CAMTEK ANNOUNCES SECOND QUARTER 2015 RESULTS
MIGDAL HAEMEK, Israel – August 3, 2015 – Camtek Ltd. (NASDAQ and TASE: CAMT), today announced its financial results for the quarter ended June 30, 2015.
Highlights of the Second Quarter 2015
- Revenues of $25.4 million, up 17% sequentially and 10% year-over-year driven by sales in the advanced packaging semiconductor market;
- Non-GAAP operating income of $1.2 million; GAAP operating income of $1.1 million;
- Non-GAAP net income of $0.8 million; GAAP net income of $0.6 million;
- Continued growth expected into Q3: guidance of $25.5 to 27 million;
Rafi Amit, Camtek’s Chairman and CEO, commented, “We continue to see strength in our semiconductor sales, with important strategic orders of our system supporting advanced packaging and CMOS image sensor (CIS) applications into new and existing customers. These sales are driving the growth in our semiconductor business.”
Continued Mr. Amit, “We are very pleased with the on-going feedback received from customers who are evaluating the Gryphon system. We recently launched a demo center in China to allow our Taiwanese and Chinese customers the opportunity to see in operation the next generation model, the Gryphon SL, which enables both legend and solder mask deposition. The Gryphon is a brand new and disruptive technology for the PCB industry, designed to replace current solder mask and legend deposition; as such, the sales process for Gryphon is extended and is taking longer than our normal sale cycle. In the coming months, we expect to install a number of additional systems at customers’ sites in Asia and in the US. We believe that we will start recognizing revenues from the Gryphon in 2016.”
“Our third quarter revenue guidance is $25.5-27 million. We are expecting Q3 to be stronger than Q2, based on the success at our existing customers and the penetration of new accounts, coupled with growth of our market segments. We are on track for a strong year for our semiconductor sales in 2015 with expected double digit year-over-year growth.” concluded Mr. Amit.
Second quarter 2015 Financial Results
Revenues for the second quarter of 2015 were $25.4 million. This compares to second quarter 2014 revenues of $23.1 million and first quarter 2015 revenues of $21.8 million.
Gross profit on a GAAP basis in the quarter totaled $10.9 million (42.7% of revenues), compared to $11.5 million (49.5% of revenues) in the second quarter 2014 and $9.8 million in the first quarter of 2015 (45.1% of revenues). The gross margin in the second quarter of last year was particularly high due to a specific high-margin sale in that quarter. In the second quarter of 2015, the gross margin was below the normal range due to less favorable product mix sold in the quarter.
Gross profit on a non-GAAP basis in the quarter totaled $10.9 million (43.7% of revenues), compared to $11.5 million (49.5% of revenues) in the second quarter 2014 and $9.8 million in the first quarter of 2015 (45.2% of revenues).
Operating profit on a GAAP basis in the quarter totaled $1.1 million (4.3% of revenues), compared to $2.6 million (11.1% of revenues) in the second quarter 2014 and $1.1 million in the first quarter of 2015 (5.2% of revenues). General and administrative expenses were particularly high in the quarter due to some additional legal expenses which were incurred in in connection with ongoing patent litigation.
Operating profit on a non-GAAP basis in the quarter totaled $1.2 million (4.5% of revenues), compared to $2.6 million (11.5% of revenues) in the second quarter 2014 and $1.2 million in the first quarter of 2015 (5.5% of revenues).
Financial expenses on a GAAP basis in the quarter totaled $193 thousand, compared to $330 thousand in the second quarter 2014 and $847 thousand in the first quarter of 2015.
Financial expenses on a non-GAAP basis in the quarter totaled $75 thousand, compared to $124 thousand in the second quarter 2014 and $627 thousand in the first quarter of 2015.
Net income on a GAAP basis in the quarter totaled $647 thousand, or $0.02 per diluted share. This compares to net income of $2.0 million, or $0.07 per diluted share, in the second quarter 2014 and a net income of $52 thousand, or $0.00 per diluted share, in the first quarter of 2015.
Net income on a non-GAAP basis in the quarter totaled $825 thousand, or $0.03 per diluted share. This compares to net income of $2.3 million, or $0.08 per diluted share, in the second quarter 2014 and a net income of $335 thousand, or $0.01 per diluted share, in the first quarter of 2015.
Cash, cash equivalents, short and long-term restricted deposits, as of June 30, 2015 were $32.1 million (out of which $7.9 million are restricted deposits) compared to $21.9 million as of March 31, 2015. During the second quarter, the Company raised net cash in the amount of $12 million in a secondary public offering. Operating cash flow during the quarter was negative $2.0 million. This was as a result of investment in working capital to support the expected growth in sales.
Camtek will host a conference call today, August 3, 2015, at 9:00 am ET.
Rafi Amit, Chairman and CEO, and Moshe Eisenberg, 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: 1 888 668 9141 at 9:00 am Eastern Time
Israel: 03 918 0609 at 4:00 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 and technologically advanced solutions dedicated to enhancing production processes, increasing products yield and reliability, enabling and supporting customer's 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 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 certain items such as: (i) amortization of acquired intangible assets and revaluation of liabilities with respect to the acquisitions of Sela and 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.