Nova Reports Record Third Quarter 2024 Financial Results
REHOVOT, Israel, Nov. 7, 2024 /PRNewswire/ -- Nova (Nasdaq: NVMI) today announced financial results for the third quarter, the three-month period ended September 30, 2024.
https://mma.prnewswire.com/media/1446151/Nova_Logo.jpg
Third Quarter 2024 Highlights:
-- Record Quarterly revenue of $179.0 million, a 14% QoQ increase,
exceeding the Company guidance and up 39% YoY.
-- Record GAAP net income of $51.3 million, or $1.60 per diluted share,
exceeding the Company guidance, a 13% QoQ increase and up 51% YoY.
-- Record non-GAAP net income of $56.1 million, or $1.74 per diluted share,
exceeding the Company guidance, an 8% increase QoQ, and up 41% YoY.
-- Record revenue for materials metrology driven by demand for leading edge
capacity.
-- Record revenues from advanced packaging, driven by demand for
dimensional and chemical metrology solutions.
GAAP Results (K)
Q3 2024 Q2 2024 Q3 2023
Revenues $178,974 $156,858 $128,808
Net Income $51,279 $45,142 $33,689
Earnings per Diluted Share $1.60 $1.41 $1.06
Non-GAAP Results (K)
Q3 2024 Q2 2024 Q3 2023
Net Income $56,056 $51,956 $39,405
Earnings per Diluted Share $1.74 $1.61 $1.23
A reconciliation between GAAP operating results and non-GAAP
operating results is provided following the financial
statements included in this release. See also "Use of Non-
GAAP Adjusted Financial Measures" section.
"Nova delivered another record quarter, exceeding the high end of the guidance in revenue and profit, with robust performance across all our product lines," said Gaby Waisman, President and CEO. "Our solid results were driven by record sales for our materials metrology portfolio and the strong performance of our Optical CD solutions, fueled by an increasing demand for advanced nodes. With our fourth-quarter guidance established, Nova is set to outperform the WFE Index with an annual growth of approximately 28% at the mid-point."
2024 Fourth Quarter Financial Outlook
Management provided an outlook for the fourth quarter, the period ending December 31, 2024. Based on current estimates, management expects:
-- $181 million to $191 million in revenue
-- $1.51 to $1.70 in diluted GAAP EPS
-- $1.72 to $1.91 in diluted non-GAAP EPS
Total revenues for the third quarter of 2024 were $179.0 million, an increase of 14% compared with the second quarter of 2024 and an increase of 39% compared with the third quarter of 2023.
Gross margin in the third quarter of 2024 was 57%, compared with 59% in the second quarter of 2024 and 56% in the third quarter of 2023.
Operating expenses in the third quarter of 2024 were $52.1 million, compared with $46.9 million in the second quarter of 2024 and $38.1 million in the third quarter of 2023.
On a GAAP basis, the Company reported net income of $51.3 million, or $1.60 per diluted share, in the third quarter of 2024. This is compared with net income of $45.1 million, or $1.41 per diluted share, in the second quarter of 2024, and $33.7 million, or $1.06 per diluted share, in the third quarter of 2023.
On a non-GAAP basis, the Company reported net income of $56.1 million, or $ 1.74 per diluted share, in the third quarter of 2024. This is compared with net income of $52.0 million, or $1.61 per diluted share, in the second quarter of 2024, and $39.4 million, or $1.23 per diluted share, in the third quarter of 2023.
Nova will host a conference call today, November 7, 2024, at 8:30 a.m. Eastern Time, to discuss the Company's third quarter 2024 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: 1-833-816-1427
ISRAEL TOLL-FREE Dial-in Number: 1-809-213-284
INTERNATIONAL Dial-in Number: 1-412-317-0519
At:
8:30 a.m. Eastern Time
5:30 a.m. Pacific Time
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 7, 2024, at 11:30 a.m. Eastern Time until August 15, 2024, at 11:59 p.m. Eastern Time. To access the replay, please dial one of the following numbers:
Replay Dial-in U.S. TOLL-FREE: 1-877-344-7529
Replay Dial-in INTERNATIONAL: 1-412-317-0088
Replay Pin Number: 1869305
A replay will also be available for 90 days on Nova's website link at https://www.novami.com/investors/events/.
About Nova
Nova is a leading innovator and key provider of material, optical and chemical metrology solutions for advanced process control 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 developing and producing the most advanced semiconductor devices. Nova's unique capability to deliver innovative 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 worldwide. Additional information may be found on Nova's website link - https://www.novami.com/.
Nova is traded on the Nasdaq and TASE, Nasdaq ticker symbol NVMI.
