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CAMTEK ANNOUNCES RECORD RESULTS FOR THE SECOND QUARTER OF 2022

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

 

Logo – https://mma.prnewswire.com/media/1534463/Camtek_logo.jpg

 

 

 

Cision View original content:https://www.prnewswire.com/news-releases/camtek-announces-record-results-for-the-second-quarter-of-2022-301594179.html

SOURCE Camtek Ltd

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