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 February 2017
 
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 x 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: February 8, 2017
 


Camtek Ltd.
P.O.Box 544, Ramat Gabriel Industrial Park
Migdal Ha'Emek 23150,  ISRAEL
Tel: +972 (4) 604-8100   Fax: +972 (4) 644-0523
E-Mail:    Info@camtek.com  Web site: http://www.camtek.com
 
CAMTEK LTD.
Moshe Eisenberg, CFO
Tel: +972 4 604 8308
Mobile: +972 54 900 7100
moshee@camtek.com
 
INTERNATIONAL INVESTOR RELATIONS
GK Investor Relations
Ehud Helft / Gavriel Frohwein
Tel: (US) 1 646 688 3559
camtek@gkir.com
FOR IMMEDIATE RELEASE
 
CAMTEK ANNOUNCES FOURTH QUARTER AND FULL YEAR 2016 RESULTS

Reports record full year revenues of $110 million, up 10% year-over-year
Expects continued growth into 2017 driven by Semiconductor business

MIGDAL HAEMEK, Israel – February 8, 2017 – Camtek Ltd. (NASDAQ: CAMT; TASE: CAMT), today announced its financial results for the quarter and full year ended December 31, 2016.

Highlights of the Fourth Quarter 2016
 
·
Revenues of $29.3 million, 14% year over year increase;
 
·
GAAP operating income of $2.8 million, representing 9.7% operating margins; Non-GAAP operating income of $3.0 million, representing 10.1% operating margins;
 
·
GAAP net income of $2.3 million; Non-GAAP net income of $2.5 million;
 
·
First quarter revenue guidance at around, or possibly slightly better than, the fourth quarter levels, represents approximately 20% year-over-year growth;
 
Highlights of the Full Year 2016
 
·
Revenues of $109.5 million; 10% year over year increase;
 
·
Semiconductor revenues of $79.0 million; 16% year over year increase;
 
·
GAAP operating income of $6.6 million; Non-GAAP operating income of $7.9 million;
 
·
GAAP net income of $4.7 million; Non-GAAP net income of $6.2 million;
 
Rafi Amit, Camtek's Chairman and CEO, commented, "The strength in our fourth quarter 2016 culminates a very good year for Camtek, with record full year revenues and solid improvements in our profitability margins and our bottom line. Our ongoing performance is being driven primarily by strong performance of our semiconductor business and in particular by systems for the advanced packaging market. In addition, the improvement in the operating margin is very gratifying and we expect it to continue to improve in 2017. "

Added Mr. Amit, "Looking ahead, our business environment remains strong and we have seen a robust start to 2017. All signs point to another year of solid growth for Camtek, driven by continued double-digit growth of our semiconductor business. The first quarter, which includes the Chinese New Year, is typically the weakest one of the year. However, this year, we expect a strong first quarter with revenues at around, or possibly slightly better than, the fourth quarter levels, representing year-over-year growth of 20%."


Fourth Quarter 2016 Financial Results

Revenues for the fourth quarter of 2016 were $29.3 million. This compares to fourth quarter 2015 revenues of $25.8 million, a growth of 14% and prior quarter revenues of $28.5 million, an increase of 3%.

Gross profit on a GAAP basis in the quarter totaled $13.4 million (45.7% of revenues), compared to $10.6 million (41.3 of revenues) in the fourth quarter 2015 and $7.5 million in the prior quarter (26.2% of revenues).

Gross profit on a non-GAAP basis in the quarter totaled $13.4 million (45.8% of revenues), compared to $11.7 million (45.4% of revenues) in the fourth quarter 2015 and $12.4 million in the prior quarter (43.6% of revenues).

Operating profit on a GAAP basis in the quarter totaled $2.8 million (9.7% of revenues), compared to an operating loss of $14.1 million (-54.6% of revenues), in the fourth quarter 2015 and an operating profit of $1.7 million (5.8% of revenues) in the prior quarter.

Operating profit on a non-GAAP basis in the quarter totaled $3.0 million (10.1% of revenues), compared to $1.8 million (6.8% of revenues) in the fourth quarter 2015 and $2.7 million in the prior quarter (9.3% of revenues).

