Expecting continued growth fueled by chiplet modules and
HBM driven by AI
MIGDAL HAEMEK, Israel, July 31,
2023 /PRNewswire/ -- Camtek Ltd. (NASDAQ: CAMT)
(TASE: CAMT), today announced its financial results for the second
quarter ended June 30, 2023.
Highlights of the Second Quarter of 2023
- Quarterly revenues of $73.8
million; ahead of expectations;
- GAAP operating income of $14.9
million; non-GAAP operating income of $18.3 million, representing an operating margin
of 20.2% and 24.8% respectively;
- GAAP net income of $18.5 million
and non-GAAP net income of $21.9
million;
- Positive operating cash flow of $15.6
million.
Forward-Looking Expectations
Management expects third quarter revenues to be $77-79 million with continued growth in the
fourth quarter and into 2024.
Management Comment
Rafi Amit, Camtek's CEO
commented, "We are pleased to see the improvement in our
results from the first quarter, in terms of both revenues and
margins. We are particularly encouraged by the momentum in the
industry and the flow of orders. In addition to our recently
reported 42 system orders received, a tier one HBM (High Bandwidth
Memory) manufacturer has placed an order for 10 systems, and more
orders for HBM applications are in the pipeline. We expect that
chiplet modules and HBM will account for over 30% of our business
in 2024.
Continued Mr Amit, "This will translate into initial
growth in the second half of 2023 and to a full extent in 2024,
that we believe will be a record year for Camtek. The momentum is
fueled by the major industry investment in AI. Camtek's role as a
key equipment supplier to the manufacturers of chiplet modules and
HBM will benefit from this trend. With new technologies in the
industry and the business momentum, we believe that 2024 will be an
important step year in reaching our next milestone of becoming a
500-million-dollar company."
Second Quarter 2023 Financial Results
Revenues for the second quarter of 2023 were $73.8 million, a decrease of 7% compared to the
second quarter of 2022.
Gross profit on a GAAP basis in the quarter totaled
$35.0 million (47.4% of revenues),
compared to a gross profit of $40.2
million (50.5% of revenues) in the second quarter of 2022.
Gross profit on a non-GAAP basis in the quarter totaled
$35.4 million (48.0% of revenues),
compared to $40.5 million (50.9% of
revenues) in the second quarter of 2022.
Operating profit on a GAAP basis in the quarter totaled
$14.9 million (20.2% of revenues),
compared to an operating profit of $20.9
million (26.2% of revenues) in the second quarter of 2022.
Operating profit on a non-GAAP basis in the quarter totaled
$18.3 million (24.8% of revenues),
compared to $23.8 million (29.9% of
revenues) in the second quarter of 2022.
Net income on a GAAP basis in the quarter totaled
$18.5 million, or $0.38 per diluted share, compared to net income
of $19.2 million, or $0.40 per diluted share, in the second quarter of
2022. Net income on a non-GAAP basis in the quarter totaled
$21.9 million, or $0.45 per diluted share, compared to non-GAAP net
income of $22.1 million, or
$0.46 per diluted share, in the
second quarter of 2022.
Cash and cash equivalents, short-term and long-term
deposits, as of June 30, 2023
were $506.3 million compared to
$492.7 million as of March 31, 2023. During the quarter, Camtek
generated $15.6 million in operating
cash flow.
Conference Call
Camtek will host a video conference call today via Zoom,
July 31, 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, which will email the link with which to access the video
call:
https://us06web.zoom.us/webinar/register/WN_pV6GHff9Se2rqbF_JJbxLw
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 the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements are based on Camtek's current beliefs, expectations and
assumptions about its business and industry, all of which may
change. Forward-looking statements 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, including our expected
revenue for the third quarter of 2023 and full year 2023 and
statements relating to the compound semiconductors market and our
position in this market and the anticipated timing of delivery of
the systems. 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. Factors that may cause
our actual results to differ materially from those contained in the
forward-looking statements include, but are not limited to, the
impact of any new or revised export and/or import and
doing-business regulations or sanctions, such as changes in U.S.
trade policies; 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; the impact of
the war in Ukraine, rising
inflation, rising interest rates, volatile exchange rates and
commodities' prices, and continuing or new effects as a result of
the COVID-19 pandemic; 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
purchases of 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. We caution you not
to place undue reliance on forward-looking statements, which speak
only as of the date hereof. Camtek does not assume any obligation
to update any forward-looking statements in order to reflect events
or circumstances that may arise after the date of this release
unless required by law.
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)
|
|
|
June
30,
|
December
31,
|
|
2023
|
2022
|
|
U.S.
