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 October 2018
 
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
 
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
 

 
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: October 31, 2018



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.com  Web site: http://www.camtek.com
 
CAMTEK LTD.
Moshe Eisenberg, CFO
Tel: +972 4 604 8308
Mobile: +972 54 900 7100
moshee@camtek.com
 
INTERNATIONAL INVESTOR RELATIONS
GK Investor Relations
Ehud Helft/Gavriel Frohwein
Tel: (US) 1 646 688 3559
camtek@gkir.com
 
 
FOR IMMEDIATE RELEASE
 
CAMTEK ANNOUNCES RECORD RESULTS
FOR THE THIRD QUARTER OF 2018

Expects Growth to Continue into the Fourth Quarter and the First Quarter of 2019

MIGDAL HAEMEK, Israel – October 31, 2018 – Camtek Ltd. (NASDAQ: CAMT; TASE: CAMT), today announced its financial results for the quarter ended September 30, 2018.

Highlights of the Third Quarter 2018
·
Revenues were a record at $32.3 million, up 35% year-over-year and ahead of the upper-end of the previously issued guidance range of $31-32 million;
·
GAAP gross margin was 50.2%; Non-GAAP gross margin was 50.4%;
·
GAAP operating income was $5.6 million and non-GAAP operating income was $6.2 million, representing margins of 17.2% and 19.2%, respectively;
·
GAAP net income of $5.1 million or $0.14 per diluted share and non-GAAP net income of $5.7 million or $0.16 per diluted share, representing year-over-year growth of 84% and 100%, respectively and;
·
Operating cash flow of $7.1 million;

Forward Looking Guidance

Fourth quarter 2018 revenues are expected to increase to $32.5-33.5 million, implying full year 2018 revenues of approximately $123 million, and representing a 2018 year-over-year increase in revenues of over 30%.

Furthermore, management expects the growth to continue into the first quarter of 2019.

Management Comment

Rafi Amit Camtek’s CEO commented, “2018 is shaping to be another record year for Camtek, and we are on track for revenue growth in excess of 30% for the year with solid improvements in profitability.  Our primary target market, semiconductor advanced packaging, continues to gain strong traction. As a result, we expect growth to continue into the fourth quarter of 2018 and the first quarter of 2019.”


 
The financial results and the comparison to 2017 in this press release include only those of the continuing operations. Camtek sold its PCB operations in the third quarter of 2017.

Third Quarter 2018 Financial Results

Revenues for the third quarter of 2018 were $32.3 million. This compares to third quarter 2017 revenues of $23.8 million, a growth of 35%.

Gross profit on a GAAP basis in the quarter totaled $16.2 million (50.2% of revenues), compared to a gross profit of $11.8 million (49.3% of revenues) in the third quarter 2017. Gross profit on a non-GAAP basis in the quarter totaled $16.2 million (50.4% of revenues), compared to $11.8 million (49.4% of revenues) in the third quarter 2017.

Operating profit on a GAAP basis in the quarter totaled $5.6 million (17.2% of revenues), compared to an operating income of $2.8 million (12.0% of revenues) in the third quarter 2017. Operating profit on a non-GAAP basis in the quarter totaled $6.2 million (19.2% of revenues), compared to $2.9 million (12.3% of revenues) in the third quarter 2017.

Net income on a GAAP basis in the quarter totaled $5.1 million, or $0.14 per diluted share, compared to net income from continuing operations of $2.8 million, or $0.08 per diluted share, in the third quarter 2017. Net income on a non-GAAP basis in the quarter totaled $5.7 million, or $0.16 per diluted share, compared to non-GAAP net income from continuing operations of $2.9 million, or $0.08 per diluted share, in the third quarter 2017.

Cash and cash equivalents, as of September 30, 2018, were $48.3 million compared to $41.2 million as of June 30, 2018. During the quarter the Company generated a positive operating cash flow of $7.1 million.

Conference Call

Camtek will host a conference call today, October 31, 2018, at 9:30 am ET.

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, please call one of the following telephone numbers a few minutes before the start of the call.
 
US:
1 888 668 9141
 
at 9:30 am Eastern Time
Israel:
03 918 0609
 
at 3:30 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.com beginning 24 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 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.
 
