Camtek Announces Record Results for the First Quarter of 2019
MIGDAL HAEMEK, Israel , May 6, 2019 /PRNewswire/ -- Camtek Ltd. (NASDAQ: CAMT) (TASE: CAMT), today announced its financial results for the quarter ended March 31, 2019.
Highlights of the First Quarter 2019
-- Revenues were a record at $34.0 million, up 25% year-over-year;
-- GAAP Gross margin at 50.5% versus 47.7% in Q1 last year; Non-GAAP gross
margin at 50.6% versus 48.5%
-- GAAP operating income was $6.7 million and non-GAAP operating income was
$7.3 million, representing margins of 19.6% and 21.5%, respectively;
-- GAAP net income of $6.0 million or $0.16 per diluted share and non-GAAP
net income of $6.7 million or $0.18 per diluted share, representing
year-over-year growth of 70% and 59%, respectively; and
-- Operating cash flow of $6.3 million with $61 million in net cash at
quarter-end;
Forward Looking Guidance
Second quarter 2019 revenues are expected to be slightly ahead of those of the first quarter.
Management Comment
Rafi Amit Camtek's CEO commented, "We are very pleased with our results, especially given the background of the macro-environment in the semiconductor market. We succeeded in maintaining our growth in the quarter, up 25% year-over-year, and even more significantly, we improved our operating income by over 70% year-over-year."
Continued Mr. Amit, "Our momentum remains positive as witnessed by the orders we received in the past few weeks for various applications. Looking ahead, we expect to maintain and even slightly increase our current revenue levels going into the second quarter."
First Quarter 2019 Financial Results
Revenues for the first quarter of 2019 were $34.0 million. This compares to first quarter 2018 revenues of $27.3 million, a growth of 25%.
Gross profit on a GAAP basis in the quarter totaled $17.2 million (50.5% of revenues), up 32% compared to a gross profit of $13.0 million (47.7% of revenues) in the first quarter of 2018. Gross profit on a non-GAAP basis in the quarter totaled $17.2 million (50.6% of revenues), up 30% compared to a gross profit of $13.2 million (48.5% of revenues) in the first quarter of 2018. The improvement in gross margin was mainly a result of the product and sales mix delivered in the quarter.
Operating profit on a GAAP basis in the quarter totaled $6.7 million (19.6% of revenues), up 87% compared to an operating income of $3.6 million (13.0% of revenues) in the first quarter of 2018. Operating profit on a non-GAAP basis in the quarter totaled $7.3 million (21.5% of revenues), up 73% compared to $4.2 million (15.4% of revenues) in the first quarter of 2018. The improvement is a result of the higher gross margin in the quarter,
Net income on a GAAP basis in the quarter totaled $6.0 million, or $0.16 per diluted share, up 71% compared to net income of $3.5 million, or $0.10 per diluted share, in the first quarter of 2018. Net income on a non-GAAP basis in the quarter totaled $6.7 million, or $0.18 per diluted share, up 59% compared to a non-GAAP net income of $4.2 million, or $0.12 per diluted share, in the first quarter of 2018.
Cash and cash equivalents, as of March 31, 2019, were $61.0 million compared to $54.9 million as of December 31, 2018. During the quarter the Company generated a positive operating cash flow of $6.3 million.
Conference Call
Camtek will host a conference call today, May 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: 1 888 668 9141 at 10:00 am Eastern Time
Israel: 03 918 0609 at 5:00 pm 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.
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 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; and (ii) 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.
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
Camtek Ltd.
Consolidated Balance Sheets
(In thousands)
March 31, December 31,
2019 2018
U.S. Dollars (In
thousands)
Assets
---
Current assets
Cash and cash equivalents 61,025 54,935
Trade accounts receivable, net 25,476 31,644
Inventories 32,401 30,109
Other current assets 3,080 2,613
Total current assets 121,982 119,301
Fixed assets, net *18,329 17,117
Long term inventory 2,153 2,056
Deferred tax asset 1,816 2,366
Other assets, net 231 231
Intangible assets, net 487 476
4,687 5,129
Total assets 144,998 141,547
Liabilities and shareholders' equity
---
Current liabilities
Trade accounts payable 15,448 15,541
Other current liabilities *18,968 23,179
Total current liabilities 34,416 38,720
Long term liabilities
Other long term liabilities *2,314 1,420
2,314 1,420
Total liabilities 36,730 40,140
Commitments and contingencies
Shareholders' equity
Ordinary shares NIS 0.01 par value,
100,000,000 shares authorized at
March 31 2019 and at December 31,
2018;
38,608,128 issued shares at March
31, 2019 and 38,535,445 at
December 31, 2018;
36,515,752 shares outstanding at
March 31, 2019 and 36,443,069 at
December 31, 2018
151 151
Additional paid-in capital 82,707 81,873
Retained earnings 27,308 21,281
110,166 103,305
Treasury stock, at cost (2,092,376
as of March 31, 2019 and December
31, 2018)
(1,898) (1,898)
Total shareholders' equity 108,268 101,407
Total liabilities and shareholders'
equity 144,998 141,547
*Includes adjustment in respect of implementation of ASC 842 - Leases
Camtek Ltd.
Consolidated Statements of Operations
(in thousands, except share data)
Three months
ended Year ended
March 31, December 31,
2019 2018 2018
U.S. dollars
Revenues 34,002 27,274 123,174
Cost of
revenues 16,846 14,277 62,378
Gross profit 17,156 12,997 60,796
Research and
development
costs 3,924 3,549 14,581
Selling,
general and
administrative
expenses 6,575 5,889 26,182
Total
operating
expenses 10,499 9,438 40,763
Operating
income 6,657 3,559 20,033
Financial
income, net 17 290 728
Income
before
incomes
taxes 6,674 3,849 20,761
Income tax
expense (647) (315) (2,030)
Net income 6,027 3,534 18,731
Three months
ended Year ended
March 31, December 31,
2019 2018 2018
---
U.S. dollars
Basic net earnings 0.17 0.1 0.52
===
Diluted net earnings 0.16 0.1 0.51
===
Weighted average number of
ordinary shares outstanding:
Basic 36,476 35,917 36,190
===
Diluted 37,267 36,388 36,747
===
Camtek Ltd.
Reconciliation of GAAP To Non-GAAP results
(In thousands, except share data)
Three months ended Year ended December 31,
March 31,
---
2019 2018 2018
U.S. dollars U.S. dollars
Reported
net
income
attributable
to
Camtek
Ltd.
on
GAAP
basis
6,027 3,534 18,731
Share-
based
compensation 645 146 1,682
Effect
of
FIT
reorganization
(1) 506 506
Non-
GAAP
net
income 6,672 4,186 20,919
Non
-GAAP
net
income
per
share,
basic
and
diluted
0.18 0.12 0.57
Gross
margin
on
GAAP
basis 50.50% 47.70% 49.40%
Reported
gross
profit
on
GAAP
basis 17,156 12,997 60,796
Share-
based
compensation 61 16 167
Effect
of
FIT
reorganization
(1) 205 205
Non-
GAAP
gross
margin 50.60% 48.50% 49.70%
Non-
GAAP
gross
profit 17,217 13,218 61,168
Reported
operating
income
attributable
to
Camtek
Ltd.
on
GAAP
basis 6,657 3,559 20,033
Share-
based
compensation 645 146 1,682
Effect
of
FIT
reorganization
(1) 506 506
Non-
GAAP
operating
income 7,302 4,211 22,221
(1) 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.
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SOURCE Camtek Ltd
