MIGDAL HAEMEK, Israel,
July 29, 2014 /PRNewswire/
-- Camtek Ltd. (NASDAQ and TASE: CAMT), today announced its
financial results for the quarter ended June
30, 2014.
Highlights of the Second Quarter of 2014
- Revenues of $23.2 million;
- Non-GAAP and GAAP Gross margins of $11.5
million, representing 49.5% of revenues;
- Non-GAAP and GAAP operating income of $2.7 million and $2.6
million, respectively, representing 11.5% and 11.1% of
revenues, respectively; and
- Non-GAAP net income of $2.3
million; GAAP net income of $2.0
million.
Rafi Amit, Camtek's Chairman
and CEO, commented, "We are pleased with the results and the
progress we have made during the second quarter."
Continued Mr. Amit, "Our new product strategy is
progressing well. With regard to the commercialization process of
our 3D Functional Ink-Jet Technology product, Gryphon, our two beta
sites have been ongoing for a few months and so far, we are happy
with the results. The more we run the machine in a production
environment, as well as meeting with potential customers, the more
confident we become in our belief that Ink-Jet technology for
solder-mask will be the dominant technology in the PCB industry for
years to come. We remain on track and expect initial commercial
Gryphon installations at customers to begin in the fourth quarter,
with revenues expected in 2015. Our other recently launched
next-generation semiconductor inspection and metrology platform for
the advanced packaging market, Eagle, is also gaining strong
traction especially among leading OSATs. We look forward to
unleashing and realizing the potential within our new products and
expect them to increasingly contribute to our future revenues."
Concluded Mr. Amit, "Our existing business continues to
show solid performance, and overall Camtek is on track for a good
year. In the third quarter, we expect revenues to remain around the
same level as that of the second quarter."
Second quarter 2014 Financial Results
Revenues for the second quarter of 2014 were $23.2 million. This is a 4% improvement compared
to revenues of $22.3 million in the
second quarter of 2013.
Gross profit on a GAAP basis in the quarter totaled
$11.5 million (49.5% of revenues), a
17% improvement compared to $9.8
million (44.0% of revenues) in the second quarter of 2013.
The improved gross margin is mainly due to a favorable revenue mix
in the quarter.
Gross profit on a non-GAAP basis in the quarter was $11.5 million (49.5% of revenues), a 16%
improvement compared to $9.9 million
(44.4% of revenues) in the second quarter of 2013.
Operating income on a GAAP basis in the quarter was
$2.6 million (11.1% of revenues),
compared with an operating income of $1.0
million (4.5% of revenues) in the second quarter of
2013.
Operating income on a non-GAAP basis in the quarter was
$2.7 million (11.5% of revenues)
compared with non-GAAP operating income of $1.2 million (5.4% of revenues) in the second
quarter of 2013.
Net income on a GAAP basis in the quarter totaled
$2.0 million (8.7% of revenues) or
$0.07 per share, compared to a net
income of $0.3 million (1.5% of
revenues) or $0.01 per share in the
second quarter of 2013.
Net income on a non-GAAP basis in the quarter was $2.3 million (10.0% of revenues) or $0.08 per share, compared to non-GAAP net income
of $1.0 million (4.5% of revenues) or
$0.03 per share in the second quarter
of 2013.
Cash, cash equivalents and short-term deposits as of
June 30, 2014 were $20.0 million compared to $22.5 million as of December 31, 2013. The company used $3.0 million in cash flow for operating
activities during the second quarter of 2014 mainly as a result of
collection timing.
Conference Call
Camtek will host a conference call today, July 29, 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.
