STOCK TITAN

CAMTEK ANNOUNCES RESULTS FOR THE SECOND QUARTER OF 2023

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
Tags
Rhea-AI Summary
Camtek Ltd. (NASDAQ: CAMT) (TASE: CAMT) announced its financial results for Q2 2023, with revenues of $73.8 million, ahead of expectations. Expecting continued growth fueled by chiplet modules and HBM driven by AI, management anticipates Q3 revenues of $77-79 million with momentum expected into 2024.
Positive
  • None.
Negative
  • None.

Expecting continued growth fueled by chiplet modules and HBM driven by AI

MIGDAL HAEMEK, Israel, July 31, 2023 /PRNewswire/ -- Camtek Ltd. (NASDAQ: CAMT) (TASE: CAMT), today announced its financial results for the second quarter ended June 30, 2023.

Camtek Logo

Highlights of the Second Quarter of 2023

  • Quarterly revenues of $73.8 million; ahead of expectations;
  • GAAP operating income of $14.9 million; non-GAAP operating income of $18.3 million, representing an operating margin of 20.2% and 24.8% respectively;
  • GAAP net income of $18.5 million and non-GAAP net income of $21.9 million;
  • Positive operating cash flow of $15.6 million.

Forward-Looking Expectations

Management expects third quarter revenues to be $77-79 million with continued growth in the fourth quarter and into 2024.

Management Comment

Rafi Amit, Camtek's CEO commented, "We are pleased to see the improvement in our results from the first quarter, in terms of both revenues and margins. We are particularly encouraged by the momentum in the industry and the flow of orders. In addition to our recently reported 42 system orders received, a tier one HBM (High Bandwidth Memory) manufacturer has placed an order for 10 systems, and more orders for HBM applications are in the pipeline. We expect that chiplet modules and HBM will account for over 30% of our business in 2024.

Continued Mr Amit, "This will translate into initial growth in the second half of 2023 and to a full extent in 2024, that we believe will be a record year for Camtek. The momentum is fueled by the major industry investment in AI. Camtek's role as a key equipment supplier to the manufacturers of chiplet modules and HBM will benefit from this trend. With new technologies in the industry and the business momentum, we believe that 2024 will be an important step year in reaching our next milestone of becoming a 500-million-dollar company."

Second Quarter 2023 Financial Results

Revenues for the second quarter of 2023 were $73.8 million, a decrease of 7% compared to the second quarter of 2022. 

Gross profit on a GAAP basis in the quarter totaled $35.0 million (47.4% of revenues), compared to a gross profit of $40.2 million (50.5% of revenues) in the second quarter of 2022. Gross profit on a non-GAAP basis in the quarter totaled $35.4 million (48.0% of revenues), compared to $40.5 million (50.9% of revenues) in the second quarter of 2022.

Operating profit on a GAAP basis in the quarter totaled $14.9 million (20.2% of revenues), compared to an operating profit of $20.9 million (26.2% of revenues) in the second quarter of 2022. Operating profit on a non-GAAP basis in the quarter totaled $18.3 million (24.8% of revenues), compared to $23.8 million (29.9% of revenues) in the second quarter of 2022.

Net income on a GAAP basis in the quarter totaled $18.5 million, or $0.38 per diluted share, compared to net income of $19.2 million, or $0.40 per diluted share, in the second quarter of 2022. Net income on a non-GAAP basis in the quarter totaled $21.9 million, or $0.45 per diluted share, compared to non-GAAP net income of $22.1 million, or $0.46 per diluted share, in the second quarter of 2022.  

Cash and cash equivalents, short-term and long-term deposits, as of June 30, 2023 were $506.3 million compared to $492.7 million as of March 31, 2023. During the quarter, Camtek generated $15.6 million in operating cash flow.

Conference Call

Camtek will host a video conference call today via Zoom, July 31, 2023, 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 call, please register using the following link, which will email the link with which to access the video call:

https://us06web.zoom.us/webinar/register/WN_pV6GHff9Se2rqbF_JJbxLw

For those wishing to listen via phone, following registration, the dial-in link will be sent.

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 leading manufacturer of metrology and inspection equipment and a provider of software solutions serving the Advanced Packaging, Memory, CMOS Image Sensors, MEMS, RF and other segments in the mid end of the semiconductor industry.

Camtek provides dedicated solutions and crucial yield-enhancement data, enabling manufacturers to improve yield and drive down their production costs.

With eight offices around the world, Camtek has best-in-class sales and customer support organization, providing tailor-made 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 our expected revenue for the third quarter of 2023 and full year 2023 and 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 impact of any new or revised export and/or import and doing-business regulations or sanctions, such as changes in U.S. trade policies; the risks relating to the concentration of a significant portion of our business in certain countries in the Asia Pacific Region, particularly China (which is our largest territory), Taiwan and Korea; the impact of the war in Ukraine, rising inflation, rising interest rates, volatile exchange rates and commodities' prices, and continuing or new effects as a result of the COVID-19 pandemic; our dependency upon the semiconductor industry and the risk that unfavorable economic conditions or low capital expenditures may negatively impact our operating results; anticipated trends and impacts related to industry component and substrate shortages and other supply chain challenges; the future purchase, use, and availability of components supplied by third parties; impurities and other disruptions to our customers' operations, which could lower production yields or interrupt manufacturing, and could result in the cancellation or delay of purchases of our products; and those other factors discussed in our Annual Report on Form 20-F and other documents filed by the Company with the SEC as well as other documents that may be subsequently filed by Camtek from time to time with the SEC. 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 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)



