MIGDAL HAEMEK, Israel,
Aug. 6, 2019 /PRNewswire/ -- Camtek
Ltd. (NASDAQ: CAMT) (TASE: CAMT), today announced its financial
results for the quarter ended June 30,
2019.
Highlights of the Second Quarter 2019
- Revenues were a record at $34.3
million, up 13% year-over-year;
- GAAP gross margin at 48.2% versus 48.9% in Q2 last year;
Non-GAAP gross margin at 48.4% versus 49.0%;
- GAAP operating income was $6.4
million and non-GAAP operating income was $7.0 million, representing margins of 18.5% and
20.5%, respectively;
- GAAP net income of $7.2 million
or $0.19 per diluted share, and
non-GAAP net income of $6.7 million,
or $0.18 per diluted share,
representing year-over-year growth of 66% and 46%, respectively;
and
- Operating cash flow of $7.3
million with $85.3 million in
cash at quarter-end;
-
- Cash includes $16 million from
the issuance of new shares to Chroma and a full earn-out payment of
$1.3 million related to the sale of
the PCB;
Dividend Announcement
Camtek's Board of Directors declared a cash dividend in the
amount of $0.17 per share
representing an aggregate distribution of approximately
$6.5 million. The dividend will be
paid on September 4, 2019 to all
shareholders of record at the close of the NASDAQ Global Select
Market on August 21, 2019.
Management Comment
Rafi Amit Camtek's CEO commented, "Camtek's second
quarter results reflect our strong track record of execution with
record revenues and robust profitability. This is despite the
current weaker semiconductor market.
One of the consequences of the market uncertainty is that our
customers are ordering equipment only for their short-term
production needs and require short delivery times.
As a result, for the third quarter, while we still expect a
solid level of revenues, our expectations are for revenues within
the range of $31 - 33
million."
Continued Mr. Amit, "In the first half of 2019 we
achieved an impressive revenue level of $68.3 million, 18% higher than in the first half
of 2018, which itself was a record year for Camtek and the
semiconductors industry. This performance demonstrates Camtek's
strong position in the market. Fundamental market drivers for our
equipment demand have not changed and Camtek is in an excellent
position to win as the market ramps up."
Second Quarter 2019 Financial Results
Revenues for the second quarter of 2019 were
$34.3 million. This compares to
second quarter 2018 revenues of $30.5
million, a growth of 13%.
Gross profit on a GAAP basis in the quarter totaled
$16.6 million (48.2% of revenues), up
11% compared to a gross profit of $14.9
million (48.9% of revenues) in the second quarter of 2018.
Gross profit on a non-GAAP basis in the quarter totaled
$16.6 million (48.4% of revenues), up
11% compared to a gross profit of $14.9
million (49.0% of revenues) in the second quarter of
2018.
Operating profit on a GAAP basis in the quarter totaled
$6.4 million (18.5% of revenues), up
35% compared to an operating profit of $4.7
million (15.5% of revenues) in the second quarter of 2018.
Operating profit on a non-GAAP basis in the quarter totaled
$7.0 million (20.5% of revenues), up
42% compared to $5.0 million (16.3%
of revenues) in the second quarter of 2018.
Net income on a GAAP basis in the quarter totaled
$7.2 million, or $0.19 per diluted share, up 66% compared to net
income of $4.3 million, or
$0.12 per diluted share, in the
second quarter of 2018. Net income on a non-GAAP basis in the
quarter totaled $6.7 million, or
$0.18 per diluted share, up 46%
compared to a non-GAAP net income of $4.6
million, or $0.13 per diluted
share, in the second quarter of 2018.
Cash and cash equivalents, as of June 30, 2019, were $85.3
million compared to $54.9
million as of December 31,
2018. During the quarter the Company generated a positive
operating cash flow of $7.3 million.
In addition, the Company received an earn-out payment of
$1.3 million related to the sale of
the PCB business in 2017. Camtek also closed the Chroma
transaction, receiving $16 million
from the issuance of new shares.
Conference Call
Camtek will host a conference call today, August 6, 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:
1-866-744-5399
at 9:30 am Eastern Time
Israel:
03-918-0685 at
4:30 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.
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.
.
