MILPITAS, Calif., Feb. 07, 2017 (GLOBE NEWSWIRE) -- 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 31, 2016.
2016 Highlights:
- Record Memory Sales, Driven by 3D-NAND. Strong market positions with key customers ramping
production of 3D-NAND devices led to a near-doubling of last year’s 3D-NAND record revenues and an all-time record in product
revenues from the overall memory segment.
- Record Thin-Film Metrology Sales. Success in expanding our thin-film metrology solutions in
both Automated and Integrated systems led to thin-film metrology sales more than doubling year-over-year.
- Record Integrated Metrology Sales. Market share gains, particularly in 3D-NAND, led to record
sales of Integrated Metrology systems, with revenues up over 34% year-over-year.
- Revenue Growth and Operational Execution Drove Significant Year-Over-Year Improvements in Financial Results.
- Revenue up 18%
- Gross Margin improved over 330 basis points; Operating Margin improved over 920 basis points
- Incremental Gross Margin and Incremental Operating Margin exceeded 70% and 65%, respectively
- Over $40 million in Free Cash Flow generation
| |
|
|
| |
GAAP Results |
|
| |
|
Q4 2016 |
Q3 2016 |
Q4 2015 |
FY 2016 |
FY 2015 |
|
| |
Revenues
(Millions) |
$ |
59.2 |
|
$ |
58.7 |
|
$ |
42.7 |
|
$ |
221.1 |
|
$ |
187.4 |
|
|
| |
Gross
Margin |
|
52.1 |
% |
|
51.8 |
% |
|
48.7 |
% |
|
51.6 |
% |
|
47.9 |
% |
|
| |
Operating
Margin |
|
15.2 |
% |
|
15.4 |
% |
|
-2.4 |
% |
|
13.2 |
% |
|
2.7 |
% |
|
| |
Net Income
(loss) (Millions) |
$ |
26.7 |
|
$ |
7.9 |
|
$ |
(1.8 |
) |
$ |
44.0 |
|
$ |
2.9 |
|
|
| |
Earnings per
Diluted Share |
$ |
1.04 |
|
$ |
0.31 |
|
$ |
(0.07 |
) |
$ |
1.75 |
|
$ |
0.12 |
|
|
| |
|
|
|
|
|
|
|
| |
Non-GAAP Results |
|
| |
|
Q4 2016 |
Q3 2016 |
Q4 2015 |
FY 2016 |
FY 2015 |
|
| |
Gross
Margin |
|
52.3 |
% |
|
52.5 |
% |
|
49.8 |
% |
|
52.3 |
% |
|
48.9 |
% |
|
| |
Operating
Margin |
|
15.4 |
% |
|
16.1 |
% |
|
1.8 |
% |
|
13.8 |
% |
|
4.6 |
% |
|
| |
Net Income
(Millions) |
$ |
8.4 |
|
$ |
8.3 |
|
$ |
0.0 |
|
$ |
27.1 |
|
$ |
6.4 |
|
|
| |
Earnings per
Diluted Share |
$ |
0.33 |
|
$ |
0.33 |
|
$ |
0.00 |
|
$ |
1.08 |
|
$ |
0.26 |
|
|
| |
|
|
|
|
|
|
|
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, restructuring charges and certain non-cash tax items.
“Nanometrics’ results for 2016 reflect the significant market share gains we have achieved over the past few
years in combination with a relentless focus on operational efficiencies, and mark a financial performance inflection point for the
company,” commented Dr. Timothy J. Stultz, president and chief executive officer. “Our year-on-year revenue growth of 18%
significantly outperformed overall industry spending, with a balanced revenue profile and meaningful contributions by every leading
semiconductor manufacturer and each device type: 3D-NAND, DRAM and Foundry logic. Over the past three years, we have increased
revenues by over 50% while keeping operating expenses relatively flat, resulting in incremental operating margins in the 60% to 65%
range, well above our target business model. Improvements in our gross margin profile are enabling us to step up our investments in
R&D for the development of entirely new technology platforms and applications that can expand our served markets and contribute
to future revenue growth – while still delivering solid bottom line performance.
