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
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Moshe Eisenberg,
Chief Financial Officer
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Dated: February 13, 2019
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Camtek Ltd
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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
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FOR IMMEDIATE RELEASE
CAMTEK ANNOUNCES RECORD RESULTS
FOR THE FOURTH QUARTER AND FULL YEAR 2018
Expects
Continued Strength into the First Quarter
MIGDAL HAEMEK, Israel –
February 13, 2019 – 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
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Revenues of $33.2 million, up 28% year-over-year and ahead of the upper-end of the guidance range of $32-33 million;
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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;
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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
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Strong operating cash flow of $7.2 million;
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Highlights of the Full Year 2018
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Revenues of $123.2 million; a 32% year over year increase;
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GAAP operating income of $20.0 million;
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Non-GAAP operating income of $22.2 million, more than double that of 2017;
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GAAP net income of $18.7 million;
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Non-GAAP net income of $20.9 million; $0.57 per diluted share vs. $0.27 in 2017;
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Strong operating cash flow of $16.8 million in 2018 leading to year-end net cash balance of $54.9 million;
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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 10am 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:
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1 888 668 9141
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at 10am Eastern Time
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Israel:
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03 918 0609
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at 5pm Israel Time
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International:
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+972 3 918 0609
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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.
Consolidated Balance Sheets
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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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54,935
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43,744
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Accounts receivable, net
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31,644
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23,153
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Inventories
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30,109
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21,336
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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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2,056
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1,383
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Deferred tax asset
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2,366
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4,067
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Other assets, net
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231
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153
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Intangible assets, net
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Total long-term assets
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Total assets
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Liabilities and shareholders’ equity
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Current liabilities
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Accounts payable – trade
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15,541
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10,502
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Other current liabilities
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Total current liabilities
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39,242
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27,897
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Long term liabilities
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Liability for employee severance benefits
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Total 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, authorized 100,000,000 shares,
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38,535,445 issued as of December 31, 2018, and 37,924,507 as of
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December 31, 2017, outstanding 36,443,069 as of December 31, 2018,
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and 35,832,131 as of December 31, 2017
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151
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149
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Additional paid-in capital
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81,873
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78,437
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Retained earnings
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103,305
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86,199
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Treasury stock, at cost (2,092,376 as of December 31, 2018 and December 31, 2017)
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Total shareholders' equity
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Total liabilities and shareholders' equity
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