MIGDAL HAEMEK, Israel,
May 11, 2020 /PRNewswire/ -- Camtek
Ltd. (NASDAQ: CAMT) (TASE: CAMT), today announced its financial
results for the first quarter 2020.
Highlights of the First Quarter of 2020
- Revenues of $30.2 million;
- Shipments to customers amounted to approximately $33 million, however, about
$3 million of this was not
recognized due to the Coronavirus related delays in
installations and in accordance with our revenue recognition
policy;
- GAAP operating income of $2.9
million; non-GAAP operating income of $3.7 million;
- GAAP net income of $2.8 million
and non-GAAP net income of $3.6
million; and
- Operating cash flow of $1.3
million.
Forward-Looking Expectations
Management expects revenues for the second quarter to be between
$36-38 million. Based on orders on
hand, management further expects continued revenue growth and
improved profitability in the third quarter.
Management Comment
Rafi Amit, Camtek's CEO,
commented, "Camtek is the leader in the 3D metrology arena. Our
strategy is to become a leading supplier in the 2D inspection
segment as well. In the first half of 2020, we have expanded and
strengthened our position in this segment. Some of our customers
ordered multiple 2D Inspection machines with basic configuration
which affected our average selling price (ASP). We expect these
customers to purchase in the future machines for more complex
applications with higher ASPs and margins."
Continued Mr. Amit, "We are seeing strong business
momentum. We entered the second quarter with record backlog
resulting in good visibility and we expect a significant increase
in revenue to between $36-38 million.
In the third quarter, we see increased orders for machines with
more advanced capabilities and we expect to show an improvement in
profitability. It is important to stress that we are still within
the Coronavirus pandemic and it is difficult to anticipate its full
magnitude and impact on our business in the coming months."
First Quarter 2020 Financial Results
Revenues for the first quarter of 2020 were
$30.2 million, a decrease of 11%
compared with the first quarter of 2019.
Gross profit on a GAAP basis in the quarter totaled
$13.6 million (44.9% of revenues),
compared to a gross profit of $17.2
million (50.5% of revenues) in the first quarter of 2019.
Gross profit on a non-GAAP basis in the quarter totaled
$13.6 million (45.2% of revenues),
compared to $17.2 million (50.6% of
revenues) in the first quarter of 2019. The decrease in the gross
margin in the quarter was due to lower revenue and a less favorable
product mix in the quarter.
Operating profit on a GAAP basis in the quarter totaled
$2.9 million (9.5% of revenues),
compared to an operating profit of $6.7
million (19.6% of revenues) in the first quarter of 2019.
Operating profit on a non-GAAP basis in the quarter totaled
$3.7 million (12.2% of revenues),
compared to $7.3 million (21.5% of
revenues) in the first quarter of 2019.
Net income on a GAAP basis in the quarter totaled
$2.8 million, or $0.07 per diluted share, compared to net income
of $6.0 million, or $0.16 per diluted share, in the first quarter of
2019. Net income on a non-GAAP basis in the quarter totaled
$3.6 million, or $0.09 per diluted share, compared to non-GAAP net
income of $6.7 million, or
$0.18 per diluted share, in the first
quarter of 2019.
Cash and cash equivalents and short-term deposits, as of
March 31, 2020 were $90.6 million compared to $89.5 million as of December 31, 2019. During the quarter, Camtek
generated $1.3 million in operating
cash flow.
Conference Call
Camtek will host a conference call today, May 11, 2020, at 9:00am
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 9:00am Eastern
Time
|
Israel:
|
03 918
0609
|
at 4:00pm 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. Camtek does not assume any
obligation to update that information. It is important to note that
there is no way to predict how the coronavirus situation will
evolve further and impact Camtek's business. 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 new products and their
adoption by the market, increased competition in the
industry, the length and severity of the recent COVID-19
(coronavirus) outbreak, including its impacts across our businesses
on demand, operations, and our global supply chains, intellectual
property litigation, and 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) discontinued
operations, and (iii) Chroma transaction expenses, 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. and its
subsidiaries
|
Consolidated
Balance Sheets
|
(In
thousands)
|
|
|
March
31,
|
December
31,
|
|
2020
|
2019
|
|
U.S.
Dollars
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
49,086
|
38,047
|
Short-term
deposits
|
41,500
|
51,500
|
Trade accounts
receivable, net
|
37,141
|
31,443
|
Inventories
|
26,476
|
23,803
|
Other current
assets
|
3,083
|
2,909
|
|
|
|
Total current
assets
|
157,286
|
147,702
|
|
|
|
|
|
|
Fixed assets,
net
|
18,548
|
18,526
|
|
|
|
Long term
inventory
|
2,881
|
2,791
|
Deferred tax
asset
|
745
|
746
|
Other assets,
net
|
113
|
113
|
Intangible assets,
net
|
474
|
491
|
|
|
|
|
4,213
|
4,141
|
|
|
|
Total
assets
|
180,047
|
170,369
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
Current
liabilities
|
|
|
Trade accounts
payable
|
16,253
|
11,334
|
Other current
liabilities
|
21,650
|
20,272
|
|
|
|
Total current
liabilities
|
37,903
|
31,606
|
|
|
|
Long term
liabilities
|
|
|
Other long term
liabilities
|
2,187
|
2,461
|
|
2,187
|
2,461
|
|
|
|
Total
liabilities
|
40,090
|
34,067
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
Shareholders'
equity
|
|
|
Ordinary shares NIS
0.01 par value, 100,000,000 shares authorized at
March 31, 2020 and at December 31, 2019;
|
|
|
40,765,912
issued shares at March 31, 2020 and 40,742,355 at
December 31, 2019;
|
|
|
38,673,536 shares
outstanding at March 31, 2020 and 38,649,979 at
December 31, 2019
|
157
|
157
|
Additional paid-in
capital
|
102,202
|
101,327
|
Retained
earnings
|
39,496
|
36,716
|
|
141,855
|
138,200
|
Treasury stock, at
cost (2,092,376 as of March 31, 2020 and
December 31, 2019)
|
(1,898)
|
(1,898)
|
|
|
|
Total shareholders'
equity
|
139,957
|
136,302
|
|
|
|
Total liabilities
and shareholders' equity
|
180,047
|
170,369
|
Camtek
Ltd.
