Revenue of $80.5 million;
Continued growth expected in the fourth quarter and into
2024
MIGDAL HAEMEK, Israel, Nov. 14,
2023 /PRNewswire/ -- Camtek Ltd. (NASDAQ: CAMT)
(TASE: CAMT), announced today its financial results for the third
quarter ended September 30, 2023.
Highlights of the Third Quarter of 2023
- Revenue of $80.5 million; a 9%
sequential growth;
- GAAP operating income of $19.1
million; non-GAAP operating income of $22.2 million, representing an operating margin
of 23.7% and 27.6% respectively;
- GAAP net income of $22.1 million
and non-GAAP net income of $25.2
million;
- Positive operating cash flow of $12.4
million; and
- FRT acquisition closed on October 31,
2023.
Forward-Looking Expectations
For the fourth quarter, management expects continued organic
growth and, together with the contribution from the FRT business,
Camtek's fourth quarter revenue is expected to be at a record of
between $87-89 million.
Management Comment
Rafi Amit, Camtek's CEO
commented, "Since the beginning of the third quarter we have
received orders for 240 systems including an order announced
yesterday for 28 systems from a tier-one customer for the
inspection and metrology of High Bandwidth Memory and Heterogeneous
Integration applications. Most of the orders are for installation
during 2024. This healthy backlog, with additional expected orders
in the pipeline, points to a year of growth for Camtek and we
expect record revenue in 2024."
Third Quarter 2023 Financial Results
Revenues for the third quarter of 2023 were $80.5 million, an increase of 9% from the
previous quarter and a decrease of 2% compared to the third quarter
of 2022.
Gross profit on a GAAP basis in the quarter totaled
$39.0 million (48.5% of revenue),
compared to a gross profit of $39.9
million (48.6% of revenue) in the third quarter of 2022.
Gross profit on a non-GAAP basis in the quarter totaled
$39.4 million (49.0% of revenue),
compared to $40.2 million (49.0% of
revenue) in the third quarter of 2022.
Operating profit on a GAAP basis in the quarter totaled
$19.1 million (23.7% of revenue),
compared to an operating profit of $20.6
million (25.2% of revenue) in the third quarter of 2022.
Operating profit on a non-GAAP basis in the quarter totaled
$22.2 million (27.6% of revenue),
compared to $23.2 million (28.3% of
revenue) in the third quarter of 2022.
Net income on a GAAP basis in the quarter totaled
$22.1 million, or $0.46 per diluted share, compared to net income
of $20.7 million, or $0.43 per diluted share, in the third quarter of
2022. Net income on a non-GAAP basis in the quarter totaled
$25.2 million, or $0.52 per diluted share, compared to non-GAAP net
income of $23.3 million, or
$0.48 per diluted share, in the third
quarter of 2022.
Cash and cash equivalents, short-term and long-term deposits
and marketable securities, as of September 30, 2023 were $517.1 million compared to $506.3 million as of June
30, 2023. It is noted that $100
million was paid out in the fourth quarter following the
close of the acquisition of FRT. During the third quarter, Camtek
generated $12.4 million in operating
cash flow.
Conference Call
Camtek will host a video conference call today via Zoom,
November 14, 2023, 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 call, please register using the following
link well in advance of the call, which will email the link with
which to access the call:
https://us06web.zoom.us/webinar/register/WN_WNwmJGddQ9mcWUqW3MP34w
For those wishing to listen via phone, following registration, a
dial-in link will also 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 high-end inspection and metrology equipment
provider for the semiconductor industry. Camtek's systems inspect
IC and measure IC features on wafers in various phases of the
production processes of semiconductor devices, from front-end and
mid-end and up to the beginning of assembly (Post Dicing). Camtek's
systems inspect and measure wafers for some of the most demanding
semiconductor market segments, including Advanced Interconnect
Packaging, Heterogenous Integration, Memory and HBM, CMOS Image
Sensors, Compound Semiconductors, MEMS, and RF, serving numerous
industry's leading global IDMs, OSATs, and foundries.
