MIGDAL HAEMEK, Israel,
Nov. 7, 2017 /PRNewswire/
-- Camtek Ltd. (NASDAQ: CAMT) (TASE: CAMT), today
announced its financial results for the quarter ended September 30, 2017.
Financial highlights of the third quarter 2017
- Semiconductor revenues were $23.8
million, up 13% year-over-year, in the upper end of the
guidance range and a record for the semiconductor segment;
- GAAP gross margins reached 49.3%; non GAAP gross margin of
49.4%;
- GAAP operating margins of 12.0%; non-GAAP operating margins of
12.3%;
- GAAP net profit of $11.7
million;
- Non-GAAP net income from continuing semiconductor operations of
$2.9 million; up 194%
year-over-year;
- End of quarter net cash balance of $21.7
million; additional $22.0
million received on October 2,
2017 as second installment of the PCB transaction.
Guidance for the Fourth Quarter of 2017
Fourth quarter revenues are expected to increase to between
$24-25 million, while operating costs
are expected to decrease and continue to benefit from Camtek
becoming a focused semiconductor inspection and metrology company.
As a result, non-GAAP operating margins are expected to improve to
approximately 15% in the fourth quarter of 2017, with continued
improvement in 2018.
Due to the completion of the sale of Camtek's PCB business at
the end of the third quarter, the results of this unit ceased to be
consolidated into Camtek's financial statements and are accounted
for as discontinued operations in both the current period ended
September 30, 2017, as well as the
comparative periods. Following the sale of the PCB business, the
Company recorded one-time income of $12.5
million to GAAP net income in the third quarter 2017
results. This amount is excluded from the non-GAAP results. The
reconciliation between the GAAP and non-GAAP results appears in the
tables at the end of this press release.
Dividend Announcement
Camtek's Board of Directors declared a cash dividend in the
amount of $0.14 per share
representing an aggregate distribution of approximately
$4.9 million. The dividend will be
paid on November 30, 2017 to all
shareholders of record at the close of the NASDAQ Global Select
Market on November 22, 2017.
Management Comment
Rafi Amit, Camtek's CEO,
commented, "The past few months have been very significant for
Camtek from a strategic perspective. We successfully completed the
divestment of our PCB business, settled outstanding legal
litigation and minimized our FIT-related expenses. Following these
initiatives, Camtek has now become a focused semiconductor
inspection and metrology company, with significantly reduced
operating expenses, which will allow us to continue to support
strong and growing levels of profitability."
Added Mr. Amit, "Our guidance for the fourth quarter
calls for continued sequential growth in our revenue, built on
strong momentum in our markets and we do not see any sign of a
seasonal or other slowdown in demand. We intend to capitalize on
this momentum and the opportunities we see in our end markets. We
recently completed developing a number of breakthrough technologies
which will enable us to increase our total available market. We
expect them also to increase our market share both in the metrology
and the inspection segments. We introduced our new inspection
platform, EagleT2D, to the market at the beginning of
the year and have already sold it to several major customers.
Furthermore, our new system dedicated for the 3D Advance Packaging
market, EagleT-AP, was tested by a number of tier-1
customers, showing excellent performance in terms of accuracy and
throughput, leaving behind all our competitors' latest systems.
Following the positive feedback from our customers, we expect to
receive orders for multiple systems in the first half of 2018. We
believe that these achievements will enable us to increase our
dominance in the 3D segment of the advanced packaging sector,
strengthening our leading competitive position."
Concluded Mr. Amit, "Given the significant $32 million in cash that we received from the PCB
transaction, and in light of the high level of cash on our balance
sheet, the Board of Directors decided to distribute dividend to
shareholders which amounted to $4.9
million. This is a reflection of our continued success and
our dedication to the creation of shareholder value. We look
forward to bringing our business to the next level over the coming
years, with even greater vigor and focus."
Third Quarter 2017 Financial Results
Revenues for the third quarter of 2017 were $23.8 million. This compares to third quarter
2016 revenues of $21.0 million, a
growth of 13%.
Gross profit on a GAAP and non-GAAP basis in the quarter
totaled $11.8 million (49.3% and
49.4% of revenues, respectively). This is compared to $4.4 million (20.9% of revenue) on a GAAP basis
and $9.3 million (44.4% of revenues)
on a non-GAAP basis in the third quarter 2016. The gross profit in
2016 on a GAAP basis included one-time costs related to the
reorganization of Camtek's FIT business. The variance in the
non-GAAP 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
$2.8 million (12.0% of revenues),
compared to an operating profit of $0.3
million (1.4% of revenues) in the third quarter 2016.
