Camtek Announces Results For The Third Quarter Of 2020
MIGDAL HAEMEK, Israel, Oct. 27, 2020 /PRNewswire/ -- Camtek Ltd. (NASDAQ: CAMT) (TASE: CAMT), today announced its financial results for the quarter ended September 30, 2020.
Highlights of the Third Quarter 2020
-- Revenues were a quarterly record at $40.1 million, up 23%
year-over-year;
-- GAAP gross margin at 48.5%; Non-GAAP gross margin at 48.8%;
-- GAAP operating income was $6.3 million and non-GAAP operating income was
$7.6 million, representing margins of 15.8% and 19.0%, respectively;
-- GAAP net income of $6.0 million, or $0.15 per diluted share, non-GAAP
net income of $7.3 million, or $0.18 per diluted share; and
-- Operating cash flow of $5.0 million, with $106.0 million in net cash and
short-term deposits at quarter-end.
Forward-Looking Expectations
Based on orders in hand, the Company expects continued revenue growth in the fourth quarter, with revenues to be between $42-44 million, representing 30% growth year-over-year at the mid-point. Based upon orders received and current pipeline, the Company believes that revenue in the first half of 2021 will be similar to the revenue level in the second half of 2020, representing approximately 25% growth over the first half of 2020
Management Comment
Rafi Amit, Camtek's CEO commented, "Camtek's third quarter results reflect continued momentum for our products, from existing and new customers.
We are benefitting from increased demand for our products, particularly in the advanced packaging, CMOS Image Sensor and RF devices. In addition, we are expanding our presence in the Front-End, mainly for Macro Inspection applications. This significantly increases our total available market."
Continued Mr. Amit, "We continue to collaborate with the leading IDM's to develop metrology and inspection solutions for the next generations of Advanced Packaging. We expect these applications to become meaningful to our business. The market drivers, the performance of our systems, our increasing market presence and our customers satisfaction give us a sense of optimism towards 2021."
Third Quarter 2020 Financial Results
Revenues for the third quarter of 2020 were $40.1 million. This compares to third quarter 2019 revenues of $32.5 million, a growth of 23%.
Gross profit on a GAAP basis in the quarter totaled $19.4 million (48.5% of revenues), up 28% compared to a gross profit of $15.2 million (46.9% of revenues) in the third quarter of 2019. Gross profit on a non-GAAP basis in the quarter totaled $19.5 million (48.8% of revenues), up 28% compared to a gross profit of $15.3 million (47.1% of revenues) in the third quarter of 2019.
Operating profit on a GAAP basis in the quarter totaled $6.3 million (15.8% of revenues), compared to an operating profit of $4.4 million (13.5% of revenues) in the third quarter of 2019. Operating profit on a non-GAAP basis in the quarter totaled $7.6 million (19.0% of revenues), compared to $5.3 million (16.2% of revenues) in the third quarter of 2019.
Net income on a GAAP basis in the quarter totaled $6.0 million, or $0.15 per diluted share, compared to net income of $4.2 million, or $0.11 per diluted share, in the third quarter of 2019. Net income on a non-GAAP basis in the quarter totaled $7.3 million, or $0.18 per diluted share, compared to a non-GAAP net income of $5.0 million, or $0.13 per diluted share, in the third quarter of 2019.
Cash and cash equivalents and short-term deposits, as of September 30, 2020, were $106.0 million compared to $89.5 million as of December 31, 2019. During the quarter, the Company generated a positive operating cash flow of $5.0 million.
Conference Call
Camtek will host a conference call today, October 27, 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: 1 866 229 7198 at 9:00 am Eastern Time
Israel 03 918 0609 at 3:00 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 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 coming few quarters, 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 Sheets
(In thousands)
September December
30, 31,
---
2020 2019
---
U.S. Dollars (In
thousands)
Assets
---
Current assets
Cash and cash equivalents 26,042 38,047
Short-term deposits 80,000 51,500
Trade accounts receivable, net 33,747 31,443
Inventories 34,436 23,803
Other current assets 3,032 2,909
---
Total current assets 177,257 147,702
---
Fixed assets, net 18,886 18,526
---
Long term inventory 4,090 2,791
Deferred tax asset, net 8 746
Other assets, net 80 113
Intangible assets, net 619 491
---
4,797 4,141
---
Total assets 200,940 170,369
===
Liabilities and shareholders' equity
---
Current liabilities
Trade accounts payable 20,468 11,334
Other current liabilities 24,283 20,272
---
Total current liabilities 44,751 31,606
Long term liabilities
Other long term liabilities 2,191 2,461
---
2,191 2,461
---
Total liabilities 46,942 34,067
---
Commitments and contingencies
Shareholders' equity
Ordinary shares NIS 0.01 par value, 100,000,000
shares authorized at September 30, 2020 and at
December 31, 2019;
41,303,757 issued shares at September 30, 2019
and 40,742,355 at December 31, 2019;
39,211,381 shares outstanding at September 30,
2020 and 38,649,979 at December 31, 2019
159 157
Additional paid-in capital 104,909 101,327
Retained earnings 50,828 36,716
---
155,896 138,200
Treasury stock, at cost (2,092,376 as of
September 30, 2020 and December 31, 2019)
(1,898) (1,898)
---
Total shareholders' equity 153,998 136,302
---
Total liabilities and shareholders'
equity 200,940 170,369
===
Consolidated Statements of Operations
(in thousands, except share data)
Nine Months ended Three Months Year ended
September 30, ended September December
30, 31,
---
2020 2019 2020 2019 2019
---
U.S. dollars U.S. dollars U.S.
