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 2018
 
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 ☒ Form 40-F ☐
 
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 ☐ No ☒
 

 
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 2, 2018
 


 
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 2018 RESULTS

Record semiconductors revenue of $27.3 million, 29% increase YoY;
Expects continued momentum with approximately 30% YoY increase in the second quarter

MIGDAL HAEMEK, Israel – May 2, 2018 – Camtek Ltd. (NASDAQ: CAMT; TASE: CAMT), today announced its financial results for the quarter ended March 31, 2018.

Highlights of the first quarter 2018
·
Revenues were $27.3 million, up 29% year-over-year, ahead of the upper end of the previously-issued guidance range and highest ever semiconductor revenue;
·
GAAP operating income was $3.6 million*, representing a 13.0% operating margin; non-GAAP operating income was $4.2 million, representing a 15.4% operating margin; and
·
GAAP net income was $3.5 million*; non-GAAP net income was $4.2 million; up 182% and 211% year-over-year, respectively;

(*) At the end of the first quarter of 2018 the Company decided to cease its efforts to utilize the remaining inventory and equipment related to its development of the functional inkjet technology (FIT) and recorded a one-time write off in the amount of $0.5 million, which is included only in the GAAP results. This has completed the shift of Camtek’s business focus purely to semiconductors.

Forward Looking Guidance

Second quarter 2018 revenues are expected to be between $29-30 million, representing a year-over-year increase of approximately 30% at the mid-point. Management continues to expect double-digit growth in revenues in 2018, with overall improvement in profitability margins.
 
Dividend Announcement
 
Camtek's Board of Directors declared a cash dividend in the amount of $0.14 per share representing an aggregate distribution of approximately $5.0 million. The dividend will be paid on May 29, 2018 to all shareholders of record at the close of the NASDAQ Global Select Market on May 16, 2018.


Management Comment

Rafi Amit Camtek’s CEO commented, “We are proud to present a very strong start to 2018, ending the quarter with record backlog. Our financials have improved across the board, and we demonstrated strong operating and net margins. Our focus on the fastest growing segments of the semiconductors industry is paying off. We are seeing strong order momentum, especially for our newest and latest generation systems. This high level of demand for our products is broad, spanning all the regions in which we operate.”

Continued Mr. Amit, “Earlier in the year we announced an order for multiple systems for front-end 2D Macro Inspection from a major Chinese manufacturer. This is in line with our strategy to penetrate new market segments such as macro inspection and special 2D applications, providing us with additional growth drivers. All this underlies our expectations of a strong year of growth and improved profitability. Our cash generation and strong balance sheet position us very well, enabling us to share the rewards of our growth with our shareholders, as well as providing us with an ability to capitalize on internal potential growth opportunities.”

The financial results and the comparison to 2017 in this press release include only those of the continuing operations.

First quarter 2018 Financial Results

Revenues for the first quarter of 2018 were $27.3 million. This compares to first quarter 2017 revenues of $21.1 million, a growth of 29%.

Gross profit on a GAAP basis in the quarter totaled $13.0 million (47.7% of revenues), compared to a gross profit of $10.3 million (48.7% of revenues) in the first quarter 2017.

Gross profit on a non-GAAP basis in the quarter totaled $13.2 million (48.5% of revenues), compared to $10.3 million (48.7% of revenues) in the first quarter 2017.

Operating profit on a GAAP basis in the quarter totaled $3.6 million (13.0% of revenues), compared to an operating profit of $1.4 million (6.8% of revenues) in the first quarter 2017.

Operating profit on a non-GAAP basis in the quarter totaled $4.2 million (15.4% of revenues), compared to $1.5 million (7.3% of revenues) in the first quarter 2017.

Net income on a GAAP basis in the quarter totaled $3.5 million, or $0.10 per diluted share, compared to net income from continuing operations of $1.3 million, or $0.04 per diluted share, in the first quarter 2017.

Net income on a non-GAAP basis in the quarter totaled $4.2 million, or $0.12 per diluted share, compared to non-GAAP net income from continuing operations of $1.3 million, or $0.04 per diluted share, in the first quarter 2017.

