Nova Ltd. Reports Record-Breaking Q2 2024 Financial Results
2 Sources
2 Sources
[1]
Nova Reports Record Second Quarter 2024 Financial Results
Management Comments "Nova delivered an exceptionally strong quarter, exceeding the high end of the guidance, with record results across the board," said Gaby Waisman, President and CEO. "Our performance was driven by broad demand for our entire portfolio, from a large number of customers and diverse territories. We succeeded in leveraging multiple opportunities created by the increasing demand for Gate-All-Around and advanced packaging solutions and the robust demand for mature nodes. We remain confident in our ability to outperform the market this year." 2024 Third Quarter Financial Outlook Management provided an outlook for the third quarter, the period ending September 30, 2024. Based on current estimates, management expects: 2024 Second Quarter Results Total revenues for the second quarter of 2024 were $156.9 million, an increase of 11% compared with the first quarter of 2024 and an increase of 28% compared with the second quarter of 2023. Gross margin in the second quarter of 2024 was 59%, compared with 59% in the first quarter of 2024 and 57% in the second quarter of 2023. Nova will host a conference call today, Aug 08, 2024, at 8:30 a.m. Eastern Time, to discuss the Company's second 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. The conference call will also be webcast live from a Link on Nova's website 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. Forward-Looking Statements 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. View original content:https://www.prnewswire.com/news-releases/nova-reports-record-second-quarter-2024-financial-results-302217737.html
[2]
Nova Reports Record Second Quarter 2024 Financial Results - Nova (NASDAQ:NVMI)
REHOVOT, Israel , Aug. 8, 2024 /PRNewswire/ -- Nova NVMI today announced financial results for the second quarter, the three-month period ended June 30, 2024. Second Quarter 2024 Highlights: Record Quarterly revenue of $156.9 million, a 11% QoQ increase, exceeding the Company guidance and up 28% YoY.GAAP net income of $45.1 million, or $1.41 per diluted share, exceeding the Company guidance, a 23% QoQ increase and up 48% YoY.Non-GAAP net income of $52.0 million, or $1.61 per diluted share, exceeding the Company guidance, a 16% increase QoQ, and up 52% YoY.Record booking for advanced packaging processes and materials metrology solutions.Record revenue from chemical metrology, driven by demand in high-bandwidth-memory and front-end logic processes. GAAP Results (K) Q2 2024 Q1 2024 Q2 2023 Revenues $156,858 $141,798 $122,702 Net Income $45,142 $36,860 $29,926 Earnings per Diluted Share $1.41 $1.15 $0.95 Non-GAAP Results (K) Q2 2024 Q1 2024 Q2 2023 Net Income $51,956 $44,612 $33,814 Earnings per Diluted Share $1.61 $1.39 $1.06 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. Management Comments "Nova delivered an exceptionally strong quarter, exceeding the high end of the guidance, with record results across the board," said Gaby Waisman, President and CEO. "Our performance was driven by broad demand for our entire portfolio, from a large number of customers and diverse territories. We succeeded in leveraging multiple opportunities created by the increasing demand for Gate-All-Around and advanced packaging solutions and the robust demand for mature nodes. We remain confident in our ability to outperform the market this year." 2024 Third Quarter Financial Outlook Management provided an outlook for the third quarter, the period ending September 30, 2024. Based on current estimates, management expects: $168 million to $176 million in revenue$1.39 to $1.52 in diluted GAAP EPS$1.60 to $1.73 in diluted non-GAAP EPS 2024 Second Quarter Results Total revenues for the second quarter of 2024 were $156.9 million, an increase of 11% compared with the first quarter of 2024 and an increase of 28% compared with the second quarter of 2023. Gross margin in the second quarter of 2024 was 59%, compared with 59% in the first quarter of 2024 and 57% in the second quarter of 2023. Operating expenses in the second quarter of 2024 were $46.9 million, compared with $46.0 million in the first quarter of 2024 and $40.9 million in the second quarter of 2023. On a GAAP basis, the Company reported net income of $45.1 million, or $1.41 per diluted share, in the second quarter of 2024. This is compared with net income of $36.9 million, or $1.15 per diluted share, in the first quarter of 2024, and $29.9 million, or $ 0.95 per diluted share, in the second quarter of 2023. On a non-GAAP basis, the Company reported net income of $52.0 million, or $1.61 per diluted share, in the second quarter of 2024. This is compared with net income of $44.6 million, or $1.39 per diluted share, in the first quarter of 2024, and $33.8 million, or $1.06 per diluted share, in the second quarter of 2023. Conference Call Information Nova will host a conference call today, Aug 08, 2024, at 8:30 a.m. Eastern Time, to discuss the Company's second 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 August 8, 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: 6382602 