Net income on a GAAP basis in the quarter totaled $2.3 million, or $0.07 per diluted share. This compares to net loss of $11.8 million, or $0.34 per diluted share, in the fourth quarter 2015 and a net profit of $1.1million, or $0.03 per diluted share, in the prior quarter.

Net income on a non-GAAP basis in the quarter totaled $2.5 million, or $0.07 per diluted share. This compares to net income of $2.9 million, or $0.08 per diluted share, in the fourth quarter 2015 and a net income of $2.1 million, or $0.06 per diluted share, in the prior quarter.

Full Year 2016 Results Summary

Revenues for 2016 were $109.5 million. This compares to revenues of $99.3 million in 2015, a growth of 10%.

Gross profit on a GAAP basis totaled $44.0 million (40.1% of revenues), compared to $43.1 million (43.4% of revenues) in 2015.

Gross profit on a non-GAAP totaled $48.9 million (44.7% of revenues), compared to $44.2 million (44.5% of revenues) in 2015. The gross profit on a GAAP basis excludes the $4.9 million effect of the FIT re-organization including the write-off of inventory and other one-time expenses.

Operating income on a GAAP basis totaled $6.6 million (6.0% of revenues), compared to a loss of $10.1 million (-10.1% of revenues) in 2015.

Operating profit on a non-GAAP basis totaled $7.9 million (7.2% of revenues), compared to $6.0 million (6.0% of revenues) in 2015. The operating profit excluded a one-time net expense of $0.9 million due the reorganization of the FIT activity. This one-time expense includes a $5.6 million inventory and fixed asset write-off, other expenses of $0.3 million, partially offset by income of $5.0 million related to a write-off of liabilities to the Office of the Chief Scientist in Israel.
 
Net income on a GAAP basis totaled $4.7 million, or $0.13 per diluted share. This compares to a net loss of $10.1 million, or $0.30 per diluted share, in 2015.


Net income on a non-GAAP basis totaled $6.2 million, or $0.18 per diluted share. This compares to net income of $5.2 million, or $0.16 per diluted share, in 2015.

Cash, cash equivalents, short and long-term restricted deposits, as of December 31, 2016 were $19.7 million compared to $30.8 million as of December 31, 2015. The reduction was primarily due a $14.6 million payment made to Rudolph for IP litigation.

The Company reported a positive operating cash flow of $0.4 million during the quarter.

Conference Call

Camtek will host a conference call today, Wednesday, February 8, 2017, at 9:30 am ET.

Rafi Amit, Chairman and CEO, and Moshe Eisenberg, CFO, 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 9:30 am Eastern Time
Israel:
03 918 0609
 
at 4:30 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.
 
ABOUT CAMTEK LTD.

Camtek Ltd. provides automated and technologically advanced solutions dedicated to enhancing production processes, increasing products yield and reliability, enabling and supporting customers' 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.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. 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) write off of inventory and fixed-assets related to the discontinued FIT product line; (ii) revaluation of liabilities with respect to the acquisition of Printar; (iii) the impact of reorganization and impairment charges; and (iv) 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.
 


Camtek Ltd.

Consolidated Balance Sheets
 
   
December 31,
 
   
2016
   
2015
 
   
U.S. Dollars (In thousands)
 
