Thursday, October 27, 2022 4:24:29 PM
Source: PR Newswire (US)
Revenue of $79.6 million & 30% operating margin; Further growth expected in third quarter
MIGDAL HAEMEK, Israel , July 27, 2022 /PRNewswire/ -- Camtek Ltd. (NASDAQ: CAMT) (TASE: CAMT), today announced its financial results for the second quarter ended June 30, 2022.
Camtek logo
Highlights of the Second Quarter of 2022
Record quarterly revenues of $79.6 million; a 18% increase year-over-year;
GAAP operating income of $20.9 million; non-GAAP operating income of $23.8 million, representing an operating margin of 26.2% and 29.9% respectively;
GAAP net income of $19.2 million and non-GAAP net income of $22.1 million;
Positive operating cash flow of $13.0 million.
Forward-Looking Expectations
Management expects continued growth for the third quarter with revenues to be $81-83 million.
Management Comment
Rafi Amit, Camtek's CEO commented, "We ended the second quarter with record results and 18% growth year-over-year. We are aware of concerns about the possibility of slowdown in the semiconductor industry and we are monitoring the situation. At this point we do not see any signs of declining demand for our systems. With our strong backlog, we see continued growth into the second half of the year as well.
Second Quarter 2022 Financial Results
Revenues for the second quarter of 2022 were $79.6 million, an increase of 18% compared to the second quarter of 2021.
Gross profit on a GAAP basis in the quarter totaled $40.2 million (50.5% of revenues), compared to a gross profit of $35.0 million (51.9% of revenues) in the second quarter of 2021. Gross profit on a non-GAAP basis in the quarter totaled $40.5 million (50.9% of revenues), compared to $35.2 million (52.1% of revenues) in the second quarter of 2021.
Operating profit on a GAAP basis in the quarter totaled $20.9 million (26.2% of revenues), compared to an operating profit of $17.0 million (25.3% of revenues) in the second quarter of 2021. Operating profit on a non-GAAP basis in the quarter totaled $23.8 million (29.9% of revenues), compared to $18.5 million (27.4% of revenues) in the second quarter of 2021.
Net income on a GAAP basis in the quarter totaled $19.2 million, or $0.40 per diluted share, compared to net income of $15.7 million, or $0.35 per diluted share, in the second quarter of 2021. Net income on a non-GAAP basis in the quarter totaled $22.1 million, or $0.46 per diluted share, compared to non-GAAP net income of $17.1 million, or $0.38 per diluted share, in the second quarter of 2021.
Cash and cash equivalents and short-term deposits, as of June 30, 2022 were $391.0 million compared to $383.3 million as of March 31, 2022. In addition, there were $47.0 in long-term deposits compared to $45.0 as of March 31, 2022. During the quarter, Camtek generated $13.0 million in operating cash flow.
Conference Call
Camtek will host a video conference call/webinar today via Zoom, July 27, 2022, 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 webinar, please register using the following link, which will email the link with which to access the video call:
https://us06web.zoom.us/webinar/register/1516572081008/WN_DKB3pBczQn6NnIkC2Niu-g
For those wishing to listen via phone, following registration, the dial-in link will be sent.
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 Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, and the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on the current beliefs, expectations and assumptions of Camtek Ltd. ("we," "us" and "our"). Forward-looking statements include our expected revenues for the second and third quarter of 2022 and 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, although not all forward-looking statements contain these identifying words. 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. Our actual results and performance could differ materially from those projected in the forward-looking statements as a result of many factors, including as a result of the effect of the COVID-19 pandemic on the global markets and on the markets in which we operate, including the impact of war in Ukraine, rising inflation, rising interest rates, volatile exchange rates and commodities' prices, the risk of the continuation of disruptions to our and our customers', providers', business partners' and contractors' businesses as a result of the COVID-19 pandemic, such as for example the impact of China-imposed lockdowns; our expectations regarding sufficiency of cash on hand; 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 purchase of our products; the highly competitive nature of the markets we serve, some of which have dominant market participants with greater resources than us; the rapid evolvement of technology in the markets in which we operate, and our ability to adequately predict these changes or keep pace with emerging industry standards; 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, some of which might be subject to trade restrictions; changing industry and market trends; reduced demand for our products; the timely development of our new products and their adoption by the market;price reductions; 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.