“As we look to 2017, we expect to continue to benefit from strong spending and our robust market share positions
in 3D-NAND, while forecasting increasing revenues for both DRAM and Foundry logic compared to 2016. Our flagship Atlas® III system,
launched last year into advanced DRAM, has continued to gain traction with multiple additional key accounts and end markets. The
customer response to this system has been the strongest we have ever experienced for a newly-introduced product, and is expected to
help drive record shipments for Nanometrics in the current quarter and all-time record revenues in the second quarter. Given the
number of first-in-fab shipments in our first-quarter shipping plans and the associated delays in timing of revenue recognition,
our first-quarter sales are expected to come in at levels similar to the fourth quarter and, at the midpoint of guidance, 23%
higher than the same period last year. Importantly, with the recent upbeat investment announcements by our key customers, the
growing tailwinds for our business, and our strong position in the fastest-growing segments of our served markets, we believe we
are well-positioned to continue to meaningfully outperform the industry, further improve our financial performance, and achieve
double-digit growth and record revenues for the full year 2017.”
Fourth Quarter 2016 Summary
Revenues for the fourth quarter of 2016 were $59.2 million, up 0.8% from $58.7 million in the third quarter of 2016, and up 38.6%
from $42.7 million in the fourth quarter of 2015. On a GAAP basis, gross margin was 52.1%, compared to 51.8% in the prior
quarter and 48.7% in the year-ago period. Operating income was $9.0 million, compared to $9.1 million in the prior quarter
and an operating loss of $1.0 million in the year-ago period. The net income, which includes the favorable impact of the
change of valuation allowance on certain deferred tax assets of $18.4 million or $0.72 per diluted share, was $26.7 million or
$1.04 per diluted share, compared to $7.9 million or $0.31 per diluted share in the prior quarter, and a net loss of $1.8 million
or $0.07 per diluted share in the fourth quarter of 2015.
On a non-GAAP basis, which excludes amortization of acquired intangible assets, gross margin was 52.3%, compared
to 52.5% in the prior quarter and 49.8% in the year-ago period. Non-GAAP operating income was $9.1 million compared to $9.5
million in the prior quarter and $0.8 million in the fourth quarter of 2015. Non-GAAP net income, which adjusts for amortization of
intangible assets and impact of the change of valuation allowance on deferred tax assets of $18.4 million, was $8.4 million or
$0.33 per diluted share, compared to $8.3 million or $0.33 per diluted share in the prior quarter and breakeven in the fourth
quarter of 2015.
Full Year 2016 Summary
Revenues were $221.1 million, up 18% from $187.4 million in 2015. On a GAAP basis, gross margin was 51.6%, compared to 47.9%
in 2015, and operating income was $29.1 million, compared to $5.0 million in 2015. Net income was $44.0 million or $1.75 per
diluted share, compared to $2.9 million or $0.12 per diluted share in 2015.
On a non-GAAP basis, which excludes amortization of acquired intangible assets, gross margin was 52.3% compared
to 48.9% in 2015. Non-GAAP operating income, which also excluded restructuring charges in 2015, was $30.6 million, compared
to $8.5 million in 2015. Non-GAAP net income, which also adjusts for amortization of intangible assets and the impact of the change
of valuation allowance on deferred tax assets of $18.4 million, was $27.1 million or $1.08 per diluted share, compared to $6.4
million or $0.26 per diluted share in 2015.
Deferred Tax Asset Valuation Allowance
In accordance with ASC Topic 740, Income Taxes, the company determined based upon an evaluation of all available objectively
verifiable evidence, including but not limited to the company's U.S. operations, current earnings and anticipated future earnings,
that a release of the valuation allowance on its U.S., certain state’s, and Israel’s deferred tax assets, which are comprised of
accumulated and unused U.S. tax credits, net operating losses, and other temporary book-tax differences, is required. The
release of a non-cash valuation allowance on the majority of the company's deferred tax assets does not have any impact on its
cash, nor does such change in the valuation allowance preclude the company from utilizing its tax losses, tax credits or other
deferred tax assets in future periods.
