MIGDAL HAEMEK, Israel, May 10, 2023
/PRNewswire/ -- Camtek Ltd. (NASDAQ: CAMT) (TASE: CAMT), today
announced its financial results for the first quarter ended
March 31, 2023.
Highlights of the First Quarter of 2023
- Quarterly revenues of $72.5
million; a 6% decrease year-over-year;
- GAAP operating income of $14.2
million; non-GAAP operating income of $17.4 million, representing an operating margin
of 19.6% and 24.0% respectively;
- GAAP net income of $17.2 million
and non-GAAP net income of $20.4
million;
- Positive operating cash-flow of $17
million.
Forward-Looking Expectations
For the second quarter, management expects similar level of
revenues as achieved in the first quarter.
Management Comment
Rafi Amit, Camtek's CEO
commented, "We continue to see solid business, particularly in
our main segment, Advanced Packaging, which accounted for 60% of
our revenues. In the first quarter, we shipped multiple systems to
six tier-1 customers in the Advanced Packaging and Heterogeneous
Integration space, contributing more than 40% of quarterly
revenues. Among others, we received a strategically important order
for nine machines from a tier-1 customer for Advanced Packaging
applications, to be delivered in the second and third quarters of
this year."
Concluded Mr Amit "Following our strong growth in recent
years and given the current slowdown in our end-markets, we are
currently making efforts to optimize our cost structure, mainly on
the gross margin level, while maintaining flexibility at the
inventory level to support growth once the market picks up again.
At the same time, we continue our investment in R&D with plans
to release new products later this year."
First Quarter 2023 Financial Results
Revenues for the first quarter of 2023 were
$72.5 million. This compares to first
quarter 2022 revenues of $77.2
million, a decrease of 6%, which reflect market trends.
Gross profit on a GAAP basis in the quarter totaled
$33.9 million (46.7% of revenues), a
decline of 15% compared to a gross profit of $39.9 million (51.7% of revenues) in the first
quarter of 2022.
Gross profit on a non-GAAP basis in the quarter totaled
$34.3 million (47.3% of revenues), a
decline of 15% compared to a gross profit of $40.2 million (52.0% of revenues) in the first
quarter of 2022.
Operating profit on a GAAP basis in the quarter totaled
$14.2 million (19.6% of revenues), a
decrease of 27% compared to an operating profit of $19.5 million (25.3% of revenues) in the first
quarter of 2022.
Operating profit on a non-GAAP basis in the quarter
totaled $17.4 million (24.0% of
revenues), a decrease of 22% compared to $22.2 million (28.8% of revenues) in the first
quarter of 2022.
Net income on a GAAP basis in the quarter totaled
$17.2 million, or $0.36 per diluted share, compared to net income
of $18.4 million, or $0.39 per diluted share, in the first quarter of
2022.
Net income on a non-GAAP basis in the quarter totaled
$20.4 million, or $0.42 per diluted share, compared to a non-GAAP
net income of $21.0 million, or
$0.44 per diluted share, in the first
quarter of 2022.
Cash and cash equivalents and deposits, as of
March 31, 2023, were $492.7 million compared to $478.7 million as of December 31, 2022. During the first quarter, the
Company generated net operating cash of $17.1 million.
Zoom Conference Call
Camtek will host a Zoom conference call today, May 10, 2023, at 9:00 am
ET (16:00 Israel time).
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 in the Zoom call, please register using the
following link, which will email the link with which to access the
video call:
https://us06web.zoom.us/webinar/register/WN_4CeLUvhsTPaYbgfP8aQGOQ
For those wishing to listen via phone, following registration,
investors may dial: 1 929 205 6099 with webinar ID 841 8425
9353.
For those unable to participate, a recording will be available
on Camtek's website at http://www.camtek.com within a few
hours after the call.
A summary presentation of the quarterly results will also be
available on Camtek's website.
ABOUT CAMTEK LTD.
Camtek is a leading manufacturer of metrology and inspection
equipment and a provider of software solutions serving the Advanced
Packaging, Memory, CMOS Image Sensors, MEMS, RF and other segments
in the mid end of the semiconductor industry.
Camtek provides dedicated solutions and crucial
yield-enhancement data, enabling manufacturers to improve yield and
drive down their production costs.
With eight offices around the world, Camtek has best-in-class
sales and customer support organization, providing tailor-made
solutions in line with customers' requirements.
