Camtek Announces All Time Record Revenue in the Third Quarter of 2011 Year Over Year Revenue Increase of 24% to $29.7 Million

MIGDAL HAEMEK, Israel, November 3, 2011 /PRNewswire/ --

Camtek Ltd. (NASDAQ and TASE: CAMT), today announced its financial results for the third quarter ended September 30, 2011.

Main Financial Highlights of the Third Quarter

  • All-time record quarterly revenue of $29.7 million, representing a sequential quarterly increase of 3% and a year-over-year increase of 24%.
  • Non-GAAP gross margin of 45.9% for the quarter compared with non-GAAP gross margin of 45.8% in the third quarter of last year; GAAP gross margin of 45.5% for the current quarter.
  • Non-GAAP operating income of $4.2 million compared with non-GAAP operating income of $2.5 million in the third quarter of 2010. GAAP operating income reached $4.0 million in the current quarter.
  • Non-GAAP net income of $3.3 million in the quarter compared with Non-GAAP net income of $2.5 million in the third quarter of 2010; GAAP net income of $2.6 million in the current quarter.
  • Non-GAAP earnings per diluted share of $0.11; GAAP earnings per diluted share of $0.09.


 

Results for the three months ended September 30, 2011 on a non-GAAP basis, exclude the following items: (i) Expenses with respect to the acquisition of SELA and Printar; and (ii) share based compensation expenses. A re-conciliation between the GAAP and non-GAAP results appears in the tables at the end of this press release.

Third Quarter 2011 Financial Results

Revenues for the third quarter of 2011 increased 24% to $29.7 million, compared to $23.9 million in the third quarter of 2010. The level of revenues in the third quarter of 2011 were at an all-time high for the Company for the second quarter in a row, growing 3% sequentially, and came in slightly ahead of the top-end of the previously-announced guidance range of between $27.5-$29.5 million.

Gross profit on a GAAP basis in the quarter totaled $13.5 million (45.5% of revenues), compared with $10.9 million (45.6% of revenues) in the third quarter of 2010. Gross profit on a non-GAAP basis in the quarter totaled $13.6 million (45.9% of revenues), compared with $10.9 million (45.8% of revenues) in the third quarter of 2010.

Operating income on a GAAP basis in the quarter was $4.0 million (13.4% of revenues) compared with $2.3 million (9.7% of revenues) in the third quarter of 2010. Non-GAAP operating income was $4.2 million (14.1% of revenues) in the quarter compared with $2.5 million (10.5% of revenues) in the third quarter of 2010.

Net income on a GAAP basis in the third quarter of 2011 totaled $2.6 million, or $0.09 per diluted share, compared to $2.0 million, or $0.07 per diluted share, in the third quarter of 2010.

Net income on a non-GAAP basis in the third quarter of 2011 was $3.4 million, or $0.11 per diluted share, compared with $2.5 million, or $0.08 per diluted share, in the third quarter of 2010.

Cash and cash equivalents levels as of September 30, 2011 were $13.9 million plus an additional $5.1 million in restricted cash. This is compared with $12.3 million in cash and equivalents, plus an additional $5.1 million in restricted cash as of June 30, 2011. Following Camtek's successful appeal in an infringement dispute, a bond which Camtek had provided as part of the process was officially released on September 27, 2011, and subsequently, soon after the reporting date, the pledged restriction on the cash was released.

Management Comment

Roy Porat, Camtek's Chief Executive Officer, commented: "We are very pleased with our strong third quarter results, again reaching an all time record. In our results of the quarter, we can increasingly see the potential for the long-term growth in our business. The recent expansion of our product range from two legacy product lines, adding an additional three product lines, all of which are gaining market traction, is enabling us to begin realizing our significant potential."

Mr. Porat concluded: "As we move through the fourth quarter, it is clear that the pace of business is slower and visibility in the short-term is also very limited. Similar to our industry peers, the current global macro-economic concerns are weighing on customers' spending patterns. At the same time, the increasing sales and market traction of our new products which are in the early penetration and growth phase, are showing continued strength. This has provided us with diversification in our revenue stream away from any one particular sector, and enabling us to better weather the current downturn. Taking these factors into account, for the fourth quarter we expect revenues in the range of $22-24 million. This implies that we will report record full year revenues in excess of $107 million, representing substantial growth of approximately 25% over last year."

Camtek Appoints New Chief Financial Officer

Camtek today announced the appointment of Moshe Eisenberg, replacing Mira Rosenzweig as Chief Financial Officer of the Company.

