Camtek Announces Third Quarter 2013 Results Revenues of $21.7 million; Positive Operating Cash Flow of $3.1 million

MIGDAL HAEMEK, Israel, Nov. 7, 2013 /PRNewswire/ -- Camtek Ltd. (NASDAQ and TASE: CAMT), today announced its financial results for the quarter ended September 30, 2013.

Highlights of the Third Quarter 2013

  • Revenues of $21.7 million;
  • Non-GAAP operating income of $819 thousand; GAAP operating income of $600 thousand;
  • Non-GAAP net income of $545 thousand; GAAP net loss of $122 thousand;
  • Positive operating cash flow of $3.1 million;
  • Quarter-end net cash position of $20.3 million;

Roy Porat, Camtek's Chief Executive Officer, commented, "We are pleased with our solid third quarter results, coming in slightly ahead of our original expectations. We are especially pleased with the strong operating cash flow which strengthens our net cash position to over $20 million."

Concluded Mr. Porat, "Looking ahead into the fourth quarter and beyond, we are seeing signs of a continually improving semiconductor industry which will benefit us. For the fourth quarter of 2013, we expect our revenues to improve to between $22-24 million. Looking towards 2014, Camtek is a leaner and stronger company, primed for improved growth and we are increasingly optimistic with regard to our future."

Third Quarter 2013 Financial Results

Revenues for the third quarter of 2013 were $21.7 million. This is a 2% decrease from prior quarter revenues of $22.3 million and an 8% decrease from the third quarter 2012 revenues of $23.7 million.

Gross profit on a GAAP basis in the quarter totaled $9.7 million (44.6% of revenues). This is a 1% decrease compared to $9.8 million (44.1% of revenues) in the prior quarter and a 15% decrease compared to $11.4 million in the third quarter of 2012 (48.1% of revenues). Gross profit on a non-GAAP basis in the quarter totaled $9.8 million (45.0% of revenues). This is a 1% decrease compared to $9.9 million (44.4% of revenues) in the prior quarter and a 15% decrease compared to $11.5 million (48.5% of revenues) in the third quarter of 2012.

Operating income on a GAAP basis in the quarter was $600 thousand (2.8% of revenues). This is compared to an operating income of $991 thousand (4.5% of revenues) in the prior quarter and to operating income of $3.1 million in the third quarter of 2012 (13.2% of revenues). Operating profit on a non-GAAP basis in the quarter was $819 thousand (3.8% of revenues). This is compared to an operating income of $1.2 million (5.4% of revenues) in the prior quarter and of $3.3 million (14.0% of revenues) in the third quarter of 2012. The operating income was negatively affected due to the strengthening of the New Israeli Shekel versus the US dollar over the past year, which caused an increase in operating expenses of approximately $0.6 million in the third quarter of 2013 as compared with the third quarter in 2012.

Net loss on a GAAP basis in the quarter totaled $122 thousand or $0.00 per share. This is compared to a net income of $334 thousand or $0.01 per share in the prior quarter and a net income of $2.4 million or $0.08 per share in the third quarter of 2012. Net income on a non-GAAP basis in the quarter was $545 thousand or $0.02 per diluted share. This is compared to a net income of $991 thousand or $0.03 per share in the prior quarter and net income of $3.1 million or $0.10 per share in the third quarter of 2012.

Cash, cash equivalents and short-term deposits, net of bank loans as of September 30, 2013 were $20.3 million compared to $17.6 million as of June 30, 2013. The company generated $3.1 million from operating cash flow during the third quarter of 2013.

Conference Call

Camtek will host a conference call today, November 7, 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:

1 888 668 9141

at 9:00 am Eastern Time

Israel:

03 918 0610

at 4:00 pm Israel Time

International:

+972 3 918 0610


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.

CAMTEK LTD.

INTERNATIONAL INVESTOR RELATIONS

Moshe Eisenberg, CFO

CCG Investor Relations

Tel: +972 4 604 8308

Ehud Helft / Kenny Green

Mobile: +972 54 900 7100

Tel: (US) 1 646 201 9246

moshee@camtek.co.il

camtek@ccgisrael.com

 

Consolidated Balance Sheets

(In thousands)



September 30,

December 31,


2013

2012


U.S. Dollars (In thousands)




