Unassociated Document
 
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
 
August 2, 2011
 
Commission File No.: 000-30688
 
NOVA MEASURING INSTRUMENTS LTD.
(Translation of registrant’s name into English)

Building 22 Weizmann Science Park, 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 S 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): ____ 
 
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. 

Yes £ No S

Attached hereto is a press release issued by the Registrant and entitled: “Nova Announces 2011 Second Quarter Results”.

The financial statements tables included in the press release 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: September 13, 2000 (File No. 333-12546); March 5, 2002 (File No. 333-83734); December 24, 2002 (File No. 333-102193, as amended by Amendment No. 1, filed on January 5, 2006); March 24, 2003 (File No. 333-103981); May 17, 2004 (File Nos. 333-115554, 333-115555, and 333-115556, as amended by Amendment No. 1, filed on January 5, 2006); March 7, 2005 (File No. 333-123158); December 29, 2005 (File No. 333-130745); September 21, 2006 (File No. 333-137491) and November 5, 2007 (File No. 333-147140).
 
 
 

 

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: August 2, 2011 
 
NOVA MEASURING INSTRUMENTS LTD.
(Registrant)
 
By: /s/ Dror David
——————————————
Dror David
Chief Financial Officer
 
 
 

 
 
 
Company Contact:
Investor relations Contacts:
Dror David, Chief Financial Officer
Ehud Helft / Kenny Green
Nova Measuring Instruments Ltd.
CCG Investor Relations
Tel: 972-8-938-7505
Tel: +1-646-201-9246
E-mail: info@nova.co.il
E-mail: info@ccgisrael.com
http://www.nova.co.il
 

 
 
Company Press Release
 

NOVA ANNOUNCES 2011 SECOND QUARTER RESULTS

 

 
Rehovot, Israel – August 2, 2011 - Nova Measuring Instruments Ltd. (Nasdaq: NVMI), provider of leading edge stand alone metrology and the market leader of integrated metrology solutions to the semiconductor process control market, today reported its 2011 second quarter results.
 

 
Highlights for the Second Quarter of 2011
 
·  
Quarterly revenues of $29.6 million, up 53% year over year
 
·  
Gross margin of 58%; Record services gross margin of 39%
 
·  
Net margin of 31%
 
·  
Record quarterly net income of $9.1 million, or $0.34 per diluted share
 
·  
Positive cash flow from operating activities of $7 million
 
·  
Total cash reserves of $78.2 million
 

 
Management Comments
 
“Second quarter results continued to demonstrate strong financial performance,” said Gabi Seligsohn, President and CEO of Nova. “We set all-time records in revenues and earnings, with margins well above our long-term targets, and we generated significant operating cash flow.”
 
“During recent quarters we utilized our significant operating leverage and made investments into the development of new products and capabilities. Last month we were pleased to announce two new ground breaking products for the Optical CD metrology market. These products, which are already shipping to leading customers, position us well to further strengthen our position and expand our footprint in this market. Furthermore, we are progressing well with our plan to penetrate the 3D interconnect market and have recently concluded the development of the first phase of this product. We have already received excellent customer feedback to the tool capabilities and expect to ship initial evaluation units during the second half of this year”.
 
 
 

 
 
“Industry-wide, the pace of business began to slow somewhat in the second quarter, after extremely aggressive capital spending early in the first half of the year. Given the continued strong end market demand, we believe this is a mid cycle correction related to absorption and inventory realignment, which should result in lower revenues during the second half of 2011”.
 
“Looking forward, we expect the continuous growth in consumer demand for high-performance mobile devices to continue to drive spending, and we believe we are particularly well-positioned to benefit from the resumption of the uptrend. We have recently introduced innovative new products that will be crucial to our foundry and memory customers as they strive to enable smaller footprints and lower power consumption via advanced nodes and complex structures below 22nm.”
 
 
2011 Third Quarter Guidance
 
For the third quarter of 2011, management expects revenues of $24-$27 million, with net profitability of 20%-25%.
 
 
2011 Second Quarter Results
 
Total revenues for the second quarter of 2011 were $29.6 million, an increase of 52.5% relative to the second quarter of 2010, and an increase of 5.2% relative to the first quarter of 2011.
 
Gross margin for the second quarter of 2011 was 57.7%, compared with 53.6% in the second quarter of 2010 and 57.6% in the first quarter of 2011.
 
Operating expenses in the second quarter of 2011 were $8.2 million, compared with $5.8 million in the second quarter of 2010 and $8.4 million in the first quarter of 2011.
 
The company reported net income of $9.1 million, or $0.34 per diluted share, in the second quarter of 2011. This compares to a net income of $4.7 million, or $0.18 per diluted share, in the second quarter of 2010, and a net income of $8.1 million, or $0.30 per diluted share, in the first quarter of 2011.
 
