Nova Reports Fourth Quarter and Full Year 2021 Results
Nova (NASDAQ: NVMI) reported a record revenue of $121.5 million for Q4 2021, a 59% increase year-over-year, leading to full-year revenues of $416.1 million (up 54%). Q4 GAAP net income was $22.2 million ($0.73/share), up 55% year-over-year, while non-GAAP net income rose to $32.8 million ($1.08/share), an increase of 96%. The company anticipates Q1 2022 revenue between $122 million and $132 million, with diluted GAAP EPS of $0.78 to $0.96.
- Record quarterly revenue of $121.5 million, up 59% year over year.
- Full year revenue reached $416.1 million, increasing 54% from 2020.
- GAAP net income for Q4 was $22.2 million, an increase of 55% YoY.
- Non-GAAP net income for Q4 was $32.8 million, up 96% YoY.
- Expansion of offerings with the acquisition of Ancosys enhances growth potential.
- Operating expenses increased to $38.4 million in Q4 from $29.7 million in Q3.
- GAAP net income decreased from $30.3 million in Q3 to $22.2 million in Q4.
REHOVOT, Israel, Feb. 24, 2022 /PRNewswire/ -- Nova (Nasdaq: NVMI) today announced financial results for the fourth quarter and full year 2021.
Fourth Quarter 2021 Highlights:
- Record quarterly revenue of
$121.5 million , up59% year over year - GAAP net income of
$22.2 million , or$0.73 per diluted share, up55% year over year
on a per-share basis - Non-GAAP net income of
$32.8 million , or$1.08 per diluted share, up96% year over year on a per-share basis - Revenues recognized from multiple customers for Nova METRION®, a newly launched materials metrology solution
- VERAFLEX® IV selection with multiple orders by a leading global semiconductor manufacturer
- Record software revenues, led by Nova's advanced Nova FIT machine learning solution
Full Year 2021 Highlights:
- Record annual revenue of
$416.1 million , up54% year over year - GAAP net income of
$93.1 million , or$3.12 per diluted share, up89% year over year
on a per-share basis - Non-GAAP net income of
$114.7 million , or$3.85 per diluted share, up87% year over year
on a per-share basis
GAAP Results ($K)
Q4 2021 | Q3 2021 | Q4 2020 | FY 2021 | FY 2020 | |
Revenues | |||||
Net Income | |||||
Earnings per Diluted Share |
Non-GAAP Results ($K)
Q4 2021 | Q3 2021 | Q4 2020 | FY 2021 | FY 2020 | |
Net Income | |||||
Earnings per Diluted Share |
A reconciliation between GAAP operating results and non-GAAP operating results is provided following the financial statements that are part of this release. See also "Use of Non-GAAP Adjusted Financial Measures" section.
Management Comments
"We are very pleased with Nova's strong results for the fourth quarter, which conclude another record year with significant growth in both our product and service revenue. Against the backdrop of the continuous pandemic and its influence on the supply chain, Nova succeeded in outperforming the market, demonstrating the agility and efficiency of its operational model," commented Eitan Oppenhaim, President and Chief Executive Officer. "Our solid annual results underscore the competitive advantages and differentiated value in the marketplace. In addition to our growing organic engines, Nova expanded its offering this quarter with new advanced chemical metrology capabilities as part of the acquisition of ancosys, a leading German metrology supplier. This strategic transaction extends Nova's available markets and positions Nova for another growth year in 2022."
2022 First Quarter Financial Outlook
Management provided an outlook for the first quarter, the period ending March 31, 2022. Based on current estimates, management expects:
- $122 million to $132 million in revenue
$0.78 to$0.96 in diluted GAAP EPS$0.96 to$1.14 in diluted non-GAAP EPS
2021 Fourth Quarter Results
Total revenues for the fourth quarter of 2021 were
Gross margin in the fourth quarter of 2021 was
Operating expenses in the fourth quarter of 2021 were
On a GAAP basis, the Company reported net income of
On a non-GAAP basis, the Company reported net income of
2021 Full Year Results
Total revenues for 2021 were
Gross margin in 2021 was
Operating expenses in 2021 were
On a GAAP basis, the Company reported net income of
On a non-GAAP basis, the Company reported net income of
Conference Call Information
Nova will host a conference call today, February 24, 2022, at 8:30 a.m. Eastern Time, to discuss the 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: 1-855-327-6837
ISRAEL TOLL-FREE Dial-in Number: 1-809-458-327
INTERNATIONAL Dial-in Number: 1-631-891-4304
At:
8:30 a.m. Eastern Time
5:30 a.m. Pacific Time
3:30 p.m. Israel 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 February 24, 2022, at 11:30 a.m. Eastern Time to March 3, 2022, 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: 10017625
A replay will also be available for 90 days on Nova's website 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 at Nova's website link - https://www.novami.com/.
