Q2 revenue guidance of $100-102
million - 37% YoY growth - driven by HBM and Chiplets
MIGDAL HAEMEK, Israel, May 9, 2024
/PRNewswire/ -- Camtek Ltd. (NASDAQ: CAMT) (TASE: CAMT), today
announced its financial results for the first quarter, ended
March 31, 2024.
Highlights of the First Quarter of 2024
- Record revenues of $97.0 million,
a 34% year-over-year (YoY) increase;
- GAAP operating income of $21.2
million (up 50% YoY) and non-GAAP operating profit of
$29.0 million (up 67% YoY),
representing operating margins of 21.9% and 29.9%,
respectively;
- GAAP net income of $24.8 million
and non-GAAP net income of $31.3
million; and
- Strong positive operating cash flow of $20.2 million.
Forward-Looking Expectations
Management expects revenues in the second quarter of 2024
between $100-102 million,
representing a 37% mid-point increase over the second quarter of
2023. Given the significant visibility and strong ongoing order
flow, continued sequential growth is expected throughout 2024.
Management Comment
Rafi Amit, Camtek's CEO
commented, "I am pleased with the record revenues in the first
quarter driven by strong demand for HBM and chiplets applications,
which accounted for 60% of our business. The field of AI is
changing our industry and Camtek is well positioned to benefit from
this transformative trend. AI technology needs High Performance
Computing (HPC) capabilities, which are based on architectures
utilizing High Bandwidth Memory (HBM) and Chiplet devices as key
components. The on-going surge in demand for HPC and our leading
position at all tier-1 manufacturers continue to be the main
drivers behind our strong results and outlook."
Concluded Mr. Amit, "Looking beyond 2024, as AI continues
to transform the industry, we are very confident in our ability to
capitalize on the trend and grow towards the milestone of annual
sales in excess of $500 million."
First Quarter 2024 Financial Results
Revenues for the first quarter of 2024 were
$97.0 million. This compares to first
quarter 2023 revenues of $72.5
million, a year-over-year growth of 34%.
Gross profit on a GAAP basis in the quarter totaled
$44.7 million (46.1% of revenues), an
increase of 32% compared to a gross profit of $33.9 million (46.7% of revenues) in the first
quarter of 2023.
Gross profit on a non-GAAP basis in the quarter totaled
$49.1 million (50.6% of revenues), an
increase of 43% compared to a gross profit of $34.3 million (47.3% of revenues) in the first
quarter of 2023.
Operating profit on a GAAP basis in the quarter totaled
$21.2 million (21.9% of revenues), an
increase of 50% compared to an operating profit of $14.2 million (19.6% of revenues) in the first
quarter of 2023.
Operating profit on a non-GAAP basis in the quarter
totaled $29.0 million (29.9% of
revenues), an increase of 67% compared to $17.4 million (24.0% of revenues) in the first
quarter of 2023.
Net income on a GAAP basis in the quarter totaled
$24.8 million, or $0.51 per diluted share, an increase of 21%
compared to net income of $17.2
million, or $0.36 per diluted
share, in the first quarter of 2023.
Net income on a non-GAAP basis in the quarter totaled
$31.3 million, or $0.64 per diluted share, an increase of 53%
compared to a non-GAAP net income of $20.4
million, or $0.42 per diluted
share, in the first quarter of 2023.
Cash and cash equivalents, short-term and long-term deposits,
and marketable securities, as of March
31, 2024, were $466.3 million
compared to $448.6 million as of
December 31, 2023. During the first
quarter, the Company generated an operating cash flow of
$20.2 million.
Conference Call
Camtek will host a video conference call/webinar today via Zoom,
on Thursday, May 9, 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_alZuWboVTLiwN27dla1wKA
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.
Camtek
Ltd.
|
Consolidated Balance
Sheets
|
(In
thousands)
|
|
|
March
31,
|
December
31,
|
|
2024
|
2023
|
|
U.S.
Dollars
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
123,035
|
119,968
|
Short-term
deposits
|
242,250
|
215,250
|
Marketable
securities
|
11,941
|
18,816
|
Trade accounts
receivable, net
|
86,365
|
87,300
|
Inventories
|
92,080
|
85,905
|
Other current
assets
|
23,257
|
19,548
|
|
|
|
Total current
assets
|
578,928
|
546,787
|
|
|
|
|
|
|
|
|
|
Long-term
deposits
|
6,000
|
21,000
|
Marketable
securities
|
83,781
|
73,576
|
Long-term
inventory
|
9,984
|
9,023
|
Deferred tax asset,
net
|
2,642
|
2,642
|
Other assets,
net
|
1,829
|
1,370
|
Property, plant and
equipment, net
|
42,767
|
41,987
|
Intangible assets,
net
|
16,030
|
16,937
|
Goodwill
|
74,345
|
74,345
|
|
|
|
Total non- current assets
|
237,378
|
240,880
|
|
|
|
Total
assets
|
816,306
|
787,667
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
Current
liabilities
|
|
|
Trade accounts
payable
|
38,871
|
42,187
|
Other current
liabilities
|
59,237
|
54,487
|
Dividend
payable
|
60,041
|
-
|
|
|
|
Total current
liabilities
|
158,149
|
96,674
|
|
|
|
Long-term
liabilities
|
|
|
Deferred tax
liabilities, net
|
6,368
|
7,541
|
Other long-term
liabilities
|
11,107
|
10,473
|
Convertible
notes
|
197,104
|
196,831
|
Total long-term liabilities
|
214,579
|
214,845
|
|
|
|
Total
liabilities
|
372,728
|
311,519
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
Shareholders'
equity
|
|
|
Ordinary shares NIS
0.01 par value, 100,000,000 shares authorized at
March 31, 2024 and at December 31, 2023;
|
|
|
47,235,723 issued
shares at March 31, 2024 and 46,993,998 at
December 31, 2023;
|
|
|
45,143,347 shares
outstanding at March 31, 2024 and 44,901,622 at
December 31, 2023
|
176
|
176
|
Additional paid-in
capital
|
143,559
|
200,389
|
Accumulated other
comprehensive income (loss)
|
(410)
|
129
|
Retained
earnings
|
302,151
|
277,352
|
|
445,476
|
478,046
|
Treasury stock, at cost
(2,092,376 as of March 31, 2024 and December 31, 2023)
|
(1,898)
|
(1,898)
|
|
|
|
Total shareholders'
equity
|
443,578
|
476,148
|
|
|
|
Total liabilities
and shareholders' equity
|
816,306
|
787,667
|
|
|
|
Camtek Ltd.
