6-K 1 zk1923031.htm 6-K

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 May 2019
 
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 ☒ Form 40-F ☐
 
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 ☐ No ☒

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: May 6, 2019



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 RECORD RESULTS
FOR THE FIRST QUARTER OF 2019

Revenues of $34 Million, 25% YoY growth; Operating Margin of 21.5%

MIGDAL HAEMEK, Israel – May 6, 2019 – Camtek Ltd. (NASDAQ: CAMT; TASE: CAMT), today announced its financial results for the quarter ended March 31, 2019.

Highlights of the First Quarter 2019
·
Revenues were a record at $34.0 million, up 25% year-over-year;
·
GAAP Gross margin at 50.5% versus 47.7% in Q1 last year; Non-GAAP gross margin at 50.6% versus 48.5%
·
GAAP operating income was $6.7 million and non-GAAP operating income was $7.3 million, representing margins of 19.6% and 21.5%, respectively;
·
GAAP net income of $6.0 million or $0.16 per diluted share and non-GAAP net income of $6.7 million or $0.18 per diluted share, representing year-over-year growth of 70% and 59%, respectively; and
·
Operating cash flow of $6.3 million with $61 million in net cash at quarter-end;
 
Forward Looking Guidance

Second quarter 2019 revenues are expected to be slightly ahead of those of the first quarter.
 
Management Comment

Rafi Amit Camtek’s CEO commented, “We are very pleased with our results, especially given the background of the macro-environment in the semiconductor market. We succeeded in maintaining our growth in the quarter, up 25% year-over-year, and even more significantly, we improved our operating income by over 70% year-over-year.”

Continued Mr. Amit, “Our momentum remains positive as witnessed by the orders we received in the past few weeks for various applications. Looking ahead, we expect to maintain and even slightly increase our current revenue levels going into the second quarter.”


First Quarter 2019 Financial Results

Revenues for the first quarter of 2019 were $34.0 million. This compares to first quarter 2018 revenues of $27.3 million, a growth of 25%.

Gross profit on a GAAP basis in the quarter totaled $17.2 million (50.5% of revenues), up 32% compared to a gross profit of $13.0 million (47.7% of revenues) in the first quarter of 2018. Gross profit on a non-GAAP basis in the quarter totaled $17.2 million (50.6% of revenues), up 30% compared to a gross profit of $13.2 million (48.5% of revenues) in the first quarter of 2018. The improvement in gross margin was mainly a result of the product and sales mix delivered in the quarter.

Operating profit on a GAAP basis in the quarter totaled $6.7 million (19.6% of revenues), up 87% compared to an operating income of $3.6 million (13.0% of revenues) in the first quarter of 2018. Operating profit on a non-GAAP basis in the quarter totaled $7.3 million (21.5% of revenues), up 73% compared to $4.2 million (15.4% of revenues) in the first quarter of 2018. The improvement is a result of the higher gross margin in the quarter,

Net income on a GAAP basis in the quarter totaled $6.0 million, or $0.16 per diluted share, up 71% compared to net income of $3.5 million, or $0.10 per diluted share, in the first quarter of 2018. Net income on a non-GAAP basis in the quarter totaled $6.7 million, or $0.18 per diluted share, up 59% compared to a non-GAAP net income of $4.2 million, or $0.12 per diluted share, in the first quarter of 2018.

Cash and cash equivalents, as of March 31, 2019, were $61.0 million compared to $54.9 million as of December 31, 2018. During the quarter the Company generated a positive operating cash flow of $6.3 million.

Conference Call

Camtek will host a conference call today, May 6, 2019, at 10:00 am ET.

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, 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.com beginning 24 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 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, price reductions as well as due to risks identified in the documents filed by the Company with the SEC.
 
This press release provides financial measures that exclude: (i) share based compensation expenses; and (ii) write off costs with regard to the FIT activities, 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.
 
Consolidated Balance Sheets

(In thousands)
 
   
March 31,
   
December 31,
 
   
2019
   
2018
 
   
U.S. Dollars (In thousands)
 
Assets
           
             
Current assets
           
Cash and cash equivalents
   
61,025
     
54,935
 
Trade accounts receivable, net
   
25,476
     
31,644
 
Inventories
   
32,401
     
30,109
 
Other current assets
   
3,080
     
2,613
 
                 
Total current assets
   
121,982
     
119,301
 
                 
Fixed assets, net
   
*18,329
     
17,117
 
                 
Long term inventory
   
2,153
     
2,056
 
Deferred tax asset
   
1,816
     
2,366
 
Other assets, net
   
231
     
231
 
Intangible assets, net
   
487
     
476
 
                 
     
