Click here to close now.

SYS-CON MEDIA Authors: VictorOps Blog, Tim Hinds, Mike Kavis, Peter Silva, Glenn Rossman

News Feed Item

Camtek Announces Fourth Quarter & Full Year 2013 Results

Q4 revenues of $23.3 million; 3D inkjet system started testing at a customer site

MIGDAL HAEMEK, Israel, Feb. 13, 2014 /PRNewswire/ -- Camtek Ltd. (NASDAQ and TASE: CAMT), today announced its financial results for the full year and quarter ended December 31, 2013.

Highlights of the Full Year 2013

  • Revenues of $85.4 million;
  • Non-GAAP operating income of $3.2 million; GAAP operating income of $1.1 million;
  • Non-GAAP net income of $2.1 million; GAAP net income of $7 thousand;
  • Positive operating cash flow of $4.7 million; Cash and equivalents of $22.5 million as of December 31, 2013.

Highlights of the Fourth Quarter 2013

  • Revenues of $23.3 million;
  • Non-GAAP operating income of $1.1 million; GAAP operating loss of $304 thousand;
  • Non-GAAP net income of $778 thousand; GAAP net income of $660 thousand;
  • Positive operating cash flow of $2.6 million;
  • 3D Inkjet System for the PCB market was installed at customer site for testing;

A corporate reorganization was implemented during the quarter due to management's decision to increase its focus on its inspection and metrology in the semiconductor market and discontinuing its R&D efforts of the Sela Xact product line. As a result, in the fourth quarter there was a one-time negative impact on GAAP net income of approximately $1.5 million due to certain charges (partially offset by items of one time) income and income related to the re-organization.  In addition, in the fourth quarter there was a positive impact on GAAP net income of $1.3 million as a result of a decrease in the valuation allowance on deferred tax assets following the evaluation of the potential for realization of the assets based on projected future earnings. These amounts were included in the non-GAAP adjustment.

Results for the three-month period and full year ended December 31, 2013 on a non-GAAP basis, exclude the following items: (i) share based compensation expenses; (ii) write off of inventory and fixed-assets primarily related to the discontinued Sela product line; (iii) the impact of reorganization and impairment charges; and (iv) realization of deferred tax assets. A reconciliation between the GAAP and non-GAAP results appears in the tables at the end of this press release.

Rafi Amit, Camtek's Active Chairman, commented: "2013 ends a year of investment and promise. As we move into 2014, we are increasing our focus on the two key markets we operate in – that of semiconductor inspection and metrology, as well as PCB inspection and the 3D inkjet system."

"I am pleased to announce that the customer-site testing of our 3D inkjet system started and is being operated in a production environment. We expect this phase to continue for a few months, and upon satisfactory results, commercial installations will begin during the second half of the year," continued Mr. Amit.

Concluded Mr. Amit: "Looking ahead, we see strength in the semiconductor industry and we expect to see growth in our inspection and metrology business in the coming quarters, predominantly related to advanced packaging applications. In terms of guidance for the first quarter of 2014, we expect revenues of between $21-23 million, representing midpoint year-over-year growth of above 20%."

Fourth quarter 2013 Financial Results

Revenues for the fourth quarter of 2013 were $23.3 million. This is a 7% increase from prior quarter revenues of $21.7 million and a 32% increase from fourth quarter 2012 revenues of $17.6 million. The increase is mainly related to a more favorable environment in the semiconductor market.

Gross profit on a GAAP basis in the quarter totaled $6.7 million (28.7% of revenues). This is a 31% decrease compared to $9.7 million (44.6% of revenues) in the prior quarter and a 12% increase compared to $6.0 million in the fourth quarter of 2012 (33.8% of revenues). Cost of goods sold on a GAAP basis in the quarter included an inventory write-off primarily related to the discontinued Sela product line of $3.6 million.

