MIGDAL HAEMEK, Israel,
Nov. 7, 2019 /PRNewswire/
-- Camtek Ltd. (NASDAQ: CAMT) (TASE: CAMT), today announced
its financial results for the quarter ended September 30, 2019.
Highlights of the Third Quarter 2019
- Revenues were at $32.5
million;
- GAAP gross margin at 46.9%; Non-GAAP gross margin at
47.1%;
- GAAP operating income was $4.4
million and non-GAAP operating income was $5.3 million, representing margins of 13.5% and
16.2%, respectively;
- GAAP net income of $4.2 million,
or $0.11 per diluted share, and
non-GAAP net income of $5.0 million,
or $0.13 per diluted share;
- Operating cash flow of $3.8
million with $83.0 million in
cash and short-term deposits at quarter-end; and
- Expect fourth quarter revenues at similar levels to that of the
third quarter, with improved profitability.
Management Comment
Rafi Amit Camtek's CEO commented, "Camtek's third quarter
results reflect continued solid execution, with revenues in the
upper limit of our guidance range despite the current weaker
semiconductor market. Our gross margin came in below previous
quarters mainly as a result of less favorable product mix in the
quarter. We expect an improvement in the gross and operating
margins in the fourth quarter."
Continued Mr. Amit, "China has grown to become our largest
territory and we expect this to continue into next year. Orders
have been for various applications including Advanced Packaging and
Front-End Macro inspection, as well as new customers opening
facilities and purchasing an initial tool, with the potential for
further expansion. Since the beginning of the year we have gained
14 new customers, most of them in China. Furthermore, we have strengthened our
position in two key market segments: power devices and CMOS
image sensors. During the quarter, we received and
installed two multiple machine orders for these segments which
are expected to continue growing into 2020."
Concluded Mr. Amit, "Fundamental long-term market drivers
remain strong, and Camtek continues to maintain its strong position
in the market. Next quarter, we expect revenues at around current
levels. This should put us at record revenue level for the
year of about $133 million."
Third Quarter 2019 Financial Results
Revenues for the third quarter of 2019 were
$32.4 million. This compares to third
quarter 2018 revenues of $32.3
million.
Gross profit on a GAAP basis in the quarter totaled
$15.2 million (46.9% of revenues), a
decline of 6% compared to a gross profit of $16.2 million (50.2% of revenues) in the third
quarter of 2018. Gross profit on a non-GAAP basis in the
quarter totaled $15.3 million (47.1%
of revenues), a decline of 6% compared to a gross profit of
$16.2 million (50.4% of
revenues) in the third quarter of 2018. The decline in the gross
margin is due to less favorable product mix in the third quarter of
2019.
Operating profit on a GAAP basis in the quarter totaled
$4.4 million (13.5% of revenues), a
decline of 21% compared to an operating income of $5.6 million (17.2% of revenues) in the third
quarter of 2018. Operating profit on a non-GAAP basis in the
quarter totaled $5.3 million (16.2%
of revenues), a decline of 15% compared to $6.2 million (19.2% of revenues) in the third
quarter of 2018. The decline in the operating margin is due to the
lower gross margin in the third quarter of 2019.
Net income on a GAAP basis in the quarter totaled
$4.2 million, or $0.11 per diluted share, a decline of 18%
compared to net income of $5.1
million, or $0.14 per diluted
share, in the third quarter of 2018. Net income on a non-GAAP basis
in the quarter totaled $5.0 million,
or $0.13 per diluted share, a decline
of 12% compared to a non-GAAP net income of $5.7 million, or $0.16 per diluted share, in the
third quarter of 2018.
Cash and cash equivalents, as of September 30, 2019, were $83.0 million compared to $54.9 million as of December 31, 2018 and $85.3 million as of June
30, 2019. During the quarter the Company generated a
positive operating cash flow of $3.8
million and paid a cash dividend of $5.7 million.
Conference Call
Camtek will host a conference call today, November 7, 2019, 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
10am Eastern Time
Israel:
03 918
0609 at
5pm 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.
A summary presentation of the quarterly results will also be
available on Camtek's website.
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 other risks identified in our Annual Report on Form
20-F and other documents filed by the Company with the SEC, that
represent our views only as of the date they are made and should
not be relied upon as representing our views as of any subsequent
date.
