zk1618746.htm


 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 6-K
 
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
under the Securities Exchange Act of 1934
 
For the Month of July 2016
 
CAMTEK LTD.
(Translation of Registrant’s Name into English)
 
Ramat Gavriel Industrial Zone
P.O. Box 544
Migdal Haemek 23150
ISRAEL
(Address of Principal Corporate Offices)
 
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
 
Form 20-F x Form 40-F o
 
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities and Exchange Act of 1934.
 
Yes o No x

 
SIGNATURE
 
        Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
   
CAMTEK LTD.
(Registrant)
 
By: /s/ Moshe Eisenberg
——————————————
Moshe Eisenberg,
Chief Financial Officer
Dated: July 21, 2016
 
 
 

 

 
Camtek Ltd.
P.O.Box 544, Ramat Gabriel Industrial Park
Migdal Ha’Emek 23150,  ISRAEL
Tel: +972 (4) 604-8100   Fax: +972 (4) 644-0523
E-Mail:    Info@camtek.com  Web site: http://www.camtek.com
 
CAMTEK LTD.
Moshe Eisenberg, CFO
Tel: +972 4 604 8308
Mobile: +972 54 900 7100
moshee@camtek.com
 
INTERNATIONAL INVESTOR RELATIONS
GK Investor Relations
Ehud Helft / Gavriel Frohwein
Tel: (US) 1 646 688 3559
camtek@gkir.com
 
FOR IMMEDIATE RELEASE
 
CAMTEK ANNOUNCES SECOND QUARTER 2016 RESULTS

Q2 revenues of $27.3 million- a 12% sequential increase;
Non-GAAP Operating Income of $1.9 million; Expects continued top line growth-Q3 guidance of $27.5-29m

MIGDAL HAEMEK, Israel – July 21, 2016 – Camtek Ltd. (NASDAQ: CAMT; TASE: CAMT), today announced its financial results for the quarter ended June 30, 2016.

Highlights of the Second Quarter 2016
 
 
·
Revenues of $27.3 million, up 7% year over year;
 
·
Non-GAAP gross margin of 46.8%; GAAP gross margin of 46.7%
 
·
Non-GAAP operating income of $1.9 million; GAAP operating income of $1.7 million;
 
·
Non-GAAP net income of $1.5 million; GAAP net income of $1.3 million;
 
·
Expecting continued growth driven by Semiconductor Advance packaging applications.
              Q3 revenue guidance of $27.5 to $29 million.

Rafi Amit, Camtek’s Chairman and CEO, commented, “We are very pleased with our results, reporting revenues of over $27 million, which was ahead of our guidance. We also demonstrated solid gross and operating margins, leading to our strong profitability this quarter. This was driven by our performance in the semiconductor business. Advanced packaging continues to grow and capture a larger portion of the capital expenditure made by major manufacturers. Camtek is in a very strong position to continue to capitalize on this.”

Added Mr. Amit, “For the third quarter, we expect continued revenue growth, reaching a level of between $27.5- $29 million. This is in line with our positive outlook for the rest of the year, particularly in the back-end semiconductor space. As we stated back in February, we are targeting year on year double-digit growth in our semiconductor business.”

Second Quarter 2016 Financial Results

Revenues for the second quarter of 2016 were $27.8 million. This compares to second quarter 2015 revenues of $25.4 million, a growth of 7% and prior quarter revenues of $24.5 million, an increase of 12%.

Gross profit on a GAAP basis in the quarter totaled $12.7 million (46.7% of revenues), compared to $10.9 million (42.7% of revenues) in the second quarter 2015 and $10.3 million in the prior quarter (42.2% of revenues).The improved gross margin is due to the increase in revenue and favorable product mix.

 
 

 
Gross profit on a non-GAAP basis in the quarter totaled $12.8 million (46.8% of revenues), compared to $10.9 million (42.7% of revenues) in the second quarter 2015 and $10.3 million in the prior quarter (42.3% of revenues).

Operating profit on a GAAP basis in the quarter totaled $1.7 million (6.4% of revenues), compared to $1.1 million (4.5% of revenues) in the second quarter 2015 and an operating profit of $372 thousand in the prior quarter.

