Camtek Announces Fourth Quarter and Full Year 2009 Results
MIGDAL HAEMEK, Israel, March 8, 2010 /PRNewswire-FirstCall/ --
- Continued Improvement in Revenues
- 39% Year-Over-Year Revenue Increase
- Surpasses Non-GAAP Breakeven In Fourth Quarter 2009
Camtek Ltd. (NASDAQ and TASE: CAMT), today announced its financial results for the fourth quarter and year ended December 31, 2009.
Main Quarterly Financial Highlights
- Sequential revenue increase of 19% in fourth quarter and
year-over-year increase in fourth quarter of 39% to $17.2 million.
- Reached profitability on non-GAAP basis: non-GAAP operating
income of $0.8 million and non-GAAP net income of $0.5 million.
- GAAP operating loss of $3.2 million and GAAP net loss of $4
million.
- Cash and cash equivalents balance increased by $2 million
during the quarter, ending the year with net cash of $15.8 million.
Results on a non-GAAP basis, exclude the following items: (i) Expenses with respect to the acquisition of SELA and Printar; (ii) certain inventory write-down; and (iii) share based compensation expenses. A reconciliation between the GAAP and non-GAAP results appears in the tables at the end of this press release.
Fourth Quarter Financial Results
Revenues for the fourth quarter of 2009 increased 39% to $17.2 million, compared to $12.4 million in the fourth quarter of 2008. Revenues were also stronger sequentially, increasing by 19% compared with $14.5 million in the third quarter of 2009.
Gross profit on a GAAP basis for the fourth quarter was $3.7 million (22% of revenues), compared to gross profit of $3.0 million (24% of revenue) in the fourth quarter of 2008. On a non-GAAP basis, gross profit for the fourth quarter of 2009 totaled $7.3 million (43% of revenues).
During the fourth quarter of 2009, the Company recorded an inventory write-down of $3.2 million consisting of (i) $2.6 million due to a strategic decision by the Company to discontinue certain old products ; and (ii) $0.6 million resulting from a write down of software purchased from a former single source supplier which has been replaced by internally developed software, compared to $1.0 million inventory write down in the fourth quarter of 2008.
On a GAAP basis, the operating loss in the fourth quarter of 2009 was $3.2 million, compared to an operating loss of $5.6 million in the fourth quarter of 2008. Non-GAAP operating income for the fourth quarter of 2009 reached $0.8 million.
On a GAAP basis, net loss in the fourth quarter of 2009 was $4.0 million, or a loss of $0.14 per share, compared to a net loss of $5.5 million, or a loss of $0.19 per share, in the fourth quarter of 2008. Non-GAAP net income for the fourth quarter of 2009 totaled $0.5 million, or $0.02 per share.
Cash and cash equivalents as of December 31, 2009, increased by $2 million in the quarter and totaled $15.8 million compared to $13.8 million at the end of the prior quarter. The increase in cash during the quarter resulted primarily from a decrease in inventory, an increase in revenues and improved collections.
Full Year 2009 Results Summary
Revenues for the full year of 2009 were $53.5 million, compared to $75.5 million reported in 2008. Gross profit on a GAAP basis for 2009 was $17.5 million (33% of revenues), compared to $27.8 million (37% of revenues) in 2008. Gross profit on a non-GAAP basis in 2009, was $21.1 million (39% from revenues).
On a GAAP basis, the operating loss in 2009 was $10.5 million, compared to an operating loss of $9.8 million in 2008. Non-GAAP operating loss in 2009 was $6.4 million.
On a GAAP basis, operating loss in 2009 includes an inventory write-down of $4.2 million consisting of the above mentioned write downs items and additional $1.0 million of other inventory write-off which was not excluded in the non-GAAP figures, compared to a $4.1 million inventory write down in 2008.
Net loss on a GAAP basis for 2009 was $11.8 million, compared to a net loss of $9.6 million for 2008. Net loss on a non-GAAP basis for 2009, was $7.1 million.
