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 February 2019
 
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: February 13, 2019
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 RECORD RESULTS
FOR THE FOURTH QUARTER AND FULL YEAR 2018

Expects Continued Strength into the First Quarter

MIGDAL HAEMEK, Israel – February 13, 2019 – Camtek Ltd. (NASDAQ: CAMT; TASE: CAMT), today announced its financial results for the quarter and year ended December 31, 2018.

Highlights of the Fourth Quarter of 2018

 ·
Revenues of $33.2 million, up 28% year-over-year and ahead of the upper-end of the guidance range of $32-33 million;

·
GAAP operating income of $6.2 million; non-GAAP operating income of $6.9 million, representing an operating margin of 18.7% and 20.7% respectively;

·
GAAP net income of $5.8 million and non-GAAP net income of $6.4 million, representing year-over-year growth of 101% and 85%, respectively; and

·
Strong operating cash flow of $7.2 million;

Highlights of the Full Year 2018

 ·
Revenues of $123.2 million; a 32% year over year increase;

·
GAAP operating income of $20.0 million;

·
Non-GAAP operating income of $22.2 million, more than double that of 2017;

·
GAAP net income of $18.7 million;

·
Non-GAAP net income of $20.9 million; $0.57 per diluted share vs. $0.27 in 2017;

·
Strong operating cash flow of $16.8 million in 2018 leading to year-end net cash balance of $54.9 million;

Forward Looking Guidance

First quarter 2019 revenues are expected to increase to $33.5-34.5 million, implying continued sequential growth and year-over-year growth of 25% at the mid-point.


Management Comment

Rafi Amit Camtek’s CEO commented, “We are very pleased with our performance in 2018.  We set ambitious targets in terms of revenue growth and improved profitability and we have exceeded them all. We ended 2018 with over 30% growth in revenue and close to 20% operating margin. We are aware of the uncertainty in the semiconductor market, however we don’t see any significant change in the segments in which we operate.”

Continued Mr. Amit, “Earlier this week, we announced an investment and important alliance with Chroma, a leading Taiwanese high precision test and measurement equipment corporation. Chroma will enable us to bolster our presence in Asia and especially Taiwan, and will also allow us to expand our addressable markets by leveraging our technological capabilities into new segments.”

The financial results and the comparison to 2017 in this press release include only those of the continuing operations. Camtek sold its PCB operations in the third quarter of 2017.

Fourth Quarter 2018 Financial Results

Revenues for the fourth quarter of 2018 were $33.2 million. This compares to fourth quarter 2017 revenues of $25.8 million, a growth of 28%.

Gross profit on a GAAP basis in the quarter totaled $16.7 million (50.4% of revenues), compared to a gross profit of $12.3 million (47.7% of revenues) in the fourth quarter 2017. Gross profit on a non-GAAP basis in the quarter totaled $16.8 million (50.6% of revenues), compared to $12.3 million (47.8% of revenues) in the fourth quarter 2017. The variance in the gross margin between quarters is a function of the product and sales mix delivered in the quarter.

Operating profit on a GAAP basis in the quarter totaled $6.2 million (18.7% of revenues), compared to an operating income of $3.7 million (14.3% of revenues) in the fourth quarter 2017. Operating profit on a non-GAAP basis in the quarter totaled $6.9 million (20.7% of revenues), compared to $3.8 million (14.8% of revenues) in the fourth quarter 2017.

Net income on a GAAP basis in the quarter totaled $5.8 million, or $0.16 per diluted share, compared to net income from continuing operations of $3.3 million, or $0.09 per diluted share, in the fourth quarter 2017. Net income on a non-GAAP basis in the quarter totaled $6.4 million, or $0.17 per diluted share, compared to non-GAAP net income from continuing operations of $3.5 million, or $0.10 per diluted share, in the fourth quarter 2017.

Cash and cash equivalents, as of December 31, 2018 were $54.9 million compared to $48.3 million as of September 30, 2018. During the fourth quarter, Camtek generated $7.2 million in operating cash flow.

Full Year 2018 Results Summary

Revenues for 2018 were $123.2 million, an increase of 32% over the $93.4 million reported in 2017.

