MIGDAL HAEMEK, Israel,
Aug. 3, 2017 /PRNewswire/ -- Camtek
Ltd. (NASDAQ: CAMT) (TASE: CAMT), today announced its financial
results for the quarter ended June 30,
2017.
Recent Highlights
- Signed an agreement to sell the PCB business for up to
$35 million;
- Reached final settlement with Rudolph Technologies; and
- Adjusted FIT related expenses to a run rate of $100-125K per quarter.
Financial Highlights of the Second Quarter 2017
- Total revenues (including revenue from the discontinued PCB
operations) were $34.3 million, ahead
of the guidance range;
- Record revenues in the semiconductor segment of $22.7 million, up 14% year over year;
- GAAP net loss of $3.9 million;
mainly due to the $13 million
settlement charge
- Non-GAAP net income of $3.8
million;
- Strong operating cash flow of $3.8
million; end of quarter net cash of $27.1 million;
Guidance for the Second Half of 2017
Due to the significant business changes that Camtek has
undergone, Camtek is providing additional metrics to enable
investors and analysts to better model the new business structure
for the remainder of 2017.
Third quarter revenues (semiconductors only) are expected to be
between $23-24 million, a
year-over-year increase of 12% with gross margins at around 50% and
double-digit operating margins.
Fourth quarter revenues are expected to be slightly higher than
those of the third quarter while operating costs are expected to
reduce and benefit from the reduction in legal and FIT expenses.
Non-GAAP operating margins are expected to improve to an
approximately 15% in the fourth quarter of 2017 with continued
improvement in 2018.
Due to the expected sale of Camtek's PCB business, the
results of this unit ceased to be consolidated into Camtek's
financial statements and are accounted for as discontinued
operations in both the current period ended June 30, 2017 as well as the comparative periods.
Following the settlement with Rudolph Technologies, there is a
one-time charge of $13 million on
GAAP net income in the second quarter 2017 results. This amount is
excluded from the non-GAAP results. A reconciliation between the
GAAP and non-GAAP results appears in the tables at the end of this
press release.
Rafi Amit, Camtek's CEO,
commented, "The past few months have been very significant for
Camtek from a strategic perspective. We are divesting our PCB
business at a time of positive momentum in that sector, to a
Shanghai-based private equity
fund. Following our decision to focus on ink development and a
strategic cooperation with a world leading ink developer and
manufacturer, we managed to adjust our FIT-related expenses. We
also settled outstanding IP litigation which has been an overhang
for more than a decade, and this allows us to significantly reduce
our ongoing legal-related expenses. Following these initiatives,
Camtek has now become a focused semiconductor inspection and
metrology company. We have a very strong balance sheet, opening up
many potential opportunities on which we intend to capitalize. Our
goal is to cement ourselves as the leading advanced packaging
inspection and metrology Company for the semiconductor
industry."
"Looking ahead, we expect to see longer-term higher revenue
growth rates for Camtek. Additionally, we expect to demonstrate
higher gross margins and lower operating expenses, leading to
significantly improved operating margins. This should be evident
already in the coming quarters, and we expect our fourth quarter
results to demonstrate approximately 15% operating margin with
potential for further improvement in 2018," continued Mr.
Amit.
Concluded Mr. Amit, "We believe the recent actions we
have taken will enable the value in Camtek to become more apparent
and increase shareholder value. We look forward to taking our
business to the next level over the coming years, with even greater
vigor and focus."
Second Quarter 2017 Financial Results
Revenues for the second quarter of 2017 were $22.7 million. This compares to second quarter
2016 revenues of $19.8 million, a
growth of 14%. Revenues do not include those of the PCB business,
whose sale is expected to close in the third quarter, which are
accounted for as discontinued operations.
Gross profit on a GAAP and non-GAAP basis in the quarter
totaled $11.2 million (49.2% of
revenues), compared to $10.0 million
(50.5% of revenues) in the second quarter 2016. The variance in the
gross margin is a function of the product and sales mix in the
quarter.