Gross profit on a non-GAAP basis in the quarter totaled $10.6 million (45.6% of revenues). This is a 9% increase compared to $9.8 million (45.0% of revenues) in the prior quarter and a 41% increase compared to $7.6 million (42.9% of revenues) in the fourth quarter of 2012.

Operating loss on a GAAP basis in the quarter was $304 thousand. This is compared to an operating income of $600 thousand (2.8% of revenues) in the prior quarter and to operating loss of $5.3 million in the fourth quarter of 2012.  The operating loss in the fourth quarter of 2013 included various one-time expenses (partially offset by one time income) primarily related to the discontinuance of the Sela product line amounting to a net expense of $1.5 million.

Operating profit on a non-GAAP basis in the quarter was $1.1 million (4.7% of revenues). This is compared to operating income of $819 thousand (3.8% of revenues) in the prior quarter and an operating loss of $575 thousand in the fourth quarter of 2012.

Net income on a GAAP basis in the quarter totaled $660 thousand, or $0.02 per share. This is compared to a net loss of $122 thousand or $0.00 per share in the prior quarter and a net loss of $3.3 million or $0.11 per share in the fourth quarter of 2012. 

Net income on a non-GAAP basis in the quarter was $778 thousand or $0.03 per diluted share. This is compared to a net income of $545 thousand or $0.02 per share in the prior quarter and net loss of $0.9 million or $0.03 per share in the fourth quarter of 2012.

Full Year 2013 Results Summary

Revenues for 2013 were $85.4 million, an increase of 1% compared to $84.5 million, as reported in 2012.

Gross profit on a GAAP basis for 2013 was $34.4 million (40.3% of revenues) compared to gross profit of $37.1 million (43.8% of revenues) in 2012. Gross profit on a non-GAAP basis for 2013, was $38.6 million (45.2% of revenues), compared to $39.0 million (46.1% of revenues) in 2012. The decrease in gross margin on a non-GAAP basis compared to the prior year is a result of a mix in product sold.

Operating income on a GAAP basis for 2013, was $1.1 million (1.3% of revenues) compared to an operating loss of $20 thousand in 2012. Non-GAAP operating income in 2013 was $3.2 million (3.7% of revenues) compared to an operating income of $5.3 million (6.3% of revenues) in 2012. Operating expenses in 2013 were higher mainly as a result of the impact of the exchange rate between the Israeli Shekel and the US Dollar.

Net income on a GAAP basis for 2013 was $7 thousand compared to a net income of $3 thousand in 2012.  Net income on a non-GAAP basis for 2013 was $2.1 million, compared to a net income of $4.6 million in 2012.

Cash, cash equivalents and short-term deposits, net of bank loans as of December 31, 2013 were $22.5 million compared to $21.1 million as of September 30, 2013. The Company generated $2.6 million from operating cash flow during the fourth quarter of 2013. For the year, the Company generated a positive operating cash flow of $4.7 million.

Conference Call

Camtek will host a conference call today, February 13, 2014, at 9:00am ET.

Rafi Amit, Active Chairman and incoming Chief Executive Officer, Roy Porat, outgoing Chief Executive Officer, and Moshe Eisenberg, Chief Financial Officer, 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 9:00 am Eastern Time

Israel:               




03 918 0609




at 4:00 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.co.il/ beginning 24 hours after the call.

ABOUT CAMTEK LTD.

Camtek Ltd. provides automated and technologically advanced solutions dedicated to enhancing production processes and increasing yields, enabling and supporting customer's 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.co.il.