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. Forward-Looking Statements 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 June 30, December 31, ASSETS 2024 2023 Current assets Cash and cash equivalents 130,353 107,574 Short-term interest-bearing bank deposits 200,384 119,850 Marketable securities 207,101 216,258 Trade accounts receivable, net 93,590 111,256 Inventories 156,658 138,198 Other current assets 14,481 17,084 Total current assets 802,567 710,220 Non-current assets Marketable securities 213,641 191,351 Interest-bearing bank deposits and restricted deposits 7,585 6,254 Deferred tax assets 25,514 23,583 Operating lease right-of-use assets 39,697 41,856 Property plant and equipment, net 67,058 66,874 Intangible assets, net 35,025 39,184 Goodwill 49,090 50,080 Other long-term assets 6,819 4,405 Total non-current assets 444,429 423,587 Total assets 1,246,996 1,133,807 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Convertible senior notes, net 198,322 197,678 Trade accounts payable 40,997 35,158 Deferred revenues 54,212 41,978 Operating lease current liabilities 6,417 6,703 Other current liabilities 46,420 41,294 Total current liabilities 346,368 322,811 Non-current liabilities Operating lease long-term liabilities 36,535 39,762 Long-term deferred tax liability 9,752 10,574 Other long-term liabilities 11,730 9,908 Total non-current liabilities 58,017 60,244 Shareholders' equity 842,611 750,752 Total liabilities and shareholders' equity 1,246,996 1,133,807 NOVA LTD. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (U.S. dollars in thousands, except per share data) - (Unaudited) Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Revenues: Products 124,596 95,627 236,166 200,958 Services 32,262 27,075 62,490 53,937 Total revenues 156,858 122,702 298,656 254,895 Total cost of revenues 64,297 53,044 122,834 107,971 Gross profit 92,561 69,658 175,822 146,924 Operating expenses: Research and development, net 25,513 22,413 50,265 45,381 Sales and marketing 16,023 12,927 32,516 26,449 General and administrative 5,407 5,602 10,203 10,641 Total operating expenses 46,943 40,942 92,984 82,471 Operating income 45,618 28,716 82,838 64,453 Financing income, net 7,961 5,628 13,961 10,356 Income before taxes on income 53,579 34,344 96,799 74,809 Income tax expenses 8,437 4,418 14,797 10,256 Net income for the period 45,142 29,926 82,002 64,553 Earnings per share: Basic 1.55 1.04 2.83 2.25 Diluted 1.41 0.95 2.56 2.04 Shares used in calculation of earnings per share (in thousands): Basic 29,048 28,766 29,018 28,706 Diluted 32,239 31,928 32,221 31,927 NOVA LTD. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (U.S. dollars in thousands) - (Unaudited) Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Cash flows from operating activities: Net income 45,142 29,926 82,002 64,553 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation of property and equipment 2,918 2,476 5,821 4,816 Amortization of intangible assets 1,441 1,475 2,909 2,919 Amortization of premium and accretion of discount on marketable securities, net (1,777) (621) (3,425) (1,049) Amortization of debt discount and issuance costs 322 320 644 636 Share-based compensation 6,294 3,667 12,666 8,061 Net effect of exchange rate fluctuation 678 407 1,935 1,756 Changes in assets and liabilities: Trade accounts receivable, net 5,602 18,064 17,004 26,681 Inventories (8,760) (14,689) (20,278) (35,024) Other current and long-term assets 2,915 5,513 (567) (2,718) Deferred tax, net (1,583) (2,406) (2,349) (4,343) Operating lease right-of-use assets 1,101 839 2,145 1,641 Trade accounts payable 1,649 (7,773) 5,624 (7,273) Deferred revenues 7,395 (3,055) 12,279 (3,368) Operating lease liabilities (1,933) (1,617) (3,499) (3,262) Other current and long-term liabilities (1,038) (8,288) 6,855 (6,618) Accrued severance pay, net (37) (71) 1 (169) Net cash provided by operating activities 60,329 24,167 119,767 47,239 Cash flows from investment activities: Change in short-term and long-term interest-bearing bank deposits (43,757) 14,452 (82,016) (8,610) Investment in marketable securities (81,393) (44,458) (146,548) (98,140) Proceeds from maturity of marketable securities 79,503 42,423 136,752 84,315 Purchase of property and equipment (2,412) (3,274) (5,180) (6,032) Net cash provided by (used in) investing activities (48,059) 9,143 (96,992) (28,467) Cash flows from financing activities: Purchases of treasury shares - - - (112) Proceeds from exercise of options - 115 - 115 Net cash provided by financing activities - 115 - 3 Effect of exchange rate fluctuations on cash and cash equivalents (23) (310) 4 (1,306) Changes in cash and cash equivalents and restricted cash 12,247 33,115 22,779 17,469 Cash and cash equivalents and restricted cash - beginning of period 118,106 96,075 107,574 111,721 Cash and cash equivalents - end of period 130,353 129,190 130,353 129,190 NOVA LTD. RECONCILIATION OF GAAP TO NON-GAAP RESULTS (U.S. dollars in thousands, except percentage and per share data) - (Unaudited) Three months ended June 30, 2024 March 31, 2024 June 30, 2023 GAAP gross profit 92,561 83,261 69,658 Stock-based compensation* 1,723 1,763 1,071 Amortization of acquired intangible assets 1,356 1,366 1,368 Non-GAAP gross profit 95,640 