Camtek Announces Record Results For The Fourth Quarter And Full Year Of 2020
MIGDAL HAEMEK, Israel, Feb. 9, 2021 /PRNewswire/ -- Camtek Ltd. (NASDAQ: CAMT) (TASE: CAMT), today announced its financial results for the quarter and year ended December 31, 2020.
Highlights of the Fourth Quarter of 2020
-- Revenues of $48.6 million; a 46% increase year-over-year;
-- GAAP operating income of $8.0 million; non-GAAP operating income of $9.2
million, representing an operating margin of 16.5% and 18.9%
respectively;
-- GAAP net income of $7.7 million and non-GAAP net income of $8.8 million;
and
-- Strong operating cash flow of $8.3 million.
Highlights of the Full Year 2020
-- Revenues of $155.9 million; a 16% increase year-over-year;
-- GAAP operating income of $22.6 million; Non-GAAP operating income of
$26.8 million; representing operating margins of 14.5% and 17.2%
respectively;
-- GAAP net income of $21.8 million; Non-GAAP net income of $26.0 million;
and
-- Operating cash flow of $25.8 million in 2020, which, along with the
successful public offering in November, led to year-end net cash and
short-term deposits balance of $177.8 million.
Forward-Looking Expectations
Management expects continued revenue growth in the first quarter of 2021, with revenues of between $54-56 million. Just in the last two weeks the Company has received multiple systems orders from several customers totaling $25 million. The orders received so far, together with the sales pipeline, point to a strong revenue forecast for the first half of 2021. Management is anticipating revenues of over $110 million in the first half of 2021, implying at least 65% growth over the first half of 2020.
Management Comment
Rafi Amit, Camtek's CEO commented, "A record fourth quarter concluded an exceptional year for Camtek. While we started 2020 with a lot of concerns due to COVID-19, we ended the year with unprecedented business momentum. We have leveraged our flexible operational infrastructure and increased our support team in the field in order to successfully meet this growth.
"In 2020, we extended our market presence by penetrating new customers as well as expanding our presence at existing customers. From a financial perspective, in the second half of 2020, we saw improved margins and we see this trend continuing into 2021."
Concluded Mr. Amit, "2021 has started with strong order momentum and we expect it to be a record year in sales and growth, along with improved profitability."
Fourth Quarter 2020 Financial Results
Revenues for the fourth quarter of 2020 were $48.6 million. This compares to fourth quarter 2019 revenues of $33.2 million, a growth of 46%.
Gross profit on a GAAP basis in the quarter totaled $23.3 million (47.9% of revenues), up 47% compared to a gross profit of $15.8 million (47.7% of revenues) in the fourth quarter of 2019. Gross profit on a non-GAAP basis in the quarter totaled $23.4 million (48.2% of revenues), up 47% compared to a gross profit of $15.9 million (48.0% of revenues) in the fourth quarter of 2019.
Operating profit on a GAAP basis in the quarter totaled $8.0 million (16.5% of revenues), an increase of 75% compared to an operating profit of $4.6 million (13.8% of revenues) in the fourth quarter of 2019. Operating profit on a non-GAAP basis in the quarter totaled $9.2 million (18.9% of revenues), an increase of 70% compared to $5.4 million (16.3% of revenues) in the fourth quarter of 2019.
Net income on a GAAP basis in the quarter totaled $7.7 million, or $0.18 per diluted share, compared to net income of $4.6 million, or $0.12 per diluted share, in the fourth quarter of 2019. Net income on a non-GAAP basis in the quarter totaled $8.8 million, or $0.21 per diluted share, compared to a non-GAAP net income of $5.4 million, or $0.14 per diluted share, in the fourth quarter of 2019.
Full Year 2020 Results Summary
Revenues for 2020 were $155.9 million, an increase of 16.3% over the $134.0 million reported in 2019.
Gross profit on a GAAP basis totaled $73.2 million (47.0% of revenues), an increase of 13% compared to $64.8 million (48.3% of revenues) in 2019. Gross profit on a non-GAAP basis totaled $73.7 million (47.3% of revenues), an increase of 13% compared to $65.1 million (48.6% of revenues) in 2019.
Operating income on a GAAP basis totaled $22.6 million (14.5% of revenues), compared to operating income of $22.0 million (16.4% of revenues) in 2019. Operating income on a non-GAAP basis totaled $26.8 million (17.2% of revenues), an increase of 8% compared to $25.0 million (18.7% of revenues) in 2019.
Net income on a GAAP basis totaled $21.8 million, or $0.54 per diluted share. This compares to net income of $22.0 million, or $0.57 per diluted share, in 2019. Net income on a non-GAAP basis totaled $26.0 million, or $0.64 per diluted share. This is an increase of 9% compared to net income of $23.9 million, or $0.62 per diluted share, in 2019.
Cash and cash equivalents and short-term deposits, as of December 31, 2020, were $177.8 million compared to $89.5 million as of December 31, 2019 and $106.0 million as of September 30, 2020. During the fourth quarter, the Company generated an operating cash flow of $8.3 million and raised net proceeds of $64.3 million via a public offering.
Conference Call
Camtek will host a video conference call/webinar today via Zoom, February 9, 2021, at 9:00 am ET (16:00 Israel time).
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 in the video call please visit the link in the investor relations section of Camtek's website: http://www.camtek.com/investors/overview
Passcode: 039565
or click here.