This press release provides financial measures that exclude:
(i) share based compensation expenses; (ii) certain 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)
|
|
|
|
September
30,
|
December
31,
|
|
2019
|
2018
|
Assets
|
U.S. Dollars (In
thousands)
|
Current
assets
|
|
|
Cash and cash
equivalents
|
59,040
|
54,935
|
Short-term
deposits
|
24,000
|
-
|
Trade accounts
receivable, net
|
28,590
|
31,644
|
Inventories
|
26,479
|
30,109
|
Other current
assets
|
2,316
|
2,613
|
|
|
|
Total current
assets
|
140,425
|
119,301
|
|
|
|
Fixed assets,
net
|
*18,793
|
17,117
|
|
|
|
Long term
inventory
|
2,856
|
2,056
|
Deferred tax
asset
|
1,201
|
2,366
|
Other assets,
net
|
240
|
231
|
Intangible assets,
net
|
521
|
476
|
|
|
|
|
4,818
|
5,129
|
|
|
|
Total
assets
|
164,036
|
141,547
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
Current
liabilities
|
|
|
Trade accounts
payable
|
11,317
|
15,541
|
Other current
liabilities
|
*19,624
|
23,179
|
|
|
|
Total current
liabilities
|
30,941
|
38,720
|
|
|
|
Long term
liabilities
|
|
|
Other long term
liabilities
|
*2,375
|
1,420
|
|
2,375
|
1,420
|
|
|
|
Total
liabilities
|
33,316
|
40,140
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
Shareholders'
equity
|
|
|
Ordinary shares NIS
0.01 par value, 100,000,000 shares authorized at
September 30, 2019 and at December 31, 2018;
|
|
|
40,689,020 issued
shares at September 30, 2019 and 38,535,445 at
December 31, 2018;
|
|
|
38,596,644 shares
outstanding at September 30, 2019 and
36,443,069 at December 31, 2018
|
157
|
151
|
Additional paid-in
capital
|
100,352
|
81,873
|
Retained
earnings
|
32,109
|
21,281
|
|
132,618
|
103,305
|
Treasury stock, at
cost (2,092,376 as of September 30, 2019 and
December 31, 2018)
|
(1,898)
|
(1,898)
|
Total shareholders'
equity
|
130,720
|
101,407
|
|
|
|
Total liabilities
and shareholders' equity
|
164,036
|
141,547
|
|
|
|
|
|
|
*Includes
adjustment in respect of implementation of ASC 842 -
Leases
|
Camtek
Ltd.
|
Consolidated
Statements of Operations
|
(in thousands,
except share data)
|
|
Nine Months
ended
September
30,
|
Three
Months
ended September
30,
|
Year
ended
December
31,
|
|
2019
|
2018
|
2019
|
2018
|
2018
|
|
U.S.
dollars
|
U.S.
dollars
|
U.S.
dollars
|
Revenues
|
100,818
|
90,000
|
32,470
|
32,264
|
123,174
|
Cost of
revenues
|
51,875
|
45,921
|
17,252
|
16,081
|
62,378
|
|
|
|
|
|
|
Gross
profit
|
48,943
|
44,079
|
15,218
|
16,183
|
60,796
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development costs
|
11,891
|
10,456
|
4,164
|
3,501
|
14,581
|
Selling, general and
administrative expenses
|
19,668
|
19,792
|
6,681
|
7,128
|
26,182
|
|
31,559
|
30,248
|
10,845
|
10,629
|
40,763
|
|
|
|
|
|
|
Operating
income
|
17,384
|
13,831
|
4,373
|
5,554
|
20,033
|
|
|
|
|
|
|
Financial income,
net
|
340
|
491
|
188
|
55
|
728
|
|
|
|
|
|
|
Income from
continuing operations
before
income taxes
|
17,724
|
14,322
|
4,561
|
5,609
|
20,761
|
|
|
|
|
|
|
Income tax
expense
|
(1,508)
|
(1,364)
|
(398)
|
(516)
|
(2,030)
|
|
|
|
|
|
|
Net income from
continuing operations
|
16,216
|
12,958
|
4,163
|
5,093
|
18,731
|
|
|
|
|
|
|
Discontinued
operations *
|
|
|
|
|
|
Income from
discontinued operations
|
|
|
|
|
|
|
|
|
|
|
|
Income before tax
expense
|
1,257
|
-
|
-
|
-
|
-
|
Income tax
expense
|
(94)
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
Net income from
discontinued operations
|
1,163
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
Net
income
|
17,379
|
12,958
|
4,163
|
5,093
|
18,731
|
|
|
|
|
|
|
*Relates to the
earn-out payment received from the sale of the PCB
business.
