zk1517137.htm

 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
under the Securities Exchange Act of 1934
For the Month of August 2015
CAMTEK LTD.
(Translation of Registrant’s Name into English)
Ramat Gavriel Industrial Zone
P.O. Box 544
Migdal Haemek 23150
ISRAEL
(Address of Principal Corporate Offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities and Exchange Act of 1934.
Yes o No ☒
 
 

 
 
SIGNATURE
        Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
   
CAMTEK LTD.
(Registrant)
By: /s/ Moshe Eisenberg
——————————————
Moshe Eisenberg,
Chief Financial Officer
Dated: August 3, 2015
 
 
 

 
Camtek Ltd.
P.O.Box 544, Ramat Gabriel Industrial Park
MigdalHa’Emek 23150,  ISRAEL
Tel: +972 (4) 604-8100   Fax: +972 (4) 644-0523
E-Mail:    Info@camtek.co.il  Web site: http://www.camtek.co.il
 
 
CAMTEK LTD.
Moshe Eisenberg, CFO
Tel: +972 4 604 8308
Mobile: +972 54 900 7100
moshee@camtek.co.il
INTERNATIONAL INVESTOR RELATIONS
GK Investor Relations
Ehud Helft / Kenny Green
Tel: (US) 1 646 201 9246
camtek@gkir.com
FOR IMMEDIATE RELEASE
CAMTEK ANNOUNCES SECOND QUARTER 2015 RESULTS

Q2 revenues of $25.4 million-17% sequential growth; Q3 revenue guidance of $25.5-27 million

MIGDAL HAEMEK, Israel – August 3, 2015 – Camtek Ltd. (NASDAQ and TASE: CAMT), today announced its financial results for the quarter ended June 30, 2015.
 
Highlights of the Second Quarter 2015

  · Revenues of $25.4 million, up 17% sequentially and 10% year-over-year driven by sales in the advanced packaging semiconductor market;
  · Non-GAAP operating income of $1.2 million; GAAP operating income of $1.1 million;
  · Non-GAAP net income of $0.8 million; GAAP net income of $0.6 million;
  · Continued growth expected into Q3: guidance of $25.5 to 27 million;
 
Management Comment

Rafi Amit, Camtek’s Chairman and CEO, commented, “We continue to see strength in our semiconductor sales, with important strategic orders of our system supporting advanced packaging and CMOS image sensor (CIS) applications into new and existing customers. These sales are driving the growth in our semiconductor business.”

Continued Mr. Amit, “We are very pleased with the on-going feedback received from customers who are evaluating the Gryphon system. We recently launched a demo center in China to allow our Taiwanese and Chinese customers the opportunity to see in operation the next generation model, the Gryphon SL, which enables both legend and solder mask deposition. The Gryphon is a brand new and disruptive technology for the PCB industry, designed to replace current solder mask and legend deposition; as such, the sales process for Gryphon is extended and is taking longer than our normal sale cycle. In the coming months, we expect to install a number of additional systems at customers’ sites in Asia and in the US. We believe that we will start recognizing revenues from the Gryphon in 2016.”

“Our third quarter revenue guidance is $25.5-27 million. We are expecting Q3 to be stronger than Q2, based on the success at our existing customers and the penetration of new accounts, coupled with growth of our market segments.  We are on track for a strong year for our semiconductor sales in 2015 with expected double digit year-over-year growth.” concluded Mr. Amit.
 
 
 

 
 
Second quarter 2015 Financial Results

Revenues for the second quarter of 2015 were $25.4 million. This compares to second quarter 2014 revenues of $23.1 million and first quarter 2015 revenues of $21.8 million.

Gross profit on a GAAP basis in the quarter totaled $10.9 million (42.7% of revenues), compared to $11.5 million (49.5% of revenues) in the second quarter 2014 and $9.8 million in the first quarter of 2015 (45.1% of revenues). The gross margin in the second quarter of last year was particularly high due to a specific high-margin sale in that quarter. In the second quarter of 2015, the gross margin was below the normal range due to less favorable product mix sold in the quarter.
 
Gross profit on a non-GAAP basis in the quarter totaled $10.9 million (43.7% of revenues), compared to $11.5 million (49.5% of revenues) in the second quarter 2014 and $9.8 million in the first quarter of 2015 (45.2% of revenues).

Operating profit on a GAAP basis in the quarter totaled $1.1 million (4.3% of revenues), compared to $2.6 million (11.1% of revenues) in the second quarter 2014 and $1.1 million in the first quarter of 2015 (5.2% of revenues). General and administrative expenses were particularly high in the quarter due to some additional legal expenses which were incurred in in connection with ongoing patent litigation.
 
Operating profit on a non-GAAP basis in the quarter totaled $1.2 million (4.5% of revenues), compared to $2.6 million (11.5% of revenues) in the second quarter 2014 and $1.2 million in the first quarter of 2015 (5.5% of revenues).

