Camtek Announces Results for the Second Quarter of 2020
MIGDAL HAEMEK, Israel , Aug. 5, 2020 /PRNewswire/ -- Camtek Ltd. (NASDAQ: CAMT) (TASE: CAMT), today announced its financial results for the quarter ended June 30, 2020.
Highlights of the Second Quarter 2020
-- Revenues were a quarterly record at $37.0 million, up 8% year-over-year;
-- GAAP gross margin at 45.8%; Non-GAAP gross margin at 46.1%;
-- GAAP operating income was $5.4 million and non-GAAP operating income was
$6.4 million, representing margins of 14.6% and 17.2%, respectively;
-- GAAP net income of $5.3 million, or $0.13 per diluted share, non-GAAP
net income of $6.3 million, or $0.16 per diluted share; and
-- Strong operating cash flow of $11.1 million with $101.5 million in net
cash and short-term deposits at quarter-end.
Forward-Looking Expectations
Based on orders on hand, management expects continued revenue growth and improved profitability in the third quarter. Management expects revenues for the third quarter to be between $38-39 million.
Management Comment
Rafi Amit Camtek's CEO commented, "Camtek's second quarter results reflect continued demand for our products, especially in Asia.
"We have increased our market share in 2D inspection mainly as a result of the significant improvement in our system performance and competitiveness in all 2D applications. In addition, we are benefitting from our strategy of having in place local professional teams that can independently install and support machines in all our territories. This has enabled us to continue growing our business even during the COVID-19 pandemic."
Continued Mr. Amit, "The revenues in the second quarter were at a record level, and the ongoing demands from our customers for various applications point to a strong third quarter, with encouraging backlog for the fourth quarter. However, it is important to stress that we are still seeing the Coronavirus pandemic effects, which increase risks and uncertainties."
Second Quarter 2020 Financial Results
Revenues for the second quarter of 2020 were $37.0 million. This compares to second quarter 2019 revenues of $34.3 million, a growth of 8%.
Gross profit on a GAAP basis in the quarter totaled $16.9 million (45.8% of revenues), up 2% compared to a gross profit of $16.6 million (48.2% of revenues) in the second quarter of 2019. Gross profit on a non-GAAP basis in the quarter totaled $17.0 million (46.1% of revenues), up 3% compared to a gross profit of $16.6 million (48.4% of revenues) in the second quarter of 2019.
Operating profit on a GAAP basis in the quarter totaled $5.4 million (14.6% of revenues), compared to an operating profit of $6.4 million (18.5% of revenues) in the second quarter of 2019. Operating profit on a non-GAAP basis in the quarter totaled $6.4 million (17.2% of revenues), compared to $7.0 million (20.5% of revenues) in the second quarter of 2019.
Net income on a GAAP basis in the quarter totaled $5.3 million, or $0.13 per diluted share, compared to net income of $7.2 million, or $0.19 per diluted share, in the second quarter of 2019. Net income on a non-GAAP basis in the quarter totaled $6.3 million, or $0.16 per diluted share, compared to a non-GAAP net income of $6.7 million, or $0.18 per diluted share, in the second quarter of 2019.
Cash and cash equivalents and short-term deposits, as of June 30, 2020, were $101.5 million compared to $89.5 million as of December 31, 2019. During the quarter, the Company generated a positive operating cash flow of $11.1 million, of which $7.6 million were advanced payments from customers.
Conference Call
Camtek will host a conference call today, August 5, 2020, 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: 1 888 407 2553 at 9:00 am Eastern Time
Israel: 03 918 0610 at 4:00 pm Israel Time
International: +972 3 918 0610
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 contains projections or other forward-looking statements regarding future events or the future performance of the Company. These statements are only predictions that represent our views only as of the date they are made and may change as time passes. We do not assume any obligation to update that information, except as required by law. These forward-looking statements are subject to risks and uncertainties that may cause actual events or results to differ materially from those projected, including as a result of the effects of general economic conditions; the effect of the COVID-19 crisis on the global markets and on the markets in which we operate, including the risk of a continued disruption to our and our customers', providers', business partners and contractors' business as a result of the outbreak and effects of the COVID-19 pandemic; the risks relating to the concentration of a significant portion of Camtek's expected business in certain countries, particularly China, from which we expect to generate significant portion of our revenues for the second half of 2020, but also Taiwan and Korea, including the risks of deviations from our expectations regarding timing and size of orders from customers in these countries; 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.
