Camtek Announces Record Full Year 2011 Results
22% year over year growth in revenue, strong annual operating cash flow of $9.8 million
MIGDAL HAEMEK, Israel, February 21, 2012 /PRNewswire/ --
Camtek Ltd. (NASDAQ and TASE: CAMT), today announced its financial results for the full year and fourth quarter ended December 31, 2011.
Highlights of the Full Year 2011
Revenues of $107 million;
Non-GAAP net income of $8.8 million; GAAP net income of $5.4 million;
Non-GAAP operating income of $10.5 million; GAAP operating income of $9.0 million
Positive operating cash flow of $9.8 million in the year
Highlights of the Fourth Quarter 2011
Revenues of $21.1 million;
Non-GAAP operating income of $0.1 million; GAAP operating loss of $0.7 million
Non-GAAP net loss of $0.5 million; GAAP net loss of $1.9 million;
Positive operating cash flow of $8.2 million in the quarter
Results for the three-month period and full year ended December 31, 2011 on a non-GAAP basis, exclude the following items: (i) amortization of acquired intangible assets and revaluation of liabilities with respect to the acquisitions of Sela and Printar; (ii) share based compensation expenses; (iii) write off of inventory primarily related to a discontinued product lines. A reconciliation between the GAAP and non-GAAP results appears in the tables at the end of this press release.
Roy Porat, Camtek's Chief Executive Officer, commented: "We are very pleased with our overall performance in 2011, presenting an all time record year on the top line. We maintained a strong market position in our two core product lines and saw growing market acceptance of our new growth engines."
Continued Mr. Porat, "Like our industry, our business has softened at the end of 2011 and the beginning of 2012. For the first quarter, we believe revenues will range between $17 and $19 million. Looking ahead, we are well positioned for resuming our growth once more positive market conditions return."
Fourth Quarter 2011 Financial Results
Revenues for the fourth quarter of 2011 were $21.1 million, a decrease of 17% compared to $25.4 million in the fourth quarter of 2010.
Gross profit on a GAAP basis in the quarter totaled $8.1 million (38.5% of revenues), compared with $11.7 million (46.0% of revenues) in the fourth quarter of 2010. Gross profit on a non-GAAP basis in the quarter totaled $8.9 million (42.1% of revenues), compared with $12.0 million (47.0% of revenues) in the fourth quarter of 2010.
Operating loss on a GAAP basis in the quarter was $0.7 million compared with an operating income of $1.8 million (6.9% of revenues) in the fourth quarter of 2010. Non-GAAP operating income in the quarter was $0.1 million (0.5% of revenues) compared with an operating income of $2.1 million (8.4% of revenues) in the fourth quarter of 2010.
Net loss on a GAAP basis in the quarter totaled $1.8 million, or $0.06 per diluted share, compared to a net income of $1.3 million, or $0.04 per share in the fourth quarter of 2010. On a non-GAAP basis, net loss in the quarter was $0.5 million, or loss of $0.02 per share, compared with a net income of $1.9 million, or $0.06 per diluted share in the fourth quarter of 2010.
Full Year 2011 Results Summary
Revenues for 2011 were $107.0 million, an increase of 22% compared to $87.8 million, as reported in 2010.
Gross profit on a GAAP basis for 2011 was $47.5 million (44.3% of revenues) compared to gross profit of $38.4 million (43.7% of revenues) in 2010. Gross profit on a non-GAAP basis for 2011, was $48.6 million (45.4% of revenues), compared to $38.7 million (44.1% of revenues) in 2010.
Operating income on a GAAP basis for 2011, was $9.0 million (8.4% of revenues) compared to an operating income of $4.9 million (5.5% of revenues) in 2010. Non-GAAP operating income in 2011 was $10.5 million (9.8% of revenues) compared to an operating income of $5.7 million (8.4% of revenues) in 2010.
Net income on a GAAP basis for 2011 was $5.4 million compared to a net income of $2.8 million in 2010. Net income on a non-GAAP basis for 2011 was $8.8 million, compared to a net income of $4.4 million in 2010.
