MIGDAL HAEMEK, Israel,
Feb. 13, 2019 /PRNewswire/
-- Camtek Ltd. (NASDAQ: CAMT) (TASE: CAMT), today announced
its financial results for the quarter and year ended December 31, 2018.
Highlights of the Fourth Quarter of 2018
- Revenues of $33.2 million, up 28%
year-over-year and ahead of the upper-end of the guidance range of
$32-33 million;
- GAAP operating income of $6.2
million; non-GAAP operating income of $6.9 million, representing an operating margin of
18.7% and 20.7% respectively;
- GAAP net income of $5.8 million
and non-GAAP net income of $6.4
million, representing year-over-year growth of 101% and 85%,
respectively; and
- Strong operating cash flow of $7.2
million;
Highlights of the Full Year
2018
- Revenues of $123.2 million; a 32%
year over year increase;
- GAAP operating income of $20.0
million;
- Non-GAAP operating income of $22.2
million, more than double that of 2017;
- GAAP net income of $18.7
million;
- Non-GAAP net income of $20.9
million; $0.57 per diluted
share vs. $0.27 in 2017;
- Strong operating cash flow of $16.8
million in 2018 leading to year-end net cash balance of
$54.9 million;
Forward Looking Guidance
First quarter 2019 revenues are expected to increase to
$33.5-34.5 million, implying
continued sequential growth and year-over-year growth of 25% at the
mid-point.
Management Comment
Rafi Amit Camtek's CEO commented, "We are very pleased
with our performance in 2018. We set ambitious targets in
terms of revenue growth and improved profitability and we have
exceeded them all. We ended 2018 with over 30% growth in revenue
and close to 20% operating margin. We are aware of the uncertainty
in the semiconductor market, however we don't see any significant
change in the segments in which we operate."
Continued Mr. Amit, "Earlier this week, we announced an
investment and important alliance with Chroma, a leading Taiwanese
high precision test and measurement equipment corporation. Chroma
will enable us to bolster our presence in Asia and especially Taiwan, and will also allow us to expand our
addressable markets by leveraging our technological capabilities
into new segments."
The financial results and the comparison to 2017 in this
press release include only those of the continuing operations.
Camtek sold its PCB operations in the third quarter of
2017.
Fourth Quarter 2018 Financial Results
Revenues for the fourth quarter of 2018 were
$33.2 million. This compares to
fourth quarter 2017 revenues of $25.8
million, a growth of 28%.
Gross profit on a GAAP basis in the quarter totaled
$16.7 million (50.4% of revenues),
compared to a gross profit of $12.3
million (47.7% of revenues) in the fourth quarter 2017.
Gross profit on a non-GAAP basis in the quarter totaled
$16.8 million (50.6% of revenues),
compared to $12.3 million (47.8% of
revenues) in the fourth quarter 2017. The variance in the 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
$6.2 million (18.7% of revenues),
compared to an operating income of $3.7
million (14.3% of revenues) in the fourth quarter 2017.
Operating profit on a non-GAAP basis in the quarter totaled
$6.9 million (20.7% of revenues),
compared to $3.8 million (14.8% of
revenues) in the fourth quarter 2017.
Net income on a GAAP basis in the quarter totaled
$5.8 million, or $0.16 per diluted share, compared to net income
from continuing operations of $3.3
million, or $0.09 per diluted
share, in the fourth quarter 2017. Net income on a non-GAAP basis
in the quarter totaled $6.4 million,
or $0.17 per diluted share, compared
to non-GAAP net income from continuing operations of $3.5 million, or $0.10 per diluted share, in the fourth quarter
2017.
Cash and cash equivalents, as of December 31, 2018 were $54.9 million compared to $48.3 million as of September 30, 2018. During the fourth quarter,
Camtek generated $7.2 million in
operating cash flow.
Full Year 2018 Results Summary
Revenues for 2018 were $123.2
million, an increase of 32% over the $93.4 million reported in 2017.
Gross profit on a GAAP basis totaled $60.8 million (49.4% of revenues), compared to
$45.5 million (48.7% of revenues) in
2017. Gross profit on a non-GAAP totaled $61.2 million (49.7% of revenues), compared to
$45.6 million (48.7% of revenues) in
2017.
