0Represents an amount less than $1,000 Including shipping and handling costs Including foreign currency expense resulting from transactions not denominated in U.S. Dollars 0001109138 2024-01-01 2024-06-30 0001109138 2023-01-01 2023-06-30 0001109138 2023-01-01 2023-12-31 0001109138 2023-12-31 0001109138 2022-12-31 0001109138 2024-06-30 0001109138 2023-06-30 0001109138us-gaap:CommonStockMember 2022-12-31 0001109138us-gaap:AdditionalPaidInCapitalMember 2022-12-31 0001109138us-gaap:RetainedEarningsMember 2022-12-31 0001109138us-gaap:RetainedEarningsMember 2024-06-30 0001109138us-gaap:AdditionalPaidInCapitalMember 2024-06-30 0001109138us-gaap:CommonStockMember 2024-06-30 0001109138us-gaap:RetainedEarningsMember 2023-06-30 0001109138us-gaap:AdditionalPaidInCapitalMember 2023-06-30 0001109138us-gaap:CommonStockMember 2023-06-30 0001109138us-gaap:CommonStockMember 2023-01-01 2023-06-30 0001109138us-gaap:AdditionalPaidInCapitalMember 2023-01-01 2023-06-30 0001109138us-gaap:RetainedEarningsMember 2023-01-01 2023-06-30 0001109138us-gaap:CommonStockMember 2023-07-01 2023-12-31 0001109138us-gaap:CommonStockMember 2024-01-01 2024-06-30 0001109138us-gaap:AdditionalPaidInCapitalMember 2023-07-01 2023-12-31 0001109138 2023-07-01 2023-12-31 0001109138us-gaap:RetainedEarningsMember 2023-07-01 2023-12-31 0001109138us-gaap:RetainedEarningsMember 2024-01-01 2024-06-30 0001109138us-gaap:TreasuryStockCommonMember 2023-01-01 2023-06-30 0001109138us-gaap:TreasuryStockCommonMember 2023-06-30 0001109138us-gaap:TreasuryStockCommonMember 2023-07-01 2023-12-31 0001109138us-gaap:TreasuryStockCommonMember 2024-01-01 2024-06-30 0001109138us-gaap:TreasuryStockCommonMember 2024-06-30 0001109138us-gaap:AdditionalPaidInCapitalMember 2024-01-01 2024-06-30 0001109138us-gaap:TreasuryStockCommonMember 2023-12-31 0001109138us-gaap:TreasuryStockCommonMember 2022-12-31 0001109138us-gaap:CommonStockMember 2023-12-31 0001109138us-gaap:AdditionalPaidInCapitalMember 2023-12-31 0001109138us-gaap:RetainedEarningsMember 2023-12-31 0001109138camt:OtherComprehensiveIncomeLossesMember 2022-12-31 0001109138camt:OtherComprehensiveIncomeLossesMember 2023-01-01 2023-06-30 0001109138camt:OtherComprehensiveIncomeLossesMember 2023-06-30 0001109138camt:OtherComprehensiveIncomeLossesMember 2023-07-01 2023-12-31 0001109138camt:OtherComprehensiveIncomeLossesMember 2023-12-31 0001109138camt:OtherComprehensiveIncomeLossesMember 2024-01-01 2024-06-30 0001109138camt:OtherComprehensiveIncomeLossesMember 2024-06-30 0001109138camt:PriortechLtdMember 2024-06-30 0001109138camt:ChromaAteIncMember 2024-06-30 0001109138us-gaap:RestrictedStockUnitsRSUMember 2024-01-01 2024-06-30 0001109138us-gaap:EmployeeStockOptionMember 2024-01-01 2024-06-30 0001109138camt:UnitedStatesOfAmericaDollarMemberus-gaap:CashAndCashEquivalentsMember 2024-06-30 0001109138camt:UnitedStatesOfAmericaDollarMemberus-gaap:CashAndCashEquivalentsMember 2023-12-31 0001109138camt:NewIsraeliShekelMemberus-gaap:CashAndCashEquivalentsMember 2024-06-30 0001109138camt:NewIsraeliShekelMemberus-gaap:CashAndCashEquivalentsMember 2023-12-31 0001109138camt:OthersCurrenciesMemberus-gaap:CashAndCashEquivalentsMember 2024-06-30 0001109138camt:OthersCurrenciesMemberus-gaap:CashAndCashEquivalentsMember 2023-12-31 0001109138us-gaap:LandMember 2024-06-30 0001109138us-gaap:BuildingMember 2024-06-30 0001109138us-gaap:MachineryAndEquipmentMember 2024-06-30 0001109138us-gaap:OfficeEquipmentMember 2024-06-30 0001109138us-gaap:ComputerEquipmentMember 2024-06-30 0001109138us-gaap:AutomobilesMember 2024-06-30 0001109138us-gaap:LeaseholdImprovementsMember 2024-06-30 0001109138camt:RightOfUseAssetsMember 