|
Consolidated
Statements of Operations
|
(in thousands,
except share data)
|
|
|
Three months
ended
March
31,
|
Year
ended
December
31,
|
|
2020
|
2019
|
2019
|
|
U.S.
dollars
|
U.S.
dollars
|
|
|
|
|
Revenues
|
30,179
|
34,002
|
134,019
|
Cost of
revenues
|
16,622
|
16,846
|
69,235
|
|
|
|
|
Gross
profit
|
13,557
|
17,156
|
64,784
|
|
|
|
|
|
|
|
|
Research and
development costs
|
4,130
|
3,924
|
16,331
|
Selling, general and
administrative expenses
|
6,559
|
6,575
|
26,481
|
|
|
|
|
Total operating
expenses
|
10,689
|
10,499
|
42,812
|
|
|
|
|
Operating
income
|
2,868
|
6,657
|
21,972
|
|
|
|
|
Financial income,
net
|
375
|
17
|
801
|
|
|
|
|
Income from
continuing operations before
incomes taxes
|
3,243
|
6,674
|
22,773
|
|
|
|
|
Income tax
expense
|
(463)
|
(647)
|
(1,950)
|
|
|
|
|
Net income from
continuing operations
|
2,780
|
6,027
|
20,823
|
|
|
|
|
Income from
discontinued operations
|
|
|
|
Income before income
tax expense
|
-
|
-
|
1,257
|
Income tax
expense
|
-
|
-
|
(94)
|
|
|
|
|
Net income from
discontinued operations
|
-
|
-
|
1,163
|
|
|
|
|
Net
income
|
2,780
|
6,027
|
21,986
|
|
|
Three months
ended
March
31,
|
Year
ended
December
31,
|
|
2020
|
2019
|
2019
|
|
U.S.
dollars
|
U.S.
dollars
|
|
|
|
|
Basic earnings from
continuing operations
|
0.07
|
0.17
|
0.55
|
|
|
|
|
Basic earnings from
discontinued operations
|
-
|
-
|
0.03
|
|
|
|
|
Basic net
earnings
|
0.07
|
0.17
|
0.58
|
|
|
|
|
Diluted earnings
from continuing operations
|
0.07
|
0.16
|
0.54
|
|
|
|
|
Diluted earnings
from discontinued operations
|
-
|
-
|
0.03
|
|
|
|
|
Diluted net
earnings
|
0.07
|
0.16
|
0.57
|
|
|
|
|
Weighted average
number of
|
|
|
|
ordinary
shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
38,665
|
36,476
|
37,626
|
|
|
|
|
Diluted
|
39,628
|
37,267
|
38,432
|
Camtek
Ltd.
|
Reconciliation of
GAAP To Non-GAAP results
|
(In thousands,
except share data)
|
|
|
Three months
ended
March
31,
|
Year
ended
December
31,
|
|
|
2020
|
2019
|
2019
|
|
|
U.S.
dollars
|
U.S.
dollars
|
|
|
|
|
|
|
Reported net income
attributable
to Camtek Ltd. on GAAP basis
|
2,780
|
6,027
|
21,986
|
Share-based
compensation
|
817
|
645
|
2,892
|
Chroma transaction
expenses (1)
|
-
|
-
|
136
|
Attributable to
discontinued operations
|
-
|
-
|
(1,163)
|
Non-GAAP net
income
|
3,597
|
6,672
|
23,851
|
|
|
|
|
Non –GAAP net
income per share,
basic and diluted
|
0.09
|
0.18
|
0.62
|
Gross margin on
GAAP basis
|
44.9%
|
50.5%
|
48.3%
|
Reported gross
profit on GAAP basis
|
13,557
|
17,156
|
64,784
|
Share-based
compensation
|
86
|
61
|
292
|
Non- GAAP gross
margin
|
45.2%
|
50.6%
|
48.6%
|
Non-GAAP gross
profit
|
13,643
|
17,217
|
65,076
|
|
|
|
|
Reported operating
income
attributable to
Camtek Ltd. on GAAP basis
|
2,868
|
6,657
|
21,972
|
Share-based
compensation
|
817
|
645
|
2,892
|
Chroma transaction
expenses (1)
|
|
-
|
136
|
Non-GAAP operating
income
|
3,685
|
7,302
|
25,000
|
|
(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.
|
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
Tel: (US) 1 646 688
3559
camtek@gkir.com
|
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SOURCE Camtek Ltd