Camtek Reports Second Quarter 2021 Results

MIGDAL HAEMEK, Israel, Aug. 4, 2021 /PRNewswire/ -- Camtek Ltd. (NASDAQ: CAMT) (TASE: CAMT), today announced its financial results for the second quarter of 2021.

Highlights of the Second Quarter of 2021

• Revenues of $67.5 million, an 82% increase year-over-year;
• GAAP gross margin of 51.9%; non-GAAP gross margin of 52.1%;
• GAAP operating income of $17.0 million (25.3% of revenue); non-GAAP operating income of $18.5 million (27.4% of revenue);
• GAAP net income of $15.7 million; non-GAAP net income of $17.1 million; and
• Strong positive operating cash flow of $19.9 million.

Forward-Looking Expectations

Management expects continued growth for the second half of 2021 with revenues for the third quarter to be between $69-71 million, implying over 80% growth year-over-year for the first nine months of 2021.

Management Comment

Rafi Amit, Camtek's CEO, commented, "I am excited by the strong growth in revenue and profitability in the first half of 2021. We are experiencing unprecedented momentum in our business which we expect to continue through the second half of the year. We have a healthy backlog and this provides us visibility of continued strong demand into the beginning of 2022."

Continued Mr. Amit, "We are in the process of expanding our production capacity to address our customers' demands and our long-term growth strategy. As a result, we are increasing our inventory levels and headcount to support the heightened demand."

Second Quarter 2021 Financial Results

Revenues for the second quarter of 2021 were $67.5 million, an increase of 82% compared with the second quarter of 2020.  

Gross profit on a GAAP basis in the quarter totaled $35.0 million (51.9% of revenues), compared to a gross profit of $16.9 million (45.8% of revenues) in the second quarter of 2020. Gross profit on a non-GAAP basis in the quarter totaled $35.2 million (52.1% of revenues), compared to $17.0 million (46.1% of revenues) in the second quarter of 2020. The increase in the gross margin was due to the higher revenue level and a more favorable product mix in the quarter.

Operating profit on a GAAP basis in the quarter totaled $17.0 million (25.3% of revenues), compared to an operating profit of $5.4 million (14.6% of revenues) in the second quarter of 2020. Operating profit on a non-GAAP basis in the quarter totaled $18.5 million (27.4% of revenues), compared to $6.4 million (17.2% of revenues) in the second quarter of 2020.

Net income on a GAAP basis in the quarter totaled $15.7 million, or $0.35 per diluted share, compared to net income of $5.3 million, or $0.13 per diluted share, in the second quarter of 2020. Net income on a non-GAAP basis in the quarter totaled $17.1 million, or $0.38 per diluted share, compared to non-GAAP net income of $6.3 million, or $0.16 per diluted share, in the second quarter of 2020. 

Cash and cash equivalents and short-term deposits, as of June 30, 2021 were $189.3 million compared to $169.9 million as of March 31, 2021. In addition, there were $10.0 in long-term deposits. During the quarter, Camtek generated $19.9 million in operating cash flow.

Conference Call

Camtek will host a video conference call/webinar today via Zoom, August 4, 2021, at 9:00 am ET (16:00 Israel time).

Rafi Amit, CEO, Moshe Eisenberg, CFO and Ramy Langer, COO will host the call and will be available to answer questions after presenting the results.

To participate in the video call please use the following link:

https://us06web.zoom.us/webinar/register/9116273008728/WN_iSUSel1dS0ORFYdMAm8XtQ

For those wishing to listen via phone, please dial: +1-301-715-8592 (United States) or +972 3 978 6688 (Israel) with meeting ID 829 8842 8983. For other dial in numbers, please visit: https://zoom.us/zoomconference.

For those unable to participate, a recording will be available on Camtek's website at http://www.camtek.com the day after the call.

A summary presentation of the quarterly results will also be available on Camtek's website.

ABOUT CAMTEK LTD.

Camtek is a leading developer and manufacturer of high-end inspection and metrology equipment for the semiconductor industry.

Camtek's systems inspect IC and measure IC features on wafers throughout the production process of semiconductor devices, covering the front and mid-end, and up to the beginning of assembly (Post Dicing).

Camtek's systems inspect wafers for the most demanding semiconductor market segments, including Advanced Interconnect Packaging, Memory, CMOS Image Sensors, MEMS and RF, serving the industry's leading global IDMs, OSATs and foundries.

Camtek's world-class sales and customer support infrastructure is organized around eight subsidiaries based in the US, Europe, Japan, China, Hong Kong, Taiwan, Korea and Singapore.

This press release is available at www.camtek.com 

This press release contains projections or other statements that constitute "forward-looking statements" within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are only predictions that are based on the current beliefs, expectations and assumptions of Camtek's management about Camtek's business, financial condition, results of operations, market trends and other issues addressed or reflected therein, only as of the date they are made. Although we believe that the predictions reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations therefrom will not be material.  We do not assume any obligation to update that information, except as required by law. Examples of forward-looking statements include: projections of demand, revenues, net income, growth prospects, cost assumptions and other financial and market matters. You may identify these and other forward-looking statements by the use of words such as "may", "plans", "anticipates", "believes", "estimates", "targets", "expects", "intends", "potential" or the negative of such terms, or other comparable terminology, although not all forward-looking statements contain these identifying words. These forward-looking statements are subject to risks and uncertainties that may cause actual events or results to differ materially from those projected, including, but not limited to, as a result of the effects of general economic conditions; the effect of the COVID-19 pandemic on the global markets and on the markets in which we operate, including the risk of a continued disruption to our and our customers', providers', business partners' and contractors' business; the risks relating to the concentration of a significant portion of Camtek's expected business in certain countries, particularly China, from which we expect to generate significant portion of our revenues for the coming few quarters, as well as Taiwan and Korea, including the risks of deviations from our expectations regarding timing and size of orders from customers in these countries; 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; price reductions; as well as other risks identified in our Annual Report on Form 20-F and other documents filed by Camtek with the SEC.

This press release provides financial measures that exclude 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.

SOURCE Camtek Ltd.