MIGDAL HAEMEK, Israel,
May 1, 2014 /PRNewswire/
-- Camtek Ltd. (NASDAQ and TASE: CAMT), today announced its
financial results for the quarter ended March 31, 2014.
Highlights of the First Quarter 2014
- Revenues of $22.1 million;
- Improved gross margins of 45.9% (non-GAAP); 45.8% on a GAAP
basis;
- Non-GAAP and GAAP operating income of $1.2 million or 5.5% and 5.3% of revenues,
respectively;
- Non-GAAP net income of $0.9
million; GAAP net income of $0.6
million;
- Positive cash flow from operating activities of $1.3 million;
- Second quarter revenue guidance of $22-24 million
Rafi Amit, Camtek's Chairman
and CEO, commented, "We are pleased with the results of the
quarter. Revenues were in line with our expectations and we have
shown improvement in gross margins and profitability across the
board. This improvement is a result of our ongoing efforts towards
efficient operations as well as our recent decision to focus our
resources on segments we believe have better growth potential."
Continued Mr. Amit, "The first customer-site test of our
3D Functional InkJet Technology product, which we have named the
Gryphon product line, is ongoing and we are happy to report that
the results have so far met our expectations. We are also pleased
to announce the launch of a second customer-site test at our sister
company, PCB Technologies. We believe we remain on track for
commercial installations to begin in the latter half of the
year."
Concluded Mr. Amit, "So far this year is looking
promising and we have expectations of double digit growth in our
semiconductor inspection and metrology business. For the second
quarter, we believe revenues will be between $22-24 million."
First Quarter 2014 Financial Results
Revenues for the first quarter of 2014 were $22.1 million. This is a 22% improvement compared
to revenues of $18.1 million in the
first quarter of 2013. The revenue guidance range for the quarter
was $21-23 million for the
quarter.
Gross profit on a GAAP basis in the quarter totaled
$10.1 million (45.8% of revenues), a
23.5% improvement compared to $8.2
million (45.4% of revenues) in the first quarter of
2013.
Gross profit on a non-GAAP basis in the quarter was $10.1 million (45.9% of revenues), a 22.5%
improvement compared to $8.3 million
(45.8% of revenues) in the first quarter of 2013.
Operating income on a GAAP basis in the quarter was
$1.2 million (5.3% of revenues),
compared with an operating loss of $0.2
million in the first quarter of 2013.
Operating income on a non-GAAP basis in the quarter was
$1.2 million (5.5% of revenues)
compared with operating income of $0.1
million in the first quarter of 2013.
Net income on a GAAP basis in the quarter totaled
$0.6 million (2.9% of revenues) or
$0.02 per share, compared to a net
loss of $0.9 million or $0.03 per share in the first quarter of 2013.
Net income on a non-GAAP basis in the quarter was $0.9 million (4.0% of revenues) or $0.03 per share, compared to a net loss of
$0.2 million or $0.01 per share in the first quarter of 2013.
Cash, cash equivalents and short-term deposits as of
March 31, 2014 were $23.5 million compared to $22.5 million as of December 31, 2013. The company generated
$1.3 million in positive cash flow
from operating activities during the first quarter of 2014.
Conference Call
Camtek will host a conference call today, May 1, 2014, at 9:00 am
ET.
Rafi Amit, Chairman and CEO, and
Moshe Eisenberg, Chief Financial
Officer, 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 9:00 am Eastern
Time
|
Israel:
|
03 918
0609
|
at 4:00 pm 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.co.il/ beginning 24 hours after the call.
ABOUT CAMTEK LTD.
Camtek Ltd. provides automated and technologically advanced
solutions dedicated to enhancing production processes, increasing
products yield and reliability, enabling and supporting customer's
latest technologies in the Semiconductors, Printed Circuit Boards
(PCB) and IC Substrates industries.
Camtek addresses the specific needs of these interconnected
industries with dedicated solutions based on a wide and advanced
platform of technologies including intelligent imaging, image
processing and functional 3D inkjet printing.
This press release is available at www.camtek.co.il.
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, intellectual
property litigation, price reductions as well as due to risks
identified in the documents filed by the Company with the
SEC.
