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Camtek Announces Fourth Quarter And Full Year 2012 Results

 

Full Year Revenues of $84.5 million; Full Year Non-GAAP Net Income of $4.7 million

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MIGDAL HAEMEK, Israel, Feb. 21, 2013 /PRNewswire/ -- Camtek Ltd. (NASDAQ and TASE: CAMT), today announced its financial results for the quarter and full year ended December 31, 2012.

Highlights of the Full Year 2012

  • Revenues of $84.5 million;
  • Non-GAAP operating income of $5.3 million; GAAP operating loss of $0.1 million;
  • Non-GAAP net income of $4.7 million; GAAP net income of $0.0 million;
  • Positive operating cash flow of $4.2 million; Cash, cash equivalents and short-term deposits of $26.0 million as of December 31, 2012.

Highlights of the Fourth Quarter 2012

  • Revenues of $17.6 million;
  • Non-GAAP operating loss of $0.6 million; GAAP operating loss of $5.4 million;
  • Non-GAAP net loss of $0.8 million; GAAP net loss of $3.3 million;
  • Positive operating cash flow of $2.9 million;
  • During the fourth quarter the company recorded a non-cash impairment of goodwill and other intangible assets in the total amount of $3.1 million (or $0.8 million, net, taking into account financial income of $2.3 million derived from revaluation of contingent liabilities) related to Sela and Printar/DMD as well as an inventory write-down in the amount of $1.4 million relating to certain old Sela Xact models.

Roy Porat, Camtek's Chief Executive Officer, commented, "All our markets at the end of 2012 became much tougher. As we guided already last quarter, we saw lower levels of revenue in the fourth quarter. Nevertheless, we continued to generate cash from operating activities and we ended 2012 with a strong cash position, amounting to $26 million. "

Continued Mr. Porat, "In the past year we strengthened our position in the backend semiconductor market, improved our capabilities through continued R&D investment and achieved some very important customer penetration into leading accounts that  is expected to grow in 2013."

Concluded Mr. Porat, "Similar to our industry peers, we see the current market situation persisting at least into the first quarter of 2013. We therefore expect first quarter 2013 revenues in the range of $16-18 million."

Fourth Quarter 2012 Financial Results

Revenues for the fourth quarter of 2012 were $17.6 million. This is a decrease of 17% compared to $21.1 million in the fourth quarter of 2011 and a decrease of 26% compared to $23.7 million in the prior quarter. These trends are primarily attributable to the overall market conditions in the markets the company serves.

Gross profit on a GAAP basis in the quarter totaled $6.0 million (33.8% of revenues). This is compared to $8.1 million (38.4% of revenues) in the fourth quarter of 2011 and $11.4 million (48.1% of revenues) in the prior quarter.

Gross profit on a non-GAAP basis in the quarter totaled $7.6 million (42.9% of revenues). This is compared to $8.9 million (42.1% of revenues) in the fourth quarter of 2011 and $11.5 million (48.5% of revenues) in the prior quarter.

Operating loss on a GAAP basis in the quarter was $5.4 million. This is compared to an operating loss of $0.7 million in the fourth quarter of 2011 and operating income of $3.1 million (13.2% of revenues) in the prior quarter. 

Operating loss on a non-GAAP basis in the quarter was $0.6 million. This is compared to non-GAAP operating income of $0.1 million (0.6% of revenues) in the fourth quarter of 2011 and operating income of $3.3 million (14.0% of revenues) in the prior quarter.

Net loss on a GAAP basis in the quarter totaled $3.3 million, or $0.11 per share. This is compared to a net loss of $1.9 million, or $0.06 per share in the fourth quarter of 2011 and net income $2.4 million (10.0% of revenues), or $0.08 per diluted share in the prior quarter.

Net loss on a non-GAAP basis, in the quarter was $0.8 million, or $0.03 per share. This is compared to a net loss of $0.5 million, or $0.02 per share in the fourth quarter of 2011 and net income of $3.1 million (13.0% of revenues) or $0.10 per share in the prior quarter.

