PR Newswire | Apr 28, 2021 06:31AM EDT

04/28 05:30 CDT

Camtek Reports First Quarter 2021 ResultsRevenue of $57.4 million; operating margin 27%; expects continued growth in the 2nd quarter. MIGDAL HAEMEK, Israel, April 28, 2021

MIGDAL HAEMEK, Israel, April 28, 2021 /PRNewswire/ -- Camtek Ltd. (NASDAQ: CAMT) (TASE: CAMT), today announced its financial results for the first quarter of 2021.

Highlights of the First Quarter of 2021

* Revenues of $57.4 million; * GAAP gross margin of 50.5%; non-GAAP gross margin of 50.7%; * GAAP operating income of $14.4 million (25.1% of revenue); non-GAAP operating income of $15.6 million (27.2% of revenue); * GAAP net income of $13.4 million and non-GAAP net income of $14.6 million; and * Positive operating cash flow of $2.7 million.

Forward-Looking Expectations

Management expects revenues for the second quarter to be between $63-65 million.

Based on orders in hand and business in the pipeline, management believes the positive momentum will continue into the third quarter.

Management Comment

Rafi Amit, Camtek's CEO, commented, "High demand in our markets, the excellent performance of our systems and the strong position that Camtek has gained in the market, are allowing us to continue to demonstrate record financial performance quarter after quarter.

"Our growth in profitability is a result of the rapid increase in sales and a favorable product mix. Camtek is strongly positioned in the market and, as things stand today, 2021 is expected to be a record year in sales, growth and profitability."

First Quarter 2021 Financial Results

Revenues for the first quarter of 2021 were $57.4 million, an increase of 90% compared with the first quarter of 2020.

Gross profiton a GAAP basis in the quarter totaled $29.0 million (50.5% of revenues), compared to a gross profit of $13.6 million (44.9% of revenues) in the first quarter of 2020. Gross profit on a non-GAAP basis in the quarter totaled $29.1 million (50.7% of revenues), compared to $13.6 million (45.2% of revenues) in the first quarter of 2020. The increase in the gross margin was due to higher revenue and a more favorable product mix in the quarter.

Operating profiton a GAAP basis in the quarter totaled $14.4 million (25.1% of revenues), compared to an operating profit of $2.9 million (9.5% of revenues) in the first quarter of 2020. Operating profit on a non-GAAP basis in the quarter totaled $15.6 million (27.2% of revenues), compared to $3.7 million (12.2% of revenues) in the first quarter of 2020.

Net incomeon a GAAP basis in the quarter totaled $13.4 million, or $0.30 per diluted share, compared to net income of $2.8 million, or $0.07 per diluted share, in the first quarter of 2020. Net income on a non-GAAP basis in the quarter totaled $14.6 million, or $0.33 per diluted share, compared to non-GAAP net income of $3.6 million, or $0.09 per diluted share, in the first quarter of 2020.

Cash and cash equivalents and short-term deposits,as of March 31, 2021 were $169.9 million compared to $177.8 million as of December 31, 2020. In addition, there were $10.0 in long-term deposits. During the quarter, Camtek generated $2.7 million in operating cash flow.

Conference Call

Camtek will host a video conference call/webinar today via Zoom, April 28, 2021, at 9:00 am 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 video call please use the following link: https://zoom.us/webinar/register/2716190805690/WN_jC8KnSCPRKqVZ2EOS4PPsw

For those wishing to listen via phone, please dial: +1-301-715-8592 (United States) or +972 3 978 6688 (Israel) with meeting ID 956 8662 6048. For other dial in numbers, please visit: https://zoom.us/zoomconference.

For those unable to participate, a recording will be available on Camtek's website at http://www.camtek.com the day after the call.

A summary presentation of the quarterly results will also be available on Camtek's website.

ABOUT CAMTEK LTD.

Camtek is a leading 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, Memory, CMOS Image Sensors, MEMS and RF, serving the industry's leading global IDMs, OSATs and foundries.

Camtek's world-class sales and customer support infrastructure is organized around eight subsidiaries based in the US, Europe, Japan, China, Hong Kong, Taiwan, Korea and Singapore.

