CAMTEK ANNOUNCES THIRD QUARTER 2016 RESULTS
Q3 revenues of $28.5 million- 8% Year-on-Year increase;
GAAP operating income of $1.7 million; Non-GAAP operating income of $2.7 million;
Expects continued top line growth in Q4
MIGDAL HAEMEK, Israel – November 7, 2016– Camtek Ltd. (NASDAQ: CAMT; TASE: CAMT), today announced its financial results for the quarter ended September 30, 2016.
Highlights of the Third Quarter 2016
- Revenues of $28.5 million, 4% sequential increase;
- GAAP operating income of $1.7 million, representing 5.8% operating margins; Non-GAAP operating income of $2.7 million, representing 9.5% operating margins;
- GAAP operating profit includes a one-time net expense of $0.9 million due the reorganization of the FIT activity;
- GAAP net income of $1.1 million; Non-GAAP net income of $2.1 million;
Expecting continued growth driven by semiconductor advance packaging applications:
Fourth quarter revenue guidance of $28.5 million to $29.5 million, bringing full year 2016 revenues to a record $109 million in the mid-point of the guidance.
Rafi Amit, Camtek’s Chairman and CEO, commented, “We are very pleased with the results of this quarter and our revenue guidance forecasts that 2016 will end as a record year for us. Our ongoing revenue growth was once again driven by solid performance in our semiconductor business. Approximately 40% of the systems shipped this quarter will be used in the advanced packaging market. As this market segment remains strong, we continue our penetration to the advanced packaging 2D inspection with new customers for Fan-out applications using our unique inspection capabilities.”
Added Mr. Amit, “We are also pleased with our improvement in profitability which was mainly due to lower operating expenses. Furthermore, following the reorganization of our digital printing activity in August, we expect to see additional operating expense savings ahead. We therefore look forward to demonstrating increased profitability margins for Camtek in the quarters ahead.”
Third Quarter 2016 Financial Results
Revenuesfor the third quarter of 2016 were $28.5 million. This compares to third quarter 2015 revenues of $26.3 million, a growth of 8% and prior quarter revenues of $27.3 million, an increase of 4%.
Gross profit on a GAAP basis in the quarter totaled $7.5 million (26.2% of revenues), compared to $11.8 million (44.8% of revenues) in the third quarter 2015 and $12.7 million in the prior quarter (46.7% of revenues). The gross profit on a GAAP basis includes the $4.9 million effect of the FIT re-organization including the write-off of inventory and other one-time expenses.
Gross profit on a non-GAAP basis in the quarter totaled $12.4 million (43.6% of revenues), compared to $11.8 million (44.9% of revenues) in the third quarter 2015 and $12.8 million in the prior quarter (46.8% of revenues).
Operating profit on a GAAP basis in the quarter totaled $1.7 million (5.8% of revenues), compared to $1.8 million (6.8% of revenues) in the third quarter 2015 and an operating profit of $1.7 million (6.4% of revenues) in the prior quarter. The operating profit included a one-time net expense of $0.9 million due the reorganization of the FIT activity. This one-time expense includes a $5.6 million inventory and fixed asset write-off, other expenses of $0.3 million, partially offset by income of $5.0 million related to a write-off of liabilities to the Office of the Chief Scientist in Israel.
Operating profit on a non-GAAP basis in the quarter, which excludes the above-mentioned one-time expenses, totaled $2.7 million (9.3% of revenues), compared to $1.9 million (7.1% of revenues) in the third quarter 2015 and $1.9 million in the prior quarter (6.8% of revenues).
Net income on a GAAP basis in the quarter totaled $1.1 million, or $0.03 per diluted share. This compares to net income of $1.0 million, or $0.03 per diluted share, in the third quarter 2015 and a net income of $1.3 million, or $0.04 per diluted share, in the prior quarter.
Net income on a non-GAAP basis in the quarter totaled $2.1 million, or $0.06 per diluted share. This compares to net income of $1.2 million, or $0.03 per diluted share, in the third quarter 2015 and a net income of $1.5 million, or $0.04 per diluted share, in the prior quarter.
Cash, cash equivalents, short and long-term restricted deposits, as of September 30, 2016 were $19.7 million compared to $38.7 million as of December 31, 2015. The Company reported a positive operating cash flow of $3.0 million during the quarter (excluding the $14.6 million payment to Rudolph for the IP litigation).
Camtek will host a conference call today, Monday, November 7, 2016, at 9:30 am ET.
Rafi Amit, Chairman and CEO, and Moshe Eisenberg, CFO, 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 9:30 am Eastern Time
Israel: 03 918 0610 at 4:30 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 https://www.camtek.com beginning 24 hours after the call.