Operating profit on a non-GAAP basis in the quarter
totaled $2.9 million (12.3% of
revenues), compared to $1.3 million
(6.0% of revenues), in the third quarter 2016.
Net income on a GAAP basis in the quarter totaled
$11.7 million, or $0.33 per share. This income consists of
$2.8 million in net income from
continuing operations and $8.9
million from the discontinued operations and the sale of the
PCB business. This compares to net income of $1.1 million, or $0.03 per diluted share in the third quarter
2016.
Net income from continuing operations on a non-GAAP basis
in the quarter totaled $2.9 million,
or $0.08 per diluted share, compared
to non-GAAP net income of $1.0
million, or $0.03 per diluted
share, in the third quarter 2016.
Cash, cash equivalents, short and long-term restricted
deposits, as of September 30,
2017 were $21.7 million
compared to $19.7 million as of
December 31, 2016. During the third
quarter, Camtek paid Rudolph $13
million in a legal settlement. Camtek also received
$10 million in initial proceeds from
the sale of its PCB business. On October 2,
2017, Camtek received a further $22
million in proceeds from the sale of its PCB business.
Conference Call
Camtek will host a conference call today, November 7, 2017, at 9:00
am ET.
Rafi Amit, CEO, Moshe Eisenberg, CFO and Ramy Langer, VP, Head of the Semiconductors
Business 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:
|
1 866 860
9642
|
at 9:00 am Eastern
Time
|
Israel:
|
03 918
0685
|
at 4:00 pm Israel
Time
|
International:
|
+972 3 918
0685
|
|
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 Semiconductors 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) discontinued operations; (ii) revaluation of liabilities with
respect to the acquisition of Printar; (iii) share based
compensation expenses, ( iv) changes in valuation allowance on
deferred tax assets, and (v) settlement 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
|
Interim Unaudited
Condensed Consolidated Balance Sheets
|
(In
thousands)
|
|
|
|
|
|
September
30,
|
December
31,
|
|
2017
|
*2016
|
|
U.S. Dollars (in
thousands)
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
21,686
|
19,740
|
Due from sale of PCB
business
|
24,929
|
-
|
Trade accounts
receivable, net
|
26,374
|
22,066
|
Inventories
|
21,891
|
16,647
|
Due from affiliated
companies
|
430
|
-
|
Other current
assets
|
2,396
|
2,039
|
Current assets held
for sale
|
-
|
25,018
|
|
|
|
Total current
assets
|
97,706
|
85,510
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
15,841
|
13,725
|
|
|
|
Long-term
inventory
|
1,390
|
1,461
|
Deferred tax
assets
|
5,048
|
**4,073
|
Other assets,
net
|
270
|
270
|
Intangible assets,
net
|
482
|
519
|
|
|
|
Total long-term
assets
|
7,190
|
6,323
|
|
|
|
Total
assets
|
120,737
|
105,558
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
Current
liabilities
|
|
|
Short-term bank
loans
|
3,000
|
-
|
Trade accounts
payable
|
15,252
|
10,304
|
Other current
liabilities
|
16,472
|
14,722
|
Due to affiliated
companies
|
-
|
18
|
Current liabilities
held for sale
|
-
|
6,482
|
|
|
|
Total current
liabilities
|
34,724
|
31,526
|
|
|
|
Long term
liabilities
|
|
|
Liability for
employee severance benefits
|
826
|
667
|
Total long-term
liabilities
|
826
|
667
|
|
|
|
Total
liabilities
|
35,550
|
32,193
|
|
|
|
Shareholders'
equity
|
|
|
Ordinary shares NIS
0.01 par value, 100,000,000 shares authorized at September 30, 2017
and at December 31, 2016;
|
|
|
37,509,868 issued
shares at September 30, 2017 and 37,440,552 at December 31,
2016;
|
|
|
35,417,492 shares
outstanding at September 30, 2017 and 35,348,176 at December 31,
2016;
|
148
|
148
|
Additional paid-in
capital
|
77,184
|
76,463
|
Retained earnings
(accumulated deficit)
|
9,753
|
(1,348)
|
|
87,085
|
75,263
|
Treasury stock, at
cost (2,092,376 as of September 30, 2017 and December 31,
2016)
|
(1,898)
|
(1,898)
|
|
|
|
Total shareholders'
equity
|
85,187
|
73,365
|
|
|
|
Total liabilities
and shareholders' equity
|
120,737
|
105,558
|
* The financial position of the PCB business is presented as
discontinued operations.