Nova is traded on Nasdaq & 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, acquisition related expenses, expense related to a transaction made by a financial institution without Company authorization, revaluation of operating lease liabilities, amortization of debt discount and issuance costs, tax effect of non-GAAP adjustment and taxes attributed to one-time elective tax settlement, 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 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: catastrophic events such as the outbreak of COVID-19; increased information technology security threats and sophisticated computer crime; foreign political and economic risks; changes in U.S. trade policies; inability to protect intellectual property; open source technology exposure; failure to compete effectively or to respond to the rapid technological changes; consolidation in our industry; difficulty to predict 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 to integrate current or future acquisitions; lengthy sales cycle and customer delays in orders; political, economic, and military instability in Israel; 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, 2020 filed with the Securities and Exchange Commission on March 1, 2021. 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.
Company Contact:
Dror David, Chief Financial Officer
Tel: +972-73-229-5760
E-mail - investors@novami.com
Nova website link - https://www.novami.com/
Investor Relations Contact:
Miri Segal MS-IR LLC
Tel: +917-607-8654
E-mail - msegal@ms-ir.com
NOVA LTD. | ||
As of December 31, | ||
ASSETS | 2021 | 2020 |
Current assets | ||
Cash and cash equivalents | 126,698 | 232,304 |
Short-term interest-bearing bank deposits | 221,897 | 191,567 |
Marketable securities | 61,568 | - |
Trade accounts receivable, net | 68,446 | 63,314 |
Inventories | 78,665 | 61,734 |
Other current assets | 9,242 | 9,782 |
Total current assets | 566,516 | 558,701 |
Non-current assets | ||
Marketable securities | 137,415 | - |
Interest-bearing bank deposits | 3,672 | 2,547 |
Restricted interest-bearing bank deposits | 1,600 | 1,476 |
Deferred tax assets | 6,161 | 2,869 |
Severance pay funds | 1,327 | 1,281 |
Operating lease right-of-use assets | 30,627 | 29,109 |
Property and equipment, net | 34,460 | 34,168 |
Intangible assets, net | 2,601 | 5,059 |
Goodwill | 20,114 | 20,114 |
Other long-term assets | 661 | 462 |
Total non-current assets | 238,638 | 97,085 |
Total assets | 805,154 | 655,786 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Current liabilities | ||
Convertible senior notes, net | 183,037 | - |
Trade accounts payable | 36,218 | 24,096 |
Deferred revenues | 15,338 | 4,717 |
Operating lease current liabilities | 4,452 | 3,703 |
Other current liabilities | 48,885 | 28,418 |
Total current liabilities | 287,930 | 60,934 |
Non-current liabilities | ||
Convertible senior notes, net | - | 178,808 |
Accrued severance pay | 3,686 | 3,719 |
Operating lease long-term liabilities | 33,450 | 31,905 |
Other long-term liabilities | 6,334 | 8,882 |
Total non-current liabilities | 43,470 | 223,314 |
Shareholders' equity | 473,754 | 371,538 |
Total liabilities and shareholders' equity | 805,154 | 655,786 |
NOVA LTD. | ||||
Three months ended | Year ended | |||
2021 | 2020 | 2021 | 2020 | |
Revenues: | ||||
Products | 99,898 | 61,741 | 337,026 | 209,320 |
Services | 21,623 | 14,562 | 79,087 | 60,076 |
Total revenues | 121,521 | 76,303 | 416,113 | 269,396 |
Cost of revenues | 53,272 | 33,980 | 178,752 | 116,473 |
Gross profit | 68,249 | 42,323 | 237,361 | 152,923 |
Operating expenses: | ||||
Research and development, net | 20,140 | 15,753 | 65,857 | 53,015 |
Sales and marketing | 11,219 | 8,089 | 39,336 | 29,321 |
General and administrative | 6,262 | 1,009 | 17,324 | 12,514 |
Amortization of intangible assets | 735 | 626 | 2,458 | 2,503 |
