Nanometrics Incorporated (NASDAQ: NANO), a leading provider of
advanced process control systems, today announced financial results
for its fourth quarter and full year ended December 29, 2018.
Fourth Quarter and Full Year 2018
Highlights:
- Record Revenues for the Year, Outpacing Industry
Growth. Record revenues of $324.5 million for the year, an
increase of 25% over 2017, well outpaced the growth of the overall
wafer fab equipment (WFE) industry, driven by over 60% growth in
product sales to the memory market. Along with robust conditions in
the memory industry and tool-of-record positions with each of the
world’s leading semiconductor companies, the company’s
outperformance was bolstered by significant competitive wins and
increasing market share. In the fourth quarter, foundry, IDM and
other device sales rebounded more than 50% over Q3, setting the
stage for a significant increase in sales expected from these
markets for the forthcoming year.
- Growth in Earnings Significantly Greater than Revenue
Growth, with Record Free Cash Flow. In fiscal 2018, the
company increased both gross and operating margins by approximately
four percentage points year-over-year, which along with the strong
growth in revenues, drove new annual records in operating income,
net income, and free cash flow. The company grew earnings
significantly faster than revenues, with earnings per share
approximately doubling year-over-year, compared to 25% revenue
growth. The company reported $103.3 million in cash flow from
operating activities, and after capital expenditures of $7.5
million, generated free cash flow of $95.8 million, or 30% of
revenues, for fiscal 2018.
- Completed Acquisition of 4D
Technology. Nanometrics announced the acquisition of
4D Technology on October 29th and closed the transaction on
November 15th. 4D expands the company’s served markets into the
scientific research, aerospace, industrial, and optics
manufacturing markets. For the partial quarter, 4D contributed $2.1
million in revenues and was accretive to earnings per share.
|
|
|
|
|
|
GAAP Results |
|
Q4 2018 |
Q3 2018 |
Q4 2017 |
FY2018 |
FY 2017 |
Revenues (Millions) |
$77.0 |
|
$76.6 |
|
$78.2 |
|
$324.5 |
|
$258.6 |
|
Gross Margin |
|
54.6% |
|
|
57.0% |
|
|
56.2% |
|
|
56.7% |
|
|
52.9% |
|
Operating Margin |
|
14.1% |
|
|
18.6% |
|
|
24.5% |
|
|
20.5% |
|
|
16.6% |
|
Net Income (Millions) |
$12.0 |
|
$11.6 |
|
$10.8 |
|
$57.6 |
|
$30.2 |
|
Earnings per Diluted Share |
$0.49 |
|
$0.47 |
|
$0.42 |
|
$2.34 |
|
$1.17 |
|
|
|
|
|
|
|
Non-GAAP Results |
|
Q4 2018 |
Q3 2018 |
Q4 2017 |
FY2018 |
FY 2017 |
Gross Margin |
|
55.7% |
|
|
57.0% |
|
|
56.4% |
|
|
57.0% |
|
|
53.1% |
|
Operating Margin |
|
16.8% |
|
|
19.0% |
|
|
25.3% |
|
|
21.5% |
|
|
17.3% |
|
Net Income (Millions) |
$13.0 |
|
$11.4 |
|
$13.6 |
|
$58.3 |
|
$31.8 |
|
Earnings per Diluted Share |
$0.53 |
|
$0.47 |
|
$0.53 |
|
$2.37 |
|
$1.23 |
|
|
|
|
|
|
|
A reconciliation between GAAP operating results and
non-GAAP operating results is provided following the financial
statements that are part of this release and on the investor page
of Nanometrics' website. Non-GAAP results exclude the impact of
amortization of acquired intangibles, severance costs, executive
transition and search costs and certain discrete tax items.
“I am pleased to announce strong results for the
fourth quarter, which exceeded our prior forecast, even before the
inclusion of 4D for a portion of the period,” commented Dr.
