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 August 2017

Commission File No.: 000-30668
 
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): ____ 
 
Attached hereto and incorporated by way of reference herein is a press release issued by the Registrant and entitled: "Nova Reports Record Second Quarter 2017 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) and March 6, 2015 (File No. 333-202550).

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, 2017
 
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@novameasuring.com
www.novameasuring.com
Investor Relations Contacts:
Hayden/ MS-IR LLC
Miri Segal
Tel: +917-607-8654
E-mail: msegal@ms-ir.com
Or
Brett Maas
Tel: +646-536-7331
E-mail: brett@haydenir.com
 
Company Press Release
 
Nova Reports Record Second Quarter 2017 Results
 
Rehovot, Israel, August 2, 2017 - Nova (Nasdaq: NVMI), a leading innovator and a key provider of metrology solutions for advanced process control used in semiconductor manufacturing, today reported record financial results for the second quarter 2017, the period ended June 30, 2017.
 
Second Quarter 2017 Highlights:
 
·
Record quarterly revenue of $56.1 million, up 58% year-over-year, above the high end of guidance of $52 million to $56 million
·
GAAP net income of $13.3 million, or $0.47 per diluted share, up 327% year-over-year on a per-share basis, exceeding guidance of $0.32 to $0.39 per share
·
Non-GAAP net income of $15.2 million, or $0.53 per diluted share, up 212% year-over-year on a per-share basis, exceeding guidance of $0.38 to $0.46 per share
·
Diversified customer mix, including five 10%-plus customers
·
Record quarterly revenue from Integrated Metrology solutions, including record Integrated Metrology revenue from Memory customers
 
GAAP Results ($K)
 
Q2 2017
Q1 2017
Q2 2016
Revenues
$56,126
$54,430
$35,575
Net Income
$13,313
$13,403
$3,153
Earnings per Diluted Share
$0.47
$0.48
$0.11
NON-GAAP Results ($K)
 
Q2 2017
Q1 2017
Q2 2016
Net Income
$15,167
$14,115
$4,703
Earnings per Diluted Share
$0.53
$0.50
$0.17
 
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, net adjustments of deferred tax assets and stock-based compensation expenses.
 

Management Comments
 
"We continue to outperform and solidify Nova's competitive position in the market by offering an innovative and unique portfolio of metrology solutions to a growing addressable market," commented Eitan Oppenhaim, President and Chief Executive Officer of Nova. "The record quarterly results are driven by continuous demand for all our product lines, including Dimensional and Materials solutions, across all segments. Our second quarter revenue and profitability both exceeded our guidance range, supported by an increasingly diverse customer base with five 10%-plus customers from both the Foundry and Memory segments."
 
"We delivered significant growth during the first half of 2017, demonstrating the value and efficiency embedded into our business model, which allows us to continue investing in our next-generation products and to pursue our strategic targets," added Mr. Oppenhaim. "The results in the first half of 2017 suggest that we are well on pace for another significant growth year, while our strong cash reserves provide ample resources to further expand our market position."
 
2017 Third Quarter Financial Outlook
 
Management provided an outlook for the third quarter, the period ending September 30, 2017. Based on current estimates, management expects:
 
·
$51 million to $56 million in revenue
 
·
$0.27 to $0.37 in diluted GAAP EPS
 
·
$0.33 to $0.43 in diluted non-GAAP EPS
 
2017 Second Quarter Results
 
Total revenues for the second quarter of 2017 were $56.1 million, a sequential increase of 3% compared to the first quarter of 2017 and a year-over-year increase of 58% relative to the second quarter of 2016.
 
Gross margin in the second quarter of 2017 was 59%, compared to a gross margin of 60% in the first quarter of 2017 and compared to a gross margin of 53% in the second quarter of 2016.
 
Operating expenses in the second quarter of 2017 were $17.7 million, similar to the first quarter of 2017 and compared with $15.4 million in the second quarter of 2016.
 
