Sequential Growth in Revenues and Profitability
MIGDAL HAEMEK, Israel, February 20 /PRNewswire-FirstCall/ -- Camtek Ltd. (NASDAQ:CAMT) (TASE:CAMT), today announced results for the fourth quarter and year ended December 31, 2007.
The Company reported revenues for the fourth quarter of 2007 of $21.0 million, equivalent to the $21.0 million reported in the fourth quarter of 2006, and an increase of 4% sequentially from $20.1 million in the third quarter of 2007.
Gross profit margin for the fourth quarter of 2007 was 43.7%, as compared to 44.5% for the fourth quarter of 2006, and 37.6% for the third quarter of 2007.
Income before tax for the fourth quarter of 2007 was $0.2 million. This compares to a loss before tax of $2.5 million in the fourth quarter of 2006. For the previous quarter in 2007, income before tax was $0.2 million.
Interpretation No. 48, "Accounting for Uncertainty in Income Taxes-an interpretation of FASB Statement No. 109" ("FIN 48"), was effective for the Company, for the first time, in fiscal year 2007. The Company has not yet completed a thorough review of the application of FIN 48 as it relates to its subsidiaries abroad for the determination of its effects, if any, on its results of operations and financial position. The Company will, if necessary, issue a supplemental press release following the completion of its analysis of the effects of FIN 48 to report any material adjustment to its net loss and loss per share for the year ended December 31, 2007.
Net income (without impact of FIN 48 review) for the fourth quarter of 2007 was $0.3 million, or $0.01 per diluted share. This compares to a net loss of $2.2 million, or $0.07 per diluted share, in the fourth quarter of 2006. For the previous quarter in 2007, net income (without impact of FIN 48 review) was $87 thousand, or $0.00 per diluted share.
The Company reported a positive operating cash flow of $2.7 million in the fourth quarter.
Revenues for the year ended December 31, 2007, were $71.0 million, a decrease of 29% from $100.1 million reported for the year ended December 31, 2006. Gross profit margin for 2007 was 40.9%, compared to 51.6% in 2006. Net loss (without impact of FIN 48 review) for the year ended December 31, 2007 was $7.5 million, or $0.25 per diluted share, compared to a net income of $11.6 million, or $0.39 per diluted share, for the year ended December 31, 2006.
"The fourth quarter continued and built on the positive trend that we resumed in the third quarter. We are very pleased to present much improved margins and a positive cash flow," commented Rafi Amit, Camtek's CEO. "We are seeing an increase in demand for our systems for the semiconductor manufacturing and packaging industry, and we believe this is very sustainable going forward. Our sales to the PCB industry have remained solid throughout the second half of the year, and we see it as indicative of the warm acceptance of our new generation of products as well as the strengthening of our competitive position in this market." Mr. Amit continued, "In line with our long-term strategy, we are maintaining our on-going R&D investment in continually enhancing our products to deliver increasing value to our customers. In 2007 we enhanced the Falcon line with even higher throughput and detection ability and introduced a new generation of AOI and Verification systems to the PCB market. In 2008, we plan to introduce additional products and expand our market coverage." Mr. Amit concluded, "Assuming that the stream of incoming orders from the semiconductors and PCB industries remains in its current course, we expect revenues for the first quarter of 2008 to come at a similar level to that we reported today." Camtek will host a conference call today, February 20, at 9:00am ET. Rafi Amit, Chief Executive Officer, and Ronit Dulberg, 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 at least 10 minutes before the start of the call, referencing the "Camtek fourth quarter 2007 results conference call".
US toll free: +1-888-935-4577 at 9:00 a.m. Eastern Time
Israel toll free: +1-809-246-002 at 4:00 p.m. Israel Time
International: +1-718-354-1389
For those unable to participate, the teleconference will be available for replay on Camtek's website http://www.camtek.co.il/ beginning 24 hours after the call.
About Camtek Ltd.
With headquarters in Migdal Ha'Emek Israel, Camtek Ltd., designs, develops, manufactures, and markets automatic optical inspection systems and related products. Camtek's automatic inspection systems are used to enhance both production processes and yield for manufacturers in the printed circuit board industry, the high density interconnect substrate industry and the semiconductor manufacturing and packaging industry.
This press release is available at http://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, price reductions as well as due to risks identified in the documents filed by the Company with the SEC.
Consolidated Balance Sheets
(in thousands, except share data) December December
2007 2006
U.S. Dollars ASSETS CURRENT ASSETS
Cash and cash equivalents 18,601 23,358
Marketable securities 1,395 2,099
Accounts receivable, net 23,500 29,434
Inventories 34,243 41,414
Due from affiliates 251 180
Other current assets 2,623 2,372
Deferred tax 65 65 Total current assets 80,678 98,922 Fixed assets, net 15,325 10,729 Marketable securities 1,075 -
Deferred tax 380 369
Other assets 993 786 2,448 1,155 Total assets 98,451 110,806 LIABILITIES CURRENT LIABILITIES
Accounts payable -trade 7,960 11,801
Due to affiliates 866 814
Other current liabilities 11,233 12,831 Total current liabilities 20,059 25,446 Convertible loan 5,000 5,000
Liability for employee severance benefits 268 222 Total liabilities 25,327 30,668 SHAREHOLDERS' EQUITY
Ordinary shares NIS 0.01 par value, authorized
100,000,000 shares,
issued 31,145,334 in 2007 and 31,052,474
in 2006, outstanding 30,133,715 in 2007
and 30,040,855 in 2006. 132 132
Additional paid-in capital 59,878 59,420
Accumulated other comprehensive loss
Unrealized loss on marketable securities - (1)
Retained earnings 14,107 21,580
74,117 81,131
Treasury stock, at cost (1,011,619 shares
in 2007 and 2006) (993) (993) Total shareholders' equity 73,124 80,138 Total liabilities and shareholders' equity 98,451 110,806
Note: Without impact of FIN 48 review Consolidated Statements of Operations
(in thousands, except share data) Three Months ended Year ended
December 31, December 31,
2007 2006 2007 2006
U.S. dollars U.S. dollars Revenues 21,028 21,006 70,969 100,055
Cost of revenues 11,841 11,666 41,940 48,442 Gross profit 9,187 9,340 29,029 51,613 Research and development costs 2,963 3,662 12,111 11,831
Selling, general and
administrative expenses 6,098 8,120 24,119 27,850 9,061 11,782 36,230 39,681 Operating income (loss) 126 (2,442) (7,201) 11,932 Financial income (expenses), net 66 (115) (128) (288) Income (loss) before income taxes 192 (2,557) (7,329) 11,644 Income tax 55 333 (144) (41) Net income (loss) 247 (2,224) (7,473) 11,603 Net income (loss) per ordinary
share: Basic 0.01 (0.07) (0.25) 0.40 Diluted 0.01 (0.07) (0.25) 0.39 Weighted average number of ordinary
shares outstanding: Basic 30,212 30,200 30,145 29,176 Diluted 30,212 30,200 30,145 29,553
Note: Without impact of FIN 48 review Contact details
Camtek
Ronit Dulberg, CFO
Tel: +972-4-604-8308
Fax: +972-4-604-8300
Mobile: +972-54-9050776
IR International
GK International IR
Ehud Helft / Kenny Green
Tel: (US) +1-646-201-9246
DATASOURCE: Camtek Ltd CONTACT: Contact details: Camtek, Ronit Dulberg, CFO, Tel: +972-4-604-8308, Fax: +972-4-604-8300, Mobile: +972-54-9050776, . IR International, GK International IR, Ehud Helft
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