Operating income on a GAAP basis totaled $20.0 million (16.3% of revenues), compared
to an operating loss of $3.0
million in 2017. The GAAP operating loss in 2017
included a one-time expense of $13
million due to a settlement payment. Operating
income on a non-GAAP basis totaled $22.2 million (18.0% of revenues), compared to
$10.4 million (11.1% of revenues) in
2017.
Net income on a GAAP basis totaled $18.7 million, or $0.52 per diluted share. This compares to net
income of $1.7 million, or
$0.05 per diluted share, in 2017. Net
income on a non-GAAP basis totaled $20.9 million, or $0.57 per diluted share. This compares to net
income of $9.6 million, or
$0.27 per diluted share, in 2017.
Conference Call
Camtek will host a conference call today, February 13, 2019, at 10
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 am Eastern Time
Israel:
03-918-0609 at 5 pm 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, 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.
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
Camtek Ltd.
Consolidated Balance
Sheets
|
December
31,
|
|
2018
|
2017
|
|
U.S. Dollars (In
thousands)
|
Assets
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
54,935
|
43,744
|
Accounts receivable,
net
|
31,644
|
23,153
|
Inventories
|
30,109
|
21,336
|
Other current
assets
|
2,613
|
3,215
|
Total current
assets
|
119,301
|
91,448
|
|
|
|
Fixed assets,
net
|
17,117
|
15,503
|
|
|
|
Long term
inventory
|
2,056
|
1,383
|
Deferred tax
asset
|
2,366
|
4,067
|
Other assets,
net
|
231
|
153
|
Intangible assets,
net
|
476
|
482
|
Total long-term
assets
|
5,129
|
6,085
|
|
|
|
Total
assets
|
141,547
|
113,036
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
Current
liabilities
|
|
|
Accounts payable –
trade
|
15,541
|
10,502
|
Other current
liabilities
|
23,701
|
17,395
|
Total current
liabilities
|
39,242
|
27,897
|
|
|
|
Long term
liabilities
|
|
|
Liability for
employee severance benefits
|
898
|
838
|
Total long-term
liabilities
|
898
|
838
|
|
|
|
Total
liabilities
|
40,140
|
28,735
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
Shareholders'
equity
|
|
|
Ordinary shares NIS
0.01 par value, authorized 100,000,000 shares,
|
|
|
38,535,445 issued as of December 31,
2018, and 37,924,507 as of
|
|
|
December 31,
2017, outstanding 36,443,069 as of December 31,
2018,
|
|
|
and 35,832,131
as of December 31, 2017
|
151
|
149
|
Additional paid-in
capital
|
81,873
|
78,437
|
Retained
earnings
|
21,281
|
7,613
|
|
103,305
|
86,199
|
Treasury stock, at
cost (2,092,376 as of December 31, 2018 and December 31,
2017)
|
(1,898)
|
(1,898)
|
|
|
|
Total shareholders'
equity
|
101,407
|
84,301
|
|
|
|
Total liabilities
and shareholders' equity
|
141,547
|
113,036
|
Camtek Ltd.
Consolidated Statements of Operations
(In thousands,
except share data)
|
|
|
|
|
|
Year ended
December 31,
|
Three Months ended
December 31,
|
|
2018
|
2017
|
2018
|
2017
|
|
U.S.
dollars
|
U.S.
dollars
|
Revenues
|
123,174
|
93,485
|
33,174
|
25,844
|
Cost of
revenues
|
62,378
|
47,966
|
16,457
|
13,519
|
|
|
|
|
|
Gross
profit
|
60,796
|
45,519
|
16,717
|
12,325
|
|
|
|
|
|
|
|
|
|
|
Research and
development costs
|
14,581
|
13,534
|
4,125
|
3,467
|
Selling, general and
administrative expenses
|
26,182
|
22,022
|
6,390
|
5,175
|
Litigation settlement
expenses
|
-
|
13,000
|
-
|
-
|
|
40,763
|
48,556
|
10,515
|
8,642
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
20,033
|
(3,037)
|
6,202
|
3,683
|
|
|
|
|
|
Financial income
(expenses), net
|
728
|
(150)
|
237
|
49
|
|
|
|
|
|
Income (loss)
before income taxes
|
20,761
|
(3,187)
|
6,439
|
3,732
|
|
|
|
|
|
Income taxes
(expense)
|
(2,030)
|
4,875
|
(666)
|
(406)
|
|
|
|
|
|
Net income from
continuing operations
|
18,731
|
1,688
|
5,773
|
3,326
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations *
|
|
|
|
|
Income from
discontinued operations
|
|
|
|
|
Income before tax
expense
|
-
|
18,302
|
-
|
-
|
Income taxes
(expense)
|
-
|
(6,028)
|
-
|
(465)
|
Income (loss) from
discontinued operations
|
-
|
12,274
|
-
|
(465)
|
|
|
|
|
|
Net
income
|
18,731
|
13,962
|
5,773
|
2,861
|
(*) The financial results
of the PCB business are presented as discontinued operations.