Cash and cash equivalents as of December 31, 2009, decreased by $0.1 million from $15.9 million at December 31, 2008. During the year the company generated positive operating cash flow of $3.9 million and repaid loans in the amount of $3.6 million.
Roy Porat, Camtek's General Manager, commented, "This quarter we again strongly grew our top line and we achieved profit on a non-GAAP basis. Our tight expense control coupled with a continued increase in orders, has enabled us to end 2009 in a stronger position." Continued Mr. Porat, "As we move into 2010, our business is primed for growth. We are enjoying a recovery in the two industries that we operate in, particularly the semiconductor industry. Our expected new growth engines that we recently acquired, SELA and Printar, also represent significant potential for us and we are very excited with regard to their prospects as we move through 2010 and beyond. Looking ahead, we are cautiously optimistic. We are seeing a continued improvement in orders and we believe 2010 will be a stronger year for Camtek. For the first quarter, which is normally seasonally weak, we expect revenues of between $16-18 million. We also expect to increase our operating expenses in both sales and marketing as well as R&D, in order to capitalize on a number of current strategic opportunities for both our legacy businesses as well as our new growth engines. Our overall goal remains to build Camtek into a larger and more profitable business, by increasing our addressable markets by providing customers new products and offering that are synergetic with our overall business."
Conference Call
Camtek will host a conference call today, March 8, 2010, at 10:00 am ET. Roy Porat, General Manager of Camtek Israel and Mira Rosenzweig, 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 at least 10 minutes before the start of the call.
US: 1-888-668-9141 at 10:00 am Eastern Time
Israel: 03-918-0644 at 5:00 pm Israel Time
International: +972-3-918-0644
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.
With headquarters in Migdal Ha'Emek Israel, Camtek Ltd., designs, develops, manufactures, and markets automatic optical inspection systems and related products. Camtek's automatic inspection systems are used to enhance both production processes and yield for manufacturers in the printed circuit board industry, the high density interconnect substrate industry and the semiconductor manufacturing and packaging industry. 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, difficulties surrounding the timely development of our new products and their adoption by the market, increased competition in the industry, price reductions, litigation risks, 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 for net income and basic and diluted earnings per share 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 that enhances management's and investors' ability to evaluate the Company's net income and earnings per share and to compare it with historical net income and earnings per share.
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)
December 31,
2009 2008
U.S. Dollars (In
thousands)
Assets
Current assets
Cash and cash equivalents 15,802 15,949
Accounts receivable, net 18,712 18,156
Inventories 14,176 9,792
Due from affiliates 344 414
Other current assets 1,691 1,929
Deferred tax asset 39 39
Total current assets 50,764 46,279
Fixed assets
Cost 26,017 23,624
Less - Accumulated depreciation 10,623 7,976
Fixed assets, net 15,394 15,648
Long term inventory 4,661 21,653
Deferred tax asset 127 127
Other assets, net 460 453
Intangible assets (*) 9,017 575
14,265 22,808
Total assets 80,423 84,735
Liabilities and shareholders' equity
Current liabilities
Short term loan - 1,500
Accounts payable -trade 4,494 5,240
Due to affiliates - 294
Convertible loan - current portion 1,666 1,667
Other current liabilities 12,945 11,254
Total current liabilities 19,105 19,955
Long term liabilities
Convertible loan, net of current portion - 1,666
Liability for employee severance benefits 487 399
Other long term liabilities (*) 9,810 -
10,297 2,065
Total liabilities 29,402 22,020
Commitments and contingencies
Shareholders' equity
Ordinary shares NIS 0.01 par value,
authorized 100,000,000 shares,
issued 31,328,119 in 2009 and 31,227,484 in 2008,
outstanding
29,235,743 in 2009 and 29,135,108 in 2008 132 132
Additional paid-in capital 60,297 60,149
Retained earnings (accumulated losses) (7,510) 4,332
52,919 64,613
Treasury stock, at cost ( 2,092,376 in 2009
and in 2008) (1,898) (1,898)
Total shareholders' equity 51,021 62,715
Total liabilities and shareholders' equity 80,423 84,735
(*) mainly relate to Printar and SELA acquisitions based on preliminary study. Changes may occur upon completion of the final purchase price allocation study .
