2014

Camtek Announces Record Full Year 2011 Results 22% year over year growth in revenue, strong annual operating cash flow of $9.8 million

MIGDAL HAEMEK, Israel, February 21, 2012 /PRNewswire/ --

Camtek Ltd. (NASDAQ and TASE: CAMT), today announced its financial results for the full year and fourth quarter ended December 31, 2011.

Highlights of the Full Year 2011

  • Revenues of $107 million;
  • Non-GAAP net income of $8.8 million; GAAP net income of $5.4 million;
  • Non-GAAP operating income of $10.5 million; GAAP operating income of $9.0 million
  • Positive operating cash flow of $9.8 million in the year

Highlights of the Fourth Quarter 2011

  • Revenues of $21.1 million;
  • Non-GAAP operating income of $0.1 million; GAAP operating loss of $0.7 million
  • Non-GAAP net loss of $0.5 million; GAAP net loss of $1.9 million;
  • Positive operating cash flow of $8.2 million in the quarter

Results for the three-month period and full year ended December 31, 2011 on a non-GAAP basis, exclude the following items: (i) amortization of acquired intangible assets and revaluation of liabilities with respect to the acquisitions of Sela and Printar; (ii) share based compensation expenses; (iii) write off of inventory primarily related to a discontinued product lines. A reconciliation between the GAAP and non-GAAP results appears in the tables at the end of this press release.

Roy Porat, Camtek's Chief Executive Officer, commented: "We are very pleased with our overall performance in 2011, presenting an all time record year on the top line. We maintained a strong market position in our two core product lines and saw growing market acceptance of our new growth engines."

Continued Mr. Porat, "Like our industry, our business has softened at the end of 2011 and the beginning of 2012. For the first quarter, we believe revenues will range between $17 and $19 million. Looking ahead, we are well positioned for resuming our growth once more positive market conditions return."

Fourth Quarter 2011 Financial Results

Revenues for the fourth quarter of 2011 were $21.1 million, a decrease of 17% compared to $25.4 million in the fourth quarter of 2010.

Gross profit on a GAAP basis in the quarter totaled $8.1 million (38.5% of revenues), compared with $11.7 million (46.0% of revenues) in the fourth quarter of 2010. Gross profit on a non-GAAP basis in the quarter totaled $8.9 million (42.1% of revenues), compared with $12.0 million (47.0% of revenues) in the fourth quarter of 2010.

Operating loss on a GAAP basis in the quarter was $0.7 million compared with an operating income of $1.8 million (6.9% of revenues) in the fourth quarter of 2010.  Non-GAAP operating income in the quarter was $0.1 million (0.5% of revenues) compared with an operating income of $2.1 million (8.4% of revenues) in the fourth quarter of 2010.

Net loss on a GAAP basis in the quarter totaled $1.8 million, or $0.06 per diluted share, compared to a net income of $1.3 million, or $0.04 per share in the fourth quarter of 2010. On a non-GAAP basis, net loss in the quarter was $0.5 million, or loss of $0.02 per share, compared with a net income of $1.9 million, or $0.06 per diluted share in the fourth quarter of 2010.

Full Year 2011 Results Summary

Revenues for 2011 were $107.0 million, an increase of 22% compared to $87.8 million, as reported in 2010.

Gross profit on a GAAP basis for 2011 was $47.5 million (44.3% of revenues) compared to gross profit of $38.4 million (43.7% of revenues) in 2010. Gross profit on a non-GAAP basis for 2011, was $48.6 million (45.4% of revenues), compared to $38.7 million (44.1% of revenues) in 2010.

Operating income on a GAAP basis for 2011, was $9.0 million (8.4% of revenues) compared to an operating income of $4.9 million (5.5% of revenues) in 2010. Non-GAAP operating income in 2011 was $10.5 million (9.8% of revenues) compared to an operating income of $5.7 million (8.4% of revenues) in 2010.

Net income on a GAAP basis for 2011 was $5.4 million compared to a net income of $2.8 million in 2010.  Net income on a non-GAAP basis for 2011 was $8.8 million, compared to a net income of $4.4 million in 2010.

Cash and cash equivalents and short-term deposits as of December 31, 2011 were $26.3 million ($19.5 million net of bank loans) compared with $14.8 million ($12.2 million net of bank loans), which included $5.2 million in restricted deposits, as of December 31, 2010. The company generated a positive operating cash flow of $8.2 million during the fourth quarter of 2011. For the year, the Company generated a positive operating cash flow of $9.8 million.

Conference Call

Camtek will host a conference call today, February 21, 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: 1-866-860-9642 at 10:00 am Eastern Time
Israel: 03-918-0685 at 5:00 pm Israel Time

International: +972-3-918-0685

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 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.