4,687
     
5,129
 
                 
Total assets
   
144,998
     
141,547
 
                 
Liabilities and shareholders’ equity
               
                 
Current liabilities
               
Trade accounts payable
   
15,448
     
15,541
 
Other current liabilities
   
*18,968
     
23,179
 
                 
Total current liabilities
   
34,416
     
38,720
 
                 
Long term liabilities
               
Other long term liabilities
   
*2,314
     
1,420
 
     
2,314
     
1,420
 
                 
Total liabilities
   
36,730
     
40,140
 
                 
Commitments and contingencies
               
                 
Shareholders’ equity
               
Ordinary shares NIS 0.01 par value, 100,000,000 shares authorized at March 31 2019 and at December 31, 2018;
               
38,608,128 issued shares at March 31, 2019 and 38,535,445 at December 31, 2018;
               
36,515,752 shares outstanding at March 31, 2019 and 36,443,069 at December 31, 2018
   
151
     
151
 
Additional paid-in capital
   
82,707
     
81,873
 
Retained earnings
   
27,308
     
21,281
 
     
110,166
     
103,305
 
Treasury stock, at cost (2,092,376  as of March 31, 2019 and December 31, 2018)
   
(1,898
)
   
(1,898
)
                 
Total shareholders' equity
   
108,268
     
101,407
 
                 
Total liabilities and shareholders' equity
   
144,998
     
141,547
 
 
*Includes adjustment in respect of implementation of ASC 842 - Leases

Camtek Ltd.
 
Consolidated Statements of Operations

(in thousands, except share data)
 
   
Three months ended
March 31,
   
Year ended
December 31,
 
   
2019
   
2018
   
2018
 
   
U.S. dollars
       
                   
Revenues
   
34,002
     
27,274
     
123,174
 
Cost of revenues
   
16,846
     
14,277
     
62,378
 
                         
Gross profit
   
17,156
     
12,997
     
60,796
 
                         
Research and development costs
   
3,924
     
3,549
     
14,581
 
Selling, general and administrative expenses
   
6,575
     
5,889
     
26,182
 
                         
Total operating expenses
   
10,499
     
9,438
     
40,763
 
                         
Operating income
   
6,657
     
3,559
     
20,033
 
                         
Financial income, net
   
17
     
290
     
728
 
                         
Income before incomes taxes
   
6,674
     
3,849
     
20,761
 
                         
Income tax expense
   
(647
)
   
(315
)
   
(2,030
)
                         
Net income
   
6,027
     
3,534
     
18,731
 
                         
 
   
Three months ended
March 31,
   
Year ended
December 31,
 
   
2019
   
2018
   
2018
 
   
U.S. dollars
       
                   
Basic net earnings
   
0.17
     
0.10
     
0.52
 
                         
                         
Diluted net earnings
   
0.16
     
0.10
     
0.51
 
                         
Weighted average number of
                       
  ordinary shares outstanding:
                       
                         
Basic
   
36,476
     
35,917
     
36,190
 
                         
Diluted
   
37,267
     
36,388
     
36,747
 



Camtek Ltd.
 
Reconciliation of GAAP To Non-GAAP results

(In thousands, except share data)
 
   
Three months ended
March 31,
   
Year ended December 31,
 
   
2019
   
2018
   
2018
 
   
U.S. dollars
   
U.S. dollars
 
                   
Reported net income attributable to Camtek Ltd. on GAAP basis
   
6,027
     
3,534
     
18,731
 
Share-based compensation
   
645
     
146
     
1,682
 
Effect of FIT reorganization (1)
   
-
     
506
     
506
 
Non-GAAP net income
   
6,672
     
4,186
     
20,919
 
                         
Non –GAAP net income per share, basic and diluted
 
   
0.18
     
0.12
     
0.57
 
Gross margin on GAAP basis
   
50.5%
   
47.7%
 
   
49.4%
Reported gross profit on GAAP basis
 
   
17,156
     
12,997
     
60,796
 
Share-based compensation
   
61
     
16
     
167
 
Effect of FIT reorganization (1)
   
-
     
205
     
205
 
Non- GAAP gross margin
   
50.6%
   
48.5%
   
49.7%
Non-GAAP gross profit
   
17,217
     
13,218
     
61,168
 
                         
Reported operating income
attributable to Camtek Ltd. on GAAP basis
   
6,657
     
3,559
     
20,033
 
Share-based compensation
   
645
     
146
     
1,682
 
Effect of FIT reorganization (1)
   
-
     
506
     
506
 
Non-GAAP operating income
   
7,302
     
4,211
     
22,221
 
 
(1)
 
At the end of the first quarter of 2018, the Company ceased its efforts to utilize the remaining inventory and equipment related to FIT development and recorded a one-time write-off in the amount of $0.5 million, consisting of: (1) inventory write-offs of $0.2 million, recorded under the cost of revenue line item; and (2) fixed asset write-offs of $0.3 million recorded under operating expenses.