Full Year 2012 Results Summary

Revenues for 2012 were $84.6 million, a decrease of 21% compared to $107.0 million, as reported in 2011.

Gross profit on a GAAP basis for 2012 was $37.1 million (43.8% of revenues) compared to gross profit of $47.5 million (44.3% of revenues) in 2011. Gross profit on a non-GAAP basis for 2012, was $39.0 million (46.1% of revenues), compared to $48.6 million (45.4% of revenues) in 2011.

Operating loss on a GAAP basis for 2012, was $0.1 million (0% of revenues) compared to an operating income of $9.0 million (8.4% of revenues) in 2011. Non-GAAP operating income in 2012 was $5.3 million (6.43% of revenues) compared to an operating income of $10.5 million (9.8% of revenues) in 2011.

Net income on a GAAP basis for 2012 was $0.0 million compared to a net income of $5.4 million in 2011.  Net income on a non-GAAP basis for 2012 was $4.7 million, compared to a net income of $8.9 million in 2011.

Cash and cash equivalents and short-term deposits as of December 31, 2012 were $26.0 million ($19.8 million net of bank loans) compared to $25.3 million ($18.6 million net of bank loans), as of September 30, 2012 and $26.3million, ($19.5 million net of bank loans) as of December 31, 2011. The company generated a positive operating cash flow of $2.9 million during the fourth quarter of 2012. For the year, the Company generated a positive operating cash flow of $4.2 million.

Conference Call

Camtek will host a conference call today, February 21, 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:

1 888 668 9141

at 10:00 am Eastern Time 

Israel:

03 918 0609

at 5:00 pm Israel Time 

International:

+972 3 918 0609


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 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 such as: (i) amortization of acquired intangible assets and revaluation of liabilities with respect to the acquisitions of Sela and Printar; and (ii) 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.

 

Consolidated Balance Sheets


(In thousands)




December 31,


2012


2011


U.S. Dollars (In thousands)

Assets








Current assets




Cash and cash equivalents

18,867


22,185

Short-term deposits

7,160


4,100

Accounts receivable, net

23,076


25,451

Inventories

19,340


24,355

Due from affiliates

391


388

Other current assets

2,210


3,357

Deferred tax asset

194


110





Total current assets

71,238


79,946





Fixed assets, net

15,822


14,577





Long term inventory

6,085


1,954

Long-term deposit

729


-

Deferred tax asset

132


132

Other assets, net

304


304

Intangible assets, net *

2,971


4,191

Goodwill

1,504


3,653


11,725


10,234





Total assets

98,785


104,757





Liabilities and shareholders' equity








Current liabilities




Short term bank loans

4,160


3,000

Accounts payable – trade

7,610


6,773

Long term bank loans – current portion

1,592


1,700

Other current liabilities

13,943


21,568

Total current liabilities

27,305


33,041





Long term liabilities




Long term bank loans

500


2,092

Liability for employee severance benefits

742


652

Other long term liabilities *

9,901


9,039


11,143


11,783





Total liabilities

38,448


44,824









Shareholders' equity




Ordinary shares NIS 0.01 par value, authorized 100,000,000 shares,




31,810,340 issued as December 31, 2012 and December 31, 2011,

outstanding 29,717,964 as of December 31, 2012




and December 31, 2011

133


133

Additional paid-in capital

61,415


61,014

Accumulated income

687


684


62,235


61,831

Treasury stock, at cost (2,092,376  as of December 31, 2012 and

     December 31, 2011)

(1,898)


(1,898)





Total shareholders' equity

60,337


59,933





Total liabilities and shareholders' equity

98,785


104,757

 (*) Relates to Printar and SELA acquisitions





 

 




Camtek Ltd.