Business Outlook
Management expects first-quarter 2017 revenues in the range of $56 to $61 million, with shipments up significantly from the fourth
quarter of 2016. Given the expected mix of revenues in the quarter, gross margin is expected to be in the range of 51% to 52% on
both a GAAP and non-GAAP basis. Management expects first-quarter operating expenses to range between $21.6 million and $22.2
million on both a GAAP and non-GAAP basis, and earnings in the range of $0.19 to $0.26 per diluted share on both a GAAP and
non-GAAP basis. The significant shipment growth in the first quarter and rapid adoption of the Atlas III is expected to lead to
revenues exceeding prior record levels in Q2 and for the full year 2017.
Conference Call Details
A conference call to discuss fourth quarter 2016 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 48634472. 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 Information
The 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, restructuring charges, and certain non-cash tax items, 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 Nanometrics
Nanometrics is a leading provider of advanced, high-performance process control metrology and inspection systems used primarily in
the fabrication of semiconductors and other solid-state devices, including sensors, optoelectronic devices, high-brightness LEDs,
discretes and data storage components. Nanometrics’ automated and integrated metrology systems measure critical dimensions,
device structures, topography and various thin film properties, including three-dimensional features and film thickness, as well as
optical, electrical and material properties. The company’s process control solutions are deployed throughout the fabrication
process, from front-end-of-line substrate manufacturing, to high-volume production of semiconductors and other devices, to advanced
three-dimensional wafer-level packaging applications. Nanometrics’ systems 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 device 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. Stultz’s quote and under the caption “Business Outlook,” 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; Nanometrics’ inability to gain additional market share, increase sales,
ship products as scheduled, 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 26, 2015, as filed with the Securities and Exchange Commission on February 24, 2016,
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 31,
2016 |
|
December 26,
2015 |
|
| ASSETS |
|
|
|
|
|
| Current assets: |
|
|
|
|
|
| Cash and cash equivalents |
|
$ |
47,062 |
|
|
$ |
38,154 |
|
|
| Marketable securities |
|
|
82,899 |
|
|
|
44,931 |
|
|
| Accounts receivable, net |
|
|
39,457 |
|
|
|
37,832 |
|
|
| Inventories |
|
|
38,837 |
|
|
|
47,749 |
|
|
| Inventories-delivered systems |
|
|
2,457 |
|
|
|
2,856 |
|
|
| Prepaid expenses and other |
|
|
5,667 |
|
|
|
6,592 |
|
|
| Total current assets |
|
|
216,379 |
|
|
|
178,114 |