|
Net income per ordinary share:
|
Nine months
ended
September
30,
|
Three months
ended
September 30,
|
Year
ended
December
31,
|
|
2019
|
2018
|
2019
|
2018
|
2018
|
|
U.S.
dollars
|
U.S.
dollars
|
U.S.
dollars
|
|
|
|
|
|
|
Basic earnings from
continuing
operation
|
0.43
|
0.36
|
0.11
|
0.14
|
0.52
|
|
|
|
|
|
|
Basic earnings from
discontinued
operation
|
0.03
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
Basic net
earnings
|
0.47
|
0.36
|
0.11
|
0.14
|
0.52
|
|
|
|
|
|
|
Diluted earnings
from continuing
operation
|
0.43
|
0.35
|
0.11
|
0.14
|
0.51
|
|
|
|
|
|
|
Diluted earnings
from discontinued
operation
|
0.03
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
Diluted net
earnings
|
0.46
|
0.35
|
0.11
|
0.14
|
0.51
|
|
|
|
|
|
|
Weighted average
number of ordinary
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
37,286
|
36,105
|
38,541
|
36,300
|
36,190
|
|
|
|
|
|
|
Diluted
|
38,064
|
36,657
|
39,307
|
36,941
|
36,747
|
Camtek
Ltd.
|
Reconciliation of
GAAP To Non-GAAP results
|
|
(In thousands,
except share data)
|
|
Nine Months
ended
September
30,
|
Three Months
ended
September
30,
|
Year
ended
December
31,
|
|
2019
|
2018
|
2019
|
2018
|
2018
|
|
U.S.
dollars
|
U.S.
dollars
|
U.S.
dollars
|
|
|
|
|
|
|
Reported net income
attributable to
Camtek Ltd. on GAAP
basis
|
17,379
|
12,958
|
4,163
|
5,093
|
18,731
|
Share-based
compensation
|
2,068
|
1,028
|
818
|
634
|
1,682
|
Chroma transaction
expenses (1)
|
136
|
-
|
63
|
-
|
-
|
Attributable to
discontinued operations
|
(1,163)
|
-
|
-
|
-
|
-
|
Effect of FIT
reorganization (2)
|
-
|
506
|
-
|
-
|
506
|
|
|
|
|
|
|
Non-GAAP net
income
|
18,420
|
14,492
|
5,044
|
5,727
|
20,919
|
|
|
|
|
|
|
Non –GAAP diluted
net income per
share
|
0.48
|
0.40
|
0.13
|
0.16
|
0.57
|
Gross margin on
GAAP basis from
continuing operations
|
48.5%
|
49.0%
|
46.9%
|
50.2%
|
49.4%
|
Reported gross
profit on GAAP basis
|
48,943
|
44,079
|
15,218
|
16,183
|
60,796
|
Share-based
compensation
|
207
|
105
|
85
|
62
|
167
|
Effect of FIT
reorganization (2)
|
-
|
205
|
-
|
-
|
205
|
|
|
|
|
|
|
Non- GAAP gross
margin
|
49,150
|
44,389
|
15,303
|
16,245
|
61,168
|
Non-GAAP gross
profit
|
48.8%
|
49.3%
|
47.1%
|
50.4%
|
49.7%
|
|
|
|
|
|
|
Reported operating
income attributable
to Camtek Ltd. on GAAP basis from
continuing operations
|
17,384
|
13,831
|
4,373
|
5,554
|
20,033
|
Share-based
compensation
|
2,068
|
1,028
|
818
|
634
|
1,682
|
Chroma transaction
expenses (1)
|
136
|
-
|
63
|
-
|
-
|
Effect of FIT
reorganization (2)
|
-
|
506
|
-
|
-
|
506
|
Non-GAAP operating
income
|
19,588
|
15,365
|
5,254
|
6,188
|
22,221
|
(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.
|
(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.
|
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