This press release provides financial measures that exclude: (i) settlement expenses; (ii) changes in valuation allowance on deferred tax assets; (iii) share based compensation expenses, (iv) discontinued operations, and (v) write off costs with regard to the FIT activities, 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.

Consolidated Balance Sheets
(In thousands)
 
   
September 30,
   
December 31,
 
   
2018
   
2017
 
   
U.S. Dollars (In thousands)
 
Assets
           
             
Current assets
           
Cash and cash equivalents
   
48,328
     
43,744
 
Trade accounts receivable, net
   
30,746
     
23,153
 
Inventories
   
25,789
     
21,336
 
Other current assets
   
3,536
     
3,215
 
                 
Total current assets
   
108,399
     
91,448
 
                 
Fixed assets, net
   
15,798
     
15,503
 
                 
Long-term inventory
   
1,799
     
1,383
 
Deferred tax asset
   
2,890
     
4,067
 
Other assets, net
   
153
     
153
 
Intangible assets, net
   
508
     
482
 
                 
     
5,350
     
6,085
 
                 
Total assets
   
129,547
     
113,036
 
                 
Liabilities and shareholders’ equity
               
                 
Current liabilities
               
Trade accounts payable
   
13,746
     
10,502
 
Other current liabilities
   
20,127
     
17,395
 
                 
Total current liabilities
   
33,873
     
27,897
 
                 
Long term liabilities
               
Liability for employee severance benefits
   
873
     
838
 
     
873
     
838
 
Total liabilities
   
34,746
     
28,735
 
                 
Shareholders’ equity
               
Ordinary shares NIS 0.01 par value, 100,000,000 shares authorized at September 30, 2018 and at December 31, 2017;
               
38,526,231 issued shares at September 30, 2018 and 37,924,507 at December 31, 2017;
               
36,433,855 shares outstanding at September 30, 2018 and 35,832,131 at December 31, 2017
   
151
     
149
 
Additional paid-in capital
   
81,040
     
78,437
 
Retained earnings
   
15,508
     
7,613
 
     
96,699
     
86,199
 
                 
Treasury stock, at cost (2,092,376 as of September 30, 2018 and December 31, 2017)
   
(1,898
)
   
(1,898
)
                 
Total shareholders' equity
   
94,801
     
84,301
 
                 
Total liabilities and shareholders' equity
   
129,547
     
113,036
 


Camtek Ltd.

Consolidated Statements of Operations
(in thousands, except share data)
 
   
Nine Months ended
September 30,
   
Three Months
ended September 30,
   
Year ended
December 31,
 
   
2018
   
2017
   
2018
   
2017
   
2017
 
   
U.S. dollars
   
U.S. dollars
   
U.S. dollars
 
Revenues
   
90,000
     
67,641
     
32,264
     
23,813
     
93,485
 
Cost of revenues
   
45,921
     
34,447
     
16,081
     
12,063
     
47,966
 
                                         
Gross profit
   
44,079
     
33,194
     
16,183
     
11,750
     
45,519
 
                                         
Research and development costs
   
10,456
     
10,067
     
3,501
     
3,215
     
13,534
 
Selling, general and administrative expenses
   
19,792
     
16,847
     
7,128
     
5,688
     
22,022
 
Patent litigation expense
   
-
     
13,000
     
-
     
-
     
13,000
 
                                         
Total operating expenses
   
30,248
     
39,914
     
10,629
     
8,903
     
48,556
 
                                         
Operating income (loss)
   
13,831
     
(6,720
)
   
5,554
     
2,847
     
(3,037
)
                                         
Financial income (expenses), net
   
491
     
(199
)
   
55
     
10
     
(150
)
                                         
Income (loss) from continuing operations
                                       
 before income taxes
   
14,322
     
(6,919
)
   
5,609
     
2,857
     
(3,187
)
                                         
Income tax benefit (expense)
   
(1,364
)
   
5,281
     
(516
)
   
(83
)
   
4,875
 
                                         
Income (loss) from continuing operations
   
12,958
     
(1,638
)
   
5,093
     
2,774
     
1,688
 
                                         
Discontinued operation
                                       
Income from discontinued operation
                                       
Income before tax benefit (expense)
   
-
     
18,302
     
-
     
13,963
     
18,302
 
Income tax benefit (expense)
   
-
     
(5,563
)
   
-
     
(5,058
)
   
