MIGDAL HAEMEK, Israel,
Oct. 29, 2014 /PRNewswire/ -- Camtek Ltd. (NASDAQ and
TASE: CAMT), today announced its financial results for the quarter
ended September 30, 2014.
Highlights of the Third Quarter of 2014
- Revenues of $22.4 million;
- Non-GAAP and GAAP operating income of $1.1 million and $1.0
million, respectively, representing 5.1% and 4.6% of
revenues, respectively;
- Non-GAAP net income of $0.9
million; GAAP net income of $0.6
million;
- Camtek opened a Gryphon demonstration center for potential
customers, based in Orange County,
California; and
- Positive market feedback for Camtek's new semiconductor product
line, Eagle, focused on advanced packaging; installed first systems
at major semiconductor manufacturers.
Rafi Amit, Camtek's Chairman
and CEO, commented, "Strategically the third quarter was very
important for us and sets the stage for 2015. We opened a
demonstration center for the Gryphon, our 3D Functional InkJet
Technology system for PCB solder mask applications, at which
potential customers can see the system in action. This will support
our efforts to capitalize on the industry interest we are seeing in
this product. We remain on track and expect initial commercial
Gryphon installations to begin in the fourth quarter, with revenues
expected in 2015.
"Additionally, our semiconductor systems achieved qualification
at leading semiconductor manufacturers, some of which we had not
significantly penetrated in the past. These are large vendors that
are getting ready to ramp up with their new manufacturing
facilities and their capabilities. As the demand for their products
picks up we expect to see the potential for getting multiple orders
and selling significant quantities of tools."
Concluded Mr. Amit, "For the fourth quarter, we expect
revenues of around $20.5-$22.5
million. Looking further out to 2015, we believe the
tailwinds are in place for solid year-over-year growth in both
revenue and profit."
Third Quarter 2014 Financial Results
Revenues for the third quarter of 2014 were $22.4 million. This is a 3% improvement compared
to revenues of $21.7 million in the
third quarter of 2013.
Gross profit on a GAAP basis in the quarter totaled
$10.0 million (44.4% of revenues), a
3% improvement compared to $9.7
million (44.6% of revenues) in the third quarter of
2013.
Gross profit on a non-GAAP basis in the quarter was $10.0 million (44.5% of revenues), a 2%
improvement compared to $9.8 million
(45.0% of revenues) in the third quarter of 2013.
Operating income on a GAAP basis in the quarter was
$1.0 million (4.6% of revenues),
compared with an operating income of $0.6
million (2.8% of revenues) in the third quarter of 2013.
Operating income on a non-GAAP basis in the quarter was
$1.1 million (5.1% of revenues)
compared with non-GAAP operating income of $0.8 million (3.8% of revenues) in the third
quarter of 2013.
Net income on a GAAP basis in the quarter totaled
$0.6 million (2.8% of revenues) or
$0.02 per share, compared to a net
loss of $0.1 million or ($0.00) per share in the third quarter of
2013.
Net income on a non-GAAP basis in the quarter was $0.9 million (4.2% of revenues) or $0.03 per share, compared to non-GAAP net income
of $0.5 million (2.5% of revenues) or
$0.02 per share in the third quarter
of 2013.
Cash, cash equivalents and short-term deposits as of
September 30, 2014 were $24.2 million compared to $20.0 million as of June
30, 2014. The company generated $4.3
million in cash flow for operating activities during the
third quarter of 2014.
