MIGDAL HAEMEK, Israel,
Feb. 7, 2018 /PRNewswire/ -- Camtek Ltd. (NASDAQ: CAMT) (TASE:
CAMT), today announced its financial results for the quarter ended
December 31, 2017.
Highlights of the fourth quarter 2017
- Semiconductor revenues were $25.8
million, up 20% year-over-year, ahead of the upper end of
the previously issued guidance range and a record for the
semiconductor segment;
- GAAP operating income of $3.7
million, representing 14.3% operating margins; non-GAAP
operating income of $3.8 million,
representing 14.8% operating margins
- GAAP net income from continued operations of $3.3 million; non-GAAP net income of $3.5 million; up 333% and 303% year-over-year,
respectively;
- First quarter revenue guidance of $26-27 million, represents approximately 25%
year-over-year growth
Highlights of the full year 2017
- Semiconductors revenues of $93.5
million; 18% year over year increase;
- GAAP operating loss of $3
million; non-GAAP operating income of $10.4 million;
- GAAP net income from continued operations of $1.7 million; non-GAAP net income of $9.6 million;
- Year-end net cash balance of $43.7
million;
Forward Looking Guidance
First quarter 2018 revenues are expected to be between
$26-27 million, representing a
year-over-year increase of approximately 25%. The Company
expects continued double-digit growth in revenues in 2018, with
overall improvement in non-GAAP operating margins.
Due to the completion of the sale of Camtek's PCB business at
the end of the third quarter of 2017, the results of this unit
ceased to be consolidated into Camtek's financial statements.
However, they are accounted for as discontinued operations in the
full year 2017 results, as well as in the comparative periods.
Following the sale of the PCB business, the Company recorded a
one-time income of $12.5 million to
GAAP net income in 2017. In addition, Camtek paid a one-time legal
settlement during 2017 amounting to $13
million. These amounts are excluded from the non-GAAP
results. The reconciliation between the GAAP and non-GAAP results
appears in the tables at the end of this press release. The
comparisons to 2016 results below include the results only of the
continuing operations.
Management Comment
Rafi Amit Camtek's CEO commented, "We are proud to
present strong financial results for 2017. The highlight of the
year was the strategic steps we took of evolving into a pure-play
semiconductor capital equipment company."
Continued Mr. Amit, "We are optimistic with regards to
the year ahead. Our cash and strong balance sheet put us in a
strong position, which enables us to capitalize on potential growth
opportunities. Furthermore, we started the year with our highest
ever backlog level, and we have already seen some strong and early
order momentum. Accordingly, we expect double-digit revenue growth
in 2018, and combined with our strong operating leverage, we expect
to enjoy a strong year of profitability."
The financial results and the comparison to 2016 below
include only those of the continuing operations:
Fourth Quarter 2017 Financial Results
Revenues for the fourth quarter of 2017 were $25.8 million. This compares to fourth quarter
2016 revenues of $21.5 million, a
growth of 20%.
Gross profit on a GAAP and non-GAAP basis in the quarter
totaled $12.3 million (47.7% and
47.8% of revenues, respectively). This is compared to $10.1 million (46.9% of revenue) on a GAAP and
non-GAAP basis in the fourth quarter 2016. The variance in the
non-GAAP gross margin between quarters is a function of the product
and sales mix delivered in the quarter.
Operating profit on a GAAP basis in the quarter totaled
$3.7 million (14.3% of revenues),
compared to an operating profit of $1.1
million (5.1% of revenues) in the fourth quarter 2016.
Operating profit on a non-GAAP basis in the quarter
totaled $3.8 million (14.8% of
revenues), compared to $1.2 million
(5.6% of revenues), in the fourth quarter 2016.
Net income on a GAAP basis in the quarter totaled
$3.3 million, or $0.09 per diluted share compared to net income of
$0.8 million, or $0.02 per diluted share in the fourth quarter
2016.
Net income on a non-GAAP basis in the quarter totaled
$3.5 million, or $0.10 per diluted share, compared to non-GAAP net
income of $0.9 million, or
$0.02 per diluted share, in the
fourth quarter 2016.