Operating loss on a GAAP basis in the quarter totaled
$11.0 million, compared to an
operating income of $0.8 million
(3.9% of revenues), in the second quarter 2016. This includes the
one-time $13 million charge for the
Rudolph settlement.
Operating profit on a non-GAAP basis in the quarter
totaled $2.1 million (9.2% of
revenues), compared to $0.9 million
(4.5% of revenues), in the second quarter 2016.
Net loss on a GAAP basis in the quarter totaled
$3.9 million, or $0.11 per share. This compares to net income of
$1.3 million, or $0.04 per diluted share, in the second quarter
2016. This includes a deferred tax income of $5.5 million and the results of the discontinued
operations.
Net income on a non-GAAP basis in the quarter totaled
$3.8 million, or $0.11 per diluted share. This compares to net
income of $1.5 million, or
$0.04 per diluted share, in the
second quarter 2016.
Cash and cash equivalents as of June 30, 2017 were $27.1
million compared to $24.3
million as of March 31, 2017.
The $13 million settlement amount is
expected to be paid in the third quarter. The Company reported a
positive operating cash flow of $3.7
million during the quarter.
Conference Call
Camtek will host a conference call today, August 3, 2017, at 9:00 am
ET.
Rafi Amit, CEO, Moshe Eisenberg, CFO and Ramy Langer, VP Head of the Semiconductors
Division 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:
|
1 888 407
2553
|
at 9:00 am Eastern
Time
|
Israel:
|
03 918
0610
|
at 4:00 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 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 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:
(i) settlement expenses; (ii) tax benefits; (iii) share based
compensation expenses; (iv) write off of inventory and fixed-assets
related to the discontinued FIT product line; and (v) revaluation
of liabilities with respect to the acquisition of Printar, 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)
|
|
|
June
30,
|
December
31,
|
|
2017
|
2016
|
|
U.S. Dollars (In
thousands)
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
27,122
|
19,740
|
Trade accounts
receivable, net
|
21,371
|
22,066
|
Inventories
|
20,681
|
16,647
|
Due from affiliated
companies
|
367
|
-
|
Other current
assets
|
1,506
|
2,039
|
Deferred tax
asset
|
4,649
|
894
|
Current assets held
for sale
|
27,030
|
25,018
|
|
|
|
Total current
assets
|
102,726
|
86,404
|
|
|
|
|
|
|
Fixed assets,
net
|
15,618
|
13,725
|
|
|
|
Long-term
inventory
|
1,390
|
1,461
|
Deferred tax
asset
|
4,894
|
3,179
|
Other assets,
net
|
270
|
270
|
Intangible assets,
net
|
474
|
519
|
|
|
|
|
7,028
|
5,429
|
|
|
|
Total
assets
|
125,372
|
105,558
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
Current
liabilities
|
|
|
Trade accounts
payable
|
12,515
|
10,304
|
Other current
liabilities
|
29,308
|
14,722
|
Due to affiliated
companies
|
-
|
18
|
Current liabilities
held for sale
|
9,423
|
6,482
|
|
|
|
Total current
liabilities
|
51,246
|
31,526
|
|
|
|
Long term
liabilities
|
|
|
Liability for
employee severance benefits
|
928
|
667
|
|
928
|
667
|
|
|
|
Total
liabilities
|
52,174
|
32,193
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
|
Ordinary shares NIS 0.01
par value, 100,000,000 shares authorized at June 30, 2017 and at
December 31, 2016; 37,490,367 issued shares at June 30,
2017 and 37,440,552 at December 31, 2016; 35,397,911
shares outstanding at June 30, 2016 and 35,348,176 at December 31,
2016
|
148
|
148
|
Additional paid-in
capital
|
76,874
|
76,463
|
Accumulated
losses
|
(1,926)
|
(1,348)
|
|
75,096
|
75,263
|
Treasury stock, at
cost (2,092,376 as of June 30, 2017 and
December 31, 2016)
|
(1,898)
|
(1,898)
|
|
|
|
Total shareholders'
equity
|
73,198
|
73,365
|
|
|
|
Total liabilities
and shareholders' equity
|
125,372
|
105,558
|
* On
July 18, 2017, Camtek signed a
definitive agreement with an affiliate of Principle Capital, a
Shanghai-based privet-equity fund,
to sell its PCB business. In accordance with U.S. generally
accepted accounting principles ("U.S. GAAP"), the financial
position and results of operations of the PCB business are
presented as discontinued operation and, as such, have been
excluded from continuing operation for all period presented.
