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 July 2018
 
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: July 31, 2018
 


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 RECORD RESULTS
FOR THE SECOND QUARTER OF 2018

Record revenue of $30.5 million, 34% increase YoY;
Expects continued strong growth in the second half of 2018

MIGDAL HAEMEK, Israel – July 31, 2018 – Camtek Ltd. (NASDAQ: CAMT; TASE: CAMT), today announced its financial results for the quarter ended June 30, 2018.

Highlights of the Second Quarter 2018
 
·
Revenues were a record at $30.5 million, up 34% year-over-year and ahead of the upper end of the previously-issued guidance range;
 
·
Revenues for the first half of 2018 are up over 30% from 2017;
 
·
GAAP operating income was $4.7 million and non-GAAP operating income was $5.0 million, representing a margins of 15.5% and 16.3%, respectively; and
 
·
GAAP net income was $4.3 million and non-GAAP net income was $4.6 million; representing margins of 14.2% and 15.0%, respectively.
 
Forward Looking Guidance

Third quarter 2018 revenues are expected to grow to $31-32 million, representing a year-over-year increase of approximately 30% for the third quarter and for the first nine months of 2018.

Management Comment
 
Rafi Amit Camtek’s CEO commented, “2018 continues to be a very strong year with revenue growth of approximately 30% and corresponding improvement in profitability. Our strong results are due to our focus on the fastest growing segments of the semiconductors market, particularly advanced packaging. Furthermore, we are successfully leveraging our strong market position in metrology to grow and capture market share in 2D inspection applications as well. Our backlog at record levels and our improved visibility into the end of the year, give us confidence that we will continue revenue growth and associated improvement in margins and profit in the fourth quarter of 2018.”
 
The financial results and the comparison to 2017 in this press release include only those of the continuing operations.


Second Quarter 2018 Financial Results

Revenues for the second quarter of 2018 were $30.5 million. This compares to second quarter 2017 revenues of $22.7 million, a growth of 34%.

Gross profit on a GAAP basis in the quarter totaled $14.9 million (48.9% of revenues), compared to a gross profit of $11.2 million (49.2% of revenues) in the second quarter 2017.
Gross profit on a non-GAAP basis in the quarter totaled $14.9 million (49.0% of revenues), compared to $11.2 million (49.2% of revenues) in the second quarter 2017.

Operating profit on a GAAP basis in the quarter totaled $4.7 million (15.5% of revenues), compared to an operating loss of $11.0 million in the second quarter 2017. The 2017 operating loss was due to a $13 million settlement payment for IP litigation.
Operating profit on a non-GAAP basis in the quarter totaled $5.0 million (16.3% of revenues), compared to $2.1 million (9.2% of revenues) in the second quarter 2017.

Net income on a GAAP basis in the quarter totaled $4.3 million, or $0.12 per diluted share, compared to net loss from continuing operations of $5.7 million, or ($0.16) per diluted share, in the second quarter 2017.
Net income on a non-GAAP basis in the quarter totaled $4.6 million, or $0.13 per diluted share, compared to non-GAAP net income from continuing operations of $2.0 million, or $0.06 per diluted share, in the second quarter 2017.

Cash and cash equivalents, as of June 30, 2018, were $41.2 million compared to $47.2 million as of March 31, 2018. During the quarter the Company paid a $5.1 million dividend. In addition, the Company reported a negative operating cash flow of $1.0 million during the second quarter to support the working capital requirements.

Conference Call

Camtek will host a conference call today, July 31, 2018, at 10:00 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:                                      
Israel:                                   
International:           
1 888 668 9141
03 918 0609
+972 3 918 0609
 
at 10:00 am Eastern Time
at 5:00 pm Israel Time
 
 
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 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 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, price reductions as well as due to risks identified in the documents filed by the Company with the SEC.
 
