Camtek Announces Second Quarter 2013 Results Revenues of $22.3 million growing 23% sequentially; operating income of $1 million

MIGDAL HAEMEK, Israel, Aug. 8, 2013 /PRNewswire/ -- Camtek Ltd. (NASDAQ and TASE: CAMT), today announced its financial results for the quarter ended June 30, 2013.

Highlights of the Second Quarter 2013

  • Revenues of $22.3 million - up 23% over first quarter 2013 revenues;
  • Non-GAAP operating income of $1.2 million; GAAP operating income of $1.0 million;
  • Non-GAAP net income of $1.0 million; GAAP net income of $0.3 million;
  • Positive operating cash flow of $1.1 million;

Roy Porat, Camtek's Chief Executive Officer, commented, "We are very pleased with our second quarter results, with sequential revenue growth of 23% and non-GAAP operating income of $1.2 million. Camtek's revenue model balances out the industry cyclicality by offering multiple products to the two markets in which we operate. Our Xact sample preparation product made an important contribution to the growth in this quarter's revenues."

Concluded Mr. Porat, "As we move into the second half of the year, similar to peers in our industry, we are seeing a pause with some push outs in expected orders. The general atmosphere, while cautious, remains positive, with expectations of growth in the latter part of the year and next year. Subsequently, for the third quarter we are expecting revenues sequentially slightly lower at a range between $19-21 million. Taking a broader perspective, I believe Camtek is well positioned to take advantage of the cyclical markets in which we operate, with both our legacy inspection products as well as the new products coming into play."

Second Quarter 2013 Financial Results

Revenues for the second quarter of 2013 were $22.3 million. This is a 23% improvement from prior quarter revenues of $18.1 million and an 11% decrease from the second quarter of 2012.

Gross profit on a GAAP basis in the quarter totaled $9.8 million (44.0% of revenues). This is a 20% improvement compared to $8.2 million (45.4% of revenues) in the prior quarter and a 19% decrease compared to $12.1 million in the second quarter of 2012 (48.2% of revenues). Gross profit on a non-GAAP basis in the quarter totaled $9.9 million (44.4% of revenues). This is a 20% improvement compared to $8.3 million (45.8% of revenues) in the prior quarter and a 19% decrease compared to $12.2 million (48.6% of revenues) in the second quarter of 2012.

Operating income on a GAAP basis in the quarter was $1.0 million (4.5% of revenues). This is compared to an operating loss of $0.2 million in the prior quarter and to operating income of $3.3 million in the second quarter of 2012 (13.0% of revenues).  Operating profit on a non-GAAP basis in the quarter was $1.2 million (5.4% of revenues). This is compared to an operating income of $0.1 million (0.4% of revenues) in the prior quarter and of $3.4 million (13.8% of revenues) in the second quarter of 2012. 

Net income on a GAAP basis in the quarter totaled $0.3 million or $0.01 per diluted share. This is compared to a net loss of $0.9 million or $0.03 per share in the prior quarter and to net income of $2.3 million or $0.08 per share in the second quarter of 2012.  Net income on a non-GAAP basis in the quarter was $1.0 million or $0.03 per diluted share. This is compared to a net loss of $0.2 million or $0.01 per share in the prior quarter and net income of $3.0 million or $0.10 per share in the second quarter of 2012.

Cash, cash equivalents and short-term deposits, net of bank loans as of June 30, 2013 were $17.6 million compared to $17.3 million as of March 31, 2013. The company generated $1.1 million from operating cash flow during the second quarter of 2013. In addition, the company used cash to repay $3.1 million of bank loans.

Conference Call

Camtek will host a conference call today, August 8, 2013, at 9:00 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 9:00 am Eastern Time

Israel:




03 918 0644




at 4:00 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.

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 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,



2013

2012



U.S. Dollars (In thousands)

Assets






Current assets



Cash and cash equivalents

12,680

18,867

Short-term deposits

7,660

7,160

Accounts receivable, net

27,993

23,076

Inventories

19,885

18,335

Due from affiliates

386

391

Other current assets

2,803

2,210

Deferred tax asset

367

367




Total current assets

71,774

70,406




Fixed assets, net

15,889

15,822




Long term inventory

4,548

7,090

Long-term deposit

729

729

Deferred tax asset

107

107

Other assets, net

304

304

Intangible assets, net *

2,845

2,971

Goodwill

1,579

1,579


10,112

12,780

Total assets

97,775

99,008




Liabilities and shareholders' equity



Current liabilities



Short term bank loans

1,500

4,160

Accounts payable – trade

11,206

7,610

Long term bank loans – current portion

1,075

1,592

Other current liabilities

12,552

13,850

Total current liabilities

26,333

27,212




Long term liabilities



Long term bank loans

167

500

Liability for employee severance benefits

736

710

Other long term liabilities *

10,445

10,249


11,348

11,459

Total liabilities

37,681

38,671




Commitments and contingencies






Shareholders' equity



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



32,138,251 issued as June 30, 2013 and 31,989,309 as of December 
     31, 2012, outstanding 30,045,875



as of June 30, 2013 and 29,896,933 as of December 31, 2012

133

133

Additional paid-in capital

61,703

61,415

Accumulated income

156

687


61,992

62,235

Treasury stock, at cost (2,092,376  as of June 30, 2013 and December 31, 2012)

(1,898)

(1,898)

Total shareholders' equity

60,094

60,337

Total liabilities and shareholders' equity

97,775

99,008






(*) Relates to Printar and SELA acquisitions




 

 

Camtek Ltd.

