Nova pushes through $100m revenue threshold

The company predicts revenue growth but flat net profit for the first quarter of 2012.

Metrology solutions developer Nova Measuring Instruments Ltd. (Nasdaq:NVMI; TASE:NVMI) reported full-year revenue and profit growth in 2011, crossing the $100 million turnover threshold. However, fourth quarter revenue and profits fell. Nonetheless, the company beat the analysts' consensus for both periods. The company predicts revenue growth but flat net profit for the first quarter of 2012.

Full year revenue rose to $102.8 million from $86.6 million in 2010. GAAP-based net profit rose to $28.1 million ($1.04 per share) in 2011 from $22.2 million in 2010, and non-GAAP net profit rose to $27.1 million ($1.00 per share) from $22.9 million. The company beat the analysts' consensus of non-GAAP earnings per share of $0.88 on $101.5 million revenue.

Fourth quarter revenue fell 29% to $19.2 million from $25.8 million for the corresponding quarter of 2010. GAAP-based net profit fell to $5 million ($0.18 per share) for the fourth quarter from $7.5 million for the corresponding quarter, and non-GAAP net profit $3 million ($0.11 per share) from $7.8 million. The company beat the analysts' consensus of non-GAAP earnings per share of $0.02 on $17.5 million revenue.

In its guidance for the first quarter of 2012, Nova expects non-GAAP earnings per share of $0.07-0.13 on $20.5-$23 million revenue.

Although cash flow from operations fell to $25.1 million in 2011 from $25.8 million in 2010, cash reserves rose by $25.5 million during 2011 to $87.1 million at the end of the year.

Nova president and CEO Gabi Seligsohn said, 2011 was the best year in our history. It was a third consecutive year of outgrowing the industry, a year in which we crossed the $100 million revenue mark for the first time." He added that bookings were picking up, boosting the company's orders backlog and visibility for 2012.

Seligsohn added, “Looking at the opportunities that lie ahead, we are planning to invest the necessary resources to continue and enable our long term growth trajectories. The focus over the last few years on aggressive product development, operational excellence and strong customer presence is what brought us to where we stand today. This focus will continue into the future as we adapt our strategy to the company size we have become, in order to support our long term growth plans."

Nova's share price rose 3.8% by midday on the TASE today to NIS 32.97, after rising 2.9% on Nasdaq yesterday to $9.01, giving a market cap of $237 million.

Published by Globes [online], Israel business news - www.globes-online.com - on February 15, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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