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Camtek Reports Second Quarter 2021 Results

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Record results: $67.5 million Revenue, up 82% YoY; 27% Operating margin; Expects continued growth for the second half of 2021

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

Camtek_logo
Camtek_logo

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.

CAMTEK LTD. and its subsidiaries
Consolidated Balance Sheets

(In thousands)



June 30,

December 31,


2021

2020


U.S. Dollars (In thousands)

Assets






Current assets



Cash and cash equivalents

80,339

105,815

Short-term deposits

109,000

72,000

Trade accounts receivable, net

60,259

41,001

Inventories

54,346

39,736

Other current assets

4,411

3,366




Total current assets

308,355

261,918




Long-term deposits

10,000

-

Long term inventory

4,694

4,416

Deferred tax asset

-

482

Other assets, net

119

85

Property, plant and equipment, net

20,377

20,398

Intangible assets, net

602

609





35,792

25,990




Total assets

344,147

287,908




Liabilities and shareholders' equity






Current liabilities



Trade accounts payable

32,980

27,180

Other current liabilities

48,348

30,204




Total current liabilities

81,328

57,384




Long term liabilities



Deferred tax liabilities, net

186

-

Other long-term liabilities

3,470

3,260


3,656

3,260




Total liabilities

84,984

60,644




Commitments and contingencies






Shareholders' equity



Ordinary shares NIS 0.01 par value, 100,000,000 shares authorized
at June 30, 2021 and at December 31, 2020;



45,804,862 issued shares at June 30, 2021 and
45,365,354 at December 31, 2020;



43,712,486 shares outstanding at June 30, 2021 and
43,272,978 at December 31, 2020;

172

171

Additional paid-in capital

173,383

170,497

Retained earnings

87,506

58,494


261,061

229,162

Treasury stock, at cost (2,092,376 as of June 30, 2021 and
December 31, 2020)

(1,898)

(1,898)




Total shareholders' equity

259,163

227,264




Total liabilities and shareholders' equity

344,147

287,908

Consolidated Statements of Operations

(in thousands, except share data)




Six months ended

Three months ended

Year ended



June 30,

June 30,

December 31,



2021

2020

2021

2020

2020



U.S. dollars

U.S. dollars

U.S. dollars

Revenues


124,802

67,179

67,450

37,000

155,859

Cost of revenues


60,831

36,679

32,456

20,057

82,628








Gross profit


63,971

30,500

34,994

16,943

73,231








Research and development costs


11,244

8,884

5,766

4,754

19,575

Selling, general and







administrative expenses


21,288

13,338

12,188

6,779

31,032



32,532

22,222

17,954

11,533

50,607








Operating income


31,439

8,278

17,040

5,410

22,624








Financial income, net


562

651

176

276

775








Income before taxes


32,001

8,929

17,216

5,686

23,399








Income tax expense


(2,989)

(841)

(1,564)

(378)

(1,621)








Net income


29,012

8,088

15,652

5,308

21,778

Net income per ordinary share:


Six months ended

June 30,

Three months

ended June 30,

Year ended

December 31,



2021

2020

2021

2020

2020



U.S. dollars

U.S. dollars

U.S. dollars








Basic net earnings


0.67

0.21

0.36

0.14

0.55








Diluted net earnings


0.65

0.20

0.35

0.13

0.54








Weighted average number of







ordinary shares outstanding







(in thousands):














Basic


43,450

38,877

43,609

39,033

39,383








Diluted


44,612

39,785

44,750

39,945

40,372


Camtek Ltd.

Reconciliation of GAAP to Non-GAAP results

(In thousands, except share data)



Six Months ended

June 30,

Three Months ended June 30,

Year ended

December 31,


2021

2020

2021

2020

2020


U.S. dollars

U.S. dollars

U.S. dollars







Reported net income attributable to Camtek Ltd. on GAAP basis

29,012

8,088

15,652

5,308

21,778

Share-based compensation

2,681

1,768

1,470

951

4,224

Non-GAAP net income

31,693

9,856

17,122

6,259

26,002







Non–GAAP net income per diluted share

0.71

0.25

0.38

0.16

0.63

Gross margin on GAAP basis

51.3%

45.4%

51.9%

45.8%

47.0%

Reported gross profit on GAAP basis

63,971

30,500

34,994

16,943

73,321

Share-based compensation

301

189

173

103

429

Non- GAAP gross margin

64,272

30,689

35,167

17,046

73,750

Non-GAAP gross profit

51.5%

45.7%

52.1%

46.1%

47.3%







Reported operating income attributable to Camtek Ltd. on GAAP basis

31,439

8,278

17,040

5,410

22,624

Share-based compensation

2,681

1,768

1,470

951

4,224

Non-GAAP operating income

34,120

10,046

18,510

6,361

26,848

CAMTEK LTD.

Moshe Eisenberg, CFO

Tel: +972 4 604 8308

Mobile: +972 54 900 7100

moshee@camtek.com

INTERNATIONAL INVESTOR RELATIONS

GK Investor Relations

Ehud Helft

Tel: (US) 1 646 688 3559

camtek@gkir.com

Cision
Cision

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SOURCE Camtek Ltd.