MIGDAL HAEMEK, Israel,
Nov. 7, 2016 /PRNewswire/ --
Camtek Ltd. (NASDAQ: CAMT; TASE: CAMT), today announced its
financial results for the quarter ended September 30, 2016.
Highlights of the Third Quarter 2016
- Revenues of $28.5 million, 4%
sequential increase;
- GAAP operating income of $1.7
million, representing 5.8% operating margins; Non-GAAP
operating income of $2.7 million,
representing 9.5% operating margins;
- GAAP operating profit includes a one-time net expense of
$0.9 million due the reorganization
of the FIT activity;
- GAAP net income of $1.1 million;
Non-GAAP net income of $2.1
million;
- Expecting continued growth driven by semiconductor advance
packaging applications:
- Fourth quarter revenue guidance of $28.5
million to $29.5 million, bringing full year 2016 revenues
to a record $109 million in the
mid-point of the guidance.
Rafi Amit, Camtek's Chairman
and CEO, commented, "We are very pleased with the results of
this quarter and our revenue guidance forecasts that 2016 will end
as a record year for us. Our ongoing revenue growth was once again
driven by solid performance in our semiconductor business.
Approximately 40% of the systems shipped this quarter will be used
in the advanced packaging market. As this market segment remains
strong, we continue our penetration to the advanced packaging 2D
inspection with new customers for Fan-out applications using our
unique inspection capabilities."
Added Mr. Amit, "We are also pleased with our improvement
in profitability which was mainly due to lower operating expenses.
Furthermore, following the reorganization of our digital printing
activity in August, we expect to see additional operating expense
savings ahead. We therefore look forward to demonstrating increased
profitability margins for Camtek in the quarters ahead."
Third Quarter 2016 Financial Results
Revenues for the third quarter of 2016 were $28.5 million. This compares to third quarter
2015 revenues of $26.3 million, a
growth of 8% and prior quarter revenues of $27.3 million, an increase of 4%.
Gross profit on a GAAP basis in the quarter totaled
$7.5 million (26.2% of revenues),
compared to $11.8 million (44.8% of
revenues) in the third quarter 2015 and $12.7 million in the prior quarter (46.7% of
revenues). The gross profit on a GAAP basis includes the
$4.9 million effect of the FIT
re-organization including the write-off of inventory and other
one-time expenses.
Gross profit on a non-GAAP basis in the quarter totaled
$12.4 million (43.6% of revenues),
compared to $11.8 million (44.9% of
revenues) in the third quarter 2015 and $12.8 million in the prior quarter (46.8% of
revenues).
Operating profit on a GAAP basis in the quarter totaled
$1.7 million (5.8% of revenues),
compared to $1.8 million (6.8% of
revenues) in the third quarter 2015 and an operating profit of
$1.7 million (6.4% of revenues) in
the prior quarter. The operating profit included a one-time net
expense of $0.9 million due the
reorganization of the FIT activity. This one-time expense includes
a $5.6 million inventory and fixed
asset write-off, other expenses of $0.3
million, partially offset by income of $5.0 million related to a write-off of
liabilities to the Office of the Chief Scientist in Israel.
Operating profit on a non-GAAP basis in the quarter,
which excludes the above-mentioned one-time expenses, totaled
$2.7 million (9.3% of revenues),
compared to $1.9 million (7.1% of
revenues) in the third quarter 2015 and $1.9
million in the prior quarter (6.8% of revenues).
Net income on a GAAP basis in the quarter totaled
$1.1 million, or $0.03 per diluted share. This compares to net
income of $1.0 million, or
$0.03 per diluted share, in the third
quarter 2015 and a net income of $1.3
million, or $0.04 per diluted
share, in the prior quarter.
Net income on a non-GAAP basis in the quarter totaled
$2.1 million, or $0.06 per diluted share. This compares to net
income of $1.2 million, or
$0.03 per diluted share, in the third
quarter 2015 and a net income of $1.5
million, or $0.04 per diluted
share, in the prior quarter.
Cash, cash equivalents, short and long-term restricted
deposits, as of September 30,
2016 were $19.7 million
compared to $38.7 million as of
December 31, 2015. The Company
reported a positive operating cash flow of $3.0 million during the quarter (excluding the
$14.6 million payment to Rudolph for
the IP litigation).
Conference Call
Camtek will host a conference call today, Monday, November 7, 2016, at 9:30 am ET.
Rafi Amit, Chairman and CEO, and
Moshe Eisenberg, CFO, 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 9:30 am Eastern
Time
|
Israel:
|
03 918
0610
|
at 4:30 pm Israel
Time
|
International:
|
+972 3 918
0610
|
|
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.
ABOUT CAMTEK LTD.
