MIGDAL HAEMEK, Israel,
July 31, 2018 /PRNewswire/ -- Camtek
Ltd. (NASDAQ: CAMT); (TASE: CAMT), today announced its financial
results for the quarter ended June 30,
2018.
Highlights of the Second Quarter 2018
- Revenues were a record at $30.5
million, up 34% year-over-year and ahead of the upper end of
the previously-issued guidance range;
- Revenues for the first half of 2018 are up over 30% from
2017;
- GAAP operating income was $4.7
million and non-GAAP operating income was $5.0 million, representing a margins of 15.5% and
16.3%, respectively; and
- GAAP net income was $4.3 million
and non-GAAP net income was $4.6
million; representing margins of 14.2% and 15.0%,
respectively.
Forward Looking Guidance
Third quarter 2018 revenues are expected to grow to $31-32 million, representing a year-over-year
increase of approximately 30% for the third quarter and for the
first nine months of 2018.
Management Comment
Rafi Amit Camtek's CEO commented, "2018 continues to be a
very strong year with revenue growth of approximately 30% and
corresponding improvement in profitability. Our strong results are
due to our focus on the fastest growing segments of the
semiconductors market, particularly advanced packaging.
Furthermore, we are successfully leveraging our strong market
position in metrology to grow and capture market share in 2D
inspection applications as well. Our backlog at record levels and
our improved visibility into the end of the year, give us
confidence that we will continue revenue growth and associated
improvement in margins and profit in the fourth quarter of
2018."
The financial results and the comparison to 2017 in this
press release include only those of the continuing
operations.
Second Quarter 2018 Financial Results
Revenues for the second quarter of 2018 were $30.5 million. This compares to second quarter
2017 revenues of $22.7 million, a
growth of 34%.
Gross profit on a GAAP basis in the quarter totaled
$14.9 million (48.9% of revenues),
compared to a gross profit of $11.2
million (49.2% of revenues) in the second quarter 2017.
Gross profit on a non-GAAP basis in the quarter totaled
$14.9 million (49.0% of revenues),
compared to $11.2 million (49.2% of
revenues) in the second quarter 2017.
Operating profit on a GAAP basis in the quarter totaled
$4.7 million (15.5% of revenues),
compared to an operating loss of $11.0
million in the second quarter 2017. The 2017 operating loss
was due to a $13 million settlement
payment for IP litigation.
Operating profit on a non-GAAP basis in the quarter
totaled $5.0 million (16.3% of
revenues), compared to $2.1 million
(9.2% of revenues) in the second quarter 2017.
Net income on a GAAP basis in the quarter totaled
$4.3 million, or $0.12 per diluted share, compared to net loss
from continuing operations of $5.7
million, or ($0.16) per
diluted share, in the second quarter 2017.
Net income on a non-GAAP basis in the quarter totaled
$4.6 million, or $0.13 per diluted share, compared to non-GAAP net
income from continuing operations of $2.0
million, or $0.06 per diluted
share, in the second quarter 2017.
Cash and cash equivalents, as of June 30, 2018, were $41.2
million compared to $47.2
million as of March 31, 2018.
During the quarter the Company paid a $5.1
million dividend. In addition, the Company reported a
negative operating cash flow of $1.0
million during the second quarter to support the working
capital requirements.
Conference Call
Camtek will host a conference call today, July 31, 2018, at 10:00 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:
|
1-888-668-9141
|
at 10:00 am Eastern
Time
|
Israel:
|
03-918-0609
|
at 5:00 pm Israel
Time
|
International:
|
+972-3-918-0609
|
at 5:00 pm Israel
Time
|
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 semiconductor 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) write off 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.
