Sales to Semiconductor Industry Doubled
Revenues Reached $16.7 Million Representing an 83% Sequential Growth;
Gross Margin - 50%, Net Income - $1.5 Million, EPS - $0.05
MIGDAL HAEMEK, Israel, August 11 /PRNewswire-FirstCall/ -- Camtek Ltd.
(NASDAQ: CAMT), today announced results for the second quarter ended June 30, 2005.
Revenues for the second quarter of 2005 were $16.7 million. This represents a slight decrease of 3.7% from $17.4 million as reported in the second quarter of 2004, and sequentially up 83% from $9.1 million as reported in the first quarter of 2005.
Gross profit margin for the second quarter of 2005 was 50%, compared to 52% for the second quarter of 2004, and 41% for the first quarter of 2005. The Company reported second quarter net income of $1.5 million, or $0.05 per share, compared to a net income of $3.2 million, or $0.12 per share, in the second quarter of last year, and a loss of $2.4 million, or $(0.09) per share, in the first quarter of 2005.
Revenues Reached $16.7 Million Representing an 83% Sequential Growth;
Gross Margin - 50%, Net Income - $1.5 Million, EPS - $0.05
MIGDAL HAEMEK, Israel, August 11 /PRNewswire-FirstCall/ -- Camtek Ltd.
(NASDAQ: CAMT), today announced results for the second quarter ended June 30, 2005.
Revenues for the second quarter of 2005 were $16.7 million. This represents a slight decrease of 3.7% from $17.4 million as reported in the second quarter of 2004, and sequentially up 83% from $9.1 million as reported in the first quarter of 2005.
Gross profit margin for the second quarter of 2005 was 50%, compared to 52% for the second quarter of 2004, and 41% for the first quarter of 2005. The Company reported second quarter net income of $1.5 million, or $0.05 per share, compared to a net income of $3.2 million, or $0.12 per share, in the second quarter of last year, and a loss of $2.4 million, or $(0.09) per share, in the first quarter of 2005.
"Our revenues are back at the run rate which we saw during 2004, which was a very good year for us," commented Rafi Amit, Camtek's CEO. "Returning to this revenue level has improved our profitability, bringing our gross margins back to around the 50% level, within our normal range. A major factor in this profitability increase was the impressively growing contribution of our sales to the semiconductor manufacturing and packaging industry.
We achieved this margin despite pricing pressure and fierce competition, in the PCB industry. In fact, revenues from the Falcon, our family of wafer inspection systems, nearly doubled from last quarter, amounting to $3.8 million, or 23% of our income in the quarter. We have also expanded our customer base with several leading international Integrated Device Manufacturers, who evaluated the Falcon against competing products and selected it predominantly based on its performance."
Mr. Amit continued: "Because of our improved results, we recorded a net positive cash flow from operation of $3.4 million, taking our net cash reserves to $7.6 million.
In addition, we announced earlier this week the investment of $5 million in Camtek by FIMI Opportunity Fund, a prominent Israeli investment fund, through a five year convertible loan, which will further increase our cash reserves providing us with ample working capital for executing our growth plans."
Mr. Amit concluded, "Looking ahead, we see the relative weight of revenues from the semiconductor manufacturing and packaging industries continues to increase. This trend results from growing revenues from the semiconductor sector combined with continuous pressure on prices in the PCB sector of our business.
Current sales activity, in terms of incoming orders and hot prospects, seems to run at a similar rate to the second quarter, though we also see indications of a further potential improvement in the semiconductor manufacturing and packaging market in the fourth quarter of 2005.
It is however too early to predict the expected revenues in each of the coming quarters, as is currently typical to our marketplace, shipping and installation dates are determined within a notice of days, causing revenues recognition to shift from quarter to quarter."
Camtek will hold a conference call on Thursday, August 11, 2005 at 11:00 EDT (for other time zones see below). Moshe Amit, Chief Financial Officer, and Yuval Attias, Controller, will host the call and will be available to answer questions.
To participate, please call one of the following telephone numbers below.
US: 1-(866)-500-4964 11:00 a.m. EDT
UK: 0-(800)-169-8104 4:00 p.m. London time
Israel & International: +972-3-925-5910 18:00 Israel time
The teleconference will be available for replay for 14 days on Camtek's
website at http://www.camtek.co.il/, beginning 48 hours after the call.
ABOUT CAMTEK LTD.
Camtek Ltd. designs, develops, manufactures, and markets technologically advanced and cost-effective intelligent optical inspection systems and related software products, used to enhance processes and yields for the printed circuit boards, semiconductor manufacturing and semiconductor packaging industries. Camtek has been a public company since 2000, with headquarters in Migdal HaEmek, Israel and subsidiaries in the U.S., Europe, Japan, and East Asia. See also http://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 and price reductions, as well as due to risks identified in the documents filed by the Company with the SEC.
We achieved this margin despite pricing pressure and fierce competition, in the PCB industry. In fact, revenues from the Falcon, our family of wafer inspection systems, nearly doubled from last quarter, amounting to $3.8 million, or 23% of our income in the quarter. We have also expanded our customer base with several leading international Integrated Device Manufacturers, who evaluated the Falcon against competing products and selected it predominantly based on its performance."
Mr. Amit continued: "Because of our improved results, we recorded a net positive cash flow from operation of $3.4 million, taking our net cash reserves to $7.6 million.
In addition, we announced earlier this week the investment of $5 million in Camtek by FIMI Opportunity Fund, a prominent Israeli investment fund, through a five year convertible loan, which will further increase our cash reserves providing us with ample working capital for executing our growth plans."
Mr. Amit concluded, "Looking ahead, we see the relative weight of revenues from the semiconductor manufacturing and packaging industries continues to increase. This trend results from growing revenues from the semiconductor sector combined with continuous pressure on prices in the PCB sector of our business.
Current sales activity, in terms of incoming orders and hot prospects, seems to run at a similar rate to the second quarter, though we also see indications of a further potential improvement in the semiconductor manufacturing and packaging market in the fourth quarter of 2005.
It is however too early to predict the expected revenues in each of the coming quarters, as is currently typical to our marketplace, shipping and installation dates are determined within a notice of days, causing revenues recognition to shift from quarter to quarter."
Camtek will hold a conference call on Thursday, August 11, 2005 at 11:00 EDT (for other time zones see below). Moshe Amit, Chief Financial Officer, and Yuval Attias, Controller, will host the call and will be available to answer questions.
To participate, please call one of the following telephone numbers below.
US: 1-(866)-500-4964 11:00 a.m. EDT
UK: 0-(800)-169-8104 4:00 p.m. London time
Israel & International: +972-3-925-5910 18:00 Israel time
The teleconference will be available for replay for 14 days on Camtek's
website at http://www.camtek.co.il/, beginning 48 hours after the call.
ABOUT CAMTEK LTD.
Camtek Ltd. designs, develops, manufactures, and markets technologically advanced and cost-effective intelligent optical inspection systems and related software products, used to enhance processes and yields for the printed circuit boards, semiconductor manufacturing and semiconductor packaging industries. Camtek has been a public company since 2000, with headquarters in Migdal HaEmek, Israel and subsidiaries in the U.S., Europe, Japan, and East Asia. See also http://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 and price reductions, as well as due to risks identified in the documents filed by the Company with the SEC.