Camtek
Ltd.
|
Consolidated
Statements of Operations
|
(in thousands,
except share data)
|
|
|
Six Months
ended
|
|
Three Months
ended
|
Year
ended
|
|
|
June
30,
|
|
June
30,
|
December
31,
|
|
|
2017
|
2016
|
|
2017
|
2016
|
2016
|
|
U.S.
dollars
|
|
U.S.
dollars
|
U.S.
dollars
|
|
Revenues
|
43,828
|
36,669
|
|
22,682
|
19,835
|
79,228
|
Cost of
revenues
|
22,384
|
18,665
|
|
11,527
|
9,828
|
41,807
|
Reorganization and
impairment
|
-
|
-
|
|
-
|
-
|
4,931
|
|
|
|
|
|
|
|
Gross
profit
|
21,444
|
18,004
|
|
11,155
|
10,007
|
32,490
|
|
|
|
|
|
|
|
Research and
development costs
|
6,852
|
6,497
|
|
3,413
|
3,295
|
12,630
|
Selling, general and
administrative expenses
|
11,159
|
10,887
|
|
5,754
|
5,936
|
21,900
|
Reorganization and
impairment
|
-
|
-
|
|
-
|
-
|
(4,059)
|
Expenses from
settlement
|
13,000
|
-
|
|
13,000
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
(9,567)
|
620
|
|
(11,012)
|
776
|
2,019
|
|
|
|
|
|
|
|
Financial expenses,
net
|
(209)
|
(379)
|
|
(56)
|
(160)
|
(847)
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
|
|
|
|
|
|
before
income taxes
|
(9,776)
|
241
|
|
(11,068)
|
616
|
1,172
|
|
|
|
|
|
|
|
Income tax benefit
(expense)
|
5,364
|
(147)
|
|
5,404
|
(108)
|
(303)
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
(4,412)
|
94
|
|
(5,664)
|
508
|
869
|
|
|
|
|
|
|
|
Discontinued
operation
|
|
|
|
|
|
|
Income from
discontinued operation
|
|
|
|
|
|
|
Income before tax
benefit (expense)
|
4,339
|
1,499
|
|
1,981
|
984
|
4,450
|
Income tax benefit
(expense)
|
(505)
|
(284)
|
|
(194)
|
(207)
|
(585)
|
|
|
|
|
|
|
|
Income from
discontinued operation
|
3,834
|
1,215
|
|
1,787
|
777
|
3,865
|
|
|
|
|
|
|
|
Net income
(loss)
|
(578)
|
1,309
|
|
(3,877)
|
1,285
|
4,734
|
|
|
|
|
|
|
|
Net income (loss)
per ordinary share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings from
continuing operation
|
(0.12)
|
0.00
|
|
(0.16)
|
0.01
|
0.02
|
|
|
|
|
|
|
|
Basic earnings from
discontinued operation
|
0.11
|
0.03
|
|
0.05
|
0.02
|
0.11
|
|
|
|
|
|
|
|
Diluted earnings
from continuing operation
|
(0.12)
|
0.00
|
|
(0.16)
|
0.01
|
0.02
|
|
|
|
|
|
|
|
Diluted earnings
from discontinued
|
|
|
|
|
|
|
operation
|
0.11
|
0.03
|
|
0.05
|
0.02
|
0.11
|
|
|
|
|
|
|
|
Weighted average
number of
|
|
|
|
|
|
|
ordinary
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
35,359
|
35,348
|
|
35,369
|
35,348
|
35,348
|
|
|
|
|
|
|
|
Diluted
|
35,359
|
35,359
|
|
35,369
|
35,358
|
35,376
|
|
|
|
|
|
|
|
* On
July 18, 2017, Camtek signed a
definitive agreement with an affiliate of Principle Capital, a
Shanghai-based privet-equity fund,
to sell its PCB business. In accordance with U.S. generally
accepted accounting principles ("U.S. GAAP"), the financial
position and results of operations of the PCB business are
presented as discontinued operation and, as such, have been
excluded from continuing operation for all period presented.