Camtek Ltd. provides automated and technologically advanced
solutions dedicated to enhancing production processes, increasing
products yield and reliability, enabling and supporting customers'
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.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, 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) write off of inventory and fixed-assets
related to the discontinued FIT product line; (ii) revaluation of
liabilities with respect to the acquisition of Printar; (iii) the
impact of reorganization and impairment charges; and (iv) 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,
|
|
2016
|
|
2015
|
|
U.S. Dollars (In
thousands)
|
Assets
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
19,691
|
|
30,833
|
Short-term restricted
deposits
|
-
|
|
7,875
|
Trade accounts
receivable, net
|
32,879
|
|
27,003
|
Inventories
|
24,816
|
|
27,599
|
Due from affiliated
companies
|
596
|
|
559
|
Other current
assets
|
1,808
|
|
1,712
|
Deferred tax
asset
|
177
|
|
177
|
|
|
|
|
Total current
assets
|
79,967
|
|
95,758
|
|
|
|
|
Fixed assets,
net
|
14,022
|
|
13,531
|
|
|
|
|
Long term
inventory
|
1,734
|
|
1,979
|
Deferred tax
asset
|
3,835
|
|
3,955
|
Other assets,
net
|
248
|
|
248
|
Intangible assets,
net
|
875
|
|
795
|
|
|
|
|
|
6,692
|
|
6,977
|
|
|
|
|
Total
assets
|
100,681
|
|
116,266
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
Trade accounts
payable
|
11,490
|
|
11,812
|
Other current
liabilities
|
17,358
|
|
30,712
|
|
|
|
|
Total current
liabilities
|
28,848
|
|
42,524
|
|
|
|
|
Long term
liabilities
|
|
|
|
Liability for
employee severance benefits
|
925
|
|
772
|
Other long term
liabilities
|
-
|
|
4,768
|
|
925
|
|
5,540
|
|
|
|
|
Total
liabilities
|
29,773
|
|
48,064
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
Ordinary shares NIS
0.01 par value, 100,000,000 shares authorized at
September 30, 2016 and at December 31, 2015;
|
|
|
|
37,440,552 issued
shares at September 30, 2016 and at December
31, 2015;
|
|
|
|
35,348,176 shares
outstanding at September 30, 2016 and at December 31,
2015
|
148
|
|
148
|
Additional paid-in
capital
|
76,353
|
|
76,034
|
Retained
earnings
|
(3,695)
|
|
(6,082)
|
|
72,806
|
|
70,100
|
Treasury stock, at
cost (2,092,376 as of September 30, 2016 and December
31, 2015)
|
(1,898)
|
|
(1,898)
|
|
|
|
|
Total shareholders'
equity
|
70,908
|
|
68,202
|
|
|
|
|
Total liabilities
and shareholders' equity
|
100,681
|
|
116,266
|
Consolidated
Statements of Operations
|
(in thousands,
except share data)
|
|
|
Nine Months
ended
September
30,
|
|
Three
Months
ended September
30,
|
|
Year
ended
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2015
|
|
U.S.
dollars
|
|
U.S.
dollars
|
|
U.S.
dollars
|
Revenues
|
80,192
|
|
73,499
|
|
28,454
|
|
26,337
|
|
99,275
|
Cost of
revenues
|
44,721
|
|
41,019
|
|
16,054
|
|
14,531
|
|
56,149
|
Reorganization
|
*4,931
|
|
-
|
|
*4,931
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
30,540
|
|
32,480
|
|
7,469
|
|
11,806
|
|
43,126
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development costs
|
11,949
|
|
10,614
|
|
3,866
|
|
3,660
|
|
14,860
|
Selling, general and
administrative expenses
|
18,879
|
|
17,847
|
|
5,998
|
|
6,358
|
|
23,587
|
Reorganization
|
**(4,059)
|
|
-
|
|
**(4,059)
|
|
-
|
|
138
|
Loss from
litigation
|
-
|
|
-
|
|
-
|
|
-
|
|
14,600
|
|
26,769
|
|
28,461
|
|
5,805
|
|
10,018
|
|
53,185
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
3,771
|
|
4,019
|
|
1,664
|
|
1,788
|
|
(10,059)
|
|
|
|
|
|
|
|
|
|
|
|
Financial expenses,
net
|
(592)
|
|
(1,489)
|
|
(225)
|
|
(449)
|
|
(1,877)
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
before income
|
|
|
|
|
|
|
|
|
|
taxes
|
3,179
|
|
2,530
|
|
1,439
|
|
1,339
|
|
(11,936)
|
|
|
|
|
|
|
|
|
|
|
Income tax
|
(792)
|
|
(836)
|
|
(361)
|
|
(344)
|
|
1,823
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
2,387
|
|
1,694
|
|
1,078
|
|
995
|
|
(10,113)
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
per ordinary share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
0.07
|
|
0.05
|
|
0.03
|
|
0.03
|
|
(0.30)
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
0.07
|
|
0.05
|
|
0.03
|
|
0.03
|
|
(0.30)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of
|
|
|
|
|
|
|
|
|
|
ordinary
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
35,348
|
|
32,742
|
|
35,348
|
|
35,150
|
|
33,352
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
35,367
|
|
32,873
|
|
35,381
|
|
35,200
|
|
33,352
|
|
|
|
|
(*) Consists of
inventory write-off in the amount of $4,841 and other expenses
related to FIT reorganization.