Operating profit on a non-GAAP basis in the quarter totaled $1.9 million (6.8% of revenues), compared to $1.2 million (4.5% of revenues) in the second quarter 2015 and $452 thousand in the prior quarter (1.8% of revenues).

Net income on a GAAP basis in the quarter totaled $1.3 million, or $0.04 per diluted share. This compares to net income of $647 thousand, or $0.02 per diluted share, in the second quarter 2015 and a net income of $24 thousand, or $0.00 per share, in the prior quarter.

Net income on a non-GAAP basis in the quarter totaled $1.5 million, or $0.04 per diluted share. This compares to net income of $825 thousand, or $0.03 per diluted share, in the second quarter 2015 and a net income of $194 thousand, or $0.01 per diluted share, in the prior quarter.

Cash, cash equivalents, short and long-term restricted deposits, as of June 30, 2016 were $31.8 million compared to $38.7 million as of December 31, 2015. The Company reported a negative operating cash flow of $1.6 million during the quarter.

Conference Call

Camtek will host a conference call today, Thursday, July 21, 2016, at 10:00 am ET.

Rafi Amit, Chairman and CEO, and Moshe Eisenberg, CFO, 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 9141at 10:00 am Eastern Time
Israel:                                                                   03 918 068             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.com beginning 24 hours after the call.
 
ABOUT CAMTEK LTD.

Camtek Ltd. provides automated and technologically advanced solutions dedicated to enhancing production processes, increasing products yield and reliability, enabling and supporting customers' 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 and functional 3D inkjet printing.
 
 
 

 
This press release is available at www.camtek.com .
 
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) revaluation of liabilities with respect to the acquisition of 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)
 
   
June 30,
   
December 31,
 
   
2016
   
2015
 
   
U.S. Dollars (In thousands)
 
Assets
           
             
Current assets
           
Cash and cash equivalents
    23,944       30,833  
Short-term restricted deposits
    7,875       7,875  
Trade accounts receivable, net
    32,900       27,003  
Inventories
    29,388       27,599  
Due from affiliated companies
    668       559  
Other current assets
    2,303       1,712  
Deferred tax asset
    177       177  
                 
Total current assets
    97,255       95,758  
                 
Fixed assets, net
    13,983       13,531  
                 
Long term inventory
    2,307       1,979  
Deferred tax asset
    3,835       3,955  
Other assets, net
    248       248  
Intangible assets, net
    865       795  
      7,255       6,977  
Total assets
    118,493       116,266  
                 
Liabilities and shareholders’ equity
               
                 
Current liabilities
               
Trade accounts payable
    12,115       11,812  
Other current liabilities
    31,025       30,712  
                 
Total current liabilities
    43,140       42,524  
                 
Long term liabilities
               
Liability for employee severance benefits
    866       772  
Other long term liabilities
    4,775       4,768  
      5,641       5,540  
Total liabilities
    48,781       48,064  
                 
Shareholders’ equity
               
Ordinary shares NIS 0.01 par value, 100,000,000 shares authorized at June 30, 2016 and at December 31, 2015;
               
37,440,552 issued shares at June 30, 2016 and at December 31, 2015;
               
35,348,176 shares outstanding at June 30, 2016 and at December 31, 2015
    148       148  
Additional paid-in capital
    76,235       76,034  
Retained earnings
    (4,773 )     (6,082 )
      71,610       70,100  
Treasury stock, at cost (2,092,376  as of June 30, 2016 and December 31, 2015)
    (1,898 )     (1,898 )
                 
Total shareholders' equity
    69,712       68,202  
                 
Total liabilities and shareholders' equity
    118,493       116,266  

 
 

 

Consolidated Statements of Operations

(in thousands, except share data)
 
   
Six Months ended
 June 30,
   
Three Months
ended June 30,
   
Year ended
December 31,
 
   
2016
   
2015
   
2016
   
2015
   
2015
 
   
U.S. dollars
   
U.S. dollars
   
U.S. dollars
 
Revenues
    51,738       47,162       27,280       25,412       99,275  
Cost of revenues
    28,667       26,488       14,537       14,557       56,149  
                                         
