MIGDAL HAEMEK, Israel , Aug. 5, 2020 /PRNewswire/ -- Camtek
Ltd. (NASDAQ: CAMT) (TASE: CAMT), today announced its financial
results for the quarter ended June 30,
2020.
Highlights of the Second Quarter 2020
- Revenues were a quarterly record at $37.0 million, up 8% year-over-year;
- GAAP gross margin at 45.8%; Non-GAAP gross margin at
46.1%;
- GAAP operating income was $5.4
million and non-GAAP operating income was $6.4 million, representing margins of 14.6%
and 17.2%, respectively;
- GAAP net income of $5.3 million,
or $0.13 per diluted share, non-GAAP
net income of $6.3 million, or
$0.16 per diluted share; and
- Strong operating cash flow of $11.1
million with $101.5 million in
net cash and short-term deposits at quarter-end.
Forward-Looking Expectations
Based on orders on hand, management expects continued revenue
growth and improved profitability in the third quarter. Management
expects revenues for the third quarter to be between $38-39 million.
Management Comment
Rafi Amit Camtek's CEO commented, "Camtek's second
quarter results reflect continued demand for our products,
especially in Asia.
"We have increased our market share in 2D inspection mainly as a
result of the significant improvement in our system performance and
competitiveness in all 2D applications. In addition, we are
benefitting from our strategy of having in place local professional
teams that can independently install and support machines in all
our territories. This has enabled us to continue growing our
business even during the COVID-19 pandemic."
Continued Mr. Amit, "The revenues in the second quarter
were at a record level, and the ongoing demands from our customers
for various applications point to a strong third quarter, with
encouraging backlog for the fourth quarter. However, it is
important to stress that we are still seeing the Coronavirus
pandemic effects, which increase risks and uncertainties."
Second Quarter 2020 Financial Results
Revenues for the second quarter of 2020 were
$37.0 million. This compares to
second quarter 2019 revenues of $34.3
million, a growth of 8%.
Gross profit on a GAAP basis in the quarter totaled
$16.9 million (45.8% of revenues), up
2% compared to a gross profit of $16.6
million (48.2% of revenues) in the second quarter of 2019.
Gross profit on a non-GAAP basis in the quarter totaled
$17.0 million (46.1% of revenues), up
3% compared to a gross profit of $16.6
million (48.4% of revenues) in the second quarter of
2019.
Operating profit on a GAAP basis in the quarter totaled
$5.4 million (14.6% of revenues),
compared to an operating profit of $6.4
million (18.5% of revenues) in the second quarter of 2019.
Operating profit on a non-GAAP basis in the quarter totaled
$6.4 million (17.2% of revenues),
compared to $7.0 million (20.5% of
revenues) in the second quarter of 2019.
Net income on a GAAP basis in the quarter totaled
$5.3 million, or $0.13 per diluted share, compared to net income
of $7.2 million, or $0.19 per diluted share, in the second quarter of
2019. Net income on a non-GAAP basis in the quarter totaled
$6.3 million, or $0.16 per diluted share, compared to a non-GAAP
net income of $6.7 million, or
$0.18 per diluted share, in the
second quarter of 2019.
Cash and cash equivalents and short-term deposits, as of
June 30, 2020, were $101.5 million compared to $89.5 million as of December 31, 2019. During the quarter, the
Company generated a positive operating cash flow of $11.1 million, of which $7.6 million were advanced payments from
customers.
Conference Call
Camtek will host a conference call today, August 5, 2020, at 9:00 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:
1 888 407 2553 at 9:00 am Eastern Time
Israel:
03 918
0610 at
4:00 pm Israel Time
International: +972 3 918 0610
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 contains projections or other
forward-looking statements regarding future events or the future
performance of the Company. These statements are only predictions
that represent our views only as of the date they are made and may
change as time passes. We do not assume any obligation to update
that information, except as required by law. These forward-looking
statements are subject to risks and uncertainties that may cause
actual events or results to differ materially from those projected,
including as a result of the effects of general economic
conditions; the effect of the COVID-19 crisis on the global markets
and on the markets in which we operate, including the risk of a
continued disruption to our and our customers', providers',
business partners and contractors' business as a result of the
outbreak and effects of the COVID-19 pandemic; the risks relating
to the concentration of a significant portion of Camtek's expected
business in certain countries, particularly China, from which we expect to generate
significant portion of our revenues for the second half of 2020,
but also Taiwan and Korea,
including the risks of deviations from our expectations regarding
timing and size of orders from customers in these countries;
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.