Gross profit on a GAAP basis totaled $60.8 million (49.4% of revenues), compared to $45.5 million (48.7% of revenues) in 2017.  Gross profit on a non-GAAP totaled $61.2 million (49.7% of revenues), compared to $45.6 million (48.7% of revenues) in 2017.

Operating income on a GAAP basis totaled $20.0 million (16.3% of revenues), compared to an operating loss of $3.0 million in 2017.  The GAAP operating loss in 2017 included a one-time expense of $13 million due to a settlement payment. Operating income on a non-GAAP basis totaled $22.2 million (18.0% of revenues), compared to $10.4 million (11.1% of revenues) in 2017.

Net income on a GAAP basis totaled $18.7 million, or $0.52 per diluted share. This compares to net income of $1.7 million, or $0.05 per diluted share, in 2017. Net income on a non-GAAP basis totaled $20.9 million, or $0.57 per diluted share. This compares to net income of $9.6 million, or $0.27 per diluted share, in 2017.

Conference Call

Camtek will host a conference call today, February 13, 2019, at 10am 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 10am Eastern Time
Israel:
03 918 0609
  
at 5pm 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 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 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

   
December 31,
  
   
2018
    
2017
  
   
U.S. Dollars (In thousands)
  

   
     
 
Assets
            
Current assets
            
Cash and cash equivalents
    
54,935
      
43,744
  
Accounts receivable, net
    
31,644
      
23,153
  
Inventories
    
30,109
      
21,336
  
Other current assets
    
2,613
      
3,215
  
Total current assets
    
119,301
      
91,448
  
                 
Fixed assets, net
    
17,117
      
15,503
  
                 
Long term inventory
    
2,056
      
1,383
  
Deferred tax asset
    
2,366
      
4,067
  
Other assets, net
    
231
      
153
  
Intangible assets, net
    
476
      
482
  
Total long-term assets
    
5,129
      
6,085
  
                 
Total assets
    
141,547
      
113,036
  
                 
Liabilities and shareholders’ equity
                
                 
Current liabilities
                
Accounts payable – trade
    
15,541
      
10,502
  
Other current liabilities
    
23,701
      
17,395
  
Total current liabilities
    
39,242
      
27,897
  
                 
Long term liabilities
                
Liability for employee severance benefits
    
898
      
838
  
Total long-term liabilities
    
898
      
838
  
                 
Total liabilities
    
40,140
      
28,735
  
                 
Commitments and contingencies
                
                 
Shareholders’ equity
                
Ordinary shares NIS 0.01 par value, authorized 100,000,000 shares,
                
 38,535,445 issued as of December 31, 2018, and 37,924,507 as of
                
 December 31, 2017, outstanding 36,443,069 as of December 31, 2018,
                
 and 35,832,131 as of December 31, 2017
    
151
      
149
  
Additional paid-in capital
    
81,873
      
78,437
  
Retained earnings
    
21,281
      
7,613
  
     
103,305
      
86,199
  
Treasury stock, at cost (2,092,376 as of December 31, 2018 and December 31, 2017)
    
(1,898
)
    
(1,898
)
                 
Total shareholders' equity
    
101,407
      
84,301
  
                 
Total liabilities and shareholders' equity
    
141,547
      
113,036
  
fdffbgdfbdfbdfdfgdfb

Camtek Ltd.

Consolidated Statements of Operations

(In thousands, except share data)

   
Year ended December 31,
    
Three Months ended December 31,
  
   
2018
    
2017
    
2018
    
2017
  
   
U.S. dollars
    
U.S. dollars
  
Revenues
    
123,174
      
93,485
      
33,174
      
25,844
  
Cost of revenues
    
62,378
      
47,966
      
16,457
      
13,519
  
                                 
Gross profit
    
60,796
      
45,519
      
16,717
      
12,325
  
                                 
Research and development costs
    
14,581
      
13,534
      
4,125
      
3,467
  
Selling, general and administrative expenses
    
26,182
      
22,022
      
6,390
      
5,175
  
Litigation settlement expenses
    
-
      
13,000
      
-
      
-
  
     
40,763
      
48,556
      
10,515
      
8,642
  
                                 
Operating income (loss)
    
20,033
      
(3,037
)
    
6,202
      
3,683
  
                                 
Financial income (expenses), net
    
728
      
(150
)
    