Pierre-Yves Lesaicherre, president and chief executive officer of
Nanometrics. “Our record revenues for the year and 25% growth over
2017 are indicative of the robust memory spending environment early
in the year, the strength of our customer positions, and the
meaningful new competitive wins announced in both 3D-NAND and DRAM.
As expected, the robust conditions in the memory market began to
slow down in the second half, and particularly in the fourth
quarter. At the same time, we witnessed a significant
increase in activity with our foundry, IDM and other device
customers late in the year, with second-half product sales more
than doubling over the first half. For the full year, 2018 set new
records for the company, and was the fifth straight year of
double-digit revenue growth, expanding gross and operating margins,
and increasing earnings per share.
“As we look to a slowing memory market entering
2019, we have seen a moderation to our prior sales forecast for the
first half of the year. With our current visibility, we expect
improvement in memory market conditions to commence in the second
half of the year. Our outlook today is for strong growth in sales
to the foundry and logic segment in 2019, as well as revenue
contribution from 4D in the $15 to $20 million range.
Continued growth in our materials characterization and service
businesses will also help to offset the expected declines in memory
spending in 2019.” Dr. Lesaicherre concluded, “While
navigating through this period of significantly curtailed plans for
memory capital spending, we will continue our R&D investments
in support of new products that will drive future growth and
outperformance for Nanometrics, while continuing to deliver solid
margins, profits and free cash flows.”
Fourth Quarter 2018
SummaryRevenues for the fourth quarter of 2018 were $77.0
million, up 1% from $76.6 million in the third quarter of 2018, and
down 2% from $78.2 million in the fourth quarter of 2017. On a GAAP
basis, gross margin was 54.6%, compared to 57.0% in the prior
quarter and 56.2% in the year-ago period. Operating income was
$10.9 million, compared to $14.3 million in the prior quarter and
$19.2 million in the year-ago period. Net income was $12.0 million
or $0.49 per diluted share, compared to $11.6 million or $0.47 per
diluted share in the prior quarter and $10.8 million or $0.42 per
diluted share in the fourth quarter of 2017.
On a non-GAAP basis, which excludes amortization
of acquired intangible assets, acquisition-related costs, and
severance costs, gross margin was 55.7%, compared to 57.0% in the
prior quarter and 56.4% in the year-ago period. Non-GAAP operating
income, which also excludes acquisition-related costs included in
operating costs, executive search and transition costs, and
severance costs, was $13.0 million, compared to $14.5 million in
the prior quarter and $19.8 million in the fourth quarter of 2017.
Non-GAAP net income, which also adjusts for a gain on disposal of
property and certain discrete tax and other items, was $13.0
million or $0.53 per diluted share, compared to $11.4 million or
$0.47 per diluted share in the prior quarter and $13.6 million or
$0.53 per diluted share in the fourth quarter of 2017.
Full Year 2018 SummaryRevenues
were $324.5 million, up 25% from $258.6 million in 2017. On a
GAAP basis, gross margin was 56.7%, compared to 52.9% in 2017, and
operating income was $66.5 million, compared to $42.8 million in
2017. Net income was $57.6 million or $2.34 per diluted
share, compared to $30.2 million or $1.17 per diluted share in
2017.
On a non-GAAP basis, which excludes amortization
of acquired intangible assets, acquisition-related costs, and
severance costs, gross margin was 57.0% compared to 53.1% in
2017. Non-GAAP operating income, which also excludes
acquisition-related costs included in operating costs, executive
search and transition costs, and severance costs, was $69.9 million
in 2018, compared to $44.6 million in 2017. Non-GAAP net income,
which also adjusts for a gain on disposal of property and certain
discrete tax and other items, was $58.3 million or $2.37 per
diluted share, compared to $31.8 million or $1.23 per diluted share
in 2017.