This press release provides financial measures that exclude: (i) settlement expenses; (ii) changes in valuation allowance on deferred tax assets; (iii) share based compensation expenses, (iv) discontinued operations, and (v) write off costs with regard to the FIT activities, 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
(In thousands)
 
   
June 30,
   
December 31,
 
   
2018
   
2017
 
   
U.S. Dollars (In thousands)
 
Assets
           
             
Current assets
           
Cash and cash equivalents
   
41,204
     
43,744
 
Trade accounts receivable, net
   
32,278
     
23,153
 
Inventories
   
23,693
     
21,336
 
Other current assets
   
2,769
     
3,215
 
                 
Total current assets
   
99,944
     
91,448
 
                 
Fixed assets, net
   
15,731
     
15,503
 
                 
Long-term inventory
   
1,466
     
1,383
 
Deferred tax asset
   
3,308
     
4,067
 
Other assets, net
   
153
     
153
 
Intangible assets, net
   
480
     
482
 
     
5,407
     
6,085
 
Total assets
   
121,082
     
113,036
 
                 
Liabilities and shareholders’ equity
               
Current liabilities
               
Trade accounts payable
   
15,174
     
10,502
 
Other current liabilities
   
16,552
     
17,395
 
                 
Total current liabilities
   
31,726
     
27,897
 
                 
Long term liabilities
               
Liability for employee severance benefits
   
870
     
838
 
     
870
     
838
 
Total liabilities
   
32,596
     
28,735
 
                 
Shareholders’ equity
               
Ordinary shares NIS 0.01 par value, 100,000,000 shares authorized at June 30, 2018 and at December 31, 2017;
               
38,277,165 issued shares at June 30, 2018 and 37,924,507 at December 31, 2017;
               
36,184,789 shares outstanding at June 30, 2018 and 35,832,131 at December 31, 2017
   
149
     
149
 
Additional paid-in capital
   
79,820
     
78,437
 
Retained earnings (losses)
   
10,415
     
7,613
 
     
90,384
     
86,199
 
                 
Treasury stock, at cost (2,092,376  as of June 30, 2018 and December 31, 2017)
   
(1,898
)
   
(1,898
)
                 
Total shareholders' equity
   
88,486
     
84,301
 
                 
Total liabilities and shareholders' equity
   
121,082
     
113,036
 


Camtek Ltd.
Consolidated Statements of Operations
(in thousands, except share data)
 
   
Six Months ended
June 30,
   
Three Months
ended June 30,
   
Year ended
December 31,
 
   
2018
   
2017
   
2018
   
2017
   
2017
 
   
U.S. dollars
   
U.S. dollars
   
U.S. dollars
 
Revenues
   
57,736
     
43,828
     
30,462
     
22,682
     
93,485
 
Cost of revenues
   
29,840
     
22,384
     
15,563
     
11,527
     
47,966
 
                                         
Gross profit
   
27,896
     
21,444
     
14,899
     
11,155
     
45,519
 
                                         
Research and development costs
   
6,955
     
6,852
     
3,406
     
3,413
     
13,534
 
Selling, general and administrative expenses
   
12,664
     
11,159
     
6,775
     
5,754
     
22,022
 
Patent litigation expense
   
-
     
13,000
     
-
     
13,000
     
13,000
 
                                         
Total operating expenses
   
19,619
     
31,011
     
10,181
     
22,167
     
48,556
 
                                         
Operating income (loss)
   
8,277
     
(9,567
)
   
4,718
     
(11,012
)
   
(3,037
)
                                         
Financial income (expenses), net
   
436
     
(209
)
   
146
     
(56
)
   
(150
)
                                         
Income (loss) from continuing operations before income taxes
   
8,713
     
(9,776
)
   
4,864
     
(11,068
)
   
(3,187
)
                                         
Income tax benefit (expense)
   
(848
)
   
5,364
     
(533
)
   
5,404
     
4,875
 
                                         
Income (loss) from continuing operations
   
7,865
     
(4,412
)
   
4,331
     
(5,664
)
   
1,688
 
                                         
Discontinued operation
                                       
Income from discontinued operation
                                       
Income before tax benefit (expense)
   
-
     
4,339
     
-
     
1,981
     
18,302
 
Income tax benefit (expense)
   
-
     
(505
)
   
-
     
(194
)
   
(6,028
)
                                         
Income from discontinued operation
   
-
     
3,834
     
-
     
1,787
     
12,274
 
                                         
Net income (loss)
   
7,865
     
(578
)
   