Cash and cash equivalents and short-term deposits as of December 31, 2011 were $26.3 million ($19.5 million net of bank loans) compared with $14.8 million ($12.2 million net of bank loans), which included $5.2 million in restricted deposits, as of December 31, 2010. The company generated a positive operating cash flow of $8.2 million during the fourth quarter of 2011. For the year, the Company generated a positive operating cash flow of $9.8 million.
Conference Call
Camtek will host a conference call today, February 21, 2012, at 10:00 am ET.
Roy Porat, Chief Executive Officer and Moshe Eisenberg, Chief Financial Officer, 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: 1-866-860-9642 at 10:00 am Eastern Time
Israel: 03-918-0685 at 5:00 pm Israel Time
International: +972-3-918-0685
For those unable to participate, the teleconference will be available for replay on Camtek's website at http://www.camtek.co.il/ beginning 24 hours after the call.
ABOUT CAMTEK LTD.
Camtek Ltd. provides automated and technologically advanced solutions dedicated to enhancing production processes and increasing yields, enabling and supporting customer's latest technologies in the Semiconductors, Printed Circuit Boards (PCB) and IC Substrates industries.
Camtek addresses the specific needs of these interconnected industries with dedicated solutions based on a wide and advanced platform of technologies including intelligent imaging, image processing, adaptive ion milling (AIM) and digital material deposition (DMD). Camtek's solutions range from micro-to-nano by applying its technologies to the industries' specific requirements.
This press release is available at http://www.camtek.co.il.
This press release may contain projections or other forward-looking statements regarding future events or the future performance of the Company. These statements are only predictions and may change as time passes. We do not assume any obligation to update that information. Actual events or results may differ materially from those projected, including as a result of 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, intellectual property litigation, price reductions as well as due to risks identified in the documents filed by the Company with the SEC.
Use of non-GAAP Measures
This press release provides financial measures that exclude certain items 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.
Consolidated Balance Sheets
(In thousands)
December 31,
2011 2010
U.S. Dollars (In
thousands)
Assets
Current assets
Cash and cash equivalents 22,185 9,577
Short term deposits 4,100 -
Accounts receivable, net 25,451 28,817
Inventories 24,277 24,034
Due from affiliates 619 384
Other current assets 3,201 2,414
Deferred tax asset 90 54
Total current assets 79,923 65,280
Fixed assets, net 14,577 15,077
Long term inventory 1,954 2,304
Restricted deposits * - 5,182
Deferred tax asset 152 152
Other assets, net 460 460
Intangible assets ** 4,191 4,163
Goodwill 3,653 3,653
10,410 15,914
Total assets 104,910 96,271
Liabilities and shareholders' equity
Current liabilities
Short term bank loans 3,000 1,409
Long term bank loans - current portion 1,700 433
Accounts payable - trade 7,052 9,761
Other current liabilities 21,536 21,408
Total current liabilities 33,288 33,011
Long term liabilities
Long term bank loans 2,092 758
Liability for employee severance benefits 652 626
Other long term liabilities ** 8,945 7,884
11,689 9,268
Total liabilities 44,977 42,279
Commitments and contingencies
Shareholders' equity
Ordinary shares NIS 0.01 par value, authorized
100,000,000 shares,
issued 31,810,340 as of December 31, 2011 and
31,370,359 as of December 31, 2010, outstanding
29,717,964 as of December 31,
2011 and 29,277,983 as of December 31, 2010 133 132
Additional paid-in capital 61,014 60,452
Accumulated losses 684 (4,694)
61,831 55,890
Treasury stock, at cost (2,092,376 as of December 31,
2011
and 2010) (1,898) (1,898)
Total shareholders' equity 59,933 53,992
Total liabilities and shareholders' equity 104,910 96,271
(*) Bank guarantee against credit line related to the Rudolph Technologies appeal
(**) Relates to Printar and SELA acquisitions
Camtek Ltd.
