Nova Measuring Instruments Ltd. (NASDAQ:NVMI) Q4 2019 Earnings Conference Call - Final Transcript

Feb 13, 2020 • 09:00 am ET

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Nova Measuring Instruments Ltd. (NASDAQ:NVMI) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day and welcome to the Nova Measuring Instruments Fourth Quarter 2019 Results Conference Call. [Operator Instruction]

At this time, I would like to turn the conference over to Miri Segal of MS-IR. Please go ahead ma'am.

Executive
Miri Segal-Scharia

Thank you, operator, and good day to everybody. I would like to welcome all of you to Nova's fourth quarter and full year 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 will now hand over the call to Mr. Eitan Oppenhaim, Nova's President and CEO. Eitan, please go ahead. Thank you, Miri, and thank you all for joining us. I will start the call today by speaking briefly to our December quarter results. I will then spend some time summarizing 2019 performance highlights. Following my commentary, Dror will review the financial results in detail, including the guidance for the first quarter of 2020. Nova reported strong results for the quarter, demonstrating the meaningful value our differentiated portfolio brings to our customers. Our strong performance drove revenue and profitability to exceed the Company's guidance and propelled our quarterly revenue to a new record high. This was an outstanding conclusion to a volatile year, during which we continued to strengthen our market position and expand our unique portfolio in order to support our long-term growth. Our results in the current market environment are further evidence of our steady progress to widen the Company's exposure to whole semiconductor customers in all territories.

As we enter a new calendar year, we are excited by multiple growth opportunities associated with the market reaction to our newly-introduced products, which were invented to meet the new challenges our customers going through while they improve their device performance and time to market. The new technical transition to multi-stack VNAND, DRAM scaling to sub-20-nanometer and new dimensional structures in 5-nanometer logic and below expand Nova's opportunity reach for both the materials and dimensional metrology portfolios. Following our major investments in new products and technologies, we believe that Nova is well positioned to strengthen its position furthermore in 2020.

The Company performance in the December quarter was primarily driven by our solid position across various segments and specifically in the logic/foundry. We saw growing demand for our solutions during the quarter, as our logic customers go through extensive technology development and capacity ramp-up in the most advanced technology nodes.

Our strong position with a industry-leading foundry drove our product portfolio to reach record quarterly