|
|
| |
|
|
|
|
|
| Property, plant and equipment, net |
|
|
44,226 |
|
|
|
44,493 |
|
|
| Goodwill |
|
|
8,940 |
|
|
|
9,415 |
|
|
| Intangible assets, net |
|
|
412 |
|
|
|
1,867 |
|
|
| Deferred income tax assets |
|
|
17,399 |
|
|
|
1,118 |
|
|
| Other assets |
|
|
474 |
|
|
|
533 |
|
|
| Total assets |
|
$ |
287,830 |
|
|
$ |
235,540 |
|
|
| |
|
|
|
|
|
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
| Accounts payable |
|
$ |
11,342 |
|
|
$ |
11,675 |
|
|
| Accrued payroll and related expenses |
|
|
12,656 |
|
|
|
10,097 |
|
|
| Deferred revenue |
|
|
9,168 |
|
|
|
12,790 |
|
|
| Other current liabilities |
|
|
8,047 |
|
|
|
8,878 |
|
|
| Income taxes payable |
|
|
813 |
|
|
|
1,771 |
|
|
| Total current liabilities |
|
|
42,026 |
|
|
|
45,211 |
|
|
| |
|
|
|
|
|
| Deferred revenue |
|
|
816 |
|
|
|
827 |
|
|
| Income taxes payable |
|
|
841 |
|
|
|
775 |
|
|
| Deferred tax liabilities |
|
|
20 |
|
|
|
521 |
|
|
| Other long-term liabilities |
|
|
353 |
|
|
|
878 |
|
|
| Total liabilities |
|
|
44,056 |
|
|
|
48,212 |
|
|
| |
|
|
|
|
|
| Stockholders’ equity: |
|
|
|
|
|
| Common stock |
|
|
25 |
|
|
|
24 |
|
|
| Additional paid-in capital |
|
|
271,969 |
|
|
|
258,715 |
|
|
| Accumulated deficit |
|
|
(22,174 |
) |
|
|
(66,209 |
) |
|
| Accumulated other comprehensive income (loss) |
|
|
(6,046 |
) |
|
|
(5,202 |
) |
|
| Total stockholders’ equity |
|
|
243,774 |
|
|
|
187,328 |
|
|
| Total liabilities and stockholders’ equity |
|
$ |
287,830 |
|
|
$ |
235,540 |
|
|
| |
|
|
|
|
|
| NANOMETRICS INCORPORATED |
| CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
| (In thousands except per share
amounts) |
| (Unaudited) |
| |
|
|
|
|
|
|
|
|
|
| |
|
Three Months
Ended |
|
Twelve Months
Ended |
|
| |
|
December 31,
2016 |
|
December 26,
2015 |
|
December 31,
2016 |
|
December 26,
2015 |
|
| |
|
|
|
|
|
|
|
|
|
| Net revenues: |
|
|
|
|
|
|
|
|
|
| Products |
|
$ |
48,776 |
|
|
$ |
33,255 |
|
|
$ |
185,066 |
|
|
$ |
146,945 |
|
|
| Service |
|
|
10,383 |
|
|
|
9,428 |
|
|
|
36,063 |
|
|
|
40,422 |
|
|
| Total net revenues |
|
|
59,159 |
|
|
|
42,683 |
|
|
|
221,129 |
|
|
|
187,367 |
|
|
| |
|
|
|
|
|
|
|
|
|
| Costs of net revenues: |
|
|
|
|
|
|
|
|
|
| Cost of products |
|
|
22,766 |
|
|
|
17,118 |
|
|
|
85,391 |
|
|
|
76,224 |
|
|
| Cost of service |
|
|
5,446 |
|
|
|
4,292 |
|
|
|
20,160 |
|
|
|
19,450 |
|
|
| Amortization of intangible assets |
|
|
143 |
|
|
|
469 |
|
|
|
1,454 |
|
|
|
2,026 |
|
|
| Total costs of net revenues |
|
|
28,355 |
|
|
|
21,879 |
|
|
|
107,005 |
|
|
|
97,700 |
|
|
| Gross profit |
|
|
30,804 |
|
|
|
20,804 |
|
|
|
114,124 |
|
|
|
89,667 |
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Operating expenses: |
|
|
|
|
|
|
|
|
|
| Research and development |
|
|
7,996 |
|
|
|
7,806 |
|
|
|
31,443 |
|
|
|
32,701 |
|
|
| Selling |
|
|
7,614 |
|
|
|
7,150 |
|
|
|
30,181 |
|
|
|
28,055 |
|
|
| General and administrative |
|
|
6,231 |
|
|
|
5,543 |
|
|
|
23,381 |
|
|
|
22,444 |