Consolidated Statements of Operations
(in thousands, except share data)
Year ended Three months ended
December 31, December 31,
2009 2008 2009 2008
U.S. dollars U.S. dollars
Revenues 53,521 75,463 17,222 12,399
Cost of revenues 36,039 47,615 13,489 9,386
Gross profit 17,482 27,848 3,733 3,013
Research and development costs 10,319 12,801 2,771 3,288
Selling, general and administrative
expenses 17,667 24,834 4,181 5,322
27,986 37,635 6,952 8,610
Operating loss (10,504) (9,787) (3,219) (5,597)
Financial income (expenses), net (952) 1,000 (599) 702
Loss before income taxes (11,456) (8,787) (3,818) (4,895)
Income tax (386) (770) (166) (570)
Net loss (11,842) (9,557) (3,984) (5,465)
Net loss per ordinary share:
Basic (0.40) (0.32) (0.14) (0.18)
Diluted (0.40) (0.32) (0.14) (0.18)
Weighted average number of ordinary
shares outstanding:
Basic 29,218 29,916 29,234 30,212
Diluted 29,218 29,916 29,234 30,212
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(in thousands, except share data)
Year ended Three months ended
December 31, December 31,
2009 2008 2009 2008
U.S. dollars U.S. dollars
Reported net loss attributable to
Camtek Ltd. on GAAP basis (11,842) (9,557) (3,984) (5,465)
Acquisition of Sela and Printar
related expenses(1) 1,264 - 1,164 -
Inventory write -downs (2)
3,213 - 3,213 -
Share-based compensation
148 271 - 67
Write off of Other assets 102 - 102 -
Non-GAAP net (loss) income (7,117) (9,286) 495 (5,397)
Gross margin on GAAP basis 33% 37% 22% 24%
Reported gross profit on GAAP basis 17,482 27,848 3,733 3,013
Inventory write off (2) 3,213 - 3,213 -
Non GAAP gross margin 39% 37% 43% 24%
Non-GAAP gross profit 21,093 27,848 7,343 3,013
Reported Operating loss attributable (10,504) (9,787) (3,219) (5,597)
to Camtek Ltd. on GAAP basis
Acquisition of Sela and Printar
related expenses(1) 678 - 678 -
Inventory write off (2)
3,213 - 3,213 -
Share-based compensation
148 271 - 67
Write off of Other assets 102 - 102 -
Non-GAAP Operating (loss) income (6,363) (9,516) 774 (5,530)
(1) During the twelve months and three months ended December 31, 2009, the Company recorded acquisition expenses of $1.3 million and 1.2 million, respectively, consisting of: (1) inventory written-up to fair value in purchase accounting charges of $0.4 million, for both periods . This amount recorded under cost of revenues line item. (2) Revaluation adjustments of $0.6 million and $0.5 million of contingent consideration and certain future liabilities recorded at fair value recorded under finance expenses line item (3) Restructuring expenses of $0.2 million related to the integration of the acquired operations, mainly the abandonment of certain rented properties, recorded under general and administrative expenses line item. (4) $0.1 million amortization of intangible assets acquired recorded under cost of revenues line item.
(2) In the fourth quarter of 2009 and during the year ended December 31, 2009 the company recorded inventory write downs in the amount of $2.6 million due to a strategic decision by the Company to discontinue certain old products and an additional amount of $0.6 million, for both periods from a write down of software purchased from a former single source supplier which has been replaced by internally developed software.
Contact Details:
CAMTEK
Mira Rosenzweig CFO
Tel: +972-4-604-8308
Fax: +972-4-604 8300
Mobile: +972-54-9050703
[email protected]
INVESTOR RELATIONS
CCG Investor Relations
Ehud Helft / Kenny Green
Tel: (US) +1-646-201-9246
[email protected]
SOURCE Camtek Ltd
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