CAMTEK ANNOUNCES FOURTH QUARTER AND FULL YEAR 2009 RESULTS
CONTINUED IMPROVEMENT IN REVENUES
39% year-over-year revenue increase
SURPASSES NON-GAAP BREAKEVEN IN FOURTH QUARTER 2009
MIGDAL HAEMEK, Israel – March 8, 2010 – Camtek Ltd. (NASDAQ and TASE: CAMT), today announced its financial results for the
fourth quarter and year ended December 31, 2009.
Main Quarterly Financial Highlights
•Sequential revenue increase of 19% in fourth quarter and year-over-year increase in fourth quarter of 39% to
$17.2 million.
•Reached profitability on non-GAAP basis: non-GAAP operating income of $0.8 million and non-GAAP net income of $0.5 million.
•GAAP operating loss of $3.2 million and GAAP net loss of $4 million.
•Cash and cash equivalents balance increased by $2 million during the quarter, ending the year with net cash of $15.8 million.
Results on a non-GAAP basis, exclude the following items:
(i) Expenses with respect to the acquisition of SELA and Printar;
(ii) certain inventory write-down; and (iii) share based compensation expenses. A reconciliation between the GAAP and
non-GAAP results appears in the tables at the end of this press release.
Fourth Quarter Financial Results
Revenues for the fourth quarter of 2009 increased 39% to $17.2 million, compared to $12.4 million in the fourth quarter of
2008. Revenues were also stronger sequentially, increasing by 19% compared with $14.5 million in the third quarter of 2009.
Gross profit on a GAAP basis for the fourth quarter was $3.7 million (22% of revenues), compared to gross profit of
$3.0 million (24% of revenue) in the fourth quarter of 2008. On a non-GAAP basis, gross profit for the fourth quarter of 2009
totaled $7.3 million (43% of revenues).
During the fourth quarter of 2009, the Company recorded an inventory write-down of $3.2 million consisting of
(i) $2.6 million due to a strategic decision by the Company to discontinue certain old products ; and
(ii) $0.6 million resulting from a write down of software purchased from a former single source supplier which has been
replaced by internally developed software, compared to $1.0 million inventory write down in the fourth quarter of 2008.
On a GAAP basis, the operating loss in the fourth quarter of 2009 was $3.2 million, compared to an operating loss of
$5.6 million in the fourth quarter of 2008. Non-GAAP operating income for the fourth quarter of 2009 reached $0.8 million.
On a GAAP basis, net loss in the fourth quarter of 2009 was $4.0 million, or a loss of $0.14 per share, compared to a
net loss of $5.5 million, or a loss of $0.19 per share, in the fourth quarter of 2008. Non-GAAP net income for the fourth
quarter of 2009 totaled $0.5 million, or $0.02 per share.
Cash and cash equivalents as of December 31, 2009, increased by $2 million in the quarter and totaled $15.8 million compared
to $13.8 million at the end of the prior quarter. The increase in cash during the quarter resulted primarily from a decrease
in inventory, an increase in revenues and improved collections.
Full Year 2009 Results Summary
Revenues for the full year of 2009 were $53.5 million, compared to $75.5 million reported in 2008. Gross profit on a GAAP
basis for 2009 was $17.5 million (33% of revenues), compared to $27.8 million (37% of revenues) in 2008. Gross profit on a
non-GAAP basis in 2009, was $21.1 million (39% from revenues).
On a GAAP basis, the operating loss in 2009 was $10.5 million, compared to an operating loss of $9.8 million in 2008.
Non-GAAP operating loss in 2009 was $6.4 million.
On a GAAP basis, operating loss in 2009 includes an inventory write-down of $4.2 million consisting of the above mentioned
write downs items and additional $1.0 million of other inventory write-off which was not excluded in the non-GAAP figures,
compared to a $4.1 million inventory write down in 2008.
Net loss on a GAAP basis for 2009 was $11.8 million, compared to a net loss of $9.6 million for 2008. Net loss on a non-GAAP
basis for 2009, was $7.1 million.
Cash and cash equivalents as of December 31, 2009, decreased by $0.1 million from $15.9 million at December 31, 2008.
During the year the company generated positive operating cash flow of $3.9 million and repaid loans in the amount of
$3.6 million.
Roy Porat, Camtek’s General Manager, commented, “This quarter we again strongly grew our top line and we achieved profit on
a non-GAAP basis. Our tight expense control coupled with a continued increase in orders, has enabled us to end 2009 in a
stronger position.” Continued Mr. Porat, “As we move into 2010, our business is primed for growth. We are enjoying a recovery
in the two industries that we operate in, particularly the semiconductor industry. Our expected new growth engines that we
recently acquired, SELA and Printar, also represent significant potential for us and we are very excited with regard to their
prospects as we move through 2010 and beyond. Looking ahead, we are cautiously optimistic. We are seeing a continued
improvement in orders and we believe 2010 will be a stronger year for Camtek. For the first quarter, which is normally
seasonally weak, we expect revenues of between $16-18 million. We also expect to increase our operating expenses in both
sales and marketing as well as R&D, in order to capitalize on a number of current strategic opportunities for both our legacy
businesses as well as our new growth engines. Our overall goal remains to build Camtek into a larger and more profitable
business, by increasing our addressable markets by providing customers new products and offering that are synergetic with
our overall business.”
Conference Call
Camtek will host a conference call today, March 8, 2010, at 10:00 am ET. Roy Porat, General Manager of Camtek Israel and
Mira Rosenzweig, Chief Financial 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 at least 10 minutes before the start of the call.
US: 1 888 668 9141 at 10:00 am Eastern Time
Israel: 03 918 0644 at 5:00 pm Israel Time
International: +972 3 918 0644
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.
Contact:
CAMTEK LTD.
Mira Rosenzweig, CFO
Tel: +972-4-604-8308
Mobile: +972-54-9050703
mirar@camtek.co.il
IR INTERNATIONAL
CCG Investor Relations
Ehud Helft / Kenny Green
Tel: (US) 1 646 201 9246
camtek@ccgisrael.com
ABOUT CAMTEK LTD.
With headquarters in Migdal Ha’Emek Israel, Camtek Ltd., designs, develops, manufactures, and markets automatic optical
inspection systems and related products. Camtek’s automatic inspection systems are used to enhance both production
processes and yield for manufacturers in the printed circuit board industry, the high density interconnect substrate
industry and the semiconductor manufacturing and packaging industry. This press release is available at www.camtek.co.il
This press release may contain projections or other forward-looking [state]ments regarding future events or the future
performance of the Company. These [state]ments 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, difficulties surrounding the timely
development of our new products and their adoption by the market, increased competition in the industry, price reductions,
litigation risks, 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 for net income and basic and diluted earnings per share 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 that
enhances management’s and investors’ ability to evaluate the Company’s net income and earnings per share and to compare it
with historical net income and earnings per share.
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.
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