Technology

CAMTEK ANNOUNCES RESULTS FOR THE SECOND QUARTER OF 2024

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Record revenues of $103 million; Q3 revenue guidance of $107-110 million, up ~35% YoY, driven by High Performance Computing applications

MIGDAL HAEMEK, Israel, Aug. 1, 2024 /PRNewswire/ — Camtek Ltd. (NASDAQ: CAMT) (TASE: CAMT), today announced its financial results for the second quarter, ended June 30, 2024.

Highlights of the Second Quarter of 2024

Record revenues of $102.6 million, a 39% year-over-year (YoY) increase;GAAP operating income of $25.9 million (up 73% YoY) and non-GAAP operating income of $30.8 million (up 69% YoY), representing operating margins of 25.2% and 30.0%, respectively;GAAP net income of $28.0 million and non-GAAP net income of $32.6 million; andStrong positive operating cash flow of $49.2 million.  

Forward-Looking Expectations

Management expects revenues in the third quarter of 2024 between $107-110 million, representing a 35% mid-point increase over the third quarter of 2023. Given the significant visibility and strong ongoing order flow, continued sequential growth is expected into the fourth quarter.

Management Comment 

Rafi Amit, Camtek’s CEO commented, “I am very pleased with the quarterly results: year-over-year growth in revenue of 39% and strong operating margin of 30%. Our strong results were driven by the continued demand for high performance computing (HPC) applications, which accounted for over half of our business in the quarter.”

Concluded Mr. Amit, “The main growth driver in the semiconductors market is HPC modules for Generative AI and we are well positioned to benefit from it.

“Looking ahead, demand for HPC modules, as well as industry analysts’ forecasts of growing demand for end-products such as mobile phones and PCs, plus major investment by key countries in establishing new local semiconductor manufacturing facilities, all give us further confidence for continued growth in the coming quarters.”

Second Quarter 2024 Financial Results 

Revenues for the second quarter of 2024 were 102.6 million. This compares to second quarter 2023 revenues of $73.8 million, a year-over-year growth of 39%.

Gross profit on a GAAP basis in the quarter totaled $51.1 million (49.9% of revenues), an increase of 46% compared to a gross profit of $35.0 million (47.4% of revenues) in the second quarter of 2023.

Gross profit on a non-GAAP basis in the quarter totaled $52.4 million (51.0% of revenues), an increase of 48% compared to a gross profit of $35.4 million (48.0% of revenues) in the second quarter of 2023.

Operating income on a GAAP basis in the quarter totaled $25.9 million (25.2% of revenues), an increase of 73% compared to an operating income of $14.9 million (20.2% of revenues) in the second quarter of 2023.

Operating income on a non-GAAP basis in the quarter totaled $30.8 million (30.0% of revenues), an increase of 69% compared to $18.3 million (24.8% of revenues) in the second quarter of 2023.

Net income on a GAAP basis in the quarter totaled $28.0 million, or $0.57 per diluted share, an increase of 51% compared to net income of $18.5 million, or $0.39 per diluted share, in the second quarter of 2023.

Net income on a non-GAAP basis in the quarter totaled $32.6 million, or $0.66 per diluted share, an increase of 49% compared to a non-GAAP net income of $21.9 million, or $0.46 per diluted share, in the second quarter of 2023. 

Cash and cash equivalents, short-term and long-term deposits, and marketable securities, as of June 30, 2024, were $453.9 million compared to $466.3 million as of March 31, 2024. During the second quarter, the Company generated an operating cash flow of $42.2 million.

Conference Call

Camtek will host a video conference call/webinar today via Zoom, on Thursday, August 1, 2024, at 09:00 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 webinar, please register using the following link, which will provide access to the video call: https://us06web.zoom.us/webinar/register/WN_ZoPdAmVCR4ed7p0O78BeUg

For those wishing to listen via phone, following registration, the dial in link will be sent. For any problems in registering, please email Camtek’s investor relations a few hours in advance of the call.

