Camtek (CAMT) 6-K Current report (foreign)

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 August 2020

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 ☒      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 ☐      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: August 5, 2020

	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 Tel: (US) 1 646 688 3559 camtek@gkir.com

FOR IMMEDIATE RELEASE

CAMTEK ANNOUNCES RESULTS

FOR THE SECOND QUARTER OF 2020

Record Revenues of $37.0 million, 17.2% Operating Margin, Expects Continued Growth

MIGDAL HAEMEK, Israel – August 5, 2020 – Camtek Ltd. (NASDAQ: CAMT; TASE: CAMT), today announced its financial results for the quarter ended June 30, 2020.

Highlights of the Second Quarter 2020

• Revenues were a quarterly record at $37.0 million, up 8% year-over-year;

• GAAP gross margin at 45.8%; Non-GAAP gross margin at 46.1%;

• GAAP operating income was $5.4 million and non-GAAP operating income was $6.4 million, representing margins of 14.6% and 17.2%, respectively;

• GAAP net income of $5.3 million, or $0.13 per diluted share, non-GAAP net income of $6.3 million, or $0.16 per diluted share; and

• Strong operating cash flow of $11.1 million with $101.5 million in net cash and short-term deposits at quarter-end.

Forward-Looking Expectations

Based on orders on hand, management expects continued revenue growth and improved profitability in the third quarter. Management expects revenues for the third quarter to be between $38-39 million.

Management Comment

Rafi Amit Camtek’s CEO commented, “Camtek’s second quarter results reflect continued demand for our products, especially in Asia.

We have increased our market share in 2D inspection mainly as a result of the significant improvement in our system performance and competitiveness in all 2D applications. In addition, we are benefitting from our strategy of having in place local professional teams that can independently install and support machines in all our territories. This has enabled us to continue growing our business even during the COVID-19 pandemic.

Continued Mr. Amit, “The revenues in the second quarter were at a record level, and the ongoing demands from our customers for various applications point to a strong third quarter, with encouraging backlog for the fourth quarter. However, it is important to stress that we are still seeing the Coronavirus pandemic effects, which increase risks and uncertainties.”

Second Quarter 2020 Financial Results

Revenues for the second quarter of 2020 were $37.0 million. This compares to second quarter 2019 revenues of $34.3 million, a growth of 8%.

Gross profit on a GAAP basis in the quarter totaled $16.9 million (45.8% of revenues), up 2% compared to a gross profit of $16.6 million (48.2% of revenues) in the second quarter of 2019. Gross profiton a non-GAAP basis in the quarter totaled $17.0 million (46.1% of revenues), up 3% compared to a gross profit of $16.6 million (48.4% of revenues) in the second quarter of 2019.

Operating profit on a GAAP basis in the quarter totaled $5.4 million (14.6% of revenues), compared to an operating profit of $6.4 million (18.5% of revenues) in the second quarter of 2019. Operating profiton a non-GAAP basis in the quarter totaled $6.4 million (17.2% of revenues), compared to $7.0 million (20.5% of revenues) in the second quarter of 2019.

Net income on a GAAP basis in the quarter totaled $5.3 million, or $0.13 per diluted share, compared to net income of $7.2 million, or $0.19 per diluted share, in the second quarter of 2019. Net income on a non-GAAP basis in the quarter totaled $6.3 million, or $0.16 per diluted share, compared to a non-GAAP net income of $6.7 million, or $0.18 per diluted share, in the second quarter of 2019.

Cash and cash equivalents and short-term deposits, as of June 30, 2020, were $101.5 million compared to $89.5 million as of December 31, 2019. During the quarter, the Company generated a positive operating cash flow of $11.1 million, of which $7.6 million were advanced payments from customers.

Conference Call

Camtek will host a conference call today, August 5, 2020, at 9:00 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:	1 888 407 2553	at 9:00 am Eastern Time
Israel:	03 918 0610	at 4:00 pm Israel Time
International:	+972 3 918 0610

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 contains projections or other forward-looking statements regarding future events or the future performance of the Company. These statements are only predictions that represent our views only as of the date they are made and may change as time passes. We do not assume any obligation to update that information, except as required by law. These forward-looking statements are subject to risks and uncertainties that may cause actual events or results to differ materially from those projected, including as a result of the effects of general economic conditions; the effect of the COVID-19 crisis on the global markets and on the markets in which we operate, including the risk of a continued disruption to our and our customers’, providers’, business partners and contractors’ business as a result of the outbreak and effects of the COVID-19 pandemic; the risks relating to the concentration of a significant portion of Camtek's expected business in certain countries, particularly China, from which we expect to generate significant portion of our revenues for the second half of 2020, but also Taiwan and Korea, including the risks of deviations from our expectations regarding timing and size of orders from customers in these countries; 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 other risks identified in our Annual Report on Form 20-F and other documents filed by the Company with the SEC.

