CAMTEK ANNOUNCES RESULTS FOR THE THIRD QUARTER OF 2019
Expects full year 2019 revenue to reach record level of about $133 million
MIGDAL HAEMEK, Israel –November 7, 2019 – Camtek Ltd. (NASDAQ: CAMT; TASE: CAMT), today announced its financial results for the quarter ended September 30, 2019.
Highlights of the Third Quarter 2019
- Revenues were at $32.5 million;
- GAAP gross margin at 46.9%; Non-GAAP gross margin at 47.1%;
- GAAP operating income was $4.4 million and non-GAAP operating income was $5.3 million, representing margins of 13.5% and16.2%, respectively;
- GAAP net income of $4.2 million, or $0.11 per diluted share, and non-GAAP net income of $5.0 million, or $0.13 per diluted share;
- Operating cash flow of $3.8 million with $83.0 million in cash and short-term deposits at quarter-end; and
- Expect fourth quarter revenues at similar levels to that of the third quarter, with improved profitability.
Rafi Amit Camtek’s CEO commented, “Camtek’s third quarter results reflect continued solid execution, with revenues in the upper limit of our guidance range despite the current weakersemiconductor market. Our gross margin came in below previous quarters mainly as a result of a less favorable product mix in the quarter. We expect an improvement in the gross and operating margins in the fourth quarter.”
Continued Mr. Amit, “China has grown to become our largest territory, and we expect this to continue into next year. Orders have been for various applications including Advanced Packaging and Front-End Macro inspection, as well as new customers opening facilities and purchasing an initial tool, with the potential for further expansion. Since the beginning of the year we have gained 14 new customers, most of them in China. Furthermore, we have strengthened our position in two key market segments: power devices and CMOS image sensors. During the quarter, we received and installed two multiple machine orders for these segments which are expected to continue growing into 2020.”
Concluded Mr. Amit,“Fundamental long-term market drivers remain strong, and Camtek continues to maintain its strong position in the market.Next quarter, we expect revenues at around current levels. This should put us at record revenue level for the year of about $133 million.”
Third Quarter 2019 Financial Results
Revenuesfor the third quarter of 2019 were $32.4 million. This compares to third quarter 2018 revenues of $32.3 million.
Gross profit on a GAAP basis in the quarter totaled $15.2 million (46.9% of revenues), a decline of 6% compared to a gross profit of $16.2 million (50.2% of revenues) in the third quarter of 2018. Gross profiton a non-GAAP basis in the quarter totaled $15.3 million (47.1% of revenues), a decline of 6% compared to a gross profit of $16.2 million (50.4% of revenues) in the third quarter of 2018. The decline in the gross margin is due to less favorable product mix in the third quarter of 2019.
Operating profit on a GAAP basis in the quarter totaled $4.4 million (13.5% of revenues), a decline of 21% compared to an operating income of $5.6 million (17.2% of revenues) in the third quarter of 2018. Operating profiton a non-GAAP basis in the quarter totaled $5.3 million (16.2% of revenues), a decline of 15% compared to $6.2 million (19.2% of revenues) in the third quarter of 2018. The decline in the operating margin is due to the lower gross margin in the third quarter of 2019.
Net income on a GAAP basis in the quarter totaled $4.2 million, or $0.11 per diluted share, a decline of 18% compared to net income of $5.1 million, or $0.14 per diluted share, in the third quarter of 2018. Net income on a non-GAAP basis in the quarter totaled $5.0 million, or $0.13 per diluted share, a decline of 12% compared to a non-GAAP net income of $5.7 million, or $0.16per diluted share, in the third quarter of 2018.
Cash and cash equivalents, as of September 30, 2019, were $83.0 million compared to $54.9 million as of December 31, 2018 and $85.3 million as of June 30, 2019. During the quarter the Company generated a positive operating cash flow of $3.8 million and paid a cash dividend of $5.7 million.
Camtek will host a conference call today, November 7, 2019, at 10:00 am 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 10am Eastern Time
Israel: 03 918 0609 at 5pm 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.