The company generated $7.0 million in cash from operating activities during the second quarter of 2011. Total cash reserves at the end of the second quarter of 2011 were $78.2 million.
 
 
The Company will host a conference call today, August 2, 2011, at 9:00am ET. To participate, please dial in the US: 1 888 935 4575; or internationally: +972-3-721 9509. A recording of the call will be available on Nova’s website, within 24 hours following the end of the call. In addition, a presentation to accompany the conference call will be available together with a live webcast of the conference call. This will be accessible from a link on Nova’s website at www.nova.co.il.

 
 

 
 
About Nova
Nova Measuring Instruments Ltd. develops, produces and markets advanced integrated and stand alone metrology solutions for the semiconductor manufacturing industry. Nova is traded on the NASDAQ & TASE under the symbol NVMI. The Company's website is www.nova.co.il.


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 trends, demand for our products, expected deliveries, transaction, expected revenues, operating results, earnings 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. These risks and other factors include but are not limited to:  our dependency on two product lines; the highly cyclical nature of the markets we target; 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 OEM suppliers; our ability to retain our competitive position despite the ongoing consolidation in our industry; risks associated with our dependence on a single manufacturing facility; our ability to expand our manufacturing capacity or marketing efforts to support our future growth; our dependency on a small number of large customers and small number of suppliers; our dependency on our key employees; risks related to changes in our order backlog; risks related to the financial, political and environmental instabilities in Asia; risks related to our intellectual property; changes in customer demands for our products; new product offerings from our competitors; changes in or an inability to execute our business strategy; unanticipated manufacturing or supply problems; changes in tax requirements; changes in customer demand for our products; risks related to currency fluctuations; 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 31,2010 filed with the Securities and Exchange Commission on March 30, 2011. 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.
CONSOLIDATED BALANCE SHEET
(U.S. dollars in thousands)

   
As of
June 30,
   
As of
December 31,
 
   
2011
   
2010
 
             
CURRENT ASSETS
           
Cash and cash equivalents
    11,064       25,394  
Short-term interest-bearing bank deposits
    65,291       35,562  
Held to maturity securities
    1,186       --  
Trade accounts receivable
    19,675       13,162  
Inventories
    13,607       10,849  
Other current assets
    2,755       1,736  
      113,578       86,703  
LONG-TERM ASSETS
               
Long-term interest-bearing bank deposits
    631       631  
Other Long-term assets
    306       163  
Severance pay funds
    3,138       2,786  
      4,075       3,580  
                 
FIXED ASSETS, NET
    4,321       3,094  
                 
Total assets
    121,974       93,377  
                 
CURRENT LIABILITIES
               
Trade accounts payable
    11,954       9,956  
Deferred income
    8,997       3,397  
Other current liabilities
    8,089       7,908  
      29,040       21,261  
                 
LONG-TERM LIABILITIES
               
Liability for employee severance pay
    4,258       3,709  
Deferred income
    39       -  
Other long-term liability
    16       23  
      4,313       3,732  
                 
SHAREHOLDERS' EQUITY
    88,621       68,384  
                 
Total liabilities and shareholders' equity
    121,974       93,377  
 
 
 

 

NOVA MEASURING INSTRUMENTS LTD.
QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS
 (U.S. dollars in thousands, except per share data)
 
      Three months ended  
   
June 30,
2011
   
March 31,
2011
   
June 30,
2010
 
                   
REVENUES
                 
Product sales
    24,989       23,918       15,889  
Services
    4,658       4,251       3,551  
      29,647       28,169       19,440  
                         
COST OF REVENUES
                       
Products
    9,698       9,198       6,554  
Services
    2,833       2,735       2,452  
      12,531       11,933       9,006  
                         
GROSS PROFIT
    17,116       16,236       10,434  
                         
OPERATING EXPENSES
                       
Research & Development expenses, net
    4,516       4,967       2,828  
Sales & Marketing expenses
    2,778       2,711       2,242  
General & Administration expenses
    945       729       679  
      8,239       8,407       5,749  
                         
OPERATING PROFIT
    8,877       7,829       4,685  
                         
INTEREST INCOME, NET
    286       219       24  
                         
NET INCOME FOR THE PERIOD
    9,163       8,048       4,709  
                         
                         
Net income per share:
                       
Basic
    0.35       0.31       0.19  
Diluted
    0.34       0.30       0.18  
                         
Shares used for calculation of net income per share:
                       
Basic
    26,250       25,960       24,808  
Diluted
    27,176       27,020       26,406  
                         

 
 

 

NOVA MEASURING INSTRUMENTS LTD.
YEAR TO DATE CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except per share data)

