Camtek Announces Results for the Third Quarter of 2019

Expects full year 2019 revenue to reach record level of about $133 million

MIGDAL HAEMEK, Israel, Nov. 7, 2019 /PRNewswire/ -- Camtek Ltd. (NASDAQ: CAMT) (TASE: CAMT), today announced its financial results for the quarter ended September 30, 2019.

Highlights of the Third Quarter 2019

  • Revenues were at $32.5 million;
  • GAAP gross margin at 46.9%; Non-GAAP gross margin at 47.1%;
  • GAAP operating income was $4.4 million and non-GAAP operating income was $5.3 million, representing margins of 13.5% and 16.2%, respectively;
  • GAAP net income of $4.2 million, or $0.11 per diluted share, and non-GAAP net income of $5.0 million, or $0.13 per diluted share;
  • Operating cash flow of $3.8 million with $83.0 million in cash and short-term deposits at quarter-end; and
  • Expect fourth quarter revenues at similar levels to that of the third quarter, with improved profitability.

Management Comment

Rafi Amit Camtek's CEO commented, "Camtek's third quarter results reflect continued solid execution, with revenues in the upper limit of our guidance range despite the current weaker semiconductor market. Our gross margin came in below previous quarters mainly as a result of less favorable product mix in the quarter. We expect an improvement in the gross and operating margins in the fourth quarter."

Continued Mr. Amit, "China has grown to become our largest territory and we expect this to continue into next year. Orders have been for various applications including Advanced Packaging and Front-End Macro inspection, as well as new customers opening facilities and purchasing an initial tool, with the potential for further expansion. Since the beginning of the year we have gained 14 new customers, most of them in China. Furthermore, we have strengthened our position in two key market segments: power devices and CMOS image sensors. During the quarter, we received and installed two multiple machine orders for these segments which are expected to continue growing into 2020."

Concluded Mr. Amit, "Fundamental long-term market drivers remain strong, and Camtek continues to maintain its strong position in the market. Next quarter, we expect revenues at around current levels.  This should put us at record revenue level for the year of about $133 million."

Third Quarter 2019 Financial Results

Revenues for the third quarter of 2019 were $32.4 million. This compares to third quarter 2018 revenues of $32.3 million.

Gross profit on a GAAP basis in the quarter totaled $15.2 million (46.9% of revenues), a decline of 6% compared to a gross profit of $16.2 million (50.2% of revenues) in the third quarter of 2018. Gross profit on a non-GAAP basis in the quarter totaled $15.3 million (47.1% of revenues), a decline of 6% compared to a gross profit of $16.2 million (50.4% of revenues) in the third quarter of 2018. The decline in the gross margin is due to less favorable product mix in the third quarter of 2019.

Operating profit on a GAAP basis in the quarter totaled $4.4 million (13.5% of revenues), a decline of 21% compared to an operating income of $5.6 million (17.2% of revenues) in the third quarter of 2018. Operating profit on a non-GAAP basis in the quarter totaled $5.3 million (16.2% of revenues), a decline of 15% compared to $6.2 million (19.2% of revenues) in the third quarter of 2018. The decline in the operating margin is due to the lower gross margin in the third quarter of 2019.

Net income on a GAAP basis in the quarter totaled $4.2 million, or $0.11 per diluted share, a decline of 18% compared to net income of $5.1 million, or $0.14 per diluted share, in the third quarter of 2018. Net income on a non-GAAP basis in the quarter totaled $5.0 million, or $0.13 per diluted share, a decline of 12% compared to a non-GAAP net income of $5.7 million, or $0.16 per diluted share, in the third quarter of 2018. 

Cash and cash equivalents, as of September 30, 2019, were $83.0 million compared to $54.9 million as of December 31, 2018 and $85.3 million as of June 30, 2019. During the quarter the Company generated a positive operating cash flow of $3.8 million and paid a cash dividend of $5.7 million.  

Conference Call

Camtek will host a conference call today, November 7, 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:                                            1 888 668 9141          at 10am Eastern Time
Israel:                                            03 918 0609          at 5pm Israel Time
International:                          +972 3 918 0609

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.

 

Consolidated Balance Sheets

(In thousands)




September 30,

December 31,


2019

2018

Assets

U.S. Dollars (In thousands)

Current assets



Cash and cash equivalents

59,040

54,935

Short-term deposits

24,000

-

Trade accounts receivable, net

28,590

31,644

Inventories

26,479

30,109

Other current assets

2,316

2,613




Total current assets

140,425

119,301




Fixed assets, net

*18,793

17,117




Long term inventory

2,856

2,056

Deferred tax asset

1,201

2,366

Other assets, net

240

231

Intangible assets, net

521

476





4,818

5,129




Total assets

164,036

141,547




Liabilities and shareholders' equity



Current liabilities



Trade accounts payable

11,317

15,541

Other current liabilities

*19,624

23,179




Total current liabilities

30,941

38,720




Long term liabilities



Other long term liabilities

*2,375

1,420


2,375

1,420




Total liabilities

33,316

40,140




Commitments and contingencies






Shareholders' equity



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



40,689,020 issued shares at September 30, 2019 and 38,535,445 at
December 31, 2018;



