Camtek Announces Results for the Second Quarter of 2019

Record Revenues of $34.3 Million, 13% YoY growth

MIGDAL HAEMEK, Israel, Aug. 6, 2019 /PRNewswire/ -- Camtek Ltd. (NASDAQ: CAMT) (TASE: CAMT), today announced its financial results for the quarter ended June 30, 2019.

Highlights of the Second Quarter 2019

  • Revenues were a record at $34.3 million, up 13% year-over-year;
  • GAAP gross margin at 48.2% versus 48.9% in Q2 last year; Non-GAAP gross margin at 48.4% versus 49.0%;
  • GAAP operating income was $6.4 million and non-GAAP operating income was $7.0 million, representing margins of 18.5% and 20.5%, respectively;
  • GAAP net income of $7.2 million or $0.19 per diluted share, and non-GAAP net income of $6.7 million, or $0.18 per diluted share, representing year-over-year growth of 66% and 46%, respectively; and
  • Operating cash flow of $7.3 million with $85.3 million in cash at quarter-end;
    • Cash includes $16 million from the issuance of new shares to Chroma and a full earn-out payment of $1.3 million related to the sale of the PCB;

Dividend Announcement

Camtek's Board of Directors declared a cash dividend in the amount of $0.17 per share representing an aggregate distribution of approximately $6.5 million. The dividend will be paid on September 4, 2019 to all shareholders of record at the close of the NASDAQ Global Select Market on August 21, 2019.

Management Comment

Rafi Amit Camtek's CEO commented, "Camtek's second quarter results reflect our strong track record of execution with record revenues and robust profitability. This is despite the current weaker semiconductor market.

One of the consequences of the market uncertainty is that our customers are ordering equipment only for their short-term production needs and require short delivery times.

As a result, for the third quarter, while we still expect a solid level of revenues, our expectations are for revenues within the range of $31 - 33 million." 

Continued Mr. Amit, "In the first half of 2019 we achieved an impressive revenue level of $68.3 million, 18% higher than in the first half of 2018, which itself was a record year for Camtek and the semiconductors industry. This performance demonstrates Camtek's strong position in the market. Fundamental market drivers for our equipment demand have not changed and Camtek is in an excellent position to win as the market ramps up."

Second Quarter 2019 Financial Results

Revenues for the second quarter of 2019 were $34.3 million. This compares to second quarter 2018 revenues of $30.5 million, a growth of 13%.

Gross profit on a GAAP basis in the quarter totaled $16.6 million (48.2% of revenues), up 11% compared to a gross profit of $14.9 million (48.9% of revenues) in the second quarter of 2018. Gross profit on a non-GAAP basis in the quarter totaled $16.6 million (48.4% of revenues), up 11% compared to a gross profit of $14.9 million (49.0% of revenues) in the second quarter of 2018.

Operating profit on a GAAP basis in the quarter totaled $6.4 million (18.5% of revenues), up 35% compared to an operating profit of $4.7 million (15.5% of revenues) in the second quarter of 2018. Operating profit on a non-GAAP basis in the quarter totaled $7.0 million (20.5% of revenues), up 42% compared to $5.0 million (16.3% of revenues) in the second quarter of 2018.

Net income on a GAAP basis in the quarter totaled $7.2 million, or $0.19 per diluted share, up 66% compared to net income of $4.3 million, or $0.12 per diluted share, in the second quarter of 2018. Net income on a non-GAAP basis in the quarter totaled $6.7 million, or $0.18 per diluted share, up 46% compared to a non-GAAP net income of $4.6 million, or $0.13 per diluted share, in the second quarter of 2018. 

Cash and cash equivalents, as of June 30, 2019, were $85.3 million compared to $54.9 million as of December 31, 2018. During the quarter the Company generated a positive operating cash flow of $7.3 million. In addition, the Company received an earn-out payment of $1.3 million related to the sale of the PCB business in 2017. Camtek also closed the Chroma transaction, receiving $16 million from the issuance of new shares.

Conference Call

Camtek will host a conference call today, August 6, 2019, at 10:00 am ET.

Rafi Amit, CEO, Moshe Eisenberg, CFO and Ramy Langer, COO will host the call and will be available to answer questions after presenting the results. To participate, please call one of the following telephone numbers a few minutes before the start of the call.

