zk1618445.htm


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 2016
 
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 x Form 40-F o
 
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 o No x
 

 
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 5, 2016
 
 

 
 
  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 FIRST QUARTER 2016 RESULTS

Q1 revenues of $24.5 million-12% increase year over year; Expects growth in Q2 - guidance of $25-27 million

MIGDAL HAEMEK, Israel – May 5, 2016 – Camtek Ltd. (NASDAQ: CAMT; TASE: CAMT), today announced its financial results for the quarter ended March 31, 2016.

Highlights of the First Quarter 2016
 
 
·
Revenues of $24.5 million, up 12% year over year;
 
·
Non-GAAP operating income of $0.5 million; GAAP operating income of $0.4 million;
 
·
Non-GAAP net income of $0.2 million; GAAP net income of $0 million;
 
·
Q2 revenue guidance of $25 to $27 million, representing 6% sequential growth at the midpoint;

Rafi Amit, Camtek’s Chairman and CEO, commented, “We are pleased with our revenues in the first quarter of 2016, a 12% increase over  those of last year in what is typically the weakest quarter. Gross margin in the quarter was lower than Camtek’s usual range due to a specific turnkey deal from a PCB customer with longer-term strategic value. This order also had an impact on our overall profitability in the quarter. We expect the gross margin to return to the typical range in the second quarter. The advanced packaging market continues to grow and capture a larger portion of the capital expenditure made by major manufacturers. We remain in a strong position to capitalize on this.”

Added Mr. Amit, “For the second quarter, we expect revenue between $25- $27 million. Our end-markets remain strong and we are on track for a solid 2016.”

First Quarter 2016 Financial Results

Revenues for the first quarter of 2016 were $24.5 million. This compares to first quarter 2015 revenues of $21.8 million and fourth quarter 2015 revenues of $25.8 million.

Gross profit on a GAAP basis in the quarter totaled $10.3 million (42.2% of revenues), compared to $9.8 million (45.1% of revenues) in the first quarter 2015 and $10.6 million in the fourth quarter of 2015 (41.3% of revenues).

Gross profit on a non-GAAP basis in the quarter totaled $10.3 million (42.3% of revenues), compared to $9.8 million (45.2% of revenues) in the first quarter 2015 and $11.7 million in the fourth quarter of 2015 (45.4% of revenues).

 
 

 

Operating profit on a GAAP basis in the quarter totaled $372 thousand (1.5% of revenues), compared to $1.1 million (5.2% of revenues) in the first quarter 2015 and an operating loss of $14.1 million in the fourth quarter of 2015. Fourth quarter 2015 results included a $14.6 million one-time charge for the loss in the patent litigation process against Rudolph Technologies.

Operating profit on a non-GAAP basis in the quarter totaled $451 thousand (1.8% of revenues), compared to $1.2 million (5.5% of revenues) in the first quarter 2015 and $1.8 million in the fourth quarter of 2015 (6.8% of revenues).

Financial expenses on a GAAP basis in the quarter totaled $232 thousand, compared to $847 thousand in the first quarter 2015 and $388 thousand in the fourth quarter of 2015.

Financial expenses on a non-GAAP basis in the quarter totaled $142 thousand, compared to $624 thousand in the first quarter 2015 and $238 thousand in the fourth quarter of 2015.

Net income on a GAAP basis in the quarter totaled $24 thousand, or $0.00 per diluted share. This compares to net income of $52 thousand, or $0.00 per diluted share, in the first quarter 2015 and a net loss of $10.1 million, or $0.30 per share, in the fourth quarter of 2015. Fourth quarter 2015 results included a $14.6 million one-time charge for the loss in the patent litigation process against Rudolph Technologies.

Net income on a non-GAAP basis in the quarter totaled $193 thousand, or $0.01 per diluted share. This compares to net income of $334 thousand, or $0.01 per diluted share, in the first quarter 2015 and a net income of $2.9 million, or $0.08 per diluted share, in the fourth quarter of 2015.

Cash, cash equivalents, short and long-term restricted deposits, as of March 31, 2016 were $33.7 million (out of which $7.9 million are restricted deposits) compared to $38.7 million as of December 31, 2015. The Company reported a negative operating cash flow of $4.6 million during the quarter, principally due to timing of collection. Due to a local tax issue, the $14.6 million judgement payment to Rudolph Technologies has not been paid yet and is expected to be paid once the court will provide his final guidance.

Conference Call

Camtek will host a conference call today, May 5, 2016, at 9:00 am ET.

Rafi Amit, Chairman and CEO, 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 9141at 9:00 am Eastern Time
Israel:                                               03 918 0685at 4:00 pm Israel Time
International:                           +972 3 918 0685
 
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.
 
 
 

 

ABOUT CAMTEK LTD.

Camtek Ltd. provides automated and technologically advanced solutions dedicated to enhancing production processes, increasing products yield and reliability, enabling and supporting customers' 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.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, 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) revaluation of liabilities with respect to the acquisitions of Printar and Sela; (ii) share based compensation expenses; (iii) inventory write-downs related to the one-color Gryphon systems; (iv) goodwill impairment; and (v) loss from litigation, 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)
 
   
March 31,
   
December 31,
 
   
2016
   
2015
 
   
U.S. Dollars (In thousands)
 
Assets
           
Current assets
           
Cash and cash equivalents
    25,777       30,833  
Short-term restricted deposits
    7,875       7,875  
Trade accounts receivable, net
    31,755       27,003  
Inventories
    29,147       27,599  
Due from affiliated companies
    -       559  
Other current assets
    2,207       1,712  
Deferred tax asset
    177       177  
                 