With manufacturing facilities in Israel and Germany, and eight offices around the world,
Camtek provides state of the art solutions in line with customers'
requirements.
This press release is available at www.camtek.com
This press release contains statements that may constitute
"forward-looking statements" within the meaning 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 revenue for fourth quarter and full
year 2023 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 the effect of the evolving nature of the
recent war in Gaza between
Israel and the Hamas; the impact
of war in Ukraine, rising
inflation, rising interest rates, volatile exchange rates and
commodities' prices, ; 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; formal or informal imposition by
countries of new or revised export and/or import and doing-business
regulations or sanctions, including but not limited to changes in
U.S. trade policies, changes or uncertainty related to the U.S.
government entity list and changes in the ability to sell products
incorporating U.S originated technology, which can be made without
prior notice, and our ability to effectively address such global
trade issues and changes; 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 the trade restrictions referred to above or
involved in trade wars with countries which might impose such trade
restrictions; changing industry and market trends; reduced demand
for our products; 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
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.
CAMTEK LTD. and its
subsidiaries
|
Consolidated Balance
Sheets
|
(In
thousands)
|
|
|
|
September
30,
|
December
31,
|
|
2023
|
2022
|
|
U.S.
dollars
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
167,585
|
148,156
|
Short-term
deposits
|
195,400
|
251,500
|
Marketable
securities
|
26,729
|
-
|
Trade accounts
receivable, net
|
91,370
|
80,611
|
Inventories
|
64,717
|
65,541
|
Other current
assets
|
16,537
|
11,156
|
|
|
|
Total current
assets
|
562,338
|
556,964
|
|
|
|
Long-term
deposits
|
54,000
|
79,000
|
Marketable
securities
|
73,368
|
-
|
Long term
inventory
|
8,008
|
5,357
|
Deferred tax asset,
net
|
574
|
1,004
|
Other assets,
net
|
2,412
|
1,024
|
Property, plant and
equipment, net
|
36,977
|
33,141
|
Intangible assets,
net
|
652
|
597
|
|
|
|
Total non-current
assets
|
175,991
|
120,123
|
|
|
|
Total
assets
|
738,329
|
677,087
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
Current
liabilities
|
|
|
Trade accounts
payable
|
33,706
|
31,667
|
Other current
liabilities
|
46,231
|
56,833
|
|
|
|
Total current
liabilities
|
79,937
|
88,500
|
|
|
|
Long-term
liabilities
|
|
|
Other long-term
liabilities
|
10,228
|
8,748
|
Convertible
notes
|
196,557
|
195,737
|
Total long-term
liabilities
|
206,785
|
204,485
|
|
|
|
Total
liabilities
|
286,722
|
292,985
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
Ordinary shares NIS
0.01 par value, 100,000,000 shares authorized at September 30, 2023
and at December 31, 2022;
|
|
|
46,957,047 issued shares at September 30, 2023
and 46,505,318 at December
31, 2022;
|
|
|
44,864,671 shares outstanding at September 30, 2023
and 44,412,942 at December
31, 2022;
|
175
|
175
|
Additional paid-in
capital
|
196,768
|
187,105
|
Retained
earnings
|
256,562
|
198,720
|
|
453,505
|
386,000
|
Treasury stock, at cost
(2,092,376 shares as of September 30, 2023 and December 31,
2022)
|
(1,898)
|
(1,898)
|
|
|
|
Total shareholders'
equity
|
451,607
|
384,102
|
|
|
|
Total liabilities
and shareholders' equity
|
738,329
|
677,087
|
|
|
|
|
|
Camtek
Ltd.
|
Consolidated
Statements of Operations
|
(in thousands, except share
data)
|
|
|
|
|
Nine months
ended
September
30,
|
Three
months ended
September
30,
|
Year
ended
December
31,
|
|
2023
|
2022
|
2023
|
2022
|
2022
|
|
U.S.
dollars
|
U.S.
dollars
|
U.S.