Use of non-GAAP Measures
This press release provides financial measures that exclude
certain items such as: (i) amortization of acquired intangible
assets and revaluation of liabilities with respect to the
acquisitions of Sela and Printar; and (ii) share based compensation
expenses, 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)
|
|
March
31
|
December
31,
|
|
2014
|
2013
|
|
U.S. Dollars (In
thousands)
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
12,496
|
16,495
|
Short-term
deposits
|
11,000
|
6,000
|
Trade accounts
receivable, net
|
25,183
|
27,048
|
Inventories
|
17,445
|
17,911
|
Due from affiliated
companies
|
172
|
233
|
Other current
assets
|
2,410
|
1,913
|
Deferred tax
asset
|
888
|
938
|
|
|
|
Total current
assets
|
69,594
|
70,538
|
|
|
|
|
|
|
Fixed assets,
net
|
14,086
|
14,481
|
|
|
|
Long term
inventory
|
2,606
|
2,225
|
Long-term
deposit
|
729
|
729
|
Deferred tax
asset
|
975
|
975
|
Other assets,
net
|
339
|
339
|
Intangible assets,
net
|
1,024
|
1,008
|
Goodwill
|
1,555
|
1,555
|
|
|
|
|
7,228
|
6,831
|
|
|
|
Total
assets
|
90,908
|
91,850
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
Current
liabilities
|
|
|
Trade accounts
payable
|
7,932
|
7,753
|
Other current
liabilities
|
15,271
|
15,585
|
|
|
|
Total current
liabilities
|
23,203
|
23,338
|
|
|
|
Long term
liabilities
|
|
|
Liability for
employee severance benefits
|
876
|
858
|
Other long term
liabilities
|
4,086
|
5,758
|
|
4,962
|
6,616
|
|
|
|
Total
liabilities
|
28,165
|
29,954
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
Shareholders'
equity
|
|
|
Ordinary shares NIS
0.01 par value, authorized 100,000,000 shares,
|
|
|
32,552,327 issued as
of March 31, 2014 and 32,497,902 issued as of
December 31, 2013, outstanding
30,459,951
|
|
|
as of March 31, 2014
and 29,896,933 as of December 31, 2013
|
134
|
134
|
Additional paid-in
capital
|
63,174
|
62,966
|
Retained
earnings
|
1,333
|
694
|
|
64,641
|
63,794
|
Treasury stock, at
cost (2,092,376 as of March 31, 2014 and December
31, 2013)
|
(1,898)
|
(1,898)
|
|
|
|
Total shareholders'
equity
|
62,743
|
61,896
|
|
|
|
Total liabilities
and shareholders' equity
|
90,908
|
91,850
|
|
|
|
|
|
Camtek
Ltd.
|
Consolidated
Statements of Operations
|
(in thousands,
except share data)
|
|
Three months
ended March
31,
|
Year
ended December
31,
|
|
2014
|
2013
|
2013
|
|
U.S.
dollars
|
|
|
|
|
|
Revenues
|
22,109
|
18,073
|
85,405
|
Cost of
revenues
|
11,979
|
9,870
|
51,003
|
|
|
|
|
Gross
profit
|
10,130
|
8,203
|
34,402
|
|
|
|
|
|
|
|
|
Research and
development costs
|
3,434
|
3,650
|
14,370
|
Selling, general and
administrative expenses
|
5,526
|
4,706
|
22,362
|
Reorganization and
impairment
|
-
|
-
|
(3,466)
|
|
|
|
|
Total operating
expenses
|
8,960
|
8,356
|
33,266
|
|
|
|
|
Operating income
(loss)
|
1,170
|
(153)
|
1,136
|
|
|
|
|
Financial expenses,
net
|
(365)
|
(566)
|
(1,738)
|
|
|
|
|
Income (loss)
before income taxes
|
805
|
(719)
|
(602)
|
|
|
|
|
Income tax
|
(166)
|
(147)
|
609
|
|
|
|
|
Net income
(loss)
|
639
|
(866)
|
7
|
|
|
|
|
Earnings (loss)
per ordinary share:
|
|
|
|
|
|
|
|
Basic
|
0.02
|
(0.03)
|
0.00
|
|
|
|
|
Diluted
|
0.02
|
(0.03)
|
0.00
|
|
|
|
|
Weighted average
number of ordinary
|
|
|
|
shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
30,427
|
29,897
|
30,040
|
|
|
|
|
Diluted
|
30,534
|
29,897
|
30,094
|
Camtek
Ltd.
