITY
                
Current liabilities
                
Trade accounts payable
    
22,733
      
20,706
  
Deferred revenues
    
3,791
      
2,256
  
Operating lease current liabilities
    
2,391
      
2,236
  
Other current liabilities
    
26,303
      
21,751
  
     

         
Total current liabilities
    
55,218
      
46,949
  
     

         
Non-current liabilities
                
Accrued severance pay
    
2,139
      
2,120
  
Operating lease long-term liabilities
    
31,875
      
31,077
  
Other long-term liability
    
6,616
      
5,758
  
                 
Total non-current liabilities
    
40,630
      
38,955
  
                 
Shareholders' equity
    
351,700
      
314,539
  
                 
Total liabilities and shareholders’ equity
    
447,548
      
400,443
  

NOVA MEASURING INSTRUMENTS LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 (U.S. dollars in thousands, except per share data) - (Unaudited)

   
Three months ended
    
Nine months ended
  
   
September 30,
2020
    
September 30,
2019
    
September 30,
2020
    
September 30,
2019
  
                         
Revenues:
                        
Products
    
54,757
      
38,723
      
147,579
      
120,185
  
Services
    
14,728
      
13,784
      
45,514
      
40,099
  
Total revenues
    
69,485
      
52,507
      
193,093
      
160,284
  
                                 
Cost of revenues:
                                
Products
    
20,732
      
16,342
      
55,922
      
48,446
  
Services
    
9,096
      
8,672
      
26,571
      
24,651
  
Total cost of revenues
    
29,828
      
25,014
      
82,493
      
73,097
  
                                 
Gross profit
    
39,657
      
27,493
      
110,600
      
87,187
  
                                 
Operating expenses:
                                
Research and development expenses, net
    
12,957
      
10,548
      
37,262
      
34,786
  
Sales and marketing expenses
    
7,406
      
7,156
      
21,232
      
20,943
  
General and administrative expenses
    
3,141
      
2,658
      
11,505
      
7,564
  
Amortization of acquired intangible assets
    
625
      
657
      
1,877
      
1,969
  
Total operating expenses
    
24,129
      
21,019
      
71,876
      
65,262
  
                                 
Operating income
    
15,528
      
6,474
      
38,724
      
21,925
  
                                 
Financing income, net
    
846
      
887
      
2,261
      
2,252
  
                                 
Income before tax on income
    
16,374
      
7,361
      
40,985
      
24,177
  
                                 
Income tax expenses
    
2,478
      
(1,201
)
    
6,735
      
1,391
  
                                 
Net income for the period
    
13,896
      
8,562
      
34,250
      
22,786
  
                                 
Earnings per share:
                                
Basic
    
0.49
      
0.31
      
1.22
      
0.82
  
Diluted
    
0.48
      
0.30
      
1.18
      
0.80
  
                                 
Shares used for calculation of earnings per share:
                                
Basic
    
28,168
      
27,826
      
28,080
      
27,935
  
Diluted
    
29,020
      
28,474
      
28,933
      
28,599
  

NOVA MEASURING INSTRUMENTS LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands) - (Unaudited)

   
Three months ended
    
Nine months ended
  
   
September 30,
2020
    
September 30,
2019
    
September 30,
2020
    
September 30,
2019
  
Cash flows from operating activities:
                        
Net income for the period
    
13,896
      
8,562
      
34,250
      
22,786
  
                                 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
                                
Depreciation and amortization
    
2,447
      
3,842
      
7,133
      
9,312
  
Share-based compensation
    
1,946
      
1,364
      
4,718
      
3,662
  
Change in deferred tax assets, net
    
(182
)
    
(410
)
    
(728
)
    
(754
)
Change in accrued severance pay, net
    
4
      
25
      
32
      
52
  
Change in trade accounts receivable
    
3,360
      
1,024
      
10,506
      
6,477
  
Change in inventories
    
(6,582
)
    
(1,332
)
    
(15,052
)
    
(9,187
)
Change in other current and long-term assets
    
484
      
(7,180
)
    
5,223
      
(4,600
)
Change in trade accounts payable
    
1,362
      
1,700
      
2,027
      
(426
)
Change in other current and long-term liabilities
    
2,227
      
3,247
      
4,530
      
(1,332
)
Change in short term deferred revenues
    
2,626
      
(1,599
)
    
1,535
      
(269
)
                                 
