Categories: News

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.

 

 

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.

 

 

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
.

Management Comments

“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
2024 Third Quarter Results

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.

Conference Call Information

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 linkhttps://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 RussiaUkraine 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
September 30,

Nine months ended
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
September 30,

Nine months ended
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 30,
2024

June 30,
2024

September 30,
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 linkhttps://www.novami.com/ 

Investor Relations Contact:
Miri Segal MS-IR LLC
Tel: +917-607-8654
E-mail – msegal@ms-ir.com 

Logo – https://healthtechnologynet.com/wp-content/uploads/2024/11/Nova_Logo.jpg

View original content:https://www.prnewswire.com/news-releases/nova-reports-record-third-quarter-2024-financial-results-302298618.html

SOURCE Nova

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