2014

Camtek Announces Third Quarter 2012 Results $3.3 Million Non-GAAP Operating Income; Highest Net Margin in Six Years

MIGDAL HAEMEK, Israel, November 15, 2012 /PRNewswire/ --

Camtek Ltd. (NASDAQ and TASE: CAMT), today announced its financial results for the quarter ended September 30, 2012.

Highlights of the Third Quarter 2012

  • Revenues of $23.7 million;
  • Non-GAAP operating income of $3.3 million; GAAP operating income of $3.1 million;
  • Non-GAAP net income of $3.1 million; GAAP net income of $2.4 million;
  • Non-GAAP operating margin of 14.0% and non-GAAP net margin of 13.0%, at the highest levels since 2006; and
  • Positive operating cash flow of $3.8 million and quarter-end cash, cash equivalents and short-term deposits at $25.3 million.

Roy Porat, Camtek's Chief Executive Officer, commented, "We are very pleased with our third quarter results, showing revenues coming in as expected, with high operating and net margins - in line with our long-term target business model. We believe our current strong results are a good indication of our longer term potential, despite the recent weakness that we have seen in our end-markets."

Continued Mr. Porat, "Given the global macroeconomic concerns, our industry as a whole sees increased uncertainty ahead, particularly in the semiconductor segment and we see cautious purchase patterns from our customers. Hence, for the fourth quarter we expect revenues to come in between $15-18 million.  In order to address this, we are taking steps to reduce our cost base and breakeven point."

Third Quarter 2012 Financial Results

Revenues for the third quarter of 2012 were $23.7 million. This is a decrease of 20% compared to $29.7 million in the third quarter of 2011 and a decrease of 5% compared with $25.0 million in the prior quarter. These trends are mainly attributable to the overall market condition.

Gross profit on a GAAP basis in the quarter totaled $11.4 million (48.1% of revenues). This is compared with $13.5 million (45.5% of revenues) in the third quarter of 2011 and $12.1 million (48.2% of revenues) in the prior quarter.

Gross profit on a non-GAAP basis in the quarter totaled $11.5 million (48.5% of revenues). This is compared with $13.6 million (45.9% of revenues) in the third quarter of 2011 and $12.2 million (48.6% of revenues) in the prior quarter.

Operating income on a GAAP basis in the quarter was $3.1 million (13.2% of revenues). This is compared with operating income of $4.0 million (13.4% of revenues) in the third quarter of 2011 and operating income of $3.3 million (13.0% of revenues) in the prior quarter.  

Operating income on a non-GAAP basis in the quarter was $3.3 million (14.0% of revenues). This is compared to non-GAAP operating income of $4.1 million (14.1% of revenues) in the third quarter of 2011 and operating income of $3.4 million (13.8% of revenues) in the prior quarter.

Net income on a GAAP basis in the quarter totaled $2.4 million (10.0% of revenues), or $0.08 per diluted share. This is compared with a net income of $2.6 million (8.9% of revenues), or $0.09 per diluted share in the third quarter of 2011 and net income $2.3 million (9.1% of revenues), or $0.08 per share in the prior quarter.

Net income on a non-GAAP basis, in the quarter was $3.1 million (13.0% of revenues), or $0.10 per diluted share. This is compared with net income of $3.4 million (11.0% of revenues), or $0.09 per diluted share in the third quarter of 2011 and net income of $3.0 million (11.9% of revenues) or $0.10 per share in the prior quarter.

Cash and cash equivalents and short-term deposits as of September 30, 2012 were $25.3 million ($18.6 million net of bank loans) compared with $21.6 million ($15.7 million net of bank loans), as of June 30, 2012. The company reported a positive operating cash flow of $3.8 million.

Conference Call

Camtek will host a conference call today, November 15, 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:            1-888-668-9141    at 10:00 am Eastern Time
Israel:    03-918-0609    at 5:00 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 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 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)

   
                                                 September    December 31,                 
                                                      2012            2011
                                        
                                               U.S. Dollars (in thousands)
    Assets
 
    Current assets
    Cash and cash equivalents                        19,155        22,185
    Short-term deposits                               6,160         4,100
    Accounts receivable, net                         27,085        25,451
    Inventories                                      26,714        24,355
    Due from affiliates                                 617           388
    Other current assets                              4,321         3,357
    Deferred tax asset                                  110           110
 
    Total current assets                             84,162        79,946
 
    Fixed assets, net                                14,273        14,577
 
    Long term inventory                               2,711         1,954
    Deferred tax asset                                  132           132
    Other assets, net                                   304           304
    Intangible assets, net *                          4,052         4,191
    Goodwill                                          3,653         3,653
 
                                                     10,852        10,234
 
    Total assets                                    109,287       104,757
 
    Liabilities and shareholders' equity
 
    Current liabilities
    Short term bank loans                             4,160         3,000
    Accounts payable - trade                         10,967         6,773
    Long term bank loans - current portion            1,700         1,700
    Other current liabilities                        18,361        21,568
 
    Total current liabilities                        35,188        33,041
 
    Long term liabilities
    Long term bank loans                                817         2,092
    Liability for employee severance benefits           686           652
    Other long term liabilities *                     9,071         9,039
                                                     10,574        11,783
 
