PR Newswire | Aug 4, 2021 06:15AM EDT

08/04 05:15 CDT

Camtek Reports Second Quarter 2021 ResultsRecord results: $67.5 million Revenue, up 82% YoY; 27% Operating margin; Expects continued growth for the second half of 2021 MIGDAL HAEMEK, Israel, Aug. 4, 2021

MIGDAL HAEMEK, Israel, Aug. 4, 2021 /PRNewswire/ -- Camtek Ltd. (NASDAQ: CAMT) (TASE: CAMT), today announced its financial results for the second quarter of 2021.

Highlights of the Second Quarter of 2021

* Revenues of $67.5 million, an 82% increase year-over-year; * GAAP gross margin of 51.9%; non-GAAP gross margin of 52.1%; * GAAP operating income of $17.0 million (25.3% of revenue); non-GAAP operating income of $18.5 million (27.4% of revenue); * GAAP net income of $15.7 million; non-GAAP net income of $17.1 million; and * Strong positive operating cash flow of $19.9 million.

Forward-Looking Expectations

Management expects continued growth for the second half of 2021 with revenues for the third quarter to be between $69-71 million, implying over 80% growth year-over-year for the first nine months of 2021.

Management Comment

Rafi Amit, Camtek's CEO, commented, "I am excited by the strong growth in revenue and profitability in the first half of 2021. We are experiencing unprecedented momentum in our business which we expect to continue through the second half of the year. We have a healthy backlog and this provides us visibility of continued strong demand into the beginning of 2022."

Continued Mr. Amit, "We are in the process of expanding our production capacity to address our customers' demands and our long-term growth strategy. As a result, we are increasing our inventory levels and headcount to support the heightened demand."

Second Quarter 2021 Financial Results

Revenues for the second quarter of 2021 were $67.5 million, an increase of 82% compared with the second quarter of 2020.

Gross profiton a GAAP basis in the quarter totaled $35.0 million (51.9% of revenues), compared to a gross profit of $16.9 million (45.8% of revenues) in the second quarter of 2020. Gross profit on a non-GAAP basis in the quarter totaled $35.2 million (52.1% of revenues), compared to $17.0 million (46.1% of revenues) in the second quarter of 2020. The increase in the gross margin was due to the higher revenue level and a more favorable product mix in the quarter.

Operating profiton a GAAP basis in the quarter totaled $17.0 million (25.3% of revenues), compared to an operating profit of $5.4 million (14.6% of revenues) in the second quarter of 2020. Operating profit on a non-GAAP basis in the quarter totaled $18.5 million (27.4% of revenues), compared to $6.4 million (17.2% of revenues) in the second quarter of 2020.

Net incomeon a GAAP basis in the quarter totaled $15.7 million, or $0.35 per diluted share, compared to net income of $5.3 million, or $0.13 per diluted share, in the second quarter of 2020. Net income on a non-GAAP basis in the quarter totaled $17.1 million, or $0.38 per diluted share, compared to non-GAAP net income of $6.3 million, or $0.16 per diluted share, in the second quarter of 2020.

Cash and cash equivalents and short-term deposits,as of June 30, 2021 were $189.3 million compared to $169.9 million as of March 31, 2021. In addition, there were $10.0 in long-term deposits. During the quarter, Camtek generated $19.9 million in operating cash flow.

Conference Call

Camtek will host a video conference call/webinar today via Zoom, August 4, 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://us06web.zoom.us/webinar/register/9116273008728/WN_iSUSel1dS0ORFYdMAm8XtQ

For those wishing to listen via phone, please dial: +1-301-715-8592 (United States) or +972 3 978 6688 (Israel) with meeting ID 829 8842 8983. 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 subsidiariesConsolidated Balance Sheets

(In thousands)



June December 31, 30,

2021 2020

U.S. Dollars (In thousands)