Consolidated Balance Sheets

(In thousands)

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


    Assets
    Current assets
    Cash and cash equivalents                              22,185        9,577
    Short term deposits                                     4,100            -
    Accounts receivable, net                               25,451       28,817
    Inventories                                            24,277       24,034
    Due from affiliates                                       619          384
    Other current assets                                    3,201        2,414
    Deferred tax asset                                         90           54
 
    Total current assets                                   79,923       65,280
 
    Fixed assets, net                                      14,577       15,077
 
    Long term inventory                                     1,954        2,304
    Restricted deposits *                                       -        5,182
    Deferred tax asset                                        152          152
    Other assets, net                                         460          460
    Intangible assets **                                    4,191        4,163
    Goodwill                                                3,653        3,653
 
                                                           10,410       15,914
 
    Total assets                                          104,910       96,271
 
    Liabilities and shareholders' equity
    Current liabilities
    Short term bank loans                                   3,000        1,409
    Long term bank loans - current portion                  1,700          433
    Accounts payable - trade                                7,052        9,761
    Other current liabilities                              21,536       21,408
 
    Total current liabilities                              33,288       33,011
 
    Long term liabilities
    Long term bank loans                                    2,092          758
    Liability for employee severance benefits                 652          626
    Other long term liabilities **                          8,945        7,884
                                                           11,689        9,268
 
    Total liabilities                                      44,977       42,279
 
    Commitments and contingencies
 
    Shareholders' equity
    Ordinary shares NIS 0.01 par value, authorized
    100,000,000 shares,
    issued 31,810,340 as of December 31, 2011 and
    31,370,359 as of December 31, 2010, outstanding
    29,717,964 as of December 31,
    2011 and 29,277,983 as of December 31, 2010               133          132
    Additional paid-in capital                             61,014       60,452
    Accumulated losses                                        684       (4,694)
                                                           61,831       55,890
    Treasury stock, at cost (2,092,376 as of December 31,
    2011
    and 2010)                                              (1,898)      (1,898)
 
    Total shareholders' equity                             59,933       53,992
 
    Total liabilities and shareholders' equity            104,910       96,271


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

(**)    Relates to Printar and SELA acquisitions

Camtek Ltd.

Consolidated Statements of Operations

(in thousands, except share data)

                                       Year ended    Three months ended
 
                                       December 31,      December 31,
                                       2011    2010     2011      2010
                                       U.S. dollars      U.S. dollars
 


    Revenues                            107,028  87,780  21,104  25,432
    Cost of revenues                     59,588  49,361  13,006  13,745
 
    Gross profit                         47,440  38,419   8,098  11,687
 
    Research and development costs       14,077  12,906   3,189   3,594
    Selling, general and administrative
    expenses                             24,341  20,662   5,626   6,343
 
                                         38,418  33,568   8,815   9,937
 
    Operating profit (loss)               9,022   4,851    (717)  1,750
 
    Financial expenses, net              (2,900) (1,478) (1,089)   (234)
 
    Income (loss) before income taxes     6,122   3,373  (1,806)  1,516
 
    Income tax                             (744)   (557)    (77)   (203)
 
    Net income (loss)                     5,378   2,816  (1,883)  1,313
 
    Net income (loss) per ordinary
    share:
 
    Basic                                  0.18    0.10   (0.06)   0.04
 
    Diluted                                0.18    0.09   (0.06)   0.04
 
    Weighted average number of ordinary
    shares outstanding:
 
    Basic                                29,599  29,259  29,712  29,278
 
    Diluted                              30,007  30,360  29,992  29,991
 


Camtek Ltd.

Reconciliation of GAAP To Non-GAAP results

(In thousands, except share data)

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


    Reported net income (loss)
    attributable to Camtek Ltd. on
    GAAP basis
                                      5,378  2,816   (1,883)   1,313
    Acquisition of Sela and Printar
    related expenses (1)              2,377  2,093      645      386
    Inventory write -downs              685    159      685      159
    Share-based compensation            416    155       55       32
    Restructuring expenses (2)            -    544        -      187
    Non-GAAP net income (loss)        8,856  5,767     (498)   2,077
 
    Non -GAAP net income (loss) per
    share , basic and diluted
                                       0.30   0.19    (0.02)    0.07
    Gross margin on GAAP basis
 
    Reported gross profit on GAAP      44.3%  43.8%    38.4%    46.0%
    basis
                                     47,440 38,419    8,098   11,687
    Acquisition of Sela and Printar
    related expenses ( 1)               331    731       92      160
    Inventory write off                 685    159      685      159
    Share-based compensation             97      -       14        -
    Non- GAAP gross margin             45.4%  44.8%    42.1%    47.2%
    Non-GAAP gross profit            48,553 39,309    8,889   12,006
 
    Reported operating income (loss)
    attributable to Camtek Ltd. on
    GAAP basis                        9,022  4,851     (717)   1,750
    Acquisition of Sela and Printar
    related expenses (1)                331    731       92      160
                                     
    Inventory write- downs              685    159      685      159
                                     
    Share-based compensation            416    155       55       32
                                      
    Restructuring expenses (2)            -    544        -      186
                                      
    Non-GAAP operating income        10,454  6,440      115    2,287
 



1. During the three and twelve months ended December 31, 2011 and 2010, the Company recorded acquisition expenses of $0.6 million, $2.4 million, $0.4 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 and $0.4 million, respectively. These amounts are recorded under cost of revenues line item. (2) Revaluation adjustments of $0.6 million, $2.0 million, $0.2 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) $0.09 million, $0.31 million, $0.16 million and $0.3 million, respectively, with respect to amortization of intangible assets acquired recorded under cost of revenues line item.


2. During the three and twelve months ended December 31, 2011 and 2010, the Company recorded inventory write down in the amount of $0.7 million, $0.7 million,  $0.16 million and $0.16 million, respectively.


3. 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 and twelve months ended December 31, 2010 the Company recorded $0.18 million and $0.28 million, respectively, of restructuring expense with respect to reorganization in its subsidiaries in China.

CAMTEK LTD.

Moshe Eisenberg, CFO
Tel: +972-4-604-8308
Mobile: +972-54-900-7100
moshee@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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