Assets






Current assets



Cash and cash equivalents

14,118

18,867

Short-term deposits

7,000

7,160

Accounts receivable, net

24,331

23,076

Inventories

19,940

18,335

Due from affiliates

699

391

Other current assets

2,251

2,210

Deferred tax asset

367

367




Total current assets

68,706

70,406







Fixed assets, net

15,461

15,822




Long term inventory

4,425

7,090

Long-term deposit

729

729

Deferred tax asset

107

107

Other assets, net

304

304

Intangible assets, net *

2,701

2,971

Goodwill

1,579

1,579





9,845

12,780




Total assets

94,012

99,008




Liabilities and shareholders' equity






Current liabilities



Short term bank loans

-

4,160

Accounts payable – trade

8,129

7,610

Long term bank loans – current portion

817

1,592

Other current liabilities

12,829

13,850




Total current liabilities

21,775

27,212




Long term liabilities



Long term bank loans

-

500

Liability for employee severance benefits

836

710

Other long term liabilities *

11,285

10,249


12,121

11,459




Total liabilities

33,896

38,671




Commitments and contingencies






Shareholders' equity



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



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



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

133

133

Additional paid-in capital

61,847

61,415

Accumulated income

34

687


62,014

62,235

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

(1,898)

(1,898)




Total shareholders' equity

60,116

60,337




Total liabilities and shareholders' equity

94,012

99,008






 (*) Relates to Printar and SELA acquisitions    

 

Camtek Ltd.

Consolidated Statements of Operations

(in thousands, except share data)






Nine Months ended
September 30,

Three Months ended
September 30,

Year ended
December 31,


2013

2012

2013

2012

2012


U.S. dollars

U.S. dollars

U.S. dollars







Revenues

62,072

66,928

21,733

23,717

84,547

Cost of revenues

34,363

35,815

12,046

12,309

47,482







Gross profit

27,709

31,113

9,687

11,408

37,065













Research and development costs

10,715

9,894

3,507

3,249

12,916

Selling, general and administrative expenses

15,554

*15,950

5,580

5,027

21,138

Impairment charge in respect of goodwill and
other intangible assets

-

-

-

-

3,031








26,269

25,844

9,087

8,276

37,085













Operating income (loss)

1,440

5,269

600

3,132

(20)







Financial income (expenses), net

(1,681)

(1,574)

(603)

(588)

233







Income (loss) before income






 taxes

(241)

3,695

(3)

2,544

213







Income tax

(412)

(412)

(119)

(170)

(210)







Net income (loss)

(653)

3,283

(122)

2,374

3







Net income (loss) per ordinary share:












Basic

(0.02)

0.11

0.00

0.08

0.00







Diluted

(0.02)

0.11

0.00

0.08

0.00







Weighted average number of






  ordinary shares outstanding:












Basic

29,993

29,834

30,046

29,893

29,849







Diluted

29,993

30,024

30,046

30,008

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)








Nine Months ended
September 30,

Three Months ended
September 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

(653)

3,283

(122)

2,374

3

Acquisition of Sela and Printar related
expenses (1)

 

1,517

 

1,781

 

523

 

611

 

(434)

Inventory write –downs (2)

-

-

-

-

1,515

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

 

-

 

-

 

-

 

-

 

3,031

Share-based compensation

429

308

144

103

401

Shelf registration expenses

-

94

-

-

94

Non-GAAP net income

1,293

5,466

545

3,088

4,610







Non –GAAP net income  per share ,
basic and diluted

0.04

0.18

0.02

0.10

0.15

Gross margin on GAAP basis

Reported gross profit on GAAP basis

44.6%

27,709

 

46.5%

31,113

 

44.6%

9,687

 

48.1%

11,408

 

 

43.8%

37,065

Acquisition of Sela and Printar related
expenses ( 1)

 

225

 

225

 

75

 

75

 

300

Inventory write-downs  (2)

-

-

-

-

1,515

Share-based compensation

50

75

22

25

97

Non- GAAP gross margin

45.1%

46.9%

45.0%

48.5%

46.1%

Non-GAAP gross profit

27,984

31,413

9,784

11,508

38,977







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

 

1,440

 

5,269

 

 

00

 

 

3,132

 

(20)

Acquisition of Sela and Printar related expenses (1)

Inventory write- downs (2)

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

Share-based compensation

Shelf registration expenses

225

-

 

-

429

-

 

225

-

 

-

308

94

 

75

-

 

-

144

-

 

75

-

 

-

103

-

 

300

1,515

 

3,031

401

94

Non-GAAP operating income

2,094

5,896

819

3,310

5,361







(1) During the three and nine months ended September 30, 2013 and 2012 and the twelve months ended December 31, 2012, the Company recorded acquisition expenses (income) of $0.5 million, $1.5 million, $0.6 million, $1.8 million and $(0.4) million, respectively, consisting of: (1) Revaluation adjustments of $0.4 million, $1.3 million, $0.5 million, $1.5 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, $0.23 million, $0.07 million, $0.23 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 nine months ended September 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 nine months ended September 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.

 

SOURCE Camtek Ltd.



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