** Reclassified
Camtek Ltd. and its
Subsidiaries
|
Interim Unaudited
Condensed Consolidated Statements of Operations
|
(In thousands,
except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months
ended
|
Three
months
|
Year
ended
|
|
September
30,
|
ended September
30,
|
December
31,
|
|
2017
|
*2016
|
2017
|
*2016
|
*2016
|
|
U.S.
dollars
|
U.S.
dollars
|
U.S.
dollars
|
|
|
|
|
|
|
Revenues
|
67,641
|
57,703
|
23,813
|
21,034
|
79,228
|
Cost of
revenues
|
34,447
|
30,371
|
12,063
|
11,706
|
41,807
|
Reorganization and
impairment
|
-
|
4,931
|
-
|
4,931
|
4,931
|
|
|
|
|
|
|
Gross
profit
|
33,194
|
22,401
|
11,750
|
4,397
|
32,490
|
|
|
|
|
|
|
Research and
development costs
|
10,067
|
9,497
|
3,215
|
3,000
|
12,630
|
Selling, general
and
|
|
|
|
|
|
administrative
expenses
|
16,847
|
16,048
|
5,688
|
5,161
|
21,900
|
Reorganization and
impairment
|
-
|
(4,059)
|
-
|
(4,059)
|
(4,059)
|
Expenses from
settlement
|
13,000
|
-
|
-
|
-
|
-
|
|
39,914
|
21,486
|
8,903
|
4,102
|
30,471
|
|
|
|
|
|
|
Operating income
(loss)
|
(6,720)
|
915
|
2,847
|
295
|
2,019
|
|
|
|
|
|
|
Financial income
(expenses), net
|
(199)
|
(543)
|
10
|
(164)
|
(847)
|
|
|
|
|
|
|
Income (loss) from
continuing operations before taxes
|
(6,919)
|
372
|
2,857
|
131
|
1,172
|
|
|
|
|
|
|
Income tax benefit
(expense)
|
5,281
|
(271)
|
(83)
|
(124)
|
(303)
|
|
|
|
|
|
|
Net income (loss)
from continuing operations
|
(1,638)
|
101
|
2,774
|
7
|
869
|
|
|
|
|
|
|
Discontinued
operations *
|
|
|
|
|
|
Income from
discontinued operations
|
|
|
|
|
|
Income before tax
expense
|
18,302
|
2,807
|
13,963
|
1,308
|
4,450
|
Income tax
expense
|
(5,563)
|
(521)
|
(5,058)
|
(237)
|
(585)
|
|
|
|
|
|
|
Income from
discontinued operations
|
12,739
|
2,286
|
8,905
|
1,071
|
3,865
|
|
|
|
|
|
|
Net
income
|
11,101
|
2,387
|
11,679
|
1,078
|
4,734
|
* The financial results of the PCB business are presented as
discontinued operations.
Camtek Ltd. and its
Subsidiaries
|
Interim Unaudited
Condensed Consolidated Statements of Operations
(contd.)
|
Net income (loss)
per ordinary share:
|
|
|
|
|
|
|
|
|
|
Nine months
ended
|
Three months
ended
|
Year
ended
|
|
September
30,
|
September
30
|
December
31
|
|
2017
|
*2016
|
2017
|
*2016
|
*2016
|
|
U.S.
dollars
|
U.S.
dollars
|
U.S.
dollars
|
Basic earnings from
continuing operations
|
(0.05)
|
0.00
|
0.08
|
0.00
|
0.02
|
|
|
|
|
|
|
Basic earnings from
discontinued operations
|
0.36
|
0.06
|
0.25
|
0.03
|
0.11
|
|
|
|
|
|
|
Basic net
earnings
|
0.31
|
0.07
|
0.33
|
0.03
|
0.13
|
|
|
|
|
|
|
Diluted earnings
from continuing operations
|
(0.05)
|
0.00
|
0.08
|
0.00
|
0.02
|
|
|
|
|
|
|
Diluted earnings
from discontinued operations
|
0.35
|
0.06
|
0.24
|
0.03
|
0.11
|
|
|
|
|
|
|
Diluted net
earnings
|
0.31
|
0.07
|
0.32
|
0.03
|
0.13
|
|
|
|
|
|
|
Weighted average
number of
|
|
|
|
|
|
ordinary
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
35,374
|
35,348
|
35,404
|
35,348
|
35,348
|
|
|
|
|
|
|
Diluted
|
35,972
|
35,367
|
36,361
|
35,381
|
35,376
|
Camtek Ltd. and its
Subsidiaries
|
Reconciliation of
GAAP To Non-GAAP results
|
(In thousands,
except share data)
|
|
|
|
|
|
|
|
|
Nine Months
ended
|
Three Months
ended
|
Year
ended
|
|
September
30,
|
September
30,
|
December
31,
|
|
2017
|
2016
|
2017
|
2016
|
2016
|
|
U.S.
