Camtek Announces First Quarter 2020 Results
MIGDAL HAEMEK, Israel, May 11, 2020 /PRNewswire/ -- Camtek Ltd. (NASDAQ: CAMT) (TASE: CAMT), today announced its financial results for the first quarter 2020.
Highlights of the First Quarter of 2020
-- Revenues of $30.2 million; - Shipments to customers amounted to
approximately $33 million, however, about $3 million of this was not
recognized due to the Coronavirus related delays in installations and
in accordance with our revenue recognition policy;
-- GAAP operating income of $2.9 million; non-GAAP operating income of $3.7
million;
-- GAAP net income of $2.8 million and non-GAAP net income of $3.6 million;
and
-- Operating cash flow of $1.3 million.
Forward-Looking Expectations
Management expects revenues for the second quarter to be between $36-38 million. Based on orders on hand, management further expects continued revenue growth and improved profitability in the third quarter.
Management Comment
Rafi Amit, Camtek's CEO, commented, "Camtek is the leader in the 3D metrology arena. Our strategy is to become a leading supplier in the 2D inspection segment as well. In the first half of 2020, we have expanded and strengthened our position in this segment. Some of our customers ordered multiple 2D Inspection machines with basic configuration which affected our average selling price (ASP). We expect these customers to purchase in the future machines for more complex applications with higher ASPs and margins."
Continued Mr. Amit, "We are seeing strong business momentum. We entered the second quarter with record backlog resulting in good visibility and we expect a significant increase in revenue to between $36-38 million. In the third quarter, we see increased orders for machines with more advanced capabilities and we expect to show an improvement in profitability. It is important to stress that we are still within the Coronavirus pandemic and it is difficult to anticipate its full magnitude and impact on our business in the coming months."
First Quarter 2020 Financial Results
Revenues for the first quarter of 2020 were $30.2 million, a decrease of 11% compared with the first quarter of 2019.
Gross profit on a GAAP basis in the quarter totaled $13.6 million (44.9% of revenues), compared to a gross profit of $17.2 million (50.5% of revenues) in the first quarter of 2019. Gross profit on a non-GAAP basis in the quarter totaled $13.6 million (45.2% of revenues), compared to $17.2 million (50.6% of revenues) in the first quarter of 2019. The decrease in the gross margin in the quarter was due to lower revenue and a less favorable product mix in the quarter.
Operating profit on a GAAP basis in the quarter totaled $2.9 million (9.5% of revenues), compared to an operating profit of $6.7 million (19.6% of revenues) in the first quarter of 2019. Operating profit on a non-GAAP basis in the quarter totaled $3.7 million (12.2% of revenues), compared to $7.3 million (21.5% of revenues) in the first quarter of 2019.
Net income on a GAAP basis in the quarter totaled $2.8 million, or $0.07 per diluted share, compared to net income of $6.0 million, or $0.16 per diluted share, in the first quarter of 2019. Net income on a non-GAAP basis in the quarter totaled $3.6 million, or $0.09 per diluted share, compared to non-GAAP net income of $6.7 million, or $0.18 per diluted share, in the first quarter of 2019.
Cash and cash equivalents and short-term deposits, as of March 31, 2020 were $90.6 million compared to $89.5 million as of December 31, 2019. During the quarter, Camtek generated $1.3 million in operating cash flow.
Conference Call
Camtek will host a conference call today, May 11, 2020, at 9:00am 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 9:00am Eastern Time
Israel: 03 918 0609 at 4:00pm 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.
