Camtek Announces First Quarter 2012 Results Q1 Revenue- within range, expecting over 30% revenue growth in the second quarter of 2012
MIGDAL HAEMEK, Israel, May 3, 2012 /PRNewswire/ --
Camtek Ltd. (NASDAQ and TASE: CAMT), today announced its financial results for the quarter ended March 31, 2012.
Highlights of the First Quarter 2012
- Revenues of $18.2 million;
- Non-GAAP operating loss of $0.9 million; GAAP operating loss of $1.1 million
- Non-GAAP net loss of $0.6 million; GAAP net loss of $1.4 million;
- Positive operating cash flow of $600 thousand in the quarter
- Second quarter revenue guidance of $23-25 million
Roy Porat, Camtek's Chief Executive Officer, commented, "As we move into the second quarter, we are seeing that the recovery already observed in the front-end last quarter finally reached the back-end part of the semiconductor capital equipment industry. We believe that as we move through the year this recovery will eventually extend to the PCB sector, which will further contribute to our growth this year."
Continued Mr. Porat, "I am pleased with the recent strong demand from the market for our products, which gives us confidence looking ahead, and this underlies our revenue guidance for the upcoming quarter. We believe revenues for the second quarter will range between $23-25 million, representing over 30% sequential growth, accordingly we expect the business to return to profitability."
First Quarter 2012 Financial Results
Revenues for the first quarter of 2012 were $18.2 million. This is a decrease of 34% compared to $27.5 million in the first quarter of 2011 and a decrease of 14% compared with $21.1 million in the prior quarter.
Gross profit on a GAAP basis in the quarter totaled $7.6 million (42.0% of revenues). This is compared with $12.8 million (46.5% of revenues) in the first quarter of 2011 and $8.1 million (38.4% of revenues) in the prior quarter.
Gross profit on a non-GAAP basis in the quarter totaled $7.7 million (42.5% of revenues). This is compared with $12.9 million (47.0% of revenues) in the first quarter of 2011 and $8.9 million (42.1% of revenues) in the prior quarter.
Operating loss on a GAAP basis in the quarter was $1.1 million. This is compared with an operating income of $2.9 million in the first quarter of 2011 and an operating loss of $0.7 million in the prior quarter.
On a non-GAAP basis, operating loss in the quarter was $0.9 million. This is compared with an operating income of $3.2 million in the first quarter of 2011 and an operating income of $0.1 million in the prior quarter.
Net loss on a GAAP basis in the quarter totaled $1.4 million, or $0.05 per share. This is compared with a net income of $2.4 million, or $0.08 per diluted share in the first quarter of 2011 and a net loss of 1.9 million, or $0.06 per share in the prior quarter.
On a non-GAAP basis, net loss in the quarter was $0.6 million, or loss of $0.02 per share. This is compared with a net income of $3.1 million, or $0.10 per diluted share in the first quarter of 2011 and a net loss of $0.5 million or loss of $0.02 per share in the prior quarter.
Cash and cash equivalents and short-term deposits as of March 31, 2012 were $26.0 million ($19.6 million net of bank loans) compared with $26.3 million ($19.5 million net of bank loans), as of December 31, 2011. The company generated a positive operating cash flow of $0.6 million during the first quarter of 2012.
Camtek will host a conference call today, May 3, 2012, at 10:00 am ET.
Roy Porat, Chief Executive Officer 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: 1-888-407-2553 at 10:00 am Eastern Time
Israel: 03-918-0609 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.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 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, adaptive ion milling (AIM) and digital material deposition (DMD). Camtek's solutions range from micro-to-nano by applying its technologies to the industries' specific requirements.