|
Reconciliation of
GAAP to Non-GAAP results
|
(In thousands,
except share data)
|
|
Three months
ended March
31,
|
Year ended
December 31,
|
|
2014
|
2013
|
2013
|
|
U.S.
dollars
|
U.S.
dollars
|
|
|
|
|
Reported net
income (loss) attributable to
Camtek Ltd. on GAAP basis
|
639
|
(866)
|
7
|
Acquisition of Sela
and Printar related expenses (1)
|
206
|
478
|
(1,949)
|
Inventory and fixed
asset write-downs (2)
|
-
|
-
|
4,433
|
Share-based
compensation
|
39
|
144
|
377
|
Realization of
deferred tax assets (3)
|
-
|
-
|
(1,287)
|
Employee related
charges (4)
|
-
|
-
|
490
|
Non-GAAP net
income (loss)
|
884
|
(244)
|
2,071
|
|
|
|
|
Non –GAAP net
income (loss) per share, basic and diluted
|
0.03
|
(0.01)
|
0.07
|
Gross margin on
GAAP basis
Reported gross
profit on GAAP basis
|
45.8%
10,130
|
45.4%
8,203
|
40.3%
34,402
|
Acquisition of Sela
and Printar related expenses (1)
|
-
|
75
|
225
|
Inventory and fixed
asset write-downs (2)
|
-
|
-
|
3,915
|
Share-based
compensation
|
16
|
7
|
55
|
Employee related
charges (4)
|
-
|
-
|
25
|
Non- GAAP gross
margin
|
45.9%
|
45.8%
|
45.2%
|
Non-GAAP gross
profit
|
10,146
|
8,285
|
38,622
|
|
|
|
|
Reported operating
loss
attributable to
Camtek Ltd. on GAAP basis
|
1,170
|
(153)
|
1,136
|
Acquisition of Sela
and Printar related expenses (1)
|
-
|
75
|
(3,241)
|
Inventory and fixed
asset write-downs (2)
|
-
|
-
|
4,433
|
Share-based
compensation
|
39
|
144
|
377
|
Employee related
charges
|
-
|
-
|
490
|
Non-GAAP operating
income
|
1,209
|
66
|
3,195
|
(1) During the three months ended
March 31, 2013 and 2012 and the
twelve months ended December 31,
2013, the Company recorded acquisition expenses of
$0.2 million, $0.5 million, and $(2.0)
million, respectively, consisting of: (1) Revaluation
adjustments of $0.2 million,
$0.4 million, and $1.3 million, respectively, of contingent
consideration and certain future liabilities recorded at fair
value. These amounts are recorded under finance expenses line item;
(2) Implication of re-organization and impairment charges of
$0, $0,
and $(3.5) respectively; and (3)
$0, $0.08
million, and $0.2 million,
respectively, with respect to amortization of intangible assets
acquired recorded under cost of revenues line item.
(2) During the three months ended
March 31, 2013 and 2012 and the
twelve months ended December 31,
2013, the Company recorded inventory and fixed asset write
downs in the amount of $0 million,
$0 million and $4.4 million, respectively, consisting of
$0, $0,
and $3.9 million of inventory and
fixed assets recorded under cogs of revenues line item and
$0, $0,
$0 and $0.5 of fixed assets in operating expenses.
(3) During the three months ended
March 31, 2013 and 2012 and the
twelve months ended December 31,
2013, the Company recorded net income of $0, $0, and
$1.3 million, respectively, as a
result of a decrease in the valuation allowance on deferred tax
assets following the evaluation of the realizability of the assets
based on projected future earnings.
(4) During the three months ended
March 31, 2013 and 2012 and the
twelve months ended December 31,
2013, the Company recorded net employee related expenses of
$0, $0
and $0.5 million, respectively, as a
result of internal reorganization.
CAMTEK
LTD.
Moshe Eisenberg,
CFO
Tel: +972 4 604
8308
Mobile: +972 54 900
7100
moshee@camtek.co.il
|
INTERNATIONAL
INVESTOR RELATIONS
GK Investor
Relations
Ehud Helft / Gavriel
Frohwein
Tel: (US) 1 646 688 3559
camtek@gkir.com
|
SOURCE Camtek Ltd.