6-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
under the Securities Exchange Act of 1934

For the Month of February 2008

CAMTEK LTD.
(Translation of Registrant’s Name into English)

Ramat Gavriel Industrial Zone
P.O. Box 544
Migdal Haemek 23150
ISRAEL
(Address of Principal Corporate Offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F x Form 40-F o

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities and Exchange Act of 1934.

Yes o No x

SIGNATURE

        Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

CAMTEK LTD.
(Registrant)


By: /s/ Ronit Dulberg
——————————————
Ronit Dulberg,
Chief Financial Officer

Dated: February 20, 2008

Camtek Ltd.
P.O.Box 544, Ramat Gabriel Industrial Park
Migdal Ha'Emek 23150, ISRAEL
Tel: +972 (4) 604-8100   Fax: +972 (4) 644-0523
E-Mail:   Info@camtek.co.il   Web site:   http://www.camtek.co.il

20-2-07

FOR IMMEDIATE RELEASE

CAMTEK ANNOUNCES 2007 FOURTH QUARTER
AND FULL YEAR RESULTS

Sequential growth in revenues and profitability

MIGDAL HAEMEK, Israel – February 20, 2008 – Camtek Ltd. (NASDAQ and TASE: CAMT), today announced results for the fourth quarter and year ended December 31, 2007.

The Company reported revenues for the fourth quarter of 2007 of $21.0 million, equivalent to the $21.0 million reported in the fourth quarter of 2006, and an increase of 4% sequentially from $20.1 million in the third quarter of 2007.

Gross profit margin for the fourth quarter of 2007 was 43.7%, as compared to 44.5% for the fourth quarter of 2006, and 37.6% for the third quarter of 2007.

Income before tax for the fourth quarter of 2007 was $0.2 million. This compares to a loss before tax of $2.5 million in the fourth quarter of 2006. For the previous quarter in 2007, income before tax was $0.2 million.

Interpretation No. 48, “Accounting for Uncertainty in Income Taxes-an interpretation of FASB Statement No. 109” (“FIN 48”), was effective for the Company, for the first time, in fiscal year 2007.  The Company has not yet completed a thorough review of the application of FIN 48 as it relates to its subsidiaries abroad for the determination of its effects, if any, on its results of operations and financial position. The Company will, if necessary, issue a supplemental press release following the completion of its analysis of the effects of FIN 48 to report any material adjustment to its net loss and loss per share for the year ended December 31, 2007.

Net income (without impact of FIN 48 review) for the fourth quarter of 2007 was $0.3 million, or $0.01 per diluted share. This compares to a net loss of $2.2 million, or $0.07 per diluted share, in the fourth quarter of 2006. For the previous quarter in 2007, net income (without impact of FIN 48 review) was $87 thousand, or $0.00 per diluted share.

The Company reported a positive operating cash flow of $2.7 million in the fourth quarter.

Revenues for the year ended December 31, 2007, were $71.0 million, a decrease of 29% from $100.1 million reported for the year ended December 31, 2006. Gross profit margin for 2007 was 40.9%, compared to 51.6% in 2006. Net loss (without impact of FIN 48 review) for the year ended December 31, 2007 was $7.5 million, or $0.25 per diluted share, compared to a net income of $11.6 million, or $0.39 per diluted share, for the year ended December 31, 2006.

“The fourth quarter continued and built on the positive trend that we resumed in the third quarter. We are very pleased to present much improved margins and a positive cash flow,” commented Rafi Amit, Camtek’s CEO. “We are seeing an increase in demand for our systems for the semiconductor manufacturing and packaging industry, and we believe this is very sustainable going forward. Our sales to the PCB industry have remained solid throughout the second half of the year, and we see it as indicative of the warm acceptance of our new generation of products as well as the strengthening of our competitive position in this market.”

Mr. Amit continued, “In line with our long-term strategy, we are maintaining our on-going R&D investment in continually enhancing our products to deliver increasing value to our customers. In 2007 we enhanced the Falcon line with even higher throughput and detection ability and introduced a new generation of AOI and Verification systems to the PCB market. In 2008, we plan to introduce additional products and expand our market coverage.”

Mr. Amit concluded, “Assuming that the stream of incoming orders from the semiconductors and PCB industries remains in its current course, we expect revenues for the first quarter of 2008 to come at a similar level to that we reported today.”

Camtek will host a conference call today, February 20, at 9:00am ET. Rafi Amit, Chief Executive Officer, and Ronit Dulberg, Chief Financial Officer will host the call and will be available to answer questions after presenting the results.

