Nova announces 11% revenue increase, positive cash flow in Q3 2007
(Business News, 13 Nov 2007 )
Nova Measuring Instruments Ltd, provider of stand-alone metrology and integrated metrology solutions to the semiconductor process control market, has reported its results for the third quarter of 2007. Total revenues increased 11% to $13.9 million, compared to $12.5 million reported for the third quarter of 2006. Revenues decreased sequentially from $14.8 million reported for the second quarter of 2007.
During the third quarter, the company signed an agreement to license a few of its patents. Revenues in the third quarter included $0.8 million from IP license payments, net of legal fees and expenses.
Gross margin for the third quarter of 2007 was 38%, including a $0.3 million inventory write-off related to the Hypernex acquisition. Excluding the inventory write-off, gross margin in third quarter was 41%, the same as the comparable period a year ago, and compared with 46% for the second quarter of 2007. Gross margin declined sequentially mainly due to a less favorable product mix and costs associated with recent penetrations into new customers.
Operating expenses in the third quarter of 2007 were $9.2 million, including a non-cash impairment charge of $3.8 million related to the assets and liabilities acquired in the Hypernex transaction. Excluding the impairment charge, operating expenses were $5.4 million for the third quarter of 2007, compared with $6.0 million in the third quarter of 2006, and $5.9 million in the second quarter of 2007. The Company has also closed its research and development facility in State College, Pennsylvania, which was part of the Hypernex acquisition, following the integration of the activities to its headquarters in Israel. This move is expected to result in cost savings of $1.5 million in 2008.
The company reported a $3.7 million net loss in the third quarter of 2007, or ($0.19) per share, which included $4.1 million in non-cash charges for inventory write-off and impairment charges.
Net income excluding non-cash charges, was approximately $0.5 million, or $0.02 per diluted share for the third quarter of 2007, compared with a net loss of $0.8 million, or ($0.05) per share for the third quarter of 2006, and compared with a net income of $1.1 million, or $0.05 per diluted share for the second quarter of 2007.
Cash reserves at the end of the third quarter of 2007 were $20.5 million, an increase of $0.1 million compared to the end of second quarter of 2007.