Conference Call
Camtek will host a conference call today, October 29, 2014, at 10:00
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
888 281 1167
at 10:00 am Eastern Time
Israel: 03
918
0644
at 4:00 pm Israel Time
International: +972
3 918 0644
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) revaluation of liabilities and other
expenses 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)
|
|
|
|
September
30,
|
December
31,
|
|
2014
|
2013
|
|
U.S. Dollars (In
thousands)
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
14,418
|
16,495
|
Short-term
deposits
|
9,800
|
6,000
|
Trade accounts
receivable, net
|
25,415
|
27,048
|
Inventories
|
21,637
|
17,911
|
Due from affiliated
companies
|
-
|
233
|
Other current
assets
|
2,889
|
1,913
|
Deferred tax
asset
|
638
|
938
|
|
|
|
Total current
assets
|
74,797
|
70,538
|
|
|
|
|
|
|
Fixed assets,
net
|
13,318
|
14,481
|
|
|
|
Long term
inventory
|
2,131
|
2,225
|
Long-term
deposit
|
729
|
729
|
Deferred tax
asset
|
975
|
975
|
Other assets,
net
|
339
|
339
|
Intangible assets,
net
|
1,020
|
1,008
|
Goodwill
|
1,555
|
1,555
|
|
|
|
|
6,749
|
6,831
|
|
|
|
Total
assets
|
94,864
|
91,850
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
Current
liabilities
|
|
|
Trade accounts
payable
|
7,470
|
7,753
|
Due to affiliated
companies
|
118
|
-
|
Other current
liabilities
|
16,355
|
15,585
|
|
|
|
Total current
liabilities
|
23,943
|
23,338
|
|
|
|
Long term
liabilities
|
|
|
Liability for
employee severance benefits
|
913
|
858
|
Other long term
liabilities
|
4,418
|
5,758
|
|
5,331
|
6,616
|
|
|
|
Total
liabilities
|
29,274
|
29,954
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
Ordinary shares NIS
0.01 par value, authorized 100,000,000 shares,
|
|
|
32,574,626 issued as
of September 30, 2014 and 32,497,902 issued as of December 31,
2013, outstanding 30,482,250
|
|
|
as of September 30,
2014 and 30,405,526 as of December 31, 2013
|
134
|
134
|
Additional paid-in
capital
|
63,391
|
62,966
|
Retained
earnings
|
3,963
|
694
|
|
67,488
|
63,794
|
Treasury stock, at
cost (2,092,376 as of September 30, 2014 and December 31,
2013)
|
(1,898)
|
(1,898)
|
|
|
|
Total shareholders'
equity
|
65,590
|
61,896
|
|
|
|
Total liabilities
and shareholders' equity
|
94,864
|
91,850
|
Consolidated
Statements of Operations
|
(in thousands,
except share data)
|
|
|
|
|
Nine Months
ended
|
Three Months
ended
|
Year
ended
|
|
September
30,
|
September
30,
|
December
31,
|
|
2014
|
2013
|
2014
|
2013
|
2013
|
|
U.S.
dollars
|
U.S.
dollars
|
U.S.
dollars
|
|
|
|
|
|
|
Revenues
|
67,713
|
62,072
|
22,443
|
21,733
|
85,405
|
Cost of
revenues
|
36,146
|
34,363
|
12,474
|
12,046
|
51,003
|
|
|
|
|
|
|
Gross
profit
|
31,567
|
27,709
|
9,969
|
9,687
|
34,402
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development costs
|
10,705
|
10,715
|
3,741
|
3,507
|
14,370
|
Selling, general and
administrative expenses
|
16,086
|
15,554
|
5,186
|
5,580
|
22,362
|
Reorganization and
impairment
|
-
|
-
|
-
|
-
|
(3,466)
|
|
26,791
|
26,269
|
8,927
|
9,087
|
33,266
|
|
|
|
|
|
|
Operating
income
|
4,776
|
1,440
|
1,042
|
600
|
1,136
|
|
|
|
|
|
|
Financial expenses
(income), net
|
(861)
|
(1,681)
|
(167)
|
(603)
|
1,738
|
|
|
|
|
|
|
Income (loss)
before income
|
|
|
|
|
|
taxes
|
3,915
|
(241)
|
875
|
(3)
|
(602)
|
|
|
|
|
|
|
Income tax
|
(646)
|
(412)
|
(257)
|
(119)
|
609
|
|
|
|
|
|
|
Net income
(loss)
|
3,269
|
(653)
|
618
|
(122)
|
7
|
|
|
|
|
|
|
Net income (loss)
per ordinary share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
0.11
|
(0.02)
|
0.02
|
0.00
|
0.00
|
|
|
|
|
|
|
Diluted
|
0.11
|
(0.02)
|
0.02
|
0.00
|
0.00
|
|
|
|
|
|
|
Weighted average
number of
|
|
|
|
|
|
ordinary shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
30,457
|
29,993
|
30,476
|
30,046
|
30,040
|
|
|
|
|
|
|
Diluted
|
30,542
|
29,993
|
30,556
|
30,046
|
30,044
|
|
|
|
|
Camtek
Ltd.