Camtek
Ltd.
|
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,
|
|
2017
|
2016
|
2017
|
2016
|
2016
|
|
U.S.
dollars
|
U.S.
dollars
|
U.S.
dollars
|
|
|
|
|
|
|
Reported net income
(loss) attributable to Camtek Ltd. on GAAP basis
|
(578)
|
1,309
|
(3,877)
|
1,285
|
4,734
|
Settlement expense,
net of tax (1)
|
12,025
|
-
|
12,025
|
-
|
-
|
Realization of
deferred tax assets (2)
|
(4,495)
|
-
|
(4,495)
|
-
|
-
|
Effect of FIT
reorganization (3)
|
-
|
-
|
-
|
-
|
872
|
Acquisition of Sela
and Printar related expenses (4)
|
-
|
183
|
-
|
93
|
183
|
Share-based
compensation
|
184
|
173
|
92
|
108
|
363
|
Attributable to
discontinued operations
|
43
|
28
|
22
|
14
|
66
|
|
|
|
|
|
|
Non-GAAP net
income
|
7,179
|
1,693
|
3,767
|
1,500
|
6,218
|
|
|
|
|
|
|
Non –GAAP net
income per share , basic and diluted
|
0.20
|
0.05
|
0.11
|
0.04
|
0.18
|
Gross margin on
GAAP basis from continuing operations
|
48.9%
|
49.1%
|
49.2%
|
50.5%
|
41.0%
|
Reported gross
profit on GAAP basis
|
21,444
|
18,004
|
11,155
|
10,007
|
32,490
|
Effect of FIT
reorganization (3)
|
-
|
-
|
-
|
-
|
4,931
|
Share-based
compensation
|
19
|
17
|
9
|
15
|
31
|
|
|
|
|
|
|
Non- GAAP gross
margin
|
21,463
|
18,021
|
11,164
|
10,022
|
47.3%
|
Non-GAAP gross
profit
|
48.9%
|
49.1%
|
49.2%
|
50.5%
|
37,452
|
|
|
|
|
|
|
Reported operating
income (loss) attributable to Camtek Ltd. on GAAP basis
from continuing operations
|
(9,567)
|
620
|
(11,012)
|
776
|
2,019
|
Settlement expense
(1)
|
13,000
|
-
|
13,000
|
-
|
-
|
Effect of FIT
reorganization (3)
|
-
|
-
|
-
|
-
|
872
|
Share-based
compensation
|
184
|
173
|
92
|
108
|
363
|
|
|
|
|
|
|
Non-GAAP operating
income
|
3,617
|
793
|
2,080
|
884
|
3,254
|
(1) During the three and the six months
ended June 30, 2017, the Company
recorded a provision of $13 million
($12 million net of tax) in
conjunction settlement with Rudolph Technologies Inc.
(2) During the three and the six months
ended June 30, 2017 the Company
recorded net income of $4.5 million
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.
(3) During the year ended December 31, 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 $5.0 million, recorded under operating
expenses.
(4) During the three and the six months
ended June 30, 2016 and the twelve
months ended December 31, 2016, the
Company recorded acquisition expenses of $0.2 million, $0.1
million and $0.2 million,
respectively, consisting of revaluation adjustments of $0.2 million, $0.1
million and $0.2 million,
respectively, of contingent consideration and certain future
liabilities recorded at fair value. These amounts are recorded
under finance expenses line item.
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
|
View original
content:http://www.prnewswire.com/news-releases/camtek-announces-second-quarter-2017-results-300499029.html
SOURCE Camtek Ltd