CAMT Camtek Ltd

FORM 6-K

For the Month of August 2015

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities and Exchange Act of 1934.

 

SIGNATURE

        Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dated: August 3, 2015

 

 

FOR IMMEDIATE RELEASE

CAMTEK ANNOUNCES SECOND QUARTER 2015 RESULTS

Q2 revenues of $25.4 million-17% sequential growth; Q3 revenue guidance of $25.5-27 million

MIGDAL HAEMEK, Israel – August 3, 2015 – Camtek Ltd. (NASDAQ and TASE: CAMT), today announced its financial results for the quarter ended June 30, 2015.

 

Highlights of the Second Quarter 2015

·

Revenues of $25.4 million, up 17% sequentially and 10% year-over-year driven by sales in the advanced packaging semiconductor market;

·

Non-GAAP operating income of $1.2 million; GAAP operating income of $1.1 million;

·

Non-GAAP net income of $0.8 million; GAAP net income of $0.6 million;

·

Continued growth expected into Q3: guidance of $25.5 to 27 million;

 

Management Comment

Rafi Amit, Camtek’s Chairman and CEO, commented, “We continue to see strength in our semiconductor sales, with important strategic orders of our system supporting advanced packaging and CMOS image sensor (CIS) applications into new and existing customers. These sales are driving the growth in our semiconductor business.”

Continued Mr. Amit, “We are very pleased with the on-going feedback received from customers who are evaluating the Gryphon system. We recently launched a demo center in China to allow our Taiwanese and Chinese customers the opportunity to see in operation the next generation model, the Gryphon SL, which enables both legend and solder mask deposition. The Gryphon is a brand new and disruptive technology for the PCB industry, designed to replace current solder mask and legend deposition; as such, the sales process for Gryphon is extended and is taking longer than our normal sale cycle. In the coming months, we expect to install a number of additional systems at customers’ sites in Asia and in the US. We believe that we will start recognizing revenues from the Gryphon in 2016.”

“Our third quarter revenue guidance is $25.5-27 million. We are expecting Q3 to be stronger than Q2, based on the success at our existing customers and the penetration of new accounts, coupled with growth of our market segments.  We are on track for a strong year for our semiconductor sales in 2015 with expected double digit year-over-year growth.” concluded Mr. Amit.

 

 

Second quarter 2015 Financial Results

Revenues for the second quarter of 2015 were $25.4 million. This compares to second quarter 2014 revenues of $23.1 million and first quarter 2015 revenues of $21.8 million.

Gross profit on a GAAP basis in the quarter totaled $10.9 million (42.7% of revenues), compared to $11.5 million (49.5% of revenues) in the second quarter 2014 and $9.8 million in the first quarter of 2015 (45.1% of revenues). The gross margin in the second quarter of last year was particularly high due to a specific high-margin sale in that quarter. In the second quarter of 2015, the gross margin was below the normal range due to less favorable product mix sold in the quarter.

 

Gross profit on a non-GAAP basis in the quarter totaled $10.9 million (43.7% of revenues), compared to $11.5 million (49.5% of revenues) in the second quarter 2014 and $9.8 million in the first quarter of 2015 (45.2% of revenues).

Operating profit on a GAAP basis in the quarter totaled $1.1 million (4.3% of revenues), compared to $2.6 million (11.1% of revenues) in the second quarter 2014 and $1.1 million in the first quarter of 2015 (5.2% of revenues). General and administrative expenses were particularly high in the quarter due to some additional legal expenses which were incurred in in connection with ongoing patent litigation.

 

Operating profit on a non-GAAP basis in the quarter totaled $1.2 million (4.5% of revenues), compared to $2.6 million (11.5% of revenues) in the second quarter 2014 and $1.2 million in the first quarter of 2015 (5.5% of revenues).

Financial expenses on a GAAP basis in the quarter totaled $193 thousand, compared to $330 thousand in the second quarter 2014 and $847 thousand in the first quarter of 2015.

Financial expenses on a non-GAAP basis in the quarter totaled $75 thousand, compared to $124 thousand in the second quarter 2014 and $627 thousand in the first quarter of 2015.

Net income on a GAAP basis in the quarter totaled $647 thousand, or $0.02 per diluted share. This compares to net income of $2.0 million, or $0.07 per diluted share, in the second quarter 2014 and a net income of $52 thousand, or $0.00 per diluted share, in the first quarter of 2015.

Net income on a non-GAAP basis in the quarter totaled $825 thousand, or $0.03 per diluted share. This compares to net income of $2.3 million, or $0.08 per diluted share, in the second quarter 2014 and a net income of $335 thousand, or $0.01 per diluted share, in the first quarter of 2015.

Cash, cash equivalents, short and long-term restricted deposits, as of June 30, 2015 were $32.1 million (out of which $7.9 million are restricted deposits) compared to $21.9 million as of March 31, 2015. During the second quarter, the Company raised net cash in the amount of $12 million in a secondary public offering. Operating cash flow during the quarter was negative $2.0 million. This was as a result of investment in working capital to support the expected growth in sales.

