Nova Reports Record First Quarter 2025 Financial Results
First Quarter 2025 Highlights:
- Record Quarterly revenue of
$213.4 million , a 10% QoQ increase up 50% YoY. - Record GAAP net income of
$64.8 million , or$2.03 per diluted share, exceeding the Company guidance, a 28% increase QoQ, and up 77% YoY. - Record non-GAAP net income of
$70.0 million , or$2.18 per diluted share, exceeding the Company guidance, a 12% increase QoQ, and up 56% YoY. - Record sales of dimensional metrology, facilitated by record performance across Integrated, stand-alone, and software metrology solutions.
- Strong quarterly performance driven by increasing adoption of Nova's solutions in Gate-All-Around and Advanced packaging process steps.
- The Company completed the acquisition of Sentronics metrology GmbH, a global provider of wafer metrology tools for backend semiconductor fabrication.
|
|
Q 1 2025 |
Q4 2024 |
Q1 2024 |
|
Revenues |
|
|
|
|
Net Income |
|
|
|
|
Earnings per Diluted Share |
|
|
|
|
|
Q 1 2025 |
Q4 2024 |
Q1 2024 |
|
Net Income |
|
|
|
|
Earnings per Diluted Share |
|
|
|
|
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. |
"Nova delivered an exceptional quarter, with record revenue and profitability that reflect the strength of our unique portfolio. Our strong positioning across markets, segments, and diverse customer base were central to this outperformance," said
Management provided an outlook for the second quarter, the period ending
-
$210 million to$220 million in revenue -
$1.70 to$1.88 in diluted GAAP EPS -
$1.96 to$2.14 in diluted non-GAAP EPS
Total revenues for the first quarter of 2025 were $213.4 million, an increase of 10% compared with the fourth quarter of 2024 and an increase of 50% compared with the first quarter of 2024.
Gross margin in the first quarter of 2025 was 57%, compared with 56% in the fourth quarter of 2024 and 59% in the first quarter of 2024.
Operating expenses in the first quarter of 2025 were
On a GAAP basis, the Company reported net income of
On a non-GAAP basis, the Company reported net income of
Nova will host a conference call today,
INTERNATIONAL Dial-in Number: 1-412-317-0519
At:
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
Replay Pin Number: 1180959
A replay will also be available for 90 days on Nova's website link at https://www.novami.com/investors/events/.
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.
This press release provides financial measures that exclude amortization of acquired intangible assets, inventory step-up, stock-based compensation expenses, acquisition related 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.
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
(Tables to Follow)
|
|
||
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
||
|
( |
||
|
|
||
|
|
As of |
|
|
|
|
|
|
ASSETS |
2025 |
2024 |
|
Current assets |
|
|
|
Cash and cash equivalents |
141,055 |
157,779 |
|
Short-term interest-bearing bank deposits |
211,709 |
211,877 |
|
Marketable securities |
189,085 |
216,910 |
|
Trade accounts receivable, net |
126,927 |
139,318 |
|
Inventories |
174,831 |
156,599 |
|
Other current assets |
32,137 |
19,466 |
|
Total current assets |
875,744 |
901,949 |
|
Non-current assets |
|
|
|
Marketable securities |
260,216 |
225,818 |
|
Interest-bearing bank deposits and restricted deposits |
10,096 |
7,847 |
|
Deferred tax assets |
32,945 |
31,639 |
|
Operating lease right-of-use assets |
50,923 |
51,193 |
|
Property plant and equipment, net |
88,922 |
81,746 |
|
Intangible assets, net |
48,935 |
31,458 |
|
|
84,910 |