Consolidated
Balance Sheets
|
(In
thousands)
|
|
June
30,
|
December
31,
|
|
2018
|
2017
|
|
U.S. Dollars (In
thousands)
|
Assets
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
41,204
|
|
43,744
|
Trade accounts
receivable, net
|
32,278
|
|
23,153
|
Inventories
|
23,693
|
|
21,336
|
Other current
assets
|
2,769
|
|
3,215
|
Total current
assets
|
99,944
|
|
91,448
|
Fixed assets,
net
|
15,731
|
|
15,503
|
|
|
|
|
Long-term
inventory
|
1,466
|
|
1,383
|
Deferred tax
asset
|
3,308
|
|
4,067
|
Other assets,
net
|
153
|
|
153
|
Intangible assets,
net
|
480
|
|
482
|
|
5,407
|
|
6,085
|
Total
assets
|
121,082
|
|
113,036
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
Trade accounts
payable
|
15,174
|
|
10,502
|
Other current
liabilities
|
16,552
|
|
17,395
|
|
|
|
|
Total current
liabilities
|
31,726
|
|
27,897
|
Long term
liabilities
|
|
|
|
Liability for
employee severance benefits
|
870
|
|
838
|
|
870
|
|
838
|
Total
liabilities
|
32,596
|
|
28,735
|
|
|
|
|
Shareholders'
equity
|
|
|
|
Ordinary shares NIS
0.01 par value, 100,000,000 shares authorized at June
30,
2018 and at December
31, 2017;
|
|
|
|
38,277,165 issued
shares at June 30, 2018 and 37,924,507 at December 31,
2017;
|
|
|
|
36,184,789 shares
outstanding at June 30, 2018 and 35,832,131 at December
31,
2017
|
149
|
|
149
|
Additional paid-in
capital
|
79,820
|
|
78,437
|
Retained earnings
(losses)
|
10,415
|
|
7,613
|
|
90,384
|
|
86,199
|
|
|
|
|
Treasury stock, at
cost (2,092,376 as of June 30, 2018 and December 31,
2017)
|
(1,898)
|
|
(1,898)
|
|
|
|
|
Total shareholders'
equity
|
88,486
|
|
84,301
|
|
|
|
|
Total liabilities
and shareholders' equity
|
121,082
|
|
113,036
|
Consolidated
Statements of Operations
|
(in thousands,
except share data)
|
|
Six Months
ended
June
30,
|
Three
Months
ended June
30,
|
Year
ended
December
31,
|
|
2018
|
2017
|
2018
|
2017
|
2017
|
|
U.S.
dollars
|
U.S.
dollars
|
U.S.
dollars
|
Revenues
|
57,736
|
|
43,828
|
|
30,462
|
|
22,682
|
|
93,485
|
Cost of
revenues
|
29,840
|
|
22,384
|
|
15,563
|
|
11,527
|
|
47,966
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
27,896
|
|
21,444
|
|
14,899
|
|
11,155
|
|
45,519
|
|
|
|
|
|
|
|
|
|
|
Research and
development costs
|
6,955
|
|
6,852
|
|
3,406
|
|
3,413
|
|
13,534
|
Selling, general and
administrative expenses
|
12,664
|
|
11,159
|
|
6,775
|
|
5,754
|
|
22,022
|
Patent litigation
expense
|
-
|
|
13,000
|
|
-
|
|
13,000
|
|
13,000
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
19,619
|
|
31,011
|
|
10,181
|
|
22,167
|
|
48,556
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
8,277
|
|
(9,567)
|
|
4,718
|
|
(11,012)
|
|
(3,037)
|
|
|
|
|
|
|
|
|
|
|
Financial income
(expenses), net
|
436
|
|
(209)
|
|
146
|
|
(56)
|
|
(150)
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
|
|
|
|
|
|
|
|
|
before
income taxes
|
8,713
|
|
(9,776)
|
|
4,864
|
|
(11,068)
|
|
(3,187)
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit
(expense)
|
(848)
|
|
5,364
|
|
(533)
|
|
5,404
|
|
4,875
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
7,865
|
|
(4,412)
|
|
4,331
|
|
(5,664)
|
|
1,688
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operation
|
|
|
|
|
|
|
|
|
|
Income from
discontinued operation
|
|
|
|
|
|
|
|
|
|
Income before tax
benefit (expense)
|
-
|
|
4,339
|
|
-
|
|
1,981
|
|
18,302
|
Income tax benefit
(expense)
|
-
|
|
(505)
|
|
-
|
|
(194)
|
|
(6,028)
|
|
|
|
|
|
|
|
|
|
|
Income from
discontinued operation
|
-
|
|
3,834
|
|
-
|
|
1,787
|
|
12,274
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
7,865
|
|
(578)
|
|
4,331
|
|
(3,877)
|
|
13,962
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
per ordinary share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
from continuing
operation
|
0.22
|
|
(0.12)
|
|
0.12
|
|
(0.16)
|
|
0.05
|
|
|
|
|
|
|
|
|
|
|
Basic earnings from
discontinued operation
|
-
|
|
0.11
|
|
-
|
|
0.05
|
|
0.35
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss)
from continuing
operation
|
0.22
|
|
(0.12)
|
|
0.12
|
|
(0.16)
|
|
0.05
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings from
discontinued
operation
|
-
|
|
0.11
|
|
-
|
|
0.05
|
|
0.34
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of
|
|
|
|
|
|
|
|
|
|
ordinary
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
36,050
|
|
35,359
|
|
36,090
|
|
35,369
|
|
35,441
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
36,512
|
|
35,359
|
|
36,632
|
|
35,369
|
|
35,964
|
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,
|
|
2018
|
2017
|
2018
|
2017
|
2017
|
|
U.S.
