FORM 6-K

 

 

For the Month of October 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: October 31, 2018

 

FOR IMMEDIATE RELEASE

 

CAMTEK ANNOUNCES RECORD RESULTS

FOR THE THIRD QUARTER OF 2018

Expects Growth to Continue into the Fourth Quarter and the First Quarter of 2019

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

Highlights of the Third Quarter 2018

·

Revenues were a record at $32.3 million, up 35% year-over-year and ahead of the upper-end of the previously issued guidance range of $31-32 million;

·

GAAP gross margin was 50.2%; Non-GAAP gross margin was 50.4%;

·

GAAP operating income was $5.6 million and non-GAAP operating income was $6.2 million, representing margins of 17.2% and 19.2%, respectively;

·

GAAP net income of $5.1 million or $0.14 per diluted share and non-GAAP net income of $5.7 million or $0.16 per diluted share, representing year-over-year growth of 84% and 100%, respectively and;

·

Operating cash flow of $7.1 million;

Forward Looking Guidance

Fourth quarter 2018 revenues are expected to increase to $32.5-33.5 million, implying full year 2018 revenues of approximately $123 million, and representing a 2018 year-over-year increase in revenues of over 30%.

Furthermore, management expects the growth to continue into the first quarter of 2019.

Management Comment

Rafi Amit Camtek’s CEO commented, “2018 is shaping to be another record year for Camtek, and we are on track for revenue growth in excess of 30% for the year with solid improvements in profitability.  Our primary target market, semiconductor advanced packaging, continues to gain strong traction. As a result, we expect growth to continue into the fourth quarter of 2018 and the first quarter of 2019.”

 

The financial results and the comparison to 2017 in this press release include only those of the continuing operations. Camtek sold its PCB operations in the third quarter of 2017.

Third Quarter 2018 Financial Results

Revenues for the third quarter of 2018 were $32.3 million. This compares to third quarter 2017 revenues of $23.8 million, a growth of 35%.

Gross profit on a GAAP basis in the quarter totaled $16.2 million (50.2% of revenues), compared to a gross profit of $11.8 million (49.3% of revenues) in the third quarter 2017. Gross profit on a non-GAAP basis in the quarter totaled $16.2 million (50.4% of revenues), compared to $11.8 million (49.4% of revenues) in the third quarter 2017.

Operating profit on a GAAP basis in the quarter totaled $5.6 million (17.2% of revenues), compared to an operating income of $2.8 million (12.0% of revenues) in the third quarter 2017. Operating profit on a non-GAAP basis in the quarter totaled $6.2 million (19.2% of revenues), compared to $2.9 million (12.3% of revenues) in the third quarter 2017.

Net income on a GAAP basis in the quarter totaled $5.1 million, or $0.14 per diluted share, compared to net income from continuing operations of $2.8 million, or $0.08 per diluted share, in the third quarter 2017. Net income on a non-GAAP basis in the quarter totaled $5.7 million, or $0.16 per diluted share, compared to non-GAAP net income from continuing operations of $2.9 million, or $0.08 per diluted share, in the third quarter 2017.

Cash and cash equivalents, as of September 30, 2018, were $48.3 million compared to $41.2 million as of June 30, 2018. During the quarter the Company generated a positive operating cash flow of $7.1 million.

Conference Call

Camtek will host a conference call today, October 31, 2018, at 9:30 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:	1 888 668 9141		at 9:30 am Eastern Time
Israel:	03 918 0609		at 3:30 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.

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 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

---

(In thousands)

 

Camtek Ltd.

Consolidated Statements of Operations

---

(in thousands, except share data)

 

 

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,
		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			12,958				11,101				5,093				11,679				13,962
Effect of FIT reorganization (1)			506				-				-				-				-
Share-based compensation			1,028				276				634				92				426
Settlement expense, net of tax (2)			-				12,025				-				-				12,025
Realization of deferred tax assets (3)			-				(4,495	)			-				-				(4,495	)
Attributable to discontinued operations			-				(12,739	)			-				(8,905	)			(12,274	)
Non-GAAP net income			14,492				6,168				5,727				2,866				9,644
Non –GAAP diluted net income per share			0.40				0.17				0.16				0.08				0.27
Gross margin on GAAP basis from continuing operations			49.0	%			49.1	%			50.2	%			49.3	%			48.7	%
Reported gross profit on GAAP basis			44,079				33,194				16,183				11,750				45,519
Effect of FIT reorganization (1)			205				-				-				-				-
Share-based compensation			105				28				62				9				44
Non- GAAP gross margin			44,389				33,222				16,245				11,759				45,563
Non-GAAP gross profit			49.3	%			49.1	%			50.4	%			49.4	%			48.7	%
Reported operating income (loss) attributable to Camtek Ltd. on GAAP basis from continuing operations			13,811				(6,720	)			5,554				2,847				(3,037	)
Effect of FIT reorganization (1)			506				-				-				-				-
Share-based compensation			1,028				276				634				92				426
Settlement expense (2)			-				13,000				-				-				13,000
Non-GAAP operating income			15,365				6,556				6,188				2,939				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 nine months ended September 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 nine months ended September 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.

 

---