MIGDAL HAEMEK, Israel,
Feb. 20, 2020 /PRNewswire/ -- 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
- Revenues of $33.2 million,
similar to the fourth quarter 2018 and in line with guidance;
- 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;
- GAAP net income of $4.6 million
and non-GAAP net income of $5.4
million; and
- Strong operating cash flow of $7.5
million.
Highlights of the Full Year
2019
- Revenues of $134 million; a 9%
year-over-year increase;
- GAAP operating income of $22.0
million;
- Non-GAAP operating income of $25.0
million;
- GAAP net income of $22.0
million;
- Non-GAAP net income of $23.9
million; and
- Strong operating cash flow of $24.7
million in 2019 leading to year-end net cash balance of
$89.5 million.
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 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)
|
December
31,
|
December
31,
|
|
2019
|
2018
|
|
U.S. Dollars (In
thousands)
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
38,047
|
54,935
|
Short-term
deposits
|
51,500
|
-
|
Trade accounts
receivable, net
|
31,443
|
31,644
|
Inventories
|
23,803
|
30,109
|
Other current
assets
|
2,909
|
2,613
|
Total current
assets
|
147,702
|
119,301
|
|
|
|
Fixed assets,
net
|
*18,526
|
17,117
|
|
|
|
Long term
inventory
|
2,791
|
2,056
|
Deferred tax
asset
|
746
|
2,366
|
Other assets,
net
|
113
|
231
|
Intangible assets,
net
|
491
|
476
|
|
4,141
|
5,129
|
Total
assets
|
170,369
|
141,547
|
Liabilities and
shareholders' equity
|
|
|
Current
liabilities
|
|
|
Trade accounts
payable
|
11,334
|
15,541
|
Other current
liabilities
|
*20,272
|
23,179
|
Total current
liabilities
|
31,606
|
38,720
|
Long term
liabilities
|
|
|
Other long term
liabilities
|
*2,461
|
1,420
|
|
2,461
|
1,420
|
Total
liabilities
|
34,067
|
40,140
|
Commitments and
contingencies
|
|
|
Shareholders'
equity
|
|
|
Ordinary shares NIS
0.01 par value, 100,000,000 shares authorized at December 31, 2019
and at December 31, 2018;
|
|
|
40,742,355 issued
shares at December 31, 2019 and 38,535,445 at December 31,
2018;
|
|
|
38,649,979 shares
outstanding at December 31, 2019 and
36,443,069 at December 31, 2018
|
157
|
151
|
Additional paid-in
capital
|
101,327
|
81,873
|
Retained
earnings
|
36,716
|
21,281
|
|
138,200
|
103,305
|
Treasury stock, at
cost (2,092,376 as of December 31, 2019 and
December 31, 2018)
|
(1,898)
|
(1,898)
|
Total shareholders'
equity
|
136,302
|
101,407
|
Total liabilities
and shareholders' equity
|
170,369
|
141,547
|
|
|
|
|
|
|
*Includes adjustment in respect of implementation of ASC
842 - Leases
Camtek Ltd.
Consolidated Statements of Operations
(in thousands, except share data)
|
Year ended
December 31,
|
|
Three Months ended
December 31,
|
|
2019
|
2018
|
|
2019
|
2018
|
|
U.S.
dollars
|
|
U.S.
dollars
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
134,019
|
123,174
|
|
33,201
|
33,174
|
Cost of
revenues
|
69,235
|
62,378
|
|
17,360
|
16,457
|
Gross
profit
|
64,784
|
60,796
|
|
15,841
|
16,717
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development costs
|
16,331
|
14,581
|
|
4,440
|
4,125
|
Selling, general and
administrative expense
|
26,481
|
26,182
|
|
6,813
|
6,390
|
|
42,812
|
40,763
|
|
11,253
|
10,515
|
|
|
|
|
|
|
Operating income
|
21,972
|
20,033
|
|
4,588
|
6,202
|
Financial income,
net
|
801
|
728
|
|
461
|
237
|
Income before
income taxes
|
22,773
|
20,761
|
|
5,049
|
6,439
|
|
|
|
|
|
|
Income taxes
(expense)
|
(1,950)
|
(2,030)
|
|
(442)
|
(666)
|
Net income from
continuing operations
|
20,823
|
18,731
|
|
4,607
|
5,773
|
Discontinued
operations *
|
|
|
|
|
|
Income from
discontinued operations
|
|
|
|
|
|
|
Income before tax
expense
|
1,257
|
-
|
|
-
|
-
|
Income taxes
(expense)
|
(94)
|
-
|
|
-
|
-
|
Income from
discontinued operations
|
1,163
|
-
|
|
-
|
-
|
|
|
|
|
|
|
Net
income
|
21,986
|
18,731
|
|
4,607
|
5,773
|
*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)
|
Year ended
December 31,
|
|
Three Months ended
December 31,
|
|
2019
|
2018
|
|
2019
|
2018
|
|
U.S.
dollars
|
|
U.S.
dollars
|
|
|
|
|
|
|
Reported net
income attributable to
Camtek Ltd. on GAAP basis
|
|
|
|
|
|
21,986
|
18,731
|
|
4,607
|
5,773
|
Share-based
compensation
|
2,892
|
1,682
|
|
824
|
654
|
Chroma transaction
expenses (1)
|
136
|
-
|
|
-
|
-
|
Attributable to
discontinued operations
|
(1,163)
|
-
|
|
-
|
-
|
Effect of FIT
reorganization (2)
|
-
|
506
|
|
-
|
-
|
Non-GAAP net
income
|
23,851
|
20,919
|
|
5,431
|
6,427
|
|
|
|
|
|
|
Non–GAAP net
incomeper diluted share
|
0.62
|
0.57
|
|
0.14
|
0.17
|
|
|
|
|
|
|
Gross margin on
GAAP basis
|
48.3%
|
49.4%
|
|
47.7%
|
50.4%
|
Reported gross
profit on GAAP basis
|
64,784
|
60,796
|
|
15,841
|
16,717
|
|
|
|
|
|
|
Share-based
compensation
|
292
|
167
|
|
85
|
62
|
Effect of FIT
reorganization (2)
|
-
|
205
|
|
-
|
-
|
Non-GAAP gross
margin
|
48.6%
|
49.7%
|
|
48.0%
|
50.6%
|
Non-GAAP gross
profit
|
65,076
|
61,168
|
|
15,926
|
16,779
|
|
|
|
|
|
|
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
|
25,000
|
22,221
|
|
5,412
|
6,854
|
(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.