Financial expenses on a GAAP basis in the quarter totaled $193 thousand, compared to $330 thousand in the second quarter 2014 and $847 thousand in the first quarter of 2015.

Financial expenses on a non-GAAP basis in the quarter totaled $75 thousand, compared to $124 thousand in the second quarter 2014 and $627 thousand in the first quarter of 2015.

Net income on a GAAP basis in the quarter totaled $647 thousand, or $0.02 per diluted share. This compares to net income of $2.0 million, or $0.07 per diluted share, in the second quarter 2014 and a net income of $52 thousand, or $0.00 per diluted share, in the first quarter of 2015.

Net income on a non-GAAP basis in the quarter totaled $825 thousand, or $0.03 per diluted share. This compares to net income of $2.3 million, or $0.08 per diluted share, in the second quarter 2014 and a net income of $335 thousand, or $0.01 per diluted share, in the first quarter of 2015.

Cash, cash equivalents, short and long-term restricted deposits, as of June 30, 2015 were $32.1 million (out of which $7.9 million are restricted deposits) compared to $21.9 million as of March 31, 2015. During the second quarter, the Company raised net cash in the amount of $12 million in a secondary public offering. Operating cash flow during the quarter was negative $2.0 million. This was as a result of investment in working capital to support the expected growth in sales.
 
 
 

 

Conference Call

Camtek will host a conference call today, August 3, 2015, at 9:00 am ET.

Rafi Amit, Chairman and CEO, and Moshe Eisenberg, Chief Financial Officer, 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 4:00 pm Israel Time
Israel:
03 918 0609
 
at 4:00 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.co.il/ beginning 24 hours after the call.

ABOUT CAMTEK LTD.

Camtek Ltd. provides automated and technologically advanced solutions dedicated to enhancing production processes, increasing products yield and reliability, enabling and supporting customer's latest technologies in the Semiconductors, Printed Circuit Boards (PCB) and IC Substrates industries.
 
Camtek addresses the specific needs of these interconnected industries with dedicated solutions based on a wide and advanced platform of technologies including intelligent imaging, image processing and functional 3D inkjet printing.

This press release is available at www.camtek.co.il.
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, intellectual property litigation, price reductions as well as due to risks identified in the documents filed by the Company with the SEC.
Use of non-GAAP Measures
This press release provides financial measures that exclude certain items such as: (i) amortization of acquired intangible assets and revaluation of liabilities with respect to the acquisitions of Sela and Printar; and (ii) share based compensation 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.
 
 

 
 
Consolidated Balance Sheets

(In thousands)
 
   
June 30,
   
December 31,
 
   
2015
   
2014
 
   
U.S. Dollars (In thousands)
 
Assets
           
             
Current assets
           
Cash and cash equivalents
   
24,235
     
18,220
 
Short-term deposits
   
-
     
8,607
 
Trade accounts receivable, net
   
30,092
     
22,341
 
Inventories
   
28,387
     
24,650
 
Due from affiliated companies
   
343
     
501
 
Other current assets
   
3,204
     
2,382
 
Deferred tax asset
   
858
     
858
 
                 
Total current assets
   
87,119
     
77,559
 
                 
Fixed assets, net
   
12,731
     
13,025
 
                 
Long term inventory
   
1,870
     
1,476
 
Long-term restricted deposit
   
7,875
     
729
 
Deferred tax asset
   
771
     
891
 
Other assets, net
   
348
     
348
 
Intangible assets, net
   
903
     
928
 
Goodwill
   
1,555
     
1,555
 
                 
     
13,322
     
5,927
 
                 
Total assets
   
113,172
     
96,511
 
                 
Liabilities and shareholders’ equity
               
                 
Current liabilities
               
Trade accounts payable
   
12,661
     
9,490
 
Other current liabilities
   
17,216
     
16,279
 
                 
Total current liabilities
   
29,877
     
25,769
 
                 
Long term liabilities
               
Liability for employee severance benefits
   
779
     
860
 
Other long term liabilities
   
4,044
     
4,150
 
     
4,823
     
5,010
 
                 
Total liabilities
   
34,700
     
30,779
 
                 
Shareholders’ equity
               
Ordinary shares NIS 0.01 par value, authorized 100,000,000 shares,
               
37,242,880 issued as of June 30, 2015 and 32,586,898 issued as of December 31, 2014, outstanding 35,150,504
               
as of June 30, 2015 and 30,494,522 as of December 31, 2014
   
148
     
134
 
Additional paid-in capital
   
75,492
     
63,465
 
Retained earnings
   
4,730
     
4,031
 
     
80,370
     
67,630
 
Treasury stock, at cost (2,092,376  as of June 30, 2015 and December 31, 2014)
   
(1,898
)
   
(1,898
)
                 