Cash and cash equivalents, as of March 31, 2018, were $47.2 million compared to $43.7 million as of December 31, 2017. The Company reported a positive operating cash flow of $3.6 million during the first quarter.



Conference Call

Camtek will host a conference call today, May 2, 2018, at 10:00 am ET.

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, please call one of the following telephone numbers a few minutes before the start of the call.

US:
1 888 668 9141
 
at 10:00 am Eastern Time
Israel:
03 918 0609
 
at 5:00 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.com beginning 24 hours after the call.
 
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 semiconductors 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 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, price reductions as well as due to risks identified in the documents filed by the Company with the SEC.
 
This press release provides financial measures that exclude: (i) settlement expenses; (ii) changes in valuation allowance on deferred tax assets; (iii) share based compensation expenses, (iv) discontinued operations, and (v) write off costs with regard to the FIT activities, 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.

Consolidated Balance Sheets
(In thousands)
 
   
March 31,
   
December 31,
 
   
2018
   
2017
 
   
U.S. Dollars (In thousands)
 
Assets
           
             
Current assets
           
Cash and cash equivalents
   
47,172
     
43,744
 
Trade accounts receivable, net
   
23,569
     
23,153
 
Inventories
   
21,907
     
21,336
 
Other current assets
   
2,810
     
3,215
 
                 
Total current assets
   
95,458
     
91,448
 
                 
Fixed assets, net
   
15,043
     
15,503
 
                 
Long term inventory
   
1,674
     
1,383
 
Deferred tax asset
   
3,834
     
4,067
 
Other assets, net
   
153
     
153
 
Intangible assets, net
   
488
     
482
 
                 
     
6,149
     
6,085
 
                 
Total assets
   
116,650
     
113,036
 
                 
Liabilities and shareholders’ equity
               
                 
Current liabilities
               
Trade accounts payable
   
12,514
     
10,502
 
Other current liabilities
   
14,897
     
17,395
 
                 
Total current liabilities
   
27,411
     
27,897
 
                 
Long term liabilities
               
Liability for employee severance benefits
   
885
     
838
 
     
885
     
838
 
                 
Total liabilities
   
28,296
     
28,735
 
                 
Commitments and contingencies
               
                 
Shareholders’ equity
               
Ordinary shares NIS 0.01 par value, 100,000,000 shares authorized at March 31 2018 and at December 31, 2017;
               
38,050,656 issued shares at March 31, 2018 and 37,924,507 at December 31, 2017;
               
35,958,280 shares outstanding at March 31, 2018 and 35,832,131 at December 31, 2017
   
149
     
149
 
Additional paid-in capital
   
78,956
     
78,437
 
Retained earnings (losses)
   
11,147
     
7,613
 
     
90,252
     
86,199
 
Treasury stock, at cost (2,092,376  as of March 31, 2018 and December 31, 2017)
   
(1,898
)
   
(1,898
)
                 
Total shareholders' equity
   
88,354
     
84,301
 
                 
Total liabilities and shareholders' equity
   
116,650
     
113,036
 


 
Camtek Ltd.
Consolidated Statements of Operations
(in thousands, except share data)
 
   
Three months ended
March 31,
   
Year ended
December 31,
 
   
2018
   
2017
   
2017
 
   
U.S. dollars
       
Revenues
   
27,274
     
21,146
     
93,485
 
Cost of revenues
   
14,277
     
10,857
     
47,966
 
                         
Gross profit
   
12,997
     
10,289
     
45,519
 
                         
Research and development costs
   
3,549
     
3,439
     
13,534
 
Selling, general and administrative expenses
   
5,889
     
5,405
     
22,022
 
Patent litigation expense
   
-
     
-
     
13,000
 
                         
Total operating expenses
   
9,438
     
8,844
     
48,566
 
                         
Operating income (loss)
   
3,559
     
1,445
     
(3,037
)
                         
Financial income (expenses), net
   
290
     
(154
)
   
(150
)
                         
Income (loss) from continuing operations before incomes taxes
   
3,849
     
1,291
     
(3,187
)
                         
Income tax (expense) benefit
   
(315
)
   
(40
)
   
