zk1212266.htm
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 November 2012
 
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/ Moshe Eisenberg
——————————————
Moshe Eisenberg,
Chief Financial Officer
 
Dated: November 15, 2012
 
 
 
 
 
CAMTEK LTD.
Moshe Eisenberg, CFO
Tel: +972 4 604 8308
Mobile: +972 54 900 7100
moshee@camtek.co.il
INTERNATIONAL INVESTOR RELATIONS
CCG Investor Relations
Ehud Helft / Kenny Green
Tel: (US) 1 646 201 9246
camtek@ccgisrael.com
 
FOR IMMEDIATE RELEASE
 
CAMTEK ANNOUNCES THIRD QUARTER 2012 RESULTS

$3.3 Million Non-GAAP Operating Income; Highest Net Margin in Six Years

MIGDAL HAEMEK, Israel – November 15, 2012 – Camtek Ltd. (NASDAQ and TASE: CAMT), today announced its financial results for the quarter ended September 30, 2012.

Highlights of the Third Quarter 2012
 
 
·
Revenues of $23.7 million;
 
·
Non-GAAP operating income of $3.3 million; GAAP operating income of $3.1 million;
 
·
Non-GAAP net income of $3.1 million; GAAP net income of $2.4 million;
 
·
Non-GAAP operating margin of 14.0% and non-GAAP net margin of 13.0%, at the highest levels since 2006; and
 
·
Positive operating cash flow of $3.8 million and quarter-end cash, cash equivalents and short-term deposits at $25.3 million.

Roy Porat, Camtek’s Chief Executive Officer, commented, “We are very pleased with our third quarter results, showing revenues coming in as expected, with high operating and net margins - in line with our long-term target business model. We believe our current strong results are a good indication of our longer term potential, despite the recent weakness that we have seen in our end-markets.”

Continued Mr. Porat, “Given the global macroeconomic concerns, our industry as a whole sees increased uncertainty ahead, particularly in the semiconductor segment and we see cautious purchase patterns from our customers. Hence, for the fourth quarter we expect revenues to come in between $15-18 million.  In order to address this, we are taking steps to reduce our cost base and breakeven point.”

Third Quarter 2012 Financial Results

Revenues for the third quarter of 2012 were $23.7 million. This is a decrease of 20% compared to $29.7 million in the third quarter of 2011 and a decrease of 5% compared with $25.0 million in the prior quarter. These trends are mainly attributable to the overall market condition.

Gross profit on a GAAP basis in the quarter totaled $11.4 million (48.1% of revenues). This is compared with $13.5 million (45.5% of revenues) in the third quarter of 2011 and $12.1 million (48.2% of revenues) in the prior quarter.

Gross profit on a non-GAAP basis in the quarter totaled $11.5 million (48.5% of revenues). This is compared with $13.6 million (45.9% of revenues) in the third quarter of 2011 and $12.2 million (48.6% of revenues) in the prior quarter.

 
 
 
 
Operating income on a GAAP basis in the quarter was $3.1 million (13.2% of revenues). This is compared with operating income of $4.0 million (13.4% of revenues) in the third quarter of 2011 and operating income of $3.3 million (13.0% of revenues) in the prior quarter.

Operating income on a non-GAAP basis in the quarter was $3.3 million (14.0% of revenues). This is compared to non-GAAP operating income of $4.1 million (14.1% of revenues) in the third quarter of 2011 and operating income of $3.4 million (13.8% of revenues) in the prior quarter.

Net income on a GAAP basis in the quarter totaled $2.4 million (10.0% of revenues), or $0.08 per diluted share. This is compared with a net income of $2.6 million (8.9% of revenues), or $0.09 per diluted share in the third quarter of 2011 and net income $2.3 million (9.1% of revenues), or $0.08 per share in the prior quarter.

Net income on a non-GAAP basis, in the quarter was $3.1 million (13.0% of revenues), or $0.10 per diluted share. This is compared with net income of $3.4 million (11.0% of revenues), or $0.11 per diluted share in the third quarter of 2011 and net income of $3.0 million (11.9% of revenues) or $0.10 per share in the prior quarter.

Cash and cash equivalents and short-term deposits as of September 30, 2012 were $25.3 million ($18.6 million net of bank loans) compared with $21.6 million ($15.7 million net of bank loans), as of June 30, 2012. The company reported a positive operating cash flow of $3.8 million.

