Nova Measuring Instruments designs, develops, produces and supplies integrated process control metrology systems to the global semiconductor industry, either directly or through process equipment manufacturers. The company's revenues grew at a compounded annual rate of 12.4% during the past five years. The stock trades at a P/E of 9.34.
Total revenue for the first quarter of 2011 surged 76% to $28.2 million from $16 million in the year-ago quarter. Gross margin expanded 680 basis points to 57.6%, while operating margin increased 1,080 basis points to 27.8%. As a result, net income rose to $8 million, or 30 cents per share, from $2.7 million, or 11 cents per share, in the comparable quarter of 2010. On the balance sheet side, cash and cash equivalents stood at $15 million, and the current ratio was 4.0. The company remains debt-free.
Guidance for the second quarter of 2011 shows revenue ranging between $28.5 million and $31 million with a net margin of 27% to 30%.
All the four analysts covering the stock rate it a buy. There are no sell ratings on the stock. On average, analysts expect shares to reach $13.56, up about 38% from recent levels.
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