Exhibit 99.1

 

Nanometrics Incorporated

1550 Buckeye Drive

Milpitas, CA 95035

 

Tel: 408.545.6000

Fax: 408.232.5910

www.nanometrics.com

 

 

Investor Relations Contact:

 

Company Contact:

Claire McAdams

 

Greg Swyt

Headgate Partners LLC

 

Vice President, Finance

530.265.9899

 

408.545.6088

claire@headgatepartners.com

 

ir@nanometrics.com

Nanometrics Reports Fourth Quarter and Full Year 2018 Financial Results

Outpacing the Industry with 25% Revenue Growth for the Year; Record Free Cash Flow Generation

 

 

MILPITAS, Calif., February 5, 2019 — 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


The following information was filed by Nanometrics Inc (NANO) on Tuesday, February 5, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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