This press release is available at www.camtek.com

This press release contains projections or other statements that constitute "forward-looking statements" within the meaning of the Securities Act of 1933, as amended,the Securities Exchange Act of 1934, as amended, and the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995.Such forward-looking statements are only predictions that are based on the current beliefs, expectations and assumptions of Camtek's management about Camtek's business, financial condition, results of operations, market trends and other issues addressed or reflected therein, only as of the date they are made. Although we believe that the predictions reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations therefrom will not be material. We do not assume any obligation to update that information, except as required by law. Examples of forward-looking statements include: projections of demand, revenues, net income, growth prospects, cost assumptions and other financial and market matters. You may identify these and other forward-looking statements by the use of words such as "may", "plans", "anticipates", "believes", "estimates", "targets", "expects", "intends", "potential" or the negative of such terms, or other comparable terminology, although not all forward-looking statements contain these identifying words. These forward-looking statements are subject to risks and uncertainties that may cause actual events or results to differ materially from those projected, including, but not limited to, as a result of the effects of general economic conditions; the effect of the COVID-19 pandemic on the global markets and on the markets in which we operate, including the risk of a continued disruption to our and our customers', providers', business partners' and contractors' business; the risks relating to the concentration of a significant portion of Camtek's expected business in certain countries, particularly China, from which we expect to generate significant portion of our revenues for thecoming few quarters, as well as Taiwan and Korea, including the risks of deviations from our expectations regarding timing and size of orders from customers in these countries; 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 other risks identified in our Annual Report on Form 20-F and other documents filed by Camtek with the SEC.

This press release provides financial measures that exclude share based compensation 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.

CAMTEK LTD. and its subsidiaries

Consolidated Balance Sheets

(In thousands)

March 31, December 31,

2021 2020

U.S. Dollars (In thousands)

Assets

Current assets

Cash and cash equivalents 54,947 105,815

Short-term deposits 115,000 72,000

Trade accounts receivable, net 54,414 41,001

Inventories 44,645 39,736

Other current assets 3,959 3,366

Total current assets 272,965 261,918

Long-term deposits 10,000 -

Long term inventory 4,570 4,416

Deferred tax asset, net - 482

Other assets, net 64 85

Fixed assets, net 20,455 20,398

Intangible assets, net 616 609

Total non-current assets 35,705 25,990

Total assets 308,670 287,908

Liabilities and shareholders' equity

Current liabilities

Trade accounts payable 27,333 27,180

Other current liabilities 36,027 30,204

Total current liabilities 63,360 57,384

Long term liabilities

Deferred tax liabilities, net 126 -

Other long term liabilities 3,188 3,260

3,314 3,260

Total liabilities 66,674 60,644

Commitments and contingencies

Shareholders' equity

Ordinary shares NIS 0.01 par value, 100,000,000 sharesauthorizedat March 31, 2021 and at December 31, 2020;

45,422,581 issued shares at March 31, 2021 and45,365,354 atDecember 31, 2020;

43,330,205 shares outstanding at March 31, 2021 and 43,272,978 atDecember 31, 2020 171 171

Additional paid-in capital 171,869 170,497

Retained earnings 71,854 58,494

243,894 229,162

Treasury stock, at cost (2,092,376 as of March 31, 2021 and December31, 2020) (1,898) (1,898)

Total shareholders' equity 241,996 227,264

Total liabilities and shareholders' equity 308,670 287,908

Camtek Ltd.

Consolidated Statements of Operations

(in thousands, except share data)

Three months ended Year ended

March 31, December 31,

2021 2020 2020

U.S. dollars (In thousands)

Revenues 57,352 30,179 155,859

Cost of revenues 28,375 16,622 82,628

Gross profit 28,977 13,557 73,231

Research and development costs 5,478 4,130 19,575

Selling, general and administrative expenses 9,100 6,559 31,032

Total operating expenses 14,578 10,689 50,607

Operating income 14,399 2,868 22,624

Financial income, net 386 375 775

Income before incomes taxes 14,785 3,243 23,399

Income tax expense (1,425) (463) (1,621)

Net income 13,360 2,780 21,778

Basic net earnings per share 0.31 0.07 0.55

Diluted net earnings per share 0.30 0.07 0.54

Weighted average number ofordinary shares outstanding:

Basic 43,289 38,665 39,383

Diluted 44,478 39,628 40,372

Camtek Ltd.

Reconciliation of GAAP to Non-GAAP results

(In thousands, except share data)

Three months ended Year ended December 31, March 31,

2021 2020 2020

U.S. dollars U.S. dollars

Reported net income attributable to Camtek Ltd. on GAAP basis 13,360 2,780 21,778

Share-based compensation 1,211 817 4,224

Non-GAAP net income 14,571 3,597 26,002

Non -GAAP net income per share, basic and diluted 0.33 0.09 0.63

Gross margin on GAAP basis 50.5% 44.9% 47.0%

Reported gross profit on GAAP basis 28,977 13,557 73,321

Share-based compensation 128 86 429

Non- GAAP gross margin 50.7% 45.2% 47.3%

Non-GAAP gross profit 29,105 13,643 73,750

Reported operating income

attributable to Camtek Ltd. on GAAP 14,399 2,868 22,624basis

Share-based compensation 1,211 817 4,224

Non-GAAP operating income 15,610 3,685 26,848

CAMTEK LTD. INTERNATIONAL INVESTOR RELATIONS

Moshe Eisenberg, CFO GK Investor Relations

Tel: +972 4 604 8308 Ehud Helft Tel: (US) 1 646 688 3559Mobile: +972 54 900 7100 camtek@gkir.commoshee@camtek.com

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SOURCE Camtek Ltd