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) share based compensation expenses; (ii) write off of inventory and fixed-assets primarily related to the discontinued Sela product line; (iii) the impact of reorganization and impairment charges; and (iv) realization of deferred tax assets; 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)






December 31,



2013

2012



U.S. Dollars (In thousands)

Assets






Current assets



Cash and cash equivalents

16,495

18,867

Short-term deposits

6,000

7,160

Accounts receivable, net

27,048

23,076

Inventories

17,911

18,335

Due from affiliated companies

233

391

Other current assets

1,913

2,210

Deferred tax asset

832

367




Total current assets

70,432

70,406







Fixed assets, net

14,481

15,822




Long term inventory

2,225

7,090

Long-term restricted deposit

729

729

Deferred tax asset

1,081

107

Other assets, net

339

304

Intangible assets, net

1,008

2,971

Goodwill

1,555

1,579





6,937

12,780




Total assets

91,850

99,008




Liabilities and shareholders' equity






Current liabilities



Short term bank loans

-

4,160

Accounts payable – trade

7,753

7,610

Long term bank loans – current portion

-

1,592

Other current liabilities

15,585

13,850




Total current liabilities

23,338

27,212




Long term liabilities



Long term bank loans

-

500

Liability for employee severance benefits

858

710

Other long term liabilities

5,758

10,249


6,616

11,459




Total liabilities

29,954

38,671




Commitments and contingencies






Shareholders' equity



Ordinary shares NIS 0.01 par value, authorized 100,000,000 shares,



32,497,902 issued as of December 31, 2013, and 31,989,309 as of 
     December 31, 2012, outstanding 30,405,526 as of December 31, 2013,



and 29,896,933 as of December 31, 2012

134

133

Additional paid-in capital

62,966

61,415

Retained earnings (losses)

694

687


63,794

62,235

Treasury stock, at cost (2,092,376  as of December 31, 2013 and
December 31, 2012)

(1,898)

(1,898)




Total shareholders' equity

61,896

60,337




Total liabilities and shareholders' equity

91,850

99,008






 

Camtek Ltd.

Consolidated Statements of Operations


(in thousands, except share data)





Year ended

 December 31,

Three Months ended
December 31,


2013

2012

2013

2012


U.S. dollars

U.S. dollars






Revenues

85,405

84,547

23,333

17,619

Cost of revenues

51,003

47,482

16,640

11,667






Gross profit

34,402

37,065

6,693

5,952











Research and development costs

(14,370)

(12,916)

(3,655)

(3,022)

Selling, general and administrative





expenses     

(22,362)

**(21,138)

(6,808)

(5,188)

Implication of re-organization and impairment

losses

 

* 3,466

             

* (3,031)

 

* 3,466

 

* (3,031)


(33,266)

(37,085)

(6,997)

(11,241)











Operating income (loss)

1,136

(20)

(304)

(5,289)






Financial income (expenses), net

(1,738)

233

(57)

1,807






Income (loss) before income





 taxes

(602)

213

(361)

(3,482)






Income taxes (expense)

609

(210)

1,021

202






Net income (loss)

7

3

660

(3,280)






Net income (loss) per ordinary share:










Basic

0.00

0.00

0.02

(0.11)






Diluted

0.00

0.00

0.02

(0.11)






Weighted average number of





  ordinary shares outstanding:










Basic

30,040

29,849

30,181

29,851






Diluted

30,094

30,013

30,224

29,851


(*) Relates to disposal of Sela operation and Sela and Printar impairment charges in respect of goodwill and other intangible assets

(**) Including income of approximately 1 million dollars related to a settlement with a former service provider of the company.

 

Camtek Ltd.

Reconciliation of GAAP To Non-GAAP results


(In thousands, except share data)





Year ended

 December 31,

Three Months
ended December 31,


2013

2012

2013

2012


U.S. dollars

U.S. dollars






Reported net income (loss) attributable to Camtek Ltd. on GAAP basis

7

3

660

(3,280)

Acquisition of Sela and Printar related expenses (1)

 

(1,949)

 

2,597

 

(3,466)

 

816

Inventory and fixed asset write –downs (2)

4,433

1,515

4,433

1,515

Share-based compensation

377

401

(52)

93

Realization of deferred tax assets (3)

(1,287)

-

(1,287)

-

Employee related charges (4)