Consolidated
Balance Sheets
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
2014
|
|
2013
|
|
U.S. Dollars (In
thousands)
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
11,563
|
|
16,495
|
Short-term
deposits
|
8,500
|
|
6,000
|
Trade accounts
receivable, net
|
31,579
|
|
27,048
|
Inventories
|
19,041
|
|
17,911
|
Due from affiliated
companies
|
231
|
|
233
|
Other current
assets
|
2,201
|
|
1,913
|
Deferred tax
asset
|
788
|
|
938
|
|
|
|
|
Total current
assets
|
73,903
|
|
70,538
|
|
|
|
|
Fixed assets,
net
|
13,837
|
|
14,481
|
|
|
|
|
Long term
inventory
|
1,979
|
|
2,225
|
Long-term
deposit
|
729
|
|
729
|
Deferred tax
asset
|
975
|
|
975
|
Other assets,
net
|
339
|
|
339
|
Intangible assets,
net
|
1,028
|
|
1,008
|
Goodwill
|
1,555
|
|
1,555
|
|
6,605
|
|
6,831
|
Total
assets
|
94,345
|
|
91,850
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
Current
liabilities
|
|
|
|
Trade accounts
payable
|
8,375
|
|
7,753
|
Other current
liabilities
|
15,967
|
|
15,585
|
|
|
|
|
Total current
liabilities
|
24,342
|
|
23,338
|
|
|
|
|
Long term
liabilities
|
|
|
|
Liability for
employee severance benefits
|
939
|
|
858
|
Other long term
liabilities
|
4,218
|
|
5,758
|
|
5,157
|
|
6,616
|
Total
liabilities
|
29,499
|
|
29,954
|
|
|
|
|
Shareholders'
equity
|
|
|
|
Ordinary shares NIS
0.01 par value, authorized 100,000,000 shares,
|
|
|
|
32,564,626 issued as
of June 30, 2014 and 32,497,902 issued as of December 31, 2013,
outstanding 30,472,250
|
|
|
|
as of June 30, 2014
and 30,405,526 as of December 31, 2013
|
134
|
|
134
|
Additional paid-in
capital
|
63,265
|
|
62,966
|
Retained
earnings
|
3,345
|
|
694
|
|
66,744
|
|
63,794
|
Treasury stock, at
cost (2,092,376 as of June 30, 2014 and December 31,
2013)
|
(1,898)
|
|
(1,898)
|
|
|
|
|
Total shareholders'
equity
|
64,846
|
|
61,896
|
|
|
|
|
Total liabilities
and shareholders' equity
|
94,345
|
|
91,850
|
Consolidated
Statements of Operations
|
(in thousands,
except share data)
|
|
|
|
|
|
|
|
Six Months
ended
June
30,
|
|
Three
Months
ended June
30,
|
|
Year
ended
December
31,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2013
|
|
U.S.
dollars
|
|
U.S.
dollars
|
|
U.S.
dollars
|
Revenues
|
45,270
|
|
40,339
|
|
23,161
|
|
22,266
|
|
85,405
|
Cost of
revenues
|
23,672
|
|
22,317
|
|
11,693
|
|
12,447
|
|
51,003
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
21,598
|
|
18,022
|
|
11,468
|
|
9,819
|
|
34,402
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development costs
|
6,964
|
|
7,208
|
|
3,530
|
|
3,558
|
|
14,370
|
Selling, general and
administrative expenses
|
10,900
|
|
9,974
|
|
5,374
|
|
5,268
|
|
22,362
|
Reorganization and
impairment
|
-
|
|
-
|
|
-
|
|
-
|
|
(3,466)
|
|
17,864
|
|
17,182
|
|
8,904
|
|
8,826
|
|
33,266
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
3,734
|
|
840
|
|
2,564
|
|
993
|
|
1,136
|
|
|
|
|
|
|
|
|
|
|
Financial expenses,
net
|
694
|
|
1,078
|
|
329
|
|
512
|
|
1,738
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
before income
|
|
|
|
|
|
|
|
|
|
taxes
|
3,040
|
|
(238)
|
|
2,235
|
|
481
|
|
(602)
|
|
|
|
|
|
|
|
|
|
|
Income tax
|
(389)
|
|
(293)
|
|
(223)
|
|
(146)
|
|
609
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
2,651
|
|
(531)
|
|
2,012
|
|
335
|
|
7
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
per ordinary share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
0.09
|
|
(0.02)
|
|
0.07
|
|
0.01
|
|
0.00
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
0.09
|
|
(0.02)
|
|
0.07
|
|
0.01
|
|
0.00
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
30,447
|
|
29,966
|
|
30,467
|
|
30,034
|
|
30,040
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
30,534
|
|
29,971
|
|
30,534
|
|
30,044
|
|
30,094
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2013
|
|
U.S.
dollars
|
|
U.S.
dollars
|
|
U.S.