On a GAAP basis, the company reported net income of $13.3 million, or $0.47 per diluted share, in the second quarter of 2017. This is compared with net income of $13.4 million, or $0.48 per diluted share, in the first quarter of 2017, and compared with net income of $3.2 million, or $0.11 per diluted share, in the second quarter of 2016.
 
On a non-GAAP basis, which excludes amortization of acquired intangible assets, net adjustments of deferred tax assets and stock-based compensation expenses, the company reported net income of $15.2 million, or $0.53 per diluted share, in the second quarter of 2017. This is compared with net income of $14.1 million, or $0.50 per diluted share, in the first quarter of 2017, and compared with net income of $4.7 million, or $0.17 per diluted share, in the second quarter of 2016.
 
Total cash reserves at June 30, 2017 were $135.7 million, compared to $91.7 million at December 31, 2016.
 

 
Conference Call Information
 
Nova will host a conference call today, August 2, 2017, at 9 a.m. Eastern Time, to discuss the financial results and future 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. Dial-in Number: 1-800-310-1961
ISRAEL Dial-in Number: 1-809-245-905
INTERNATIONAL Dial-in Number: 1-719-325-2291
At:
9 a.m. Eastern Time
6 a.m. Pacific Time
4 p.m. Israeli Time

Please reference conference ID 1221502
 
The conference call will also be webcast live from a link on Nova's website at http://ir.novameasuring.com.
 
A replay of the conference call will be available from August 2, 2017 at 12 p.m. Eastern Time to August 9, 2017 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:  1221502
 
A replay will also be available for 90 days on Nova's website at http://ir.novameasuring.com.
 
About Nova: Nova delivers continuous innovation by providing advanced metrology solutions for the semiconductor manufacturing industry. Deployed with the world's largest integrated-circuit manufacturers, Nova's products deliver 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, supports the development and production of the most advanced devices in today's high-end semiconductor market. Nova's technical innovation and market leadership enable customers to improve process performance, enhance products' 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.novameasuring.com.
 
Nova is traded on the NASDAQ & TASE under the symbol NVMI.
 
This press release provides financial measures that exclude charges for amortization of acquired intangible assets, net adjustment of deferred tax assets and stock-based compensation expenses 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 enhances 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 allows 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 ability to recognize the benefits of ReVera acquisition and risks that the acquisition may disrupt current plans and operations and impact relationships with customers, distributors and suppliers; 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 the worldwide financial instabilities; 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 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, 2016 filed with the Securities and Exchange Commission on March 3, 2017. 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
 
 
 
June 30,
2017
   
December 31,
2016
 
ASSETS            
             
Current assets
           
Cash and cash equivalents
   
41,732
     
20,406
 
Short-term interest-bearing bank deposits
   
93,205
     
70,546
 
Trade accounts receivable
   
36,352
     
42,626
 
Inventories
   
33,671
     
29,260
 
Other current assets
   
6,023
     
5,068
 
                 
Total current assets
   
210,983
     
167,906
 
                 
Long-term assets
               
Long-term interest-bearing bank deposits
   
750
     
750
 
Deferred tax assets
   
2,367
     
3,020
 
Severance pay funds
   
1,471
     
1,425
 
Property and equipment, net
   
9,596
     
10,017
 
Identifiable intangible assets, net
   
14,081
     
15,361
 
Goodwill
   
20,114
     
20,114
 
                 
Total long-term assets
   
48,379
     
50,687
 
                 
Total assets
   
259,362
     
218,593
 
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
               
Current liabilities
               
Trade accounts payable
   
19,209
     
16,501
 
Deferred revenues
   
10,236
     
4,072
 
Other current liabilities
   
19,996
     
18,461
 
                 
Total current liabilities
   
49,441
     
39,034
 
                 
Long-term liabilities
               
Deferred tax liabilities
   
516
     
1,094
 
Liability for employee severance pay
   
2,537
     
2,418
 
Other long-term liabilities
   
1,616
     
1,330
 
                 
Total long-term liabilities
   
4,669
     
4,842
 
                 
Shareholders' equity
   
205,252
     
174,717
 
                 
Total liabilities and shareholders' equity
   
259,362
     
218,593
 


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

   
Three months ended
   
Six months ended
 
   
June 30,
2017
   
June 30,
2016
   
June 30,
2017
   
June 30,
2016
 
                         
Revenues:
                       