Cash and cash equivalents, as of December 31, 2017 were $43.7 million compared to $19.7 million as of December 31, 2016. During the quarter, Camtek
received $24 million in proceeds from
the sale of its PCB business and paid out $5.0 million as a dividend payment to
shareholders.
Full Year 2017 Results Summary
Revenues for 2017 were $93.5
million. This compares to revenues of $79.3 million in 2016, a growth of 18%.
Gross profit on a GAAP basis totaled $45.5 million (48.7% of revenues), compared to
$32.5 million (41.0% of revenues) in
2016. The gross profit on a GAAP basis in 2016 includes a
$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 totaled $45.6 million (48.7% of revenues), compared to
$37.5 million (47.3% of revenues) in
2016.
Operating loss on a GAAP basis totaled $3.0 million, compared to operating profit of
$2.0 million (2.5% of revenues) in
2016. The operating loss in 2017 included a one-time expense
of $13 million due to a settlement
payment. The operating profit in 2016 included a $4.1 million expense due to the reorganization of
the Printar business unit.
Operating profit on a non-GAAP basis totaled $10.4 million (11.1% of revenues), compared to
$3.3 million (4.1% of revenues) in
2016.
Net income on a GAAP basis totaled $1.7 million, or $0.05 per diluted share. This compares to net
income of $0.9 million, or
$0.02 per diluted share, in 2016.
Net income on a non-GAAP basis totaled $9.6 million, or $0.27 per diluted share. This compares to net
income of $2.3 million, or
$0.06 per diluted share, in
2016.
Conference Call
Camtek will host a conference call today, February 7, 2018, at 9:00
am ET.
Rafi Amit, CEO, Moshe Eisenberg, CFO and Ramy Langer, COO 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:
|
1 866 860
9642
|
at 9:00 am Eastern
Time
|
Israel:
|
03 918
0685
|
at 4:00 pm Israel
Time
|
International:
|
+972 3 918
0685
|
|
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 is a leading manufacturer of metrology and inspection
equipment and a provider of software solutions serving the Advanced
Packaging, Memory, CMOS Image Sensors, MEMS, RF and other segments
in the Mid End of the Semiconductors industry.
Camtek provides dedicated solutions and crucial
yield-enhancement data, enabling manufacturers to improve yield and
drive down their production costs.
With eight offices around the world, Camtek has best-in-class
sales and customer support organization, providing tailor-made
solutions in line with customers' requirements.
This press release is available
at http://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, price reductions as
well as due to risks identified in the documents filed by the
Company with the SEC.
This press release provides financial measures that exclude:
(i) settlement expenses; (ii) changes in valuation allowance on
deferred tax assets; (iii) share based compensation expenses, (iv)
discontinued operations, and (v) revaluation of liabilities with
respect to the acquisition of Printar and reorganization costs with
regard to the FIT activities, 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
|
|
|
December
31,
|
|
2017
|
*2016
|
|
U.S. Dollars (In
thousands)
|
Assets
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
43,744
|
19,740
|
Accounts receivable,
net
|
23,153
|
22,066
|
Inventories
|
21,336
|
16,647
|
Due from affiliated
companies
|
681
|
-
|
Other current
assets
|
2,534
|
2,039
|
Current assets held
for sale
|
-
|
25,018
|
Total current
assets
|
91,448
|
85,510
|
|
|
|
Fixed assets,
net
|
15,503
|
13,725
|
|
|
|
Long term
inventory
|
1,383
|
1,461
|
Deferred tax
asset
|
4,067
|
**4,073
|
Other assets,
net
|
153
|
270
|
Intangible assets,
net
|
482
|
519
|
Total long-term
assets
|
6,085
|
6,323
|
|
|
|
Total
assets
|
113,036
|
105,558
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
Current
liabilities
|
|
|
Accounts payable –
trade
|
10,502
|
10,304
|
Other current
liabilities
|
17,395
|
14,722
|
Due to affiliated
companies
|
-
|
18
|
Current liabilities
held for sale
|
-
|
6,482
|
Total current
liabilities
|
27,897
|
31,526
|
|
|
|
Long term
liabilities
|
|
|
Liability for
employee severance benefits
|
838
|
667
|
Total long-term
liabilities
|
838
|
667
|
|
|
|
Total
liabilities
|
28,735
|
32,193
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
Shareholders'
equity
|
|
|
Ordinary shares NIS
0.01 par value, authorized 100,000,000 shares,
|
|
|
37,924,507
issued as of December 31, 2017, and 37,440,552 as of
|
|
|
December 31,
2016, outstanding 35,832,131 as of December 31, 2017,
|
|
|
and 35,348,176
as of December 31, 2016
|
149
|
148
|
Additional paid-in
capital
|
78,437
|
76,463
|
Retained earnings
(losses)
|
7,613
|
(1,348)
|
|
86,199
|
75,263
|
Treasury stock, at
cost (2,092,376 as of December 31, 2017 and December 31,
2016)
|
(1,898)
|
(1,898)
|
|
|
|
Total shareholders'
equity
|
84,301
|
73,365
|
|
|
|
Total liabilities
and shareholders' equity
|
113,036
|
105,558
|
|
* The financial
position of the PCB business is presented as discontinued
operations.
