Camtek Announces Second Quarter 2014 Results - 100.7 Jack FM San Diego Radio & DSC- sandiegojack

Camtek Announces Second Quarter 2014 Results

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SOURCE Camtek Ltd.

$23.2 million Revenue; $2.7 million Operating Income on a Non GAAP basis; On track with the 3D Inkjet product

MIGDAL HAEMEK, Israel, July 29, 2014 /PRNewswire/ -- Camtek Ltd. (NASDAQ and TASE: CAMT), today announced its financial results for the quarter ended June 30, 2014.

Highlights of the Second Quarter of 2014

  • Revenues of $23.2 million;
  • Non-GAAP and GAAP Gross margins of $11.5 million, representing 49.5% of revenues;
  • Non-GAAP and GAAP operating income of $2.7 million and $2.6 million, respectively, representing 11.5% and 11.1% of revenues, respectively; and
  • Non-GAAP net income of $2.3 million; GAAP net income of $2.0 million.

Rafi Amit, Camtek's Chairman and CEO, commented, "We are pleased with the results and the progress we have made during the second quarter."

Continued Mr. Amit, "Our new product strategy is progressing well. With regard to the commercialization process of our 3D Functional Ink-Jet Technology product, Gryphon, our two beta sites have been ongoing for a few months and so far, we are happy with the results. The more we run the machine in a production environment, as well as meeting with potential customers, the more confident we become in our belief that Ink-Jet technology for solder-mask will be the dominant technology in the PCB industry for years to come. We remain on track and expect initial commercial Gryphon installations at customers to begin in the fourth quarter, with revenues expected in 2015. Our other recently launched next-generation semiconductor inspection and metrology platform for the advanced packaging market, Eagle, is also gaining strong traction especially among leading OSATs.  We look forward to unleashing and realizing the potential within our new products and expect them to increasingly contribute to our future revenues."

Concluded Mr. Amit, "Our existing business continues to show solid performance, and overall Camtek is on track for a good year. In the third quarter, we expect revenues to remain around the same level as that of the second quarter."

Second quarter 2014 Financial Results

Revenues for the second quarter of 2014 were $23.2 million. This is a 4% improvement compared to revenues of $22.3 million in the second quarter of 2013.

Gross profit on a GAAP basis in the quarter totaled $11.5 million (49.5% of revenues), a 17% improvement compared to $9.8 million (44.0% of revenues) in the second quarter of 2013. The improved gross margin is mainly due to a favorable revenue mix in the quarter.

Gross profit on a non-GAAP basis in the quarter was $11.5 million (49.5% of revenues), a 16% improvement compared to $9.9 million (44.4% of revenues) in the second quarter of 2013.

Operating income on a GAAP basis in the quarter was $2.6 million (11.1% of revenues), compared with an operating income of $1.0 million (4.5% of revenues) in the second quarter of 2013.

Operating income on a non-GAAP basis in the quarter was $2.7 million (11.5% of revenues) compared with non-GAAP operating income of $1.2 million (5.4% of revenues) in the second quarter of 2013.

Net income on a GAAP basis in the quarter totaled $2.0 million (8.7% of revenues) or $0.07 per share, compared to a net income of $0.3 million (1.5% of revenues) or $0.01 per share in the second quarter of 2013.

Net income on a non-GAAP basis in the quarter was $2.3 million (10.0% of revenues) or $0.08 per share, compared to non-GAAP net income of $1.0 million (4.5% of revenues) or $0.03 per share in the second quarter of 2013.

Cash, cash equivalents and short-term deposits as of June 30, 2014 were $20.0 million compared to $22.5 million as of December 31, 2013. The company used $3.0 million in cash flow for operating activities during the second quarter of 2014 mainly as a result of collection timing.

Conference Call

Camtek will host a conference call today, July 29, 2014, 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 9:00 am Eastern 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,


2014


2013


U.S. Dollars (In thousands)

Assets




Current assets




Cash and cash equivalents

11,563


16,495

Short-term deposits

8,500


6,000

Trade accounts receivable, net

31,579


27,048

Inventories

19,041


17,911

Due from affiliated companies

231


233

Other current assets

2,201


1,913

Deferred tax asset

788


938





Total current assets

73,903


70,538





Fixed assets, net

13,837


14,481





Long term inventory

1,979


2,225

Long-term deposit

729


729

Deferred tax asset

975


975

Other assets, net

339


339

Intangible assets, net

1,028


1,008

Goodwill

1,555


1,555


6,605


6,831

Total assets

94,345


91,850





Liabilities and shareholders' equity




Current liabilities




Trade accounts payable

8,375


7,753

Other current liabilities

15,967


15,585





Total current liabilities

24,342


23,338





Long term liabilities




Liability for employee severance benefits

939


858

Other long term liabilities

4,218


5,758


5,157


6,616

Total liabilities

29,499


29,954





Shareholders' equity




Ordinary shares NIS 0.01 par value, authorized 100,000,000 shares,




32,564,626 issued as of June 30, 2014 and 32,497,902 issued as of December 31, 2013, outstanding 30,472,250




as of June 30, 2014 and 30,405,526 as of December 31, 2013

134


134

Additional paid-in capital

63,265


62,966

Retained earnings

3,345


694


66,744


63,794

Treasury stock, at cost (2,092,376  as of June 30, 2014 and December 31, 2013)

