Press release
CAMTEK ANNOUNCES RESULTS FOR THE SECOND QUARTER OF 2023
Expecting continued growth fueled by chiplet modules and HBM driven by AI MIGDAL HAEMEK, Israel, July 31, 2023 /PRNewswire/ -- Camtek Ltd. (NASDAQ: CAMT)
About this update from Camtek Ltd.
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 [email protected] INTERNATIONAL INVESTOR RELATIONS EK Global Investor Relations Ehud Helft Tel: (US) 1 212 378 8040 [email protected] Logo - https://mma.prnewswire.com/media/1534463/Camtek_logo.jpg View original content: https://www.prnewswire.com/news-releases/camtek-announces-results-for-the-second-quarter-of-2023-301889133.html SOURCE Camtek Ltd.