Camtek Announces First Quarter 2020 Results

MIGDAL HAEMEK, Israel, May 11, 2020 /PRNewswire/ -- Camtek Ltd. (NASDAQ: CAMT) (TASE: CAMT), today announced its financial results for the first quarter 2020.

Highlights of the First Quarter of 2020

  • Revenues of $30.2 million;
    - Shipments to customers amounted to approximately $33 million, however, about
      $3 million of this was not recognized due to the Coronavirus related delays in
      installations and in accordance with our revenue recognition policy;
  • GAAP operating income of $2.9 million; non-GAAP operating income of $3.7 million;
  • GAAP net income of $2.8 million and non-GAAP net income of $3.6 million; and
  • Operating cash flow of $1.3 million.

Forward-Looking Expectations

Management expects revenues for the second quarter to be between $36-38 million. Based on orders on hand, management further expects continued revenue growth and improved profitability in the third quarter.

Management Comment

Rafi Amit, Camtek's CEO, commented, "Camtek is the leader in the 3D metrology arena. Our strategy is to become a leading supplier in the 2D inspection segment as well. In the first half of 2020, we have expanded and strengthened our position in this segment. Some of our customers ordered multiple 2D Inspection machines with basic configuration which affected our average selling price (ASP). We expect these customers to purchase in the future machines for more complex applications with higher ASPs and margins."

Continued Mr. Amit, "We are seeing strong business momentum. We entered the second quarter with record backlog resulting in good visibility and we expect a significant increase in revenue to between $36-38 million. In the third quarter, we see increased orders for machines with more advanced capabilities and we expect to show an improvement in profitability. It is important to stress that we are still within the Coronavirus pandemic and it is difficult to anticipate its full magnitude and impact on our business in the coming months."

First Quarter 2020 Financial Results

Revenues for the first quarter of 2020 were $30.2 million, a decrease of 11% compared with the first quarter of 2019.  

Gross profit on a GAAP basis in the quarter totaled $13.6 million (44.9% of revenues), compared to a gross profit of $17.2 million (50.5% of revenues) in the first quarter of 2019. Gross profit on a non-GAAP basis in the quarter totaled $13.6 million (45.2% of revenues), compared to $17.2 million (50.6% of revenues) in the first quarter of 2019. The decrease in the gross margin in the quarter was due to lower revenue and a less favorable product mix in the quarter.

Operating profit on a GAAP basis in the quarter totaled $2.9 million (9.5% of revenues), compared to an operating profit of $6.7 million (19.6% of revenues) in the first quarter of 2019. Operating profit on a non-GAAP basis in the quarter totaled $3.7 million (12.2% of revenues), compared to $7.3 million (21.5% of revenues) in the first quarter of 2019.

Net income on a GAAP basis in the quarter totaled $2.8 million, or $0.07 per diluted share, compared to net income of $6.0 million, or $0.16 per diluted share, in the first quarter of 2019. Net income on a non-GAAP basis in the quarter totaled $3.6 million, or $0.09 per diluted share, compared to non-GAAP net income of $6.7 million, or $0.18 per diluted share, in the first quarter of 2019. 

Cash and cash equivalents and short-term deposits, as of March 31, 2020 were $90.6 million compared to $89.5 million as of December 31, 2019. During the quarter, Camtek generated $1.3 million in operating cash flow.

Conference Call

Camtek will host a conference call today, May 11, 2020, at 9:00am 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:

1 888 668 9141

at 9:00am Eastern Time

Israel:

03 918 0609

at 4:00pm 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 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. Camtek does not assume any obligation to update that information. It is important to note that there is no way to predict how the coronavirus situation will evolve further and impact Camtek's business. 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 new products and their adoption by the market, increased competition in the industry, the length and severity of the recent COVID-19 (coronavirus) outbreak, including its impacts across our businesses on demand, operations, and our global supply chains, intellectual property litigation, and 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) share based compensation expenses, (ii) discontinued operations, and (iii) Chroma transaction 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. and its subsidiaries

Consolidated Balance Sheets

(In thousands)



