UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
under the Securities Exchange Act of 1934
For the Month of February 2020
CAMTEK LTD.
(Translation of Registrant’s Name into English)
Ramat Gavriel Industrial Zone
P.O. Box 544
Migdal Haemek 23150
ISRAEL
(Address of Principal Corporate Offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ 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.
Yes ☐ No ☒
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.
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CAMTEK LTD.
(Registrant)
By: /s/ Moshe Eisenberg
——————————————
Moshe Eisenberg,
Chief Financial Officer
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Dated: February 20, 2020
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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
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CAMTEK LTD.
Moshe Eisenberg, CFO
Tel: +972 4 604 8308
Mobile: +972 54 900 7100
moshee@camtek.com
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INTERNATIONAL INVESTOR RELATIONS
GK Investor Relations
Ehud Helft / Gavriel Frohwein
Tel: (US) 1 646 688 3559
camtek@gkir.com
|
FOR IMMEDIATE RELEASE
CAMTEK ANNOUNCES RECORD RESULTS FOR 2019
Expects Growth in the First Half of 2020
MIGDAL HAEMEK, Israel – February 20, 2020 – Camtek Ltd. (NASDAQ: CAMT; TASE: CAMT), today announced its financial results for the quarter and year ended December 31, 2019.
Highlights of the Fourth Quarter of 2019
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Revenues of $33.2 million, similar to the fourth quarter 2018 and in line with guidance;
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GAAP operating income of $4.6 million; non-GAAP operating income of $5.4 million, representing an operating margin of 13.8% and 16.3%, respectively;
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GAAP net income of $4.6 million and non-GAAP net income of $5.4 million; and
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Strong operating cash flow of $7.5 million.
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Highlights of the Full Year 2019
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Revenues of $134 million; a 9% year-over-year increase;
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GAAP operating income of $22.0 million;
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Non-GAAP operating income of $25.0 million;
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GAAP net income of $22.0 million;
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Non-GAAP net income of $23.9 million; and
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Strong operating cash flow of $24.7 million in 2019 leading to year-end net cash balance of $89.5 million.
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Forward-Looking Expectations
Based on orders in hand, Camtek expected revenues of between $33 and $34 million for the first quarter. However, despite the demand for
Camtek’s products by Chinese customers, certain governmental restrictions aiming to control the spread of the Coronavirus may cause delays in installations in China, and may therefore impact upon Camtek’s revenues in the first quarter.
Since Camtek has good visibility into its second quarter revenues and, assuming the Coronavirus situation is resolved not too far into
the second quarter, it is expected that revenue for the first half of 2020 would be at a record level of approximately $70 million.
Management Comment
Rafi Amit Camtek’s CEO commented, “Camtek closed 2019 with record revenues and profit. I am very proud of this impressive achievement, especially in light of
the weaker semiconductor market last year. We were able to demonstrate 9% year-over-year revenue growth while the semiconductor market as a whole declined by over 10%.”
Continued Mr. Amit, “The market drivers for our products remain strong across different applications such as CMOS image sensors, 5G and advanced interconnect
packaging.
“The Chinese market is significant to our business and represents an important long-term growth engine. We continue to receive orders
from this region and even in recent days we have received several orders for multiple machines from major Chinese customers. Meanwhile, the demand from other territories is also strong. We hope that the Coronavirus will be contained soon and the
people in China will be able to get back to their normal lives.
“We have started 2020 with a strong backlog, and as mentioned, we expect record revenues of approximately $70 million for the first half
of the year.”
Fourth Quarter 2019 Financial Results
Revenues for the fourth quarter of 2019 were $33.2 million, similar to those of the fourth quarter 2018.
Gross profit on a GAAP basis in the quarter totaled $15.8 million (47.7% of revenues), compared to a gross profit of $16.7 million (50.4% of revenues) in the
fourth quarter 2018. Gross profit on a non-GAAP basis in the quarter totaled $15.9 million (48.0% of revenues), compared to $16.8 million (50.6% of revenues) in the fourth quarter 2018.
Operating profit on a GAAP basis in the quarter totaled $4.6 million (13.8% of revenues), compared to an operating income of $6.2 million (18.7% of revenues)
in the fourth quarter 2018. Operating profit on a non-GAAP basis in the quarter totaled $5.4 million (16.3% of revenues), compared to $6.9 million (20.7% of revenues) in the fourth quarter 2018.
Net income on a GAAP basis in the quarter totaled $4.6 million, or $0.12 per diluted share, compared to net income of $5.8 million, or $0.16 per diluted
share, in the fourth quarter 2018. Net income on a non-GAAP basis in the quarter totaled $5.4 million, or $0.14 per diluted share, compared to non-GAAP net income of $6.4 million, or $0.17 per diluted share, in the fourth quarter 2018.
Cash and cash equivalents and short-term deposits, as of December 31, 2019 were $89.5 million compared to $83.0 million as of September 30, 2019. During the
fourth quarter, Camtek generated $7.5 million in operating cash flow.
Full Year 2019 Results Summary
Revenues for 2019 were $134.0 million, an increase of 9% over the $123.2 million reported in 2018.
Gross profit on a GAAP basis totaled $64.8 million (48.3% of revenues), compared to $60.8 million (49.4% of revenues) in 2018. Gross profit on a non-GAAP
basis totaled $65.1 million (48.6% of revenues), compared to $61.2 million (49.7% of revenues) in 2018.
Operating income on a GAAP basis totaled $22.0 million (16.4% of revenues), compared to operating income of $20.0 million (16.3% of revenues) in 2018.
Operating income on a non-GAAP basis totaled $25.0 million (18.7% of revenues), compared to $22.2 million (18.0% of revenues) in 2018.