|
** Reclassified – Due
to the retroactive implementation of ASU No. 2015-17, "Balance
Sheet Classification of Deferred Taxes"
|
Camtek
Ltd.
|
Consolidated
Statements of Operations
|
(In thousands,
except share data)
|
|
|
Year ended
December 31,
|
Three Months ended
December 31,
|
|
2017
|
*2016
|
2017
|
*2016
|
|
U.S.
dollars
|
U.S.
dollars
|
|
|
|
|
|
Revenues
|
93,485
|
79,228
|
25,844
|
21,525
|
Cost of
revenues
|
47,966
|
41,807
|
13,519
|
11,436
|
Reorganization
|
-
|
4,931
|
-
|
-
|
|
|
|
|
|
Gross
profit
|
45,519
|
32,490
|
12,325
|
10,089
|
|
|
|
|
|
|
|
|
|
|
Research and
development costs
|
13,534
|
12,630
|
3,467
|
3,133
|
Selling, general and
administrative expenses
|
22,022
|
21,900
|
5,175
|
5,852
|
Implication of
re-organization
|
-
|
(4,059)
|
-
|
-
|
Expenses from
settlement
|
13,000
|
-
|
-
|
-
|
|
48,556
|
30,471
|
8,642
|
8,985
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
(3,037)
|
2,019
|
3,683
|
1,104
|
|
|
|
|
|
Financial income
(expenses), net
|
(150)
|
(847)
|
49
|
(304)
|
|
|
|
|
|
Income (loss)
before income taxes
|
(3,187)
|
1,172
|
3,732
|
800
|
|
|
|
|
|
Income taxes
(expense)
|
4,875
|
(303)
|
(406)
|
(32)
|
|
|
|
|
|
Net income from
continuing operations
|
1,688
|
869
|
3,326
|
768
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations *
|
|
|
|
|
Income from
discontinued operations
|
|
|
|
|
Income before tax
expense
|
18,302
|
4,450
|
-
|
1,643
|
Income taxes
(expense)
|
(6,028)
|
(585)
|
(465)
|
(64)
|
Income (loss) from
discontinued operations
|
12,274
|
3,865
|
(465)
|
1,579
|
|
|
|
|
|
Net
income
|
13,962
|
4,734
|
2,861
|
2,347
|
Net income (loss)
per ordinary share:
|
|
Year ended
December 31,
|
Three Months ended
December 31,
|
|
2017
|
2016
|
2017
|
2016
|
|
U.S.
dollars
|
U.S.
dollars
|
|
|
|
|
|
Basic earnings from
continuing operation
|
0.05
|
0.02
|
0.09
|
0.02
|
|
|
|
|
|
Basic earnings
(losses) from discontinued operation
|
0.35
|
0.11
|
(0.01)
|
0.05
|
|
|
|
|
|
Basic net
earnings
|
0.4
|
0.13
|
0.08
|
0.07
|
|
|
|
|
|
Diluted earnings
from continuing operation
|
0.05
|
0.02
|
0.09
|
0.02
|
|
|
|
|
|
Diluted earnings
(losses) from discontinued operation
|
0.34
|
0.11
|
(0.01)
|
0.04
|
|
|
|
|
|
Diluted net
earnings
|
0.39
|
0.13
|
0.08
|
0.07
|
|
|
|
|
|
Weighted average
number of
|
|
|
|
|
ordinary
shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
35,441
|
35,348
|
35,644
|
35,348
|
|
|
|
|
|
Diluted
|
35,964
|
35,376
|
36,094
|
35,396
|
(*) The financial
results of the PCB business are presented as discontinued
operations.
