Camtek Announces Strong Growth in First Quarter 2011 Results
Sequential Quarterly Revenue Increase of 8% and Year Over Year Increase of 56%
MIGDAL HAEMEK, Israel, April 28, 2011 /PRNewswire-FirstCall/ -- Camtek Ltd. (NASDAQ and TASE: CAMT), today announced its financial results for the quarter ended March 31, 2011.
Main Financial Highlights of the First Quarter
- Revenues of $27.5 million, representing a sequential quarterly increase of 8% and a year-over-year increase of 56%.
- Non-GAAP gross margin of 47.0% for the quarter compared with 41.0% in the first quarter of last year; GAAP gross margin of 46.6% for the current quarter.
- Both non-GAAP operating income and net income of $3.1 million in the quarter; GAAP operating income of $3.0 million and GAAP net income of $2.4 million.
- Non-GAAP earnings per diluted share of $0.10; GAAP earnings per diluted share of $0.08.
Results for the three months ended March 31, 2011 on a non-GAAP basis, exclude the following items: (i) Expenses with respect to the acquisition of SELA and Printar; and (ii) share based compensation expenses. A re-conciliation between the GAAP and non-GAAP results appears in the tables at the end of this press release.
First Quarter 2011 Financial Results
Revenues for the first quarter of 2011 increased 56% to $27.5 million, compared to $17.6 million in the first quarter of 2010. Revenues grew 8% sequentially, and came in slightly above the formerly issued guidance range of between $25-27 million. The ongoing growth is as a result of the continued increase in demand from customers as well as the penetration into new customers and increasing sales of the Company's new products.
Gross profit on a GAAP basis in the quarter totaled $12.8 million (46.6% of revenues), compared with $7.0 million (40% of revenues) in the first quarter of 2010. Gross profit on a non-GAAP basis in the quarter totaled $12.9 million (47.0% of revenues), compared with $7.3 million (41% of revenues) in the first quarter of 2010.
Operating income on a GAAP basis in the quarter was $3.0 million (10.8% of revenues) compared with an operating loss of $0.4 million in the first quarter of 2010. Non-GAAP operating income was $3.1 million (11.5% of revenues) in the quarter compared with an operating loss of $0.1 million in the first quarter of 2010.
Net income on a GAAP basis in the first quarter of 2011 totaled $2.4 million, or $0.08 per diluted share, compared to a net loss of $0.9 million, or a loss of $0.03 per diluted share in the first quarter of 2010.
Net income on a non-GAAP basis in the first quarter of 2011 was $3.1 million, or $0.10 per diluted share, compared with a net loss of $0.3 million, or $0.01 per diluted share in the first quarter of 2010.
Cash and cash equivalents levels as of March 31, 2011 were $9.2 million with an additional amount of $5.2 million in restricted cash compared with $9.6 million and $5.2 million restricted cash at December 31, 2010.
Management Comment
Roy Porat, Camtek's Chief Executive Officer, commented: "We are very pleased with our strong results and it is a great start for 2011. This quarter's success was the result of our continuous efforts in reshaping our business that started eight quarters ago and has resulted in gradual growth since then. The growth has cemented our sound position in our legacy inspection businesses in the back-end semiconductor and PCB industries. We are also now moving from proving feasibility to actually establishing a position with our new front-end semiconductor inspection and sample preparation product lines."
Mr. Porat concluded: "For the second quarter of 2011, we anticipate flat to moderate growth with revenues of between $27-29 million."
Conference Call
Camtek will host a conference call today, April 28, 2011, at 10:00 am ET. Roy Porat, Chief Executive Officer 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 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 solutions dedicated for enhancing production processes and yield, enabling our customers new technologies in two industries; Semiconductors, Printed Circuit Board (PCB) & IC Substrates.
Camtek addresses the specific needs of these industries with dedicated solutions based on a wide and advanced platform of technologies including intelligent imaging, image processing, ion milling and digital material deposition. Camtek's solutions range from micro-to-nano by applying its technologies to the industry-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 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.