Assets
           
Current assets
           
Cash and cash equivalents
   
19,740
     
30,833
 
Short-term restricted deposits
   
-
     
7,875
 
Accounts receivable, net
   
36,000
     
27,003
 
Inventories
   
25,448
     
27,599
 
Due from affiliated companies
   
77
     
559
 
Other current assets
   
2,747
     
1,712
 
Deferred tax asset
   
894
     
177
 
Total current assets
   
84,906
     
95,758
 
                 
Fixed assets, net
   
14,109
     
13,531
 
                 
Long term inventory
   
2,107
     
1,979
 
Deferred tax asset
   
3,283
     
3,955
 
Other assets, net
   
270
     
248
 
Intangible assets, net
   
865
     
795
 
     
6,525
     
6,977
 
                 
Total assets
   
105,540
     
116,266
 
                 
Liabilities and shareholders' equity
               
                 
Current liabilities
               
Accounts payable – trade
   
12,983
     
11,812
 
Other current liabilities
   
18,322
     
30,712
 
Total current liabilities
   
31,305
     
42,524
 
                 
Long term liabilities
               
Liability for employee severance benefits
   
870
     
772
 
Other long term liabilities
   
-
     
4,768
 
     
870
     
5,540
 
                 
Total liabilities
   
32,175
     
48,064
 
                 
Commitments and contingencies
               
                 
Shareholders' equity
               
Ordinary shares NIS 0.01 par value, authorized 100,000,000 shares,
               
 37,440,552 issued as of December 31, 2016, as of
               
 December 31, 2015, outstanding 35,348,176 as of December 31, 2016,
               
 and as of December 31, 2015
   
148
     
148
 
Additional paid-in capital
   
76,463
     
76,034
 
Retained earnings (losses)
   
(1,348
)
   
(6,082
)
     
75,263
     
70,100
 
Treasury stock, at cost (2,092,376 as of December 31, 2016 and December 31, 2015)
   
(1,898
)
   
(1,898
)
                 
Total shareholders' equity
   
73,365
     
68,202
 
                 
Total liabilities and shareholders' equity
   
105,540
     
116,266
 

Camtek Ltd.

Consolidated Statements of Operations
(In thousands, except share data)
 
   
Year ended
December 31,
   
Three Months ended
December 31,
 
   
2016
   
2015
   
2016
   
2015
 
   
U.S. dollars
   
U.S. dollars
 
Revenues
   
109,523
     
99,275
     
29,331
     
25,776
 
Cost of revenues
   
60,638
     
56,149
     
15,917
     
15,130
 
Reorganization
   
*4,931
     
-
     
-
     
-
 
                                 
Gross profit
   
43,954
     
43,126
     
13,414
     
10,646
 
                                 
Research and development costs
   
(15,896
)
   
(14,860
)
   
(3,947
)
   
(4,246
)
Selling, general and administrative expenses
   
(25,501
)
   
(23,587
)
   
(6,622
)
   
(5,740
)
Implication of re-organization and
                               
 impairment losses
   
**4,059
     
****(138
)
   
-
     
****(138
)
Loss from litigation
   
-
     
***(14,600
)
   
-
     
***(14,600
)
     
(37,338
)
   
(53,185
)
   
(10,569
)
   
(24,724
)
                                 
Operating income (loss)
   
6,616
     
(10,059
)
   
2,845
     
(14,078
)
                                 
Financial expenses, net
   
(994
)
   
(1,877
)
   
(402
)
   
(388
)
                                 
Income (loss) before income taxes
   
5,622
     
(11,936
)
   
2,443
     
(14,466
)
                                 
Income taxes (expense)
   
(888
)
   
1,823
     
(96
)
   
2,659
 
                                 
Net income (loss)
   
4,734
     
(10,113
)
   
2,347
     
(11,807
)
                                 
Net income (loss) per ordinary share:
                               
                                 
Basic
   
0.13
     
(0.30
)
   
0.07
     
(0.34
)
                                 
Diluted
   
0.13
     
(0.30
)
   
0.07
     
(0.34
)
                                 
Weighted average number of
                               
 ordinary shares outstanding:
                               
                                 
Basic
   
35,348
     
33,352
     
35,348
     
35,164
 
                                 
Diluted
   
35,376
     
33,352
     
35,396
     
35,164
 
 
(*)
Consists of inventory write-off in the amount of $4,841 and other expenses related to FIT reorganization.
(**)
$4,962 OCS liability write-off offset by fixed asset write-off and other expenses related to FIT reorganization.
(***)
Relates to provision in conjunction with the final court ruling on February 3, 2016 in Camtek's appeal in the patent infringement case of Rudolph Technologies Inc. regarding the Falcon system.
(****)
Relates to Printar impairment charges in respect of goodwill and other intangible assets, offset by renegotiation of the liability to the shareholders of Printar.



