Nova Measuring Instruments CEO Discusses Q3 2010 Results - Earnings Call Transcript
Call Start: 10:00
Call End: 10:43
Nova Measuring Instruments Ltd. (
)
Q3 2010 Earnings Conference Call
November 2, 2010 10:00 a.m. ET
Executives
Kenny Green – CCG of Investor Relations
Gabi Seligsohn – President and CEO
Dror David - CFO
Analysts
Edwin Mok – Needham & Company
Arnab Chanda – Roth Capital Partners
Robert Katz – Senvest International
Greg Weaver - Invicta Capital
George Borayma - Private Investor
Presentation
Operator
Executives
Good day, ladies and gentlemen and Gabi Seligsohn - President and CEO
Dror David - CFO
Analysts
Edwin Mok - Needham & Company
Arnab Chanda - Roth Capital
Robert Katz – Senvest
Compare to:
Previous Statements by NVMI
»
Nova Measuring Instruments Ltd.Q2 2010 Earnings Call Transcript
»
Nova Measuring Instruments Ltd. Q1 2010 Earnings Call Transcript
»
Nova Measuring Instruments Ltd. Q4 2009 Earnings Call Transcript
»
Nova Measuring Instruments Ltd. Q2 2009 Earnings Call Transcript
welcome to the Nova Measuring Instruments Third Quarter Results Conference Call. For your information, today’s conference is being recorded. At this time I would like to turn the conference over to your host today, Mr. Kenny Green, CCG of Investor Relations. Please go ahead, Sir.
Kenny Green
Thank you, operator and good day to everybody. I’d like to welcome all of you to Nova Measuring Instruments third quarter 2010 results conference call and presentation and thank management for hosting this call. With us on the line today are Mr. Gabi Seligsohn, President and Chief Executive Officer and Mr. Dror David, Chief Financial Officer. I'd like to draw your attention to the presentation that accompanies today's call. The presentation can be accessed and downloaded from the link on Nova's website at www.nova.co.il.
Before we begin, may I remind our listeners that certain information provided on this call may contain forward-looking statements and the Safe Harbor statement outlined in today's earnings release also pertains to this call. If you have not received a copy of the press release, please view it in the Investor Relations, on news section on the company's website at www.nova.co.il.
In addition, during this call, certain non-GAAP financial measures will be discussed. These are used by management to make strategic decisions, forecast future results and evaluate the company's current performance. Management believes that the presentation of non-GAAP financial measures is useful to investors' understanding and assessment of the company's ongoing core operations and prospects for the future.
Gabi will begin the call with a business update followed by Dror with an overview of the third quarter financials. We will then follow with the question-and-answer session. I would now like to hand the call over to Mr. Gabi Seligsohn , Nova’s President and CEO. Gabi, go ahead please.
Gabi Seligsohn
Thank you, Kenny and thank you everyone for joining today’s call. Q3 was another excellent quarter with record performance achieved in all aspects of our business. Bookings during the quarter were at record high levels providing us a solid revenue foundation for the fourth quarter and well into the first quarter of 2011. As previously mentioned, the extended use of our products by leading manufacturers has deepened our partnerships with them and we are now part of a larger capital expenditure plan. This state of affairs provides us with better visibility, enables operational flexibility and allows us to meet challenging lead-time requirements.
During the third quarter, we continued to execute on our strategy of expanding our customer base with a standalone, metrology product line, adding two new Foundry customers and one new Memory customer. This trend has continued throughout the year and provides an excellent platform for our future growth next year, which I will discuss later in today's call.
On the Integrated Metrology front, we continue to enjoy leading market share and record level, business volumes with many fabs ordering and installing dozens of tools per fab. Given the significant challenges experienced by our customers as they move to new technology nodes, the extent to which Integrated Metrology is being deployed is higher than it has ever been. The reason for this is that our Integrated Metrology tools allow customers to control their process much more tightly when combining our tools with process control software. Customers have come to rely so heavily on Integrated Metrology that process tools equipped with onboard metrology will no longer run without them.
With three-quarters of the year gone, it is clear that Nova's business has scaled to a different level. Our strategy continues to focus on high value products, which are able to generate favorable margins and enable us to continue and present profitable growth. Today towards the end of 2010 we are a much stronger company. Our business has significantly scaled upwards. Our addressable markets have expanded and allowed us to occupy a much wider portion of the wafer fabrication process. Our market share is expanding rapidly and the technology we use is so disruptive that in many cases it is altering the way process control is dealt with. We have a very strong balance sheet, which provides us with the financial flexibility to further scale our business, and most importantly we have built a seasoned global management team, which gives me great confidence in our ability to carry the company towards further growth.
In addition to paying attention to excellent execution quarter after quarter, we understand it's vital to also plan long-term. The challenges to identify opportunities to reinvest profits in high return projects that will fuel continued profitable growth. Our recent performance and positive outlook is due in large part to our determination to maintain our R&D commitment at a relatively high level during the down cycle. As challenges evolve continuously as the market matures, new initiatives are required in order to be able to capitalize on opportunities. In the past year we have spent time and effort assessing opportunities as part of an overall strategy to grow the company to a much larger scale. Our approach to the issue has been simple.
Read the rest of this transcript for free on seekingalpha.com