US:                                            1-866-744-5399          at 9:30 am Eastern Time
Israel:                                             03-918-0685         at 4:30 pm Israel Time
International:                           +972-3-918-0685

For those unable to participate, the teleconference will be available for replay on Camtek's website at http://www.camtek.com beginning 24 hours after the call.

A summary presentation of the quarterly results will also be available on Camtek's website.

About Camtek Ltd.

Camtek is a leading manufacturer of metrology and inspection equipment and a provider of software solutions serving the Advanced Packaging, Memory, CMOS Image Sensors, MEMS, RF and other segments in the mid end of the semiconductor industry.

Camtek provides dedicated solutions and crucial yield-enhancement data, enabling manufacturers to improve yield and drive down their production costs.

With eight offices around the world, Camtek has best-in-class sales and customer support organization, providing tailor-made solutions in line with customers' requirements.

This press release is available at http://www.camtek.com

This press release may contain projections or other forward-looking statements regarding future events or the future performance of the Company. These statements are only predictions and may change as time passes. We do not assume any obligation to update that information. Actual events or results may differ materially from those projected, including as a result of changing industry and market trends, reduced demand for our products, the timely development of our new products and their adoption by the market, increased competition in the industry, price reductions as well as due to other risks identified in our Annual Report on Form 20-F and other documents filed by the Company with the SEC, that represent our views only as of the date they are made and should not be relied upon as representing our views as of any subsequent date.

This press release provides financial measures that exclude: (i) share based compensation expenses; (ii) certain Chroma transaction expenses; (iii) discontinued operations; and (iv) write off costs with regard to the FIT activities, and are therefore not calculated in accordance with generally accepted accounting principles (GAAP). Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management uses both GAAP and non-GAAP measures when evaluating the business internally and therefore felt it is important to make these non-GAAP adjustments available to investors. A reconciliation between the GAAP and non-GAAP results appears in the tables at the end of this press release.

.









Camtek Ltd.

Consolidated Balance Sheets

(In thousands)


June 30,


December 31,



2019


2018


U.S. Dollars (In thousands)

Assets




Current assets




Cash and cash equivalents 

85,268


54,935

Trade accounts receivable, net 

26,387


31,644

Inventories 

29,809


30,109

Other current assets 

2,464


2,613


    Total current assets

143,928


119,301



     Fixed assets, net

*18,212


17,117


Long term inventory 

2,462


2,056

Deferred tax asset 

1,456


2,366

Other assets, net 

231


231

Intangible assets, net

502


476



4,651


5,129


Total assets

166,791


141,547





Liabilities and shareholders' equity





Current liabilities




Trade accounts payable

12,132


15,541

Other current liabilities

*19,939


23,179


     Total current liabilities

32,071


38,720


Long term liabilities




Other long term liabilities

*2,495


1,420


2,495


1,420


     Total liabilities

34,566


40,140


Commitments and contingencies 








Shareholders' equity 




Ordinary shares NIS 0.01 par value, 100,000,000 shares authorized at
June 30, 2019 and at December 31, 2018;




40,615,239issued shares at June 30, 2019 and 38,535,445 at
December 31, 2018;




38,522,863shares outstanding at June 30, 2019 and 36,443,069 at
December 31, 2018




157


151

Additional paid-in capital

99,469


81,873

Retained earnings

34,497


21,281


134,123


103,305

Treasury stock, at cost (2,092,376  as of June 30, 2019 and December
31, 2018)


(1,898)


(1,898)


Total shareholders' equity 

132,225


101,407


      Total liabilities and shareholders' equity

166,791


141,547


*Includes adjustment in respect of implementation of ASC 842 - Leases

 

 









Camtek Ltd.

Consolidated Statements of Operations

(in thousands, except share data)


Six Months ended
June 30, 


Three Months ended
June 30, 


Year ended
December 31, 


2019


2018


2019


2018


2018


U.S. dollars


U.S. dollars


U.S. dollars

Revenues

68,348


57,736


34,346


30,462


123,174

Cost of revenues

34,623


29,840


17,777


15,563


62,378



Gross profit

33,725


27,896


16,569


14,899


60,796





Research and development costs

7,727


6,955


3,803


3,406


14,581

Selling, general and administrative expenses

12,987


 