This press release provides financial measures that exclude: (i) share based compensation expenses; (ii) certain Chroma transaction expenses; and (iii) discontinued operations, 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. and its subsidiaries

Consolidated Balance Sheets

(In thousands)

	June 30,			December 31,
	2020			2019
	U.S. Dollars (In thousands)
Assets
Current assets
Cash and cash equivalents		32,469			38,047
Short-term deposits		69,000			51,500
Trade accounts receivable, net		39,528			31,443
Inventories		29,537			23,803
Other current assets		3,523			2,909
Total current assets		174,057			147,702
Fixed assets, net		18,800			18,526
Long term inventory		3,292			2,791
Deferred tax asset		520			746
Other assets, net		80			113
Intangible assets, net		574			491
		4,466			4,141
Total assets		197,323			170,369
Liabilities and shareholders’ equity
Current liabilities
Trade accounts payable		20,561			11,334
Other current liabilities		28,170			20,272
Total current liabilities		48,731			31,606
Long term liabilities
Other long term liabilities		2,100			2,461
		2,100			2,461
Total liabilities		50,831			34,067
Commitments and contingencies
Shareholders’ equity
Ordinary shares NIS 0.01 par value, 100,000,000 shares authorized at June 30, 2020 and at December 31, 2019;
41,124,714 issued shares at June 30, 2019 and 40,742,355 at December 31, 2019;
39,032,338 shares outstanding at June 30, 2020 and 38,649,979 at December 31, 2019		158			157
Additional paid-in capital		103,428			101,327
Retained earnings		44,804			36,716
		148,390			138,200
Treasury stock, at cost (2,092,376  as of June 30, 2020 and December 31, 2019)		(1,898	)		(1,898	)
Total shareholders' equity		146,492			136,302
Total liabilities and shareholders' equity		197,323			170,369

Camtek Ltd.

Consolidated Statements of Operations

(in thousands, except share data)

	Six Months ended June 30,						Three Months ended June 30,						Year ended December 31,
	2020			2019			2020			2019			2019
	U.S. dollars						U.S. dollars						U.S. dollars
Revenues		67,179			68,348			37,000			34,346			134,019
Cost of revenues		36,679			34,623			20,057			17,777			69,235
Gross profit		30,500			33,725			16,943			16,569			64,784
Research and development costs		8,884			7,727			4,754			3,803			16,331
Selling, general and administrative expenses		13,338			12,987			6,779			6,412			26,481
		22,222			20,714			11,533			10,215			42,812
Operating income		8,278			13,011			5,410			6,354			21,972
Financial income, net		651			152			276			135			801
Income from continuing operations
before income taxes		8,929			13,163			5,686			6,489			22,773
Income tax expense		(841	)		(1,110	)		(378	)		(463	)		(1,950	)
Net income from continuing operations		8,088			12,053			5,308			6,026			20,823
Discontinued operations *
Income from discontinued operations
Income before tax expense		-			1,257			-			1,257			1,257
Income tax expense		-			94			-			94			94
Net income from discontinued operations		-			1,163			-			1,163			1,163
Net income		8,088			13,216			5,308			7,189			21,986

*Relates to the earn-out payment received from the sale of the PCB business.

Net income per ordinary share:

		Six months ended June 30,				Three months ended June 30,				Year ended December 31,
		2020		2019		2020		2019		2019
	Note	U.S. dollars				U.S. dollars				U.S. dollars
Basic earnings from continuing operation			0.21		0.33		0.14		0.16		0.55
Basic earnings from discontinued operation			-		0.03		-		0.03		0.03
Basic net earnings			0.21		0.36		0.14		0.19		0.58
Diluted earnings from continuing operation			0.20		0.32		0.13		0.16		0.54
Diluted earnings from discontinued operation			-		0.03		-		0.03		0.03
Diluted net earnings			0.20		0.35		0.13		0.19		0.57
Weighted average number of ordinary shares outstanding (in thousands):
Basic			38,849		36,644		39,033		36,816		37,626
Diluted			39,779		37,476		39,940		37,734		37,432

Camtek Ltd.

Reconciliation of GAAP To Non-GAAP results

(In thousands, except share data)

	Six Months ended June 30,						Three Months ended June 30,						Year ended December 31,
	2020			2019			2020			2019			2019
	U.S. dollars						U.S. dollars						U.S. dollars
Reported net income attributable to Camtek Ltd. on GAAP basis		8,088			13,216			5,308			7,189			21,986
Share-based compensation		1,768			1,250			951			605			2,892
Chroma transaction expenses (1)		-			73			-			73			136
Attributable to discontinued operations		-			(1,163	)		-			(1,163	)		(1,163	)
Non-GAAP net income		9,856			13,376			6,259			6,704			23,851
Non–GAAP net income per diluted share		0.25			0.37			0.16			0.18			0.62
Gross margin on GAAP basis from continuing operations		45.4	%		49.4	%		45.8	%		48.2	%		48.3	%
Reported gross profit on GAAP basis		30,500			33,725			16,943			16,569			64,784
Share-based compensation		189			122			103			61			292
Non- GAAP gross margin		30,689			33,847			17,046			16,630			65,076
Non-GAAP gross profit		45.7	%		49.5	%		46.1	%		48.4	%		48.6	%
Reported operating income attributable to Camtek Ltd. on GAAP basis from continuing operations		8,278			13,011			5,410			6,354			21,972
Share-based compensation		1,768			1,250			951			605			2,892
Chroma transaction expenses (1)		-			73			-			73			136
Non-GAAP operating income		10,046			14,334			6,361			7,032			25,000

(1) In the second and third quarters of 2019, certain transaction expenses were incurred in relation to the technological cooperation agreement with Chroma. These were recorded under operating expenses.