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 developer and manufacturer of high-end inspection and metrology equipment for the semiconductor industry. Camtek’s systems inspect IC and measure IC features on wafers throughout the production process of semiconductor devices, covering the front and mid-end and up to the beginning of assembly (Post Dicing). Camtek’s systems inspect wafers for 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 http://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 Camtek’s current beliefs, expectations and assumptions about its business and industry, all of which may change.  Forward-looking statements 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, including statements relating to the compound semiconductors market and our position in this market and the anticipated timing of delivery of the systems. 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. Factors that may cause our actual results to differ materially from those contained in the forward-looking statements include, but are not limited to the effects of the evolving nature of the war situation in Israel, and the related evolving regional conflicts; the continued demand for HPC, HBM and Chiplet devices resulting from, among other things, the field of AI surging worldwide across companies, industries and nations; our dependency upon the semiconductor industry and the risk that unfavorable economic conditions or low capital expenditures may negatively impact our operating results;  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, 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; and those other factors discussed in our Annual Report on Form 20-F as published on March 21, 2024, as well as other documents that may be subsequently filed by Camtek from time to time with the Securities and Exchange Commission. We caution you not to place undue reliance on forward-looking statements, which speak only as of the date hereof. Camtek does not assume any obligation to update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release unless required by law. 

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: (i) share based compensation expenses; and (ii) acquisition related 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. The results reported in this press-release are preliminary unaudited results, and investors should be aware of possible discrepancies between these results and the audited results to be reported, due to various factors.

 

Consolidated Balance Sheets

(In thousands)                  

June 30,

December 31,

2024

2023

U.S. Dollars

Assets

Current assets

Cash and cash equivalents

86,201

119,968

Short-term deposits

256,250

215,250

Marketable securities

23,615

18,816

Trade accounts receivable, net

68,151

87,300

Inventories

99,215

85,905

Other current assets

27,048

19,548

Total current assets

560,480

546,787

Long-term deposits

6,000

21,000

Marketable securities

81,817

73,576

Long-term inventory

9,553

9,023

Deferred tax asset, net

2,642

2,642

Other assets, net

1,947

1,370

Property, plant and equipment, net

44,246

41,987

Intangible assets, net

15,145

16,937

Goodwill

74,345

74,345

    Total non- current assets

235,695

240,880

Total assets

796,175

787,667

Liabilities and shareholders’ equity

Current liabilities

Trade accounts payable

37,757

42,187

Other current liabilities

69,777

54,487

Total current liabilities

107,534

96,674

Long-term liabilities

Deferred tax liabilities, net

5,845

7,541

Other long-term liabilities

9,988

10,473

Convertible notes

197,378

196,831

    Total long-term liabilities

213,211

214,845

Total liabilities

320,745

311,519

Commitments and contingencies

Shareholders’ equity

Ordinary shares NIS 0.01 par value, 100,000,000 shares authorized at June 30,

2024 and at December 31, 2023;

47,410,314 issued shares at June 30, 2024 and 46,993,998 at December 31,

2023;

45,317,938 shares outstanding at June 30, 2024 and 44,901,622 at

December 31, 2023

 

177

 

176

Additional paid-in capital

207,090

200,389

Accumulated other comprehensive income (loss)

(9)

129

Retained earnings

270,070

277,352

477,328

478,046

Treasury stock, at cost (2,092,376 shares as of June 30, 2024 and December

31, 2023)

 

(1,898)

 

(1,898)

Total shareholders’ equity

475,430

476,148

Total liabilities and shareholders’ equity

796,175

787,667

 

Camtek Ltd.

Consolidated Statements of Operations                    

(in thousands, except share data)

 

Six months ended

 June 30,

 

Three months

ended June 30,

 

Year ended

December 31,

2024

2023

2024

2023

2023

U.S. dollars

U.S. dollars

U.S. dollars

Revenues     

199,601

146,215

102,591

73,758

315,375

Cost of revenues

103,638

77,378

51,447

38,785

167,742

Gross profit

95,963

68,837

51,144

34,973

147,633

Operating expenses:

Research and development costs

18,146

15,672

9,196

8,118

31,470

Selling, general and administrative costs

30,694

24,037

16,063

11,922

50,751

Total operating expenses

48,840

39,709

25,259

20,040

82,221

Operating income

47,123

29,128

25,885

14,933

65,412

Financial income, net

10,624

10,864

5,014

5,754

22,218

Income before income taxes

57,747

39,992

30,899

20,687

87,630

Income tax expense

(4,984)

(4,208)

(2,935)

(2,148)

(8,998)