To participate, please call one of the following telephone numbers at least 10 minutes before the start of the call, referencing the “Camtek fourth quarter 2007 results conference call”.

US toll free: 1 888 935 4577 at 9:00 a.m. Eastern Time
Israel toll free: 1 809 246 002 at 4:00 p.m. Israel Time
International: +1 718 354 1389  

For those unable to participate, the teleconference will be available for replay on Camtek’s website www.camtek.co.il beginning 24 hours after the call.

ABOUT CAMTEK LTD.
With headquarters in Migdal Ha’Emek Israel, Camtek Ltd., designs, develops, manufactures, and markets automatic optical inspection systems and related products. Camtek’s automatic inspection systems are used to enhance both production processes and yield for manufacturers in the printed circuit board industry, the high density interconnect substrate industry and the semiconductor manufacturing and packaging industry.

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

Contact Details  
   CAMTEK IR INTERNATIONAL
   Ronit Dulberg, CFO GK International IR
   Tel: +972-4-604-8308 Ehud Helft / Kenny Green
   Fax: +972-4-604 8300 Tel: (US) 1 646 201 9246
   Mobile: +972-54-9050776 info@gkir.com
   ronitd@camtek.co.il  

This press release may contain projections or other forward-looking statements regarding future events or the future performance of the Company. These statements are only predictions and may change as time passes. We do not assume any obligation to update that information. Actual events or results may differ materially from those projected, including as a result of 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 due to risks identified in the documents filed by the Company with the SEC.

Consolidated Balance Sheets
(in thousands, except share data)

December
 December
2007
 2006
U.S. Dollars
 
ASSETS            
CURRENT ASSETS   
Cash and cash equivalents    18,601    23,358  
Marketable securities    1,395    2,099  
Accounts receivable, net    23,500    29,434  
Inventories    34,243    41,414  
Due from affiliates    251    180  
Other current assets    2,623    2,372  
Deferred tax    65    65  
   Total current assets    80,678    98,922  
   
   Fixed assets, net    15,325    10,729  
Marketable securities    1,075    -  
Deferred tax    380    369  
Other assets    993    786  
     2,448    1,155  
   Total assets     98,451    110,806  
   
LIABILITIES   
CURRENT LIABILITIES   
Accounts payable -trade    7,960    11,801  
Due to affiliates    866    814  
Other current liabilities    11,233    12,831  
   Total current liabilities    20,059    25,446  
Convertible loan    5,000    5,000  
Liability for employee severance benefits    268    222  
   Total liabilities    25,327    30,668  
   
SHAREHOLDERS' EQUITY   
Ordinary shares NIS 0.01 par value, authorized 100,000,000 shares,  
   issued 31,145,334 in 2007 and 31,052,474 in 2006, outstanding  
   30,133,715 in 2007 and 30,040,855 in 2006.    132    132  
Additional paid-in capital    59,878    59,420  
Accumulated other comprehensive loss  
   Unrealized loss on marketable securities    -    (1 )
Retained earnings    14,107    21,580  
     74,117    81,131  
Treasury stock, at cost (1,011,619 shares in 2007 and 2006)    (993 )  (993 )
Total shareholders' equity    73,124    80,138  
   
   Total liabilities and shareholders' equity     98,451    110,806  

Note: Without impact of FIN 48 review

Consolidated Statements of Operations
(in thousands, except share data)

Three Months ended
December 31,
 Year ended
December 31,
2007
 2006
 2007
 2006
U.S. dollars
 U.S. dollars
 
Revenues      21,028    21,006    70,969    100,055  
Cost of revenues    11,841    11,666    41,940    48,442  
   
Gross profit     9,187    9,340    29,029    51,613  
   
Research and development costs    2,963    3,662    12,111    11,831  
Selling, general and administrative expenses    6,098    8,120    24,119    27,850  
   
     9,061    11,782    36,230    39,681  
   
Operating income (loss)     126    (2,442 )  (7,201 )  11,932  
   
Financial income (expenses), net    66    (115 )  (128 )  (288 )
   
Income (loss) before income taxes     192    (2,557 )  (7,329 )  11,644  
   
Income tax    55    333    (144 )  (41 )
   
Net income (loss)     247    (2,224 )  (7,473 )  11,603  
   
Net income (loss) per ordinary share:   
   
   Basic     0.01    (0.07 )  (0.25 )  0.40  
   
   Diluted     0.01    (0.07 )  (0.25 )  0.39  
   
Weighted average number of ordinary   
 shares outstanding:   
   
Basic     30,212    30,200    30,145    29,176  
   
Diluted     30,212    30,200    30,145    29,553  

Note: Without impact of FIN 48 review