Camtek Announces Record Results For The Fourth Quarter And Full Year Of 2020
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Camtek Announces Record Results For The Fourth Quarter And Full Year Of 2020

Record Revenues of $48.6 million; Expects revenues of $54-56 million in the first quarter and over $110 million in the first half of 2021

MIGDAL HAEMEK, Israel, Feb. 9, 2021 — (PRNewswire) —  Camtek Ltd. (NASDAQ: CAMT) (TASE: CAMT), today announced its financial results for the quarter and year ended December 31, 2020.

Highlights of the Fourth Quarter of 2020

Highlights of the Full Year 2020

Forward-Looking Expectations

Management expects continued revenue growth in the first quarter of 2021, with revenues of between $54-56 million. Just in the last two weeks the Company has received multiple systems orders from several customers totaling $25 million. The orders received so far, together with the sales pipeline, point to a strong revenue forecast for the first half of 2021. Management is anticipating revenues of over $110 million in the first half of 2021, implying at least 65% growth over the first half of 2020.

Management Comment

Rafi Amit, Camtek's CEO commented, "A record fourth quarter concluded an exceptional year for Camtek. While we started 2020 with a lot of concerns due to COVID-19, we ended the year with unprecedented business momentum. We have leveraged our flexible operational infrastructure and increased our support team in the field in order to successfully meet this growth.

"In 2020, we extended our market presence by penetrating new customers as well as expanding our presence at existing customers. From a financial perspective, in the second half of 2020, we saw improved margins and we see this trend continuing into 2021."

Concluded Mr. Amit, "2021 has started with strong order momentum and we expect it to be a record year in sales and growth, along with improved profitability."

Fourth Quarter 2020 Financial Results

Revenues for the fourth quarter of 2020 were $48.6 million. This compares to fourth quarter 2019 revenues of $33.2 million, a growth of 46%.

Gross profit on a GAAP basis in the quarter totaled $23.3 million (47.9% of revenues), up 47% compared to a gross profit of $15.8 million (47.7% of revenues) in the fourth quarter of 2019. Gross profit on a non-GAAP basis in the quarter totaled $23.4 million (48.2% of revenues), up 47% compared to a gross profit of $15.9 million (48.0% of revenues) in the fourth quarter of 2019.

Operating profit on a GAAP basis in the quarter totaled $8.0 million (16.5% of revenues), an increase of 75% compared to an operating profit of $4.6 million (13.8% of revenues) in the fourth quarter of 2019. Operating profit on a non-GAAP basis in the quarter totaled $9.2 million (18.9% of revenues), an increase of 70% compared to $5.4 million (16.3% of revenues) in the fourth quarter of 2019.

Net income on a GAAP basis in the quarter totaled $7.7 million, or $0.18 per diluted share, compared to net income of $4.6 million, or $0.12 per diluted share, in the fourth quarter of 2019. Net income on a non-GAAP basis in the quarter totaled $8.8 million, or $0.21 per diluted share, compared to a non-GAAP net income of $5.4 million, or $0.14 per diluted share, in the fourth quarter of 2019. 

Full Year 2020 Results Summary

Revenues for 2020 were $155.9 million, an increase of 16.3% over the $134.0 million reported in 2019.

Gross profit on a GAAP basis totaled $73.2 million (47.0% of revenues), an increase of 13% compared to $64.8 million (48.3% of revenues) in 2019.  Gross profit on a non-GAAP basis totaled $73.7 million (47.3% of revenues), an increase of 13% compared to $65.1 million (48.6% of revenues) in 2019. 

Operating income on a GAAP basis totaled $22.6 million (14.5% of revenues), compared to operating income of $22.0 million (16.4% of revenues) in 2019.  Operating income on a non-GAAP basis totaled $26.8 million (17.2% of revenues), an increase of 8% compared to $25.0 million (18.7% of revenues) in 2019.