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Camtek
Ltd.
|
Consolidated
Balance Sheets
|
(In
thousands)
|
|
June
30,
|
|
December
31,
|
|
|
2019
|
|
2018
|
|
U.S. Dollars (In
thousands)
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
85,268
|
|
54,935
|
Trade accounts
receivable, net
|
26,387
|
|
31,644
|
Inventories
|
29,809
|
|
30,109
|
Other current
assets
|
2,464
|
|
2,613
|
|
Total current assets
|
143,928
|
|
119,301
|
|
|
Fixed assets, net
|
*18,212
|
|
17,117
|
|
Long term
inventory
|
2,462
|
|
2,056
|
Deferred tax
asset
|
1,456
|
|
2,366
|
Other assets,
net
|
231
|
|
231
|
Intangible assets,
net
|
502
|
|
476
|
|
|
4,651
|
|
5,129
|
|
Total
assets
|
166,791
|
|
141,547
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|
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|
|
Liabilities and
shareholders' equity
|
|
|
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Current
liabilities
|
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|
Trade accounts
payable
|
12,132
|
|
15,541
|
Other current
liabilities
|
*19,939
|
|
23,179
|
|
Total current
liabilities
|
32,071
|
|
38,720
|
|
Long term
liabilities
|
|
|
|
Other long term
liabilities
|
*2,495
|
|
1,420
|
|
2,495
|
|
1,420
|
|
Total liabilities
|
34,566
|
|
40,140
|
|
Commitments and
contingencies
|
|
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Shareholders'
equity
|
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|
|
Ordinary shares NIS
0.01 par value, 100,000,000 shares authorized at
June 30, 2019 and at December 31, 2018;
|
|
|
|
40,615,239issued
shares at June 30, 2019 and 38,535,445 at
December 31, 2018;
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|
38,522,863shares
outstanding at June 30, 2019 and 36,443,069 at
December 31, 2018
|
|
|
|
157
|
|
151
|
Additional paid-in
capital
|
99,469
|
|
81,873
|
Retained
earnings
|
34,497
|
|
21,281
|
|
134,123
|
|
103,305
|
Treasury stock, at
cost (2,092,376 as of June 30, 2019 and December
31, 2018)
|
|
(1,898)
|
|
(1,898)
|
|
Total shareholders'
equity
|
132,225
|
|
101,407
|
|
Total liabilities
and shareholders' equity
|
166,791
|
|
141,547
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*Includes adjustment
in respect of implementation of ASC 842 - Leases
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Camtek
Ltd.
|
Consolidated
Statements of Operations
|
(in thousands,
except share data)
|
|
Six Months
ended
June 30,
|
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Three Months
ended
June 30,
|
|
Year ended
December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2018
|
|
U.S.
dollars
|
|
U.S.
dollars
|
|
U.S.
dollars
|
Revenues
|
68,348
|
|
57,736
|
|
34,346
|
|
30,462
|
|
123,174
|
Cost of
revenues
|
34,623
|
|
29,840
|
|
17,777
|
|
15,563
|
|
62,378
|
|
|
Gross
profit
|
33,725
|
|
27,896
|
|
16,569
|
|
14,899
|
|
60,796
|
|
|
|
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Research and
development costs
|
7,727
|
|
6,955
|
|
3,803
|
|
3,406
|
|
14,581
|
Selling, general and
administrative expenses
|
12,987
|
|
12,664
|
|
6,412
|
|
6,775
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|
26,182
|
|
20,714
|
|
19,619
|
|
10,215
|
|
10,181
|
|
40,763
|
|
Operating
income
|
13,011
|
|
8,277
|
|
6,354
|
|
4,718
|
|
20,033
|
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Financial income,
net
|
152
|
|
436
|
|
135
|
|
146
|
|
728
|
|
Income from
continuing operations
|
|
|
|
|
|
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before
income taxes
|
13,163
|
|
8,713
|
|
6,489
|
|
4,864
|
|
20,761
|
|
Income tax
expense
|
1,110
|
|
848
|
|
463
|
|
533
|
|
2,030
|
|
Net income from
continuing operations
|
12,053
|
|
7,865
|
|
6,026
|
|
4,331
|
|
18,731
|
|
|
|
|
|
|
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Discontinued
operations *
|
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Income from
discontinued operations
|
|
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|
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Income before tax
expense
|
1,257
|
|
|
|
1,257
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|
|
|
|
Income tax
expense
|
94
|
|
-
|
|
94
|
|
-
|
|
-
|
|
Net income from
discontinued operations
|
1,163
|
|
-
|
|
1,163
|
|
-
|
|
-
|
|
Net
income
|
13,216
|
|
7,865
|
|
7,189
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|
4,331
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|
18,731
|
|
*Relates to the
earn-out payment received from the sale of the PCB
business.
