CAMTEK LTD. ANNOUNCES 2005 FIRST QUARTER RESULTS
Thursday, 19 May 2005
Quarterly revenues of $9.1 million, Net loss of $2.4 million
Expects Rebound and Reiterates Expectations of $16-18M for Second Quarter 

MIGDAL HAEMEK, Israel – May 18, 2005 – Camtek Ltd. (NASDAQ: CAMT), today announced results for the first quarter ended March 31, 2005.

Revenues for the first quarter of 2005 were $9.1 million, down 30% from $13.1 million in the first quarter of 2004, and down 48% from $17.6 million in the fourth quarter of 2004. This was marginally above the guidance range issued on April 7th of between $8.5-9 million.

Gross profit margin for the first quarter of 2005 was 41.2%, compared to 53.3% for the first quarter of 2004, and 53.7% for the fourth quarter of 2004.

The Company reported an operating loss of $2.0 million, compared to operating income of $1.8 million in the first quarter of 2004 and operating income of $3.0 million in the fourth quarter of 2004. 

Net loss for the first quarter of 2005 was $2.4 million, or $0.09 per share. This compares to net income of $1.3 million, or $0.05 per share, and to net income of $3.0 million, or $0.11 per share in the fourth quarter of 2004. 

“As we previously forecast in our guidance and preliminary results announcement that we issued in April, our revenues this quarter represent a decline in sales to the PCB industry” commented Rafi Amit, Camtek’s CEO. “We attribute this decline to a manufacturing capacity correction after the stellar growth of 2004”.  

Mr. Amit continued, “We believe that the impact of these negative factors has now passed, and we are already seeing a significant rebound in orders from the PCB industry as well as continued growth in our sales to the semiconductor industry. Therefore, we reiterate our guidance that our revenues will return to the $16-18 million level for the second quarter.”  

Mr. Amit concluded, “We are encouraged by the continued success of the Falcon, which showed an increase of 18% in sequential quarterly sales. This supports our believe that our business in the semiconductor inspection market will act to offset a reduced demand in AOI for PCB.”  

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. 

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. 

 

CAMTEK:                  

Moshe Amit, CFO

Tel: +972-4-604-8308         
Fax: +972-4-604 8300
Mobile: +972-5-469-4902

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IR/PR ISRAEL          

Financial Communication

Noam Yellin

Tel: +972 3 6954333

Fax: +972 544 246720

 

IR INTERNATIONAL               

Ehud Helft / Kenny Green
GK International
Tel: (US) 1 866 704 6710 This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

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Consolidated Balance Sheets

(in thousands US dollars, except share data)

 

 

December 31,

March 31,

 

2004

2005

ASSETS

 

 

 

 

 

Current assets:

 

 

Cash and cash equivalents

9,141

7,004 

Accounts receivable - trade, net of allowance of $2,236 and $2,296

22,078

 16,914 

Inventories

24,892

 24,898 

Due from affiliates

479

327 

Other current assets

2,093

 2,426 

Total current assets

58,683

 51,569 

 

 

 

Fixed assets, net

    9,960

 9,995 

 

68,643

61,564 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

Current liabilities:

 

 

Short-term bank credit

2,335

2,687 

Accounts payable

8,215

 4,196 

Other current liabilities

8,095

7,029 

Total current liabilities

18,645

 

 13,912 

 

 

 

Accrued severance pay, net of amounts funded

222

 222 

Total liabilities

18,867

 14,134 

 

 

 

 

 

 

SHAREHOLDERS' EQUITY

 

 

 

 

 

Ordinary shares NIS 0.01 par value, authorized 100,000,000 shares,

 

 

issued 28,085,766 in 2004 and 28,090,266 in 2005, outstanding 27,074,147 in 2004 and 27,078,647 in 2005

 

125

 

 125 

Additional paid-in capital

43,732

 43,740 

Unearned compensation

(363)

(329)

Retained earnings

7,275

4,887

Treasury stock, at cost (1,011,619 shares in 2004 and 2005)

(993)

(993)

 

 

 

 

49,776

 47,430

 

 

 

 

68,643

61,564

 

 

 

 


Consolidated Statements of Operations

(in thousands US dollars, except per share data)

 

 

 

 

Year Ended December 31,

Three Month Period Ended    March 31,

 

2004

2004

2005

 

 

 

 

 

 

 

 

 

Revenues

67,419

13,075

9,141

Cost of revenues

31,361

6,112

5,374

Gross profit

36,058

 6,963

 3,767

 

 

 

                 

 

 

 

 

Research and development costs

7,328

 1,676 

 1,819 

Selling, general and administrative expenses

15,953

 3,513 

3,975 

 

 

 

 

Operating expenses

23,281

 5,189 

 5,794 

 

 

 

 

Aborted issuance expenses

1,122

-

-

 

 

 

 

Operating (loss) income

11,655

        1,774

       (2,027)

 

 

 

 

Financial and other income, net

(359)

66 

(361) 

 

 

 

 

(Loss) Income before income taxes

11,296

1,840

(2,388)

 

 

 

 

Provision for income taxes

(499)

(533)

-

 

 

 

 

Net (loss) income

10,797

1,307

(2,388)

 

 

 

 

Net (loss) income per ordinary share:

 

 

 

 

 

 

 

Basic

0.40

0.05

 (0.09)

 

 

 

 

Diluted

0.39

0.05

 (0.09)

 

 

 

 

Weighted average number of ordinary shares outstanding:

 

 

 

 

 

 

 

Basic

27,114

 27,053 

27,145

 

 

 

 

Diluted

27,800

 27,867 

27,687