Net income 

52,763

35,784

27,964

18,539

78,632

     Earnings per share information:

 

 

 

Six months ended

 June 30,

 

Three months

ended June 30,

 

Year ended

December 31,

2024

2023

2024

2023

2023

U.S. dollars

U.S. dollars

U.S. dollars

          Basic net earnings per share

1.17

0.80

0.62

0.42

1.76

          Diluted net earnings per share

1.08

0.74

0.57

0.38

1.63

     Weighted average number of 

       ordinary shares outstanding 

       (in thousands):

     Basic

45,160

44,562

45,246

44,572

44,725

     Diluted

49,283

48,531

49,310

48,628

48,863

 

Camtek Ltd.

Reconciliation of GAAP To Non-GAAP results

(In thousands, except share data)                                                     

Six Months ended

 June 30,

Three Months ended

 June 30,

Year ended

December 31,

2024

2023

2024

2023

2023

U.S. dollars

U.S. dollars

U.S. dollars

Reported net income attributable to

     Camtek Ltd. on GAAP basis

 

52,763

 

35,784

 

27,964

 

18,539

 

78,632

Acquisition of FRT related expenses (1)

4,034

650

4,550

Share-based compensation

7,109

6,520

3,991

3,326

12,525

Non-GAAP net income

63,906

42,304

32,605

21,865

95,707

Non–GAAP net income per diluted share

1.30

0.87

0.66

0.44

1.96

Gross margin on GAAP basis

48.1 %

47.1 %

49.9 %

47.4 %

46.8 %

Reported gross profit on GAAP basis

95,963

68,837

51,144

34,973

147,633

Acquisition of FRT related expenses (1)

4,582

610

3,492

Share-based compensation

1,006

807

608

415

1,591

Non- GAAP gross profit

101,551

69,644

52,362

35,388

152,716

Non-GAAP gross margin

50.9 %

47.6 %

51.0 %

48.0 %

48.4 %

Reported operating income attributable

to Camtek Ltd. on GAAP basis

 

47,123

 

29,128

 

25,885

 

14,933

 

65,412

Acquisition of FRT related expenses (1)

5,599

928

5,406

Share-based compensation

7,109

6,520

3,991

3,326

12,525

Non-GAAP operating income

59,831

35,648

30,804

18,259

83,343

 

(1) During the six-month period ended June 30, 2024, the Company recorded acquisition-related expenses of $4.0 million, consisting of: (1) inventory written-up to fair value in purchase accounting charges of $3.4 million. This amount is recorded under cost of revenues line item. (2) $1.2 million amortization of intangible assets acquired recorded under cost of revenues line item. (3) $0.6 million amortization of intangible assets acquired recorded under sales and marketing expenses line item. (4) $0.4 million re-organization expenses, recorded under the general and administrative expenses line item. (5) $1.6 million reversal of tax provision related to the above adjustment, recorded under the tax expense line item.

During the three-month period ended June 30, 2024, the Company recorded acquisition-related expenses of $0.6 million, consisting of: (1) $0.6 million amortization of intangible assets acquired recorded under cost of revenues line item. (2) $0.3 million amortization of intangible assets acquired recorded under sales and marketing expenses line item. (3) $0.3 million reversal of tax provision related to the above adjustment, recorded under the tax expense line item.

During the year ended December 31, 2023, the Company recorded acquisition expenses of $4.5 million, consisting of: (1) inventory written-up to fair value in purchase accounting charges of $2.2 million. This amount was recorded under cost of revenues line item. (2) $0.4 million amortization of intangible assets acquired recorded under cost of revenues line item. (3) Inventory write-off of $0.9 million recorded under costs of revenues line item. (4) $0.2 million amortization of intangible assets acquired recorded under sales and marketing expenses line item. (5) Acquisition expenses of $1.7 million recorded under general and administrative expenses line item. (6) $0.9 million reversal of tax provision related to the above adjustment, recorded under the tax expense line item.

CAMTEK LTD.
Moshe Eisenberg, CFO
Tel: +972 4 604 8308
Mobile: +972 54 900 7100
moshee@camtek.com

INTERNATIONAL INVESTOR RELATIONS 
EK Global Investor Relations
Ehud Helft
Tel: (US) 1 212 378 8040
camtek@ekgir.com

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SOURCE Camtek Ltd.

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