Consolidated Statements of Operations
(in thousands, except share data)
Year ended Three months ended
December 31, December 31,
2011 2010 2011 2010
U.S. dollars U.S. dollars
Revenues 107,028 87,780 21,104 25,432
Cost of revenues 59,588 49,361 13,006 13,745
Gross profit 47,440 38,419 8,098 11,687
Research and development costs 14,077 12,906 3,189 3,594
Selling, general and administrative
expenses 24,341 20,662 5,626 6,343
38,418 33,568 8,815 9,937
Operating profit (loss) 9,022 4,851 (717) 1,750
Financial expenses, net (2,900) (1,478) (1,089) (234)
Income (loss) before income taxes 6,122 3,373 (1,806) 1,516
Income tax (744) (557) (77) (203)
Net income (loss) 5,378 2,816 (1,883) 1,313
Net income (loss) per ordinary
share:
Basic 0.18 0.10 (0.06) 0.04
Diluted 0.18 0.09 (0.06) 0.04
Weighted average number of ordinary
shares outstanding:
Basic 29,599 29,259 29,712 29,278
Diluted 30,007 30,360 29,992 29,991
Camtek Ltd.
Reconciliation of GAAP To Non-GAAP results
(In thousands, except share data)
Year ended Three Months ended
December 31, December 31,
2011 2010 2011 2010
U.S. dollars U.S. dollars
Reported net income (loss)
attributable to Camtek Ltd. on
GAAP basis
5,378 2,816 (1,883) 1,313
Acquisition of Sela and Printar
related expenses (1) 2,377 2,093 645 386
Inventory write -downs 685 159 685 159
Share-based compensation 416 155 55 32
Restructuring expenses (2) - 544 - 187
Non-GAAP net income (loss) 8,856 5,767 (498) 2,077
Non -GAAP net income (loss) per
share , basic and diluted
0.30 0.19 (0.02) 0.07
Gross margin on GAAP basis
Reported gross profit on GAAP 44.3% 43.8% 38.4% 46.0%
basis
47,440 38,419 8,098 11,687
Acquisition of Sela and Printar
related expenses ( 1) 331 731 92 160
Inventory write off 685 159 685 159
Share-based compensation 97 - 14 -
Non- GAAP gross margin 45.4% 44.8% 42.1% 47.2%
Non-GAAP gross profit 48,553 39,309 8,889 12,006
Reported operating income (loss)
attributable to Camtek Ltd. on
GAAP basis 9,022 4,851 (717) 1,750
Acquisition of Sela and Printar
related expenses (1) 331 731 92 160
Inventory write- downs 685 159 685 159
Share-based compensation 416 155 55 32
Restructuring expenses (2) - 544 - 186
Non-GAAP operating income 10,454 6,440 115 2,287
1. During the three and twelve months ended December 31, 2011 and 2010, the Company recorded acquisition expenses of $0.6 million, $2.4 million, $0.4 million and $2.1 million, respectively, consisting of: (1) inventory written-up to fair value in purchase accounting charges of $0 million, $0 million, $0 million and $0.4 million, respectively. These amounts are recorded under cost of revenues line item. (2) Revaluation adjustments of $0.6 million, $2.0 million, $0.2 million and $1.4 million, respectively, of contingent consideration and certain future liabilities recorded at fair value. These amounts are recorded under finance expenses line item and (3) $0.09 million, $0.31 million, $0.16 million and $0.3 million, respectively, with respect to amortization of intangible assets acquired recorded under cost of revenues line item.
2. During the three and twelve months ended December 31, 2011 and 2010, the Company recorded inventory write down in the amount of $0.7 million, $0.7 million, $0.16 million and $0.16 million, respectively.
3. The Company has entered into a Memorandum of Understanding with a Belgian company, according to which, commencing June 2010, this company began to distribute the Company's products for the PCB industry in Europe, subject to and in accordance with terms and conditions referred to in the agreement. Therefore, the Company implemented a restructuring plan in its Belgium subsidiary which includes mainly a reduction in workforce and recorded $0.3 million as restructuring expenses under selling, general and administrative expenses line item.
During the three and twelve months ended December 31, 2010 the Company recorded $0.18 million and $0.28 million, respectively, of restructuring expense with respect to reorganization in its subsidiaries in China.
CAMTEK LTD.
Moshe Eisenberg, CFO
Tel: +972-4-604-8308
Mobile: +972-54-900-7100
moshee@camtek.co.il
INTERNATIONAL INVESTOR RELATIONS
CCG Investor Relations
Ehud Helft / Kenny Green
Tel: (US) +1-646-201-9246
camtek@ccgisrael.com
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