Total shareholders' equity
   
78,472
     
65,732
 
                 
Total liabilities and shareholders' equity
   
113,172
     
96,511
 

 
 
 

 

Consolidated Statements of Operations

(in thousands, except share data)
 
   
Six Months ended
June 30,
   
Three Months
ended June 30,
   
Year ended
December 31,
 
   
2015
   
2014
   
2015
   
2014
   
2014
 
   
U.S. dollars
   
U.S. dollars
   
U.S. dollars
 
Revenues
   
47,162
     
45,270
     
25,412
     
23,161
     
88,313
 
Cost of revenues
   
26,488
     
23,672
     
14,557
     
11,693
     
47,294
 
                                         
Gross profit
   
20,674
     
21,598
     
10,855
     
11,468
     
41,019
 
                                         
                                         
Research and development costs
   
6,954
     
6,964
     
3,554
     
3,530
     
14,406
 
Selling, general and administrative expenses
   
11,489
     
10,900
     
6,208
     
5,374
     
21,417
 
Reorganization and impairment
   
-
     
-
     
-
     
-
     
60
 
     
18,443
     
17,864
     
9,762
     
8,904
     
35,883
 
                                         
Operating income
   
2,231
     
3,734
     
1,093
     
2,564
     
5,136
 
                                         
Financial expenses, net
   
(1,040
)
   
(694
)
   
(193
)
   
(329
)
   
(1,220
)
                                         
Income before income
                                       
 taxes
   
1,191
     
3,040
     
900
     
2,235
     
3,916
 
                                         
Income tax
   
(492
)
   
(389
)
   
(253
)
   
(223
)
   
(579
)
                                         
Net income
   
699
     
2,651
     
647
     
2,012
     
3,337
 
                                         
Net income per ordinary share:
                                       
                                         
Basic
   
0.02
     
0.09
     
0.02
     
0.07
     
0.11
 
                                         
Diluted
   
0.02
     
0.09
     
0.02
     
0.07
     
0.11
 
                                         
Weighted average number of
                                       
  ordinary shares outstanding:
                                       
                                         
Basic
   
31,518
     
30,447
     
32,530
     
30,467
     
30,464
 
                                         
Diluted
   
31.654
     
30,534
     
32,742
     
30,534
     
30,545
 
 
 
 

 
Camtek Ltd.
Reconciliation of GAAP To Non-GAAP results
(In thousands, except share data)

   
Six Months ended
June 30,
   
Three Months
ended June 30,
   
Year ended
December 31,
 
   
2015
   
2014
   
2015
   
2014
   
2014
 
   
U.S. dollars
   
U.S. dollars
   
U.S. dollars
 
Reported net income (loss) attributable to Camtek Ltd. on GAAP basis
   
699
     
2,651
     
647
     
2,012
     
3,337
 
Acquisition of Sela and Printar related expenses (1)
   
341
     
412
     
118
     
206
     
903
 
Share-based compensation
   
120
     
131
     
60
     
92
     
309
 
                                         
Non-GAAP net income
   
1,160
     
3,194
     
825
     
2,310
     
4,549
 
                                         
Non –GAAP net income  per share , basic and diluted
   
0.04
     
0.10
     
0.03
     
0.08
     
0.15
 
Gross margin on GAAP basis
   
43.8
%
   
47.7
%
   
42.7
%
   
49.5
%
   
46.4
%
Reported gross profit on GAAP basis
   
20,674
     
21,598
     
10,855
     
11,468
     
41,019
 
Acquisition of Sela and Printar related expenses ( 1)
   
-
     
-
     
-
     
-
     
264
 
Share-based compensation
   
10
     
24
     
5
     
8
     
42
 
Non- GAAP gross margin
   
20,684
     
47.7
%
   
10,860
     
49.5
%
   
46.8
%
Non-GAAP gross profit
   
43.9
%
   
21,622
     
42.7
%
   
11,476
     
41,325
 
                                         
Reported operating income attributable to Camtek Ltd. on GAAP basis
   
2,231
     
3,734
     
1,093
     
2,564
     
5,136
 
Acquisition of Sela and Printar related expenses (1)
   
-
     
-
     
-
     
-
     
264
 
Share-based compensation
   
120
     
123
     
60
     
84
     
309
 
Non-GAAP operating income
   
2,351
     
3,857
     
1,153
     
2,648
     
5,709
 

During the three and the six months ended June 30, 2015 and 2014 and the twelve months ended December 31, 2014, the Company recorded acquisition expenses of $0.1 million, $0.3 million, $0.2 million, $0.4 million and $0.9 million, respectively, consisting of: (1) Revaluation adjustments of $0.1 million, $0.3 million, $0.2 million, $0.4 million and $0.6 million, respectively, of contingent consideration and certain future liabilities recorded at fair value. These amounts are recorded under finance expenses line item; (2) Implication of re-organization and impairment charges of $0, $0, $0, $0 and $0.3 million, respectively.