Total operating expenses | 38,356 | 25,477 | 124,975 | 97,353 |
Operating income | 29,893 | 16,846 | 112,386 | 55,570 |
Financing income (expense), net | (1,518) | (1,335) | (3,133) | 926 |
Income before taxes on income | 28,375 | 15,511 | 109,253 | 56,496 |
Income tax expenses | 6,149 | 1,854 | 16,152 | 8,589 |
Net income for the period | 22,226 | 13,657 | 93,101 | 47,907 |
Earnings per share: | ||||
Basic | 0.78 | 0.49 | 3.28 | 1.71 |
Diluted | 0.73 | 0.47 | 3.12 | 1.65 |
Shares used in calculation of earnings per share | ||||
Basic | 28,539 | 28,146 | 28,372 | 28,097 |
Diluted | 30,285 | 28,999 | 29,816 | 28,950 |
NOVA LTD. | ||||
Three months ended December 31, |
Year ended | |||
2021 | 2020 | 2021 | 2020 | |
Cash flows from operating activities: | ||||
Net income | 22,226 | 13,657 | 93,101 | 47,907 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation of property and equipment | 1,681 | 1,572 | 6,475 | 5,875 |
Amortization of intangible assets | 735 | 626 | 2,458 | 2,503 |
Amortization of premium and accretion of discount on marketable securities, net | 855 | - | 1,708 | - |
Amortization of debt discount and issuance costs | 1,075 | 868 | 4,229 | 868 |
Share-based compensation | 3,496 | 2,231 | 10,488 | 6,949 |
Net effect of exchange rate fluctuation | (694) | (1,187) | (745) | (1,584) |
Changes in assets and liabilities: | ||||
Trade accounts receivables, net | (3,816) | (22,217) | (5,132) | (11,711) |
Inventories | (5,964) | (1,219) | (18,457) | (16,271) |
Other current and long-term assets | 1,076 | 1,655 | 192 | 6,878 |
Deferred tax assets, net | (741) | 535 | (2,989) | (193) |
Operating lease right-of-use assets | 489 | 395 | 1,680 | 1,351 |
Trade accounts payables | 6,799 | 1,228 | 11,697 | 3,255 |
Deferred revenues | (16,572) | 926 | 10,621 | 2,461 |
Operating lease liabilities | 164 | 1,346 | (904) | 91 |
Other current and long-term liabilities | 9,587 | 5,898 | 17,919 | 11,520 |
Accrued severance pay, net | (133) | 162 | (79) | 354 |
Net cash provided by operating activities | 20,263 | 6,476 | 132,262 | 60,253 |
Cash flows from investment activities: | ||||
Change in short-term and long-term interest-bearing bank deposits | 37,223 | 10,125 | (31,456) | (36,016) |
Investment in marketable securities | (6,364) | - | (215,091) | - |
Proceed from maturities of marketable securities | 5,141 | - | 12,862 | - |
Purchase of property and equipment | (2,250) | (1,570) | (4,816) | (6,443) |
Net cash provided by (used in) investing activities | 33,750 | 8,555 | (238,501) | (42,459) |
Cash flows from financing activities: | ||||
Proceeds from the issuance of convertible senior notes, net of issuance costs | - | 193,588 | - | 193,588 |
Purchases of treasury shares | - | (10,000) | - | (12,549) |
Proceeds from exercise of options | - | - | 11 | 367 |
Net cash provided by financing activities | - | 183,588 | 11 | 181,406 |
Effect of exchange rate fluctuations on cash and cash equivalents | 558 | 972 | 622 | 1,356 |
Increase (decrease) in cash and cash equivalents | 54,571 | 199,591 | (105,606) | 200,556 |
Cash and cash equivalents - beginning of period | 72,127 | 32,713 | 232,304 | 31,748 |
Cash and cash equivalents - end of period | 126,698 | 232,304 | 126,698 | 232,304 |
NOVA LTD. | ||||
Three months ended | ||||
December 31, | September 30, | December 31, | ||
GAAP gross profit | 68,249 | 65,238 | 42,323 | |
Stock-based compensation* | 803 | 557 | 415 | |
Non-GAAP gross profit | 69,052 | 65,795 | 42,738 | |
GAAP gross margin as a percentage of revenues | ||||
Non-GAAP gross margin as a percentage of revenues | ||||
GAAP operating income | 29,893 | 35,526 | 16,846 | |
Stock-based compensation* | 3,496 | 2,642 | 2,231 | |
Acquisition related expenses | 999 | - | - | |
Amortization of acquired intangible assets | 735 | 574 | 626 | |
