---

 

 

FORM 6-K

 

 

For the Month of July 2016

 

 

 

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.

 

CAMTEK LTD. (Registrant) By: /s/ Moshe Eisenberg —————————————— Moshe Eisenberg, Chief Financial Officer

 

Dated: November 7, 2016

	Camtek Ltd. P.O.Box 544, Ramat Gabriel Industrial Park Migdal Ha’Emek 23150,  ISRAEL Tel: +972 (4) 604-8100   Fax: +972 (4) 644-0523 E-Mail:    Info@camtek.com  Web site: http://www.camtek.com
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 / Gavriel Frohwein Tel: (US) 1 646 688 3559 camtek@gkir.com

 

FOR IMMEDIATE RELEASE

 

CAMTEK ANNOUNCES THIRD QUARTER 2016 RESULTS

Q3 revenues of $28.5 million- 8% Year-on-Year increase;

GAAP operating income of $1.7 million; Non-GAAP operating income of $2.7 million;

Expects continued top line growth in Q4

MIGDAL HAEMEK, Israel – November 7, 2016 – Camtek Ltd. (NASDAQ: CAMT; TASE: CAMT), today announced its financial results for the quarter ended September 30, 2016.

Highlights of the Third Quarter 2016

·

Revenues of $28.5 million, 4% sequential increase;

·

GAAP operating income of $1.7 million, representing 5.8% operating margins; Non-GAAP operating income of $2.7 million, representing 9.5% operating margins;

·

GAAP operating profit includes a one-time net expense of $0.9 million due the reorganization of the FIT activity;

·

GAAP net income of $1.1 million; Non-GAAP net income of $2.1 million;

·

Expecting continued growth driven by semiconductor advance packaging applications:

Fourth quarter revenue guidance of $28.5 million to $29.5 million, bringing full year 2016 revenues to a record $109 million in the mid-point of the guidance.

Rafi Amit, Camtek’s Chairman and CEO, commented, “We are very pleased with the results of this quarter and our revenue guidance forecasts that 2016 will end as a record year for us. Our ongoing revenue growth was once again driven by solid performance in our semiconductor business. Approximately 40% of the systems shipped this quarter will be used in the advanced packaging market. As this market segment remains strong, we continue our penetration to the advanced packaging 2D inspection with new customers for Fan-out applications using our unique inspection capabilities.”

Added Mr. Amit, “We are also pleased with our improvement in profitability which was mainly due to lower operating expenses. Furthermore, following the reorganization of our digital printing activity in August, we expect to see additional operating expense savings ahead. We therefore look forward to demonstrating increased profitability margins for Camtek in the quarters ahead.”

 

Third Quarter 2016 Financial Results

Revenues for the third quarter of 2016 were $28.5 million. This compares to third quarter 2015 revenues of $26.3 million, a growth of 8% and prior quarter revenues of $27.3 million, an increase of 4%.

Gross profit on a GAAP basis in the quarter totaled $7.5 million (26.2% of revenues), compared to $11.8 million (44.8% of revenues) in the third quarter 2015 and $12.7 million in the prior quarter (46.7% of revenues).  The gross profit on a GAAP basis includes the $4.9 million effect of the FIT re-organization including the write-off of inventory and other one-time expenses.

Gross profit on a non-GAAP basis in the quarter totaled $12.4 million (43.6% of revenues), compared to $11.8 million (44.9% of revenues) in the third quarter 2015 and $12.8 million in the prior quarter (46.8% of revenues).

Operating profit on a GAAP basis in the quarter totaled $1.7 million (5.8% of revenues), compared to $1.8 million (6.8% of revenues) in the third quarter 2015 and an operating profit of $1.7 million (6.4% of revenues) in the prior quarter. The operating profit included a one-time net expense of $0.9 million due the reorganization of the FIT activity. This one-time expense includes a $5.6 million inventory and fixed asset write-off, other expenses of $0.3 million, partially offset by income of $5.0 million related to a write-off of liabilities to the Office of the Chief Scientist in Israel.

Operating profit on a non-GAAP basis in the quarter, which excludes the above-mentioned one-time expenses, totaled $2.7 million (9.3% of revenues), compared to $1.9 million (7.1% of revenues) in the third quarter 2015 and $1.9 million in the prior quarter (6.8% of revenues).