490

-

490

-

Shelf registration expenses

-

94

-

-

Non-GAAP net income (loss)

2,071

4,610

778

(856)






Non –GAAP net income (loss) per share , basic and diluted

0.07

0.16

0.03

(0.03)






Gross margin on GAAP basis

40.3%

43.8%

28.7%

33.8%

Reported gross profit on GAAP basis

34,402

37,065

6,693

5,952






Acquisition of Sela and Printar related expenses ( 1)

225

300

-

75

Inventory and fixed asset write –downs (2)

3,915

1,515

3,915

1,515

Share-based compensation

55

97

5

22

Employee related charges (4)

25

-

25

-

Non- GAAP gross margin

45.2%

46.1%

45.6%

42.9%

Non-GAAP gross profit

38,622

38,977

10,638

7,564






Reported operating income (loss)
attributable to Camtek Ltd. on GAAP basis

1,136

(20)

(304)

(5,289)






Acquisition of Sela and Printar related expenses (1)

(3,241)

3,331

(3,466)

3,106

Inventory and fixed asset write –downs (2)

4,433

1,515

4,433

1,515

Share-based compensation

377

401

(52)

93

Employee related charges (4)

490

-

490

-

Shelf registration expenses

-

94

-

-






Non-GAAP operating income

3,195

5,321

1,101

(575)






 

(1) During the three and twelve months ended December 31, 2013 and 2012, the Company recorded acquisition expenses of $(3.5) million, $(2.0) million, $(0.8) million and $(2.6) million, respectively, consisting of: (1) Revaluation adjustments of $0, $1.3 million, $(2.3) million and $(0.7) 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 $(3.5) million, $(3.5) million, $3.1 and $3.1, respectively; and (3) $0 million, $0.2 million, $0.08 million and $0.3 million, respectively, with respect to amortization of intangible assets acquired recorded under cost of revenues line item.

 

(2) During the three and twelve months ended December 31, 2013 and 2012, the Company recorded inventory and fixed asset write downs in the amount of $4.4 million, $4.4 million, $1.5 million and $1.5 million, respectively, consisting of $3.9 million, $3.9 million, $1.5 million and $1.5 million of inventory and fixed assets recorded under cogs of revenues line item and $0.5 million, $0.5 million, $0 and $0 of fixed assets in operating expenses.

 

(3) During the three and twelve months ended December 31, 2013, the Company recorded net income of $1.3 million as a result of a decrease in the valuation allowance on deferred tax assets following the evaluation of the realizability of the assets based on projected future earnings.

 

(4) During the three and twelve months ended December 31, 2013, the Company recorded net employee related expenses of $0.5 million as a result of internal reorganization.

 

CAMTEK LTD.

Moshe Eisenberg, CFO

Tel: +972 4 604 8308

Mobile: +972 54 900 7100

[email protected]



INTERNATIONAL INVESTOR RELATIONS

GK Investor Relations

Ehud Helft / Kenny Green
Tel: (US) 1 646 201 9246

[email protected]