Income related to a transaction made by a financial institution without Company authorization | - | - | (2,850) | |
Non-GAAP operating income | 35,123 | 38,742 | 16,853 | |
GAAP operating margin as a percentage of revenues | ||||
Non-GAAP operating margin as a percentage of revenues | ||||
GAAP net income | 22,226 | 30,335 | 13,657 | |
Stock-based compensation* | 3,496 | 2,642 | 2,231 | |
Acquisition related expenses | 999 | - | - | |
Amortization of acquired intangible assets | 735 | 574 | 626 | |
Amortization of debt discount and issuance costs | 1,075 | 1,069 | 868 | |
Income related to a transaction made by a financial institution without Company authorization | - | - | (2,850) | |
Revaluation of operating lease liabilities | 907 | 217 | 1,364 | |
Tax effect of non-GAAP adjustments | (402) | (291) | (24) | |
Taxes attributed to one-time elective tax settlement | 3,716 | - | - | |
Non-GAAP net income | 32,752 | 34,546 | 15,872 | |
GAAP basic earnings per share | 0.78 | 1.07 | 0.49 | |
Non-GAAP basic earnings per share | 1.15 | 1.22 | 0.56 | |
GAAP diluted earnings per share | 0.73 | 1.02 | 0.47 | |
Non-GAAP diluted earnings per share | 1.08 | 1.16 | 0.55 | |
Shares used for calculation of earnings per share | ||||
Basic | 28,539 | 28,429 | 28,146 | |
Diluted | 30,285 | 29,858 | 28,999 | |
* Stock-based compensation for the three months ended December 31, 2021, included in – Cost of revenues - 803; Research and development, net – 1,315; Sales and marketing – 717; General and administrative – 661
NOVA LTD. | ||
Year ended December 31, | ||
2021 | 2020 | |
GAAP gross profit | 237,361 | 152,923 |
Stock-based compensation* | 2,160 | 1,364 |
Non-GAAP gross profit | 239,521 | 154,287 |
GAAP gross margin as a percentage of revenues | ||
Non-GAAP gross margin as a percentage of revenues | ||
GAAP operating income | 112,386 | 55,570 |
Stock-based compensation* | 10,488 | 6,949 |
Acquisition related expenses | 999 | - |
Amortization of acquired intangible assets | 2,458 | 2,503 |
Expense related to a transaction made by a financial institution without Company authorization | - | 150 |
Non-GAAP operating income | 126,331 | 65,172 |
GAAP operating margin as a percentage of revenues | ||
Non-GAAP operating margin as a percentage of revenues | ||
GAAP net income | 93,101 | 47,907 |
Stock-based compensation* | 10,488 | 6,949 |
Acquisition related expenses | 999 | - |
Amortization of acquired intangible assets | 2,458 | 2,503 |
Amortization of debt discount and issuance costs | 4,229 | 868 |
Expense related to a transaction made by a financial institution without Company authorization | - | 150 |
Revaluation of operating lease liabilities | 818 | 2,053 |
Tax effect of non-GAAP adjustments | (1,140) | (792) |
Taxes attributed to one-time elective tax settlement | 3,716 | - |
Non-GAAP net income | 114,669 | 59,638 |
GAAP basic earnings per share | 3.28 | 1.71 |
Non-GAAP basic earnings per share | 4.04 | 2.12 |
GAAP diluted earnings per share | 3.12 | 1.65 |
Non-GAAP diluted earnings per share | 3.85 | 2.06 |
Shares used for calculation of earnings per share | ||
Basic | 28,372 | 28,097 |
Diluted | 29,816 | 28,950 |
* Stock-based compensation for the year ended December 31, 2021, included in – Cost of revenues - 2,160; Research and development, net – 3,994; Sales and marketing – 2,221; General and administrative – 2,113
NOVA LTD. | ||
Low | High | |
Estimated GAAP net income per diluted share | 0.78 | 0.96 |
Estimated non-GAAP items: | ||
Stock-based compensation | 0.12 | 0.12 |
Acquisition related expenses | 0.02 | 0.02 |
Amortization of acquired intangible assets | 0.06 | 0.06 |
Amortization of issuance costs | 0.01 | 0.01 |
Tax effect of non-GAAP adjustments | (0.03) | (0.03) |
Estimated non-GAAP net income per diluted share | 0.96 | 1.14 |
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SOURCE Nova
