Nova Measuring Instruments Ltd. Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2016; Provides Earnings Guidance for the Fourth Quarter and Full Year Ending December 31, 2016; Provides Tax Rate Guidance for the Full Years of 2017 and 2018
November 02, 2016 at 05:03 am EDT
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Nova Measuring Instruments Ltd. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2016. For the quarter, the company reported total revenues of $44,060,000 against $40,446,000 a year ago. Operating loss was $6,947,000 against operating income of $5,249,000 a year ago. Loss before tax on income was $6,646,000 against income before tax on income of $5,343,000 a year ago. Net loss was $4,778,000 or $0.18 per basic and diluted share against net income of $5,437,000 or $0.20 per basic and diluted share a year ago. Net cash used in operating activities was $1,889,000 compared to net cash provided by operating activities of $7,356,000 a year ago. Additions to property and equipment were $535,000 compared to $644,000 a year ago. Non-GAAP operating income was $9,093,000 compared to $6,610,000 a year ago. Non-GAAP net income was $9,449,000 or $0.34 per diluted share against $6,316,000 or $0.23 per diluted share a year ago.
For the nine months, the company reported total revenues of $113,691,000 against $108,492,000 a year ago. Operating loss was $615,000 against operating income of $8,011,000 a year ago. Income before tax on income was $411,000 against $8,470,000 a year ago. Net income was $1,280,000 or $0.05 per diluted share against $10,564,000 or $0.38 per diluted share a year ago. Net cash used in operating activities was $2,642,000 compared to net cash provided by operating activities of $13,072,000 a year ago. Additions to property and equipment were $1,615,000 compared to $2,168,000 a year ago.
For the fourth quarter ending December 31, 2016, the company expects $42 million to $46 million in revenue; $0.23 to $0.29 in diluted GAAP EPS; $0.31 to $0.40 in diluted non-GAAP EPS. Blended gross margin is expected to be approximately 56% in the fourth quarter of the year. On the tax front, the company expects third quarter tax rate to be between 15% and 20% on a GAAP basis and approximately 5% on a non-GAAP basis.
At the midpoint of this guidance for earnings per share, the company will generate over $1 of non-GAAP earnings per share in 2016, well ahead of the company's communicated plans at the time of closing ReVera acquisition. Given the impact of the royalty buyout agreement and the fluent business changes in the company's mixture of product sales and service revenue levels, the company is slightly updating the company's target model. At this time, blended gross margin model is expected to be between 54% and 56% instead of 53% to 55%, with product gross margin higher than 59% and services gross margin higher than 40%.
On the tax front, starting 2018, the company expects normalized tax rate to be approximately 20% on both GAAP and non-GAAP basis.
For 2017, normalized tax rate is expected to be the final transition year towards a normalized fluent tax rate, the company is currently modeling tax rate of 20% on a GAAP basis and 15% on a non-GAAP basis.
Nova Ltd, former Nova Measuring Instruments Ltd,is an Israel based company which provides metrology solutions for the semiconductor manufacturing industry. The Company offers in-line Optical and x-ray stand-alone metrology systems, as well as integrated optical metrology systems, which are attached directly to wafer fabrication process equipment. Its metrology systems measure various film thickness and composition properties, as well as critical-dimension (CD) variables during various front-end and back-end of line steps in the semiconductor wafer fabrication process. Its product portfolio includes a set of in-situ, integrated and stand-alone metrology platforms suited for dimensional, films and material metrology measurements for process control across multiple semiconductor manufacturing process steps. Its products include NovaScan 2040, NovaScan 3090Next, Nova i500, Nova T500, Nova T600, Nova V2600 TSV metrology system among others.
Nova Measuring Instruments Ltd. Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2016; Provides Earnings Guidance for the Fourth Quarter and Full Year Ending December 31, 2016; Provides Tax Rate Guidance for the Full Years of 2017 and 2018