Business OutlookManagement
expects first-quarter 2019 revenues in the range of $62 to $68
million. Gross margin is expected to be approximately 51.0%, plus
or minus 1%, on a GAAP basis and 53.5%, plus or minus 1%, on a
non-GAAP basis. Management expects first-quarter operating
expenses to range between $28.0 million and $29.0 million on a GAAP
and non-GAAP basis, and earnings in the range of $0.09 to $0.20 per
diluted share on a GAAP basis and $0.16 to $0.27 on a non-GAAP
basis.
Conference Call DetailsA
conference call to discuss fourth quarter 2018 results will be held
today at 4:30 p.m. EST (1:30 p.m. PST). To participate in the
conference call, the dial-in numbers are (877) 374-4041 for
domestic callers and (253) 237-1156 for international callers. The
conference ID is 5877517. A live and recorded webcast and
supplemental financial information will be made available on the
investor page of the Nanometrics website at
www.nanometrics.com.
Use of Non-GAAP Financial
InformationThe non-GAAP gross profit, gross margin,
operating income, operating income margin, net income, net income
per share, which exclude certain expenses, charges and special
items, and free cash flow, were not prepared in accordance with
U.S. Generally Accepted Accounting Principles (GAAP). Management
uses non-GAAP financial results, which exclude amortization of
acquired intangibles assets, acquisition-related charges, severance
costs, executive transition and search costs, gain on disposal of
property, certain discrete tax items and other discrete
adjustments, to evaluate the company’s ongoing performance and to
enable comparison to other periods that did not include these
items. The company believes the presentation of non-GAAP results is
useful to investors for analyzing ongoing business trends,
comparing performance to prior periods, and enhancing the
investor’s ability to view the company’s results from management’s
perspective; however, investors are cautioned that other companies
may calculate these measures differently than Nanometrics does,
which would limit the usefulness of these financial measures. A
table presenting a reconciliation of GAAP results to non-GAAP
results is included at the end of this press release and is
available on the investor page of the Nanometrics website at
www.nanometrics.com.
About NanometricsNanometrics is
a leading provider of advanced, high-performance process control
metrology and inspection solutions used primarily in the
semiconductor manufacturing industry, as well as in the fabrication
of other solid-state devices and components in the optoelectronic,
LED and storage industries, and more recently in the industrial,
aerospace and scientific research markets. Nanometrics’ process
control solutions include automated and integrated metrology
systems as well as software and analytics that measure and monitor
key elements of device performance and yield, such as critical
dimensions, device structures, surface shape and profile, overall
topography and various thin film properties, including
three-dimensional features and film thickness, as well as the
optical, electrical and material properties of various substrates,
devices and components. Nanometrics’ solutions enable advanced
process control for device manufacturers, providing improved device
yield at reduced manufacturing cycle time, supporting the
accelerated product life cycles in the semiconductor and other
advanced markets. The company maintains its headquarters in
Milpitas, California, with sales and service offices worldwide.
Nanometrics is traded on Nasdaq Global Select Market under the
symbol NANO. Nanometrics’ website is
http://www.nanometrics.com.
Forward Looking Statements
Certain statements in this press release, including those found in
Dr. Lesaicherre’s quote, under the caption “Business Outlook,” and
elsewhere regarding expected future financial or operational
performance, are forward-looking statements that involve a number
of risks and uncertainties that could cause actual results to
differ materially from those described in this release.
Although Nanometrics believes that the expectations reflected in
the forward-looking statements are reasonable, actual results could
differ materially from these expectations due to a variety of
factors, including, but not limited to: decreased levels of
industry spending; slowing adoption rates for Nanometrics’ new
products; Nanometrics’ inability to gain additional market share,
increase sales, ship products as scheduled, achieve customer
acceptance of new products or outperform the industry; decreased
demand for Nanometrics’ products; shifts in the timing of customer
orders and product shipments; technology adoption rates; changes in
customer and product mix; changes in market share; changes in
operating expenses; and general economic conditions. For additional
information and considerations regarding the risks faced by
Nanometrics that could cause actual results to differ materially,
see its annual report on Form 10-K for the year ended December 30,
2017, as filed with the Securities and Exchange Commission on
February 26, 2018 including under the caption “Risk Factors,” as
well as other periodic reports filed with the SEC from time to
time. Nanometrics disclaims any obligation to update information
contained in any forward-looking statement, except as required by
law.