Consolidated Statements of Operations





(in thousands, except share data)





Year ended

December 31,


Three Months ended December 31,


2012


2011


2012


2011


U.S. dollars


U.S. dollars









Revenues

84,547


107,028


17,619


21,104

Cost of revenues

47,482


59,588


11,667


13,006









Gross profit

37,065


47,440


5,952


8,098

















Research and development costs

12,916


14,077


3,022


3,189

Selling, general and administrative

**21,138


24,341


5,188


5,626

Expenses     








Impairment charge in respect of goodwill and other intangible assets

* 3,106

 


-

 


* 3,106

 


-

 


37,160


38,418


11,316


8,815

















Operating income (loss)

(95)


9,022


(5,364)


(717)









Financial income (expenses), net

581


(2,900)


2,155


(1,089)









Income (loss) before income








 taxes

486


6,122


(3,209)


(1,806)









Income tax

(483)


(744)


(71)


(77)









Net income (loss)

3


5,378


(3,280)


(1,883)









Net income (loss) per ordinary share:
















Basic

(0.00)


0.18


(0.11)


(0.06)









Diluted

(0.00)


0.18


(0.11)


(0.06)









Weighted average number of








  ordinary shares outstanding:
















Basic

29,849


29,577


29,851


29,712









Diluted

30,013


30,009


29,851


29,712









(*) Relates to Printar and SELA acquisitions








(**) Including income of approximately 1 million dollars related to a settlement with a former service provider of the company.

 

 







Camtek Ltd.

Reconciliation of GAAP To Non-GAAP results









(In thousands, except share data)








Year ended
December 31,


Three Months ended December 31,


2012


2011


2012


2011


U.S. dollars


U.S. dollars









Reported net income (loss)

     attributable to Camtek Ltd. on

     GAAP basis

3


5,378


(3,280)


(1,883)

Acquisition of Sela and Printar related expenses (1)

 

(434)


 

2,377


 

(2,215)


 

645

Inventory write –downs (2)

1,515


685


1,515


685

Impairment charge in respect of goodwill and other intangible assets

 

3,106


 

-


 

3,106


 

-

Share-based compensation

401


416


92


55

Shelf registration expenses

94


-


-


-

Non-GAAP net income (loss)

4,685


8,856


(782)


(498)









Non –GAAP net income (loss) per share , basic and diluted

0.16


0.30


(0.03)


(0.02)

















Gross margin on GAAP basis

43.8%


44.3%


33.8%


38.4%

Reported gross profit on GAAP basis

37,065


47,440


5,952


8,098









Acquisition of Sela and Printar related expenses ( 1)

 

300


 

331


 

75


 

92

Inventory write-downs (2)

1,515


685


1,515


685

Share-based compensation

97


97


22


14

Non- GAAP gross margin

46.1%


45.4%


42.9%


42.1%

Non-GAAP gross profit

38,977


48,553


7,564


8,889









 

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

 

 

 

(95)


 

 

 

9,022


 

 

 

(5,364)


 

 

 

(717)

Acquisition of Sela and Printar related     expenses (1)

 

300


 

331


 

75


 

92

Inventory write- downs (2)

1,515


685


1,515


685

Impairment charge in respect of goodwill and other intangible assets

3,106


-


3,106


-

Share-based compensation

401


416


92


55

Shelf registration expenses

94


-


-


-









Non-GAAP operating income

5,321


10,454


(576)


115



(1) During the three and twelve months ended December 31, 2012 and 2011, the Company recorded acquisition expenses of $(2.2) million, $(0.4) million, $0.6 million and $2.4 million, respectively, consisting of: (1) Revaluation adjustments of $(2.3) million, $(0.7) million, $0.6 million and $2.0 million, respectively, of contingent consideration and certain future liabilities recorded at fair value. These amounts are recorded under finance expenses line item and (2) $0.08 million, $0.30 million, $0.09 million and $0.31 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, 2012 and 2011, the Company recorded inventory write down in the amount of $1.5 million, $1.5 million, $0.7 million and $0.7 million, respectively.


(3) During the three and twelve months ended December 31, 2012, the Company recorded an impairment charge in respect of goodwill and other intangible assets of $3.1 million and $3.1 million, respectively.

 

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

SOURCE Camtek Ltd.



RELATED LINKS
http://www.camtek.co.il

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