This press release is available
at http://www.camtek.com
This press release contains statements that may constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements are based on Camtek's current beliefs, expectations and
assumptions about its business and industry, all of which may
change. Forward-looking statements can be identified by the
use of words including "believe," "anticipate," "should," "intend,"
"plan," "will," "may," "expect," "estimate," "project,"
"positioned," "strategy," and similar expressions that are intended
to identify forward-looking statements, including our expected
revenue for the second quarter of 2023 and full year 2023 and
statements relating to the compound semiconductors market and our
position in this market and the anticipated timing of delivery of
the systems. These forward-looking statements involve known and
unknown risks and uncertainties that may cause the actual results,
performance or achievements of Camtek to be materially different
from any future results, performance or achievements expressed or
implied by such forward-looking statements. Factors that may cause
our actual results to differ materially from those contained in the
forward-looking statements include, but are not limited to, the
impact of any new or revised export and/or import and
doing-business regulations or sanctions, such as changes in U.S.
trade policies; the risks relating to the concentration of a
significant portion of our business in certain countries in the
Asia Pacific Region, particularly China (which is our largest territory),
Taiwan and Korea; the impact of
the war in Ukraine, rising
inflation, rising interest rates, volatile exchange rates and
commodities' prices, and continuing or new effects as a result of
the COVID-19 pandemic; our dependency upon the semiconductor
industry and the risk that unfavorable economic conditions or low
capital expenditures may negatively impact our operating results;
anticipated trends and impacts related to industry component and
substrate shortages and other supply chain challenges; the future
purchase, use, and availability of components supplied by third
parties; impurities and other disruptions to our customers'
operations, which could lower production yields or interrupt
manufacturing, and could result in the cancellation or delay of
purchases of our products; and those other factors discussed in our
Annual Report on Form 20-F and other documents filed by the Company
with the SEC as well as other documents that may be subsequently
filed by Camtek from time to time with the SEC. We caution you not
to place undue reliance on forward-looking statements, which speak
only as of the date hereof. Camtek does not assume any obligation
to update any forward-looking statements in order to reflect events
or circumstances that may arise after the date of this release
unless required by law.
While we believe that we have a reasonable basis for each
forward-looking statement contained in this press release, we
caution you that these statements are based on a combination of
facts and factors currently known by us and our projections of the
future, about which we cannot be certain. In addition, any
forward-looking statements represent Camtek's views only as of the
date of this press release and should not be relied upon as
representing its views as of any subsequent date. Camtek does not
assume any obligation to update any forward-looking statements
unless required by law.
This press release provides financial measures that exclude
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.
CAMTEK LTD. and its
subsidiaries
|
Consolidated Balance
Sheets (unaudited)
|
(In
thousands)
|
|
March
31,
|
December
31,
|
|
2023
|
2022
|
|
U.S. Dollars (In
thousands)
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
189,199
|
148,156
|
Short-term
deposits
|
226,500
|
251,500
|
Trade accounts
receivable, net
|
66,304
|
80,611
|
Inventories
|
64,536
|
65,541
|
Other current
assets
|
15,032
|
11,156
|
|
|
|
Total current
assets
|
561,571
|
556,964
|
|
|
|
|
|
|
|
|
|
Long-term
deposits
|
77,000
|
79,000
|
Long term
inventory
|
6,533
|
5,357
|
Deferred tax assets,
net
|
874
|
1,004
|
Other assets,
net
|
1,566
|
1,024
|
Property, plant and
equipment, net
|
35,213
|
33,141
|
Intangible assets,
net
|
608
|
597
|
|
|
|
Total non-current
assets
|
121,794
|
120,123
|
|
|
|
Total
assets
|
683,365
|
677,087
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
Current
liabilities
|
|
|
Trade accounts
payable
|
28,059
|
31,667
|
Other current
liabilities
|
46,394
|
56,833
|
|
|
|
Total current
liabilities
|
74,453
|
88,500
|
|
|
|
Long term
liabilities
|
|
|
Other long-term
liabilities
|
8,356
|
8,748
|
Convertible
notes
|
196,010
|
195,737
|
|
204,366
|
204,485
|
|
|
|
Total
liabilities
|
278,819
|
292,985
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
Shareholders'
equity
|
|
|
Ordinary shares NIS
0.01 par value, 100,000,000 shares authorized at March 31, 2023 and
at December 31, 2022;
|
|
|
46,665,240
issued shares at March 31, 2023 and
46,505,318 at December 31,
2022;
|
|
|
44,572,864
shares outstanding at March 31, 2023 and
44,412,942 at December 31,
2022
|
175
|
175
|
Additional paid-in
capital
|
190,304
|
187,105
|
Retained
earnings
|
215,965
|
198,720
|
|
406,444
|
386,000
|
Treasury stock, at cost
(2,092,376 as of March 31, 2023 and December 31, 2022)
|
(1,898)
|
(1,898)
|
|
|
|
Total shareholders'
equity
|
404,546
|
384,102
|
|
|
|
Total liabilities
and shareholders' equity
|
683,365
|
677,087
|
Camtek
Ltd.