NANOMETRICS INCORPORATED |
|
CONDENSED CONSOLIDATED BALANCE
SHEETS |
|
(In thousands) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
December 29,2018 |
|
December 30,2017 |
|
ASSETS |
|
|
|
|
|
Current
assets: |
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
110,951 |
|
|
$ |
34,899 |
|
|
Marketable securities |
|
|
40,841 |
|
|
|
82,130 |
|
|
Accounts
receivable, net |
|
|
50,854 |
|
|
|
62,457 |
|
|
Inventories |
|
|
61,915 |
|
|
|
52,860 |
|
|
Inventories-delivered systems |
|
|
180 |
|
|
|
1,534 |
|
|
Prepaid
expenses and other |
|
|
6,140 |
|
|
|
6,234 |
|
|
Total current assets |
|
|
270,881 |
|
|
|
240,114 |
|
|
|
|
|
|
|
|
Property,
plant and equipment, net |
|
|
47,900 |
|
|
|
44,810 |
|
|
Goodwill |
|
|
26,372 |
|
|
|
10,232 |
|
|
Intangible assets, net |
|
|
27,326 |
|
|
|
2,206 |
|
|
Deferred
income tax assets |
|
|
2,569 |
|
|
|
11,924 |
|
|
Other
assets |
|
|
582 |
|
|
|
413 |
|
|
Total assets |
|
$ |
375,630 |
|
|
$ |
309,699 |
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Accounts
payable |
|
$ |
16,540 |
|
|
$ |
13,857 |
|
|
Accrued
payroll and related expenses |
|
|
21,658 |
|
|
|
12,901 |
|
|
Deferred
revenue |
|
|
8,990 |
|
|
|
7,408 |
|
|
Other
current liabilities |
|
|
9,421 |
|
|
|
7,249 |
|
|
Income
taxes payable |
|
|
3,164 |
|
|
|
2,680 |
|
|
Total current liabilities |
|
|
59,773 |
|
|
|
44,095 |
|
|
|
|
|
|
|
|
Deferred
revenue |
|
|
1,753 |
|
|
|
1,661 |
|
|
Income
taxes payable |
|
|
871 |
|
|
|
860 |
|
|
Deferred
tax liabilities |
|
|
162 |
|
|
|
179 |
|
|
Other
long-term liabilities |
|
|
219 |
|
|
|
521 |
|
|
Total liabilities |
|
|
62,778 |
|
|
|
47,316 |
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
Common
stock |
|
|
24 |
|
|
|
26 |
|
|
Additional paid-in capital |
|
|
247,983 |
|
|
|
255,368 |
|
|
Retained
earnings |
|
|
67,402 |
|
|
|
9,113 |
|
|
Accumulated other comprehensive loss |
|
|
(2,557 |
) |
|
|
(2,124 |
) |
|
Total stockholders’ equity |
|
|
312,852 |
|
|
|
262,383 |
|
|
Total liabilities and stockholders’ equity |
|
$ |
375,630 |
|
|
$ |
309,699 |
|
|
|
|
|
|
|
|
NANOMETRICS INCORPORATED |
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
|
(In thousands except per share
amounts) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
|
December 29,2018 |
|
December 30,2017 |
|
December 29,2018 |
|
December 30,2017 |
|
|
|
|
|
|
|
|
|
|
|
Net
revenues: |
|
|
|
|
|
|
|
|
|
Products |
|
$ |
63,765 |
|
|
$ |
67,555 |
|
|
$ |
275,286 |
|
|
$ |
214,877 |
|
|
Service |
|
|
13,251 |
|
|
|
10,650 |
|
|
|
49,237 |
|
|
|
43,744 |
|
|
Total net
revenues |
|
|
77,016 |
|
|
|
78,205 |
|
|
|
324,523 |
|
|
|
