Camtek Announces Fourth Quarter and Full Year 2017 Results
MIGDAL HAEMEK, Israel, Feb. 7, 2018 /PRNewswire/ -- Camtek Ltd. (NASDAQ: CAMT) (TASE: CAMT), today announced its financial results for the quarter ended December 31, 2017.
Highlights of the fourth quarter 2017
-- Semiconductor revenues were $25.8 million, up 20% year-over-year, ahead
of the upper end of the previously issued guidance range and a record
for the semiconductor segment;
-- GAAP operating income of $3.7 million, representing 14.3% operating
margins; non-GAAP operating income of $3.8 million, representing 14.8%
operating margins
-- GAAP net income from continued operations of $3.3 million; non-GAAP net
income of $3.5 million; up 333% and 303% year-over-year, respectively;
-- First quarter revenue guidance of $26-27 million, represents
approximately 25% year-over-year growth
Highlights of the full year 2017
-- Semiconductors revenues of $93.5 million; 18% year over year increase;
-- GAAP operating loss of $3 million; non-GAAP operating income of $10.4
million;
-- GAAP net income from continued operations of $1.7 million; non-GAAP net
income of $9.6 million;
-- Year-end net cash balance of $43.7 million;
Forward Looking Guidance
First quarter 2018 revenues are expected to be between $26-27 million, representing a year-over-year increase of approximately 25%. The Company expects continued double-digit growth in revenues in 2018, with overall improvement in non-GAAP operating margins.
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. However, they are accounted for as discontinued operations in the full year 2017 results, as well as in the comparative periods. Following the sale of the PCB business, the Company recorded a one-time income of $12.5 million to GAAP net income in 2017. In addition, Camtek paid a one-time legal settlement during 2017 amounting to $13 million. These amounts are 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. The comparisons to 2016 results below include the results only of the continuing operations.
Management Comment
Rafi Amit Camtek's CEO commented, "We are proud to present strong financial results for 2017. The highlight of the year was the strategic steps we took of evolving into a pure-play semiconductor capital equipment company."
Continued Mr. Amit, "We are optimistic with regards to the year ahead. Our cash and strong balance sheet put us in a strong position, which enables us to capitalize on potential growth opportunities. Furthermore, we started the year with our highest ever backlog level, and we have already seen some strong and early order momentum. Accordingly, we expect double-digit revenue growth in 2018, and combined with our strong operating leverage, we expect to enjoy a strong year of profitability."
The financial results and the comparison to 2016 below include only those of the continuing operations:
Fourth Quarter 2017 Financial Results
Revenues for the fourth quarter of 2017 were $25.8 million. This compares to fourth quarter 2016 revenues of $21.5 million, a growth of 20%.
Gross profit on a GAAP and non-GAAP basis in the quarter totaled $12.3 million (47.7% and 47.8% of revenues, respectively). This is compared to $10.1 million (46.9% of revenue) on a GAAP and non-GAAP basis in the fourth quarter 2016. 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 $3.7 million (14.3% of revenues), compared to an operating profit of $1.1 million (5.1% of revenues) in the fourth quarter 2016.
Operating profit on a non-GAAP basis in the quarter totaled $3.8 million (14.8% of revenues), compared to $1.2 million (5.6% of revenues), in the fourth quarter 2016.
Net income on a GAAP basis in the quarter totaled $3.3 million, or $0.09 per diluted share compared to net income of $0.8 million, or $0.02 per diluted share in the fourth quarter 2016.
Net income on a non-GAAP basis in the quarter totaled $3.5 million, or $0.10 per diluted share, compared to non-GAAP net income of $0.9 million, or $0.02 per diluted share, in the fourth quarter 2016.
Cash and cash equivalents, as of December 31, 2017 were $43.7 million compared to $19.7 million as of December 31, 2016. During the quarter, Camtek received $24 million in proceeds from the sale of its PCB business and paid out $5.0 million as a dividend payment to shareholders.
Full Year 2017 Results Summary
Revenues for 2017 were $93.5 million. This compares to revenues of $79.3 million in 2016, a growth of 18%.
Gross profit on a GAAP basis totaled $45.5 million (48.7% of revenues), compared to $32.5 million (41.0% of revenues) in 2016. The gross profit on a GAAP basis in 2016 includes a $4.9 million effect of the FIT re-organization including the write-off of inventory and other one-time expenses.