dollars
|
U.S.
dollars
|
U.S.
dollars
|
Reported net income
(loss) attributable to
Camtek Ltd. on GAAP basis
|
7,865
|
|
(578)
|
|
4,331
|
|
(3,877)
|
|
13,962
|
Effect of FIT
reorganization (1)
|
506
|
|
-
|
|
-
|
|
-
|
|
-
|
Share-based
compensation
|
395
|
|
184
|
|
249
|
|
92
|
|
426
|
Settlement expense,
net of tax (2)
|
-
|
|
12,025
|
|
-
|
|
12,025
|
|
12,025
|
Realization of
deferred tax assets (3)
|
-
|
|
(4,495)
|
|
-
|
|
(4,495)
|
|
(4,495)
|
Attributable to
discontinued operations
|
-
|
|
(3,832)
|
|
-
|
|
(1,787)
|
|
(12,274)
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income
|
8,766
|
|
3,304
|
|
4,580
|
|
1,958
|
|
9,644
|
|
|
|
|
|
|
|
|
|
|
Non –GAAP net
income per share , basic and diluted
|
0.24
|
|
0.09
|
|
0.13
|
|
0.06
|
|
0.27
|
Gross margin on
GAAP basis from continuing operations
|
48.4%
|
|
48.9%
|
|
48.9%
|
|
49.2%
|
|
48.7%
|
Reported gross
profit on GAAP basis
|
27,896
|
|
21,444
|
|
14,899
|
|
11,155
|
|
45,519
|
Effect of FIT
reorganization (1)
|
205
|
|
-
|
|
-
|
|
-
|
|
-
|
Share-based
compensation
|
44
|
|
19
|
|
28
|
|
9
|
|
44
|
|
|
|
|
|
|
|
|
|
|
Non- GAAP gross
margin
|
28,145
|
|
21,463
|
|
14,927
|
|
11,164
|
|
45,563
|
Non-GAAP gross
profit
|
48.8%
|
|
48.9%
|
|
49.0%
|
|
49.2%
|
|
48.7%
|
|
|
|
|
|
|
|
|
|
|
Reported operating
income (loss) attributable to Camtek Ltd.
on GAAP basis from
continuing operations
|
8,277
|
|
(9,567)
|
|
4,718
|
|
(11,012)
|
|
(3,037)
|
Effect of FIT
reorganization (1)
|
506
|
|
-
|
|
-
|
|
-
|
|
-
|
Share-based
compensation
|
395
|
|
184
|
|
249
|
|
92
|
|
426
|
Settlement expense
(2)
|
-
|
|
13,000
|
|
-
|
|
13,000
|
|
13,000
|
Non-GAAP operating
income
|
9,178
|
|
3,617
|
|
4,967
|
|
2,080
|
|
10,389
|
(1) At the end of the first quarter of 2018, the Company
ceased its efforts to utilize the remaining inventory and equipment
related to FIT development and recorded a one-time write-off in the
amount of $0.5 million, consisting
of: (1) inventory write-offs of $0.2
million, recorded under the cost of revenue line item; and
(2) fixed asset write-offs of $0.3
million recorded under operating expenses.
(2) During the three and the six months ended June 30, 2017, and 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.
(3) During the three and the six months ended June 30, 2017, and 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.
Camtek Ltd.
P.O. Box 544, Ramat Gabriel Industrial Park
Migdal Ha'Emek 23150, ISRAEL
Tel: +972-(4)-604-8100
Fax: +972-(4)-644-0523
E-mail: info@camtek.com
Web site: http://www.camtek.com
Contacts:
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
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SOURCE Camtek Ltd.