Net income on a GAAP basis totaled $22.0 million, or $0.57 per diluted share. This compares to net income of $18.7 million, or $0.51 per diluted share, in
2018. Net income on a non-GAAP basis totaled $23.9 million, or $0.62 per diluted share. This compares to net income of $20.9 million, or $0.57 per diluted share, in 2018.
Conference Call
Camtek will host a conference call today, February 20, 2020, at 9:30am 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 9:30am Eastern Time
Israel: 03 918 0609 at 4:30pm 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.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, the disruption to our business related to the coronavirus,
including its spread and effects in and beyond China across the Asia Pacific region, which includes, inter alia, South Korea and Taiwan, and globally, intellectual property litigation, 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) share based compensation expenses, (ii) Chroma transaction expenses, (iii) discontinued operations, and (iv) 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)
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U.S. Dollars (In thousands)
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Assets
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Current assets
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Cash and cash equivalents
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38,047
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54,935
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Short-term deposits
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51,500
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-
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Trade accounts receivable, net
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31,443
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31,644
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Inventories
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23,803
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30,109
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Other current assets
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Total current assets
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Fixed assets, net
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Long term inventory
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2,791
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2,056
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Deferred tax asset
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746
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2,366
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Other assets, net
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113
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231
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Intangible assets, net
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Total assets
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Liabilities and shareholders’ equity
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Current liabilities
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Trade accounts payable
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11,334
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15,541
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Other current liabilities
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Total current liabilities
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31,606
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38,720
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Long term liabilities
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Other long term liabilities
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Total liabilities
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Commitments and contingencies
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Shareholders’ equity
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Ordinary shares NIS 0.01 par value, 100,000,000 shares authorized at December 31, 2019 and at December 31, 2018;
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40,742,355 issued shares at December 31, 2019 and 38,535,445 at December 31, 2018;
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38,649,979 shares outstanding at December 31, 2019 and 36,443,069 at December 31, 2018
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|
157
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|
151
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Additional paid-in capital
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101,327
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81,873
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Retained earnings
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138,200
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103,305
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Treasury stock, at cost (2,092,376 as of December 31, 2019 and December 31, 2018)
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Total shareholders' equity
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Total liabilities and shareholders' equity
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*Includes adjustment in respect of implementation of ASC 842 - Leases
Consolidated Statements of Operations
(in thousands, except share data)
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Three Months ended December 31,
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Revenues
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134,019
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123,174
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33,201
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33,174
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Cost of revenues
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Gross profit
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Research and development costs
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16,331
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14,581
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4,440
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4,125
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Selling, general and administrative expense
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42,812
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40,763
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11,253
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10,515
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Operating income
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Financial income, net
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Income before income taxes
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Income taxes (expense)
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Net income from continuing operations
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Discontinued operations *
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Income from discontinued operations
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Income before tax expense
|
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|
1,257
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-
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-
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|
-
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Income taxes (expense)
|
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|
|
|
|
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|
|
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|
|
|
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Income from discontinued operations
|
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|
1,163
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-
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-
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-
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Net income
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*Relates to the earn-out payment received from the sale of the PCB business.
Reconciliation of GAAP To Non-GAAP results
(In thousands, except share data)
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Three Months ended December 31,
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Reported net income attributable to Camtek Ltd. on GAAP basis
|
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21,986
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|
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18,731
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|
4,607
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|
|
|
5,773
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|
Share-based compensation
|
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|
2,892
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|
|
|
1,682
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|
|
|
824
|
|
|
|
654
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|
Chroma transaction expenses (1)
|
|
|
136
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|
|
|
-
|
|
|
|
-
|
|
|
|
-
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Attributable to discontinued operations
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|
(1,163
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)
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|
-
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|
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|
-
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|
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|
-
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Effect of FIT reorganization (2)
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|
-
|
|
|
|
506
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|
-
|
|
|
|
-
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|
Non-GAAP net income
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
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Non–GAAP net income per diluted share
|
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|
0.62
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|
|
|
0.57
|
|
|
|
0.14
|
|
|
|
0.17
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|
Gross margin on GAAP basis
|
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|
48.3
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%
|
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|
49.4
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%
|
|
|
47.7
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%
|
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|
50.4
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%
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Reported gross profit on GAAP basis
|
|
|
64,784
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|
|
|
60,796
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|
|
|
15,841
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|
|
|
16,717
|
|
Share-based compensation
|
|
|
292
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|
|
|
167
|
|
|
|
85
|
|
|
|
62
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|
Effect of FIT reorganization (2)
|
|
|
-
|
|
|
|
205
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|
|
|
-
|
|
|
|
-
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|
Non-GAAP gross margin
|
|
|
48.6
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%
|
|
|
49.7
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%
|
|
|
48.0
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%
|
|
|
50.6
|
%
|
Non-GAAP gross profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported operating income (loss) attributable to Camtek Ltd. on GAAP basis
|
|
|
21,972
|
|
|
|
20,033
|
|
|
|
4,588
|
|
|
|
6,202
|
|
Share-based compensation
|
|
|
2,892
|
|
|
|
1,682
|
|
|
|
824
|
|
|
|
654
|
|
Chroma transaction expenses (1)
|
|
|
136
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Effect of FIT reorganization (2)
|
|
|
-
|
|
|
|
506
|
|
|
|
-
|
|
|
|
-
|
|
Non-GAAP operating income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
(1)
|
In the second and third quarters of 2019, certain transaction expenses were incurred in relation to the technological cooperation agreement with Chroma. These were recorded under operating expenses.
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(2)
|
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.
|