Gross profit on a non-GAAP totaled $45.6 million (48.7% of revenues), compared to $37.5 million (47.3% of revenues) in 2016.
Operating loss on a GAAP basis totaled $3.0 million, compared to operating profit of $2.0 million (2.5% of revenues) in 2016. The operating loss in 2017 included a one-time expense of $13 million due to a settlement payment. The operating profit in 2016 included a $4.1 million expense due to the reorganization of the Printar business unit.
Operating profit on a non-GAAP basis totaled $10.4 million (11.1% of revenues), compared to $3.3 million (4.1% of revenues) in 2016.
Net income on a GAAP basis totaled $1.7 million, or $0.05 per diluted share. This compares to net income of $0.9 million, or $0.02 per diluted share, in 2016.
Net income on a non-GAAP basis totaled $9.6 million, or $0.27 per diluted share. This compares to net income of $2.3 million, or $0.06 per diluted share, in 2016.
Conference Call
Camtek will host a conference call today, February 7, 2018, 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: 1 866 860 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) settlement expenses; (ii) changes in valuation allowance on deferred tax assets; (iii) share based compensation expenses, (iv) discontinued operations, and (v) revaluation of liabilities with respect to the acquisition of Printar and reorganization 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.
Camtek Ltd.
Consolidated Balance Sheets
---------------------------
December 31,
------------
2017 *2016
---- -----
U.S. Dollars (In
thousands)
-----------------
Assets
Current assets
Cash and cash equivalents 43,744 19,740
Accounts receivable, net 23,153 22,066
Inventories 21,336 16,647
Due from affiliated
companies 681 -
Other current assets 2,534 2,039
Current assets held for
sale - 25,018
--- ------
Total current assets 91,448 85,510
------ ------
Fixed assets, net 15,503 13,725
------ ------
Long term inventory 1,383 1,461
Deferred tax asset 4,067 **4,073
Other assets, net 153 270
Intangible assets, net 482 519
--- ---
Total long-term assets 6,085 6,323
----- -----
Total assets 113,036 105,558
======= =======
Liabilities and shareholders' equity
Current liabilities
Accounts payable - trade 10,502 10,304
Other current liabilities 17,395 14,722
Due to affiliated
companies - 18
Current liabilities held
for sale - 6,482
--- -----
Total current liabilities 27,897 31,526
Long term liabilities
Liability for employee
severance benefits 838 667
--- ---
Total long-term
liabilities 838 667
--- ---
Total liabilities 28,735 32,193
------ ------
Commitments and contingencies
Shareholders' equity
Ordinary shares NIS 0.01 par value, authorized
100,000,000 shares,
37,924,507 issued as of December 31, 2017, and 37,440,552
as of
December 31, 2016, outstanding 35,832,131 as of December
31, 2017,
and 35,348,176 as of
December 31, 2016 149 148
Additional paid-in capital 78,437 76,463
Retained earnings (losses) 7,613 (1,348)
----- ------
86,199 75,263
Treasury stock, at cost
(2,092,376 as of December
31, 2017 and December 31,
2016) (1,898) (1,898)
------ ------
Total shareholders' equity 84,301 73,365
------ ------
Total liabilities and
shareholders' equity 113,036 105,558
======= =======
* The financial position of the PCB business is presented as discontinued operations.
** Reclassified - Due to the retroactive implementation of ASU No. 2015-17, "Balance Sheet
Classification of Deferred Taxes"
Camtek Ltd.