Net cash provided by (used in) operating activities
    
21,588
      
9,243
      
54,174
      
25,721
  
                                 
Cash flow from investment activities:
                                
Change in short-term and long-term interest-bearing bank deposits
    
(13,161
)
    
(6,040
)
    
(46,154
)
    
35
  
Purchase of property and equipment
    
(1,713
)
    
(7,928
)
    
(4,873
)
    
(15,621
)
                                 
Net cash provided by (used in) investment activities
    
(14,874
)
    
(13,968
)
    
(51,027
)
    
(15,586
)
                                 
Cash flows from financing activities:
                                
Purchases of treasury shares
    
-
      
-
      
(2,549
)
    
(7,159
)
Shares issued upon exercise of options
    
114
      
95
      
367
      
367
  
                                 
Net cash used in financing activities
    
114
      
95
      
(2,182
)
    
(6,792
)
                                 
Increase (decrease) in cash and cash equivalents
    
6,828
      
(4,630
)
    
965
      
3,343
  
Cash and cash equivalents – beginning of period
    
25,885
      
32,850
      
31,748
      
24,877
  
Cash and cash equivalents – end of period
    
32,713
      
28,220
      
32,713
      
28,220
  

NOVA MEASURING INSTRUMENTS LTD.
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(U.S. dollars in thousands, except percentage and per share data) - (Unaudited)

   
Three months ended
  
   
September 30,
2020
    
June 30,
2020
    
September 30,
2019
  
GAAP gross profit
    
39,657
      
36,601
      
27,493
  
Stock-based compensation expenses *
    
414
      
279
      
277
  
Facilities transition costs
    
-
      
-
      
220
  
Non-GAAP gross profit
    
40,071
      
36,880
      
27,990
  
GAAP gross margin as a percentage of revenues
    
57
%
    
58
%
    
52
%
Non-GAAP gross margin as a percentage of revenues
    
58
%
    
59
%
    
53
%
                         
GAAP operating income
    
15,528
      
10,315
      
6,474
  
Stock-based compensation expenses *
    
1,946
      
1,454
      
1,364
  
Amortization of acquired intangible assets
    
625
      
626
      
657
  
One-time expense related to a transaction made by a financial institution without Company authorization
    
-
      
3,000
      
-
  
Facilities transition costs
    
-
      
-
      
888
  
Non-GAAP operating income
    
18,099
      
15,395
      
9,383
  
GAAP operating margin as a percentage of revenues
    
22
%
    
16
%
    
12
%
Non-GAAP operating margin as a percentage of revenues
    
26
%
    
25
%
    
18
%
                         
GAAP net income
    
13,896
      
8,672
      
8,562
  
Stock-based compensation expenses *
    
1,946
      
1,454
      
1,364
  
Amortization of acquired intangible assets
    
625
      
626
      
657
  
One-time expense related to a transaction made by a financial institution without Company authorization
    
-
      
3,000
      
-
  
Facilities transition costs
    
-
      
-
      
888
  
Revaluation of long-term liabilities
    
161
      
594
      
362
  
Tax effect of non-GAAP adjustments
    
(117
)
    
(572
)
    
(326
)
Non-GAAP net income
    
16,511
      
13,774
      
11,507
  
                         
GAAP basic earnings per share
    
0.49
      
0.31
      
0.31
  
Non-GAAP basic earnings per share
    
0.59
      
0.49
      
0.41
  
                         
GAAP diluted earnings per share
    
0.48
      
0.30
      
0.30
  
Non-GAAP diluted earnings per share
    
0.57
      
0.48
      
0.40
  
                         
Shares used for calculation of earnings per share:
                        
Basic
    
28,168
      
28,039
      
27,826
  
Diluted
    
29,020
      
28,888
      
28,474
  

* Stock-based compensation expenses for the three months ended September 30, 2020 included in – Cost of revenues products - 259; Cost of revenues services - 155; Research and development expenses, net – 713; Sales and marketing expenses – 409; General and administrative expenses – 410


NOVA MEASURING INSTRUMENTS LTD.
SUPPLEMENTAL INFORMATION - RECONCILIATION OF FOURTH QUARTER 2020
GAAP TO NON-GAAP GUIDANCE
 (Unaudited)

   
Low
    
High
  
Estimated GAAP net income per diluted share
    
0.32
      
0.43
  
Estimated non-GAAP items:
                
Stock-based compensation expenses
    
0.09
      
0.09
  
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
    
0.45
      
0.56