(6,028
)
                                         
Income from discontinued operation
   
-
     
12,739
     
-
     
8,905
     
12,274
 
                                         
Net income
   
12,958
     
11,101
     
5,093
     
11,679
     
13,962
 
                                         
Net income (loss) per ordinary share:
                                       
                                         
Basic earnings (loss) from continuing operation
   
0.36
     
(0.05
)
   
0.14
     
0.08
     
0.05
 
                                         
Basic earnings from discontinued operation
   
-
     
0.36
     
-
     
0.25
     
0.35
 
                                         
Diluted earnings (loss) from continuing operation
   
0.35
     
(0.05
)
   
0.14
     
0.08
     
0.05
 
                                         
Diluted earnings from discontinued
                                       
 operation
   
-
     
0.35
     
-
     
0.24
     
0.34
 
                                         
Weighted average number of
                                       
 ordinary shares outstanding:
                                       
                                         
Basic
   
36,105
     
35,374
     
36,300
     
35,404
     
35,441
 
                                         
Diluted
   
36,657
     
35,972
     
36,941
     
36,361
     
35,964
 


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,
 
   
2018
   
2017
   
2018
   
2017
   
2017
 
   
U.S. dollars
   
U.S. dollars
   
U.S. dollars
 
Reported net income (loss) attributable to Camtek Ltd. on GAAP basis
   
12,958
     
11,101
     
5,093
     
11,679
     
13,962
 
                                         
Effect of FIT reorganization (1)
   
506
     
-
     
-
     
-
     
-
 
Share-based compensation
   
1,028
     
276
     
634
     
92
     
426
 
Settlement expense, net of tax (2)
   
-
     
12,025
     
-
     
-
     
12,025
 
Realization of deferred tax assets (3)
   
-
     
(4,495
)
   
-
     
-
     
(4,495
)
Attributable to discontinued operations
   
-
     
(12,739
)
   
-
     
(8,905
)
   
(12,274
)
                                         
Non-GAAP net income
   
14,492
     
6,168
     
5,727
     
2,866
     
9,644
 
                                         
Non –GAAP diluted net income per share
   
0.40
     
0.17
     
0.16
     
0.08
     
0.27
 
                                         
Gross margin on GAAP basis from continuing operations
   
49.0
%
   
49.1
%
   
50.2
%
   
49.3
%
   
48.7
%
Reported gross profit on GAAP basis
   
44,079
     
33,194
     
16,183
     
11,750
     
45,519
 
                                         
Effect of FIT reorganization (1)
   
205
     
-
     
-
     
-
     
-
 
Share-based compensation
   
105
     
28
     
62
     
9
     
44
 
                                         
Non- GAAP gross margin
   
44,389
     
33,222
     
16,245
     
11,759
     
45,563
 
Non-GAAP gross profit
   
49.3
%
   
49.1
%
   
50.4
%
   
49.4
%
   
48.7
%
                                         
Reported operating income (loss) attributable to Camtek Ltd. on GAAP basis from continuing operations
   
13,811
     
(6,720
)
   
5,554
     
2,847
     
(3,037
)
Effect of FIT reorganization (1)
   
506
     
-
     
-
     
-
     
-
 
Share-based compensation
   
1,028
     
276
     
634
     
92
     
426
 
Settlement expense (2)
   
-
     
13,000
     
-
     
-
     
13,000
 
Non-GAAP operating income
   
15,365
     
6,556
     
6,188
     
2,939
     
10,389
 
 
(1)
At the end of the first quarter of 2018, the Company ceased its efforts to utilize the remaining inventory and equipment related to FIT development and recorded a one-time write-off in the amount of $0.5 million, consisting of: (1) inventory write-offs of $0.2 million, recorded under the cost of revenue line item; and (2) fixed asset write-offs of $0.3 million recorded under operating expenses.
 
(2)
During the three and the nine months ended September 30, 2017, and the year ended December 31, 2017, the Company recorded a provision of $13 million ($12 million net of tax) in conjunction settlement with Rudolph Technologies Inc.
 
(3)
During the three and the nine months ended September 30, 2017, and the year ended December 31. 2017, the Company recorded net income of $4.5 million as a result of a decrease in the valuation allowance on deferred tax assets following the evaluation of the realizability of the assets based on projected future earnings.