Camtek Reports Q2 Revenues of $25.4M; Up 17% QoQ

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Camtek Ltd., today announced its financial results for the quarter ended June 30, 2015.

Highlights of the Second Quarter 2015

• Revenues of $25.4 million, up 17% sequentially and 10% year-over-year driven by sales in the advanced packaging semiconductor market;
• Non-GAAP operating income of $1.2 million; GAAP operating income of $1.1 million;
• Non-GAAP net income of $0.8 million; GAAP net income of $0.6 million;
• Continued growth expected into Q3: guidance of $25.5 to 27 million;

Management Comment

Rafi Amit, Camtek's Chairman and CEO, commented, "We continue to see strength in our semiconductor sales, with important strategic orders of our system supporting advanced packaging and CMOS image sensor (CIS) applications into new and existing customers. These sales are driving the growth in our semiconductor business."

Continued Mr. Amit, "We are very pleased with the on-going feedback received from customers who are evaluating the Gryphon system. We recently launched a demo center in China to allow our Taiwanese and Chinese customers the opportunity to see in operation the next generation model, the Gryphon SL, which enables both legend and solder mask deposition. The Gryphon is a brand new and disruptive technology for the PCB industry, designed to replace current solder mask and legend deposition; as such, the sales process for Gryphon is extended and is taking longer than our normal sale cycle. In the coming months, we expect to install a number of additional systems at customers' sites in Asia and in the US. We believe that we will start recognizing revenues from the Gryphon in 2016."

"Our third quarter revenue guidance is $25.5-27 million. We are expecting Q3 to be stronger than Q2, based on the success at our existing customers and the penetration of new accounts, coupled with growth of our market segments.  We are on track for a strong year for our semiconductor sales in 2015 with expected double digit year-over-year growth." concluded Mr. Amit.

Second quarter 2015 Financial Results

Revenues for the second quarter of 2015 were $25.4 million. This compares to second quarter 2014 revenues of $23.1 million and first quarter 2015 revenues of $21.8 million.

Gross profit on a GAAP basis in the quarter totaled $10.9 million (42.7% of revenues), compared to $11.5 million (49.5% of revenues) in the second quarter 2014 and $9.8 million in the first quarter of 2015 (45.1% of revenues). The gross margin in the second quarter of last year was particularly high due to a specific high-margin sale in that quarter. In the second quarter of 2015, the gross margin was below the normal range due to less favorable product mix sold in the quarter. 

Gross profit on a non-GAAP basis in the quarter totaled $10.9 million (43.7% of revenues), compared to $11.5 million (49.5% of revenues) in the second quarter 2014 and $9.8 million in the first quarter of 2015 (45.2% of revenues).

Operating profit on a GAAP basis in the quarter totaled $1.1 million (4.3% of revenues), compared to $2.6 million (11.1% of revenues) in the second quarter 2014 and $1.1 million in the first quarter of 2015 (5.2% of revenues). General and administrative expenses were particularly high in the quarter due to some additional legal expenses which were incurred in in connection with ongoing patent litigation.

Operating profit on a non-GAAP basis in the quarter totaled $1.2 million (4.5% of revenues), compared to $2.6 million (11.5% of revenues) in the second quarter 2014 and $1.2 million in the first quarter of 2015 (5.5% of revenues).

Financial expenses on a GAAP basis in the quarter totaled $193 thousand, compared to $330 thousand in the second quarter 2014 and $847 thousand in the first quarter of 2015.

Financial expenses on a non-GAAP basis in the quarter totaled $75 thousand, compared to $124 thousand in the second quarter 2014 and $627 thousand in the first quarter of 2015.

Net income on a GAAP basis in the quarter totaled $647 thousand, or $0.02 per diluted share. This compares to net income of $2.0 million, or $0.07 per diluted share, in the second quarter 2014 and a net income of $52 thousand, or $0.00 per diluted share, in the first quarter of 2015. 

Net income on a non-GAAP basis in the quarter totaled $825 thousand, or $0.03 per diluted share. This compares to net income of $2.3 million, or $0.08 per diluted share, in the second quarter 2014 and a net income of $335 thousand, or $0.01 per diluted share, in the first quarter of 2015. 

Cash, cash equivalents, short and long-term restricted deposits, as of June 30, 2015 were $32.1 million (out of which $7.9 million are restricted deposits) compared to $21.9 million as of March 31, 2015. During the second quarter, the Company raised net cash in the amount of $12 million in a secondary public offering. Operating cash flow during the quarter was negative $2.0 million. This was as a result of investment in working capital to support the expected growth in sales.

About Camtek

Camtek Ltd. provides automated and technologically advanced solutions dedicated to enhancing production processes, increasing products yield and reliability, enabling and supporting customer's latest technologies in the Semiconductors, Printed Circuit Boards (PCB) and IC Substrates industries. Camtek addresses the specific needs of these interconnected industries with dedicated solutions based on a wide and advanced platform of technologies including intelligent imaging, image processing and functional 3D inkjet printing.

This press release is available at www.camtek.co.il.