38,596,644 shares outstanding at September 30, 2019 and
36,443,069 at December 31, 2018

157

151

Additional paid-in capital

100,352

81,873

Retained earnings

32,109

21,281


132,618

103,305

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

(1,898)

(1,898)

Total shareholders' equity

130,720

101,407




Total liabilities and shareholders' equity

164,036

141,547







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

 

 

 

Camtek Ltd.

Consolidated Statements of Operations

(in thousands, except share data)


 

Nine Months ended

 September 30,

 

Three Months

ended September 30,

 

Year ended

December 31,


2019

2018

2019

2018

2018


U.S. dollars

U.S. dollars

U.S. dollars

 

Revenues

 

100,818

90,000

 

32,470

 

32,264

 

123,174

Cost of revenues

51,875

45,921

17,252

16,081

62,378







Gross profit

48,943

44,079

15,218

16,183

60,796













Research and development costs

11,891

10,456

4,164

3,501

14,581

Selling, general and administrative expenses

19,668

19,792

6,681

7,128

26,182


31,559

30,248

10,845

10,629

40,763







Operating income

17,384

13,831

4,373

5,554

20,033







Financial income, net

340

491

188

55

728







Income from continuing operations

 before income taxes

17,724

14,322

4,561

5,609

20,761







Income tax expense

(1,508)

(1,364)

(398)

(516)

(2,030)







Net income from continuing operations

16,216

12,958

4,163

5,093

18,731







Discontinued operations *






Income from discontinued operations












Income before tax expense

1,257

-

-

-

-

Income tax expense

(94)

-

-

-

-







Net income from discontinued operations

1,163

-

-

-

-







Net income

17,379

12,958

4,163

5,093

18,731







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

 

 

Net income per ordinary share:


 

Nine months ended

 September 30,

 

Three months ended
September 30,

 

Year ended

December 31,


2019

2018

2019

2018

2018


U.S. dollars

U.S. dollars

U.S. dollars







     Basic earnings from continuing
operation

0.43

0.36

0.11

0.14

0.52







     Basic earnings from discontinued
operation

0.03

-

-

-

-







     Basic net earnings

0.47

0.36

0.11

0.14

0.52







     Diluted earnings from continuing
operation

0.43

0.35

0.11

0.14

0.51







     Diluted earnings from discontinued
operation

0.03

-

-

-

-







Diluted net earnings

0.46

0.35

0.11

0.14

0.51







     Weighted average number of
       ordinary shares outstanding:


















Basic

37,286

36,105

38,541

36,300

36,190







Diluted

38,064

36,657

39,307

36,941

36,747

 

 

 

Camtek Ltd.

Reconciliation of GAAP To Non-GAAP results


(In thousands, except share data)


Nine Months ended

 September 30,

Three Months ended

September 30,

Year ended

December 31,


2019

2018

2019

2018

2018


U.S. dollars

U.S. dollars

U.S. dollars







Reported net income attributable to
     Camtek Ltd. on GAAP basis

17,379

12,958

4,163

5,093

18,731

Share-based compensation

2,068

1,028

818

634

1,682

Chroma transaction expenses (1)

136

-

63

-

-

Attributable to discontinued operations

(1,163)

-

-

-

-

Effect of FIT reorganization (2)

-

506

-

-

506







Non-GAAP net income

18,420

14,492

5,044

5,727

20,919







Non –GAAP diluted net income per
share

 

 

0.48

 

0.40

 

0.13

 

0.16

 

0.57

Gross margin on GAAP basis from
continuing operations

 

48.5%

 

49.0%

 

46.9%

 

50.2%

 

49.4%

Reported gross profit on GAAP basis

 

48,943

44,079

15,218

16,183

60,796

Share-based compensation

207

105

85

62

167

Effect of FIT reorganization (2)

-

205

-

-

205







Non- GAAP gross margin

49,150

44,389

15,303

16,245

61,168

Non-GAAP gross profit 

48.8%

49.3%

47.1%

50.4%

49.7%







 

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

 

 

 

17,384

 

 

 

13,831

 

 

 

4,373

 

 

 

5,554

 

 

 

20,033

Share-based compensation

2,068

1,028

818

634

1,682

Chroma transaction expenses (1)

136

-

63

-

-

Effect of FIT reorganization (2)

-

506

-

-

506

Non-GAAP operating income

19,588

15,365

5,254

6,188

22,221

 

(1)  In the second and third quarters 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-third-quarter-of-2019-300953788.html

SOURCE Camtek Ltd

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