|
Net income (loss)
per ordinary share:
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|
Six months
ended
June 30
|
|
Three months
ended
June 30,
|
|
Year ended
December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2018
|
|
U.S.
dollars
|
|
U.S.
dollars
|
|
U.S.
dollars
|
Basic earnings
from continuing
operation
|
0.33
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|
0.22
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|
0.16
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|
0.12
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|
0.52
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Basic earnings
from discontinued
operation
|
0.03
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|
-
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|
0.03
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-
|
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-
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Basic net
earnings
|
0.36
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|
0.22
|
|
0.19
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|
0.12
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|
0.52
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Diluted earnings
from continuing
operation
|
0.32
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|
0.22
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|
0.16
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|
0.12
|
|
0.51
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|
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|
|
|
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Diluted earnings
from discontinued
operation
|
0.03
|
|
-
|
|
0.03
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|
-
|
|
-
|
|
|
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|
Diluted net
earnings
|
0.35
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|
0.22
|
|
0.19
|
|
0.12
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|
0.51
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Weighted average
number of
|
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ordinary
shares outstanding:
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Basic
|
36,644
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|
36,050
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|
36,816
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|
36,090
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36,190
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|
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Diluted
|
37,476
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|
36,512
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37,734
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36,632
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|
36,747
|
Camtek
Ltd.
|
Reconciliation of
GAAP To Non-GAAP results
|
(In thousands,
except share data)
|
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Six Months
ended
June 30,
|
|
Three Months
ended
June 30,
|
|
Year ended
December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2018
|
|
U.S.
dollars
|
|
U.S.
dollars
|
|
U.S.
dollars
|
Reported net income
(loss) attributable
to Camtek Ltd. on GAAP basis
|
13,216
|
|
7,865
|
|
7,189
|
|
4,331
|
|
18,731
|
Share-based
compensation
|
1,250
|
|
395
|
|
605
|
|
249
|
|
1,682
|
Chroma transaction
expenses (1)
|
73
|
|
-
|
|
73
|
|
-
|
|
-
|
Attributable to
discontinued operations
|
(1,163)
|
|
-
|
|
(1,163)
|
|
-
|
|
-
|
Effect of FIT
reorganization (2)
|
-
|
|
506
|
|
-
|
|
-
|
|
506
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income
|
13,376
|
|
8,766
|
|
6,704
|
|
4,580
|
|
20,919
|
|
|
|
|
|
|
|
|
|
|
Non–GAAP net
income per diluted share
|
0.37
|
|
0.24
|
|
0.18
|
|
0.13
|
|
0.57
|
Gross margin on
GAAP basis from
continuing operations
|
49.4%
|
|
48.4%
|
|
48.3%
|
|
48.9%
|
|
49.4%
|
Reported gross
profit on GAAP basis
|
33,725
|
|
27,896
|
|
16,569
|
|
14,899
|
|
60,796
|
Share-based
compensation
|
122
|
|
44
|
|
61
|
|
28
|
|
167
|
Effect of FIT
reorganization (1)
|
-
|
|
-
|
|
-
|
|
-
|
|
205
|
|
|
|
|
|
|
|
|
|
|
Non- GAAP gross
margin
|
33,847
|
|
28,145
|
|
16,630
|
|
14,927
|
|
61,168
|
Non-GAAP gross
profit
|
49.5%
|
|
48.8%
|
|
48.4%
|
|
49.0%
|
|
49.7%
|
|
|
|
|
|
|
|
|
|
|
Reported operating
income attributable
to Camtek Ltd. on GAAP basis from
continuing operations
|
13,011
|
|
8,277
|
|
6,354
|
|
4,718
|
|
20,033
|
Share-based
compensation
|
1,250
|
|
395
|
|
605
|
|
249
|
|
1,682
|
Chroma transaction
expenses (1)
|
73
|
|
-
|
|
73
|
|
-
|
|
-
|
Effect of FIT
reorganization (2)
|
-
|
|
506
|
|
-
|
|
-
|
|
506
|
Non-GAAP operating
income
|
14,334
|
|
9,178
|
|
7,032
|
|
4,967
|
|
22,221
|
|
(1) In the
second quarter 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.