Nova Measuring Instruments Ltd. (NASDAQ:NVMI) Q2 2019 Earnings Conference Call - Final Transcript

Aug 07, 2019 • 09:00 am ET

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Nova Measuring Instruments Ltd. (NASDAQ:NVMI) Q2 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day and welcome to the Nova Measuring Instruments Second Quarter 2019 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. Please go ahead.

Executive
Miri Segal

Thank you, operator, and good day to everybody. I would like to welcome all of you to Nova's second quarter 2019 financial results conference call. With us on the line today are Mr. Eitan Oppenhaim, President and CEO; and Mr. Dror David, CFO.

Before we begin, may I remind our listeners that certain information provided on this call may contain forward-looking statements. And the Safe Harbor statements outlined in today's earnings release also pertains to this call. If you have not received a copy of the release, please view it in the Investor Relations 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 Oppenheim, Nova's President and CEO. Eitan, please go ahead.

Executive
Eitan Oppenhaim

Thank you, Miri, and thank you all for joining our second quarter financial results conference call. I will start the call today by speaking about our quarterly results and performance highlights and conclude by providing guidance for the third quarter of 2019. Following my commentary, Dror will review the quarter's financial results in detail.

In the second quarter, Nova delivered results towards the high end of the guidance range, reflecting our focus therefore to execute our plan in a volatile semiconductor environment. We were able to deliver these results due to the efforts we are making to strengthen our position with leading customers, while efficiently leveraging the operation model we have built to keep firm focus on technical innovation even in a challenging business environment.

We remained committed to the development of our new growth engine, which will continue differentiating our offering, expanding our addressable market and enabling our long-term growth. The results for this quarter are also evidence of the progress we have made in diversifying our exposure to different semiconductor segments, multiple customers and new evolving application in both materials and dimensional process control.

From a business perspective, our performance was highlighted by a balanced customer mix, which included four large customers that contributed more than 10% each to our product revenues. I would like to emphasize two major achievements which are embedded in this outstanding mix. Firstly, the major inroads we are making with the large global memory customer in both NAND and DRAM. And second, a major win in one of the biggest foundries in China. Both milestones reflect the traction our unique portfolio is gaining in the market due to the synergy we have built between the different technologies we offer to our customers.

Following the press release in April when we announced the selection of Nova's VeraFlex in-line materials metrology solution by a global leading memory customer. We are pleased to announce