Camtek Announces Second Quarter 2010 Results
MIGDAL HAEMEK,
Ltd. (NASDAQ and TASE: CAMT), today announced its financial results for the
quarter ended
Main Financial Highlights of the Second Quarter
- Revenues of $20.8 million representing a 66% year-over-year
increase and an 18% sequential increase;
- Non-GAAP operating income of $1.7 million compared with a
non-GAAP operating loss of $2.1 million in the second quarter of 2009.
GAAP operating income reached $1.2 million;
- Non-GAAP net income of $1.4 million compared with a non-GAAP
net loss of $2.0 million in the second quarter of 2009. GAAP net
income reached $460 thousands; and
- Cash and cash equivalents balance on June 30, 2010 of $14.1
million.
Results for the three months ended
exclude the following items: (i) expenses with respect to the acquisition of
SELA and Printar; (ii) share based compensation expenses and (iii)
restructuring expenses due to reorganization in the Company’s subsidiary in
tables at the end of this press release.
Second Quarter 2010 Financial Results
Revenues for the second quarter of 2010 increased 66% to
compared to
sequentially, representing the fifth quarter of continued sequential growth.
This growth is a result of increase in demand from our costumers due to
improving market conditions as well as our penetration into new customers and
new product lines.
Gross profit on a GAAP basis for the quarter was
revenues), compared to gross profit of
the second quarter of 2009. On a non-GAAP basis, gross profit for the quarter
of 2010 totaled
gross margin resulted mainly from the increase in revenues.
Operating income on a GAAP basis, in the second quarter of 2010 was
million
of 2009. Non-GAAP operating income was
2010.
Net income on a GAAP basis for the second quarter of 2010 totaled
thousand
or a loss of
basis, net income in the second quarter of 2010 was
per diluted share.
Cash and cash equivalents as of
to
mainly from an increase in accounts receivable and inventory due to the
increase in sales as well as the Company’s expectations of increased future
demands.
our results of the quarter which demonstrate the solid footing underlying the
recovery in our markets. The markets in which we operate are all in high
utilization, and our clients are actively expanding their capacity by
investing in capital equipment.”
Continued Mr. Porat, “Looking ahead into the second half of 2010 and
2011, we see Camtek’s business evolving from a two vertical business to a
four vertical one, which will further diversify our exposure to the industry
cycles in which we operate. The two new additional product lines of Macro
Inspection and Sample Preparation are already starting to contribute to our
top line. We have a number of leads and we aim to turn these leads into sales
in the coming quarters.
Concluded Mr. Porat, “With regard to our revenue outlook for the third
quarter, we anticipate another quarter of sequential top-line growth, with
revenues reaching between
Conference Call
Camtek will host a conference call today,
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: 1-888-407-2553 at
International: +972-3-918-0610
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.
Consolidated Balance Sheets
(In thousands)
June 30, December 31,
2010 2009
U.S. Dollars (In
thousands)
Assets
Current assets
Cash and cash equivalents 14,136 15,802
Accounts receivable, net 25,717 18,712
Inventories 16,556 14,176
Due from affiliates 134 344
Other current assets 1,822 1,691
Deferred tax asset 68 68
Total current assets 58,433 50,793
Fixed assets, net 15,261 15,394
Long term inventory 3,541 4,661
Deferred tax asset 98 98
Other assets, net 460 460
Intangible assets * 4,298 4,356
Goodwill 3,653 3,653
12,050 13,228
Total assets 85,744 79,415
Liabilities and
shareholders' equity
Current liabilities
Accounts payable -
trade 8,863 4,494
Convertible loan - current
portion 1,666 1,666
Other current liabilities 14,980 12,945
Total current liabilities 25,509 19,105
Long term liabilities
Liability for employee
severance benefits 482 487
Other long term liabilities * 9,137 8,802
9,619 9,289
Total liabilities 35,128 28,394
Commitments and
contingencies
Shareholders' equity
Ordinary shares NIS 0.01 par
value, authorized
100,000,000 shares,
issued 31,347,170 in 2010
and 31,328,119 in 2009,
outstanding
29,254,794 in 2010 and
29,235,743 in 2009 132 132
Additional paid-in capital 60,379 60,297
Retained earnings (7,997) (7,510)
(accumulated losses)
52,514 52,919
Treasury stock, at cost (
2,092,376 in 2010 and 2009) (1,898) (1,898)
Total shareholders' equity 50,616 51,021
Total liabilities and
shareholders' equity 85,744 79,415
(*) Relates to Printar and SELA acquisition
Camtek Ltd.
