This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Nova Measuring Instruments' CEO Discusses Q3 2011 Results - Earnings Call Transcript

Stock quotes in this article: NVMI

Gabi will begin the call with a business update followed by Dror with an overview of the financials. We will then follow with a question- and-answer session. I’ll now hand the call over to Mr. Gabi Seligsohn, Nova’s President and CEO. Gabi, go ahead please.

Gabi Seligsohn – President and Chief Executive Officer

Thank you, Kenny, and hello, everyone and welcome to our third quarter of 2011 earnings conference call. During the third quarter, we continued to demonstrate solid financial performance with significant net income and gross margins, both within our long-term financial model. We also continued to accumulate positive cash flow of close to $6 million, bringing our overall cash position to $84 million at the end of the quarter. Our penetration efforts continued to bear fruit during the quarter, as we announced having won yet another tool selection for the 2X nanometer technology node in a leading foundry. Since the beginning of the year, we’ve seen a significant shift by our leading edge customers in the direction of the 2X nanometer technology node. Three of our foundry customers and two memory customers have taken both stand-alone and integrated metrology equipment from us to support their transition to the 2X node.

Looking at the first three quarters of the year, more than 50% of our revenues have come from this technology node and we expect that number to continue and climb as we move into 2012, given capacity insufficiencies at the highest levels, both in foundry and memory segments. During the quarter, we continued to ship more of our latest stand-alone metrology product, the Nova T600 and it is now installed at four different customer sites, solving the industry’s most complex applications. As planned, we were excited to meet our target and ship our first stand-alone metrology tool for the 3-D interconnect process to one of our leading foundry customers and are preparing to ship to a second customer in the near future. We are convinced that this new tool and technology that we have developed internally provides us with a competitive advantage and lays foundation for significant growth in the future, as more players in the industry become active in implementing and preparing for the move to 3-D packaging.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,804.71 -238.19 -1.40%
S&P 500 1,946.16 -26.13 -1.32%
NASDAQ 4,422.0850 -71.3050 -1.59%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs