CAMTEK ANNOUNCES SECOND QUARTER 2010 RESULTS
CONTINUED STRONG IMPROVEMENT IN REVENUES AND PROFITABILITY
MIGDAL HAEMEK, Israel – August 5, 2010 – Camtek Ltd. (NASDAQ and TASE: CAMT), today announced its financial results for the
quarter ended June 30, 2010.
Main Financial Highlights of the Second Quarter
• Revenues of $20.8 million representing a 66% year-over-year increase and an 18% sequential increase;
• Non-GAAP operating income of $1.7 million compared with a non-GAAP operating loss of $2.1 million in the second
quarter of 2009. GAAP operating income reached $1.2 million;
• Non-GAAP net income of $1.4 million compared with a non-GAAP net loss of $2.0 million in the second quarter of 2009.
GAAP net income reached $460 thousands; and
• Cash and cash equivalents balance on June 30, 2010 of $14.1 million.
Results for the three months ended June 30, 2010 on a non-GAAP basis, exclude the following items: (i) expenses with respect
to the acquisition of SELA and Printar; (ii) share based compensation expenses and (iii) restructuring expenses due to
reorganization in the Company’s subsidiary in Europe. A reconciliation between the GAAP and non-GAAP results appears in the
tables at the end of this press release.
Second Quarter 2010 Financial Results
Revenues for the second quarter of 2010 increased 66% to $20.8 million, compared to $12.5 million in the second quarter of
2009. Revenues grew 18% sequentially, representing the fifth quarter of continued sequential growth. This growth is a result
of increase in demand from our costumers due to improving market conditions as well as our penetration into new customers
and new product lines.
Gross profit on a GAAP basis for the quarter was $8.8 million (42.4% of revenues), compared to gross profit of $4.2 million
(33.5% of revenues) in the second quarter of 2009. On a non-GAAP basis, gross profit for the quarter of 2010 totaled
$9.1 million (43.5% of revenues). The improvement in the gross margin resulted mainly from the increase in revenues.
Operating income on a GAAP basis, in the second quarter of 2010 was $1.2 million compared with an operating loss of
$2.1 million in the second quarter of 2009. Non-GAAP operating income was $1.7 million in the second quarter of 2010.
Net income on a GAAP basis for the second quarter of 2010 totaled $460 thousand, or $0.02 per diluted share, compared to a
net loss of $2.1 million, or a loss of $0.07 per share, in the second quarter of 2009. On a Non-GAAP basis, net income in
the second quarter of 2010 was $1.4 million, or $0.05 per diluted share.
Cash and cash equivalents as of June 30, 2010 were $14.1 million compared to $16.2 million at the end of the prior quarter.
The decrease resulted mainly from an increase in accounts receivable and inventory due to the increase in sales as well as
the Company’s expectations of increased future demands.
Roy Porat, Camtek’s General Manager, commented, “We are very happy with our results of the quarter which demonstrate the
solid footing underlying the recovery in our markets. The markets in which we operate are all in high utilization, and our
clients are actively expanding their capacity by investing in capital equipment.”
Continued Mr. Porat, “Looking ahead into the second half of 2010 and 2011, we see Camtek’s business evolving from a two
vertical business to a four vertical one, which will further diversify our exposure to the industry cycles in which we
operate. The two new additional product lines of Macro Inspection and Sample Preparation are already starting to contribute
to our top line. We have a number of leads and we aim to turn these leads into sales in the coming quarters.
Concluded Mr. Porat, “With regard to our revenue outlook for the third quarter, we anticipate another quarter of sequential
top-line growth, with revenues reaching between $22-24 million.”
Conference Call
Camtek will host a conference call today, August 5, 2010, at 9:00 am ET. Roy Porat, General Manager of Camtek 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 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.co.il/ beginning 24 hours after the call.
ABOUT CAMTEK LTD.
Camtek Ltd provides automated solutions dedicated for enhancing production processes and yield, enabling our customers new
technologies in two industries: Semiconductors, Printed Circuit Board (PCB) & IC Substrates.
Camtek addresses the specific needs of these industries with dedicated solutions based on a wide and advanced platform of
technologies including intelligent imaging, image processing, ion milling and digital material deposition. Camtek’s solutions
range from micro-to-nano by applying its technologies to the industry-specific requirements.
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, 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 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.
Contact:
CAMTEK LTD.
Mira Rosenzweig, CFO
Tel: +972-4-604-8308
Mobile: +972-54-9050703
mirar@camtek.co.il
INTERNATIONAL INVESTOR RELATIONS
CCG Investor Relations
Ehud Helft / Kenny Green
Tel: (US) 1 646 201 9246
camtek@ccgisrael.com
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