Consolidated Statements of Operations
(In thousands, except share data)
Six Months Three Months Year ended
ended ended
June 30, December
June 30, 31,
2010 2009 2010 2009 2009
U.S. U.S. U.S. U.S.
dollars dollars dollars dollars
Revenues 38,433 21,798 20,806 12,510 53,521
Cost of revenues 22,597 14,146 11,985 8,319 36,039
Gross profit 15,836 7,652 8,821 4,191 17,482
Research and development costs 6,224 4,896 3,138 2,309 10,319
Selling, general and
administrative
expenses 8,824 9,864 4,483 4,008 17,667
15,048 14,760 7,621 6,317 27,986
Operating income (loss) 788 (7,108) 1,200 (2,126) (10,504)
Financial income (expenses), net (1,011) (281) (579) 96 (952)
Income (loss) before income
taxes (223) (7,389) 621 (2,030) (11,456)
Income tax (264) (145) (164) (52) (386)
Net income (loss) (487) (7,534) 457 (2,082) (11,842)
Net income (loss) per ordinary
share:
Basic (0.02) (0.26) 0.02 (0.07) (0.40)
Diluted (0.02) (0.26) 0.02 (0.07) (0.40)
Weighted average number of
ordinary shares outstanding:
Basic 29,248 29,209 29,254 29,212 29,218
Diluted 29,248 29,209 30,084 29,212 29,218
Camtek Ltd.
Reconciliation of GAAP To Non-GAAP results
(In thousands, except share data)
Six Months Three Months Year ended
ended ended
June 30, December
June 30, 31,
2010 2009 2010 2009 2009
U.S. U.S. U. S. U.S.
dollars dollars dollars dollars
Reported net income (loss)
attributable to Camtek Ltd. on
GAAP basis (487) (7,534) 457 (2,082) (11,842)
Acquisition of Sela and Printar
related expenses (1) 1,273 - 626 - 1,264
Inventory write -downs (2) - - - - 3,213
Share-based compensation 82 102 41 62 148
Write off of other assets - - - - 102
Restructuring expenses (3) 265 - 265 - -
Non-GAAP net income (loss) 1,133 (7,432) 1,389 (2,020) (7,117)
Non -GAAP net income (loss) per
share, basic and diluted (0.04) (0.26) 0.05 (0.07) (0.24)
Gross margin on GAAP basis 41% 35% 42% 33.5% 33%
Reported gross profit on GAAP
basis 15,836 7,652 8,821 4,191 17,482
Acquisition of Sela and Printar
related expenses (1) 517 - 237 - 396
Inventory write off (2) - - - - 3,213
Non GAAP gross margin 42.5% 35% 43.5% 33.5% 39%
Non-GAAP gross profit 16,353 7,652 9,058 4,191 21,093
Reported operating income (loss
) attributable to Camtek Ltd. on
GAAP basis 788 (7,108) 1,200 (2,126) (10,504)
Acquisition of Sela and Printar
related expenses (1) 517 - 237 - 678
Inventory write- downs (2) - - - - 3,213
Share-based compensation 82 102 41 62 148
Write of other assets - - - - 102
Restructuring expenses (3) 265 - 265 - -
Non-GAAP operating income
(loss) 1,652 (7,006) 1,743 (2,064) (6,363)
(1) During the three and six months ended
months ended
(1) inventory written-up to fair value in purchase accounting charges of
million
recorded under cost of revenues line item. (2) Revaluation adjustments of
consideration and certain future liabilities recorded at fair value. These
amounts are recorded under finance expenses line item and (3)
assets acquired recorded under cost of revenues line item.
The twelve months ended
expenses of
operations, mainly the abandonment of certain rented properties, recorded
under general and administrative expenses line item.
(2) During the year ended
inventory write downs in the amount of
decision by the Company to discontinue certain old products and an additional
amount of
single source supplier which has been replaced by internally developed
software.
(3) The Company has entered into a Memorandum of Understanding with a
Belgian company, according to which, commencing
distribute the Company’s products for the PCB industry in
and in accordance with terms and conditions referred to in the agreement.
Therefore the Company implemented a restructuring plan in its
subsidiary which includes mainly a reduction in workforce and recorded
million
expenses line item.
CAMTEK LTD.
Mira Rosenzweig, CFO
Tel: +972-4-604-8308
Mobile: +972-54-9050703
mirar@camtek.co.il
INTERNATIONAL INVESTOR RELATIONS
CCG Investor Relations
Ehud Helft / Kenny Green
Tel: (US) +1-646-201-9246
camtek@ccgisrael.com
SOURCE Camtek Ltd