Net income on a GAAP basis in the quarter totaled $1.1 million, or $0.03 per diluted share. This compares to net income of $1.0 million, or $0.03 per diluted share, in the third quarter 2015 and a net income of $1.3 million, or $0.04 per diluted share, in the prior quarter.

Net income on a non-GAAP basis in the quarter totaled $2.1 million, or $0.06 per diluted share. This compares to net income of $1.2 million, or $0.03 per diluted share, in the third quarter 2015 and a net income of $1.5 million, or $0.04 per diluted share, in the prior quarter.

Cash, cash equivalents, short and long-term restricted deposits, as of September 30, 2016 were $19.7 million compared to $38.7 million as of December 31, 2015. The Company reported a positive operating cash flow of $3.0 million during the quarter (excluding the $14.6 million payment to Rudolph for the IP litigation).

Conference Call

Camtek will host a conference call today, Monday, November 7, 2016, at 9:30 am ET.

Rafi Amit, Chairman and CEO, and Moshe Eisenberg, CFO, 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 0610		at 4:30 pm Israel Time
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.com beginning 24 hours after the call.

 

 

ABOUT CAMTEK LTD.

Camtek Ltd. provides automated and technologically advanced solutions dedicated to enhancing production processes, increasing products yield and reliability, enabling and supporting customers' latest technologies in the Semiconductors, Printed Circuit Boards (PCB) and IC Substrates industries.

Camtek addresses the specific needs of these interconnected industries with dedicated solutions based on a wide and advanced platform of technologies including intelligent imaging, image processing and functional 3D inkjet printing.

 

This press release is available at 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, 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 such as: (i) write off of inventory and fixed-assets related to the discontinued FIT product line; (ii) revaluation of liabilities with respect to the acquisition of Printar; (iii) the impact of reorganization and impairment charges; and (iv) 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.

 

 

Consolidated Balance Sheets

---

(In thousands)

 

		September 30,				December 31,
		2016				2015
		U.S. Dollars (In thousands)
Assets
Current assets
Cash and cash equivalents			19,691				30,833
Short-term restricted deposits			-				7,875
Trade accounts receivable, net			32,879				27,003
Inventories			24,816				27,599
Due from affiliated companies			596				559
Other current assets			1,808				1,712
Deferred tax asset			177				177
Total current assets			79,967				95,758
Fixed assets, net			14,022				13,531
Long term inventory			1,734				1,979
Deferred tax asset			3,835				3,955
Other assets, net			248				248
Intangible assets, net			875				795
			6,692				6,977
Total assets			100,681				116,266
Liabilities and shareholders’ equity
Current liabilities
Trade accounts payable			11,490				11,812
Other current liabilities			17,358				30,712
Total current liabilities			28,848				42,524
Long term liabilities
Liability for employee severance benefits			925				772
Other long term liabilities			-				4,768
			925				5,540
Total liabilities			29,773				48,064
Shareholders’ equity
Ordinary shares NIS 0.01 par value, 100,000,000 shares authorized at September 30, 2016 and at December 31, 2015;
37,440,552 issued shares at September 30, 2016 and at December 31, 2015;
35,348,176 shares outstanding at September 30, 2016 and at December 31, 2015			148				148
Additional paid-in capital			76,353				76,034
Retained earnings			(3,695	)			(6,082	)
			72,806				70,100
Treasury stock, at cost (2,092,376  as of September 30, 2016 and December 31, 2015)			(1,898	)			(1,898	)
Total shareholders' equity			70,908				68,202
Total liabilities and shareholders' equity			100,681				116,266

 

 

Consolidated Statements of Operations

---

(in thousands, except share data)

 