dollars
|
|
|
|
|
|
|
|
|
|
|
Reported net income
(loss) attributable to Camtek Ltd. on GAAP basis
|
2,651
|
|
(531)
|
|
2,012
|
|
335
|
|
7
|
|
|
|
|
|
|
|
|
|
|
Acquisition of Sela
and Printar related expenses (1)
|
412
|
|
994
|
|
206
|
|
516
|
|
(1,949)
|
Inventory and fixed
asset write –downs (2)
|
-
|
|
-
|
|
-
|
|
-
|
|
4,433
|
Share-based
compensation
|
131
|
|
285
|
|
92
|
|
141
|
|
377
|
Realization of
deferred tax assets (3)
|
-
|
|
-
|
|
-
|
|
-
|
|
(1,287)
|
Employee related
charges (4)
|
-
|
|
-
|
|
-
|
|
-
|
|
490
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income
|
3,194
|
|
748
|
|
2,310
|
|
992
|
|
2,071
|
|
|
|
|
|
|
|
|
|
|
Non –GAAP net
income per share, basic and diluted
|
0.10
|
|
0.03
|
|
0.08
|
|
0.03
|
|
0.07
|
|
|
|
|
|
|
|
|
|
|
Gross margin on
GAAP basis
|
47.7%
|
|
44.7%
|
|
49.5%
|
|
44.1%
|
|
40.3%
|
Reported gross
profit on GAAP basis
|
21,598
|
|
18,022
|
|
11,468
|
|
9,819
|
|
34,402
|
|
|
|
|
|
|
|
|
|
|
Acquisition of Sela
and Printar related expenses (1)
|
-
|
|
150
|
|
-
|
|
75
|
|
225
|
Inventory and fixed
asset write –downs (2)
|
-
|
|
-
|
|
-
|
|
-
|
|
3,915
|
Share-based
compensation
|
24
|
|
27
|
|
8
|
|
21
|
|
55
|
Employee related
charges (4)
|
-
|
|
-
|
|
-
|
|
-
|
|
25
|
Non- GAAP gross
margin
|
47.7%
|
|
45.1%
|
|
49.5%
|
|
44.4%
|
|
45.2%
|
Non-GAAP gross
profit
|
21,622
|
|
18,199
|
|
11,476
|
|
9,915
|
|
38,622
|
|
|
|
|
|
|
|
|
|
|
Reported operating
income attributable to Camtek Ltd. on GAAP basis
|
3,734
|
|
840
|
|
2,564
|
|
993
|
|
1,136
|
|
|
|
|
|
|
|
|
|
|
Acquisition of Sela
and Printar related expenses (1)
|
-
|
|
150
|
|
-
|
|
75
|
|
(3,241)
|
Inventory and fixed
asset write-downs (2)
|
-
|
|
-
|
|
-
|
|
-
|
|
4,433
|
Share-based
compensation
|
123
|
|
285
|
|
84
|
|
141
|
|
377
|
Employee related
charges
|
|
|
-
|
|
|
|
-
|
|
490
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating
income
|
3,857
|
|
1,275
|
|
2,648
|
|
1,209
|
|
3,195
|
(1)
|
During the three and
the six months ended June 30, 2014 and 2013 and the twelve months
ended December 31, 2013, the Company recorded acquisition expenses
of $0.2 million, $0.4 million, 0.5 million, 1.0 million and $(2.0)
million, respectively, consisting of: (1) Revaluation adjustments
of $0.2 million, $0.4 million, 0.4 million, 0.8 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, $0, $0 and $(3.5)
respectively; and (3) $0, $0, $0.07, $0.15 and $0.2 million,
respectively, with respect to amortization of intangible assets
acquired recorded under cost of revenues line item.
|
|
|
(2)
|
During the three and
six months ended June 30, 2014 and 2013 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, $0 million, $0
million and $4.4 million, respectively, consisting of $0,
$0,$0, $0 and $3.9 million of inventory and fixed assets recorded
under cogs of revenues line item and $0, $0, $0, 4) and $0.5
million of fixed assets in operating expenses.
|
|
|
(3)
|
During the three and
six months ended June 30, 2014 and 2013 and the twelve months ended
December 31, 2013, the Company recorded net income of $0, $0, $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 and
six months ended June 30, 2014 and 2013 and the twelve months ended
December 31, 2013, the Company recorded net employee related
expenses of $0, $0, $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.