Net income on a GAAP basis totaled $21.8 million, or $0.54 per diluted share. This compares to net income of $22.0 million, or $0.57 per diluted share, in 2019. Net income on a non-GAAP basis totaled $26.0 million, or $0.64 per diluted share. This is an increase of 9% compared to net income of $23.9 million, or $0.62 per diluted share, in 2019.

Cash and cash equivalents and short-term deposits, as of December 31, 2020, were $177.8 million compared to $89.5 million as of December 31, 2019 and $106.0 million as of September 30, 2020. During the fourth quarter, the Company generated an operating cash flow of $8.3 million and raised net proceeds of $64.3 million via a public offering.

Conference Call

Camtek will host a video conference call/webinar today via Zoom, February 9, 2021, 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 video call please visit the link in the investor relations section of Camtek's website: http://www.camtek.com/investors/overview  
Passcode: 039565

or click here.

Passcode: 039565 

For those wishing to listen via phone, please dial:

US: +1 312 626 6799  or +1 346 248 7799  or +1 646 558 8656  or +1 669 900 9128  or +1 253 215 8782  or +1 301 715 8592

Israel: +972 553 301762 or +972 3 978 6688

Webinar ID: 847 4246 6872

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 projections or other forward-looking statements regarding future events or the future performance of the Company. These statements are only predictions that represent our views only as of the date they are made and may change as time passes. We do not assume any obligation to update that information, except as required by law. These forward-looking statements are subject to risks and uncertainties that may cause actual events or results to differ materially from those projected, including as a result of the effects of general economic conditions; the effect of the COVID-19 crisis on the global markets and on the markets in which we operate, including the risk of a continued disruption to our and our customers', providers', business partners and contractors' business as a result of the outbreak and effects of the COVID-19 pandemic; the risks relating to the concentration of a significant portion of Camtek's expected business in certain countries, particularly China, from which we expect to generate significant portion of our revenues for the coming few quarters, but also Taiwan and Korea, including the risks of deviations from our expectations regarding timing and size of orders from customers in these countries; 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; price reductions; as well as due to other risks identified in our Annual Report on Form 20-F and other documents filed by the Company with the SEC.

This press release provides financial measures that exclude: (i) share based compensation expenses; (ii) certain Chroma transaction expenses; and (iii) discontinued operations, 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

(In thousands)


December 31,

December 31,


2020

2019


U.S. Dollars (In thousands)



Assets






Current assets



Cash and cash equivalents

105,815

38,047

Short-term deposits

72,000

51,500

Trade accounts receivable, net

41,001

31,443

Inventories

39,736

23,803

Other current assets

3,366

2,909




Total current assets

261,918

147,702




Fixed assets, net

20,398

18,526




Long term inventory

4,416

2,791

Deferred tax asset, net

482

746

Other assets, net

85

113

Intangible assets, net

609

491


5,592

4,141

Total assets

287,908

170,369

Liabilities and shareholders' equity



Current liabilities



Trade accounts payable

27,180

11,334

Other current liabilities

30,204

20,272

Total current liabilities

57,384

31,606

Long term liabilities



Other long term liabilities

3,260

2,461


3,260

2,461

Total liabilities

60,644

34,067




Commitments and contingencies






Shareholders' equity



Ordinary shares NIS 0.01 par value, 100,000,000 shares authorized at
December 31, 2020 and at December 31, 2019;



45,365,354 issued shares at December 31, 2019 and 40,742,355 at
December 31, 2019;



43,272,978 shares outstanding at December 31, 2020 and
38,649,979 at December 31, 2019

171

157

Additional paid-in capital

170,497

101,327

Retained earnings

58,494

36,716


229,162

138,200

Treasury stock, at cost (2,092,376  as of December 31, 2020 and
December 31, 2019)

 

(1,898)

 

(1,898)

Total shareholders' equity

227,264

136,302

Total liabilities and shareholders' equity

287,908

170,369

 

 

 

Camtek Ltd.