June 30,

December 31,


2023

2022


U.S. dollars

Assets






Current assets



Cash and cash equivalents

232,787

148,156

Short-term deposits

198,500

251,500

Trade accounts receivable, net

79,025

80,611

Inventories

61,207

65,541

Other current assets

14,998

11,156




Total current assets

586,517

556,964




Long-term deposits

75,000

79,000

Long term inventory

7,125

5,357

Deferred tax asset, net

724

1,004

Other assets, net

2,557

1,024

Property, plant and equipment, net

37,131

33,141

Intangible assets, net

602

597




Total non-current assets

123,139

120,123




Total assets

709,656

677,087




Liabilities and shareholders' equity






Current liabilities



Trade accounts payable

31,238

31,667

Other current liabilities

45,529

56,833




Total current liabilities

76,767

88,500




Long-term liabilities



Other long-term liabilities

10,198

8,748

Convertible notes

196,284

195,737

Total long-term liabilities

206,482

204,485




Total liabilities

283,249

292,985










Shareholders' equity



Ordinary shares NIS 0.01 par value, 100,000,000 shares authorized at
 June 30, 2023 and at December 31, 2022;



 46,811,504 issued shares at June 30, 2023 and 46,505,318 at
 December 31, 2022;



44,719,128 shares outstanding at June 30, 2023 and 44,412,942 at
 December 31, 2022;

175

175

Additional paid-in capital

193,626

187,105

Retained earnings

234,504

198,720


428,305

386,000

Treasury stock, at cost (2,092,376 shares as of June 30, 2023 and
 December 31, 2022)

 

(1,898)

 

(1,898)




Total shareholders' equity

426,407

384,102




Total liabilities and shareholders' equity

709,656

677,087





 

 

Camtek Ltd. 

Consolidated Statements of Operations

(in thousands, except share data)









Six months ended

Three months 

Year ended 



 June 30,

ended June 30,

December 31,




2023

2022

2023

2022

2022




U.S. dollars

U.S. dollars

U.S. dollars









Revenues



146,215

156,744

73,758

79,578

320,909

Cost of revenues



77,378

76,693

38,785

39,385

161,053









Gross profit



68,837

80,051

34,973

40,193

159,856









Operating expenses:








Research and development costs



15,672

15,199

8,118

7,522

28,859

Selling, general and administrative 



24,037

24,451

11,922

11,796

49,499

Total operating expenses



39,709

39,650

20,040

19,318

78,358









Operating income 



29,128

40,401

14,933

20,875

81,498









Financial income, net



10,864

860

5,754

227

6,690









Income before income taxes



39,992

41,261

20,687

21,102

88,188









Income tax expense



(4,208)

(3,700)

(2,148)

(1,919)

(8,239)









Net income  



35,784

37,561

18,539

19,183

79,949

















Earnings per share information:








Six months ended

Three months 

Year ended 



 June 30,

ended June 30,

December 31,




2023

2022

2023

2022

2022




U.S. dollars

U.S. dollars

U.S. dollars









Basic net earnings per share



0.8

0.86

0.42

0.44

1.81









Diluted net earnings per share



0.74

0.78

0.38

0.4

1.66









Weighted average number of








  ordinary shares outstanding 








  (in thousands):
















Basic



44,562

43,929

44,572

44,006

44,158









Diluted



48,531

48,150

48,628

48,153

48,229

















 

 

Camtek Ltd.

Reconciliation of GAAP To Non-GAAP results

(In thousands, except share data)








Six Months ended

Three Months ended

Year ended


June 30,

June 30

December 31,


2023

2022

2023

2022

2022


U.S. dollars

U.S. dollars

U.S. dollars







Reported net income attributable to Camtek Ltd. on GAAP basis

 

35,784

37,561

18,539

19,183

79,949

Share-based compensation

6,520

5,592

3,326

2,927

10,523

Non-GAAP net income

42,304

43,153

21,865

22,110

90,472







Non–GAAP net income per diluted share

 


0.90


0.46

1.88

Gross margin on GAAP basis

47.1 %

51.1 %

47.4 %

50.5 %

49.8 %

Reported gross profit on GAAP basis

68,837

80,051

34,973

40,193

159,856

Share-based compensation

807

628

415

326

1,217

Non- GAAP gross profit

69,644

80,679

35,388

40,519

161,073

Non-GAAP gross margin

47.6 %

51.5 %

48.0 %

50.9 %

50.2 %







Reported operating income attributable to Camtek Ltd. on GAAP basis

 

29,128

 

40,401

 

14,933

 

20,875

 

70,898

Share-based compensation

6,520

5,592

3,326

2,927

5,815

Non-GAAP operating income

35,648

45,993

18,259

23,802

76,713

 

 

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

 

Logo - https://mma.prnewswire.com/media/1534463/Camtek_logo.jpg

 

Cision View original content:https://www.prnewswire.com/news-releases/camtek-announces-results-for-the-second-quarter-of-2023-301889133.html

SOURCE Camtek Ltd.

FAQ

What were Camtek's Q2 2023 revenues?

Camtek's Q2 2023 revenues were $73.8 million.

What is the expected Q3 revenue range for Camtek?

Camtek expects Q3 revenues to be $77-79 million.

What is driving Camtek's growth?

Camtek is expecting continued growth fueled by chiplet modules and HBM driven by AI.

What is Camtek's cash and cash equivalents as of June 30, 2023?

Camtek's cash and cash equivalents as of June 30, 2023 were $506.3 million.

When will Camtek host a conference call to discuss the quarterly results?

Camtek will host a video conference call on July 31, 2023, at 9:00 am ET (16:00 Israel time).

Camtek Ltd

NASDAQ:CAMT

CAMT Rankings

CAMT Latest News

CAMT Stock Data

3.65B
45.37M
38.55%
45.35%
6.98%
Semiconductor Equipment & Materials
Technology
Link
United States of America
Migdal Haemek