Camtek Announces Results for the Second Quarter of 2019
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.
.
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
===
Liabilities and shareholders'
equity
---
Current liabilities
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
Shareholders' equity
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;
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
*Includes adjustment in respect of implementation of ASC 842 - Leases
Camtek Ltd.
Consolidated Statements of Operations
---
(in thousands, except share data)
Six Months ended Three Months ended Year ended
June 30, June 30, 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
---
Research and
development costs 7,727 6,955 3,803 3,406 14,581
Selling, general and
administrative
expenses 12,987 6,412 6,775 26,182
12,664
---
20,714 19,619 10,215 10,181 40,763
Operating income 13,011 8,277 6,354 4,718 20,033
---
Financial income, net 152 436 135 146 728
---
Income from continuing
operations
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
===
Discontinued operations *
Income from discontinued
operations
Income before tax
expense 1,257 1,257
Income tax expense 94 94
Net income from
discontinued
operations 1,163 1,163 -
Net income 13,216 7,865 7,189 4,331 18,731
===
*Relates to the earn-out payment received from the sale of the PCB business.
Net income (loss) per ordinary share:
Six months ended Three months ended Year ended
June 30 June 30, December 31,
---
2019 2018 2019 2018 2018
---
U.S. dollars U.S. dollars U.S. dollars
---
Basic earnings from
continuing 0.33 0.22 0.16 0.12 0.52
operation
===
Basic earnings from
discontinued 0.03 0.03 -
operation
Basic net earnings 0.36 0.22 0.19 0.12 0.52
===
Diluted earnings from
continuing 0.32 0.22 0.16 0.12 0.51
operation
===
Diluted earnings from
discontinued 0.03 0.03 -
operation
Diluted net earnings 0.35 0.22 0.19 0.12 0.51
===
Weighted average number of
ordinary shares outstanding:
Basic 36,644 36,050 36,816 36,090 36,190
===
Diluted 37,476 36,512 37,734 36,632 36,747
===
Camtek Ltd.
Reconciliation of GAAP To Non-GAAP results
---
(In thousands, except share data)
Six Months ended Three Months ended Year ended
June 30, June 30, December 31,
---
2019 2018 2019 2018 2018
---
U.S. dollars U.S. dollars U.S. dollars
---
Reported net income (loss)
attributable 13,216 7,865 7,189 4,331 18,731
to Camtek Ltd. on GAAP basis
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 49.4% 48.4% 48.3% 48.9% 49.4%
continuing operations
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 13,011 8,277 6,354 4,718 20,033
to Camtek Ltd. on GAAP basis from
continuing operations
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. 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
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SOURCE Camtek Ltd.