Conference Call

Camtek will host a conference call today, November 15, at 10:00 am ET.

Roy Porat, Chief Executive Officer and Moshe Eisenberg, 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 a few minutes before the start of the call.
 
US:
 1 888 668 9141 at 10:00 am Eastern Time  
Israel:
03 918 0609
at 5:00 pm Israel Time
  
International:
+972 3 918 0609
    
 
For those unable to participate, the teleconference will be available for replay on Camtek’s website at http://www.camtek.co.il/ beginning 24 hours after the call.
 
ABOUT CAMTEK LTD.

Camtek Ltd. provides automated and technologically advanced solutions dedicated to enhancing production processes and increasing yields, 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, adaptive ion milling (AIM) and digital material deposition (DMD). Camtek's solutions range from micro-to-nano by applying its technologies to the industries' specific requirements.
 
 
 
 
 
This press release is available at www.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, intellectual property litigation, price reductions as well as due to risks identified in the documents filed by the Company with the SEC.
 
Use of non-GAAP Measures
 
This press release provides financial measures that exclude certain items such as: (i) amortization of acquired intangible assets and revaluation of liabilities with respect to the acquisitions of Sela and Printar; and (ii) 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.
 
 
 
 
 
Consolidated Balance Sheets 
(In thousands)
 
   
September 30,
    
December 31,
  
   
2012
    
2011
  
   
U.S. Dollars (In thousands)
  
Assets
            
             
Current assets
            
Cash and cash equivalents
     19,155       22,185  
Short-term deposits
     6,160       4,100  
Accounts receivable, net
     27,085       25,451  
Inventories
     26,714       24,355  
Due from affiliates
     617       388  
Other current assets
     4,321       3,357  
Deferred tax asset
     110       110  
                 
Total current assets
     84,162       79,946  
                 
Fixed assets, net
     14,273       14,577  
                 
Long term inventory
     2,711       1,954  
Deferred tax asset
     132       132  
Other assets, net
     304       304  
Intangible assets, net *
     4,052       4,191  
Goodwill
     3,653       3,653  
                 
      10,852       10,234  
                 
Total assets
     109,287       104,757  
                 
Liabilities and shareholders’ equity
                
                 
Current liabilities
                
Short term bank loans
     4,160       3,000  
Accounts payable – trade
     10,967       6,773  
Long term bank loans – current portion
     1,700       1,700  
Other current liabilities
     18,361       21,568  
                 
Total current liabilities
     35,188       33,041  
                 
Long term liabilities
                
Long term bank loans
     817       2,092  
Liability for employee severance benefits
     686       652  
Other long term liabilities *
     9,071       9,039  
      10,574       11,783  
                 
Total liabilities
     45,762       44,824  
                 
Commitments and contingencies
                
                 
Shareholders’ equity
                
Ordinary shares NIS 0.01 par value,
    authorized 100,000,000 shares,
31,986,005 issued as September 30, 2012
and 31,810,340 as of December 31, 2011,
outstanding 29,893,629 as of September 30, 2012
and 29,717,964 as of December 31, 2011
     133       133  
Additional paid-in capital
     61,323       61,014  
Accumulated income
     3,967       684  
      65,423       61,831  
Treasury stock, at cost (2,092,376 as of September 30, 2012 and December 31, 2011)
     (1,898 )     (1,898 )
                 
Total shareholders' equity
     63,525       59,933  
                 
Total liabilities and shareholders' equity
     109,287       104,757  

  (*)
Relates to Printar and SELA acquisitions
 
 
 
 

 
Consolidated Statements of Operations
(in thousands, except share data)
 
   
Nine Months ended
 September 30,
    
Three Months ended
September 30,
    
Year ended
December 31,
  
   
2012
    
2011
    
2012
    
2011
    
2011
  
   
U.S. dollars
    
U.S. dollars
    
U.S. dollars
  
Revenues
     66,928       85,924       23,717       29,676       107,028  
Cost of revenues
     35,815       46,582       12,309       16,167       59,588  
                                         
Gross profit
     31,113       39,342       11,408       13,509       47,440  
                                         
Research and development costs
     9,894       10,888       3,249       3,528       14,077  
Selling, general and administrative
     * 15,950       18,715       5,027       6,016       24,341  
Expenses
                                        