12,664


6,412


6,775


26,182


20,714


19,619


10,215


10,181


40,763


Operating income 

13,011


8,277


6,354


4,718


20,033


Financial income, net

152


436


135


146


728


Income from continuing operations 










 before income taxes

13,163


8,713


6,489


4,864


20,761


Income tax expense

1,110


848


463


533


2,030


Net income from continuing operations

12,053


7,865


6,026


4,331


18,731











Discontinued operations *










Income from discontinued operations











Income before tax expense

1,257




1,257





Income tax expense

94


-


94


-


 

-


Net income from discontinued operations

1,163


-


1,163


-


-


Net income 

13,216


7,865


7,189


4,331


18,731


 

*Relates to the earn-out payment received from the sale of the PCB business.

 

 

 

Net income (loss) per ordinary share:





Six months ended
June 30


Three months ended
June 30,


Year ended
December 31,


2019


2018


2019


2018


2018


U.S. dollars


U.S. dollars


U.S. dollars

Basic earnings from continuing
  operation

0.33


0.22


0.16


0.12


0.52











Basic earnings from discontinued
  operation

0.03


-


0.03


-


-











Basic net earnings

0.36


0.22


0.19


0.12


0.52











Diluted earnings from continuing
  operation

0.32


0.22


0.16


0.12


0.51











Diluted earnings from discontinued
   operation

0.03


-


0.03


-


-











Diluted net earnings

0.35


0.22


0.19


0.12


0.51











Weighted average number of










  ordinary shares outstanding:




















Basic

36,644


36,050


36,816


36,090


36,190











Diluted

37,476


36,512


37,734


36,632


36,747

 

 

 

Camtek Ltd.

Reconciliation of GAAP To Non-GAAP results

(In thousands, except share data)












Six Months ended
June 30,


Three Months ended
June 30,


Year ended
December 31, 


2019


2018


2019


2018


2018


U.S. dollars


U.S. dollars


U.S. dollars

Reported net income (loss) attributable
to Camtek Ltd. on GAAP basis

13,216


7,865


7,189


4,331


18,731

Share-based compensation

1,250


395


605


249


1,682

Chroma transaction expenses (1)

73


-


73


-


-

Attributable to discontinued operations

(1,163)


-


(1,163)


-


-

Effect of FIT reorganization (2)

-


506


-


-


506











Non-GAAP net income

13,376


8,766


6,704


4,580


20,919











Non–GAAP net income per diluted share

0.37


0.24


0.18


0.13


0.57

Gross margin on GAAP basis from
continuing operations

49.4%


48.4%


48.3%


48.9%


49.4%

Reported gross profit on GAAP basis

33,725


27,896


16,569


14,899


60,796

Share-based compensation

122


44


61


28


167

Effect of FIT reorganization (1)

-


-


-


-


205











Non- GAAP gross margin

33,847


28,145


16,630


14,927


61,168

Non-GAAP gross profit 

49.5%


48.8%


48.4%


49.0%


49.7%











Reported operating income attributable
to Camtek Ltd. on GAAP basis from
continuing operations

13,011


8,277


6,354


4,718


20,033

Share-based compensation

1,250


395


605


249


1,682

Chroma transaction expenses (1)

73


-


73


-


-

Effect of FIT reorganization (2)

-


506


-


-


506

Non-GAAP operating income

14,334


9,178


7,032


4,967


22,221


(1)  In the second quarter of 2019, certain transaction expenses were incurred in relation to the technological cooperation agreement with Chroma. These were recorded under operating expenses.

(2)  At the end of the first quarter of 2018, the Company ceased its efforts to utilize the remaining inventory and equipment related to FIT development and recorded a one-time write-off in the amount of $0.5 million, consisting of: (1) inventory write-offs of $0.2 million, recorded under the cost of revenue line item; and (2) fixed asset write-offs of $0.3 million recorded under operating expenses.

 

CAMTEK LTD.

Moshe Eisenberg, CFO

Tel: +972-4-604-8308

Mobile: +972-54-900-7100

moshee@camtek.com

INTERNATIONAL INVESTOR RELATIONS  

GK Investor Relations

Ehud Helft / Gavriel Frohwein

Tel: (US) 1-646-688-3559

camtek@gkir.com

 

Cision View original content:http://www.prnewswire.com/news-releases/camtek-announces-results-for-the-second-quarter-of-2019-300897019.html

SOURCE Camtek Ltd.

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