Products
   
44,954
     
25,427
     
88,470
     
49,689
 
Services
   
11,172
     
10,148
     
22,086
     
19,942
 
Total revenues
   
56,126
     
35,575
     
110,556
     
69,631
 
                                 
Cost of revenues:
                               
Products
   
15,809
     
10,092
     
30,929
     
19,953
 
Services
   
6,923
     
6,584
     
13,373
     
12,249
 
Total cost of revenues
   
22,732
     
16,676
     
44,302
     
32,202
 
                                 
Gross profit
   
33,394
     
18,899
     
66,254
     
37,429
 
                                 
Operating expenses:
                               
Research and development expenses, net
   
9,238
     
8,684
     
18,513
     
16,592
 
Sales and marketing expenses
   
5,892
     
4,535
     
11,980
     
9,902
 
General and administration expenses
   
1,938
     
1,521
     
3,595
     
3,331
 
Amortization of acquired intangible assets
   
640
     
636
     
1,280
     
1,272
 
Total operating expenses
   
17,708
     
15,376
     
35,368
     
31,097
 
                                 
Operating income
   
15,686
     
3,523
     
30,886
     
6,332
 
                                 
Financing income, net
   
525
     
256
     
940
     
725
 
                                 
Income before tax on income
   
16,211
     
3,779
     
31,826
     
7,057
 
                                 
Income tax expenses
   
2,898
     
626
     
5,110
     
999
 
                                 
Net income for the period
   
13,313
     
3,153
     
26,716
     
6,058
 
                                 
Earnings per share:
                               
Basic
   
0.48
     
0.12
     
0.97
     
0.22
 
Diluted
   
0.47
     
0.11
     
0.96
     
0.22
 
                                 
Shares used for calculation of earnings per share:
                               
                                 
Basic
   
27,655
     
27,123
     
27,561
     
27,120
 
Diluted
   
28,562
     
27,422
     
27,958
     
27,253
 


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

   
Three months ended
   
Six months ended
 
   
June 30,
2017
   
June 30,
2016
   
June 30,
2017
   
June 30,
2016
 
Cash flows from operating activities:
                       
Net income for the period
   
13,313
     
3,153
     
26,716
     
6,058
 
                                 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
                               
Depreciation
   
938
     
1,064
     
1,893
     
2,349
 
Amortization of acquired intangible assets
   
640
     
636
     
1,280
     
1,272
 
Amortization of deferred stock-based compensation
   
548
     
649
     
1,211
     
1,405
 
Increase in liability for employee termination benefits, net
   
41
     
30
     
73
     
96
 
Deferred tax assets, net
   
666
     
265
     
75
     
418
 
Decrease (increase) in trade accounts receivable
   
1,887
     
(689
)
   
6,274
     
(3,729
)
Increase in inventories
   
(3,041
)
   
(2,687
)
   
(4,616
)
   
(3,057
)
Decrease (increase) in other current assets
   
(1,376
)
   
739
     
(955
)
   
392
 
Increase (decrease) in trade accounts payable
   
2,618
     
1,946
     
2,708
     
(1,244
)
Increase (decrease) in other current liabilities and other long-term liabilities
   
409
     
(2,490
)
   
2,288
     
(2,607
)
Increase (decrease) in short term deferred revenues
   
3,770
     
851
     
6,164
     
(2,106
)
                                 
Net cash provided by (used in) operating activities
   
20,413
     
3,467
     
43,111
     
(753
)
                                 