    Total liabilities                                45,762        44,824
 
    Commitments and contingencies
 
    Shareholders' equity
    Ordinary shares NIS 0.01 par value,
 
    authorized 100,000,000 shares,
    31,986,005 issued as September 30, 2012
 
    and 31,810,340 as of December 31, 2011,
 
    outstanding 29,893,629 as of September 30,
    2012 and 29,717,964 as of December 31l 2011         133          133
    Additional paid-in capital                       61,323       61,014
    Accumulated income                                3,967          684
                                                     65,423       61,831
    Treasury stock, at cost (2,092,376
 
    as of September 30, 2012
 
    and December 31, 2011)                          (1,898)      (1,898)
 
    Total shareholders' equity                       63,525       59,933
 
    Total liabilities and shareholders' equity      109,287      104,757



  (*)  Relates to Printar and SELA acquisitions


Consolidated Statements of Operations

(in thousands, except share data)

   
                                Nine Months      Three Months     Year ended
                                   ended             ended         
                               September 30,     September 30,   December 31  
                               2012     2011      2012    2011          2011
                                      
                         
                                      (all figures in  U.S. dollars)  
 


   
    Revenues                 66,928   85,924    23,717  29,676      107,028              
    Cost of revenues         35,815   46,582    12,309  16,167       59,588
 
    Gross profit             31,113   39,342    11,408  13,509       47,440
 
    Research and
    development costs         9,894   10,888     3,249   3,528       14,077
    Selling, general and
    administrative          *15,950   18,715     5,027   6,016       24,341
    Expenses
                             25,844   29,603     8,276   9,544       38,418
 
    Operating income          5,269    9,739     3,132   3,965        9,022
    Financial expenses,
    net                     (1,574)  (1,811)     (588)  (1,034)     (2,900)
 
    Income before income
    taxes                     3,695    7,928     2,544    2,931       6,122
 
    Income tax                (412)    (667)     (170)    (297)       (744)
 
    Net income                3,283    7,261     2,374    2,634       5,378
 
    Net income per
    ordinary share:
 
    Basic                      0.11     0.25      0.08     0.09        0.18
 
    Diluted                    0.11     0.24      0.08     0.09        0.18
 
    Weighted average number
    of ordinary shares
    outstanding:
 
    Basic                    29,834   29,561    29,893    29,705     29,577
 
    Diluted                  30,024   30,012    30,008    29,998     30,009


  (*)   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)

   
                                 Nine Months                       Year ended
                                    ended
                                               Three Months ended   December
                                September 30,     September 30,        31,
                                 2012    2011    2012      2011       2011
                                                                      U.S.
                                U.S. dollars      U.S. dollars       dollars
 


   
    Reported net income attributable
    to Camtek Ltd. on GAAP basis
                                       3,283  7,261  2,374  2,634   5,378
    Acquisition of Sela and Printar
    related expenses (1)               1,781  1,732    611    594   2,377
    Inventory write -downs (2)             -      -      -      -     685
    Share-based compensation             308    361    103    126     416
    Shelf registration expenses           94      -      -      -       -
    Non-GAAP net income                5,466  9,354  3,088  3,354   8,856
 
    Non -GAAP net income per share ,
    basic and diluted                          0.31          0.11
                                        0.18          0.10           0.30
    Gross margin on GAAP basis
 
    Reported gross profit on GAAP      46.5%  45.8%  48.1%  45.5%   44.3%
    basis
                                      31,113 39,342 11,408 13,509  47,440
    Acquisition of Sela and Printar
    related expenses ( 1)                225    239     75     79     331
    Inventory write -downs (2)             -      -      -      -     685
    Share-based compensation              75     82     25     29      97
    Non- GAAP gross margin             46.9%  46.2%  48.5%  45.9%   45.4%
    Non-GAAP gross profit             31,413 39,663 11,508 13,617  48,553
 
    Reported operating income
    attributable to Camtek Ltd. on                                  9,022
    GAAP basis                         5,269  9,739  3,132  3,965
    Acquisition of Sela and Printar
    related expenses (1)                 225    239     75     79     331
 
    Inventory write-downs (2)              -      -      -      -     685
 
    Share-based compensation             308    361    103    126     416
 
    Shelf registration expenses           94      -      -      -       -
    Non-GAAP operating income          5,896 10,339  3,310  4,170  10,454



(1) During the three and nine months ended September 30, 2012 and 2011 and the twelve months ended December 31, 2011, the Company recorded acquisition expenses of $0.6 million, $1.8 million, $0.6 million, $1.7 million and $2.4 million, respectively, consisting of: (1) inventory written-up to fair value in purchase accounting charges of $0 million, $0 million, $0.01 million, $0.02 million and $0.02 million, respectively. These amounts are recorded under cost of revenues line item. (2) Revaluation adjustments of $0.5 million, $1.6 million, $0.5 million, $1.5 million and $2.0 million, respectively, of contingent consideration and certain future liabilities recorded at fair value. These amounts are recorded under finance expenses line item and (3) $0.07 million, $0.23 million, $0.07 million, $0.22 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 months and nine months ended September 30, 2012 and 2011, and the twelve months ended December 31, 2011, the Company recorded inventory write down in the amount of $0 million, $0 million, $0 million, $0 million, and $0.7 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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