|
(**) $4,962 OCS
liability write-off offset by fixed asset write-off and other
expenses related to FIT reorganization.
|
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,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2015
|
|
U.S.
dollars
|
|
U.S.
dollars
|
|
U.S.
dollars
|
Reported net income
(loss) attributable to
Camtek Ltd. on GAAP
basis
|
2,387
|
|
1,694
|
|
1,078
|
|
995
|
|
(10,113)
|
Effect of FIT
reorganization (1)
|
872
|
|
-
|
|
872
|
|
-
|
|
-
|
Acquisition of Sela
and Printar related expenses (2)
|
183
|
|
463
|
|
-
|
|
122
|
|
751
|
Inventory write-downs
(3)
|
-
|
|
-
|
|
-
|
|
-
|
|
1,041
|
Loss from litigation,
net of tax (4)
|
-
|
|
-
|
|
-
|
|
-
|
|
13,286
|
Share-based
compensation
|
319
|
|
212
|
|
118
|
|
92
|
|
270
|
Non-GAAP net
income
|
3,761
|
|
2,369
|
|
2,068
|
|
1,209
|
|
5,235
|
|
|
|
|
|
|
|
|
|
|
Non –GAAP net
income per share ,
basic and
diluted
|
0.06
|
|
0.07
|
|
0.04
|
|
0.03
|
|
0.16
|
Gross margin on
GAAP basis
|
38.1%
|
|
44.2%
|
|
26.2%
|
|
44.8%
|
|
43.4%
|
Reported gross
profit on GAAP basis
|
30,540
|
|
32,480
|
|
7,469
|
|
11,806
|
|
43,126
|
Effect of FIT
reorganization (1)
|
4,931
|
|
-
|
|
4,931
|
|
-
|
|
-
|
Inventory write-downs
(3)
|
-
|
|
-
|
|
-
|
|
-
|
|
1,041
|
Share-based
compensation
|
33
|
|
17
|
|
10
|
|
7
|
|
24
|
Non- GAAP gross
margin
|
35,504
|
|
32,497
|
|
12,410
|
|
11,813
|
|
44,191
|
Non-GAAP gross
profit
|
44.3%
|
|
44.2%
|
|
43.6%
|
|
44.9%
|
|
44.5%
|
|
|
|
|
|
|
|
|
|
|
Reported operating
income attributable
to Camtek Ltd. on GAAP basis
|
3,771
|
|
4,019
|
|
1,664
|
|
1,788
|
|
(10,059)
|
Effect of FIT
reorganization (1)
|
872
|
|
-
|
|
872
|
|
-
|
|
-
|
Acquisition of Sela
and Printar related
expenses
(2)
|
-
|
|
-
|
|
-
|
|
-
|
|
138
|
Inventory write-downs
(3)
|
-
|
|
-
|
|
-
|
|
-
|
|
1,041
|
Share-based
compensation
|
319
|
|
212
|
|
118
|
|
92
|
|
271
|
Loss from litigation
(4)
|
-
|
|
-
|
|
-
|
|
-
|
|
14,600
|
Non-GAAP operating
income
|
4,962
|
|
4,231
|
|
2,654
|
|
1,880
|
|
5,991
|
- During each of the three and nine months periods ended
September 30, 2016, the Company
recorded reorganization costs with regard to the FIT activities of
$0.9 million consisting of: (1)
inventory and fixed asset write-offs of $4.9
million recorded under cost of revenues line item; (2) other
expenses of $0.1 million recorded
under cost of revenues line item; (3) fixed asset write-offs of
$0.7 million recorded under operating
expenses; (4) other expenses of $0.2
million recorded under operating expenses; and (5) income
from write-off of liabilities to OCS of $5.0
million recorded under operating expenses.
- During the three and the nine months ended September 30, 2016 and 2015 and the twelve months
ended December 31, 2015, the Company
recorded acquisition expenses of $0
million, $0.2 million,
$0.1 million, $0.5 million and $0.8
million, respectively, consisting of: (1) Revaluation
adjustments of $0 million,
$0.2 million, $0.1 million, $0.3
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 $0.1 million, respectively.
- During the year ended December 31,
2015, the Company recorded inventory write downs in the
amount of $1.0 million, recorded
under cost of revenues line item.
- During the year ended December 31,
2015, the Company recorded a provision of $14.6 million ($13.3
million net of tax) in conjunction with the final court
ruling on February 3, 2016 in
Camtek's appeal in the patent infringement case of Rudolph
Technologies Inc. regarding the Falcon system.
CAMTEK
LTD.
|
|
INTERNATIONAL
INVESTOR RELATIONS
|
Moshe Eisenberg, CFO
|
|
GK Investor Relations
|
Tel: +972-4-604-8308
|
|
Ehud Helft / Gavriel Frohwein
|
Mobile: +972-54-900-7100
|
|
Tel: (US)
1-646-688-3559
|
moshee@camtek.com
|
|
camtek@gkir.com
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/camtek-announces-third-quarter-2016-results-300358228.html
SOURCE Camtek Ltd