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 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
December March 31, 31, 2012 2011 U.S. Dollars (In thousands) Assets Current assets Cash and cash equivalents 21,668 22,185 Short-term deposits 4,300 4,100 Accounts receivable, net 26,046 25,451 Inventories 25,280 24,355 Due from affiliates 389 388 Other current assets 3,549 3,357 Deferred tax asset 110 110 Total current assets 81,342 79,946 Fixed assets, net 14,467 14,577 Long term inventory 2,608 1,954 Deferred tax asset 132 132 Other assets, net 304 304 Intangible assets, net * 4,165 4,191 Goodwill 3,653 3,653 10,862 10,234 Total assets 106,671 104,757 Liabilities and shareholders' equity Current liabilities Short term bank loans 3,000 3,000 Accounts payable - trade 10,949 6,773 Long term bank loans - current portion 1,700 1,700 Due to affiliates 435 - Other current liabilities 20,659 21,568 Total current liabilities 36,743 33,041 Long term liabilities Long term bank loans 1,667 2,092 Liability for employee severance benefits 711 652 Other long term liabilities * 8,871 9,039 11,249 11,783 Total liabilities 47,992 44,824 Commitments and contingencies Shareholders' equity Ordinary shares NIS 0.01 par value, authorized 100,000,000 shares, 31,819,481 issued as March 31, 2012 and 31,810,340 as of December 31, 2011, outstanding 29,727,105 as of March 31, 2012 and 29,717,964 as of December 31, 2011 133 133 Additional paid-in capital 61,117 61,014 Retained earnings (accumulated losses) (673) 684 60,577 61,831 Treasury stock, at cost (2,092,376 as of March 31, 2012 and December 31, 2011) (1,898) (1,898) Total shareholders' equity 58,679 59,933 Total liabilities and shareholders' equity 106,671 104,757
(*) Relates to Printar and SELA acquisitions
Consolidated Statements of Operations
(in thousands, except share data)
Three months ended Year ended March 31, December 31, 2012 2011 2011 U.S. dollars Revenues 18,178 27,470 107,028 Cost of revenues 10,545 14,663 59,588 Gross profit 7,633 12,807 47,440 Research and development costs 3,325 3,779 14,077 Selling, general and administrative expenses 5,435 6,063 24,341 8,760 9,842 38,418 Operating income (loss) (1,127) 2,965 9,022 Financial expenses, net (132) (408) (2,900) Income (loss) before income taxes (1,259) 2,557 6,122 Income tax (98) (136) (744) Net income (loss) (1,357) 2,421 5,378 Earnings (loss) per ordinary share: Basic (0.05) 0.08 0.18 Diluted (0.05) 0.08 0.18 Weighted average number of ordinary shares outstanding: Basic 29,727 29,300 29,577 Diluted 29,727 30,112 30,009
Reconciliation of GAAP to Non-GAAP results
(In thousands, except share data)
Three months ended Year ended March 31, December 31, 2012 2011 2011 U.S. dollars U.S. dollars Reported net income (loss) attributable to Camtek Ltd. on GAAP basis (1,357) 2,421 5,378 Acquisition of Sela and Printar related expenses (1) 574 563 2,377 Inventory write -downs (2) - - 685 Share-based compensation 102 109 416 Shelf registration expenses 94 - - Non-GAAP net income (loss) (587) 3,093 8,856 Non -GAAP net income (loss) per share , basic and diluted (0.02) 0.10 0.30 Gross margin on GAAP basis Reported gross profit on GAAP 42.0% 46.6% 44.3% basis 7,633 12,807 47,440 Acquisition of Sela and Printar related expenses ( 1) 75 563 331 Inventory write off (2) - - 685 Share-based compensation 25 - 97 Non- GAAP gross margin 42.5% 47.0% 45.4% Non-GAAP gross profit 7,733 12,910 48,553 Reported operating income (loss) attributable to Camtek Ltd. on GAAP basis (1,127) 2,965 9,022 Acquisition of Sela and Printar related expenses (1) 169 80 331 Inventory write- downs (2) - - 685 Share-based compensation 102 109 416 Non-GAAP operating income (loss) (858) 3,154 10,454
1. During the three months ended March 31, 2012 and 2011, and the twelve months ended December 31, 2011, the Company recorded acquisition expenses of $0.6 million, $0.6 million, and $2.4 million, respectively, consisting of: (1) Revaluation adjustments of $0.5 million, $0.5 million, and $2.0 million, respectively, of contingent consideration and certain future liabilities recorded at fair value. These amounts are recorded under finance expenses line item and (2) $0.08 million, $0.08 million, and $0.33 million, respectively, with respect to amortization of intangible assets acquired recorded under cost of revenues line item.
2. During the three months ended March 31, 2012 and 2011, and the twelve months ended December 31, 2011, the Company recorded inventory write down in the amount of $0 million, $0 million, and $0.7 million, respectively.
Moshe Eisenberg, CFO
INTERNATIONAL INVESTOR RELATIONS
CCG Investor Relations
Ehud Helft / Kenny Green
Tel: (US) +1-646-201-9246
SOURCE Camtek Ltd