Camtek Announces Second Quarter 2015 Results

Q2 revenues of $25.4 million-17% sequential growth; Q3 revenue guidance of $25.5-27 million

Aug 03, 2015, 07:30 ET from Camtek Ltd.

MIGDAL HAEMEK, Israel, Aug. 3, 2015 /PRNewswire/ -- Camtek Ltd. (NASDAQ and TASE: CAMT), today announced its financial results for the quarter ended June 30, 2015.

Highlights of the Second Quarter 2015

  • Revenues of $25.4 million, up 17% sequentially and 10% year-over-year driven by sales in the advanced packaging semiconductor market;
  • Non-GAAP operating income of $1.2 million; GAAP operating income of $1.1 million;
  • Non-GAAP net income of $0.8 million; GAAP net income of $0.6 million;
  • Continued growth expected into Q3: guidance of $25.5 to 27 million;

Management Comment

Rafi Amit, Camtek's Chairman and CEO, commented, "We continue to see strength in our semiconductor sales, with important strategic orders of our system supporting advanced packaging and CMOS image sensor (CIS) applications into new and existing customers. These sales are driving the growth in our semiconductor business."

Continued Mr. Amit, "We are very pleased with the on-going feedback received from customers who are evaluating the Gryphon system. We recently launched a demo center in China to allow our Taiwanese and Chinese customers the opportunity to see in operation the next generation model, the Gryphon SL, which enables both legend and solder mask deposition. The Gryphon is a brand new and disruptive technology for the PCB industry, designed to replace current solder mask and legend deposition; as such, the sales process for Gryphon is extended and is taking longer than our normal sale cycle. In the coming months, we expect to install a number of additional systems at customers' sites in Asia and in the US. We believe that we will start recognizing revenues from the Gryphon in 2016."

"Our third quarter revenue guidance is $25.5-27 million. We are expecting Q3 to be stronger than Q2, based on the success at our existing customers and the penetration of new accounts, coupled with growth of our market segments.  We are on track for a strong year for our semiconductor sales in 2015 with expected double digit year-over-year growth." concluded Mr. Amit.

Second quarter 2015 Financial Results

Revenues for the second quarter of 2015 were $25.4 million. This compares to second quarter 2014 revenues of $23.1 million and first quarter 2015 revenues of $21.8 million.

Gross profit on a GAAP basis in the quarter totaled $10.9 million (42.7% of revenues), compared to $11.5 million (49.5% of revenues) in the second quarter 2014 and $9.8 million in the first quarter of 2015 (45.1% of revenues). The gross margin in the second quarter of last year was particularly high due to a specific high-margin sale in that quarter. In the second quarter of 2015, the gross margin was below the normal range due to less favorable product mix sold in the quarter. 

Gross profit on a non-GAAP basis in the quarter totaled $10.9 million (43.7% of revenues), compared to $11.5 million (49.5% of revenues) in the second quarter 2014 and $9.8 million in the first quarter of 2015 (45.2% of revenues).

Operating profit on a GAAP basis in the quarter totaled $1.1 million (4.3% of revenues), compared to $2.6 million (11.1% of revenues) in the second quarter 2014 and $1.1 million in the first quarter of 2015 (5.2% of revenues). General and administrative expenses were particularly high in the quarter due to some additional legal expenses which were incurred in in connection with ongoing patent litigation.

Operating profit on a non-GAAP basis in the quarter totaled $1.2 million (4.5% of revenues), compared to $2.6 million (11.5% of revenues) in the second quarter 2014 and $1.2 million in the first quarter of 2015 (5.5% of revenues).

Financial expenses on a GAAP basis in the quarter totaled $193 thousand, compared to $330 thousand in the second quarter 2014 and $847 thousand in the first quarter of 2015.

Financial expenses on a non-GAAP basis in the quarter totaled $75 thousand, compared to $124 thousand in the second quarter 2014 and $627 thousand in the first quarter of 2015.

Net income on a GAAP basis in the quarter totaled $647 thousand, or $0.02 per diluted share. This compares to net income of $2.0 million, or $0.07 per diluted share, in the second quarter 2014 and a net income of $52 thousand, or $0.00 per diluted share, in the first quarter of 2015. 

Net income on a non-GAAP basis in the quarter totaled $825 thousand, or $0.03 per diluted share. This compares to net income of $2.3 million, or $0.08 per diluted share, in the second quarter 2014 and a net income of $335 thousand, or $0.01 per diluted share, in the first quarter of 2015. 

Cash, cash equivalents, short and long-term restricted deposits, as of June 30, 2015 were $32.1 million (out of which $7.9 million are restricted deposits) compared to $21.9 million as of March 31, 2015. During the second quarter, the Company raised net cash in the amount of $12 million in a secondary public offering. Operating cash flow during the quarter was negative $2.0 million. This was as a result of investment in working capital to support the expected growth in sales.

Conference Call

Camtek will host a conference call today, August 3, 2015, at 9:00 am ET.

Rafi Amit, Chairman and CEO, 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:                                            1 888 668 9141          at 9:00 am Eastern Time
Israel:                                             03 918 0609          at 4:00 pm Israel Time
International:                        +972 3 918 0609

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, increasing products yield and reliability, 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 and functional 3D inkjet printing.