Use of Non-GAAP Adjusted Financial Measures
This press release provides financial measures that exclude amortization of acquired intangible assets, stock-based compensation expenses, revaluation of operating lease liabilities and remeasurement of intercompany loans, amortization of issuance costs and tax effect of non-GAAP adjustment, 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 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 differ materially 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: increased information technology security threats and sophisticated computer crime; foreign political and economic risks including supply-chain difficulties; regulations that could restrict our operations such as economic sanctions and export restrictions; changes in U.S. trade policies; indirect effects of the Russia - Ukraine conflict; market instability including inflation and recessionary pressures; risks related to doing business with China; catastrophic events; inability to protect our intellectual property; open source technology exposure, including risks related to artificial intelligence; failure to compete effectively or to respond to rapid technological changes; consolidation in our industry; difficulty in predicting the length and strength of any downturn or expansion period of the market we target; factors that adversely affect the pricing and demand for our product lines; dependency on a small number of large customers; dependency on a single manufacturing facility per product line; dependency on a limited number of suppliers; difficulty in integrating current or future acquisitions; lengthy sales cycle and customer delays in orders; risks related to conditions in Israel, including related to the war against Hamas and other terrorist organizations; risks related to our convertible notes; currency fluctuations; and quarterly fluctuations in our operating results. 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, 2023, filed with the Securities and Exchange Commission on February 20, 2024. These factors are updated from time to time through the filing of reports and registration statements with the Securities and Exchange Commission. Nova Ltd. does not assume any obligation to update the forward-looking information contained in this press release.
(Tables to Follow)
NOVA LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands) - (Unaudited)
As of
September 30, December 31,
ASSETS 2024 2023
Current assets
Cash and cash equivalents 153,963 107,574
Short-term interest-bearing bank deposits 207,570 119,850
Marketable securities 239,570 216,258
Trade accounts receivable, net 114,386 111,256
Inventories 161,654 138,198
Other current assets 18,731 17,084
Total current assets 895,874 710,220
Non-current assets
Marketable securities 201,126 191,351
Interest-bearing bank deposits and restricted deposits 7,715 6,254
Deferred tax assets 27,159 23,583
Operating lease right-of-use assets 39,008 41,856
Property plant and equipment, net 69,260 66,874
Intangible assets, net 35,155 39,184
Goodwill 50,438 50,080
Other long-term assets 7,699 4,405
Total non-current assets 437,560 423,587
Total assets 1,333,434 1,133,807
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Convertible senior notes, net 198,648 197,678
Trade accounts payable 46,862 35,158
Deferred revenues 57,039 41,978
Operating lease current liabilities 6,442 6,703
Other current liabilities 58,559 41,294
Total current liabilities 367,550 322,811
Non-current liabilities
Operating lease long-term liabilities 36,249 39,762
Long-term deferred tax liability 9,452 10,574
Other long-term liabilities 12,863 9,908
Total non-current liabilities 58,564 60,244
Shareholders' equity 907,320 750,752
Total liabilities and shareholders' equity 1,333,434 1,133,807
NOVA LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except per share data) - (Unaudited)
Three months ended Nine months ended
September 30, September 30,
2024 2023 2024 2023
Revenues:
Products 143,638 99,971 379,804 300,929
Services 35,336 28,837 97,826 82,774
Total revenues 178,974 128,808 477,630 383,703
Total cost of revenues 77,641 56,567 200,475 164,538
Gross profit 101,333 72,241 277,155 219,165
Operating expenses:
Research and development, net 29,083 21,372 79,348 66,753
Sales and marketing 16,594 12,438 49,110 38,887
General and administrative 6,425 4,283 16,628 14,924
Total operating expenses 52,102 38,093 145,086 120,564
Operating income 49,231 34,148 132,069 98,601
Financing income, net 11,030 4,797 24,991 15,153
Income before taxes on income 60,261 38,945 157,060 113,754
Income tax expenses 8,982 5,256 23,779 15,512
Net income for the period 51,279 33,689 133,281 98,242
Earnings per share:
Basic 1.76 1.17 4.58 3.42
Diluted 1.60 1.06 4.15 3.09
Shares used in calculation of earnings per share
(in thousands):
Basic 29,099 28,870 29,078 28,754
