Camtek Announces Results for the Second Quarter of 2020

MIGDAL HAEMEK, Israel , Aug. 5, 2020  /PRNewswire/ -- Camtek Ltd. (NASDAQ: CAMT) (TASE: CAMT), today announced its financial results for the quarter ended June 30, 2020.

Highlights of the Second Quarter 2020

  • Revenues were a quarterly record at $37.0 million, up 8% year-over-year;
  • GAAP gross margin at 45.8%; Non-GAAP gross margin at 46.1%;
  • GAAP operating income was $5.4 million and non-GAAP operating income was $6.4 million, representing margins of 14.6% and 17.2%, respectively;
  • GAAP net income of $5.3 million, or $0.13 per diluted share, non-GAAP net income of $6.3 million, or $0.16 per diluted share; and
  • Strong operating cash flow of $11.1 million with $101.5 million in net cash and short-term deposits at quarter-end.

Forward-Looking Expectations

Based on orders on hand, management expects continued revenue growth and improved profitability in the third quarter. Management expects revenues for the third quarter to be between $38-39 million.

Management Comment

Rafi Amit Camtek's CEO commented, "Camtek's second quarter results reflect continued demand for our products, especially in Asia.

"We have increased our market share in 2D inspection mainly as a result of the significant improvement in our system performance and competitiveness in all 2D applications. In addition, we are benefitting from our strategy of having in place local professional teams that can independently install and support machines in all our territories. This has enabled us to continue growing our business even during the COVID-19 pandemic."

Continued Mr. Amit, "The revenues in the second quarter were at a record level, and the ongoing demands from our customers for various applications point to a strong third quarter, with encouraging backlog for the fourth quarter. However, it is important to stress that we are still seeing the Coronavirus pandemic effects, which increase risks and uncertainties."

Second Quarter 2020 Financial Results

Revenues for the second quarter of 2020 were $37.0 million. This compares to second quarter 2019 revenues of $34.3 million, a growth of 8%.

Gross profit on a GAAP basis in the quarter totaled $16.9 million (45.8% of revenues), up 2% compared to a gross profit of $16.6 million (48.2% of revenues) in the second quarter of 2019. Gross profit on a non-GAAP basis in the quarter totaled $17.0 million (46.1% of revenues), up 3% compared to a gross profit of $16.6 million (48.4% of revenues) in the second quarter of 2019.

Operating profit on a GAAP basis in the quarter totaled $5.4 million (14.6% of revenues), compared to an operating profit of $6.4 million (18.5% of revenues) in the second quarter of 2019. Operating profit on a non-GAAP basis in the quarter totaled $6.4 million (17.2% of revenues), compared to $7.0 million (20.5% of revenues) in the second quarter of 2019.

Net income on a GAAP basis in the quarter totaled $5.3 million, or $0.13 per diluted share, compared to net income of $7.2 million, or $0.19 per diluted share, in the second quarter of 2019. Net income on a non-GAAP basis in the quarter totaled $6.3 million, or $0.16 per diluted share, compared to a non-GAAP net income of $6.7 million, or $0.18 per diluted share, in the second quarter of 2019.  

Cash and cash equivalents and short-term deposits, as of June 30, 2020, were $101.5 million compared to $89.5 million as of December 31, 2019. During the quarter, the Company generated a positive operating cash flow of $11.1 million, of which $7.6 million were advanced payments from customers.

Conference Call

Camtek will host a conference call today, August 5, 2020, at 9:00 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:                     1 888 407 2553       at 9:00 am Eastern Time
Israel:                 03 918 0610           at 4:00 pm Israel Time
International:    +972 3 918 0610

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.

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 second half of 2020, 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 Sheet


(In thousands)




June 30, 


December 31,


2020


2019


U.S. Dollars (In thousands)

Assets




Current assets




Cash and cash equivalents

32,469


38,047

Short-term deposits

69,000


51,500

Trade accounts receivable, net

39,528


31,443

Inventories

29,537


23,803

Other current assets

3,523


2,909

Total current assets

174,057


147,702

Fixed assets, net

18,800


18,526

Long term inventory

3,292


2,791

Deferred tax asset

520


746

Other assets, net

80


113

Intangible assets, net

574


491






4,466


4,141





Total assets

197,323


170,369





Liabilities and shareholders' equity




Current liabilities




Trade accounts payable

20,561


11,334

Other current liabilities

28,170


20,272

Total current liabilities

48,731


31,606

Long term liabilities




Other long term liabilities

2,100


2,461


2,100


2,461

Total liabilities

50,831


34,067

Commitments and contingencies




Shareholders' equity




Ordinary shares NIS 0.01 par value, 100,000,000 shares authorized at
June 30, 2020 and at December 31, 2019;