March 31,

December 31,


2020

2019


U.S. Dollars

Assets






Current assets



Cash and cash equivalents

49,086

38,047

Short-term deposits

41,500

51,500

Trade accounts receivable, net

37,141

31,443

Inventories

26,476

23,803

Other current assets

3,083

2,909




Total current assets

157,286

147,702







Fixed assets, net

18,548

18,526




Long term inventory

2,881

2,791

Deferred tax asset

745

746

Other assets, net

113

113

Intangible assets, net

474

491





4,213

4,141




Total assets

180,047

170,369




Liabilities and shareholders' equity






Current liabilities



Trade accounts payable

16,253

11,334

Other current liabilities

21,650

20,272




Total current liabilities

37,903

31,606




Long term liabilities



Other long term liabilities

2,187

2,461


2,187

2,461




Total liabilities

40,090

34,067




Commitments and contingencies






Shareholders' equity



Ordinary shares NIS 0.01 par value, 100,000,000 shares authorized at
 March 31, 2020 and at December 31, 2019;



 40,765,912 issued shares at March 31, 2020 and 40,742,355 at
 December 31, 2019;



38,673,536 shares outstanding at March 31, 2020 and 38,649,979 at
 December 31, 2019

 

157

 

157

Additional paid-in capital

102,202

101,327

Retained earnings

39,496

36,716


141,855

138,200

Treasury stock, at cost (2,092,376  as of March 31, 2020 and
 December 31, 2019)

 

(1,898)

 

(1,898)




Total shareholders' equity

139,957

136,302




Total liabilities and shareholders' equity

180,047

170,369

 

 

Camtek Ltd.

Consolidated Statements of Operations

(in thousands, except share data)



Three months ended

March 31,

Year ended

December 31,


2020

2019

2019


U.S. dollars

U.S. dollars





Revenues

30,179

34,002

134,019

Cost of revenues

16,622

16,846

69,235





Gross profit

13,557

17,156

64,784









Research and development costs

4,130

3,924

16,331

Selling, general and administrative expenses

6,559

6,575

26,481





Total operating expenses

10,689

10,499

42,812





Operating income

2,868

6,657

21,972





Financial income, net

375

17

801





Income from continuing operations before
  incomes taxes

3,243

6,674

22,773





Income tax expense

(463)

(647)

(1,950)





Net income from continuing operations

2,780

6,027

20,823





Income from discontinued operations




Income before income tax expense

-

-

1,257

Income tax expense

-

-

(94)





Net income from discontinued operations

-

-

1,163





Net income

2,780

6,027

21,986



Three months ended

March 31,

Year ended

December 31,


2020

2019

2019


U.S. dollars

U.S. dollars





Basic earnings from continuing operations

0.07

0.17

0.55





Basic earnings from discontinued operations

-

-

0.03





Basic net earnings

0.07

0.17

0.58





Diluted earnings from continuing operations

0.07

0.16

0.54





Diluted earnings from discontinued operations

-

-

0.03





Diluted net earnings

0.07

0.16

0.57





Weighted average number of




  ordinary shares outstanding:








Basic

38,665

36,476

37,626





Diluted

39,628

37,267

38,432


 

 

Camtek Ltd.

Reconciliation of GAAP To Non-GAAP results

(In thousands, except share data)



Three months ended

 March 31,

Year ended

December 31,



2020

2019

2019



U.S. dollars

U.S. dollars







Reported net income attributable
 to Camtek Ltd. on GAAP basis

 

 

2,780

 

6,027

 

21,986

Share-based compensation

817

645

2,892

Chroma transaction expenses (1)

-

-

136

Attributable to discontinued operations

-

-

(1,163)

Non-GAAP net income

3,597

6,672

23,851





Non –GAAP net income per share,
  basic and diluted

 

 

0.09

 

0.18

 

0.62

Gross margin on GAAP basis

44.9%

50.5%

48.3%

Reported gross profit on GAAP basis

 

13,557

17,156

64,784

Share-based compensation

86

61

292

Non- GAAP gross margin

45.2%

50.6%

48.6%

Non-GAAP gross profit

13,643

17,217

65,076





Reported operating income

attributable to Camtek Ltd. on GAAP basis

 

2,868

 

6,657

 

21,972

Share-based compensation

817

645

2,892

Chroma transaction expenses (1)


-

136

Non-GAAP operating income

3,685

7,302

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 RELATIONS  

GK Investor Relations

Ehud Helft

Tel: (US) 1 646 688 3559

camtek@gkir.com

  

Cision View original content:http://www.prnewswire.com/news-releases/camtek-announces-first-quarter-2020-results-301056510.html

SOURCE Camtek Ltd

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.