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Nova Reports Record First Quarter 2025 Financial Results

1. Nova achieved record revenue of $213.4 million, up 50% YoY. 2. Net income rose to $64.8 million, up 77% YoY. 3. Acquisition of Sentronics expands Nova's metrology capabilities. 4. Strong sales driven by Gate-All-Around and advanced packaging demand. 5. Second quarter revenue outlook is between $210 million and $220 million.

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FAQ

Why Very Bullish?

The significant revenue and profit growth indicate strong demand for NVMI's products, mirroring positive CEO sentiments and successful expansion strategies which typically lead to stock price increases. Historical context shows similar earnings beats have often propelled shares upward.

How important is it?

The substantial revenue growth and acquisition are critical factors in determining future growth potential, making this article significantly relevant to investors considering NVMI's market position.

Why Short Term?

The immediate financial results and positive guidance for the next quarter are likely to influence investor sentiment quickly, providing a short-term boost in stock price as investor focus shifts to robust performance metrics.

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, /PRNewswire/ -- Nova (Nasdaq: NVMI) today announced financial results for the first quarter, the three-month period ended March 31, 2025. 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. GAAP Results (K) Q1 2025 Q4 2024 Q1 2024 Revenues $213,356 $194,766 $141,798 Net Income $64,823 $50,481 $36,860 Earnings per Diluted Share $2.03 $1.58 $1.15 Non-GAAP Results (K) Q1 2025 Q4 2024 Q1 2024 Net Income $69,958 $62,302 $44,612 Earnings per Diluted Share $2.18 $1.94 $1.39 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 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 Gaby Waisman, President and CEO.  "AI demand is driving growth in GAA and advanced packaging, aligning perfectly with Nova's multiple growth engines and agile business model. We continue to effectively adapt in a challenging macro environment, while continuing to advance our product strategy, innovate, and deliver on our long-term growth objectives." 2025 Second Quarter Financial Outlook Management provided an outlook for the second quarter, the period ending June 30, 2025. Based on current estimates, management expects: $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 2025 First Quarter Results 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 $59.1 million, compared with $54.5 million in the fourth quarter of 2024 and $46.0 million in the first quarter of 2024. On a GAAP basis, the Company reported net income of $64.8 million, or $2.03 per diluted share, in the first quarter of 2025. This is compared with net income of $50.5 million, or $1.58 per diluted share, in the fourth quarter of 2024, and $36.9 million, or $1.15 per diluted share, in the first quarter of 2024. On a non-GAAP basis, the Company reported net income of $70.0 million, or $2.18 per diluted share, in the first quarter of 2025. This is compared with net income of $62.3 million, or $1.94 per diluted share, in the fourth quarter of 2024, and $44.6 million, or $1.39 per diluted share, in the first quarter of 2024. Conference Call Information Nova will host a conference call today, May 8, 2025, at 8:30 a.m. Eastern Time, to discuss the Company's first quarter 2025 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 May 8, 2025, at 11:30 a.m. Eastern Time until May 15, 2025, 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: 1180959 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, 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. 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, 2024, filed with the Securities and Exchange Commission on February 20, 2025. 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 March 31, December 31, 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 Goodwill 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 NOVA LTD. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  (U.S. dollars in thousands, except per share data) - (Unaudited) Three months ended March 31, 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 (in thousands): Basic 29,262 29,030 Diluted 32,062 32,159 NOVA LTD. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (U.S. dollars in thousands) - (Unaudited) Three months ended March 31, 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 NOVA LTD. RECONCILIATION OF GAAP TO NON-GAAP RESULTS (U.S. dollars in thousands, except percentage and per share data) - (Unaudited) Three months ended March 31, 2025 December 31, 2024 March 31, 2024 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(in thousands): Basic 29,262 29,304 29,030 Diluted 32,062 32,062 32,159 * Stock-based compensation for the three months ended March 31, 2025 included in - Cost of revenues - 1,847; Research and development, net - 2,728; Sales and marketing - 1,259; General and administrative - 542. NOVA LTD. SUPPLEMENTAL INFORMATION - RECONCILIATION OF SECOND QUARTER 2025GAAP TO NON-GAAP GUIDANCE (U.S. dollars) (Unaudited) 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:Guy Kizner, Chief Financial OfficerTel: +972-73-229-5760E-mail - [email protected]Nova website link - https://www.novami.com/  Investor Relations Contact:Miri Segal MS-IR LLCTel: +917-607-8654E-mail - [email protected]  Logo - https://mma.prnewswire.com/media/1446151/Nova_Logo.jpg SOURCE Nova WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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