Nova Measuring Instruments Ltd. (NASDAQ:NVMI) Q3 2019 Earnings Conference Call Transcript

Nov 07, 2019 • 09:00 am ET

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Nova Measuring Instruments Ltd. (NASDAQ:NVMI) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, and welcome to the Nova's Third Quarter 2019 Results Conference Call. [Operator Instructions]

At this time, I would 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 third 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 statement 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 the business update, followed by Dror with an overview of the financials. We will then open the call for the question-and-answer session.

I will now hand over the call to Mr. Eitan Oppenhaim, Nova's President and CEO. Eitan, please go ahead.

Executive
Eitan Oppenhaim

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

In the third quarter, Nova delivered solid financial performance with revenue reaching the high-end of the guidance and profitability outperforming the EPS guidance range. Our results for the third quarter along with the guidance for the fourth quarter demonstrate our strong execution capabilities and the continued progress we are making on our strategic priority.

Although we are still facing some industry headwinds in few segments during 2019, we continued strengthening our position in our served markets as well as expanding our reach to new emerging markets. We are pleased with these results, which reflect the efforts we are making to leverage our operational model to persistently continue funding new technology innovations during different industry investment cycle.

We remain committed to the development of our growth engine, which will position us to outperform the market and will enable our long-term growth. Our continuous efforts to balance our customers' exposure, which now includes leading customers from different segments have strengthened the Company's position and its resiliency to various market scenarios. Our position today enables us to better compete and will allow us to capitalize on more opportunities when the market is fully recovered.

From a business perspective, our performance this quarter drove to a balanced revenue mix, which reflects our evolving position in memory and our strong position in foundry. Our business results highlight several notable achievements. First, following the growing demand for logic devices mainly for emerging solutions like 5G and AI, we saw growing demand for complete dimensional and materials metrology portfolio.

Revenues from the world's leading foundry for its 7-nanometer and 5-nanometer expedited ramp-up increased this