CAMTEK ANNOUNCES THIRD QUARTER 2010 RESULTS
65% year over year growth in revenue and increasing profitability
MIGDAL HAEMEK, Israel – November 4, 2010 – Camtek Ltd. (NASDAQ and TASE: CAMT), today announced its financial results for
the quarter ended September 30, 2010.
Financial Highlights of the Third Quarter
• Revenues of $23.9 million representing a 65% year-over-year increase and a 15% sequential increase;
• Non-GAAP operating income of $2.5 million compared with a non-GAAP operating loss of $0.1 million in the third
quarter of 2009. GAAP operating income reached $2.3 million; and
• Non-GAAP net income of $2.5 million compared with a non-GAAP net loss of $0.3 million in the third quarter of 2009.
GAAP net income reached $2.0 million;
Results for the three and nine months ended September 30, 2010 on a non-GAAP basis, exclude the following items: (i) expenses
with respect to the acquisitions of SELA and Printar; (ii) share based compensation expenses; and (iii) restructuring
expenses due to reorganization in the Company’s subsidiaries in Europe and China. Reconciliation between the GAAP and
non-GAAP results appears in the tables at the end of this press release.
Third Quarter 2010 Financial Results
Revenues for the third quarter of 2010 increased 65% to $23.9 million, compared to $14.5 million in the third quarter of 2009
. Revenues grew 15% sequentially, representing the sixth quarter of continued sequential growth. This growth is a result of
the continued increase in demand from customers, due to improving market conditions as well as penetration into new customers and sales of new products.
Gross profit on a GAAP basis for the quarter was $10.9 million (45.6% of revenues), compared to gross profit of $6.1 million
(42% of revenues) in the third quarter of 2009. On a non-GAAP basis, gross profit for the third quarter of 2010 totaled $10.
9 million (45.8% of revenues). The improvement in the gross margin resulted mainly from the increase in revenues.
Operating income on a GAAP basis in the third quarter of 2010 was $2.3 million (9.7% of revenues) compared with an operating
loss of $179 thousand in the third quarter of 2009. Non-GAAP operating income was $2.5 million (10.5% of revenues) in the
third quarter of 2010.
Net income on a GAAP basis for the third quarter of 2010 totaled $2.0 million, or $0.07 per diluted share, compared to a net
loss of $0.3 million, or a loss of $0.01 per share in the third quarter of 2009. On a non-GAAP basis, net income in the
third quarter of 2010 was $2.5 million, or $0.09 per diluted share.
Cash and cash equivalents including restricted cash as of September 30, 2010 was $13.1 million (of which $5.2 million is
restricted), and the Company owed bank debt of $2 million, compared to $14.1 million of unrestricted cash and cash
equivalents and no bank debt, at the end of the prior quarter. The decrease in the cash level in the quarter, resulted mainly
from a negative operating cash flow of $0.9 million, due to an increase in accounts receivable and inventory, because of the
increase in sales as well as the Company’s expectations for increased future demand. The Company also repaid a loan of
$1.7 million to a third party in the third quarter.
In August 2010, the Company signed an agreement with an Israeli bank for a credit line totaling $11.5 million. Out of that,
$2.6 million is a bank loan out of which the Company has already utilized $2 million, and the remaining $8.9 million is a
bank guarantee to support a bond deposited with the U.S. Federal District Court in Minnesota, in order to stay judgment
during the appeal process in a patent infringement case filed against Camtek by a competitor. To secure the above credit line
, the Company deposited $5.2 million of its cash as restricted cash.
Roy Porat, Camtek’s Chief Executive Officer, commented, “We are very pleased with our third quarter results, which
demonstrated very strong growth on both a sequential and year-over-year basis. The markets in which we traditionally operate
continue to be in high utilization, with customers actively expanding their capacity by investing in capital equipment.
In addition, our new product lines of Macro Inspection and Sample Preparation are gaining increasing traction in the market,
and we achieved sales and important penetrations into new customers for both product lines. Our semiconductor revenues have
become an important portion of our overall mix.”
Concluded Mr. Porat, “In terms of our outlook for the fourth quarter, we anticipate maintaining our current high quarterly
revenue level, coming in between $22-$25 million. We also expect our operating cash flow will improve in the fourth quarter
and into next year. Finally, we believe that we will continue to grow into 2011, particularly as our new products and growth
engines begin to more significantly contribute to our revenues.”
Camtek will host a conference call today, November 4, 2010, at 11:00 am ET.
Roy Porat, Chief Executive Officer 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: 1 866 860 9642 at 11:00 am Eastern Time
Israel: 03 918 0609 at 5:00 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.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.
Mira Rosenzweig, CFO
INTERNATIONAL INVESTOR RELATIONS
CCG Investor Relations
Ehud Helft / Kenny Green
Tel: (US) 1 646 201 9246