Consolidated Statements of Operations
-------------------------------------
(In thousands, except share data)
Year ended December 31, Three Months ended December 31,
----------------------- -------------------------------
2017 *2016 2017 *2016
---- ----- ---- -----
U.S. dollars U.S. dollars
------------ ------------
Revenues 93,485 79,228 25,844 21,525
Cost of revenues 47,966 41,807 13,519 11,436
Reorganization - 4,931 - -
--- ----- --- ---
Gross profit 45,519 32,490 12,325 10,089
------ ------ ------ ------
Research and development costs 13,534 12,630 3,467 3,133
Selling, general and administrative expenses 22,022 21,900 5,175 5,852
Implication of re-organization - (4,059) - -
Expenses from settlement 13,000 - - -
------ --- --- ---
48,556 30,471 8,642 8,985
Operating income (loss) (3,037) 2,019 3,683 1,104
------ ----- ----- -----
Financial income (expenses), net (150) (847) 49 (304)
---- ---- --- ----
Income (loss) before income taxes (3,187) 1,172 3,732 800
------ ----- ----- ---
Income taxes (expense) 4,875 (303) (406) (32)
----- ---- ---- ---
Net income from continuing operations 1,688 869 3,326 768
===== === ===== ===
Discontinued operations *
Income from discontinued operations
Income before tax expense 18,302 4,450 - 1,643
Income taxes (expense) (6,028) (585) (465) (64)
------ ---- ---- ---
Income (loss) from discontinued operations 12,274 3,865 (465) 1,579
Net income 13,962 4,734 2,861 2,347
====== ===== ===== =====
Net income (loss) per ordinary share:
Year ended December 31, Three Months ended December 31,
----------------------- -------------------------------
2017 2016 2017 2016
---- ---- ---- ----
U.S. dollars U.S. dollars
------------ ------------
Basic earnings from continuing operation 0.05 0.02 0.09 0.02
==== ==== ==== ====
Basic earnings (losses) from discontinued operation
0.35 0.11 (0.01) 0.05
==== ==== ===== ====
Basic net earnings 0.4 0.13 0.08 0.07
=== ==== ==== ====
Diluted earnings from continuing operation
0.05 0.02 0.09 0.02
==== ==== ==== ====
Diluted earnings (losses) from discontinued operation
0.34 0.11 (0.01) 0.04
==== ==== ===== ====
Diluted net earnings 0.39 0.13 0.08 0.07
==== ==== ==== ====
Weighted average number of
ordinary shares outstanding:
Basic 35,441 35,348 35,644 35,348
====== ====== ====== ======
Diluted 35,964 35,376 36,094 35,396
====== ====== ====== ======
(*) The financial results of the PCB business are presented as discontinued operations.
Reconciliation of GAAP To Non-GAAP results
------------------------------------------
(In thousands, except share data)
Year ended Three Months ended
December 31, December 31,
------------ ------------
2017 2016 2017 2016
---- ---- ---- ----
U.S. dollars U.S. dollars
------------ ------------
Reported net
income (loss) 13,962 4,734 2,861 2,347
attributable to
Camtek Ltd.
on GAAP basis
Settlement
expense, net
of tax (1) 12,025 - - -
Realization of
deferred tax
assets (2) (4,495) - - -
Share-based
compensation 426 363 150 94
Effect of FIT
reorganization
(3) - 872 - -
Acquisition of
Sela and
Printar
related
expenses (4) - 183 - -
Attributable to
discontinued
operations (12,274) (3,865) 465 (1,579)
including
income from
sale of PCB
business (5)
Non-GAAP net
income 9,644 2,287 3,476 862
===== ===== ===== ===
Non-GAAP net
incomeper
share, 0.27 0.06 0.1 0.02
basic and
diluted
Gross margin on
GAAP basis 48.70% 41.00% 47.70% 46.90%
Reported gross
profit on GAAP
basis 45,519 32,490 12,325 10,089
Share-based
compensation 44 31 16 5
Effect of FIT
reorganization
(3) - 4,931 - -
Non-GAAP gross
margin 48.70% 47.30% 47.80% 46.90%
Non-GAAP gross
profit 45,563 37,452 12,341 10,094
====== ====== ====== ======
Reported
operating
income (loss) (3,037) 2,019 3,683 1,104
attributable to
Camtek Ltd. on
GAAP basis
Settlement
expense (1) 13,000 - - -
Share-based
compensation 426 363 150 94
Effect of Fit
reorganization
(3) - 872 - -
Non-GAAP
operating
income 10,389 3,254 3,833 1,198
====== ===== ===== =====
(1) During the year ended December 31, 2017, the Company recorded a provision of $13 million ($12 million net of tax) in conjunction settlement with Rudolph Technologies Inc.
(2) During the year ended December 31, 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 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 of $5.0 million, recorded under operating expenses.
(4) During 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 December 31, 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 2017 full year results. This amount is excluded from the non-GAAP results.
CAMTEK LTD. INTERNATIONAL INVESTOR RELATIONS
Moshe Eisenberg, CFO GK Investor Relations
Tel: +972 4 604 8308 Ehud Helft / Gavriel Frohwein
Mobile: +972 54 900 7100 Tel: (US) 1 646 688 3559
moshee@camtek.com camtek@gkir.com
View original content:http://www.prnewswire.com/news-releases/camtek-announces-fourth-quarter-and-full-year-2017-results-300594965.html
SOURCE Camtek Ltd