Mr. Eisenberg brings a wealth of financial experience in U.S. listed, publicly traded and private companies. Prior to joining Camtek, he served as the CFO of Exlibris, and prior to that spent 4 years as the CFO of Scopus Video Networks, leading it from its Initial Public Offering on Nasdaq until its acquisition by Harmonic. Prior to Scopus, Mr. Eisenberg spent 10 years with Gilat Satellite in various finance positions, including 5 years as CFO of Safenet Inc., a U.S.-based subsidiary of Gilat. Mr. Eisenberg holds an MBA in Finance from Tel Aviv University and a B.Sc. in Agricultural Economics from the Hebrew University of Jerusalem.

Commenting on the appointment, Mr. Porat said, "After 3 years at Camtek, Mira has decided to leave to pursue new opportunities. During her tenure, she has been instrumental and part of a management team which strongly grew the company, as well as successfully integrating two acquisitions. We thank her for all her hard work and wish her much success in the future. Moshe Eisenberg, who will be taking over the CFO role, is bringing to Camtek his experience in various financial roles. We very much look forward to Moshe joining us, and we believe he will enable us to further grow our business. We welcome him to the Camtek family and wish him every success in this new role. "

Conference Call

The Company will also host a conference call today, starting at 10:00 am ET. Roy Porat, Chief Executive Officer, Mira Rosenzweig, outgoing Chief Financial Officer, and Moshe Eisenberg, incoming 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:                 1 888 407 2553    at 10:00 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.co.il beginning 24 hours after the call.

ABOUT CAMTEK LTD.

Camtek Ltd provides automated and technologically advanced solutions dedicated to enhancing production processes and increasing yields, enabling and supporting customers' latest technologies in the Semiconductor and Printed Circuit Board (PCB) & 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, ion milling and digital material deposition. Ranging from micro-to-nano, Camtek provides a complete solution for the whole production cycle of all electronic devices including smartphones, tablets and other cutting edge consumer products and applications.

This press release is available at http://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 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.


 

CAMTEK LTD. and its subsidiaries
Consolidated Balance Sheets
(In thousands)

   
                                               September   December
                                                  30,         31,
                                                 2011        2010
                                                   U.S. Dollars
                                                  (In thousands)
   Assets

   Current assets
   Cash and cash equivalents                     13,909     9,577
   Restricted deposits*                           5,103         -
   Accounts receivable, net                      37,645    28,817
   Inventories                                   25,339    24,034
   Due from affiliates                              412       384
   Other current assets                           2,208     2,414
   Deferred tax asset                                54        54

   Total current assets                          84,670    65,280

   Fixed assets, net                             15,183    15,077

   Restricted deposits *                              -     5,182
   Long term inventory                            2,062     2,304
   Deferred tax asset                               152       152
   Other assets, net                                460       460
   Intangible assets, net **                      4,204     4,163
   Goodwill                                       3,653     3,653

                                                 10,531    15,914

   Total assets                                 110,384    96,271

   Liabilities and shareholders' equity

   Current liabilities
   Short term bank loans                          4,273     1,409
   Accounts payable - trade                      10,672     9,761
   Long term bank loans - current portion         1,101       433
   Other current liabilities                     22,327    21,408

   Total current liabilities                     38,373    33,011

   Long term liabilities
   Long term bank loans                           1,766       758
   Liability for employee severance benefits        587       626
   Other long term liabilities **                 7,897     7,884
                                                 10,250     9,268

   Total liabilities                             48,623    42,279

   Commitments and contingencies

   Shareholders' equity
   Ordinary shares NIS 0.01 par value,
   authorized 100,000,000 shares,
   31,800,297 issued as September 30, 2011
   and 31,370,359 as of December 31, 2010,
   outstanding 29,707,921
   as of September 30, 2011 and 29,277,983 as
   of December 31, 2010                             133       132
   Additional paid-in capital                    60,959    60,452
   Accumulated losses                             2,567    (4,694)
                                                 63,659    55,890
   Treasury stock, at cost (2,092,376 as of
   September 30, 2011 and December 31, 2010)     (1,898)   (1,898)

   Total shareholders' equity                    61,761    53,992

   Total liabilities and shareholders' equity   110,384    96,271



 

(*) Bank guarantee against credit line related to the Rudolph Technologies appeal.