|
Consolidated
Statement of Income (unaudited)
|
|
(in thousands,
except share data)
|
|
|
Three months
ended
March
31,
|
Year
ended
December
31,
|
|
|
2023
|
2022
|
2022
|
|
|
U.S. dollars (In thousands)
|
Revenues
|
|
72,457
|
77,166
|
320,909
|
Cost of
revenues
|
|
38,593
|
37,308
|
161,053
|
|
|
|
|
|
Gross
profit
|
|
33,864
|
39,858
|
159,856
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
Research and
development
|
|
7,554
|
7,677
|
28,859
|
Selling, general and
administrative
|
|
12,115
|
12,655
|
49,499
|
|
|
|
|
|
Total operating
expenses
|
|
19,669
|
20,332
|
78,358
|
|
|
|
|
|
Operating
profit
|
|
14,195
|
19,526
|
81,498
|
|
|
|
|
|
Financial income,
net
|
|
5,110
|
633
|
6,690
|
|
|
|
|
|
Income before
incomes taxes
|
|
19,305
|
20,159
|
88,188
|
|
|
|
|
|
Income tax
expense
|
|
(2,060)
|
(1,781)
|
(8,239)
|
|
|
|
|
|
Net
income
|
|
17,245
|
18,378
|
79,949
|
|
|
|
|
|
|
|
|
|
Basic net earnings
per share (in US dollars)
|
0.39
|
0.42
|
1.81
|
|
|
|
|
|
|
|
|
Diluted net earnings
per share (in US dollars)
|
0.36
|
0.39
|
1.66
|
|
|
|
|
Weighted average
number of
|
|
|
|
ordinary
shares outstanding (in thousands):
|
|
|
|
|
|
|
|
Basic
|
44,522
|
43,852
|
44,158
|
|
|
|
|
Diluted
|
48,436
|
48,146
|
48,229
|
Camtek
Ltd.
|
Reconciliation of
GAAP To Non-GAAP result
|
|
(In thousands,
except share data)
|
|
|
Three months
ended
March
31,
|
Year ended
December 31
|
|
2023
|
2022
|
2022
|
|
U.S.
dollars
|
U.S.
dollars
|
|
|
|
|
Reported net income
attributable
to Camtek Ltd. on GAAP basis
|
17,245
|
18,378
|
79,949
|
|
|
|
|
Share-based
compensation
|
3,194
|
2,665
|
10,523
|
Non-GAAP net
income
|
20,439
|
21,043
|
90,472
|
|
|
|
|
Non –GAAP net income
per share,
diluted
|
0.42
|
0.44
|
1.88
|
Gross margin on GAAP
basis
|
46.7 %
|
51.6 %
|
49.8 %
|
Reported gross
profit on GAAP basis
|
33,864
|
39,858
|
159,856
|
Share-based
compensation
|
392
|
302
|
1,217
|
Non- GAAP gross
margin
|
47.3 %
|
52.0 %
|
50.2 %
|
Non-GAAP gross
profit
|
34,256
|
40,160
|
161,073
|
|
|
|
|
Reported operating
income
attributable to
Camtek Ltd. on
GAAP basis
|
14,195
|
19,526
|
81,498
|
Share-based
compensation
|
3,194
|
2,665
|
10,523
|
Non-GAAP operating
income
|
17,389
|
22,191
|
92,021
|
CAMTEK
LTD.
Moshe Eisenberg,
CFO
Tel: +972 4 604
8308
Mobile: +972 54 900
7100
moshee@camtek.com
|
INTERNATIONAL
INVESTOR RELATIONS
EK Global Investor
Relations
Ehud Helft
Tel: (US) 1 212 378 8040
camtek@ekgir.com
|
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SOURCE Camtek Ltd.