REHOVOT, ISRAEL—Nova Measuring Instruments Ltd. reported record revenues for 2014 first quarter. Highlights include:

• Continued systems delivery to leading customers for 20nm ramp up and 16/14nm pilot lines.
• T600 Standalone tool accepted for high volume manufacturing for Etch process for 20nm & 16nm at major foundry customer.
• Ongoing evaluations for 10nm technology.
• Ongoing evaluations at memory customers for VNAND and TSV applications.
• SW products gaining traction with a first order for Hybrid Metrology software solution.
• Quarterly revenues of $34.7 million, up 26% from $27.4 million a year ago.
• Quarterly gross margin of 51%, compared with 54% a year ago.
• Net Income of $6.4 million, up 167% from $2.4 million a year ago.
• Research & Development expense of $6.9 million, down from $7.5 million a year ago.
• Total cash reserves of $113.2 million as of March 31, 2014, and no debt.

"We posted record sales revenue for the first quarter, meeting the high end of our quarterly revenue guidance due to market share gains and strong demand for our Optical Metrology solutions. Moreover, our net income significantly increased and exceeded our quarterly guidance," said Eitan Oppenhaim, President and CEO of Nova. "Our recent R&D investments, which were aimed at enhancing and diversifying our products offering, are clearly paying off and have established us as a leader in Optical Metrology for advanced process control."

"The use of Optical Metrology is expanding rapidly as the semiconductor industry continues its challenging technical transition to advanced 3D structures, thus broadening the opportunity available to us as we continue to increase our market share and expand our presence. Following our recent efforts and extensive customer evaluations, we started to receive orders for our newly introduced software products. We view these orders as clear evidence that our strategic decision to add software products to our offering is paying off, and is supporting the profitability leverage built into our business model."