      25,844       29,603       8,276       9,544       38,418  
                                         
Operating income
     5,269       9,739       3,132       3,965       9,022  
                                         
Financial expenses, net
     (1,574 )     (1,811 )     (588 )     (1,034 )     (2,900 )
                                         
Income before income
                                        
 taxes
     3,695       7,928       2,544       2,931       6,122  
                                         
Income tax
     (412 )     (667 )     (170 )     (297 )     (744 )
                                         
Net income
     3,283       7,261       2,374       2,634       5,378  
                                         
Net income per ordinary share:
                                        
                                         
Basic
     0.11       0.25       0.08       0.09       0.18  
                                         
Diluted
     0.11       0.24       0.08       0.09       0.18  
                                         
Weighted average number of
                                        
  ordinary shares outstanding:
                                        
                                         
Basic
     29,834       29,561       29,893       29,705       29,577  
                                         
Diluted
     30,024       30,012       30,008       29,998       30,009  

  (*)           Including income of approximately 1 million dollars related to a settlement with a former service provider of the company.
 
 
 
 

Camtek Ltd.
Reconciliation of GAAP to Non-GAAP results
(In thousands, except share data)
 
   
Nine Months ended
 September 30,
    
Three Months ended
September 30,
    
Year ended
December 31,
  
   
2012
    
2011
    
2012
    
2011
    
2011
  
   
U.S. dollars
    
U.S. dollars
    
U.S. dollars
  
Reported net income attributable to Camtek Ltd. on GAAP basis
     3,283       7,261       2,374       2,634       5,378  
                                         
Acquisition of Sela and Printar related expenses (1)
     1,781       1,732       611       594       2,377  
Inventory write –downs (2)
     -       -       -       -       685  
Share-based compensation
     308       361       103       126       416  
Shelf registration expenses
     94       -       -       -       -  
Non-GAAP net income
     5,466       9,354       3,088       3,354       8,856  
                                         
Non –GAAP net income  per share , basic and diluted
     0.18       0.31       0.10       0.11       0.30  
                                         
Gross margin on GAAP basis
     46.5 %     45.8 %     48.1 %     45.5 %     44.3 %
Reported gross profit on GAAP basis     31,113       39,342       11,408       13,509       47,440  
                                         
Acquisition of Sela and Printar related expenses ( 1)
     225       239       75       79       331  
Inventory write –downs (2)
     -       -       -       -       685  
Share-based compensation
     75       82       25       29       97  
Non- GAAP gross margin
     46.9 %     46.2 %     48.5 %     45.9 %     45.4 %
Non-GAAP gross profit
     31,413       39,663       11,508       13,617       48,553  
                                         
Reported operating income attributable to Camtek Ltd. on GAAP basis
       5,269         9,739         3,132         3,965         9,022  
Acquisition of Sela and Printar related expenses (1)     225       239       75       79       331  
Inventory write-downs (2)     -       -       -       -       685  
Share-based compensation     308       361       103       126       416  
Shelf registration expenses     94       -       -       -       -  
Non-GAAP operating income
     5,896       10,339       3,310       4,170       10,454  
 
 
(1)
During the three and nine months ended September 30, 2012 and 2011 and the twelve months ended December 31, 2011, the Company recorded acquisition expenses of $0.6 million, $1.8 million, $0.6 million, $1.7 million and $2.4 million, respectively, consisting of: (1) inventory written-up to fair value in purchase accounting charges of $0 million, $0 million, $0.01 million, $0.02 million and $0.02 million, respectively. These amounts are recorded under cost of revenues line item. (2) Revaluation adjustments of $0.5 million, $1.6 million, $0.5 million, $1.5 million and $2.0 million, respectively, of contingent consideration and certain future liabilities recorded at fair value. These amounts are recorded under finance expenses line item and (3) $0.07 million, $0.23 million, $0.07 million, $0.22 million and $0.3 million, respectively, with respect to amortization of intangible assets acquired recorded under cost of revenues line item.
 
 
(2)
During the three months and nine months ended September 30, 2012 and 2011, and the twelve months ended December 31, 2011, the Company recorded inventory write down in the amount of $0 million, $0 million, $0 million, $0 million, and $0.7 million, respectively.