dollars
|
|
|
|
|
|
|
Revenues
|
|
226,685
|
238,734
|
80,470
|
81,990
|
320,909
|
Cost of
revenues
|
|
118,840
|
118,824
|
41,462
|
42,131
|
161,053
|
|
|
|
|
|
|
|
Gross
profit
|
|
107,845
|
119,910
|
39,008
|
39,859
|
159,856
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
Research and
development costs
|
|
23,428
|
22,175
|
7,756
|
6,976
|
28,859
|
Selling, general and
administrative
|
|
36,224
|
36,698
|
12,187
|
12,247
|
49,499
|
Total operating
expenses
|
|
59,652
|
58,873
|
19,943
|
19,223
|
78,358
|
|
|
|
|
|
|
|
Operating
income
|
|
48,193
|
61,037
|
19,065
|
20,636
|
81,498
|
|
|
|
|
|
|
|
Financial income,
net
|
|
16,536
|
2,889
|
5,672
|
2,029
|
6,690
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
64,729
|
63,926
|
24,737
|
22,665
|
88,188
|
|
|
|
|
|
|
|
Income tax
expense
|
|
(6,887)
|
(5,650)
|
(2,679)
|
(1,950)
|
(8,239)
|
|
|
|
|
|
|
|
Net
income
|
|
57,842
|
58,276
|
22,058
|
20,715
|
79,949
|
|
|
Earnings per share
information:
|
|
Nine months
ended
September
30,
|
Three
months
ended September
30,
|
Year
ended
December
31,
|
|
2023
|
2022
|
2023
|
2022
|
2022
|
|
U.S.
dollars
|
U.S.
dollars
|
U.S.
dollars
|
|
|
|
|
|
|
Basic net earnings
per share
|
1.30
|
1.30
|
0.49
|
0.47
|
1.81
|
|
|
|
|
|
|
Diluted net
earnings per share
|
1.20
|
1.21
|
0.46
|
0.43
|
1.66
|
|
|
|
|
|
|
Weighted average
number of ordinary shares outstanding
|
|
|
|
(in
thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
44,614
|
44,778
|
44,728
|
44,370
|
44,158
|
|
|
|
|
|
|
Diluted
|
48,682
|
48,200
|
48,965
|
48,306
|
48,229
|
Camtek
Ltd.
|
Reconciliation of
GAAP To Non-GAAP results
|
(In thousands,
except share data)
|
|
Nine
Months ended
September
30,
|
Three Months
ended
September
30,
|
Year
ended
December
31,
|
|
2023
|
2022
|
2023
|
2022
|
2022
|
|
U.S.
dollars
|
U.S.
dollars
|
U.S.
dollars
|
|
|
|
|
|
|
Reported net income
attributable to Camtek Ltd. on GAAP basis
|
57,842
|
58,276
|
22,058
|
20,715
|
79,949
|
Share-based
compensation
|
9,657
|
8,152
|
3,137
|
2,560
|
10,523
|
Non-GAAP net
income
|
67,499
|
66,428
|
25,195
|
23,275
|
90,472
|
|
|
|
|
|
|
Non–GAAP net income
per diluted share
|
1.39
|
1.25
|
0.51
|
0.48
|
1.88
|
Gross margin on GAAP
basis
|
47.5 %
|
50.2 %
|
48.5 %
|
48.6 %
|
49.8 %
|
Reported gross
profit on GAAP basis
|
107,845
|
119,910
|
39,008
|
39,859
|
159,856
|
Share-based
compensation
|
1,196
|
922
|
389
|
295
|
1,217
|
Non- GAAP gross
profit
|
109,041
|
120,832
|
39,397
|
40,154
|
161,073
|
Non-GAAP gross
margin
|
48.1 %
|
50.6 %
|
49.0 %
|
49.0 %
|
50.2 %
|
|
|
|
|
|
|
Reported operating
income attributable to Camtek Ltd. on GAAP basis
|
48,193
|
61,037
|
19,065
|
20,636
|
70,898
|
Share-based
compensation
|
9,657
|
8,152
|
3,137
|
2,560
|
5,815
|
Non-GAAP operating
income
|
57,850
|
69,189
|
22,202
|
23,196
|
76,713
|
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.