Camtek Announces First Quarter 2020 Results
First quarter revenue $30.2 million; Second quarter expected between $36-38 million
Record backlog and strong visibility into the second and third quarters;
MIGDAL HAEMEK, Israel –May 11, 2020 – Camtek Ltd. (NASDAQ: CAMT; TASE: CAMT), today announced its financial results for the first quarter 2020.
Highlights of the First Quarter of 2020
Revenues of $30.2 million;
- Shipments to customers amounted to approximately $33 million, however, about $3 million of this was not recognized due to the Coronavirus related delays in installations and in accordance with our revenue recognition policy;
- GAAP operating income of $2.9 million; non-GAAP operating income of $3.7 million;
- GAAP net income of $2.8 million and non-GAAP net income of $3.6 million; and
- Operating cash flow of $1.3 million.
Management expects revenues for the second quarter to be between $36-38 million. Based on orders on hand, management further expectscontinued revenue growth and improved profitability in the third quarter.
Rafi Amit, Camtek’s CEO, commented, “Camtek is the leader in the 3D metrology arena. Ourstrategy is to become a leading supplier in the 2D inspection segment as well. In the first half of 2020, we have expanded and strengthened our position in this segment. Some of our customers ordered multiple 2D Inspection machines with basic configuration which affected our average selling price (ASP). We expect these customers to purchase in the future machines for more complex applications with higher ASPs and margins.”
Continued Mr. Amit, “We are seeing strong business momentum. We entered the second quarter with record backlog resulting in good visibility and we expect a significant increase in revenue to between $36-38 million. In the third quarter, we see increased orders for machines with more advanced capabilities and we expect to show an improvement in profitability. It is important to stress thatwe are still within the Coronavirus pandemic and it is difficult to anticipate its full magnitude and impact on our business in the coming months.”
First Quarter 2020 Financial Results
Revenuesfor the first quarter of 2020 were $30.2 million, a decrease of 11% compared with the first quarter of 2019.
Gross profit on a GAAP basis in the quarter totaled $13.6 million (44.9% of revenues), compared to a gross profit of $17.2 million (50.5% of revenues) in the first quarter of 2019. Gross profit on a non-GAAP basis in the quarter totaled $13.6 million (45.2% of revenues), compared to $17.2 million (50.6% of revenues) in the first quarter of 2019. The decrease in the gross margin in the quarter was due to lower revenue and a less favorable product mix in the quarter.
Operating profit on a GAAP basis in the quarter totaled $2.9 million (9.5% of revenues), compared to an operating profit of $6.7 million (19.6% of revenues) in the first quarter of 2019. Operating profiton a non-GAAP basis in the quarter totaled $3.7 million (12.2% of revenues), compared to $7.3 million (21.5% of revenues) in the first quarter of 2019.
Net income on a GAAP basis in the quarter totaled $2.8 million, or $0.07 per diluted share, compared to net income of $6.0 million, or $0.16 per diluted share, in the first quarter of 2019. Net income on a non-GAAP basis in the quarter totaled $3.6 million, or $0.09 per diluted share, compared to non-GAAP net income of $6.7 million, or $0.18 per diluted share, in the first quarter of 2019.
Cash and cash equivalents and short-term deposits, as of March 31, 2020 were $90.6 million compared to $89.5 million as of December 31, 2019. During the quarter, Camtek generated $1.3 million in operating cash flow.
Camtek will host a conference call today, May 11, 2020, at 9:00am ET.
Rafi Amit, CEO, Moshe Eisenberg, CFO and Ramy Langer, COO 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 9:00am Eastern Time
Israel: 03 918 0609 at 4:00pm Israel Time
International: +972 3 918 0609
For those unable to participate, the teleconference will be available for replay on Camtek’s website at https://www.camtek.com beginning 24 hours after the call.