(**)   Relates to Printar and SELA acquisitions

Camtek Ltd.
ConsolidatedStatements of Operations
(in thousands, except share data)

   
                                     Nine Months    Three Months  Year ended
                                        ended          ended       December
                                    September 30,  September 30,     31,
                                    2011    2010    2011    2010     2010
                                    U.S. dollars    U.S. dollars     U.S.
                                                                    dollars

   Revenues                        85,924  62,348  29,676 23,915     87,780
   Cost of revenues                46,582  35,616  16,167 13,019     49,361

   Gross profit                    39,342  26,732  13,509 10,896     38,419

   Research and development costs  10,888   9,312   3,528  3,088     12,906
   Selling, general and
   administrative                  18,715  14,319   6,016  5,495     20,662
   Expenses
                                   29,603  23,631   9,544  8,583     33,568

   Operating income                 9,739   3,101   3,965  2,313      4,851

   Financial expenses, net         (1,811) (1,244) (1,034)  (233)    (1,478)

   Income before income
   Taxes                            7,928   1,857   2,931  2,080      3,373

   Income tax                        (667)   (354)   (297)   (90)      (557)

   Net income                       7,261   1,503   2,634  1,990      2,816

   Net income per ordinary share:

   Basic                             0.25    0.05    0.09   0.07       0.10

   Diluted                           0.24    0.05    0.09   0.07       0.09

   Weighted average number of
   ordinary shares outstanding:

   Basic                           29,561  29,253  29,705 29,263     29,259

   Diluted                         30,012  30,002  29,998 30,031     30,360



 

Camtek Ltd.
Reconciliation of GAAP To Non-GAAP results
(In thousands, except share data)

   


                                Nine Months     Three Months   Year ended
                                   ended           ended        December
                                September 30,    September 30,     31,
                                2011    2010     2011    2010     2010
                                U.S. dollars    U.S. dollars      U.S.
                                                                 dollars
  Reported net income
  attributable to Camtek Ltd.
  on GAAP basis                 7,261   1,503   2,634   1,990    2,816
  Acquisition of Sela and
  Printar related expenses (1)  1,732   1,707     594     434    2,093
  Inventory write -downs            -       -       -       -      159
  Share-based compensation        361     123     126      41      155
  Restructuring expenses (2)        -     357       -      92      544
  Non-GAAP net income           9,354   3,690   3,354   2,557    5,767

  Non-GAAP net income per
  share , basic and diluted      0.31    0.12    0.11    0.09     0.19

  Gross margin on GAAP basis     45.8%   42.9%   45.5%   45.6%    43.8%

  Reported gross profit on GAAP
  basis                        39,342  26,732  13,509  10,896   38,419
  Acquisition of Sela and
  Printar related expenses (1)    239     571      79      54      731
  Inventory write off               -       -       -       -      159
  Share-based compensation         82       -      29       -        -
  Non-GAAP gross margin          46.2%   43.8%   45.9%   45.8%    44.8%
  Non-GAAP gross profit        39,663  27,303  13,617  10,950   39,309
 
  Reported operating income
  attributable to Camtek Ltd.
  on GAAP basis                 9,739   3,101   3,965   2,313    4,851
  Acquisition of Sela and
  Printar related expenses (1)   239      571      79      54      731
  Inventory write-downs           -         -       -       -      159
  Share-based compensation       361      123     126      41      155
  Restructuring expenses (2)       -      357       -      92      544
  Non-GAAP operating income    10,339   4,152   4,170   2,500    6,440



 

1. During the three and nine months ended September 30, 2011 and 2010 and the twelve months ended December 31, 2010, the Company recorded acquisition expenses of $0.6 million, $1.7 million, $0.4 million, $1.7 million and $2.1 million, respectively, consisting of: (1) inventory written-up to fair value in purchase accounting charges of $0 million, $0 million, $0 million, $0.4 million and $0.4 million, respectively. These amounts are recorded under cost of revenues line item. (2) Revaluation adjustments of $0.5 million, $1.5 million, $0.4 million, $1.1 million and $1.4 million, respectively, of contingent consideration and certain future liabilities recorded at fair value. These amounts are recorded under finance expenses line item and (3) $0.07 million, $0.21 million, $0.05 million, $0.15 million and $0.3 million, respectively, with respect to amortization of intangible assets acquired recorded under cost of revenues line item.

2. The Company has entered into a Memorandum of Understanding with a Belgian company, according to which, commencing June 2010, this company began to distribute the Company's products for the PCB industry in Europe, subject to and in accordance with terms and conditions referred to in the agreement. Therefore, the Company implemented a restructuring plan in its Belgium subsidiary which includes mainly a reduction in workforce and recorded $0.3 million as restructuring expenses under selling, general and administrative expenses line item.

During the three months ended September 30, 2010 and twelve months ended December 31, 2010 the Company recorded $0.1 million and $0.28 million, respectively, of restructuring expense with respect to reorganization in its subsidiaries in China.

CAMTEK LTD.
Mira Rosenzweig, CFO
Tel: +972-4-604-8308
Mobile: +972-54-9050703
mirar@camtek.co.il

INTERNATIONAL INVESTOR RELATIONS  
CCG Investor Relations
Ehud Helft / Kenny Green
Tel: (US) +1-646-201-9246
camtek@ccgisrael.com

.


 

SOURCE Camtek Ltd




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