|
|
| Amortization of intangible assets |
|
|
- |
|
|
|
25 |
|
|
|
24 |
|
|
|
114 |
|
|
| Restructuring |
|
|
- |
|
|
|
1,322 |
|
|
|
- |
|
|
|
1,380 |
|
|
| Total operating expenses |
|
|
21,841 |
|
|
|
21,846 |
|
|
|
85,029 |
|
|
|
84,694 |
|
|
| Income (loss) from operations |
|
|
8,963 |
|
|
|
(1,042 |
) |
|
|
29,095 |
|
|
|
4,973 |
|
|
| |
|
|
|
|
|
|
|
|
|
| Other income (expense): |
|
|
|
|
|
|
|
|
|
| Interest income |
|
|
2 |
|
|
|
9 |
|
|
|
35 |
|
|
|
71 |
|
|
| Interest expense |
|
|
(9 |
) |
|
|
(38 |
) |
|
|
(285 |
) |
|
|
(289 |
) |
|
| Other income, net |
|
|
230 |
|
|
|
73 |
|
|
|
290 |
|
|
|
813 |
|
|
| Total other income, net |
|
|
223 |
|
|
|
44 |
|
|
|
40 |
|
|
|
595 |
|
|
| |
|
|
|
|
|
|
|
|
|
| Income before income taxes |
|
|
9,186 |
|
|
|
(998 |
) |
|
|
29,135 |
|
|
|
5,568 |
|
|
| Provision for income taxes |
|
|
(17,468 |
) |
|
|
816 |
|
|
|
(14,900 |
) |
|
|
2,663 |
|
|
| Net income (loss) |
|
$ |
26,654 |
|
|
$ |
(1,814 |
) |
|
$ |
44,035 |
|
|
$ |
2,905 |
|
|
| |
|
|
|
|
|
|
|
|
|
| Net income per share: |
|
|
|
|
|
|
|
|
|
| Basic |
|
$ |
1.07 |
|
|
$ |
(0.07 |
) |
|
$ |
1.79 |
|
|
$ |
0.12 |
|
|
| Diluted |
|
$ |
1.04 |
|
|
$ |
(0.07 |
) |
|
$ |
1.75 |
|
|
$ |
0.12 |
|
|
| |
|
|
|
|
|
|
|
|
|
| Shares used in per share calculation: |
|
|
|
|
|
|
|
|
|
| Basic |
|
|
24,949 |
|
|
|
24,203 |
|
|
|
24,655 |
|
|
|
24,059 |
|
|
| Diluted |
|
|
25,514 |
|
|
|
24,203 |
|
|
|
25,153 |
|
|
|
24,375 |
|
|
| |
|
|
|
|
|
|
|
|
|
| NANOMETRICS INCORPORATED |
|
| CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
| (In thousands) |
|
| (Unaudited) |
|
| |
|
|
|
|
|
| |
|
|
|
|
|
| |
|
Twelve Months
Ended |
|
| |
|
December 31,
2016 |
|
December 26,
2015 |
|
| Cash flows from
operating activities: |
|
|
|
|
|
| Net income |
|
$ |
44,035 |
|
|
$ |
2,905 |
|
|
| Reconciliation of net income to net cash from operating
activities: |
|
|
|
|
|
| Depreciation and amortization |
|
|
8,295 |
|
|
|
9,075 |
|
|
| Stock-based compensation |
|
|
7,666 |
|
|
|
6,248 |
|
|
| Excess tax benefit from equity awards |
|
|
1,036 |
|
|
|
|
| Loss on disposal of fixed assets |
|
|
478 |
|
|
|
1,121 |
|
|
| Inventory write down |
|
|
2,110 |
|
|
|
2,645 |
|
|
| Deferred income taxes |
|
|
(16,783 |
) |
|
|
345 |
|
|
| Changes in fair value of contingent consideration |
|
|
(1,175 |
) |
|
|
(56 |
) |
|
| Changes in assets and liabilities: |
|
|
|
|
|
| Accounts receivable |
|
|
(2,707 |
) |
|
|
(12,610 |
) |
|
| Inventories |
|
|
4,526 |
|
|
|
(16,431 |
) |
|
| Inventories-delivered systems |
|
|
399 |
|
|
|
(943 |
) |
|
| Prepaid expenses and other |
|
|
905 |
|
|
|
3,271 |
|
|
| Accounts payable, accrued and other liabilities |
|
|
2,462 |
|
|
|
4,167 |
|
|
| Deferred revenue |
|
|
(3,634 |
) |
|
|
1,006 |
|
|
| Income taxes payable |
|
|
(1,928 |
) |
|
|
828 |
|
|
| Net cash provided by operating activities |
|
|
45,685 |
|
|
|
1,571 |
|
|
| |
|
|
|
|
|
| Cash flows from
investing activities: |
|
|
|
|
|
| Sales of marketable securities |