48,317 |
|
Other long-term assets |
11,091 |
10,455 |
|
Total non-current assets |
588,038 |
488,473 |
|
Total assets |
1,463,782 |
1,390,422 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
Current liabilities |
|
|
|
Convertible senior notes, net |
180,854 |
180,564 |
|
Trade accounts payable |
55,192 |
59,578 |
|
Deferred revenues |
69,246 |
72,886 |
|
Operating lease current liabilities |
7,219 |
7,169 |
|
Other current liabilities |
89,270 |
68,033 |
|
Total current liabilities |
401,781 |
388,230 |
|
Non-current liabilities |
|
|
|
Operating lease long-term liabilities |
47,659 |
48,363 |
|
Long-term deferred tax liability |
14,017 |
8,495 |
|
Other long-term liabilities |
18,205 |
17,539 |
|
Total non-current liabilities |
79,881 |
74,397 |
|
Shareholders' equity |
982,120 |
927,795 |
|
Total liabilities and shareholders' equity |
1,463,782 |
1,390,422 |
|
|
||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||
|
( |
||
|
|
||
|
|
Three months ended |
|
|
|
2025 |
2024 |
|
Revenues: |
|
|
|
Products |
173,942 |
111,570 |
|
Services |
39,414 |
30,228 |
|
Total revenues |
213,356 |
141,798 |
|
Total cost of revenues |
91,053 |
58,537 |
|
Gross profit |
122,303 |
83,261 |
|
Operating expenses: |
|
|
|
Research and development, net |
33,234 |
24,752 |
|
Sales and marketing |
19,788 |
16,493 |
|
General and administrative |
6,049 |
4,796 |
|
Total operating expenses |
59,071 |
46,041 |
|
Operating income |
63,232 |
37,220 |
|
Financing income, net |
12,937 |
6,000 |
|
Income before taxes on income |
76,169 |
43,220 |
|
Income tax expenses |
11,346 |
6,360 |
|
Net income for the period |
64,823 |
36,860 |
|
|
|
|
|
Earnings per share: |
|
|
|
Basic |
2.22 |
1.27 |
|
Diluted |
2.03 |
1.15 |
|
|
|
|
|
Shares used in calculation of earnings per share |
|
|
|
Basic |
29,262 |
29,030 |
|
Diluted |
32,062 |
32,159 |
|
|
|||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||
|
( |
|||
|
|
|||
|
|
Three months ended |
||
|
|
2025 |
2024 |
|
|
Cash flows from operating activities: |
|
|
|
|
Net income |
64,823 |
36,860 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
Depreciation of property and equipment |
3,086 |
2,903 |
|
|
Amortization of intangible assets |
1,816 |
1,468 |
|
|
Amortization of premium and accretion of discount on marketable securities, net |
(1,543) |
(1,648) |
|
|
Amortization of debt issuance costs |
290 |
322 |
|
|
Share-based compensation |
6,376 |
6,372 |
|
|
Net effect of exchange rate fluctuation |
(3,877) |
1,257 |
|
|
Changes in assets and liabilities: |
|
|
|
|
Trade accounts receivable, net |
15,475 |
11,402 |
|
|
Inventories |
(9,099) |
(11,518) |
|
|
Other current and long-term assets |
(13,088) |
(3,482) |
|
|
Deferred tax, net |
(2,636) |
(766) |
|
|
Operating lease right-of-use assets |
478 |
1,044 |
|
|
Trade accounts payable |
(43) |
3,975 |
|
|
Deferred revenues |
(7,439) |
4,884 |
|
|
Operating lease liabilities |
(862) |
(1,566) |
|
|
Other current and long-term liabilities |
14,815 |
7,893 |
|
|
Accrued severance pay, net |
(23) |
38 |
|
|
Net cash provided by operating activities |
68,549 |
59,438 |
|
|
Cash flows from investment activities: |
|
|
|
|
Acquisition of subsidiary, net of acquired cash |
(51,697) |
- |
|
|
Change in short-term and long-term interest-bearing bank deposits |
(2,286) |
(38,259) |
|
|
Investment in marketable securities |
(82,270) |
(65,155) |
|
|
Proceeds from maturity of marketable securities |
79,068 |
57,249 |
|
|
Purchase of property and equipment |
(8,857) |
(2,768) |
|
|
Net cash used in investing activities |