dollars
---
134,019
Revenues 107,240 100,818 40,061 32,470
Cost of revenues 57,315 51,875 20,636 17,252 69,235
---
Gross profit 49,925 48,943 19,425 15,218 64,784
---
Research and development costs 13,952 11,891 5,068 4,164 16,331
Selling, general and administrative expenses 21,374 19,668 8,036 6,681 26,481
---
35,326 31,559 13,104 10,845 42,812
Operating income 14,599 17,384 6,321 4,373 21,972
---
Financial income, net 958 340 307 188 801
---
Income from continuing operations
before income taxes 15,557 17,724 6,628 4,561 22,773
---
Income tax expense (1,445) (1,508) (604) (398) (1,950)
---
Net income from continuing operations 14,112 16,216 6,024 4,163 20,823
===
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 14,112 17,379 6,024 4,163 21,986
===
*Relates to the earn-out payment received from the sale of the PCB business.
Net income per ordinary share:
Nine months Three months
ended ended September
30, Year ended December 31,
September 30.
2020 2019 2020 2019 2019
U.S. dollars U.S. dollars U.S. dollars
Basic earnings from continuing operation
0.36 0.43 0.15 0.11 0.55
Basic earnings from discontinued operation
0.03 0.03
Basic net earnings 0.36 0.47 0.15 0.11 0.58
Diluted earnings from continuing operation
0.35 0.43 0.15 0.11 0.54
Diluted earnings from discontinued operation
0.03 0.03
Diluted net earnings 0.35 0.46 0.15 0.11 0.57
Weighted average number of
ordinary shares outstanding
(in thousands):
Basic 38,957 37,286 39,176 36,300 37,626
Diluted 39,878 38,064 40,066 36,941 37,432
Reconciliation of GAAP To Non-GAAP results
(In thousands, except share data)
Nine Months ended Three Months Year ended
September 30, ended December 31,
September 30,
---
2020 2019 2020 2019 2019
---
U.S. dollars U.S. dollars U.S. dollars
---
Reported net income attributable to Camtek Ltd. on GAAP basis 14,112 17,379 6,024 4,163 21,986
Share-based compensation 3,053 2,068 1,285 818 2,892
Chroma transaction expenses (1) 136 63 136
Attributable to discontinued operations (1,163) (1,163)
Non-GAAP net income 17,165 18,420 7,309 5,044 23,851
===
Non-GAAP net income per diluted share 0.43 0.48 0.18 0.13 0.62
Gross margin on GAAP basis from continuing operations
46.6% 48.5% 48.5% 46.9% 48.3%
Reported gross profit on GAAP basis 49,925 48,943 19,425 15,218 64,784
Share-based compensation 308 207 120 85 292
Non- GAAP gross margin 50,233 49,150 19,545 15,303 65,076
Non-GAAP gross profit 46.8% 48.8% 48.8% 47.1% 48.6%
===
Reported operating income attributable to Camtek Ltd. on GAAP basis from continuing operations
14,599 17,384 6,321 4,373 21,972
Share-based compensation 3,053 2,068 1,285 818 2,892
Chroma transaction expenses (1) 136 63 136
Non-GAAP operating income 17,652 19,588 7,606 5,254 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.
Moshe Eisenberg, CFO
Tel: +972-4-604-8308
Mobile: +972-54-900-7100
moshee@camtek.com
INTERNATIONAL INVESTOR RELATIONSGK Investor Relations
Ehud Helft
Tel: (US) +1-646-688-3559
camtek@gkir.com
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SOURCE Camtek Ltd.
