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Camtek Announces Results For The Third Quarter Of 2020

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Record Revenues of $40.1M; Backlog and Pipeline Point to $42-44M in Q4-20 & Strong H1-21

MIGDAL HAEMEK, Israel, Oct. 27, 2020 /PRNewswire/ -- Camtek Ltd. (NASDAQ: CAMT) (TASE: CAMT), today announced its financial results for the quarter ended September 30, 2020.

Highlights of the Third Quarter 2020

  • Revenues were a quarterly record at $40.1 million, up 23% year-over-year;

  • GAAP gross margin at 48.5%; Non-GAAP gross margin at 48.8%;

  • GAAP operating income was $6.3 million and non-GAAP operating income was $7.6 million, representing margins of 15.8% and 19.0%, respectively;

  • GAAP net income of $6.0 million, or $0.15 per diluted share, non-GAAP net income of $7.3 million, or $0.18 per diluted share; and

  • Operating cash flow of $5.0 million, with $106.0 million in net cash and short-term deposits at quarter-end.

Forward-Looking Expectations

Based on orders in hand, the Company expects continued revenue growth in the fourth quarter, with revenues to be between $42-44 million, representing 30% growth year-over-year at the mid-point. Based upon orders received and current pipeline, the Company believes that revenue in the first half of 2021 will be similar to the revenue level in the second half of 2020, representing approximately 25% growth over the first half of 2020

Management Comment

Rafi Amit, Camtek's CEO commented, "Camtek's third quarter results reflect continued momentum for our products, from existing and new customers.

We are benefitting from increased demand for our products, particularly in the advanced packaging, CMOS Image Sensor and RF devices. In addition, we are expanding our presence in the Front-End, mainly for Macro Inspection applications. This significantly increases our total available market."

Continued Mr. Amit, "We continue to collaborate with the leading IDM's to develop metrology and inspection solutions for the next generations of Advanced Packaging. We expect these applications to become meaningful to our business. The market drivers, the performance of our systems, our increasing market presence and our customers satisfaction give us a sense of optimism towards 2021."

Third Quarter 2020 Financial Results

Revenues for the third quarter of 2020 were $40.1 million. This compares to third quarter 2019 revenues of $32.5 million, a growth of 23%.

Gross profit on a GAAP basis in the quarter totaled $19.4 million (48.5% of revenues), up 28% compared to a gross profit of $15.2 million (46.9% of revenues) in the third quarter of 2019. Gross profit on a non-GAAP basis in the quarter totaled $19.5 million (48.8% of revenues), up 28% compared to a gross profit of $15.3 million (47.1% of revenues) in the third quarter of 2019.

Operating profit on a GAAP basis in the quarter totaled $6.3 million (15.8% of revenues), compared to an operating profit of $4.4 million (13.5% of revenues) in the third quarter of 2019. Operating profit on a non-GAAP basis in the quarter totaled $7.6 million (19.0% of revenues), compared to $5.3 million (16.2% of revenues) in the third quarter of 2019.

Net income on a GAAP basis in the quarter totaled $6.0 million, or $0.15 per diluted share, compared to net income of $4.2 million, or $0.11 per diluted share, in the third quarter of 2019. Net income on a non-GAAP basis in the quarter totaled $7.3 million, or $0.18 per diluted share, compared to a non-GAAP net income of $5.0 million, or $0.13 per diluted share, in the third quarter of 2019.

Cash and cash equivalents and short-term deposits, as of September 30, 2020, were $106.0 million compared to $89.5 million as of December 31, 2019. During the quarter, the Company generated a positive operating cash flow of $5.0 million.

Conference Call

Camtek will host a conference call today, October 27, 2020, at 9:00 am ET.

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, please call one of the following telephone numbers a few minutes before the start of the call.

US: 1 866 229 7198 at 9:00 am Eastern Time
Israel 03 918 0609 at 3:00 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.com beginning 24 hours 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 manufacturer of metrology and inspection equipment and a provider of software solutions serving the Advanced Packaging, Memory, CMOS Image Sensors, MEMS, RF and other segments in the mid end of the semiconductor industry.

Camtek provides dedicated solutions and crucial yield-enhancement data, enabling manufacturers to improve yield and drive down their production costs.

With eight offices around the world, Camtek has best-in-class sales and customer support organization, providing tailor-made solutions in line with customers' requirements.

This press release is available at http://www.camtek.com

This press release contains projections or other forward-looking statements regarding future events or the future performance of the Company. These statements are only predictions that represent our views only as of the date they are made and may change as time passes. We do not assume any obligation to update that information, except as required by law. These forward-looking statements are subject to risks and uncertainties that may cause actual events or results to differ materially from those projected, including as a result of the effects of general economic conditions; the effect of the COVID-19 crisis 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 as a result of the outbreak and effects of the COVID-19 pandemic; 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, but also 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 due to other risks identified in our Annual Report on Form 20-F and other documents filed by the Company with the SEC.