		Nine Months ended September 30,								Three Months ended September 30,								Year ended December 31,
		2016				2015				2016				2015				2015
		U.S. dollars								U.S. dollars								U.S. dollars
Revenues			80,192				73,499				28,454				26,337				99,275
Cost of revenues			44,721				41,019				16,054				14,531				56,149
Reorganization			*4,931				-				*4,931				-				-
Gross profit			30,540				32,480				7,469				11,806				43,126
Research and development costs			11,949				10,614				3,866				3,660				14,860
Selling, general and administrative expenses			18,879				17,847				5,998				6,358				23,587
Reorganization			**(4,059	)			-				**(4,059	)			-				138
Loss from litigation			-				-				-				-				14,600
			26,769				28,461				5,805				10,018				53,185
Operating income (loss)			3,771				4,019				1,664				1,788				(10,059	)
Financial expenses, net			(592	)			(1,489	)			(225	)			(449	)			(1,877	)
Income (loss) before income
taxes			3,179				2,530				1,439				1,339				(11,936	)
Income tax			(792	)			(836	)			(361	)			(344	)			1,823
Net income (loss)			2,387				1,694				1,078				995				(10,113	)
Net income (loss) per ordinary share:
Basic			0.07				0.05				0.03				0.03				(0.30	)
Diluted			0.07				0.05				0.03				0.03				(0.30	)
Weighted average number of
ordinary shares outstanding:
Basic			35,348				32,742				35,348				35,150				33,352
Diluted			35,367				32,873				35,381				35,200				33,352

(*) Consists of inventory write-off in the amount of $4,841 and other expenses related to FIT reorganization.

(**) $4,962 OCS liability write-off offset by fixed asset write-off and other expenses related to FIT reorganization.

 

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,
		2016				2015				2016				2015				2015
		U.S. dollars								U.S. dollars								U.S. dollars
Reported net income (loss) attributable to Camtek Ltd. on GAAP basis			2,387				1,694				1,078				995				(10,113	)
Effect of FIT reorganization (1)			872				-				872				-				-
Acquisition of Sela and Printar related expenses (2)			183				463				-				122				751
Inventory write-downs (3)			-				-				-				-				1,041
Loss from litigation, net of tax (4)			-				-				-				-				13,286
Share-based compensation			319				212				118				92				270
Non-GAAP net income			3,761				2,369				2,068				1,209				5,235
Non –GAAP net income  per share , basic and diluted			0.06				0.07				0.04				0.03				0.16
Gross margin on GAAP basis			38.1	%			44.2	%			26.2	%			44.8	%			43.4	%
Reported gross profit on GAAP basis			30,540				32,480				7,469				11,806				43,126
Effect of FIT reorganization (1)			4,931				-				4,931				-				-
Inventory write-downs (3)			-				-				-				-				1,041
Share-based compensation			33				17				10				7				24
Non- GAAP gross margin			35,504				32,497				12,410				11,813				44,191
Non-GAAP gross profit			44.3	%			44.2	%			43.6	%			44.9	%			44.5	%
Reported operating income attributable to Camtek Ltd. on GAAP basis			3,771				4,019				1,664				1,788				(10,059	)
Effect of FIT reorganization (1)			872				-				872				-				-
Acquisition of Sela and Printar related expenses (2)			-				-				-				-				138
Inventory write-downs (3)			-				-				-				-				1,041
Share-based compensation			319				212				118				92				271
Loss from litigation (4)			-				-				-				-				14,600
Non-GAAP operating income			4,962				4,231				2,654				1,880				5,991

 

 

(1)

During each of the three and nine months periods ended September 30, 2016, the Company recorded reorganization costs with regard to the FIT activities of $0.9 million consisting of: (1) inventory and fixed asset write-offs of $4.9 million recorded under cost of revenues line item; (2) other expenses of $0.1 million recorded under cost of revenues line item; (3) fixed asset write-offs of $0.7 million recorded under operating expenses; (4) other expenses of $0.2 million recorded under operating expenses; and (5) income from write-off of liabilities to OCS of $5.0 million recorded under operating expenses.

 

(2)

During the three and the nine months ended September 30, 2016 and 2015 and the twelve months ended December 31, 2015, the Company recorded acquisition expenses of $0 million, $0.2 million, $0.1 million, $0.5 million and $0.8 million, respectively, consisting of: (1) Revaluation adjustments of $0 million, $0.2 million, $0.1 million, $0.3 million and $0.6 million, respectively, of contingent consideration and certain future liabilities recorded at fair value. These amounts are recorded under finance expenses line item; (2) Implication of re-organization and impairment charges of $0, $0, $0, $0 and $0.1 million, respectively.

 

(3)

During the year ended December 31, 2015, the Company recorded inventory write downs in the amount of $1.0 million, recorded under cost of revenues line item.

 

(4)

During the year ended December 31, 2015, the Company recorded a provision of $14.6 million  ($13.3 million net of tax) in conjunction with the final court ruling on February 3, 2016 in Camtek’s appeal in the patent infringement case of Rudolph Technologies Inc. regarding the Falcon system.

 

---