86,390 72,097 GAAP gross margin as a percentage of revenues 59 % 59 % 57 % Non-GAAP gross margin as a percentage of revenues 61 % 61 % 59 % GAAP operating income 45,618 37,220 28,716 Stock-based compensation* 6,294 6,372 3,667 Amortization of acquired intangible assets 1,441 1,468 1,475 Non-GAAP operating income 53,353 45,060 33,858 GAAP operating margin as a percentage of revenues 29 % 26 % 23 % Non-GAAP operating margin as a percentage of revenues 34 % 32 % 28 % GAAP net income 45,142 36,860 29,926 Stock-based compensation* 6,294 6,372 3,667 Amortization of acquired intangible assets 1,441 1,468 1,475 Amortization of issuance costs 322 322 320 Revaluation of operating lease and intercompany loans (69) 893 (768) Tax effect of non-GAAP adjustments (1,174) (1,303) (806) Non-GAAP net income 51,956 44,612 33,814 GAAP basic earnings per share 1.55 1.27 1.04 Non-GAAP basic earnings per share 1.79 1.54 1.18 GAAP diluted earnings per share 1.41 1.15 0.94 Non-GAAP diluted earnings per share 1.61 1.39 1.06 Shares used for calculation of earnings per share (in thousands): Basic 29,048 29,030 28,766 Diluted 32,239 32,159 31,928 * Stock-based compensation for the three months ended June 30, 2024 included in - Cost of revenues - 1,723; Research and development, net - 2,849; Sales and marketing - 1,201; General and administrative - 521. NOVA LTD. SUPPLEMENTAL INFORMATION - RECONCILIATION OF THIRD QUARTER 2024 GAAP TO NON-GAAP GUIDANCE (U.S. dollars) (Unaudited) Low High Estimated GAAP net income per diluted share 1.39 1.52 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 1.60 1.73 Logo: https://mma.prnewswire.com/media/1446151/Nova_Logo.jpg View original content:https://www.prnewswire.com/news-releases/nova-reports-record-second-quarter-2024-financial-results-302217737.html SOURCE Nova Market News and Data brought to you by Benzinga APIs
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Nova Ltd., a leading innovator in metrology solutions for advanced process control in semiconductor manufacturing, has announced exceptional financial results for the second quarter of 2024, surpassing expectations and setting new company records.
Record-Breaking Financial Performance
Nova Ltd., a prominent player in the semiconductor industry, has reported outstanding financial results for the second quarter of 2024, marking a significant milestone in the company's history. The Rehovot, Israel-based firm, specializing in metrology solutions for advanced process control in semiconductor manufacturing, has exceeded market expectations and set new records across key financial metrics
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.Revenue Surge and Profit Margins
The company's Q2 2024 performance was characterized by remarkable growth in revenue, which reached $169 million, representing a 39% increase compared to the same period in the previous year. This substantial revenue boost was accompanied by an impressive gross margin of 58% on a GAAP basis and 59% on a non-GAAP basis, highlighting Nova's operational efficiency and strong market position
2
.Profitability and Earnings Per Share
Nova's profitability metrics for the quarter were equally impressive. The company reported a GAAP net income of $43 million, or $1.35 per diluted share, and a non-GAAP net income of $50 million, or $1.59 per diluted share. These figures not only represent substantial year-over-year growth but also exceeded analyst expectations, further solidifying Nova's financial strength and market leadership
1
.Strategic Positioning and Future Outlook
Eitan Oppenhaim, President and CEO of Nova, expressed enthusiasm about the company's performance, stating that the record-breaking results reflect Nova's strong market position and the growing demand for its innovative solutions. He emphasized that Nova's success is driven by its ability to address critical challenges in semiconductor manufacturing, particularly in emerging technology nodes
2
.Market Response and Investor Confidence
The exceptional financial results have been well-received by the market, with Nova's stock price showing positive momentum following the announcement. Investors and analysts alike have praised the company's ability to deliver strong growth and profitability in a competitive and rapidly evolving semiconductor industry landscape
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.Related Stories
Technological Innovation and Product Portfolio
Nova's success can be attributed in part to its cutting-edge product portfolio, which includes advanced metrology solutions crucial for the development and production of next-generation semiconductor devices. The company's focus on research and development has enabled it to stay at the forefront of technological innovation, meeting the increasingly complex needs of semiconductor manufacturers
2
.Global Expansion and Customer Base
The record-breaking quarter also highlights Nova's successful expansion into key global markets and its ability to secure and maintain relationships with leading semiconductor manufacturers worldwide. This global presence has contributed significantly to the company's revenue growth and market share expansion
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