237
      
49
  
                                 
Income (loss) before income taxes
    
20,761
      
(3,187
)
    
6,439
      
3,732
  
                                 
Income taxes (expense)
    
(2,030
)
    
4,875
      
(666
)
    
(406
)
                                 
Net income from continuing operations
    
18,731
      
1,688
      
5,773
      
3,326
  
                                 
Discontinued operations *
                                
Income from discontinued operations
                                
                                 
Income before tax expense
    
-
      
18,302
      
-
      
-
  
Income taxes (expense)
    
-
      
(6,028
)
    
-
      
(465
)
Income (loss) from discontinued operations
    
-
      
12,274
      
-
      
(465
)
                                 
Net income
    
18,731
      
13,962
      
5,773
      
2,861
  

(*)          The financial results of the PCB business are presented as discontinued operations.

Net income (loss) per ordinary share:

   
Year ended December 31,
    
Three Months ended December 31,
  
   
2018
    
2017
    
2018
    
2017
  

 
U.S. dollars
    
U.S. dollars
  
Basic earnings from continuing operation    
0.52
      
0.05
      
0.16
      
0.09
  
                                 
Basic earnings (losses) from discontinued operation *    
-
      
0.35
      
-
      
(0.01
)
                                 
Basic net earnings    
0.52
      
0.4
      
0.16
      
0.08
  
                                 
Diluted earnings from continuing operation    
0.51
      
0.05
      
0.16
      
0.09
  
                                 
Diluted earnings (losses) from discontinued operation *    
-
      
0.34
      
-
      
(0.01
)
                                 
Diluted net earnings    
0.51
      
0.39
      
0.16
      
0.08
  
                                 
Weighted average number of  ordinary shares outstanding:                                
                                 
Basic
    
36,190
      
35,441
      
36,440
      
35,644
  
                                 
Diluted
    
36,747
      
35,964
      
37,020
      
36,094
  

(*)          The financial results of the PCB business are presented as discontinued operations.

Reconciliation of GAAP To Non-GAAP results

(In thousands, except share data)

   
Year ended December 31,
    
Three Months ended December 31,
  
   
2018
    
2017
    
2018
    
2017
  

 
U.S. dollars
    
U.S. dollars
  
Reported net income attributable to Camtek Ltd. on GAAP basis
   
18,731
      
13,962
      
5,773
      
2,861
  
                                 
Effect of FIT reorganization (1)
    
506
      
-
      
-
      
-
  
Share-based compensation
    
1,682
      
426
      
654
      
150
  
Settlement expense, net of tax (2)
    
-
      
12,025
      
-
      
-
  
Realization of deferred tax assets (3)
    
-
      
(4,495
)
    
-
      
-
  
Attributable to discontinued operations
    
-
      
(12,274
)
    
-
      
465
  
Non-GAAP net income
    
20,919
      
9,644
      
6,427
      
3,476
  
                                 
Non–GAAP net income per diluted share
    
0.57
      
0.27
      
0.17
      
0.10
  
                                 
Gross margin on GAAP basis
    
49.4
%
    
48.7
%
    
50.4
%
    
47.7
%
Reported gross profit on GAAP basis
   
60,796
      
45,519
      
16,717
      
12,325
  
                                 
Effect of FIT reorganization (1)
    
205
      
-
      
-
      
-
  
Share-based compensation
    
167
      
44
      
62
      
16
  
Non-GAAP gross margin
    
49.7
%
    
48.7
%
    
50.6
%
    
47.8
%
Non-GAAP gross profit
    
61,168
      
45,563
      
16,779
      
12,341
  
                                 
Reported operating income (loss) attributable to Camtek Ltd. on GAAP basis
    
20,033
      
(3,037
)
    
6,202
      
3,683
  
                                 
Effect of FIT reorganization (1)
    
506
      
-
      
-
      
-
  
Share-based compensation
    
1,682
      
426
      
654
      
150
  
Settlement expense (2)
    
-
      
13,000
      
-
      
-
  
Non-GAAP operating income
    
22,221
      
10,389
      
6,854
      
3,833
  


(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)
In the third quarter of 2017, the Company recorded a provision of $13 million ($12 million net of tax) in conjunction settlement with Rudolph Technologies Inc.


(3)
In the third quarter of 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.