Assets

Current assets

Cash and cash equivalents 80,339 105,815

Short-term deposits 109,000 72,000

Trade accounts receivable, net 60,259 41,001

Inventories 54,346 39,736

Other current assets 4,411 3,366

Total current assets 308,355 261,918

Long-term deposits 10,000 -

Long term inventory 4,694 4,416

Deferred tax asset - 482

Other assets, net 119 85

Property, plant and equipment, net 20,377 20,398

Intangible assets, net 602 609

35,792 25,990

Total assets 344,147 287,908

Liabilities and shareholders' equity

Current liabilities

Trade accounts payable 32,980 27,180

Other current liabilities 48,348 30,204

Total current liabilities 81,328 57,384

Long term liabilities

Deferred tax liabilities, net 186 -

Other long-term liabilities 3,470 3,260

3,656 3,260

Total liabilities 84,984 60,644

Commitments and contingencies

Shareholders' equity

Ordinary shares NIS 0.01 par value, 100,000,000 sharesauthorizedat June 30, 2021 and at December 31, 2020;

45,804,862 issued shares at June 30, 2021 and45,365,354 at December 31, 2020;

43,712,486 shares outstanding at June 30, 2021 and 43,272,978 at December 31, 2020; 172 171

Additional paid-in capital 173,383 170,497

Retained earnings 87,506 58,494

261,061 229,162

Treasury stock, at cost (2,092,376 as of June 30, 2021 andDecember 31, 2020) (1,898) (1,898)

Total shareholders' equity 259,163 227,264

Total liabilities and shareholders' equity 344,147 287,908

Consolidated Statements of Operations

(in thousands, except share data)

Six months ended Three months Year ended ended

June 30, June 30, December 31,

2021 2020 2021 2020 2020

U.S. dollars U.S. dollars U.S. dollars

Revenues 124,802 67,179 67,450 37,000 155,859

Cost of revenues 60,831 36,679 32,456 20,057 82,628

Gross profit 63,971 30,500 34,994 16,943 73,231

Research and development costs 11,244 8,884 5,766 4,754 19,575

Selling, general and

administrative expenses 21,288 13,338 12,188 6,779 31,032

32,532 22,222 17,954 11,533 50,607

Operating income 31,439 8,278 17,040 5,410 22,624

Financial income, net 562 651 176 276 775

Income before taxes 32,001 8,929 17,216 5,686 23,399

Income tax expense (2,989) (841) (1,564) (378) (1,621)

Net income 29,012 8,088 15,652 5,308 21,778

Net income per ordinary share: Six months ended Three months Year ended June 30, ended June December 31, 30,

2021 2020 2021 2020 2020

U.S. dollars U.S. dollars U.S. dollars

Basic net earnings 0.67 0.21 0.36 0.14 0.55

Diluted net earnings 0.65 0.20 0.35 0.13 0.54

Weighted average number of

ordinary shares outstanding

(in thousands):

Basic 43,450 38,877 43,609 39,033 39,383

Diluted 44,612 39,785 44,750 39,945 40,372

Camtek Ltd.

Reconciliation of GAAP to Non-GAAP results

(In thousands, except share data)

Six Months Year ended Three Months ended ended June 30, June 30, December 31,

2021 2020 2021 2020 2020

U.S. dollars U.S. dollars U.S. dollars

Reported net income attributable toCamtek Ltd. on GAAP basis 29,012 8,088 15,652 5,308 21,778



Share-based compensation 2,681 1,768 1,470 951 4,224

Non-GAAP net income 31,693 9,856 17,122 6,259 26,002

Non-GAAP net income per diluted share 0.71 0.25 0.38 0.16 0.63

Gross margin on GAAP basis 51.3% 45.4% 51.9% 45.8% 47.0%

Reported gross profit on GAAP basis 63,971 30,500 34,994 16,943 73,321

Share-based compensation 301 189 173 103 429

Non- GAAP gross margin 64,272 30,689 35,167 17,046 73,750

Non-GAAP gross profit 51.5% 45.7% 52.1% 46.1% 47.3%



Reported operating income attributable to Camtek Ltd. on GAAP basis 31,439 8,278 17,040 5,410 22,624

Share-based compensation 2,681 1,768 1,470 951 4,224

Non-GAAP operating income 34,120 10,046 18,510 6,361 26,848

CAMTEK LTD. INTERNATIONAL INVESTOR RELATIONS

Moshe Eisenberg, CFO GK Investor Relations

Tel: +972 4 604 8308 Ehud Helft

Mobile: +972 54 900 7100 Tel: (US) 1 646 688 3559

moshee@camtek.com camtek@gkir.com

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SOURCE Camtek Ltd.