|
Consolidated Statement of Income
(unaudited)
|
(in thousands, except share
data)
|
|
|
Three months
ended
|
Year
ended
|
March
31,
|
December
31,
|
|
2024
|
2023
|
2023
|
|
U.S. dollars (In
thousands)
|
|
|
|
|
|
|
|
|
Revenues
|
97,010
|
72,457
|
315,375
|
Cost of
revenues
|
52,287
|
38,593
|
167,742
|
|
|
|
|
Gross
profit
|
44,723
|
33,864
|
147,633
|
|
|
|
|
Operating
expenses:
|
|
|
|
Research and
development
|
8,912
|
7,554
|
31,470
|
Selling, general and
administrative
|
14,573
|
12,115
|
50,751
|
|
|
|
|
Total operating
expenses
|
23,485
|
19,669
|
82,221
|
|
|
|
|
Operating
profit
|
21,238
|
14,195
|
65,412
|
|
|
|
|
Financial income,
net
|
5,610
|
5,110
|
22,218
|
|
|
|
|
Income before
incomes taxes
|
26,848
|
19,305
|
87,630
|
|
|
|
|
Income tax
expense
|
(2,049)
|
(2,060)
|
(8,998)
|
|
|
|
|
Net
income
|
24,799
|
17,245
|
78,632
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net earnings
per share (in US dollars)
|
0.55
|
0.39
|
1.76
|
|
|
|
|
|
|
|
|
Diluted net earnings
per share (in US dollars)
|
0.51
|
0.36
|
1.63
|
|
|
|
|
Weighted average
number of
|
|
|
|
ordinary
shares outstanding (in thousands):
|
|
|
|
|
|
|
|
Basic
|
45,074
|
44,522
|
44,725
|
|
|
|
|
Diluted
|
49,253
|
48,436
|
48,863
|
|
|
|
|
|
|
|
|
Reconciliation of
GAAP To Non-GAAP results
|
(In thousands,
except share data)
|
|
|
Three months
ended
March
31,
|
Year
ended
December
31,
|
|
|
2024
|
2023
|
2023
|
|
|
U.S.
dollars
|
U.S.
dollars
|
|
|
|
|
|
|
Reported net income
attributable to Camtek Ltd. on GAAP basis
|
24,799
|
17,245
|
78,632
|
Acquisition of FRT
related expenses (1)
|
3,384
|
-
|
4,550
|
Share-based
compensation
|
3,118
|
3,194
|
12,525
|
Non-GAAP net
income
|
31,301
|
20,439
|
95,707
|
|
|
|
|
Non –GAAP net income
per share, diluted
|
0.63
|
0.42
|
1.96
|
|
|
|
|
Gross margin on GAAP
basis
|
46.1 %
|
46.7 %
|
46.8 %
|
Reported gross
profit on GAAP basis
|
44,723
|
33,864
|
147,633
|
Acquisition of FRT
related expenses (1)
|
3,972
|
-
|
3,492
|
Share-based
compensation
|
398
|
392
|
1,591
|
Non-GAAP gross
profit
|
49,093
|
34,256
|
152,716
|
Non- GAAP gross
margin
|
50.6 %
|
47.3 %
|
48.4 %
|
|
|
|
|
Reported operating
profit attributable to Camtek Ltd. on GAAP
basis
|
21,238
|
14,195
|
65,412
|
Acquisition of FRT
related expenses (1)
|
4,671
|
-
|
5,406
|
Share-based
compensation
|
3,118
|
3,194
|
12,525
|
Non-GAAP operating
profit
|
29,027
|
17,389
|
83,343
|
|
(1) During the
three-month period ended March 31, 2024, the Company recorded
acquisition-related expenses of $3.4
million, consisting of: (1) inventory written-up to fair value in
purchase accounting charges of $3.4 million, for both
periods. This amount recorded under cost of revenues line item. (2)
$0.6 million amortization of intangible assets acquired
recorded under cost of revenues line item. (3) $0.3 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) $1.3 million reversal of tax
provision related to the above adjustment, recorded
under the tax expense line item.
During the year ended December 31, 2024, 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.