258,621 |
|
|
|
|
|
|
|
|
|
|
|
|
Costs of
net revenues: |
|
|
|
|
|
|
|
|
|
Cost of
products |
|
|
27,417 |
|
|
|
28,746 |
|
|
|
112,834 |
|
|
|
100,910 |
|
|
Cost of
service |
|
|
7,382 |
|
|
|
5,436 |
|
|
|
27,311 |
|
|
|
20,804 |
|
|
Amortization of intangible assets |
|
|
179 |
|
|
|
50 |
|
|
|
284 |
|
|
|
206 |
|
|
Total
costs of net revenues |
|
|
34,978 |
|
|
|
34,232 |
|
|
|
140,429 |
|
|
|
121,920 |
|
|
Gross
profit |
|
|
42,038 |
|
|
|
43,973 |
|
|
|
184,094 |
|
|
|
136,701 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
Research
and development |
|
|
12,778 |
|
|
|
10,058 |
|
|
|
48,188 |
|
|
|
36,716 |
|
|
Selling |
|
|
9,451 |
|
|
|
8,109 |
|
|
|
37,528 |
|
|
|
30,839 |
|
|
General
and administrative |
|
|
8,845 |
|
|
|
6,644 |
|
|
|
31,795 |
|
|
|
26,340 |
|
|
Amortization of intangible assets |
|
|
96 |
|
|
|
- |
|
|
|
96 |
|
|
|
- |
|
|
Total
operating expenses |
|
|
31,170 |
|
|
|
24,811 |
|
|
|
117,607 |
|
|
|
93,895 |
|
|
Income
from operations |
|
|
10,868 |
|
|
|
19,162 |
|
|
|
66,487 |
|
|
|
42,806 |
|
|
|
|
|
|
|
|
|
|
|
|
Other
income (expense): |
|
|
|
|
|
|
|
|
|
Interest
income |
|
|
2 |
|
|
|
3 |
|
|
|
10 |
|
|
|
8 |
|
|
Interest
expense |
|
|
(78 |
) |
|
|
(9 |
) |
|
|
(331 |
) |
|
|
(92 |
) |
|
Other
income, net |
|
|
850 |
|
|
|
246 |
|
|
|
1,358 |
|
|
|
576 |
|
|
Total
other income, net |
|
|
774 |
|
|
|
240 |
|
|
|
1,037 |
|
|
|
492 |
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes |
|
|
11,642 |
|
|
|
19,402 |
|
|
|
67,524 |
|
|
|
43,298 |
|
|
Provision for income taxes |
|
|
(382 |
) |
|
|
8,604 |
|
|
|
9,876 |
|
|
|
13,096 |
|
|
Net
income |
|
$ |
12,024 |
|
|
$ |
10,798 |
|
|
$ |
57,648 |
|
|
$ |
30,202 |
|
|
|
|
|
|
|
|
|
|
|
|
Net
income per share: |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.50 |
|
|
$ |
0.43 |
|
|
$ |
2.39 |
|
|
$ |
1.19 |
|
|
Diluted |
|
$ |
0.49 |
|
|
$ |
0.42 |
|
|
$ |
2.34 |
|
|
$ |
1.17 |
|
|
|
|
|
|
|
|
|
|
|
|
Shares
used in per share calculation: |
|
|
|
|
|
|
|
|
|
Basic |
|
|
24,131 |
|
|
|
25,378 |
|
|
|
24,120 |
|
|
|
25,334 |
|
|
Diluted |
|
|
24,481 |
|
|
|
25,819 |
|
|
|
24,600 |
|
|
|
25,919 |
|
|
|
|
|
|
|
|
|
|
|
|
NANOMETRICS INCORPORATED |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
(In thousands) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended |
|
|
|
December 29,2018 |
|
December 30,2017 |
|
Cash flows from
operating activities: |
|
|
|
|
|
Net income |
|
$ |
57,648 |
|
|
$ |
30,202 |
|
|
Reconciliation of net income to net cash from operating
activities: |
|
|
|
|
|
Depreciation and amortization |
|
|
6,846 |
|
|
|
6,920 |
|
|
Stock-based compensation |