dollars
|
U.S.
dollars
|
U.S.
dollars
|
|
|
|
|
|
|
Reported net income
attributable to Camtek Ltd. on GAAP basis
|
11,101
|
2,387
|
11,679
|
1,078
|
4,734
|
Settlement expense,
net of tax (1)
|
12,025
|
-
|
-
|
-
|
-
|
Realization of
deferred tax assets (2)
|
(4,495)
|
-
|
-
|
-
|
-
|
Effect of FIT
reorganization (3)
|
-
|
872
|
-
|
872
|
872
|
Acquisition of Sela
and Printar related expenses (4)
|
-
|
183
|
-
|
-
|
183
|
Share-based
compensation
|
276
|
269
|
92
|
96
|
363
|
Attributable to
discontinued operations including income from sale of PCB business
(5)
|
(12,739)
|
(2,286)
|
(8,905)
|
(1,071)
|
(3,865)
|
|
|
|
|
|
|
Non-GAAP net
income
|
6,168
|
1,425
|
2,866
|
975
|
2,287
|
|
|
|
|
|
|
Non–GAAP net
income per share, basic and diluted
|
0.17
|
0.04
|
0.08
|
0.03
|
0.06
|
Gross margin on
GAAP basis from continuing operations
|
49.1%
|
38.8%
|
49.3%
|
20.9%
|
41.0%
|
Reported gross
profit on GAAP basis
|
33,194
|
22,401
|
11,750
|
4,397
|
32,490
|
Effect of FIT
reorganization (3)
|
-
|
4,931
|
-
|
4,931
|
4,931
|
Share-based
compensation
|
28
|
26
|
9
|
9
|
31
|
|
|
|
|
|
|
Non- GAAP gross
margin
|
49.1%
|
47.4%
|
49.4%
|
44.4%
|
47.3%
|
Non-GAAP gross
profit
|
33,222
|
27,358
|
11,759
|
9,337
|
37,452
|
|
|
|
|
|
|
Reported operating
income (loss) attributable to Camtek Ltd. on GAAP basis from
continuing operations
|
(6,720)
|
915
|
2,847
|
295
|
2,019
|
Settlement expense
(1)
|
13,000
|
-
|
-
|
-
|
-
|
Effect of FIT
reorganization (3)
|
-
|
872
|
-
|
872
|
872
|
Share-based
compensation
|
276
|
269
|
92
|
96
|
363
|
|
|
|
|
|
|
Non-GAAP operating
income
|
6,556
|
2,056
|
2,939
|
1,263
|
3,254
|
(1) During the nine months ended
September 30, 2017, the Company
recorded a provision of $13 million
($12 million net of tax) in
conjunction settlement with Rudolph Technologies Inc.
(2) During the nine months ended
September 30, 2017 the Company
recorded net income of $4.5 million
as a result of a decrease in the valuation allowance on deferred
tax assets following the evaluation of the realizability of the
assets based on projected future earnings.
(3) During the three and nine months
ended September 30, 2016 and the year
ended December 31, 2016, the Company
recorded reorganization costs with regard to the FIT activities
of $0.9 million, consisting of:
(1) inventory and fixed asset write-offs of $4.9 million, recorded under cost of revenues
line item; (2) other expenses of $0.1
million, recorded under cost of revenues line item; (3)
fixed asset write-offs of $0.7
million, recorded under operating expenses; (4) other
expenses of $0.2 million, recorded
under operating expenses; and (5) income from write-off of
liabilities to OCS $5.0 million,
recorded under operating expenses.
(4) During the nine months ended
September 30, 2016 and the year ended
December 31, 2016, the Company
recorded acquisition expenses of $0.2
million, consisting of revaluation adjustments of
$0.2 million of contingent
consideration and certain future liabilities recorded at fair
value. These amounts are recorded under finance expenses line
item.
(5) Due to the completion of the sale of
Camtek's PCB business at the end of the third quarter of 2017, the
results of this unit ceased to be consolidated into Camtek's
financial statements and are accounted for as discontinued
operations in both the current period ended September 30, 2017, as well as the comparative
periods. Following the sale of the PCB business, the Company
recorded one-time income of $12.5
million to GAAP net income in the third quarter 2017
results. This amount is excluded from the non-GAAP results.
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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content:http://www.prnewswire.com/news-releases/camtek-announces-third-quarter-2017-results-300550800.html
SOURCE Camtek Ltd