Gross profit
    23,071       20,674       12,743       10,855       43,126  
                                         
Research and development costs
    8,083       6,954       4,101       3,554       14,860  
Selling, general and administrative expenses
    12,881       11,489       6,907       6,208       23,587  
Reorganization and impairment
    -       -       -       -       138  
Loss from litigation
    -       -       -       -       14,600  
      20,964       18,443       11,008       9,762       53,185  
                                         
Operating income (loss)
    2,107       2,231       1,735       1,093       (10,059 )
                                         
Financial expenses, net
    (367 )     (1,040 )     (135 )     (193 )     (1,877 )
                                         
Income (loss) before income
                                       
 taxes
    1,740       1,191       1,600       900       (11,936 )
                                         
Income tax
    (431 )     (492 )     (315 )     (253 )     1,823  
                                         
Net income (loss)
    1,309       699       1,285       647       (10,113 )
                                         
Net income (loss) per ordinary share:
                                       
                                         
Basic
    0.04       0.02       0.04       0.02       (0.30 )
                                         
Diluted
    0.04       0.02       0.04       0.02       (0.30 )
                                         
Weighted average number of
                                       
  ordinary shares outstanding:
                                       
                                         
Basic
    35,348       31,518       35,348       32,530       33,352  
                                         
Diluted
    35,359       31,654       35,358       32,742       33,352  

 
 

 
 
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,
 
   
2016
   
2015
   
2016
   
2015
   
2015
 
   
U.S. dollars
   
U.S. dollars
   
U.S. dollars
 
Reported net income (loss) attributable to Camtek Ltd. on GAAP basis
    1,309       699       1,285       647       (10,113 )
                                         
Acquisition of Sela and Printar related expenses (1)
    183       341       93       118       751  
Inventory write-downs (2)
    -       -       -       -       1,041  
Share-based compensation
    201       120       122       60       270  
Loss from litigation, net of tax (3)
    -       -       -       -       13,286  
                                         
Non-GAAP net income
    1,693       1,160       1,500       825       5,235  
                                         
Non –GAAP net income  per share , basic and diluted
    0.05       0.04       0.04       0.03       0.16  
                                         
Gross margin on GAAP basis
    44.6 %     43.8 %     46.7 %     42.7 %     43.4 %
Reported gross profit on GAAP basis
    23,071       20,674       12,743       10,855       43,126  
                                         
Inventory write-downs (2)
    -       -       -       -       1,041  
Share-based compensation
    23       10       16       5       24  
Non- GAAP gross margin
    23,094       20,684       12,759       10,860       44.5 %
Non-GAAP gross profit
    44.6 %     43.9 %     46.8 %     42.7 %     44,191  
                                         
Reported operating income attributable to Camtek Ltd. on GAAP basis
      2,107         2,231         1,735         1,093       (10,059 )
                                         
Acquisition of Sela and Printar related expenses (1)
    -       -       -       -       138  
Inventory write-downs (2)
    -       -       -       -       1,041  
Share-based compensation
    201       120       122       60       271  
Loss from litigation (3)
    -       -       -       -       14,600  
                                         
Non-GAAP operating income
    2,308       2,351       1,857       1,153       5,991  

 
 

 

 
(1)
During the three and the six months ended June 30, 2016 and 2015 and the twelve months ended December 31, 2015, the Company recorded acquisition expenses of $0.1 million, $0.2 million, $0.1 million, $0.3 million and $0.8 million, respectively, consisting of: (1) Revaluation adjustments of $0.1 million, $0.2 million, $0.1 million, $0.3 million and $0.6 million, respectively, of contingent consideration and certain future liabilities recorded at fair value. These amounts are recorded under finance expenses line item; (2) Implication of re-organization and impairment charges of $0, $0, $0, $0 and $0.1 million, respectively.
 
 
(2)
During the year ended December 31, 2015, the Company recorded inventory write downs in the amount of $1.0 million, recorded under cost of revenues line item.
 
 
(3)
During the year ended December 31, 2015, the Company recorded a provision of $14.6 million  ($13.3 million net of tax) in conjunction with the final court ruling on February 3, 2016 in Camtek’s appeal in the patent infringement case of Rudolph Technologies Inc. regarding the Falcon system.