|
Reconciliation of
GAAP To Non-GAAP results
|
|
|
|
(In thousands,
except share data)
|
|
|
|
Nine Months
ended
|
Three Months
ended
|
Year
ended
|
|
September
30,
|
September
30,
|
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
|
3,269
|
(653)
|
618
|
(122)
|
7
|
Acquisition of Sela
and Printar related expenses (1)
|
639
|
1,517
|
227
|
523
|
(1,949)
|
Inventory and fixed
asset write- downs (2)
|
-
|
-
|
-
|
-
|
4,433
|
Share-based
compensation
|
233
|
429
|
102
|
144
|
377
|
Realization of
deferred tax assets (3)
|
-
|
-
|
-
|
-
|
(1,287)
|
Employee related
charges
|
-
|
-
|
-
|
-
|
490
|
Non-GAAP net
income
|
4,141
|
1,293
|
947
|
545
|
2,071
|
|
|
|
|
|
|
Non –GAAP net
income per share , basic and diluted
|
0.14
|
0.04
|
0.03
|
0.02
|
0.07
|
Gross margin on
GAAP basis
|
46.6%
|
44.6%
|
44.4%
|
44.6%
|
40.3%
|
Reported gross
profit on GAAP basis
|
31,567
|
27,709
|
9,969
|
9,687
|
34,402
|
Acquisition of Sela
and Printar related expenses ( 1)
|
-
|
225
|
-
|
75
|
225
|
Inventory write-downs
(2)
|
-
|
-
|
-
|
-
|
3,915
|
Share-based
compensation
|
33
|
50
|
9
|
22
|
55
|
Employee related
charges (4)
|
-
|
-
|
-
|
-
|
25
|
Non- GAAP gross
margin
|
46.7%
|
45.1%
|
44.5%
|
45.0%
|
45.2%
|
Non-GAAP gross
profit
|
31,600
|
27,984
|
9,978
|
9,784
|
38,622
|
|
|
|
|
|
|
Reported operating
income (loss) attributable to Camtek Ltd. on GAAP basis
|
4,776
|
1,440
|
1,042
|
600
|
1,136
|
Acquisition of Sela
and Printar related expenses (1)
|
-
|
225
|
-
|
75
|
(3,241)
|
Inventory and fixed
asset write- downs (2)
|
-
|
-
|
-
|
-
|
4,433
|
Share-based
compensation
|
200
|
429
|
93
|
144
|
377
|
Employee related
charges
|
-
|
-
|
-
|
-
|
490
|
Non-GAAP operating
income
|
4,976
|
2,094
|
1,135
|
819
|
3,195
|
(1)
|
During the three and
nine months ended September 30, 2014 and 2013 and the twelve months
ended December 31, 2013, the Company recorded acquisition expenses
(income) of $0.2 million, $0.6 million, $0.5 million, $1.5 million
and $(1.9) million, respectively, consisting of: (1) Revaluation
adjustments of $0.2 million, $0.6 million, $0.4 million, $1.3
million and $(2.2) million, respectively, of contingent
consideration and certain future liabilities recorded at fair
value. These amounts are recorded under the finance expenses line
item and (2) $0, $0, $0.07 million, $0.23 million and $0.2 million,
respectively, with respect to amortization of intangible assets
acquired recorded under the cost of revenues line item.
|
|
|
(2)
|
During the three
months and nine months ended September 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.
|
|
|
(3)
|
During the three and
nine months ended September 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
nine months ended September 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.