SOURCE Camtek Ltd.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
VictorOps is making on-call suck less with the only collaborative alert management platform on the market. With easy on-call scheduling management, a real-time incident timeline that gives you contextual relevance around your alerts and powerful reporting features that make post-mortems more effective, VictorOps helps your IT/DevOps team solve problems faster.
Skeuomorphism usually means retaining existing design cues in something new that doesn’t actually need them. However, the concept of skeuomorphism can be thought of as relating more broadly to applying existing patterns to new technologies that, in fact, cry out for new approaches. In his session at DevOps Summit, Gordon Haff, Senior Cloud Strategy Marketing and Evangelism Manager at Red Hat, will discuss why containers should be paired with new architectural practices such as microservices ra...
Roberto Medrano, Executive Vice President at SOA Software, had reached 30,000 page views on his home page - http://RobertoMedrano.SYS-CON.com/ - on the SYS-CON family of online magazines, which includes Cloud Computing Journal, Internet of Things Journal, Big Data Journal, and SOA World Magazine. He is a recognized executive in the information technology fields of SOA, internet security, governance, and compliance. He has extensive experience with both start-ups and large companies, having been ...
The industrial software market has treated data with the mentality of “collect everything now, worry about how to use it later.” We now find ourselves buried in data, with the pervasive connectivity of the (Industrial) Internet of Things only piling on more numbers. There’s too much data and not enough information. In his session at @ThingsExpo, Bob Gates, Global Marketing Director, GE’s Intelligent Platforms business, to discuss how realizing the power of IoT, software developers are now focu...
Operational Hadoop and the Lambda Architecture for Streaming Data Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing...
SYS-CON Events announced today that Vitria Technology, Inc. will exhibit at SYS-CON’s @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Vitria will showcase the company’s new IoT Analytics Platform through live demonstrations at booth #330. Vitria’s IoT Analytics Platform, fully integrated and powered by an operational intelligence engine, enables customers to rapidly build and operationalize advanced analytics to deliver timely business outcomes ...
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, it is now feasible to create a rich desktop and tuned mobile experience with a single codebase, without compromising performance or usability.
SYS-CON Events announced today Arista Networks will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Arista Networks was founded to deliver software-driven cloud networking solutions for large data center and computing environments. Arista’s award-winning 10/40/100GbE switches redefine scalability, robustness, and price-performance, with over 3,000 customers and more than three million cloud networking ports depl...
Application metrics, logs, and business KPIs are a goldmine. It’s easy to get started with the ELK stack (Elasticsearch, Logstash and Kibana) – you can see lots of people coming up with impressive dashboards, in less than a day, with no previous experience. Going from proof-of-concept to production tends to be a bit more difficult, unfortunately, and it tends to gobble up our attention, time, and money. In his session at DevOps Summit, Otis Gospodnetić, co-author of Lucene in Action and founder...
The speed of software changes in growing and large scale rapid-paced DevOps environments presents a challenge for continuous testing. Many organizations struggle to get this right. Practices that work for small scale continuous testing may not be sufficient as the requirements grow. In his session at DevOps Summit, Marc Hornbeek, Sr. Solutions Architect of DevOps continuous test solutions at Spirent Communications, will explain the best practices of continuous testing at high scale, which is r...
SYS-CON Events announced today that Open Data Centers (ODC), a carrier-neutral colocation provider, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Open Data Centers is a carrier-neutral data center operator in New Jersey and New York City offering alternative connectivity options for carriers, service providers and enterprise customers.
Thanks to Docker, it becomes very easy to leverage containers to build, ship, and run any Linux application on any kind of infrastructure. Docker is particularly helpful for microservice architectures because their successful implementation relies on a fast, efficient deployment mechanism – which is precisely one of the features of Docker. Microservice architectures are therefore becoming more popular, and are increasingly seen as an interesting option even for smaller projects, instead of bein...
Security can create serious friction for DevOps processes. We've come up with an approach to alleviate the friction and provide security value to DevOps teams. In her session at DevOps Summit, Shannon Lietz, Senior Manager of DevSecOps at Intuit, will discuss how DevSecOps got started and how it has evolved. Shannon Lietz has over two decades of experience pursuing next generation security solutions. She is currently the DevSecOps Leader for Intuit where she is responsible for setting and driv...
The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured. In his session at @Things...
In his session at DevOps Summit, Tapabrata Pal, Director of Enterprise Architecture at Capital One, will tell a story about how Capital One has embraced Agile and DevOps Security practices across the Enterprise – driven by Enterprise Architecture; bringing in Development, Operations and Information Security organizations together. Capital Ones DevOpsSec practice is based upon three "pillars" – Shift-Left, Automate Everything, Dashboard Everything. Within about three years, from 100% waterfall, C...