|
|
11,382 |
|
|
|
8,819 |
|
|
Excess
tax benefit from equity awards |
|
|
1 |
|
|
|
- |
|
|
(Gain)
Loss on disposal of fixed assets |
|
|
(759 |
) |
|
|
631 |
|
|
Inventory
write down |
|
|
3,012 |
|
|
|
2,020 |
|
|
Deferred
income taxes |
|
|
3,732 |
|
|
|
6,858 |
|
|
Changes
in assets and liabilities: |
|
|
|
|
|
Accounts receivable |
|
|
15,156 |
|
|
|
(19,523 |
) |
|
Inventories |
|
|
(8,962 |
) |
|
|
(18,037 |
) |
|
Inventories-delivered systems |
|
|
1,354 |
|
|
|
923 |
|
|
Prepaid expenses and other |
|
|
(407 |
) |
|
|
(230 |
) |
|
Accounts payable, accrued and other liabilities |
|
|
11,438 |
|
|
|
1,049 |
|
|
Deferred revenue |
|
|
2,399 |
|
|
|
(915 |
) |
|
Income taxes payable |
|
|
496 |
|
|
|
1,886 |
|
|
Net cash provided by operating activities |
|
|
103,336 |
|
|
|
20,603 |
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
Payment
for acquisition of certain assets |
|
|
(2,000 |
) |
|
|
(2,000 |
) |
|
Payments
to acquire 4D Technology net of cash acquired |
|
|
(37,163 |
) |
|
|
- |
|
|
Sales of
marketable securities |
|
|
56,279 |
|
|
|
53,030 |
|
|
Maturities of marketable securities |
|
|
38,700 |
|
|
|
77,250 |
|
|
Purchases
of marketable securities |
|
|
(53,523 |
) |
|
|
(129,766 |
) |
|
Purchase
of property, plant and equipment |
|
|
(7,486 |
) |
|
|
(5,204 |
) |
|
Proceeds
from sale of property, plant and equipment |
|
|
942 |
|
|
|
- |
|
|
Net
cash used in investing activities |
|
|
(4,251 |
) |
|
|
(6,690 |
) |
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
Proceeds from sale of shares under employee stock option and
purchase plans |
|
3,826 |
|
|
|
5,576 |
|
|
Taxes
paid on net issuance of stock awards |
|
|
(3,609 |
) |
|
|
(4,135 |
) |
|
Repurchases of common stock under share repurchase plans |
|
|
(22,987 |
) |
|
|
(26,999 |
) |
|
Net
cash used in financing activities |
|
|
(22,770 |
) |
|
|
(25,558 |
) |
|
Effect
of exchange rate changes on cash and cash equivalents |
|
|
(263 |
) |
|
|
(518 |
) |
|
Net
increase in cash and cash equivalents |
|
|
76,052 |
|
|
|
(12,163 |
) |
|
Cash and
cash equivalents, beginning of period |
|
|
34,899 |
|
|
|
47,062 |
|
|
Cash and
cash equivalents, end of period |
|
$ |
110,951 |
|
|
$ |
34,899 |
|
|
|
|
|
|
|
|
NANOMETRICS INCORPORATED |
|
RECONCILIATION OF GAAP TO NON-GAAP
RESULTS |
|
(In thousands, except per share
amounts) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
|
December 29, 2018 |
|
September 29, 2018 |
|
December 30, 2017 |
|
December 29, 2018 |
|
December 30, 2017 |
|
Reconciliation
of GAAP gross profit and gross margin to non-GAAPgross profit and