This press release provides financial measures that exclude: (i) share based compensation expenses; (ii) certain Chroma transaction expenses; and (iii) discontinued operations, 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. and its subsidiaries
Consolidated Balance Sheets

(In thousands)




September 30,

December 31,


2020

2019


U.S. Dollars (In thousands)

Assets






Current assets



Cash and cash equivalents

26,042

38,047

Short-term deposits

80,000

51,500

Trade accounts receivable, net

33,747

31,443

Inventories

34,436

23,803

Other current assets

3,032

2,909


Total current assets

177,257

147,702



Fixed assets, net

18,886

18,526


Long term inventory

4,090

2,791

Deferred tax asset, net

8

746

Other assets, net

80

113

Intangible assets, net

619

491



4,797

4,141


Total assets

200,940

170,369


Liabilities and shareholders' equity




Current liabilities



Trade accounts payable

20,468

11,334

Other current liabilities

24,283

20,272


Total current liabilities

44,751

31,606


Long term liabilities



Other long term liabilities

2,191

2,461


2,191

2,461


Total liabilities

46,942

34,067


Commitments and contingencies




Shareholders' equity



Ordinary shares NIS 0.01 par value, 100,000,000 shares authorized at September 30, 2020 and at December 31, 2019;



41,303,757 issued shares at September 30, 2019 and 40,742,355 at December 31, 2019;



39,211,381 shares outstanding at September 30, 2020 and 38,649,979 at December 31, 2019

159

157

Additional paid-in capital

104,909

101,327

Retained earnings

50,828

36,716


155,896

138,200

Treasury stock, at cost (2,092,376 as of September 30, 2020 and December 31, 2019)

(1,898)

(1,898)


Total shareholders' equity

153,998

136,302


Total liabilities and shareholders' equity

200,940

170,369


Consolidated Statements of Operations

(in thousands, except share data)





Nine Months ended
September 30,

Three Months
ended September 30,

Year ended
December 31,


2020

2019

2020

2019

2019


U.S. dollars

U.S. dollars

U.S. dollars

Revenues

107,240

100,818

40,061

32,470

134,019

Cost of revenues

57,315

51,875

20,636

17,252

69,235


Gross profit

49,925

48,943

19,425

15,218

64,784



Research and development costs

13,952

11,891

5,068

4,164

16,331

Selling, general and administrative expenses

21,374

19,668

8,036

6,681

26,481


35,326

31,559

13,104

10,845

42,812


Operating income

14,599

17,384

6,321

4,373

21,972


Financial income, net

958

340

307

188

801


Income from continuing operations






before income taxes

15,557

17,724

6,628

4,561

22,773


Income tax expense

(1,445)

(1,508)

(604)

(398)

(1,950)


Net income from continuing operations

14,112

16,216

6,024

4,163

20,823


Discontinued operations *






Income from discontinued operations







Income before tax expense

-

1,257

-

-

1,257

Income tax expense

-

(94)

-

-

(94)


Net income from discontinued operations

-

1,163

-

-

1,163







Net income

14,112

17,379

6,024

4,163

21,986


*Relates to the earn-out payment received from the sale of the PCB business.

Net income per ordinary share:





Nine months ended
September 30.

Three months ended September 30,

Year ended December 31,



2020

2019

2020

2019

2019



U.S. dollars

U.S. dollars

U.S. dollars

Basic earnings from continuing operation


0.36

0.43

0.15

0.11

0.55


Basic earnings from discontinued operation


-

0.03

-

-

0.03


Basic net earnings


0.36

0.47

0.15

0.11

0.58


Diluted earnings from continuing operation


0.35

0.43

0.15

0.11

0.54


Diluted earnings from discontinued operation


-

0.03

-

-

0.03


Diluted net earnings


0.35

0.46

0.15

0.11

0.57



Weighted average number of







ordinary shares outstanding







(in thousands):








Basic


38,957

37,286

39,176

36,300

37,626


Diluted


39,878

38,064

40,066

36,941

37,432

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,


2020

2019

2020

2019

2019


U.S. dollars

U.S. dollars

U.S. dollars


Reported net income attributable to Camtek Ltd. on GAAP basis

14,112

17,379

6,024

4,163

21,986

Share-based compensation

3,053

2,068

1,285

818

2,892

Chroma transaction expenses (1)

-

136

-

63

136

Attributable to discontinued operations

-

(1,163)

-

-

(1,163)







Non-GAAP net income

17,165

18,420

7,309

5,044

23,851







Non–GAAP net income per diluted share

0.43

0.48

0.18

0.13

0.62

Gross margin on GAAP basis from continuing operations

46.6%

48.5%

48.5%

46.9%

48.3%

Reported gross profit on GAAP basis

49,925

48,943

19,425

15,218

64,784

Share-based compensation

308

207

120

85

292







Non- GAAP gross margin

50,233

49,150

19,545

15,303

65,076

Non-GAAP gross profit

46.8%

48.8%

48.8%

47.1%

48.6%







Reported operating income attributable to Camtek Ltd. on GAAP basis from continuing operations

14,599

17,384

6,321

4,373

21,972

Share-based compensation

3,053

2,068

1,285

818

2,892

Chroma transaction expenses (1)

-

136

-

63

136

Non-GAAP operating income

17,652

19,588

7,606

5,254

25,000







(1) In the second and third quarters of 2019, certain transaction expenses were incurred in relation to the technological cooperation agreement with Chroma. These were recorded under operating expenses


CAMTEK LTD.
Moshe Eisenberg, CFO
Tel: +972-4-604-8308
Mobile: +972-54-900-7100
moshee@camtek.com

INTERNATIONAL INVESTOR RELATIONSGK Investor Relations
Ehud Helft
Tel: (US) +1-646-688-3559
camtek@gkir.com

Cision
Cision

View original content:http://www.prnewswire.com/news-releases/camtek-announces-results-for-the-third-quarter-of-2020-301160459.html

SOURCE Camtek Ltd.