dollars
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
232,787
|
148,156
|
Short-term
deposits
|
198,500
|
251,500
|
Trade accounts
receivable, net
|
79,025
|
80,611
|
Inventories
|
61,207
|
65,541
|
Other current
assets
|
14,998
|
11,156
|
|
|
|
Total current
assets
|
586,517
|
556,964
|
|
|
|
Long-term
deposits
|
75,000
|
79,000
|
Long term
inventory
|
7,125
|
5,357
|
Deferred tax asset,
net
|
724
|
1,004
|
Other assets,
net
|
2,557
|
1,024
|
Property, plant and
equipment, net
|
37,131
|
33,141
|
Intangible assets,
net
|
602
|
597
|
|
|
|
Total non-current
assets
|
123,139
|
120,123
|
|
|
|
Total
assets
|
709,656
|
677,087
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
Current
liabilities
|
|
|
Trade accounts
payable
|
31,238
|
31,667
|
Other current
liabilities
|
45,529
|
56,833
|
|
|
|
Total current
liabilities
|
76,767
|
88,500
|
|
|
|
Long-term
liabilities
|
|
|
Other long-term
liabilities
|
10,198
|
8,748
|
Convertible
notes
|
196,284
|
195,737
|
Total long-term
liabilities
|
206,482
|
204,485
|
|
|
|
Total
liabilities
|
283,249
|
292,985
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
Ordinary shares NIS
0.01 par value, 100,000,000 shares authorized at
June 30, 2023 and at December 31, 2022;
|
|
|
46,811,504
issued shares at June 30, 2023 and 46,505,318
at
December 31, 2022;
|
|
|
44,719,128 shares
outstanding at June 30, 2023 and 44,412,942 at
December 31, 2022;
|
175
|
175
|
Additional paid-in
capital
|
193,626
|
187,105
|
Retained
earnings
|
234,504
|
198,720
|
|
428,305
|
386,000
|
Treasury stock, at cost
(2,092,376 shares as of June 30, 2023 and
December 31, 2022)
|
(1,898)
|
(1,898)
|
|
|
|
Total shareholders'
equity
|
426,407
|
384,102
|
|
|
|
Total liabilities
and shareholders' equity
|
709,656
|
677,087
|
|
|
|
|
Camtek Ltd.
|
Consolidated Statements of
Operations
|
(in thousands, except share
data)
|
|
|
|
|
|
|
|
|
Six months ended
|
Three months
|
Year ended
|
|
|
June 30,
|
ended June 30,
|
December 31,
|
|
|
|
2023
|
2022
|
2023
|
2022
|
2022
|
|
|
|
U.S. dollars
|
U.S. dollars
|
U.S. dollars
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
146,215
|
156,744
|
73,758
|
79,578
|
320,909
|
Cost of
revenues
|
|
|
77,378
|
76,693
|
38,785
|
39,385
|
161,053
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
68,837
|
80,051
|
34,973
|
40,193
|
159,856
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development costs
|
|
|
15,672
|
15,199
|
8,118
|
7,522
|
28,859
|
Selling, general and
administrative
|
|
|
24,037
|
24,451
|
11,922
|
11,796
|
49,499
|
Total operating
expenses
|
|
|
39,709
|
39,650
|
20,040
|
19,318
|
78,358
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
29,128
|
40,401
|
14,933
|
20,875
|
81,498
|
|
|
|
|
|
|
|
|
Financial income,
net
|
|
|
10,864
|
860
|
5,754
|
227
|
6,690
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
39,992
|
41,261
|
20,687
|
21,102
|
88,188
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
(4,208)
|
(3,700)
|
(2,148)
|
(1,919)
|
(8,239)
|
|
|
|
|
|
|
|
|
Net income
|
|
|
35,784
|
37,561
|
18,539
|
19,183
|
79,949
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share information:
|
|
|
|
|
|
|
|
Six months ended
|
Three months
|
Year ended
|
|
|
June 30,
|
ended June 30,
|
December 31,
|
|
|
|
2023
|
2022
|
2023
|
2022
|
2022
|
|
|
|
U.S. dollars
|
U.S. dollars
|
U.S. dollars
|
|
|
|
|
|
|
|
|
Basic net earnings per share
|
|
|
0.8
|
0.86
|
0.42
|
0.44
|
1.81
|
|
|
|
|
|
|
|
|
Diluted net earnings per share
|
|
|
0.74
|
0.78
|
0.38
|
0.4
|
1.66
|
|
|
|
|
|
|
|
|
Weighted average number of
|
|
|
|
|
|
|
|
ordinary shares
outstanding
|
|
|
|
|
|
|
|
(in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
44,562
|
43,929
|
44,572
|
44,006
|
44,158
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
48,531
|
48,150
|
48,628
|
48,153
|
48,229
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Camtek
Ltd.
|
Reconciliation of
GAAP To Non-GAAP results
|
(In thousands,
except share data)
|
|
|
|
|
|
|
|
Six Months
ended
|
Three Months
ended
|
Year
ended
|
|
June
30,
|
June
30
|
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
|
35,784
|
37,561
|
18,539
|
19,183
|
79,949
|
Share-based
compensation
|
6,520
|
5,592
|
3,326
|
2,927
|
10,523
|
Non-GAAP net
income
|
42,304
|
43,153
|
21,865
|
22,110
|
90,472
|
|
|
|
|
|
|
Non–GAAP net income
per diluted share
|
|
0.90
|
|
0.46
|
1.88
|
Gross margin on GAAP
basis
|
47.1 %
|
51.1 %
|
47.4 %
|
50.5 %
|
49.8 %
|
Reported gross
profit on GAAP basis
|
68,837
|
80,051
|
34,973
|
40,193
|
159,856
|
Share-based
compensation
|
807
|
628
|
415
|
326
|
1,217
|
Non- GAAP gross
profit
|
69,644
|
80,679
|
35,388
|
40,519
|
161,073
|
Non-GAAP gross
margin
|
47.6 %
|
51.5 %
|
48.0 %
|
50.9 %
|
50.2 %
|
|
|
|
|
|
|
Reported operating
income attributable to Camtek Ltd. on GAAP basis
|
29,128
|
40,401
|
14,933
|
20,875
|
70,898
|
Share-based
compensation
|
6,520
|
5,592
|
3,326
|
2,927
|
5,815
|
Non-GAAP operating
income
|
35,648
|
45,993
|
18,259
|
23,802
|
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.