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
[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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