 

Conference Call

Camtek will host a conference call today, August 3, 2015, 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 4:00 pm Israel 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

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(In thousands)

 

		June 30,				December 31,
		2015				2014
		U.S. Dollars (In thousands)
Assets
Current assets
Cash and cash equivalents			24,235				18,220
Short-term deposits			-				8,607
Trade accounts receivable, net			30,092				22,341
Inventories			28,387				24,650
Due from affiliated companies			343				501
Other current assets			3,204				2,382
Deferred tax asset			858				858
Total current assets			87,119				77,559
Fixed assets, net			12,731				13,025
Long term inventory			1,870				1,476
Long-term restricted deposit			7,875				729
Deferred tax asset			771				891
Other assets, net			348				348
Intangible assets, net			903				928
Goodwill			1,555				1,555
			13,322				5,927
Total assets			113,172				96,511
Liabilities and shareholders’ equity
Current liabilities
Trade accounts payable			12,661				9,490
Other current liabilities			17,216				16,279
Total current liabilities			29,877				25,769
Long term liabilities
Liability for employee severance benefits			779				860
Other long term liabilities			4,044				4,150
			4,823				5,010
Total liabilities			34,700				30,779
Shareholders’ equity
Ordinary shares NIS 0.01 par value, authorized 100,000,000 shares,
37,242,880 issued as of June 30, 2015 and 32,586,898 issued as of December 31, 2014, outstanding 35,150,504
as of June 30, 2015 and 30,494,522 as of December 31, 2014			148				134
Additional paid-in capital			75,492				63,465
Retained earnings			4,730				4,031
			80,370				67,630
Treasury stock, at cost (2,092,376  as of June 30, 2015 and December 31, 2014)			(1,898	)			(1,898	)
Total shareholders' equity			78,472				65,732
Total liabilities and shareholders' equity			113,172				96,511

 

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(in thousands, except share data)

 

		Six Months ended June 30,								Three Months ended June 30,								Year ended December 31,
		2015				2014				2015				2014				2014
		U.S. dollars								U.S. dollars								U.S. dollars
Revenues			47,162				45,270				25,412				23,161				88,313
Cost of revenues			26,488				23,672				14,557				11,693				47,294
Gross profit			20,674				21,598				10,855				11,468				41,019
Research and development costs			6,954				6,964				3,554				3,530				14,406
Selling, general and administrative expenses			11,489				10,900				6,208				5,374				21,417
Reorganization and impairment			-				-				-				-				60
			18,443				17,864				9,762				8,904				35,883
Operating income			2,231				3,734				1,093				2,564				5,136
Financial expenses, net			(1,040	)			(694	)			(193	)			(329	)			(1,220	)
Income before income
taxes			1,191				3,040				900				2,235				3,916
Income tax			(492	)			(389	)			(253	)			(223	)			(579	)
Net income			699				2,651				647				2,012				3,337
Net income per ordinary share:
Basic			0.02				0.09				0.02				0.07				0.11
Diluted			0.02				0.09				0.02				0.07				0.11
Weighted average number of
ordinary shares outstanding:
Basic			31,518				30,447				32,530				30,467				30,464
Diluted			31.654				30,534				32,742				30,534				30,545

 

Camtek Ltd.

Reconciliation of GAAP To Non-GAAP results

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(In thousands, except share data)

		Six Months ended June 30,								Three Months ended June 30,								Year ended December 31,
		2015				2014				2015				2014				2014
		U.S. dollars								U.S. dollars								U.S. dollars
Reported net income (loss) attributable to Camtek Ltd. on GAAP basis			699				2,651				647				2,012				3,337
Acquisition of Sela and Printar related expenses (1)			341				412				118				206				903
Share-based compensation			120				131				60				92				309
Non-GAAP net income			1,160				3,194				825				2,310				4,549
Non –GAAP net income  per share , basic and diluted			0.04				0.10				0.03				0.08				0.15
Gross margin on GAAP basis			43.8	%			47.7	%			42.7	%			49.5	%			46.4	%
Reported gross profit on GAAP basis			20,674				21,598				10,855				11,468				41,019
Acquisition of Sela and Printar related expenses ( 1)			-				-				-				-				264
Share-based compensation			10				24				5				8				42
Non- GAAP gross margin			20,684				47.7	%			10,860				49.5	%			46.8	%
Non-GAAP gross profit			43.9	%			21,622				42.7	%			11,476				41,325
Reported operating income attributable to Camtek Ltd. on GAAP basis			2,231				3,734				1,093				2,564				5,136
Acquisition of Sela and Printar related expenses (1)			-				-				-				-				264
Share-based compensation			120				123				60				84				309
Non-GAAP operating income			2,351				3,857				1,153				2,648				5,709

During the three and the six months ended June 30, 2015 and 2014 and the twelve months ended December 31, 2014, the Company recorded acquisition expenses of $0.1 million, $0.3 million, $0.2 million, $0.4 million and $0.9 million, respectively, consisting of: (1) Revaluation adjustments of $0.1 million, $0.3 million, $0.2 million, $0.4 million and $0.6 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 $0.3 million, respectively.

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