4,331
     
(3,877
)
   
13,962
 
                                         
Net income (loss) per ordinary share:
                                       
                                         
Basic earnings (loss) from continuing operation
   
0.22
     
(0.12
)
   
0.12
     
(0.16
)
   
0.05
 
                                         
Basic earnings from discontinued operation
   
-
     
0.11
     
-
     
0.05
     
0.35
 
                                         
Diluted earnings (loss) from continuing operation
   
0.22
     
(0.12
)
   
0.12
     
(0.16
)
   
0.05
 
                                         
Diluted earnings from discontinued operation
   
-
     
0.11
     
-
     
0.05
     
0.34
 
                                         
Weighted average number of ordinary shares outstanding:
                                       
                                         
Basic
   
36,050
     
35,359
     
36,090
     
35,369
     
35,441
 
                                         
Diluted
   
36,512
     
35,359
     
36,632
     
35,369
     
35,964
 


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,
 
   
2018
   
2017
   
2018
   
2017
   
2017
 
   
U.S. dollars
   
U.S. dollars
   
U.S. dollars
 
Reported net income (loss) attributable to Camtek Ltd. on GAAP basis
   
7,865
     
(578
)
   
4,331
     
(3,877
)
   
13,962
 
                                         
Effect of FIT reorganization (1)
   
506
     
-
     
-
     
-
     
-
 
Share-based compensation
   
395
     
184
     
249
     
92
     
426
 
Settlement expense, net of tax (2)
   
-
     
12,025
     
-
     
12,025
     
12,025
 
Realization of deferred tax assets (3)
   
-
     
(4,495
)
   
-
     
(4,495
)
   
(4,495
)
Attributable to discontinued operations
   
-
     
(3,832
)
   
-
     
(1,787
)
   
(12,274
)
                                         
Non-GAAP net income
   
8,766
     
3,304
     
4,580
     
1,958
     
9,644
 
                                         
Non –GAAP net income  per share , basic and diluted
   
0.24
     
0.09
     
0.13
     
0.06
     
0.27
 
                                         
Gross margin on GAAP basis from continuing operations
   
48.4
%
   
48.9
%
   
48.9
%
   
49.2
%
   
48.7
%
Reported gross profit on GAAP basis
   
27,896
     
21,444
     
14,899
     
11,155
     
45,519
 
                                         
Effect of FIT reorganization (1)
   
205
     
-
     
-
     
-
     
-
 
Share-based compensation
   
44
     
19
     
28
     
9
     
44
 
                                         
Non- GAAP gross margin
   
28,145
     
21,463
     
14,927
     
11,164
     
45,563
 
Non-GAAP gross profit
   
48.8
%
   
48.9
%
   
49.0
%
   
49.2
%
   
48.7
%
                                         
Reported operating income (loss) attributable to Camtek Ltd. on GAAP basis from continuing operations
   
8,277
     
(9,567
)
   
4,718
     
(11,012
)
   
(3,037
)
Effect of FIT reorganization (1)
   
506
     
-
     
-
     
-
     
-
 
Share-based compensation
   
395
     
184
     
249
     
92
     
426
 
Settlement expense (2)
   
-
     
13,000
     
-
     
13,000
     
13,000
 
Non-GAAP operating income
   
9,178
     
3,617
     
4,967
     
2,080
     
10,389
 
 
(1)
At the end of the first quarter of 2018, the Company ceased its efforts to utilize the remaining inventory and equipment related to FIT development and recorded a one-time write-off in the amount of $0.5 million, consisting of: (1) inventory write-offs of $0.2 million, recorded under the cost of revenue line item; and (2) fixed asset write-offs of $0.3 million recorded under operating expenses.
 
(2)
During the three and the six months ended June 30, 2017, and the year ended December 31, 2017, the Company recorded a provision of $13 million ($12 million net of tax) in conjunction settlement with Rudolph Technologies Inc.
 
(3)
During the three and the six months ended June 30, 2017, and the year ended December 31. 2017, the Company recorded net income of $4.5 million as a result of a decrease in the valuation allowance on deferred tax assets following the evaluation of the realizability of the assets based on projected future earnings.