Passcode: 039565
For those wishing to listen via phone, please dial:
US: +1 312 626 6799 or +1 346 248 7799 or +1 646 558 8656 or +1 669 900 9128 or +1 253 215 8782 or +1 301 715 8592
Israel: +972 553 301762 or +972 3 978 6688
Webinar ID: 847 4246 6872
For those unable to participate, a recording will be available on Camtek's website at
within a few 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)
December December
31, 31,
---
2020 2019
---
U.S. Dollars (In
thousands)
Assets
---
Current assets
Cash and cash equivalents 105,815 38,047
Short-term deposits 72,000 51,500
Trade accounts receivable, net 41,001 31,443
Inventories 39,736 23,803
Other current assets 3,366 2,909
---
Total current assets 261,918 147,702
---
Fixed assets, net 20,398 18,526
---
Long term inventory 4,416 2,791
Deferred tax asset, net 482 746
Other assets, net 85 113
Intangible assets, net 609 491
---
5,592 4,141
---
Total assets 287,908 170,369
===
Liabilities and shareholders' equity
---
Current liabilities
Trade accounts payable 27,180 11,334
Other current liabilities 30,204 20,272
---
Total current liabilities 57,384 31,606
Long term liabilities
Other long term liabilities 3,260 2,461
---
3,260 2,461
---
Total liabilities 60,644 34,067
---
Commitments and contingencies
Shareholders' equity
Ordinary shares NIS 0.01 par value,
100,000,000 shares authorized at
December 31, 2020 and at December 31, 2019;
45,365,354 issued shares at December 31, 2019
and 40,742,355 at
December 31, 2019;
43,272,978 shares outstanding at
December 31, 2020 and 171 157
38,649,979 at December 31, 2019
Additional paid-in capital 170,497 101,327
Retained earnings 58,494 36,716
---
229,162 138,200
Treasury stock, at cost (2,092,376 as of
December 31, 2020 and
December 31, 2019)
(1,898) (1,898)
---
Total shareholders' equity 227,264 136,302
---
Total liabilities and shareholders'
equity 287,908 170,369
===
Camtek Ltd.
Consolidated Statements of Operations
---
(in thousands, except share data)
Year ended December Three Months
31, ended December
31,
---
2020 2019 2020 2019
---
U.S. dollars U.S. dollars
---
Revenues 155,859 134,019 48,619 33,201
Cost of revenues 82,628 69,235 25,313 17,360
---
Gross profit 73,231 64,784 23,306 15,841
---
Research and
development costs 19,575 16,331 5,623 4,440
Selling, general and
administrative
expense 31,032 26,481 9,658 6,813
---
50,607 42,812 15,281 11,253
Operating income 22,624 21,972 8,025 4,588
---
Financial income
(expense), net 775 801 (183) 461
---
Income before income
taxes 23,399 22,773 7,842 5,049
---
Income taxes expense (1,621) (1,950) (176) (442)
---
Net income from
continuing
operations 21,778 20,823 7,666 4,607
===
Discontinued operations *
Income from discontinued operations
Income before tax
expense 1,257 -
Income taxes
(expense) (94) -
Income from
discontinued
operations 1,163 -
Net income 21,778 21,986 7,666 4,607
===
*Relates to the earn-out payment received from the sale of the PCB business.
---
Net income per ordinary share:
Year ended December 31, Three Months ended December 31,
2020 2019 2020 2019
U.S. dollars U.S. dollars
Basic earnings from
continuing operation 0.55 0.55 0.19 0.12
Basic earnings from
discontinued
operation * 0.03
Basic net earnings 0.55 0.58 0.19 0.12
Diluted earnings from
continuing
operation 0.54 0.54 0.18 0.12
Diluted earnings from
discontinued
operation * 0.03
Diluted net earnings 0.54 0.57 0.18 0.12
Weighted average number
of
ordinary shares
outstanding:
Basic 39,383 37,626 40,894 38,630
Diluted 40,372 38,432 41,964 39,497
Reconciliation of GAAP To Non-GAAP results
---
(In thousands, except share data)
Year ended December 31, Three Months ended December 31,
---
2020 2019 2020 2019
---
U.S. dollars U.S. dollars
---
Reported net income attributable to 21,778 21,986 7,666 4,607
Camtek Ltd. on GAAP basis
Share-based compensation 4,224 2,892 1,171 824
Chroma transaction expenses (1) 136 -
Attributable to discontinued operations (1,163) -
Non-GAAP net income 26,002 23,851 8,837 5,431
===
Non-GAAP net income
per
diluted share 0.63 0.62 0.21 0.14
Gross margin on GAAP basis 47.0% 48.3% 47.9% 47.7%
Reported gross profit on GAAP basis 73,321 64,784 23,306 15,841
Share-based compensation 429 292 121 85
Non-GAAP gross margin 47.3% 48.6% 48.2% 48.0%
Non-GAAP gross profit 73,750 65,076 23,427 15,926
===
Reported operating income (loss)
attributable to Camtek Ltd. on GAAP
basis
22,624 21,972 8,025 4,588
Share-based compensation 4,224 2,892 1,171 824
Chroma transaction expenses (1) 136 -
Non-GAAP operating income 26,848 25,000 9,196 5,412
===
(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