|
|
5,955 |
|
|
|
3,383 |
|
|
| Maturities of marketable securities |
|
|
38,775 |
|
|
|
41,863 |
|
|
| Purchases of marketable securities |
|
|
(82,864 |
) |
|
|
(41,449 |
) |
|
| Purchase of property, plant and equipment |
|
|
(3,999 |
) |
|
|
(1,846 |
) |
|
| Net cash provided by (used in) investing activities |
|
|
(42,133 |
) |
|
|
1,951 |
|
|
| |
|
|
|
|
|
| Cash flows from
financing activities: |
|
|
|
|
|
| Payments to Zygo Corporation related to acquisition |
|
|
(315 |
) |
|
|
(851 |
) |
|
| Proceeds from sale of shares under employee stock option
and purchase plans |
|
9,047 |
|
|
|
3,974 |
|
|
| Excess tax benefit from equty awards |
|
|
(1,036 |
) |
|
|
- |
|
|
| Taxes paid on net issuance of stock awards |
|
|
(1,822 |
) |
|
|
(1,182 |
) |
|
| Repurchases of common stock under share repurchase plans |
|
|
- |
|
|
|
(1,721 |
) |
|
| Repurchases of common stock - other |
|
|
(600 |
) |
|
|
- |
|
|
| Net cash provided by financing activities |
|
|
5,274 |
|
|
|
220 |
|
|
| Effect of exchange rate changes on cash and cash equivalents |
|
|
82 |
|
|
|
(264 |
) |
|
| Net increase in cash and cash equivalents |
|
|
8,908 |
|
|
|
3,478 |
|
|
| Cash and cash equivalents, beginning of period |
|
|
38,154 |
|
|
|
34,676 |
|
|
| Cash and cash equivalents, end of period |
|
$ |
47,062 |
|
|
$ |
38,154 |
|
|
| |
|
|
|
|
|
| NANOMETRICS INCORPORATED |
| RECONCILIATION OF GAAP TO NON-GAAP
RESULTS |
| (In thousands, except per share
amounts) |
| (Unaudited) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months
Ended |
|
Twelve Months
Ended |
| |
|
December 31,
2016 |
|
September 24,
2016 |
|
December 26,
2015 |
|
December 31,
2016 |
|
December 26,
2015 |
| Reconciliation of GAAP gross profit and gross margin to non-GAAP gross profit and gross margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP gross profit and gross margin, respectively |
|
$ |
30,804 |
|
|
52.1 |
% |
|
$ |
30,404 |
|
|
51.8 |
% |
|
$ |
20,804 |
|
|
48.7 |
% |
|
$ |
114,124 |
|
|
51.6 |
% |
|
$ |
89,667 |
|
|
47.9 |
% |
| Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Amortization of intangible assets |
|
|
143 |
|
|
0.2 |
% |
|
|
434 |
|
|
0.7 |
% |
|
|
469 |
|
|
1.1 |
% |
|
|
1,454 |
|
|
0.7 |
% |
|
|
2,026 |
|
|
1.1 |
% |
| Non-GAAP gross profit and gross margin, respectively |
|
$ |
30,947 |
|
|
52.3 |
% |
|
$ |
30,838 |
|
|
52.5 |
% |
|
$ |
21,273 |
|
|
49.8 |
% |
|
$ |
115,578 |
|
|
52.3 |
% |
|
$ |
91,693 |
|
|
48.9 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of GAAP operating income to non-GAAP operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP operating income and operating margin, respectively |
|
$ |
8,963 |
|
|
15.2 |
% |
|
$ |
9,066 |
|
|
15.4 |
% |
|
$ |
(1,042 |
) |
|
-2.4 |
% |
|
$ |
29,095 |
|
|
13.2 |
% |
|
$ |
4,973 |
|
|
2.7 |
% |
| Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Amortization of intangible assets included in cost of revenues |
|
|
143 |
|
|
0.2 |
% |
|
|
434 |
|
|
0.7 |