CAMTEK LTD. and its subsidiaries
Consolidated Balance Sheets
(In thousands)
March 31, December 31,
2011 2010
U.S. Dollars (In thousands)
Assets
Current assets
Cash and cash equivalents 9,218 9,577
Accounts receivable, net 32,672 28,817
Inventories 24,227 24,034
Due from affiliates 844 384
Other current assets 2,322 2,414
Deferred tax asset 54 54
Total current assets 69,337 65,280
Fixed assets, net 14,877 15,077
Restricted deposits * 5,196 5,182
Long term inventory 2,155 2,304
Deferred tax asset 152 152
Other assets, net 460 460
Intangible assets, net ** 4,108 4,163
Goodwill 3,653 3,653
15,724 15,914
Total assets 99,938 96,271
Liabilities and shareholders' equity
Current liabilities
Short term bank loans 1,436 1,409
Accounts payable - trade 10,291 9,761
Long term bank loans - current portion 433 433
Other current liabilities 22,292 21,408
Total current liabilities 34,452 33,011
Long term liabilities
Long term bank loans 650 758
Liability for employee severance benefits 673 626
Other long term liabilities ** 7,494 7,884
8,817 9,268
Total liabilities 43,269 42,279
Commitments and contingencies
Shareholders' equity
Ordinary shares NIS 0.01 par value,
authorized 100,000,000 shares,
31,425,945 issued as March 31, 2011 and
31,370,359 as of December 31, 2010,
outstanding 29,333,569
as of March 31, 2011 and 29,277,983 as of 133 132
December 31, 2010
Additional paid-in capital 60,707 60,452
Accumulated losses (2,273) (4,694)
58,567 55,890
Treasury stock, at cost (2,092,376 as of
March 31, 2011 and December 31, 2010)
(1,898) (1,898)
Total shareholders' equity 56,669 53,992
Total liabilities and shareholders' equity 99,938 96,271
(*) Bank guarantee against credit line related to the Rudolph
Technologies appeal
(**) Relates to Printar and SELA acquisitions
Camtek Ltd.
Consolidated Statements of Operations
(in thousands, except share data)
Three months ended Year ended
March 31, December 31,
2011 2010 2010
U.S. dollars
Revenues 27,470 17,627 87,780
Cost of revenues 14,663 10,612 49,361
Gross profit 12,807 7,015 38,419
Research and development costs 3,779 3,086 12,906
Selling, general and administrative 6,063 4,341 20,662
expenses
9,842 7,427 33,568
Operating income (loss) 2,965 (412) 4,851
Financial expenses, net (408) (432) (1,478)
Income (loss) before income taxes 2,557 (844) 3,373
Income tax (136) (100) (557)
Net income (loss) 2,421 (944) 2,816
Earnings (loss) per ordinary share:
Basic 0.08 (0.03) 0.10
Diluted 0.08 (0.03) 0.09
Weighted average number of ordinary
shares outstanding:
Basic 29,300 29,242 29,259
Diluted 30,112 29,242 30,360
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(in thousands, except share data)
Three months ended Year ended
March 31, December 31,
2011 2010 2010
U.S. dollars
Reported net income (loss) on GAAP basis 2,421 (944) 2,816
Acquisition of Sela and Printar related
expenses(1) 563 647 2,093
Inventory write-downs - - 159
Share-based compensation 109 41 155
Restructuring expenses(2) - - 544
Non-GAAP net income (loss) 3,093 (256) 5,767
Gross margin on GAAP basis 46.6% 40% 43.8%
Reported gross profit on GAAP basis 12,807 7,015 38,419
Acquisition of Sela and Printar related
expenses(1) 563 280 731
Inventory write off - - 159
Non GAAP gross margin 47.0% 41% 44.8%
Non-GAAP gross profit 12,910 7,295 39,309
Reported operating income (loss) on GAAP
basis 2,965 (412) 4,851
Acquisition of Sela and Printar related
expenses(1) 80 280 731
Inventory write off - - 159
Share-based compensation 109 41 155
Restructuring expenses (2) - - 544
Non-GAAP operating income (loss) 3,154 (91) 6,440
(1) During the three months ended March 31, 2011 and 2010 and the twelve months ended December 31, 2010, the Company recorded acquisition expenses of $0.6 million, $0.6 million and $2.1 million, respectively, consisting of: (1) inventory written-up to fair value in purchase accounting charges of $0 million, $0.2 million and $0.4 million, respectively . These amounts are recorded under cost of revenues line item. (2) Revaluation adjustments of $0.5 million, $0.4 million and $1.4 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, $0.05 million and $0.3 million amortization of intangible assets acquired recorded under cost of revenues line item.
(2) The Company has entered into a Memorandum of Understanding with a Belgian company, according to which, commencing June 2010, this company began to distribute the Company's products for the PCB industry in Europe, subject to and in accordance with terms and conditions referred to in the agreement. Therefore, the Company implemented a restructuring plan in its Belgium subsidiary which includes mainly a reduction in workforce and recorded $0.3 million as restructuring expenses under selling, general and administrative expenses line item.
During the twelve months ended December 31, 2010 the Company recorded $0.28 million of restructuring expense with respect to reorganization in its subsidiaries in China.
CAMTEK LTD.
Mira Rosenzweig, CFO
Tel: +972-4-604-8308
Mobile: +972-54-9050703
[email protected]
INTERNATIONAL INVESTOR RELATIONS
CCG Investor Relations
Ehud Helft / Kenny Green
Tel: (US) +1-646-201-9246
[email protected]
SOURCE Camtek Ltd
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