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,


2015

2014


U.S. Dollars (In thousands)

Assets



Current assets



Cash and cash equivalents

24,235

18,220

Short-term deposits

-

8,607

Trade accounts receivable, net

30,092

22,341

Inventories

28,387

24,650

Due from affiliated companies

343

501

Other current assets

3,204

2,382

Deferred tax asset

858

858




Total current assets

87,119

77,559




Fixed assets, net

12,731

13,025




Long term inventory

1,870

1,476

Long-term restricted deposit

7,875

729

Deferred tax asset

771

891

Other assets, net

348

348

Intangible assets, net

903

928

Goodwill

1,555

1,555





13,322

5,927




Total assets

113,172

96,511




Liabilities and shareholders' equity



Current liabilities



Trade accounts payable

12,661

9,490

Other current liabilities

17,216

16,279




Total current liabilities

29,877

25,769




Long term liabilities



Liability for employee severance benefits

779

860

Other long term liabilities

4,044

4,150


4,823

5,010




Total liabilities

34,700

30,779







Shareholders' equity



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



37,242,880 issued as of June 30, 2015 and 32,586,898 issued as of December 31, 2014, outstanding 35,150,504



as of June 30, 2015 and 30,494,522 as of December 31, 2014

148

134

Additional paid-in capital

75,492

63,465

Retained earnings

4,730

4,031


80,370

67,630

Treasury stock, at cost (2,092,376  as of June 30, 2015 and December 31, 2014)

(1,898)

(1,898)




Total shareholders' equity

78,472

65,732




Total liabilities and shareholders' equity

113,172

96,511

 

 

Consolidated Statements of Operations





(in thousands, except share data)









Six Months ended

 June 30,

Three Months

ended June 30,

Year ended

December 31,


2015

2014

2015

2014

2014


U.S. dollars

U.S. dollars

U.S. dollars

Revenues

47,162

45,270

25,412

23,161

88,313

Cost of revenues

26,488

23,672

14,557

11,693

47,294







Gross profit

20,674

21,598

10,855

11,468

41,019













Research and development costs

6,954

6,964

3,554

3,530

14,406

Selling, general and administrative expenses

11,489

10,900

6,208

5,374

21,417

Reorganization and impairment

-

-

-

-

60


18,443

 

17,864

9,762

 

8,904

 

35,883







Operating income

2,231

3,734

1,093

2,564

5,136







Financial expenses, net

(1,040)

(694)

(193)

(329)

(1,220)







Income before income






 taxes

1,191

3,040

900

2,235

3,916







Income tax

(492)

(389)

(253)

(223)

(579)







Net income

699

2,651

647

2,012

3,337







Net income per ordinary share:












Basic

0.02

0.09

0.02

0.07

0.11







Diluted

0.02

0.09

0.02

0.07

0.11







Weighted average number of






  ordinary shares outstanding:












Basic

31,518

30,447

32,530

30,467

30,464







Diluted

31.654

30,534

32,742

30,534

30,545

 

 

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,


2015

2014

2015

2014

2014


U.S. dollars

U.S. dollars

U.S. dollars







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

699

2,651

647

2,012

3,337

Acquisition of Sela and Printar related
expenses (1)

 

341

 

412

 

118

 

206

 

903

Share-based compensation

120

131

60

92

309







Non-GAAP net income

1,160

3,194

825

2,310

4,549







Non –GAAP net income  per share,
basic and diluted

0.04

0.10

0.03

0.08

0.15

Gross margin on GAAP basis

43.8%

47.7%

42.7%

49.5%

46.4%

Reported gross profit on GAAP basis

 

20,674

21,598

10,855

11,468

41,019

Acquisition of Sela and Printar related
expenses (1)

-

 

-

-

 

-

 

264

Share-based compensation

10

24

5

8

42

Non- GAAP gross margin

20,684

47.7%

10,860

49.5%

46.8%

Non-GAAP gross profit

43.9%

21,622

42.7%

11,476

41,325







Reported operating income attributable
to Camtek Ltd. on GAAP basis

 

 

2,231

 

 

3,734

 

 

1,093

 

 

2,564

 

 

5,136

Acquisition of Sela and Printar related
expenses (1)

 

-

 

-

 

-

 

-

 

264

Share-based compensation

 

120

123

60

84

309

Non-GAAP operating income

2,351

3,857

1,153

2,648

5,709

During the three and the six months ended June 30, 2015 and 2014 and the twelve months ended December 31, 2014, the Company recorded acquisition expenses of $0.1 million, $0.3 million, $0.2 million, $0.4 million and $0.9 million, respectively, consisting of: (1) Revaluation adjustments of $0.1 million, $0.3 million, $0.2 million, $0.4 million and $0.6 million, respectively, of contingent consideration and certain future liabilities recorded at fair value. These amounts are recorded under finance expenses line item; (2) Implication of re-organization and impairment charges of $0, $0, $0, $0 and $0.3 million, respectively.

CAMTEK LTD.

INTERNATIONAL INVESTOR RELATIONS  

Moshe Eisenberg, CFO

GK Investor Relations

Tel: +972 4 604 8308

Ehud Helft / Gavriel Frohwein

Mobile: +972 54 900 7100

Tel: (US) 1 646 688 3559

moshee@camtek.co.il

camtek@gkir.com

SOURCE Camtek Ltd.



RELATED LINKS

http://www.camtek.co.il