Cash flow from investment activities:
                               
Decrease (increase) in short-term interest-bearing bank deposits
   
(2,581
)
   
1,098
     
(22,659
)
   
(5,932
)
Additions to property and equipment
   
(847
)
   
(503
)
   
(1,267
)
   
(1,080
)
                                 
Net cash provided by (used in) investment activities
   
(3,428
)
   
595
     
(23,926
)
   
(7,012
)
                                 
Cash flows from financing activities:
                               
Purchases of treasury shares
   
-
     
(937
)
   
-
     
(937
)
Shares issued under employee stock-based plans
   
324
     
132
     
2,141
     
424
 
                                 
Net cash provided by (used in) financing activities
   
324
     
(805
)
   
2,141
     
(513
)
                                 
Increase (decrease) in cash and cash equivalents
   
17,309
     
3,257
     
21,326
     
(8,278
)
Cash and cash equivalents – beginning of period
   
24,423
     
16,198
     
20,406
     
27,733
 
Cash and cash equivalents – end of period
   
41,732
     
19,455
     
41,732
     
19,455
 


 
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
 
   
June 30,
2017
   
March 31,
2017
   
June 30,
2016
 
GAAP cost of revenues
   
22,732
     
21,570
     
16,676
 
Stock-based compensation in cost of products
   
(74
)
   
(76
)
   
(79
)
Stock-based compensation in cost of services
   
(56
)
   
(66
)
   
(48
)
Non-GAAP cost of revenues
   
22,602
     
21,428
     
16,549
 
                         
GAAP gross profit
   
33,394
     
32,860
     
18,899
 
Gross profit adjustments
   
130
     
142
     
127
 
Non-GAAP gross profit
   
33,524
     
33,002
     
19,026
 
GAAP gross margin as a percentage of revenues
   
59
%
   
60
%
   
53
%
Non-GAAP gross margin as a percentage of revenues
   
60
%
   
61
%
   
53
%
                         
GAAP operating expenses
   
17,708
     
17,660
     
15,376
 
Stock-based compensation in research and development
   
(188
)
   
(262
)
   
(230
)
Stock-based compensation in sales and marketing
   
(146
)
   
(165
)
   
(237
)
Stock-based compensation in general and administrative
   
(84
)
   
(94
)
   
(55
)
Amortization of acquired intangible assets
   
(640
)
   
(640
)
   
(636
)
Non-GAAP operating expenses
   
16,650
     
16,499
     
14,218
 
Non-GAAP operating income
   
16,874
     
16,503
     
4,808
 
GAAP operating margin as a percentage of revenues
   
28
%
   
28
%
   
10
%
Non-GAAP operating margin as a percentage of revenues
   
30
%
   
30
%
   
14
%
                         
GAAP tax on income
   
2,898
     
2,212
     
626
 
Deferred tax assets adjustments, net
   
(666
)
   
591
     
(265
)
Non-GAAP tax on income
   
2,232
     
2,803
     
361
 
                         
GAAP net income
   
13,313
     
13,403
     
3,153
 
Amortization of acquired intangible assets
   
640
     
640
     
636
 
Stock-based compensation expenses
   
548
     
663
     
649
 
Deferred tax assets adjustments, net
   
666
     
(591
)
   
265
 
Non-GAAP net income
   
15,167
     
14,115
     
4,703
 
                         
GAAP basic earnings per share
   
0.48
     
0.49
     
0.12
 
Non-GAAP basic earnings per share
   
0.55
     
0.51
     
0.17
 
                         
GAAP diluted earnings per share
   
0.47
     
0.48
     
0.11
 
Non-GAAP diluted earnings per share
   
0.5 3
     
0.50
     
0.17
 
                         
Shares used for calculation of earnings per share:
                       
Basic
   
27,655
     
27,467
     
27,123
 
Diluted
   
28,562
     
28,148
     
27,422