FORM 6-K

 

 

For the Month of July 2018

 

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

 

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities and Exchange Act of 1934.

 

 

 

SIGNATURE

 

        Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Dated: July 31, 2018

 

 

FOR IMMEDIATE RELEASE

 

CAMTEK ANNOUNCES RECORD RESULTS

FOR THE SECOND QUARTER OF 2018

Record revenue of $30.5 million, 34% increase YoY;

Expects continued strong growth in the second half of 2018

MIGDAL HAEMEK, Israel – July 31, 2018 – Camtek Ltd. (NASDAQ: CAMT; TASE: CAMT), today announced its financial results for the quarter ended June 30, 2018.

Highlights of the Second Quarter 2018

 

·

Revenues were a record at $30.5 million, up 34% year-over-year and ahead of the upper end of the previously-issued guidance range;

 

·

Revenues for the first half of 2018 are up over 30% from 2017;

 

·

GAAP operating income was $4.7 million and non-GAAP operating income was $5.0 million, representing a margins of 15.5% and 16.3%, respectively; and

 

·

GAAP net income was $4.3 million and non-GAAP net income was $4.6 million; representing margins of 14.2% and 15.0%, respectively.

 

Forward Looking Guidance

Management Comment

 

The financial results and the comparison to 2017 in this press release include only those of the continuing operations.

Second Quarter 2018 Financial Results

Revenues for the second quarter of 2018 were $30.5 million. This compares to second quarter 2017 revenues of $22.7 million, a growth of 34%.

Gross profit on a GAAP basis in the quarter totaled $14.9 million (48.9% of revenues), compared to a gross profit of $11.2 million (49.2% of revenues) in the second quarter 2017.

Gross profit on a non-GAAP basis in the quarter totaled $14.9 million (49.0% of revenues), compared to $11.2 million (49.2% of revenues) in the second quarter 2017.

Operating profit on a GAAP basis in the quarter totaled $4.7 million (15.5% of revenues), compared to an operating loss of $11.0 million in the second quarter 2017. The 2017 operating loss was due to a $13 million settlement payment for IP litigation.

Operating profit on a non-GAAP basis in the quarter totaled $5.0 million (16.3% of revenues), compared to $2.1 million (9.2% of revenues) in the second quarter 2017.

Net income on a GAAP basis in the quarter totaled $4.3 million, or $0.12 per diluted share, compared to net loss from continuing operations of $5.7 million, or ($0.16) per diluted share, in the second quarter 2017.

Net income on a non-GAAP basis in the quarter totaled $4.6 million, or $0.13 per diluted share, compared to non-GAAP net income from continuing operations of $2.0 million, or $0.06 per diluted share, in the second quarter 2017.

Cash and cash equivalents, as of June 30, 2018, were $41.2 million compared to $47.2 million as of March 31, 2018. During the quarter the Company paid a $5.1 million dividend. In addition, the Company reported a negative operating cash flow of $1.0 million during the second quarter to support the working capital requirements.

Conference Call

Camtek will host a conference call today, July 31, 2018, at 10:00 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:                                       Israel:                                    International:

1 888 668 9141 03 918 0609 +972 3 918 0609

at 10:00 am Eastern Time at 5:00 pm Israel Time

 

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.

 

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 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, price reductions as well as due to risks identified in the documents filed by the Company with the SEC.

 

This press release provides financial measures that exclude: (i) settlement expenses; (ii) changes in valuation allowance on deferred tax assets; (iii) share based compensation expenses, (iv) discontinued operations, and (v) write off costs with regard to the FIT activities, 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.

Consolidated Balance Sheets

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(In thousands)

 

Camtek Ltd.

Consolidated Statements of Operations

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(in thousands, except share data)

 

Camtek Ltd.

Reconciliation of GAAP To Non-GAAP results

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(In thousands, except share data)

		Six Months ended June 30,								Three Months ended June 30,								Year ended December 31,
		2018				2017				2018				2017				2017
		U.S. dollars								U.S. dollars								U.S. dollars
Reported net income (loss) attributable to Camtek Ltd. on GAAP basis			7,865				(578	)			4,331				(3,877	)			13,962
Effect of FIT reorganization (1)			506				-				-				-				-
Share-based compensation			395				184				249				92				426
Settlement expense, net of tax (2)			-				12,025				-				12,025				12,025
Realization of deferred tax assets (3)			-				(4,495	)			-				(4,495	)			(4,495	)
Attributable to discontinued operations			-				(3,832	)			-				(1,787	)			(12,274	)
Non-GAAP net income			8,766				3,304				4,580				1,958				9,644
Non –GAAP net income  per share , basic and diluted			0.24				0.09				0.13				0.06				0.27
Gross margin on GAAP basis from continuing operations			48.4	%			48.9	%			48.9	%			49.2	%			48.7	%
Reported gross profit on GAAP basis			27,896				21,444				14,899				11,155				45,519
Effect of FIT reorganization (1)			205				-				-				-				-
Share-based compensation			44				19				28				9				44
Non- GAAP gross margin			28,145				21,463				14,927				11,164				45,563
Non-GAAP gross profit			48.8	%			48.9	%			49.0	%			49.2	%			48.7	%
Reported operating income (loss) attributable to Camtek Ltd. on GAAP basis from continuing operations			8,277				(9,567	)			4,718				(11,012	)			(3,037	)
Effect of FIT reorganization (1)			506				-				-				-				-
Share-based compensation			395				184				249				92				426
Settlement expense (2)			-				13,000				-				13,000				13,000
Non-GAAP operating income			9,178				3,617				4,967				2,080				10,389

 

(1)

At the end of the first quarter of 2018, the Company ceased its efforts to utilize the remaining inventory and equipment related to FIT development and recorded a one-time write-off in the amount of $0.5 million, consisting of: (1) inventory write-offs of $0.2 million, recorded under the cost of revenue line item; and (2) fixed asset write-offs of $0.3 million recorded under operating expenses.

 

(2)

During the three and the six months ended June 30, 2017, and the year ended December 31, 2017, the Company recorded a provision of $13 million ($12 million net of tax) in conjunction settlement with Rudolph Technologies Inc.

 

(3)

During the three and the six months ended June 30, 2017, and the year ended December 31. 2017, the Company recorded net income of $4.5 million as a result of a decrease in the valuation allowance on deferred tax assets following the evaluation of the realizability of the assets based on projected future earnings.

 

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