Press release
CAMTEK ANNOUNCES RESULTS FOR THE THIRD QUARTER OF 2023
Revenue of $80.5 million; Continued growth expected in the fourth quarter and into 2024 MIGDAL HAEMEK, Israel, Nov. 14, 2023 /PRNewswire/ -- Camtek Ltd.
About this update from Camtek Ltd.
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) N ine 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 [email protected] m 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-third-quarter-of-2023-301987349.html SOURCE Camtek Ltd.