Camtek Announces Record First Quarter 2017 Results

MIGDAL HAEMEK, Israel, May 9, 2017 /PRNewswire/ -- Camtek Ltd. (NASDAQ: CAMT; TASE: CAMT), today announced its financial results for the quarter ended March 31, 2017.

Highlights of the First Quarter 2017

• Revenues of $30.8 million, ahead of guidance and a 26% year-over-year increase;
• GAAP operating income of $3.9 million (12.6% margin); non-GAAP operating income of $4.0 million (13.0% margin);
• GAAP net income of $3.3 million; non-GAAP net income of $3.4 million;
• Strong operating cash flow of $5.9 million;
• Second quarter revenue guidance of $33-34 million represents 23% year-over-year growth at the mid-point;

Rafi Amit, Camtek's CEO, commented, "This is an excellent start to 2017, which demonstrates we are executing well on our strategy and plans. Our results mark the best quarter in our history from the revenue standpoint, with exceptionally strong cash flow and a multi-year high in margins. Our solid performance was driven by strength across all our business parts, and the advanced packaging market in particular that remains one of the fastest growing segments of the semiconductor capital equipment space."

Added Mr. Amit, "Looking ahead, our business environment remains very positive. The outlook for the second quarter is for continued growth with revenues between $33-34 million. All signs point to another year of strong performance for Camtek."

First Quarter 2017 Financial Results

Revenues for the first quarter of 2017 were $30.8 million. This compares to first quarter 2016 revenues of $24.5 million, a growth of 26% and prior quarter revenues of $29.3 million, an increase of 5%.

Gross profit on a GAAP basis in the quarter totaled $14.8 million (48.2% of revenues), compared to $10.3 million (42.2% of revenues) in the first quarter 2016 and $13.4 million in the prior quarter (45.7% of revenues). 

Gross profit on a non-GAAP basis in the quarter totaled $14.8 million (48.2% of revenues), compared to $10.3 million (42.3% of revenues) in the first quarter 2016. The variance in the gross margin is a function of the specific product and sales mix in the quarter and was unusually high in the current quarter.

Operating profit on a GAAP basis in the quarter totaled $3.9 million (12.6% of revenues), compared to an operating income of $0.4 million (1.5% of revenues), in the first quarter 2016.

Operating profit on a non-GAAP basis in the quarter totaled $4.0 million (13.0% of revenues), compared to $0.5 million (1.8% of revenues), in the first quarter 2016.

Net income on a GAAP basis in the quarter totaled $3.3 million, or $0.09 per diluted share. This compares to a net income of $24 thousand, or $0.00 per diluted share, in the first quarter 2016.

Net income on a non-GAAP basis in the quarter totaled $3.4 million, or $0.10 per diluted share. This compares to net income of $0.2 million, or $0.01 per diluted share, in the first quarter 2016. 

Cash, cash equivalents, short and long-term restricted deposits, as of March 31, 2017 were $24.3 million compared to $19.7 million as of December 31, 2016. The Company reported a positive operating cash flow of $5.9 million during the quarter.  

Conference Call

Camtek will host a conference call today, May 9, 2017, at 9:00 am ET.

Rafi Amit, CEO, Moshe Eisenberg, CFO and Ramy Langer, VP, head of the Semiconductors Division 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 9:00 am Eastern Time
Israel:  03 918 0610        at 4:00 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:(i) revaluation of liabilities with respect to the acquisition of Printar; and (ii) 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.

(1)     During the year ended December 31, 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 $5.0 million, recorded under operating expenses

(2)     During the three month period ended March 31, 2016 and the year ended December 31, 2016, the Company recorded acquisition expenses of $0.1million and $0.2 million, respectively, consisting of revaluation adjustments of contingent consideration and certain future liabilities recorded at fair value. These amounts are recorded under finance expenses line item.

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SOURCE Camtek Ltd