gross margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
gross profit and gross margin, respectively |
|
$ |
42,038 |
|
|
54.6 |
% |
|
$ |
43,634 |
|
|
57.0 |
% |
|
$ |
43,973 |
|
|
56.2 |
% |
|
$ |
184,094 |
|
|
56.7 |
% |
|
$ |
136,701 |
|
|
52.9 |
% |
|
Non-GAAP
adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Severance included in cost of revenues |
|
|
- |
|
|
0.0 |
% |
|
|
- |
|
|
0.0 |
% |
|
|
77 |
|
|
0.1 |
% |
|
|
21 |
|
|
0.0 |
% |
|
|
404 |
|
|
0.1 |
% |
|
Acquisition-related charges |
|
|
668 |
|
|
0.9 |
% |
|
|
|
|
|
|
|
|
|
|
668 |
|
|
0.2 |
% |
|
|
|
|
|
Amortization of intangible assets |
|
|
179 |
|
|
0.2 |
% |
|
|
35 |
|
|
0.0 |
% |
|
|
50 |
|
|
0.1 |
% |
|
|
284 |
|
|
0.1 |
% |
|
|
206 |
|
|
0.1 |
% |
|
Non-GAAP gross profit and gross margin,
respectively |
|
$ |
42,885 |
|
|
55.7 |
% |
|
$ |
43,669 |
|
|
57.0 |
% |
|
$ |
44,100 |
|
|
56.4 |
% |
|
$ |
185,067 |
|
|
57.0 |
% |
|
$ |
137,311 |
|
|
53.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of GAAP operating income to non-GAAP operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income
and operating margin, respectively |
|
$ |
10,868 |
|
|
14.1 |
% |
|
$ |
14,271 |
|
|
18.6 |
% |
|
$ |
19,162 |
|
|
24.5 |
% |
|
$ |
66,487 |
|
|
20.5 |
% |
|
$ |
42,806 |
|
|
16.6 |
% |
|
Non-GAAP
adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related charges included in cost of
revenues |
|
|
668 |
|
|
0.9 |
% |
|
|
- |
|
|
|
|
|
- |
|
|
|
|
|
668 |
|
|
0.2 |
% |
|
|
|
|
|
Amortization of intangible assets included in cost of
revenues |
|
|
179 |
|
|
0.2 |
% |
|
|
35 |
|
|
0.0 |
% |
|
|
50 |
|
|
0.1 |
% |
|
|
284 |
|
|
0.1 |
% |
|
|
206 |
|
|
0.1 |
% |
|
Amortization of intangible assets included in operating
expenses |
|
|
96 |
|
|
0.1 |
% |
|
|
|
|
|
|
|
|
|
|
96 |
|
|
0.0 |
% |
|
|
|
|
|
Acquisition-related charges included in operating
expenses |
|
|
903 |
|
|
1.2 |
% |
|
|
|
|
|
|
|
|
|
|
903 |
|
|
0.3 |
% |
|
|
|
|
|
Severance included in cost of revenues |
|
|
- |
|
|
0.0 |
% |
|
|
|
|
|
|
77 |
|
|
0.1 |
% |
|
|
21 |
|
|
0.0 |
% |
|
|
404 |
|
|
0.2 |
% |
|
Severance included in operating expenses |
|
|
- |
|
|
0.0 |
% |
|
|
|
|
|
|
509 |
|
|
0.6 |
% |
|
|
339 |
|
|
0.1 |
% |
|
|
845 |
|
|
0.3 |
% |
|
Executive transition costs |
|
|
240 |
|
|
0.3 |
% |
|
|
236 |
|
|
0.3 |
% |
|
|
|
|
|
|
1,088 |
|
|
0.3 |
% |
|
|
|
|
|
Executive search costs |
|
|
- |
|
|
0.0 |
% |
|
|
|
|
|
|
|
|
|
|
46 |
|
|
0.0 |
% |
|
|
355 |
|
|
0.1 |
% |
|
Total non-GAAP adjustments to operating income |
|
|
2,086 |
|
|
2.7 |
% |
|
|
271 |
|
|
0.4 |
% |
|
|
636 |
|
|
0.8 |
% |
|
|
3,445 |
|
|
1.1 |
% |
|
|
1,810 |
|
|
0.7 |