Net income (loss) per ordinary share:
|
Year ended
December 31,
|
Three Months ended
December 31,
|
|
2018
|
2017
|
2018
|
2017
|
|
U.S. dollars
|
U.S. dollars
|
Basic earnings from
continuing operation
|
0.52
|
0.05
|
0.16
|
0.09
|
|
|
|
|
|
Basic earnings
(losses) from discontinued operation *
|
-
|
0.35
|
-
|
(0.01)
|
|
|
|
|
|
Basic net
earnings
|
0.52
|
0.4
|
0.16
|
0.08
|
|
|
|
|
|
Diluted earnings
from continuing operation
|
0.51
|
0.05
|
0.16
|
0.09
|
|
|
|
|
|
Diluted earnings
(losses) from discontinued operation *
|
-
|
0.34
|
-
|
(0.01)
|
|
|
|
|
|
Diluted net
earnings
|
0.51
|
0.39
|
0.16
|
0.08
|
|
|
|
|
|
Weighted average
number of
|
|
|
|
|
ordinary
shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
36,190
|
35,441
|
36,440
|
35,644
|
|
|
|
|
|
Diluted
|
36,747
|
35,964
|
37,020
|
36,094
|
(*) 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
December 31,
|
Three Months ended
December 31,
|
|
|
2018
|
|
2017
|
2018
|
2017
|
|
|
|
U.S.
dollars
|
U.S.
dollars
|
|
Reported net income
attributable to Camtek Ltd. on GAAP basis
|
18,731
|
13,962
|
5,773
|
2,861
|
|
|
Effect of FIT
reorganization (1)
|
506
|
-
|
-
|
-
|
|
|
Share-based
compensation
|
1,682
|
426
|
654
|
150
|
|
|
Settlement expense,
net of tax (2)
|
-
|
12,025
|
-
|
-
|
|
|
Realization of
deferred tax assets (3)
|
-
|
(4,495)
|
-
|
-
|
|
|
Attributable to
discontinued operations
|
-
|
(12,274)
|
-
|
465
|
|
|
Non-GAAP net
income
|
20,919
|
9,644
|
6,427
|
3,476
|
|
|
|
|
|
|
|
|
|
Non–GAAP net
income per diluted share
|
0.57
|
0.27
|
0.17
|
0.10
|
|
|
Gross margin on
GAAP basis
Reported gross
profit on GAAP basis
|
49.4%
60,796
|
48.7%
45,519
|
50.4%
16,717
|
47.7%
12,325
|
|
|
Effect of FIT
reorganization (1)
|
205
|
-
|
-
|
-
|
|
|
Share-based
compensation
|
167
|
44
|
62
|
16
|
|
|
Non-GAAP gross
margin
|
49.7%
|
48.7%
|
50.6%
|
47.8%
|
|
|
Non-GAAP gross
profit
|
61,168
|
45,563
|
16,779
|
12,341
|
|
|
|
|
|
|
|
|
|
Reported operating
income (loss) attributable to Camtek Ltd. on GAAP
basis
|
20,033
|
(3,037)
|
6,202
|
3,683
|
|
|
Effect of FIT
reorganization (1)
|
506
|
-
|
-
|
-
|
|
|
Share-based
compensation
|
1,682
|
426
|
654
|
150
|
|
|
Settlement expense
(2)
|
-
|
13,000
|
-
|
-
|
|
|
Non-GAAP operating
income
|
22,221
|
10,389
|
6,854
|
3,833
|
|
(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) In the third quarter of 2017, the
Company recorded a provision of $13
million ($12 million net of
tax) in conjunction settlement with Rudolph Technologies Inc.
(3) In the third quarter of
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.
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SOURCE Camtek Ltd.