This press release provides financial measures that exclude:
(i) share based compensation expenses; (ii) certain Chroma
transaction expenses; and (iii) discontinued operations, 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 Sheet
|
|
(In
thousands)
|
|
|
|
June
30,
|
|
December
31,
|
|
2020
|
|
2019
|
|
U.S. Dollars (In
thousands)
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
32,469
|
|
38,047
|
Short-term
deposits
|
69,000
|
|
51,500
|
Trade accounts
receivable, net
|
39,528
|
|
31,443
|
Inventories
|
29,537
|
|
23,803
|
Other current
assets
|
3,523
|
|
2,909
|
Total current
assets
|
174,057
|
|
147,702
|
Fixed assets,
net
|
18,800
|
|
18,526
|
Long term
inventory
|
3,292
|
|
2,791
|
Deferred tax
asset
|
520
|
|
746
|
Other assets,
net
|
80
|
|
113
|
Intangible assets,
net
|
574
|
|
491
|
|
|
|
|
|
4,466
|
|
4,141
|
|
|
|
|
Total
assets
|
197,323
|
|
170,369
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
Current
liabilities
|
|
|
|
Trade accounts
payable
|
20,561
|
|
11,334
|
Other current
liabilities
|
28,170
|
|
20,272
|
Total current
liabilities
|
48,731
|
|
31,606
|
Long term
liabilities
|
|
|
|
Other long term
liabilities
|
2,100
|
|
2,461
|
|
2,100
|
|
2,461
|
Total
liabilities
|
50,831
|
|
34,067
|
Commitments and
contingencies
|
|
|
|
Shareholders'
equity
|
|
|
|
Ordinary shares NIS
0.01 par value, 100,000,000 shares authorized at
June 30, 2020 and at December 31, 2019;
|
|
|
|
41,124,714 issued
shares at June 30, 2019 and 40,742,355 at
December 31, 2019;
|
|
|
|
39,032,338 shares
outstanding at June 30, 2020 and 38,649,979 at
December 31, 2019
|
158
|
|
157
|
Additional paid-in
capital
|
103,428
|
|
101,327
|
Retained
earnings
|
44,804
|
|
36,716
|
|
148,390
|
|
138,200
|
Treasury stock, at
cost (2,092,376 as of June 30, 2020 and December
31, 2019)
|
(1,898)
|
|
(1,898)
|
Total shareholders'
equity
|
146,492
|
|
136,302
|
Total liabilities
and shareholders' equity
|
197,323
|
|
170,369
|
Camtek
Ltd.
|
|
|
Consolidated
Statements of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands,
except share data)
|
|
|
|
|
|
|
|
|
|
|
Six Months
ended
June 30,
|
Three
Months
ended June
30,
|
Year
ended
December
31,
|
|
2020
|
2019
|
2020
|
2019
|
2019
|
|
U.S.
dollars
|
U.S.
dollars
|
U.S.
dollars
|
|
|
|
|
|
|
Revenues
|
67,179
|
68,348
|
37,000
|
34,346
|
134,019
|
Cost of
revenues
|
36,679
|
34,623
|
20,057
|
17,777
|
69,235
|
|
|
|
|
|
|
Gross
profit
|
30,500
|
33,725
|
16,943
|
16,569
|
64,784
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development costs
|
8,884
|
7,727
|
4,754
|
3,803
|
16,331
|
Selling, general and
administrative expenses
|
13,338
|
12,987
|
6,779
|
6,412
|
26,481
|
|
22,222
|
20,714
|
11,533
|
10,215
|
42,812
|
|
|
|
|
|
|
Operating
income
|
8,278
|
13,011
|
5,410
|
6,354
|
21,972
|
|
|
|
|
|
|
Financial income,
net
|
651
|
152
|
276
|
135
|
801
|
|
|
|
|
|
|
Income from
continuing operations
|
|
|
|
|
|
before
income taxes
|
8,929
|
13,163
|
5,686
|
6,489
|
22,773
|
|
|
|
|
|
|
Income tax
expense
|
(841)
|
(1,110)
|
(378)
|
(463)
|
(1,950)
|
|
|
|
|
|
|
Net income from
continuing operations
|
8,088
|
12,053
|
5,308
|
6,026
|
20,823
|
|
|
|
|
|
|
Discontinued
operations *
|
|
|
|
|
|
Income from
discontinued operations
|
|
|
|
|
|
|
|
|
|
|
|
Income before tax
expense
|
-
|
1,257
|
-
|
1,257
|
1,257
|
Income tax
expense
|
-
|
94
|
-
|
94
|
94
|
|
|
|
|
|
|
Net income from
discontinued operations
|
-
|
1,163
|
-
|
1,163
|
1,163
|
|
|
|
|
|
|
Net
income
|
8,088
|
13,216
|
5,308
|
7,189
|
21,986
|
*Relates to the earn-out payment received from the sale of the PCB
business.