Reconciliation of GAAP To Non-GAAP results
(In thousands, except share data)
 
   
Year ended
December 31,
   
Three Months ended
December 31,
 
   
2016
   
2015
   
2016
   
2015
 
   
U.S. dollars
   
U.S. dollars
 
Reported net income (loss) attributable to Camtek Ltd. on GAAP basis
   
4,734
     
(10,113
)
   
2,347
     
(11,807
)
                                 
Effect of FIT reorganization (1)
   
872
     
-
     
-
     
-
 
Acquisition of Sela and Printar related expenses (2)
   
183
     
751
     
-
     
288
 
Inventory write –downs (3)
   
-
     
1,041
     
-
     
1,041
 
Share-based compensation
   
429
     
270
     
110
     
58
 
Loss from litigation, net of tax (4)
   
-
     
13,286
     
-
     
13,286
 
Non-GAAP net income
   
6,218
     
5,235
     
2,457
     
2,866
 
                                 
Non–GAAP net income per share, basic and diluted
   
0.18
     
0.16
     
0.07
     
0.08
 
                                 
Gross margin on GAAP basis
   
40.1
%
   
43.4
%
   
45.7
%
   
41.3
%
Reported gross profit on GAAP basis
   
43,954
     
43,126
     
13,414
     
10,646
 
                                 
Effect of FIT reorganization (1)
   
4,931
     
-
     
-
     
-
 
Inventory write –downs (3)
   
-
     
1,041
     
-
     
1,041
 
Share-based compensation
   
42
     
24
     
10
     
7
 
Non- GAAP gross margin
   
44.7
%
   
44.5
%
   
45.8
%
   
45.4
%
Non-GAAP gross profit
   
48,927
     
44,191
     
13,424
     
11,694
 
                                 
Reported operating income (loss) attributable to Camtek Ltd. on GAAP basis
   
6,616
     
(10,059
)
   
2,845
     
(14,078
)
Effect of Fit reorganization (1)
   
872
     
-
     
-
     
-
 
Acquisition of Sela and Printar related expenses (2)
   
-
     
138
     
-
     
138
 
Inventory write-downs (3)
   
-
     
1,041
     
-
     
1,041
 
Share-based compensation
   
429
     
271
     
110
     
59
 
Loss from litigation (4)
   
-
     
14,600
     
-
     
14,600
 
Non-GAAP operating income
   
7,917
     
5,991
     
2,955
     
1,760
 
 
(1)
During each of the three and twelve months periods ended December 31, 2016, the Company recorded reorganization costs with regard to the FIT activities of $0 million and  $0.9 million, respectively, consisting of: (1) inventory and fixed asset write-offs of $0 million and $4.9 million, respectively, recorded under cost of revenues line item; (2) other expenses of $0 million and $0.1 million, respectively, recorded under cost of revenues line item; (3) fixed asset write-offs of $0 million and $0.7 million, respectively, recorded under operating expenses; (4) other expenses of $0 million and $0.2 million, respectively, recorded under operating expenses; and (5) income from write-off of liabilities to OCS of $0 million and $5.0 million, respectively, recorded under operating expenses.
 
(2)
During the three and the twelve months periods ended December 31, 2016 and 2015, the Company recorded acquisition expenses of $0 million, $0.2 million, $0.3 million and $0.8 million, respectively, consisting of: (1) Revaluation adjustments of $0 million, $0.2 million, $0.2 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, $0.1 million and $0.1 million, respectively.
 
(3)
During the three and the twelve months periods ended December 31, 2015, the Company recorded inventory write downs in the amount $1.0 million, recorded under cost of revenues line item.
 
(4)
During the three and the twelve months periods ended December 31, 2015, the Company recorded a provision of $14.6 million  ($13.3 million net of tax) in conjunction with the final court ruling on February 3, 2016 in Camtek's appeal in the patent infringement case of Rudolph Technologies Inc. regarding the Falcon system.