% |
|
|
469 |
|
|
1.1 |
% |
|
|
1,454 |
|
|
0.7 |
% |
|
|
2,026 |
|
|
1.1 |
% |
| Amortization of intangible assets included in operating expenses |
|
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
25 |
|
|
0.0 |
% |
|
|
24 |
|
|
0.0 |
% |
|
|
114 |
|
|
0.1 |
% |
| Restructuring included in operating expenses |
|
|
- |
|
|
|
|
|
- |
|
|
0.0 |
% |
|
|
1,322 |
|
|
3.1 |
% |
|
|
|
|
|
|
1,380 |
|
|
0.7 |
% |
| Total non-GAAP adjustments to operating income |
|
|
143 |
|
|
0.2 |
% |
|
|
434 |
|
|
0.7 |
% |
|
|
1,816 |
|
|
4.2 |
% |
|
|
1,478 |
|
|
0.7 |
% |
|
|
3,520 |
|
|
1.9 |
% |
| Non-GAAP operating income and operating margin, respectively |
|
$ |
9,106 |
|
|
15.4 |
% |
|
$ |
9,500 |
|
|
16.1 |
% |
|
$ |
774 |
|
|
1.8 |
% |
|
$ |
30,573 |
|
|
13.8 |
% |
|
$ |
8,493 |
|
|
4.6 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of GAAP net income to non-GAAP net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP net income |
|
$ |
26,654 |
|
|
|
|
$ |
7,883 |
|
|
|
|
$ |
(1,814 |
) |
|
|
|
$ |
44,035 |
|
|
|
|
$ |
2,905 |
|
|
|
| Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total non-GAAP adjustments to non-GAAP operating income |
|
|
143 |
|
|
|
|
|
434 |
|
|
|
|
|
1,816 |
|
|
|
|
|
1,478 |
|
|
|
|
|
3,520 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income tax impact of change of valuation allowance on deferred tax
assets |
|
|
(18,443 |
) |
|
|
|
|
- |
|
|
|
|
|
- |
|
|
|
|
|
(18,443 |
) |
|
|
|
|
- |
|
|
|
| Non-GAAP net income |
|
$ |
8,354 |
|
|
|
|
$ |
8,317 |
|
|
|
|
$ |
2 |
|
|
|
|
$ |
27,070 |
|
|
|
|
$ |
6,425 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP net income (loss) per diluted share |
|
$ |
1.04 |
|
|
|
|
$ |
0.31 |
|
|
|
|
$ |
(0.07 |
) |
|
|
|
$ |
1.75 |
|
|
|
|
$ |
0.12 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-GAAP net income per diluted share |
|
$ |
0.33 |
|
|
|
|
$ |
0.33 |
|
|
|
|
$ |
0.00 |
|
|
|
|
$ |
1.08 |
|
|
|
|
$ |
0.26 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares used in diluted net income per share calculation |
|
|
25,514 |
|
|
|
|
|
25,282 |
|
|
|
|
|
24,446 |
|
|
|
|
|
25,153 |
|
|
|
|
|
24,375 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of net cash provided by operating activities to free cash flow |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP net cash provided (used in) by operating activities |
|
$ |
11,584 |
|
|
|
|
$ |
20,881 |
|
|
|
|
$ |
(777 |
) |
|
|
|
$ |
45,685 |
|
|
|
|
$ |
1,571 |
|
|
|
| Purchase of property and equipment |
|
|
(650 |
) |
|
|
|
|
(821 |
) |
|
|
|
|
(481 |
) |
|
|
|
|
(3,999 |
) |
|
|
|
|
(1,846 |
) |
|
|
| Free cash flow |
|
$ |
10,934 |
|
|
|
|
$ |
20,060 |
|
|
|
|
$ |
(1,258 |
) |
|
|
|
$ |
41,686 |
|
|
|
|
$ |
(275 |
) |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor Relations Contact: Claire McAdams Headgate Partners LLC 530.265.9899 claire@headgatepartners.com Company Contact: Jeffrey Andreson, CFO Nanometrics Incorporated 408.545.6143 jandreson@nanometrics.com
