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.

 

GAAP Results (K)

Q3 2024

Q2 2024

Q3 2023

Revenues

$178,974

$156,858

$128,808

Net Income

$51,279

$45,142

$33,689

Earnings per Diluted Share  

$1.60

$1.41

$1.06

 

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: 1-833-816-1427ISRAEL TOLL-FREE Dial-in Number: 1-809-213-284INTERNATIONAL Dial-in Number: 1-412-317-0519

 

At:8:30 a.m. Eastern Time5:30 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: 1-877-344-7529Replay Dial-in INTERNATIONAL: 1-412-317-0088Replay 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 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

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