|
Reconciliation of
GAAP To Non-GAAP results
|
(In thousands,
except share data)
|
|
|
|
|
Year
ended
|
Three Months
ended
|
December
31,
|
December
31,
|
|
2017
|
2016
|
2017
|
2016
|
|
U.S.
dollars
|
U.S.
dollars
|
|
|
|
|
|
Reported net
income (loss)
|
13,962
|
4,734
|
2,861
|
2,347
|
attributable to Camtek Ltd.
|
on GAAP
basis
|
Settlement expense,
net of tax (1)
|
12,025
|
-
|
-
|
-
|
Realization of
deferred tax assets (2)
|
(4,495)
|
-
|
-
|
-
|
Share-based
compensation
|
426
|
363
|
150
|
94
|
Effect of FIT
reorganization (3)
|
-
|
872
|
-
|
-
|
Acquisition of Sela
and Printar related expenses (4)
|
-
|
183
|
-
|
-
|
Attributable to
discontinued operations
|
(12,274)
|
(3,865)
|
465
|
(1,579)
|
including
income from sale of PCB business (5)
|
Non-GAAP net
income
|
9,644
|
2,287
|
3,476
|
862
|
|
|
|
|
|
Non–GAAP net
incomeper share,
|
0.27
|
0.06
|
0.1
|
0.02
|
basic and
diluted
|
Gross margin on
GAAP basis
|
48.70%
|
41.00%
|
47.70%
|
46.90%
|
Reported gross
profit on GAAP basis
|
45,519
|
32,490
|
12,325
|
10,089
|
Share-based
compensation
|
44
|
31
|
16
|
5
|
Effect of FIT
reorganization (3)
|
-
|
4,931
|
-
|
-
|
Non-GAAP gross
margin
|
48.70%
|
47.30%
|
47.80%
|
46.90%
|
Non-GAAP gross
profit
|
45,563
|
37,452
|
12,341
|
10,094
|
|
|
|
|
|
Reported operating
income (loss)
|
(3,037)
|
2,019
|
3,683
|
1,104
|
attributable to Camtek Ltd. on GAAP basis
|
Settlement expense
(1)
|
13,000
|
-
|
-
|
-
|
Share-based
compensation
|
426
|
363
|
150
|
94
|
Effect of Fit
reorganization (3)
|
-
|
872
|
-
|
-
|
Non-GAAP operating
income
|
10,389
|
3,254
|
3,833
|
1,198
|
(1) During the year ended December 31, 2017, the Company recorded a
provision of $13 million
($12 million net of tax) in
conjunction settlement with Rudolph Technologies Inc.
(2) During the year ended December 31, 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 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 of $5.0 million, recorded under operating
expenses.
(4) During the year ended December 31, 2016, the Company recorded
acquisition expenses of $0.2 million,
consisting of revaluation adjustments of $0.2 million of contingent consideration and
certain future liabilities recorded at fair value. These amounts
are recorded under finance expenses line item.
(5) Due to the completion of the sale of
Camtek's PCB business at the end of the third quarter of 2017, 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 December 31, 2017, as well as the comparative
periods. Following the sale of the PCB business, the Company
recorded one-time income of $12.5
million to GAAP net income in the 2017 full year results.
This amount is excluded from the non-GAAP results.
CAMTEK
LTD.
Moshe Eisenberg,
CFO
Tel: +972 4 604
8308
Mobile: +972 54 900
7100
moshee@camtek.com
|
INTERNATIONAL
INVESTOR RELATIONS
GK Investor
Relations
Ehud Helft / Gavriel
Frohwein
Tel: (US) 1 646 688
3559
camtek@gkir.com
|
View original
content:http://www.prnewswire.com/news-releases/camtek-announces-fourth-quarter-and-full-year-2017-results-300594965.html
SOURCE Camtek Ltd