% |
|
Non-GAAP operating income and operating margin,
respectively |
|
$ |
12,954 |
|
|
16.8 |
% |
|
$ |
14,542 |
|
|
19.0 |
% |
|
$ |
19,798 |
|
|
25.3 |
% |
|
$ |
69,932 |
|
|
21.5 |
% |
|
$ |
44,616 |
|
|
17.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of GAAP net income to non-GAAP net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income |
|
$ |
12,024 |
|
|
|
|
$ |
11,568 |
|
|
|
|
$ |
10,798 |
|
|
|
|
$ |
57,648 |
|
|
|
|
$ |
30,202 |
|
|
|
|
Non-GAAP
adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-GAAP adjustments to non-GAAP operating income |
|
|
2,086 |
|
|
|
|
|
271 |
|
|
|
|
|
636 |
|
|
|
|
|
3,445 |
|
|
|
|
|
1,810 |
|
|
|
|
Gain on Disposal of Property |
|
|
(874 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
(874 |
) |
|
|
|
|
|
|
|
Other Discrete Items |
|
|
89 |
|
|
|
|
|
|
|
|
|
|
|
|
|
89 |
|
|
|
|
|
|
|
|
Discrete tax items and tax effect of non-GAAP
adjustments |
|
|
(279 |
) |
|
|
|
|
(448 |
) |
|
|
|
|
(432 |
) |
|
|
|
|
(1,983 |
) |
|
|
|
|
(2,772 |
) |
|
|
|
Tax
Reform |
|
|
- |
|
|
|
|
|
- |
|
|
|
|
|
2,569 |
|
|
|
|
|
- |
|
|
|
|
|
2,569 |
|
|
|
|
Non-GAAP net income |
|
$ |
13,047 |
|
|
|
|
$ |
11,391 |
|
|
|
|
$ |
13,571 |
|
|
|
|
$ |
58,325 |
|
|
|
|
$ |
31,809 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income per
diluted share |
|
$ |
0.49 |
|
|
|
|
$ |
0.47 |
|
|
|
|
$ |
0.42 |
|
|
|
|
$ |
2.34 |
|
|
|
|
$ |
1.17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income per
diluted share |
|
$ |
0.53 |
|
|
|
|
$ |
0.47 |
|
|
|
|
$ |
0.53 |
|
|
|
|
$ |
2.37 |
|
|
|
|
$ |
1.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in diluted
net income per share calculation |
|
|
24,481 |
|
|
|
|
|
24,466 |
|
|
|
|
|
25,819 |
|
|
|
|
|
24,600 |
|
|
|
|
|
25,919 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net cash provided by operating activities
to free cash flow |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
cash provided by operating activities |
|
$ |
19,928 |
|
|
|
|
$ |
24,437 |
|
|
|
|
$ |
5,219 |
|
|
|
|
$ |
103,336 |
|
|
|
|
$ |
20,603 |
|
|
|
|
Purchase of property and equipment |
|
|
(4,544 |
) |
|
|
|
|
(1,181 |
) |
|
|
|
|
(2,862 |
) |
|
|
|
|
(7,486 |
) |
|
|
|
|
(5,204 |
) |
|
|
|
Free cash flow |
|
$ |
15,384 |
|
|
|
|
$ |
23,256 |
|
|
|
|
$ |
2,357 |
|
|
|
|
$ |
95,850 |
|
|
|
|
$ |
15,399 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor Relations Contact:
Claire McAdams
Headgate Partners LLC
530.265.9899
claire@headgatepartners.com
Company Contact:
Greg Swyt
Vice President, Finance
408.545.6088
ir@nanometrics.com
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