(1,898)


(1,898)





Total shareholders' equity

64,846


61,896





Total liabilities and shareholders' equity

94,345


91,850

 


Consolidated Statements of Operations

(in thousands, except share data)








Six Months ended

June 30,


Three Months

ended June 30,


Year ended

December

31,


2014


2013


2014


2013


2013


U.S. dollars


U.S. dollars


U.S. dollars

Revenues

45,270


40,339


23,161


22,266


85,405

Cost of revenues

23,672


22,317


11,693


12,447


51,003











Gross profit

21,598


18,022


11,468


9,819


34,402





















Research and development costs

6,964


7,208


3,530


3,558


14,370

Selling, general and administrative expenses

10,900


9,974


5,374


5,268


22,362

Reorganization and impairment

-


-


-


-


(3,466)


17,864


 

17,182


8,904


 

8,826


 

33,266











Operating income

3,734


840


2,564


993


1,136











Financial expenses, net

694


1,078


329


512


1,738











Income (loss) before income










 taxes

3,040


(238)


2,235


481


(602)











Income tax

(389)


(293)


(223)


(146)


609











Net income (loss)

2,651


(531)


2,012


335


7











Net income (loss) per ordinary share:




















Basic

0.09


(0.02)


0.07


0.01


0.00











Diluted

0.09


(0.02)


0.07


0.01


0.00











Weighted average number of ordinary shares outstanding:




















Basic

30,447


29,966


30,467


30,034


30,040











Diluted

30,534


29,971


30,534


30,044


30,094











 

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,


2014


2013


2014


2013


2013


U.S. dollars


U.S. dollars


U.S. dollars











Reported net income (loss) attributable to Camtek Ltd. on GAAP basis

2,651


(531)


2,012


335


7











Acquisition of Sela and Printar related expenses (1)

412


 

994


206


 

516


 

(1,949)

Inventory and fixed asset write –downs (2)

-


-


-


-


4,433

Share-based compensation

131


285


92


141


377

Realization of deferred tax assets (3)

-


-


-


-


(1,287)

Employee related charges (4)

-


-


-


-


490











Non-GAAP net income

3,194


748


2,310


992


2,071











Non –GAAP net income  per share, basic and diluted

0.10


0.03


0.08


0.03


0.07











Gross margin on GAAP basis

47.7%


44.7%


49.5%


44.1%


40.3%

Reported gross profit on GAAP basis

21,598


18,022


11,468


9,819


34,402











Acquisition of Sela and Printar related expenses (1)

-


 

150


-


 

75


 

225

Inventory and fixed asset write –downs (2)

-


-


-


-


3,915

Share-based compensation

24


27


8


21


55

Employee related charges (4)

-


-


-


-


25

Non- GAAP gross margin

47.7%


45.1%


49.5%


44.4%


45.2%

Non-GAAP gross profit

21,622


18,199


11,476


9,915


38,622











Reported operating income attributable to Camtek Ltd. on GAAP basis

3,734


 

 

840


2,564


 

 

993


 

 

1,136











Acquisition of Sela and Printar related expenses (1)

-


150


-


75


(3,241)

Inventory and fixed asset write-downs (2)

-


-


-


-


4,433

Share-based compensation

123


285


84


141


377

Employee related charges



-




-


490











Non-GAAP operating income

3,857


1,275


2,648


1,209


3,195

 

(1)

During the three and the six months ended June 30, 2014 and 2013 and the twelve months ended December 31, 2013, the Company recorded acquisition expenses of $0.2 million, $0.4 million, 0.5 million, 1.0 million and $(2.0) million, respectively, consisting of: (1) Revaluation adjustments of $0.2 million, $0.4 million, 0.4 million, 0.8 million  and $1.3 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 $(3.5) respectively; and (3) $0, $0, $0.07, $0.15 and $0.2 million, respectively, with respect to amortization of intangible assets acquired recorded under cost of revenues line item.



(2)

During the three and six months ended June 30, 2014 and 2013 and the twelve months ended December 31, 2013, the Company recorded inventory and fixed asset write downs in the amount of $0 million, $0 million, $0 million, $0 million  and $4.4 million, respectively, consisting of $0, $0,$0, $0 and $3.9 million of inventory and fixed assets recorded under cogs of revenues line item and $0, $0, $0, 4) and $0.5 million of fixed assets in operating expenses.



(3)

During the three and six months ended June 30, 2014 and 2013 and the twelve months ended December 31, 2013, the Company recorded net income of $0, $0, $0, $0 and $1.3 million, respectively, 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.



(4)

During the three and six months ended June 30, 2014 and 2013 and the twelve months ended December 31, 2013, the Company recorded net employee related expenses of $0, $0, $0, $0  and $0.5 million, respectively, as a result of internal reorganization.

 

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 / Gavriel Frohwein
Tel: (US) 1 646 688 3559

camtek@gkir.com

 

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