Consolidated Statements of Operations


(in thousands, except share data)






Six Months ended

June 30,

Three Months ended
June 30,

Year ended

December 31,


2013

2012

2013

2012

2012


U.S. dollars

U.S. dollars

U.S. dollars







Revenues

40,339

43,211

22,266

25,033

84,547

Cost of revenues

22,317

23,506

12,447

12,961

47,482







Gross profit

18,022

19,705

9,819

12,072

37,065













Research and development costs

7,208

6,645

3,558

3,320

12,916

Selling, general and administrative expenses

9,974

*10,923

5,268

*5,488

*21,138

Impairment charge in respect of goodwill and   other intangible assets

-

-

-

-

3,031








17,182

17,568

8,826

8,808

37,085













Operating income (loss)

840

2,137

993

3,264

(20)







Financial income (expenses), net

(1,078)

(986)

(512)

(854)

233







Income (loss) before income






 taxes

(238)

1,151

481

2,410

213







Income tax

(293)

(242)

(146)

(144)

(210)







Net income (loss)

(531)

909

335

2,266

3







Net income (loss) per ordinary share:












Basic

(0.02)

0.03

0.01

0.08

0.00







Diluted

(0.02)

0.03

0.01

0.08

0.00







Weighted average number of






  ordinary shares outstanding:












Basic

29,966

29,803

30,034

29,881

29,849







Diluted

29,971

30,003

30,044

30,013

30,013










(*) Including income of approximately 1 million dollars related to a settlement with a former service provider of the company.

 

 

Camtek Ltd.


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,


2013

2012

2013

2012

2012


U.S. dollars

U.S. dollars

U.S. dollars







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

 

(531)

909

335

2,266

3

Acquisition of Sela and Printar related expenses (1)

 

994

 

1,170

 

516

 

596

 

(434)

Inventory write –downs (2)

-

-

-

-

1,515

Impairment in respect of goodwill and
other intangible assets (3)

 

-

 

-

 

-

 

-

 

3,031

Share-based compensation

285

205

141

103

401

Shelf registration expenses

-

94

-

-

94

Non-GAAP net income

748

2,378

992

2,965

4,610







Non –GAAP net income  per share,
basic and diluted

0.03

0.08

0.03

0.10

0.15



















Gross margin on GAAP basis

44.7%

45.6%

44.1%

48.2%

43.8%

Reported gross profit on GAAP basis

18,022

19,705

9,819

12,072

37,065







Acquisition of Sela and Printar related expenses ( 1)

 

150

 

150

 

75

 

75

 

300

Inventory write-downs  (2)

-

-

-

-

1,515

Share-based compensation

27

50

21

25

97

Non- GAAP gross margin

45.1%

46.2%

44.4%

48.6%

46.1%

Non-GAAP gross profit

18,199

19,905

9,915

12,172

38,977







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

 

840

2,137

993

3,264

(20)







Acquisition of Sela and Printar related expenses (1)

 

150

 

150

 

75

 

75

 

300

Inventory write- downs (2)

-

-

-

-

1,515

Impairment charge in respect of goodwill and other intangible assets (3)

-

-

-

-

3,031

Share-based compensation

285

205

141

103

401

Shelf registration expenses

-

94

-

-

94

Non-GAAP operating income

1,275

2,586

1,209

3,442

5,361


(1) During the three and six months ended June 30, 2013 and 2012 and the twelve months ended December 31, 2012, the Company recorded acquisition expenses (income) of $0.5 million, $1.0 million, $0.6 million, $1.2 million and $(0.4) million, respectively, consisting of: (1) Revaluation adjustments of $0.4 million, $0.8 million, $0.5 million, $1.0 million and $(0.7) million, respectively, of contingent consideration and certain future liabilities recorded at fair value. These amounts are recorded under the finance expenses line item and (2) $0.07 million, $0.15 million, $0.07 million, $0.15 million and $0.3 million, respectively, with respect to amortization of intangible assets acquired recorded under the cost of revenues line item.


(2) During the three months and six months ended June 30, 2013 and 2012, and the twelve months ended December 31, 2012, the Company recorded inventory write downs in the amount of $0 million, $0 million, $0 million, $0 million, and $1.5 million, respectively.


(3) During the three months and six months ended June 30, 2013 and 2012, and the twelve months ended December 31, 2011, the Company recorded an impairment charge in respect of goodwill and other intangible assets in the amount of $0 million, $0 million, $0 million, $0 million, and $3.0 million, respectively.

 

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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