This press release provides financial measures that exclude: (i) share based compensation expenses; (ii) certain Chroma transaction expenses; and (iii) discontinued operations, 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
Sheet
---
(In thousands)
June 30, December 31,
---
2020 2019
---
U.S. Dollars (In
thousands)
Assets
---
Current assets
Cash and cash
equivalents 32,469 38,047
Short-term deposits 69,000 51,500
Trade accounts
receivable, net 39,528 31,443
Inventories 29,537 23,803
Other current assets 3,523 2,909
---
Total current assets 174,057 147,702
---
Fixed assets, net 18,800 18,526
---
Long term inventory 3,292 2,791
Deferred tax asset 520 746
Other assets, net 80 113
Intangible assets,
net 574 491
---
4,466 4,141
---
Total assets 197,323 170,369
===
Liabilities and shareholders'
equity
---
Current liabilities
Trade accounts
payable 20,561 11,334
Other current
liabilities 28,170 20,272
---
Total current
liabilities 48,731 31,606
Long term liabilities
Other long term
liabilities 2,100 2,461
---
2,100 2,461
---
Total liabilities 50,831 34,067
---
Commitments and contingencies
Shareholders' equity
Ordinary shares NIS 0.01 par
value, 100,000,000 shares
authorized at
June 30, 2020 and at December
31, 2019;
41,124,714 issued shares at
June 30, 2019 and 40,742,355
at
December 31, 2019;
39,032,338 shares
outstanding at June
30, 2020 and
38,649,979 at 158 157
December 31, 2019
Additional paid-in
capital 103,428 101,327
Retained earnings 44,804 36,716
---
148,390 138,200
Treasury stock, at
cost (2,092,376 as
of June 30, 2020
and December (1,898) (1,898)
31, 2019)
---
Total shareholders'
equity 146,492 136,302
---
Total liabilities
and shareholders'
equity 197,323 170,369
---
Camtek Ltd.
Consolidated Statements of Operations
---
(in thousands, except share data)
Six Months ended Three Months Year ended
June 30,
ended June 30, December 31,
2020 2019 2020 2019 2019
U.S. dollars U.S. dollars U.S. dollars
Revenues 67,179 68,348 37,000 34,346 134,019
Cost of revenues 36,679 34,623 20,057 17,777 69,235
Gross profit 30,500 33,725 16,943 16,569 64,784
Research and
development costs 8,884 7,727 4,754 3,803 16,331
Selling, general and
administrative
expenses 13,338 12,987 6,779 6,412 26,481
22,222 20,714 11,533 10,215 42,812
Operating income 8,278 13,011 5,410 6,354 21,972
Financial income, net 651 152 276 135 801
Income from continuing
operations
before income taxes 8,929 13,163 5,686 6,489 22,773
Income tax expense (841) (1,110) (378) (463) (1,950)
Net income from
continuing
operations 8,088 12,053 5,308 6,026 20,823
Discontinued operations *
Income from discontinued
operations
Income before tax
expense 1,257 1,257 1,257
Income tax expense 94 94 94
Net income from
discontinued
operations 1,163 1,163 1,163
Net income 8,088 13,216 5,308 7,189 21,986
*Relates to the earn-out payment received from the sale of the PCB business.
Net income per ordinary share:
Six months ended Three months Year ended
June 30, ended June 30, December 31,
---
2020 2019 2020 2019 2019
Note U.S. dollars U.S. dollars U.S. dollars
Basic earnings from 0.21 0.33 0.14 0.16 0.55
continuing operation
Basic earnings from 0.03 0.03 0.03
discontinued operation
Basic net earnings 0.21 0.36 0.14 0.19 0.58
Diluted earnings from 0.20 0.32 0.13 0.16 0.54
continuing operation
Diluted earnings from discontinued
operations 0.03 0.03 0.03
Diluted net earnings 0.20 0.35 0.13 0.19 0.57
Weighted average number of
ordinary shares outstanding
(in thousands):
Basic 38,849 36,644 39,033 36,816 37,626
Diluted 39,779 37,476 39,940 37,734 37,432
Camtek Ltd.
Reconciliation of GAAP To Non-GAAP results
---
(In thousands, except share data)
Six Months ended,
June 30th
Year ended
Six Months ended, December 31,
June 30th
---
2020 2019 2020 2019 2019
---
U.S. Dollars U.S. Dollars
U.S. Dollars
---
Reported net income attributable to 8,088 13,216 5,308 7,189 21,986
Camtek Ltd. on GAAP basis
Share-based compensation 1,768 1,250 951 605 2,892
Chroma transaction expenses (1) 73 73 136
Attributable to discontinued operations (1,163) (1,163) (1,163)
Non-GAAP net income 9,856 13,376 6,259 6,704 23,851
Non-GAAP net income per diluted share 0.25 0.37 0.16 0.18 0.62
Gross margin on GAAP basis from continuing operations
45.4% 49.4% 45.8% 48.2% 48.3%
Reported gross profit on GAAP basis 30,500 33,725 16,943 16,569 64,784
Share-based compensation 189 122 103 61 292
Non- GAAP gross margin 30,689 33,847 17,046 16,630 65,076
Non-GAAP gross profit 45.7% 49.5% 46.1% 48.4% 48.6%
Reported operating income attributable
to Camtek Ltd. on GAAP basis from
continuing operations
8,278 13,011 5,410 6,354 21,972
Share-based compensation 1,768 1,250 951 605 2,892
Chroma transaction expenses (1) 73 73 136
Non-GAAP operating income 10,046 14,334 6,361 7,032 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
Tel: (US) 1 646 688 3559
Mobile: +972 54 900 7100
camtek@gkir.com
moshee@camtek.com
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SOURCE Camtek Ltd
