Nova Reports Record First Quarter 2025 Financial Results

Published: 2025-05-08 07:31:14 ET NVMI

Published on 05/08/2025 at 07:31

REHOVOT, Israel, May 8, 2025 /PRNewswire/ -- Nova (Nasdaq: NVMI) today announced financial results for the first quarter, the three-month period ended March 31, 2025.

First Quarter 2025 Highlights:

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

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.

"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."

Management provided an outlook for the second quarter, the period ending June 30, 2025. Based on current estimates, management expects:

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.

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/.

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 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)

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

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

32,159

* 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

Amortization of acquired intangible assets and inventory step-up

0.11

Amortization of issuance costs

0.01

Tax effect of non-GAAP adjustments

(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] 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

View original content:https://www.prnewswire.com/news-releases/nova-reports-record-first-quarter-2025-financial-results-302449831.html

SOURCE Nova