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: (i) share based compensation expenses; and (ii) tax settlement 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
(In thousands)
June 30,
December 31,
2022
2021
U.S. dollars
Assets
Current assets
Cash and cash equivalents
56,041
241,943
Short-term deposits
335,000
156,000
Trade accounts receivable, net
73,114
57,825
Inventories
70,075
58,759
Other current assets
7,497
5,653
Total current assets
541,727
520,180
Long-term deposits
47,000
32,000
Long term inventory
4,878
5,150
Deferred tax asset
117
227
Other assets
427
190
Property, plant and equipment, net
30,419
25,400
Intangible assets, net
584
610
Total non-current assets
83,425
63,577
Total assets
625,152
583,757
Liabilities and shareholders' equity
Current liabilities
Trade accounts payable
35,135
33,550
Other current liabilities
51,130
56,137
Total current liabilities
86,265
89,687
Long-term liabilities
Other long-term liabilities
6,915
5,800
Convertible notes
195,190
194,643
Total long-term liabilities
202,105
200,443
Total liabilities
288,370
290,130
Shareholders' equity
Ordinary shares NIS 0.01 par value, 100,000,000 shares authorized at
June 30, 2022 and at December 31, 2021;
46,355,859 issued shares at June 30, 2022 and 45,939,019 at
December 31, 2021;
44,263,483 shares outstanding at June 30, 2022 and 43,846,643 at
December 31, 2021;
172
172
Additional paid-in capital
182,176
176,582
Retained earnings
156,332
118,771
338,680
295,525
Treasury stock, at cost (2,092,376 shares as of June 30, 2022 and
December 31, 2021)
(1,898)
(1,898)
Total shareholders' equity
336,782
293,627
Total liabilities and shareholders' equity
625,152
583,757
Camtek Ltd.
Consolidated Statements of Operations
(in thousands, except share data)
Six months ended
June 30,
Three months
ended June 30,
Year ended
December 31,
2022
2021
2022
2021
2021
U.S. dollars
U.S. dollars
U.S. dollars
Revenues
156,744
124,802
79,578
67,450
269,659
Cost of revenues
76,693
60,831
39,385
32,456
132,315
Gross profit
80,051
63,971
40,193
34,994
137,344
Operating expenses:
Research and development costs
15,199
11,244
7,522
5,766
23,473
Selling, general and administrative
24,451
21,288
11,796
12,188
42,973
Total operating expenses
39,650
32,532
19,318
17,954
66,446
Operating income
40,401
31,439
20,875
17,040
70,898
Financial income, net
860
562
227
176
1,030
Income before income taxes
41,261
32,001
21,102
17,216
71,928
Income tax expense
(3,700)
(2,989)
(1,919)
(1,564)
(11,651)
Net income
37,561
29,012
19,183
15,652
60,277
Earnings per share information:
Six months ended
June 30,
Three months
ended June 30,
Year ended
December 31,
2022
2021
2022
2021
2021
U.S. dollars
U.S. dollars
U.S. dollars
Basic net earnings per share
0.86
0.67
0.44
0.36
1.38
Diluted net earnings per share
0.78
0.65
0.40
0.35
1.34
Weighted average number of
ordinary shares outstanding
(in thousands):
Basic
43,929
43,450
44,006
43,609
43,644
Diluted
48,150
44,612
48,153
44,750
45,035
Camtek Ltd.
Reconciliation of GAAP To Non-GAAP results
(In thousands, except share data)
Six Months ended
June 30,
Three Months ended
June 30,
Year ended
December 31,
2022
2021
2022
2021
2021
U.S. dollars
U.S. dollars
U.S. dollars
Reported net income attributable to
Camtek Ltd. on GAAP basis
37,561
29,012
19,183
15,652
60,277
Tax settlement (1)
-
-
-
-
5,305
Share-based compensation
5,592
2,681
2,927
1,470
5,815
Non-GAAP net income
43,153
31,693
22,110
17,122
71,397
Non–GAAP net income per diluted share
0.90
0.71
0.46
0.38
1.59
Gross margin on GAAP basis
51.1 %
51.3 %
50.5 %
51.9 %
50.9 %
Reported gross profit on GAAP basis
80,051
63,971
40,193
34,994
137,344
Share-based compensation
628
301
326
173
653
Non- GAAP gross margin
80,679
64,272
40,519
35,167
137,997
Non-GAAP gross profit
51.5 %
51.5 %
50.9 %
52.1 %
51.2 %
Reported operating income attributable
to Camtek Ltd. on GAAP basis
40,401
31,439
20,875
17,040
70,898
Share-based compensation
5,592
2,681
2,927
1,470
5,815
Non-GAAP operating income
45,993
34,120
23,802
18,510
76,713
(1) In February 2022 the Company reached a settlement with the Israeli Tax Authorities and in the financial statements for the year ended December 31, 2021, recorded a one-time tax expense in respect of its historical exempt earnings.
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
Copyright 2022 PR Newswire
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