Diluted 32,238 31,983 32,303 32,033
NOVA LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands) - (Unaudited)
Three months ended Nine months ended
September 30, September 30,
2024 2023 2024 2023
Cash flows from operating activities:
Net income 51,279 33,689 133,281 98,242
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property and equipment 2,886 2,772 8,707 7,588
Amortization of intangible assets 1,467 1,477 4,376 4,396
Amortization of premium and accretion of discount on marketable securities, net (1,933) (818) (5,358) (1,867)
Amortization of debt discount and issuance costs 326 324 970 960
Share-based compensation 6,194 4,571 18,860 12,632
Net effect of exchange rate fluctuation (3,019) 2,589 (1,084) 4,345
Changes in assets and liabilities:
Trade accounts receivable, net (19,859) (9,258) (2,855) 17,423
Inventories (4,495) 6,173 (24,773) (28,851)
Other current and long-term assets (5,007) (2,673) (5,574) (5,391)
Deferred tax, net (2,524) (1,713) (4,873) (6,056)
Operating lease right-of-use assets 964 1,150 3,109 2,791
Trade accounts payable 5,573 (9,452) 11,197 (16,725)
Deferred revenues 2,780 15,051 15,059 11,683
Operating lease liabilities (536) (2,050) (4,035) (5,312)
Other current and long-term liabilities 12,758 4,938 19,613 (1,680)
Accrued severance pay, net 123 (83) 124 (252)
Net cash provided by operating activities 46,977 46,687 166,744 93,926
Cash flows from investment activities:
Change in short-term and long-term interest-bearing bank deposits (7,240) (52,415) (89,256) (61,025)
Investment in marketable securities (65,264) (68,737) (211,812) (166,877)
Proceeds from maturity of marketable securities 52,224 66,329 188,976 150,644
Purchase of property and equipment (3,914) (3,555) (9,094) (9,587)
Net cash provided by (used in) investing activities (24,194) (58,378) (121,186) (86,845)
Cash flows from
financing activities:
Purchases of treasury shares (112)
Proceeds from exercise of options 70 7 70 122
Net cash provided by financing activities 70 7 70 10
Effect of exchange rate fluctuations on cash and cash equivalents 757 (1,026) 761 (2,332)
Changes in cash and cash equivalents
and restricted cash 23,610 (12,710) 46,389 4,759
Cash and cash equivalents
and restricted cash
-beginning of period 130,353 129,190 107,574 111,721
Cash and cash equivalents - end of period 153,963 116,480 153,963 116,480
NOVA LTD.
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(U.S. dollars in thousands, except percentage and per share data) - (Unaudited)
Three months ended
September June September
30, 30,
30,
2024 2024 2023
GAAP gross profit 101,333 92,561 72,241
Stock-based compensation* 1,722 1,723 1,173
Amortization of acquired intangible assets 1,380 1,356 1,369
Non-GAAP gross profit 104,435 95,640 74,783
GAAP gross margin as a percentage of revenues 57 % 59 % 56 %
Non-GAAP gross margin as a percentage of revenues 58 % 61 % 58 %
GAAP operating income 49,231 45,618 34,148
Stock-based compensation* 6,194 6,294 4,571
Amortization of acquired intangible assets 1,467 1,441 1,477
Non-GAAP operating income 56,892 53,353 40,196
GAAP operating margin as a percentage of revenues 28 % 29 % 27 %
Non-GAAP operating margin as a percentage of revenues 32 % 34 % 31 %
GAAP net income 51,279 45,142 33,689
Stock-based compensation* 6,194 6,294 4,571
Amortization of acquired intangible assets 1,467 1,441 1,477
Amortization of issuance costs 326 322 324
Revaluation of operating lease and intercompany loans (2,309) (69) 423
Tax effect of non-GAAP adjustments (901) (1,174) (1,079)
Non-GAAP net income 56,056 51,956 39,405
GAAP basic earnings per share 1.76 1.55 1.17
Non-GAAP basic earnings per share 1.93 1.79 1.36
GAAP diluted earnings per share 1.60 1.41 1.06
Non-GAAP diluted earnings per share 1.74 1.61 1.23
Shares used for calculation of earnings per share
(in thousands):
Basic 29,099 29,048 28,870
Diluted 32,238 32,239 31,983
* Stock-based compensation for the three months ended Sep 30, 2024 included in - Cost of revenues - 1,722; Research and
development, net - 2,735; Sales and marketing - 1,176; General and administrative - 561.
NOVA LTD.
SUPPLEMENTAL INFORMATION - RECONCILIATION OF FOURTH QUARTER 2024
GAAP TO NON-GAAP GUIDANCE
(U.S. dollars) (Unaudited)
Low High
Estimated GAAP net income per diluted share 1.51 1.70
Estimated non-GAAP items:
Stock-based compensation 0.20 0.20
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 1.72 1.91
Company Contact:
Guy Kizner, Chief Financial Officer
Tel: +972-73-229-5760
E-mail - investors@novami.com
Nova website link - https://www.novami.com/
Investor Relations Contact:
Miri Segal MS-IR LLC
Tel: +917-607-8654
E-mail - msegal@ms-ir.com
Logo - https://mma.prnewswire.com/media/1446151/Nova_Logo.jpg
View original content:https://www.prnewswire.com/news-releases/nova-reports-record-third-quarter-2024-financial-results-302298618.html
SOURCE Nova
