Nova
A Fusion Of Technology And Innovation To Automate Business Processes

Nova Reports First Quarter 2024 Financial Results

Tuesday, May 21, 2024

REHOVOT, Israel,- Nova (Nasdaq: NVMI) today announced financial results for the first quarter, the three-month period ended March 31, 2024.



First Quarter 2024 Highlights:



Quarterly revenue of $141.8 million, up 6% QoQ, exceeding the high end of the Company guidance of $140 million.

GAAP net income of $36.9 million, or $1.15 per diluted share, down 4% QoQ, exceeding the high end of the Company guidance of $1.12.

Record Non-GAAP net income of $44.6 million, or $1.39 per diluted share, up 2% QoQ, exceeding the high end of the Company guidance of $1.33.

Record operating and free cash flow.

Continued adoption of Nova's innovative portfolio by leading customers for cutting-edge applications in logic, memory, and advanced packaging.

Service business continued to expand, growing 13% year over year, driven by increasing utilization rates and tool life extensions.

Memory product revenue share increased to 40%, driven by advanced DRAM and HBM demand.

Management Comments



"Our results this quarter exceeded the high end of the guidance we provided in revenue and profit, driven by increased demand for our state-of-the-art portfolio, and supported by a robust operational model," said Gaby Waisman, President and CEO. "Our performance was bolstered by diverse exposure to opportunities across markets, territories, customers, and technologies, which include the transition to Gate-All-Around, rising need for advanced packaging solutions, and a healthy demand for mature nodes. Our Chemical Metrology division consistently delivers solid results, penetrating multiple HBM customers. As we anticipate the transition to the most advanced technology nodes, we saw an increase in market traction for our new technologies, Elipson and Metrion, with multiple evaluations underway at various customers."



2024 Second Quarter Financial Outlook



Management provided an outlook for the second quarter, the period ending June 30, 2024. Based on current estimates, management expects:



$144 million to $152 million in revenue

$1.07 to $1.21 in diluted GAAP EPS

$1.27 to $1.42 in diluted non-GAAP EPS

2024 First Quarter Results



Total revenues for the first quarter of 2024 were $141.8 million, an increase of 6% compared with the fourth quarter of 2023 and an increase of 7% compared with the first quarter of 2023.



Gross margin in the first quarter of 2024 was 59%, compared with 55% in the fourth quarter of 2023 and 58% in the first quarter of 2023.



Operating expenses in the first quarter of 2024 were $46.0 million, compared with $40.4 million in the fourth quarter of 2023 and $41.5 million in the first quarter of 2023.



On a GAAP basis, the Company reported net income of $36.9 million, or $1.15 per diluted share, in the first quarter of 2024. This is compared with net income of $38.1 million, or $1.20 per diluted share, in the fourth quarter of 2023, and $34.6 million, or $1.10 per diluted share, in the first quarter of 2023.



On a non-GAAP basis, the Company reported net income of $44.6 million, or $1.39 per diluted share, in the first quarter of 2024. This is compared with net income of $43.6 million, or $1.36 per diluted share, in the fourth quarter of 2023, and $39.1 million, or $1.23 per diluted share, in the first quarter of 2023.



Conference Call Information



Nova will host a conference call today, May 09, 2024, at 8:30 a.m. Eastern Time, to discuss the Company's first 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.