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. Camtek does not assume any obligation to update that information. It is important to note that there is no way to predict how the coronavirus situation will evolve further and impact Camtek's business. 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 new products and their adoption by the market, increased competition in the industry, the length and severity of the recent COVID-19 (coronavirus) outbreak, including its impacts across our businesses on demand, operations, and our global supply chains, intellectual property litigation, and 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, (ii) discontinued operations, and (iii) Chroma transaction 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
Consolidated Balance Sheets
---
(In thousands)
March 31, December 31,
---
2020 2019
---
U.S. Dollars
Assets
---
Current assets
Cash and cash equivalents 49,086 38,047
Short-term deposits 41,500 51,500
Trade accounts receivable, net 37,141 31,443
Inventories 26,476 23,803
Other current assets 3,083 2,909
---
Total current assets 157,286 147,702
---
Fixed assets, net 18,548 18,526
---
Long term inventory 2,881 2,791
Deferred tax asset 745 746
Other assets, net 113 113
Intangible assets, net 474 491
---
4,213 4,141
---
Total assets 180,047 170,369
===
Liabilities and shareholders' equity
---
Current liabilities
Trade accounts payable 16,253 11,334
Other current liabilities 21,650 20,272
---
Total current liabilities 37,903 31,606
Long term liabilities
Other long term liabilities 2,187 2,461
---
2,187 2,461
---
Total liabilities 40,090 34,067
---
Commitments and contingencies
Shareholders' equity
Ordinary shares NIS 0.01 par value,
100,000,000 shares authorized at
March 31, 2020 and at December 31, 2019;
40,765,912 issued shares at March 31, 2020
and 40,742,355 at
December 31, 2019;
38,673,536 shares outstanding at March 31,
2020 and 38,649,979 at
December 31, 2019
157 157
Additional paid-in capital 102,202 101,327
Retained earnings 39,496 36,716
---
141,855 138,200
Treasury stock, at cost (2,092,376 as of
March 31, 2020 and
December 31, 2019)
(1,898) (1,898)
---
Total shareholders' equity 139,957 136,302
---
Total liabilities and shareholders'
equity 180,047 170,369
===
Camtek Ltd.
Consolidated Statements of Operations
---
(in thousands, except share data)
Three months
ended Year ended
March 31, December 31,
---
2020 2019 2019
---
U.S. dollars U.S. dollars
---
Revenues 30,179 34,002 134,019
Cost of revenues 16,622 16,846 69,235
---
Gross profit 13,557 17,156 64,784
---
Research and development
costs 4,130 3,924 16,331
Selling, general and
administrative expenses 6,559 6,575 26,481
---
Total operating expenses 10,689 10,499 42,812
Operating income 2,868 6,657 21,972
---
Financial income, net 375 17 801
---
Income from continuing
operations before 3,243 6,674 22,773
incomes taxes
---
Income tax expense (463) (647) (1,950)
---
Net income from continuing
operations 2,780 6,027 20,823
===
Income from discontinued operations
Income before income tax
expense 1,257
Income tax expense (94)
Net income from
discontinued operations 1,163
Net income 2,780 6,027 21,986
===
Three months
ended Year ended
March 31, December 31,
---
2020 2019 2019
---
U.S. dollars U.S. dollars
---
Basic earnings from
continuing operations 0.07 0.17 0.55
===
Basic earnings from
discontinued operations 0.03
Basic net earnings 0.07 0.17 0.58
===
Diluted earnings from
continuing operations 0.07 0.16 0.54
===
Diluted earnings from
discontinued operations 0.03
Diluted net earnings 0.07 0.16 0.57
===
Weighted average number of
ordinary shares outstanding:
Basic 38,665 36,476 37,626
===
Diluted 39,628 37,267 38,432
===
Camtek Ltd.
Reconciliation of GAAP To Non-GAAP results
---
(In thousands, except share data)
Three months ended
Year ended
March 31,
December 31,
2020 2019 2019
U.S. dollars
U.S. dollars
Reported net income attributable
to Camtek Ltd. on GAAP basis
2,780 6,027 21,986
Share-based compensation 817 645 2,892
Chroma transaction expenses (1) - 136
Attributable to discontinued operations - (1,163)
Non-GAAP net income 3,597 6,672 23,851
===
Non -GAAP net income per share,
basic and diluted
0.09 0.18 0.62
Gross margin on GAAP basis 44.9% 50.5% 48.3%
Reported gross profit on GAAP basis 13,557 17,156 64,784
Share-based compensation 86 61 292
Non- GAAP gross margin 45.2% 50.6% 48.6%
Non-GAAP gross profit 13,643 17,217 65,076
===
Reported operating income
attributable to Camtek Ltd. on GAAP basis 2,868 6,657 21,972
Share-based compensation 817 645 2,892
Chroma transaction expenses (1) 136
Non-GAAP operating income 3,685 7,302 25,000
===
(1) In the second and third quarters of 2019, certain transaction expenses were incurred in relation to the
technological cooperation agreement with Chroma. These were recorded under operating expenses.
CAMTEK LTD. INTERNATIONAL INVESTOR RELATIONS
Moshe Eisenberg, CFO
GK Investor Relations
Tel: +972 4 604 8308
Ehud Helft
Mobile: +972 54 900 7100
Tel: (US) 1 646 688 3559
moshee@camtek.com
camtek@gkir.com
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SOURCE Camtek Ltd