   
Six-months ended
 
   
June 30,
2011
   
June 30,
2010
 
       
REVENUES
           
Product sales
    48,907       28,790  
Services
    8,909       6,631  
      57,816       35,421  
                 
COST OF REVENUES
               
Product sales
    18,896       12,032  
Services
    5,568       4,841  
      24,464       16,873  
                 
GROSS PROFIT
    33,352       18,548  
                 
OPERATING EXPENSES
               
Research & Development expenses, net
    9,483       5,382  
Sales & Marketing expenses
    5,489       4,438  
General & Administration expenses
    1,674       1,330  
      16,646       11,150  
                 
OPERATING PROFIT
    16,706       7,398  
                 
INTEREST INCOME, NET
    505       10  
                 
NET INCOME FOR THE PERIOD
    17,211       7,408  
                 
                 
Net income per share:
               
Basic
    0.66       0.31  
Diluted
    0.64       0.29  
                 
                 
Shares used for calculation of net income per share:
               
Basic
    26,105       23,721  
Diluted
    27,014       25,226  

 
 

 

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

   
Three months ended
 
   
June 30,
2011
   
March 31,
2011
   
June 30,
2010
 
CASH FLOW – OPERATING ACTIVITIES
                 
                   
Net income for the period
    9,163       8,048       4,709  
Adjustments to reconcile net income to net cash
    provided by operating activities:
                       
                         
Depreciation and amortization
    377       362       323  
Amortization of deferred stock-based compensation
    272       266       122  
Increase (decrease) in liability for employee
  termination benefits, net
    203       (6 )     105  
                         
Decrease (increase) in trade accounts receivables
    (4,835 )     (1,678 )     67  
Increase in inventories
    (2,240 )     (1,269 )     (1,855 )
Increase in other short and long term assets
    (33 )     (1,083 )     (388 )
Increase in trade accounts payables and other long
  term liabilities
    (667 )     2,663       289  
Increase (decrease) in other current liabilities
    (502 )     678       1,130  
Increase in short and long term deferred
  income
    5,266       373       1,769  
Net cash provided by operating activities
    7,004       8,354       6,271  
                         
CASH FLOW – INVESTMENT ACTIVITIES
                       
                         
Increase in short-term interest-bearing bank deposits
    (9,426 )     (20,303 )     (10,701 )
Increase in short term held to maturity securities
    (1,186 )     --       --  
Additions to fixed assets
    (539 )     (676 )     (307 )
Net cash used in investment activities
    (11,151 )     (20,979 )     (11,008 )
                         
CASH FLOW – FINANCING ACTIVITIES
                       
                         
Shares issued under employee share-based plans and
      exercise of warrants
    225       2,217       51  
Net cash provided by financing activities
    225       2,217       51  
                         
Decrease in cash and cash equivalents
    (3,922 )     (10,408 )     (4,686 )
Cash and cash equivalents – beginning of period
    14,986       25,394       11,524  
Cash and cash equivalents – end of period
    11,064       14,986       6,838  

 
 

 

NOVA MEASURING INSTRUMENTS LTD.
YEAR TO DATE CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)

   
Six months ended
 
   
June 30,
2011
   
June 30,
2010
 
CASH FLOW – OPERATING ACTIVITIES
           
             
Net income for the period
    17,211       7,408  
Adjustments to reconcile net income to net cash
    provided by operating activities:
               
                 
Depreciation and amortization
    739       647  
Amortization of deferred stock-based compensation
    538       238  
Increase in liability for employee termination benefits, net
    197       153  
                 
Decrease (increase) in trade accounts receivables
    (6,513 )     692  
Increase in inventories
    (3,509 )     (4,122 )
Increase in other current and long term assets
    (1,116 )     (648 )
  Increase in trade accounts payables and other long term liabilities
    1,996       2,834  
Increase in current liabilities
    176       25  
Increase in short and long term deferred income
    5,639       4,017  
Net cash provided by operating activities
    15,358       11,244  
                 
CASH FLOW – INVESTMENT ACTIVITIES
               
                 
Increase in short-term interest-bearing bank deposits
    (29,729 )     (30,687 )
Investment in short term held to maturity securities
    (1,186 )     --  
Investment in long-term deposits
    --       (9 )
Additions to fixed assets
    (1,215 )     (712 )
Net cash used in investment activities
    (32,130 )     (31,408 )
                 
CASH FLOW – FINANCING ACTIVITIES
               
                 
Shares issued under employee share-based plans
    2,442       173  
Shares issued in public offering
    --       16,968  
Net cash provided by financing activities
    2,442       17,141  
                 
Decrease in cash and cash equivalents
    (14,330 )     (3,023 )
Cash and cash equivalents – beginning of period
    25,394       9,861  
Cash and cash equivalents – end of period
    11,064       6,838