Total current assets
    96,938       95,758  
                 
Fixed assets, net
    13,602       13,531  
                 
Long term inventory
    1,744       1,979  
Deferred tax asset
    3,955       3,955  
Other assets, net
    248       248  
Intangible assets, net
    887       795  
      6,834       6,977  
                 
Total assets
    117,374       116,266  
                 
Liabilities and shareholders’ equity
               
                 
Current liabilities
               
Due to affiliated companies
    54       -  
Trade accounts payable
    12,527       11,812  
Other current liabilities
    30,812       30,712  
                 
Total current liabilities
    43,393       42,524  
                 
Long term liabilities
               
Liability for employee severance benefits
    848       772  
Other long term liabilities
    4,828       4,768  
      5,676       5,540  
Total liabilities
    49,069       48,064  
                 
Commitments and contingencies
               
                 
Shareholders’ equity
               
Ordinary shares NIS 0.01 par value, 100,000,000 shares authorized at March 31 2016 and at December 31, 2015;
               
37,440,552 issued shares at March 31, 2016 and at December 31, 2015;
               
35,348,176 shares outstanding at March 31, 2016 and at December 31, 2015
    148       148  
Additional paid-in capital
    76,113       76,034  
Retained losses
    (6,058 )     (6,082 )
      70,203       70,100  
Treasury stock, at cost (2,092,376  as of March 31, 2016 and December 31, 2015)
    (1,898 )     (1,898 )
                 
Total shareholders' equity
    68,305       68,202  
                 
Total liabilities and shareholders' equity
    117,374       116,266  
 
 
 

 
Camtek Ltd.
Consolidated Statements of Operations

(in thousands, except share data)
 
   
Three months ended
March 31,
   
Year ended
December 31,
 
   
2016
   
2015
   
2015
 
   
U.S. dollars
       
Revenues
    24,458       21,750       99,275  
Cost of revenues
    14,130       11,931       56,149  
                         
Gross profit
    10,328       9,819       43,126  
                         
Research and development costs
    3,982       3,400       14,860  
Selling, general and administrative expenses
    5,974       5,281       23,587  
Reorganization and impairment
    -       -       138  
Loss from litigation
    -       -       14,600  
                         
Total operating expenses
    9,956       8,681       53,185  
                         
Operating income (loss)
    372       1,138       (10,059 )
                         
Financial expenses, net
    (232 )     (847 )     (1,877 )
                         
Income (loss) before income taxes
    140       291       (11,936 )
                         
Income tax (expense) benefit
    (116 )     (239 )     1,823  
                         
Net income (loss)
    24       52       (10,113 )
                         
Earnings (loss) per ordinary share:
                       
                         
Basic
    0.00       0.00       (0.30 )
                         
Diluted
    0.00       0.00       (0.30 )
                         
Weighted average number of ordinary
                       
 shares outstanding:
                       
                         
Basic
    35,348       30,494       33,352  
                         
Diluted
    31,163       30,555       33,352  

 

 
 

 

Camtek Ltd.
Reconciliation of GAAP To Non-GAAP results

(In thousands, except share data)
 
   
Three months ended
 March 31,
   
Year ended December 31,
 
   
2016
   
2015
   
2015
 
   
U.S. dollars
   
U.S. dollars
 
Reported net income (loss) attributable to Camtek Ltd. on GAAP basis
      24         52       (10,113 )
                         
Acquisition of Sela and Printar related expenses (1)
    90       223       751  
Inventory write-downs (2)
    -       -       1,041  
Share-based compensation
    79       60       270  
Loss from litigation, net of tax (3)
    -       -       13,286  
Non-GAAP net income
    193       335       5,235  
                         
Non –GAAP net income per share, basic and diluted
    0.01       0.01       0.16  
                         
Gross margin on GAAP basis     42.2     45.1     43.4
Reported gross profit on GAAP basis
    10,328       9,819       43,126  
                         
Acquisition of Sela and Printar related expenses (1)
    -       -       -  
Inventory write-downs (2)
    -               1,041  
Share-based compensation
    7       6       24  
Non- GAAP gross margin
    42.3 %     45.2 %     44.5 %
Non-GAAP gross profit
    10,335       9,825       44,191  
                         
Reported operating income (loss) attributable to Camtek Ltd. on GAAP basis
      372         1,138       (10,059 )
Acquisition of Sela and Printar related expenses (1)
    -       -       138  
Inventory write-downs (2)
    -               1,041  
Share-based compensation
    79       60       271  
Loss from litigation (3)
    -               14,600  
Non-GAAP operating income
    451       1,198       5,991  
 
 
(1)
During the three months ended March 31, 2016 and 2015 and the year ended December 31, 2015, the Company recorded acquisition expenses of $0.1 million, $0.2 million, and $0.8 million, respectively, consisting of: (1) Revaluation adjustments of $0.1 million, $0.2 million, and $0.6 million, respectively, of contingent consideration and certain future liabilities recorded at fair value. These amounts are recorded under finance expenses line item; and (2) Implication of re-organization and impairment charges of $0, $0, and $0.1 million respectively.
 
 
(2)
During the three months ended March 31, 2016 and 2015 and the year ended December 31, 2015, the Company recorded inventory write downs in the amount of $0 million, $0 million, and $1.0 million, respectively, recorded under cost of revenues line item.
 
 
(3)
During the year ended December 31, 2015, the Company recorded a provision of $14.6 million  ($13.3 million net of tax) in conjunction with the final court ruling on February 3, 2016 in Camtek’s appeal in the patent infringement case of Rudolph Technologies Inc. regarding the Falcon system.