MIGDAL HAEMEK, Israel, November 11 /PRNewswire-FirstCall/ --

- 16% Sequential Revenue Increase From Second Quarter 2009;

- 45% Sequential Increase in Gross Profit

Camtek Ltd. (NASDAQ and TASE: CAMT), today announced its financial results for the third quarter ended September 30, 2009.

    Main Financial Highlights:

    - Gross margin increased to 42%, up from 34% in second quarter 2009
    - Operating and net loss narrowed substantially compared to prior quarter
    - Cash and cash equivalents balance increase $1.8 million
      during the quarter

Third Quarter Financial Results:

Revenues for the third quarter of 2009 increased 16% to $14.5 million, compared to $12.5 million in the second quarter of 2009. Revenues in the third quarter last year totaled $19.1 million.

Gross profit for the third quarter totaled $6.1 million, a 45% increase compared to the $4.2 million gross profit in the second quarter of 2009. Gross profit for the third quarter of 2008 totaled $6.5 million. Gross margin for the third quarter of 2009 totaled 42%, compared to 34% in the second quarter of 2009 and 34% in the third quarter of 2008. The higher gross margin in the third quarter resulted from a more favorable product and service mix as compared to the prior quarter. Gross margin for the third quarter of 2008 included an inventory write-off of $1.5 million compared to a $0.5 million write-off this quarter.

Operating loss for the third quarter of 2009 narrowed substantially to $180 thousand, compared to the $2.1 million operating loss in the prior quarter. Operating loss in the third quarter of 2008 totaled $3.8 million.

Net loss for the third quarter of 2009 totaled $0.33 million, or $0.01 per share, compared to $2.1 million, or $0.07 per share in the prior quarter. Net loss for the third quarter last year totaled $4.1 million, or $0.14 per share.

Cash and cash equivalents at September 30, 2009, totaled $13.8 million compared to $12 million at June 30, 2009. The increase in cash during the quarter resulted primarily from a decrease in inventory levels and from improved customer collections.

Rafi Amit, Camtek's CEO, commented on the results and the quarter: "This quarter we continued to improve our results, as we return to generating long term growth. In this quarter we witnessed an increase in revenues both in the Printed Circuit Board and semiconductor optical inspection markets , driven by increased order generation, contributing to a higher gross profit and a narrowing of both our operating and net loss. Furthermore our prudent expense management and more favorable product mix enabled us to further expand margins to our historic range. Our very tight rein on expenses also enabled us to increase our cash balance during the quarter, ending the quarter with close to $14 million in cash. Looking ahead, as we enter the fourth quarter and near 2010, we are cautiously optimistic, witnessing increasingly positive indications from customers, primarily in the Asia region. We continue to steadily invest in R&D with a view to growing and expanding our standing in each of our primary markets, as well as to introduce new innovative products. We estimate that revenues in the fourth quarter will be $15 to $17 million."

Conference Call

Camtek will host a conference call today, November 11, at 10:00 am EDT. Roy Porat, General Manager 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, referencing the "Camtek third quarter 2009 results conference call".

    US:              +1-888-668-9141 at 10:00 am Eastern Time
    Israel:          +972-03-918-0650 at 5:00 pm Israel Time
    International:   +972-3-918-0650

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.

    Camtek Ltd.
    Consolidated Balance Sheets
    (In thousands)
                                                           Sep 30, December
                                                             2009  31, 2008
                                                           U.S. Dollars (In
                                                               thousands)
    Assets

    Current assets
    Cash and cash equivalents                                13,801  15,949
    Accounts receivable, net                                 16,484  18,156
    Inventories                                              14,334   9,792
    Due from affiliates                                         408     414
    Other current assets                                      1,572   1,929
    Deferred tax asset                                           39      39

    Total current assets                                     46,638  46,279

    Fixed assets, net                                        15,753  15,648

    Long term inventory                                       8,058  21,653
    Deferred tax asset                                          127     127
    Other assets, net (*)                                     4,802   1,028

                                                             12,987  22,808

    Total assets                                             75,378  84,735

    Liabilities and shareholder's equity

    Current liabilities
    Short term loan                                               -   1,500
    Accounts payable trade                                    3,424   5,240
    Due to affiliates                                             -     294
    Convertible loan - current portion                        1,666   1,667
    Other current liabilities                                10,967  11,382

    Total current liabilities                                16,057  20,083

    Long term liabilities
    Convertible loan net of current portion                       -   1,666
    Other long term liabilities (*)                           4,026       -
    Liability for employee severance benefits                   275     271

    Total liabilities                                        20,358  22,020

    Commitments and contingencies

    Shareholders' equity
    Ordinary shares NIS 0.01 par value, authorized
    100,000,000 shares,
    issued 31,227,484 in 2008 and 31,279,027 in 2009,
    outstanding
    29,135,108 in 2008 and 29,186,651 in 2009.                  132     132
    Additional paid-in capital                               60,312  60,149
    Retained earnings (losses)                               (3,526)  4,332
                                                             56,918  64,613
    Treasury stock, at cost (2,092,376 shares in 2008 and    (1,898) (1,898)
    2009)

    Total shareholders' equity                               55,020  62,715

    Total liabilities and shareholders' equity               75,378  84,735

    (*) The increase relates to Printar acquisition


    Camtek Ltd.
    Consolidated Statements of Operations
    (In thousands, except share data)
                                                                       Year
                                         Nine Months   Three Months   ended
                                            ended         ended      December
                                         September 30, September 30,   31,
                                         2009    2008   2009    2008  2008
                                           U.S. dollars    U.S. dollars

    Revenues                           36,299  63,064 14,500  19,119  75,463
    Cost of revenues                   22,550  38,229  8,404  12,580  47,615

    Gross profit                       13,749  24,835  6,096   6,539  27,848

    Research and development costs      7,548   9,513  2,651   3,173  12,801
    Selling, general and
    administrative
    expenses                           13,486  19,512  3,623   7,183  24,834

                                       21,034  29,025  6,274  10,356  37,635

    Operating loss                     (7,285) (4,190)  (178) (3,817) (9,787)

    Financial income (expenses), net     (353)    298    (72)   (224)  1,000

    Income (loss) before income
    taxes                              (7,638) (3,892)  (250) (4,041) (8,787)

    Income tax                           (220)   (200)   (75)    (46)   (770)

    Net loss                           (7,858) (4,092)  (325) (4,087) (9,557)

    Net loss per ordinary share:

    Basic                               (0.27)  (0.14) (0.01)  (0.14)  (0.32)

    Diluted                             (0.27)  (0.14) (0.01)  (0.14)  (0.32)

    Weighted average number of
    ordinary shares outstanding:

    Basic                              29,210  30,190 29,218  30,076  29,916

    Diluted                            29,210  30,190 29,218  30,076  29,916

    Contact Details
    CAMTEK
    Mira Rosenzweig CFO
    Tel: +972-4-604-8308
    Fax: +972-4-604-8300
    Mobile: +972-54-9050703
    mirar@camtek.co.il

    IR INTERNATIONAL
    GK International IR
    Ehud Helft / Kenny Green
    Tel: (US) +1-646-201-9246
    info@gkir.com

SOURCE Camtek Ltd

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