(66,042) |
(48,933) |
|
|
Cash flows from financing activities: |
|
|
|
|
Purchases of treasury shares |
(20,002) |
- |
|
|
Net cash provided by financing activities |
(20,002) |
- |
|
|
Effect of exchange rate fluctuations on cash and cash equivalents |
771 |
27 |
|
|
Changes in cash and cash equivalents |
(16,724) |
10,532 |
|
|
Cash and cash equivalents -beginning of period |
157,779 |
107,574 |
|
|
Cash and cash equivalents - end of period |
141,055 |
118,106 |
|
|
|
|
|
|
|
|
||||
|
RECONCILIATION OF GAAP TO NON-GAAP RESULTS |
||||
|
( |
||||
|
|
||||
|
|
Three months ended |
|||
|
|
March
31, |
December
31, |
March
31, |
|
|
GAAP gross profit |
122,303 |
109,931 |
83,261 |
|
|
Stock-based compensation* |
1,847 |
1,805 |
1,763 |
|
|
Amortization of acquired intangible assets |
1,670 |
1,182 |
1,366 |
|
|
Acquisition related inventory step-up |
1,348 |
- |
- |
|
|
Non-GAAP gross profit |
127,168 |
112,918 |
86,390 |
|
|
GAAP gross margin as a percentage of revenues |
57 % |
56 % |
59 % |
|
|
Non-GAAP gross margin as a percentage of revenues |
60 % |
58 % |
61 % |
|
|
|
|
|
|
|
|
GAAP operating income |
63,232 |
55,471 |
37,220 |
|
|
Stock-based compensation* |
6,376 |
6,349 |
6,372 |
|
|
Acquisition related inventory step-up |
1,348 |
- |
- |
|
|
Acquisition related expenses |
859 |
917 |
- |
|
|
Amortization of acquired intangible assets |
1,816 |
1,267 |
1,468 |
|
|
Non-GAAP operating income |
73,631 |
64,004 |
45,060 |
|
|
GAAP operating margin as a percentage of revenues |
30 % |
28 % |
26 % |
|
|
Non-GAAP operating margin as a percentage of revenues |
35 % |
33 % |
32 % |
|
|
|
|
|
|
|
|
GAAP net income |
64,823 |
50,481 |
36,860 |
|
|
Stock-based compensation* |
6,376 |
6,349 |
6,372 |
|
|
Acquisition related inventory step-up |
1,348 |
- |
- |
|
|
Acquisition related expenses |
859 |
917 |
- |
|
|
Amortization of acquired intangible assets |
1,816 |
1,267 |
1,468 |
|
|
Amortization of debt issuance costs |
290 |
310 |
322 |
|
|
Revaluation of operating lease and intercompany loans |
(4,796) |
4,706 |
893 |
|
|
Tax effect of non-GAAP adjustments |
(758) |
(1,728) |
(1,303) |
|
|
Non-GAAP net income |
69,958 |
62,302 |
44,612 |
|
|
|
|
|
|
|
|
GAAP basic earnings per share |
2.22 |
1.72 |
1.27 |
|
|
Non-GAAP basic earnings per share |
2.39 |
2.13 |
1.54 |
|
|
|
|
|
|
|
|
GAAP diluted earnings per share |
2.03 |
1.58 |
1.15 |
|
|
Non-GAAP diluted earnings per share |
2.18 |
1.94 |
1.39 |
|
|
|
|
|
|
|
|
Shares used for calculation of earnings per share |
|
|
|
|
|
Basic |
29,262 |
29,304 |
29,030 |
|
|
Diluted |
32,062 |
32,062 |
32,159 |
|
|
|
|
|
|
|
|
* Stock-based compensation for the three months ended |
||||
|
|
||
|
SUPPLEMENTAL INFORMATION - RECONCILIATION OF SECOND QUARTER 2025
|
||
|
( |
||
|
|
||
|
|
Low |
High |
|
Estimated GAAP net income per diluted share |
1.70 |
1.88 |
|
Estimated non-GAAP items: |
|
|
|
Stock-based compensation |
0.19 |
0.19 |
|
Amortization of acquired intangible assets and inventory step-up |
0.11 |
0.11 |
|
Amortization of issuance costs |
0.01 |
0.01 |
|
Tax effect of non-GAAP adjustments |
(0.05) |
(0.05) |
|
Estimated non-GAAP net income per diluted share |
1.96 |
2.14 |
Company Contact:
Tel: +972-73-229-5760
E-mail - investors@novami.com
Nova website link - https://www.novami.com/
Investor Relations Contact:
Tel: +917-607-8654
E-mail - msegal@ms-ir.com
Logo - https://mma.prnewswire.com/media/1446151/Nova_Logo.jpg
View original content:https://www.prnewswire.com/news-releases/nova-reports-record-first-quarter-2025-financial-results-302449831.html
SOURCE Nova