Consolidated Statements of Operations


(in thousands, except share data)


Year ended December 31,

Three Months ended December 31,


2020

2019

2020

2019


U.S. dollars

U.S. dollars






Revenues

155,859

134,019

48,619

33,201

Cost of revenues

82,628

69,235

25,313

17,360






Gross profit

73,231

64,784

23,306

15,841











Research and development costs

19,575

16,331

5,623

4,440

Selling, general and administrative expense

31,032

26,481

9,658

6,813


50,607

42,812

15,281

11,253











Operating income

22,624

21,972

8,025

4,588






Financial income (expense), net

775

801

(183)

461






Income before income taxes

23,399

22,773

7,842

5,049






Income taxes expense

(1,621)

(1,950)

(176)

(442)






Net income from continuing operations

21,778

20,823

7,666

4,607











Discontinued operations *





Income from discontinued operations





Income before tax expense

-

1,257

-

-

Income taxes (expense)

-

(94)

-

-

Income from discontinued operations

-

1,163

-

-






Net income

21,778

21,986

7,666

4,607





*Relates to the earn-out payment received from the sale of the PCB business.

 

 

 

Net income per ordinary share:


Year ended December 31,

Three Months ended December 31,


2020

2019

2020

2019


U.S. dollars

U.S. dollars






Basic earnings from continuing operation

0.55

0.55

0.19

0.12






Basic earnings from discontinued





operation *

-

0.03

-

-






Basic net earnings

0.55

0.58

0.19

0.12






Diluted earnings from continuing





 operation

0.54

0.54

0.18

0.12






Diluted earnings from discontinued





operation *

-

0.03

-

-






Diluted net earnings

0.54

0.57

0.18

0.12






Weighted average number of





  ordinary shares outstanding:










Basic

39,383

37,626

40,894

38,630






Diluted

40,372

38,432

41,964

39,497

 

 

 

Reconciliation of GAAP To Non-GAAP results


(In thousands, except share data)


Year ended December 31,

Three Months ended December 31,


2020

2019

2020

2019


U.S. dollars

U.S. dollars






Reported net income attributable to 
     Camtek Ltd. on GAAP basis

21,778

21,986

7,666

4,607

Share-based compensation

4,224

2,892

1,171

824

Chroma transaction expenses (1)

-

136

-

-

Attributable to discontinued operations

-

(1,163)

-

-

Non-GAAP net income

26,002

23,851

8,837

5,431






Non–GAAP net income per diluted share

0.63

0.62

0.21

0.14

Gross margin on GAAP basis

47.0%

48.3%

47.9%

47.7%

Reported gross profit on GAAP basis

73,321

64,784

23,306

15,841

Share-based compensation

429

292

121

85

Non-GAAP gross margin

47.3%

48.6%

48.2%

48.0%

Non-GAAP gross profit 

73,750

65,076

23,427

15,926






Reported operating income (loss)
attributable to Camtek Ltd. on GAAP
basis

 

 

22,624

 

 

21,972

 

 

8,025

 

 

4,588

Share-based compensation

4,224

2,892

1,171

824

Chroma transaction expenses (1)

-

136

-

-

Non-GAAP operating income

26,848

25,000

9,196

5,412





(1)  In the second and third quarters of 2019, certain transaction expenses were incurred in relation to the technological cooperation agreement with Chroma. These were recorded under operating expenses.





 

 

CAMTEK LTD.

Moshe Eisenberg, CFO

Tel: +972 4 604 8308

Mobile: +972 54 900 7100

moshee@camtek.com 

INTERNATIONAL INVESTOR RELATIONS  

GK Investor Relations

Ehud Helft
Tel: (US) 1 646 688 3559

camtek@gkir.com

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SOURCE Camtek Ltd

Contact:
Company Name: Camtek Ltd
Web: http://www.camtek.com
Financial data for Camtek Ltd