Nova Measuring Instruments Ltd. (NASDAQ:NVMI) Q2 2018 Earnings Conference Call - Final Transcript
Aug 01, 2018 • 09:00 am ET
Welcome to the Nova Measuring Instruments Limited Second Quarter 2018 Results Conference Call. Today's conference is being recorded.
At this time, I'd like to turn the conference over to Miri Segal of MS-IR.
I would like to welcome all of you to Nova Measuring Instruments Second Quarter 2018 Financial Results Conference Call. With us on the line today are Mr. Eitan Oppenhaim, President and CEO; and Mr. Dror David, CFO. (Forward-Looking Cautionary Statements)
If you have not received a copy of the release, please view it in the IR section of the company's website. Eitan will begin the call with a business update, followed by Dror with an overview of the financials. We will then open the call for the question-and-answer session.
I'll now hand over the call to Mr. Eitan Oppenhaim, Nova's President and CEO. Eitan, please go ahead.
I'd like to thank you all for joining our second quarter 2018 financial results conference call. I will start the call today by speaking briefly about our second quarter results and performance highlights. I will then conclude by providing guidance for the third quarter of 2018. Following my commentary, Dror will review the quarter's financial results in detail. We are very pleased with the second quarter results, which reinforce our continuous efforts to execute on our strategic growth plan to diversify our customer base and technology offerings.
Revenues for the quarter were at the higher end of our guidance, with GAAP and non-GAAP profits exceeding our guidance. This result highlights the progress we are making with our dimensional and materials metrology solutions across the different semiconductor fabrication segments with notable strengths in memory. Our growing value creation, specifically in light of the current business environment, is emphasized by our increasing position in the front-end semiconductor supply chain.
Our effort to expose the company to the main, robust industry growth engine are well reflected in our quarterly results with solid achievements in memory, China, advanced 5 and 7 nanometer logic and new emerging process control applications. As a result of our performance in the second quarter, our revenues for the first half of 2018 represent approximately 13% growth year-over-year and align with our target to continue our annual growth trajectory in 2018 as well. As we detailed in length during our Investor Day last month, we continue to effectively materialize our strategic vision to expand our markets, customers and technologies. This is reflected in our balanced revenue mix, which was driven by significant inroads we are making in the memory space.
Memory customers contributed approximately 50% to our overall product revenue. Our relentless efforts to enhance our partnership with leading customers yielded five large customers this quarter, three of which are leading memory providers in Korea and China. This unique mix expand our opportunity base for 2019, when both sectors should return to expected spending levels. We are very encouraged by this progress as the company continues to achieve solid results despite the current business environment.
Notably, in 2014, the company's revenue