4,875
 
                         
Net income from continuing operations
   
3,534
     
1,251
     
1,688
 
                         
Income from discontinued operations
                       
Income before income tax expense
   
-
     
2,358
     
18,302
 
Income tax expense
   
-
     
(311
)
   
(6,028
)
                         
Net income from discontinued operations
   
-
     
2,047
     
12,274
 
                         
Net income
   
3,534
     
3,298
     
13,962
 


   
Three months ended
March 31,
   
Year ended
December 31,
 
   
2018
   
2017
   
2017
 
   
U.S. dollars
       
Basic earnings  from continuing operations
   
0.10
     
0.04
     
0.05
 
                         
Basic earnings from discontinued operations
   
-
     
0.05
     
0.35
 
                         
Basic net earnings
   
0.10
     
0.09
     
0.40
 
                         
Diluted earnings from continuing operations
   
0.10
     
0.04
     
0.05
 
                         
Diluted earnings from discontinued operations
   
-
     
0.05
     
0.34
 
                         
Diluted net earnings
   
0.10
     
0.09
     
0.39
 
                         
Weighted average number of ordinary shares outstanding:
                       
                         
Basic
   
35,917
     
35,348
     
35,441
 
                         
Diluted
   
36,388
     
35,475
     
35,964
 

 
Camtek Ltd.
Reconciliation of GAAP To Non-GAAP results
(In thousands, except share data)

   
Three months ended
March 31,
   
Year ended December 31,
 
   
2018
   
2017
   
2017
 
   
U.S. dollars
   
U.S. dollars
 
Reported net income attributable to Camtek Ltd. on GAAP basis
   
3,534
     
3,298
     
13,962
 
                         
Effect of FIT reorganization (1)
   
506
     
-
     
-
 
Share-based compensation
   
146
     
92
     
426
 
Settlement expense, net of tax (2)
   
-
     
-
     
12,025
 
Realization of deferred tax assets (3)
   
-
     
-
     
(4,495
)
Attributable to discontinued operations including income from sale of PCB business (4)
   
-
     
(2,047
)
   
(12,274
)
Non-GAAP net income
   
4,186
     
1,343
     
9,644
 
                         
Non –GAAP net income per share, basic and diluted
   
0.12
     
0.04
     
0.27
 
                         
Gross margin on GAAP basis
   
47.7
%
   
48.7
%
   
48.7
%
Reported gross profit on GAAP basis
   
12,997
     
10,289
     
45,519
 
                         
Effect of FIT reorganization (1)
   
205
     
-
     
-
 
Share-based compensation
   
16
     
9
     
44
 
Non- GAAP gross margin
   
48.5
%
   
48.7
%
   
48.7
%
Non-GAAP gross profit
   
13,218
     
10,298
     
45,563
 
                         
Reported operating income (loss)
attributable to Camtek Ltd. on GAAP basis
   
3,559
     
1,445
     
(3,037
)
Effect of FIT reorganization (1)
   
506
     
-
     
-
 
Share-based compensation
   
146
     
92
     
426
 
Settlement expense (2)
   
-
     
-
     
13,000
 
Non-GAAP operating income
   
4,211
     
1,537
     
10,389
 
 
(1)
At the end of the first quarter of 2018, the Company ceased its efforts to utilize the remaining inventory and equipment related to FIT development and recorded a one-time write-off in the amount of $0.5 million, consisting of: (1) inventory write-offs of $0.2 million, recorded under the cost of revenue line item; and (2) fixed asset write-offs of $0.3 million recorded under operating expenses.
 
(2)
During the year ended December 31, 2017, the Company recorded a provision of $13 million ($12 million net of tax) in conjunction settlement with Rudolph Technologies Inc.
 
(3)
During the year ended December 31, 2017 the Company recorded net income of $4.5 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)
Due to the completion of the sale of Camtek’s PCB business at the end of the third quarter of 2017, the results of this unit ceased to be consolidated into Camtek’s financial statements and are accounted for as discontinued operations in the periods ended March 31, 2017 and December 31, 2017. Following the sale of the PCB business, the Company recorded one-time income of $12.5 million to GAAP net income in the 2017 full year results. This amount is excluded from the non-GAAP results.