|
|
|
Net income per
ordinary share:
|
|
|
|
|
|
|
|
|
Six months
ended
|
Three
months
|
Year
ended
|
June
30,
|
ended June
30,
|
December
31,
|
|
|
2020
|
2019
|
2020
|
2019
|
2019
|
|
Note
|
U.S.
dollars
|
U.S.
dollars
|
U.S.
dollars
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings
from
continuing operation
|
|
0.21
|
0.33
|
0.14
|
0.16
|
0.55
|
|
|
|
|
|
|
|
Basic earnings
from
discontinued operation
|
|
-
|
0.03
|
-
|
0.03
|
0.03
|
|
|
|
|
|
|
|
Basic net
earnings
|
|
0.21
|
0.36
|
0.14
|
0.19
|
0.58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
from
continuing operation
|
|
0.20
|
0.32
|
0.13
|
0.16
|
0.54
|
|
|
|
|
|
|
|
Diluted earnings
from discontinued operations
|
|
-
|
0.03
|
-
|
0.03
|
0.03
|
|
|
|
|
|
|
|
Diluted net
earnings
|
|
0.20
|
0.35
|
0.13
|
0.19
|
0.57
|
|
|
|
|
|
|
|
Weighted average
number of
|
|
|
|
|
|
|
ordinary
shares outstanding
|
|
|
|
|
|
|
(in
thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
38,849
|
36,644
|
39,033
|
36,816
|
37,626
|
|
|
|
|
|
|
|
Diluted
|
|
39,779
|
37,476
|
39,940
|
37,734
|
37,432
|
|
|
|
|
|
|
|
|
|
|
|
|
Camtek
Ltd.
|
|
|
|
|
|
Reconciliation of
GAAP To Non-GAAP results
|
|
|
|
|
|
(In thousands,
except share data)
|
|
|
|
|
|
|
Six Months
ended,
June 30th
|
Six Months
ended,
June 30th
|
Year ended
December 31,
|
|
2020
|
2019
|
2020
|
2019
|
2019
|
|
U.S.
Dollars
|
U.S.
Dollars
|
U.S.
Dollars
|
|
|
|
|
Reported net income
attributable to
Camtek Ltd. on GAAP basis
|
8,088
|
13,216
|
5,308
|
7,189
|
21,986
|
Share-based
compensation
|
1,768
|
1,250
|
951
|
605
|
2,892
|
Chroma transaction
expenses (1)
|
-
|
73
|
-
|
73
|
136
|
Attributable to
discontinued operations
|
-
|
(1,163)
|
-
|
(1,163)
|
(1,163)
|
|
|
|
|
|
|
Non-GAAP net
income
|
9,856
|
13,376
|
6,259
|
6,704
|
23,851
|
|
|
|
|
|
|
Non–GAAP net
income per diluted share
|
0.25
|
0.37
|
0.16
|
0.18
|
0.62
|
Gross margin on
GAAP basis from continuing operations
|
45.4%
|
49.4%
|
45.8%
|
48.2%
|
48.3%
|
Reported gross
profit on GAAP basis
|
30,500
|
33,725
|
16,943
|
16,569
|
64,784
|
Share-based
compensation
|
189
|
122
|
103
|
61
|
292
|
|
|
|
|
|
|
Non- GAAP gross
margin
|
30,689
|
33,847
|
17,046
|
16,630
|
65,076
|
Non-GAAP gross
profit
|
45.7%
|
49.5%
|
46.1%
|
48.4%
|
48.6%
|
|
|
|
|
|
|
Reported operating
income attributable
to Camtek Ltd. on GAAP basis from
continuing operations
|
8,278
|
13,011
|
5,410
|
6,354
|
21,972
|
Share-based
compensation
|
1,768
|
1,250
|
951
|
605
|
2,892
|
Chroma transaction
expenses (1)
|
-
|
73
|
-
|
73
|
136
|
Non-GAAP operating
income
|
10,046
|
14,334
|
6,361
|
7,032
|
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