41,124,714 issued shares at June 30, 2019 and 40,742,355 at
December 31, 2019;




39,032,338 shares outstanding at June 30, 2020 and 38,649,979 at
December 31, 2019

158


157

Additional paid-in capital

103,428


101,327

Retained earnings

44,804


36,716


148,390


138,200

Treasury stock, at cost (2,092,376  as of June 30, 2020 and December
31, 2019)

(1,898)


(1,898)

Total shareholders' equity

146,492


136,302

Total liabilities and shareholders' equity

197,323


170,369

 

 

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,


2020

2019

2020

2019

2019


U.S. dollars

U.S. dollars

U.S. dollars







Revenues

67,179

68,348

37,000

34,346

134,019

Cost of revenues

36,679

34,623

20,057

17,777

69,235







Gross profit

30,500

33,725

16,943

16,569

64,784













Research and development costs

8,884

7,727

4,754

3,803

16,331

Selling, general and administrative expenses

13,338

12,987

6,779

6,412

26,481


22,222

20,714

11,533

10,215

42,812







Operating income

8,278

13,011

5,410

6,354

21,972







Financial income, net

651

152

276

135

801







Income from continuing operations






 before income taxes

8,929

13,163

5,686

6,489

22,773







Income tax expense

(841)

(1,110)

(378)

(463)

(1,950)







Net income from continuing operations

8,088

12,053

5,308

6,026

20,823







Discontinued operations *






Income from discontinued operations












Income before tax expense

-

1,257

-

1,257

1,257

Income tax expense

-

94

-

94

94







Net income from discontinued operations

-

1,163

-

1,163

1,163







Net income

8,088

13,216

5,308

7,189

21,986


*Relates to the earn-out payment received from the sale of the PCB business.



 

 

Net income per ordinary share:









Six months ended

Three months 

Year ended 

 June 30,

ended June 30,

December 31,



2020

2019

2020

2019

2019


Note

U.S. dollars

U.S. dollars

U.S. dollars















Basic earnings from
continuing operation


0.21

0.33

0.14

0.16

0.55








Basic earnings from
discontinued operation


-

0.03

-

0.03

0.03








Basic net earnings


0.21

0.36

0.14

0.19

0.58















Diluted earnings from
continuing operation


0.20

0.32

0.13

0.16

0.54








Diluted earnings from discontinued operations


-

0.03

-

0.03

0.03








Diluted net earnings


0.20

0.35

0.13

0.19

0.57








Weighted average number of







  ordinary shares outstanding 







  (in thousands):














Basic


38,849

36,644

39,033

36,816

37,626








Diluted


39,779

37,476

39,940

37,734

37,432

 

 













Camtek Ltd.






Reconciliation of GAAP To Non-GAAP results






(In thousands, except share data)







Six Months ended,
June 30th

 

Six Months ended,
June 30th


Year ended
December 31,


2020

2019

2020

2019

2019


U.S. Dollars

U.S. Dollars

U.S. Dollars





Reported net income attributable to
Camtek Ltd. on GAAP basis

8,088

13,216

5,308

7,189

21,986

Share-based compensation

1,768

1,250

951

605

2,892

Chroma transaction expenses (1)

-

73

-

73

136

Attributable to discontinued operations

-

(1,163)

-

(1,163)

(1,163)







Non-GAAP net income

9,856

13,376

6,259

6,704

23,851







Non–GAAP net income per diluted share

0.25

0.37

0.16

0.18

0.62

Gross margin on GAAP basis from continuing operations

 

45.4%

 

49.4%

 

45.8%

 

48.2%

 

48.3%

Reported gross profit on GAAP basis

30,500

33,725

16,943

16,569

64,784

Share-based compensation

189

122

103

61

292







Non- GAAP gross margin

30,689

33,847

17,046

16,630

65,076

Non-GAAP gross profit

45.7%

49.5%

46.1%

48.4%

48.6%







 

Reported operating income attributable
to Camtek Ltd. on GAAP basis from
continuing operations

 

 

 

8,278

 

 

 

13,011

 

 

 

5,410

 

 

 

6,354

 

 

 

21,972

Share-based compensation

1,768

1,250

951

605

2,892

Chroma transaction expenses (1)

-

73

-

73

136

Non-GAAP operating income

10,046

14,334

6,361

7,032

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-results-for-the-second-quarter-of-2020-301106450.html

SOURCE Camtek Ltd

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