2024-06-30 0001109138us-gaap:LandMember 2023-12-31 0001109138us-gaap:BuildingMember 2023-12-31 0001109138us-gaap:MachineryAndEquipmentMember 2023-12-31 0001109138us-gaap:OfficeEquipmentMember 2023-12-31 0001109138us-gaap:ComputerEquipmentMember 2023-12-31 0001109138us-gaap:AutomobilesMember 2023-12-31 0001109138us-gaap:LeaseholdImprovementsMember 2023-12-31 0001109138camt:RightOfUseAssetsMember 2023-12-31 0001109138camt:AvailableForSaleSecuritiesMaturesWithinOneYearMemberus-gaap:CorporateBondSecuritiesMember 2024-06-30 0001109138camt:AvailableForSaleSecuritiesMaturesWithinOneYearMemberus-gaap:USTreasurySecuritiesMember 2024-06-30 0001109138camt:AvailableForSaleSecuritiesMaturesWithinOneYearMember 2024-06-30 0001109138camt:AvailableForSaleSecuritiesMaturesAfterOneYearMemberus-gaap:CorporateBondSecuritiesMember 2024-06-30 0001109138camt:AvailableForSaleSecuritiesMaturesAfterOneYearMemberus-gaap:USTreasurySecuritiesMember 2024-06-30 0001109138camt:AvailableForSaleSecuritiesMaturesAfterOneYearMember 2024-06-30 0001109138us-gaap:USTreasurySecuritiesMember 2024-06-30 0001109138us-gaap:CorporateBondSecuritiesMember 2024-06-30 0001109138us-gaap:CorporateBondSecuritiesMember 2023-12-31 0001109138camt:AvailableForSaleSecuritiesMaturesWithinOneYearMemberus-gaap:CorporateBondSecuritiesMember 2023-12-31 0001109138camt:AvailableForSaleSecuritiesMaturesWithinOneYearMemberus-gaap:USTreasurySecuritiesMember 2023-12-31 0001109138camt:AvailableForSaleSecuritiesMaturesWithinOneYearMember 2023-12-31 0001109138camt:AvailableForSaleSecuritiesMaturesAfterOneYearMemberus-gaap:CorporateBondSecuritiesMember 2023-12-31 0001109138camt:AvailableForSaleSecuritiesMaturesAfterOneYearMemberus-gaap:USTreasurySecuritiesMember 2023-12-31 0001109138camt:AvailableForSaleSecuritiesMaturesAfterOneYearMember 2023-12-31 0001109138us-gaap:ShortTermInvestmentsMember 2024-01-01 2024-06-30 0001109138us-gaap:FairValueMeasurementsRecurringMember 2024-06-30 0001109138us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember 2024-06-30 0001109138us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember 2024-06-30 0001109138us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember 2024-06-30 0001109138us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember 2023-12-31 0001109138us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember 2023-12-31 0001109138us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember 2023-12-31 0001109138us-gaap:FairValueMeasurementsRecurringMember 2023-12-31 iso4217:ILSxbrli:shares xbrli:pure xbrli:shares iso4217:USD iso4217:USDxbrli:shares
Exhibit 99.1
Camtek Ltd. and its Subsidiaries Interim Condensed Consolidated Financial Statements As of June 30, 2024 (Unaudited) |
Camtek Ltd. and its Subsidiaries
Interim Unaudited Condensed Consolidated Financial Statements as at June 30, 2024
Contents
F - 2
Camtek Ltd. and its Subsidiaries
Interim Unaudited Condensed Consolidated Balance Sheets
| June 30, | December 31, | ||||||||||
2024 | 2023 | ||||||||||
Note | U.S. Dollars (in thousands) | ||||||||||
| Assets | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | 4A | 86,201 | 119,968 | ||||||||
| Short-term deposits | 256,250 | 215,250 | |||||||||
| Marketable securities | 4B | 23,615 | 18,816 | ||||||||
| Trade accounts receivable, net | 68,151 | 87,300 | |||||||||
| Inventories | 4C | 99,215 | 85,905 | ||||||||
| Other current assets | 4D | 27,048 | 19,548 | ||||||||
| Total current assets | 560,480 | 546,787 | |||||||||
| Long term deposits | 6,000 | 21,000 | |||||||||
| Marketable securities | 4B | 81,817 | 73,576 | ||||||||
| Long term inventory | 4C | 9,553 | 9,023 | ||||||||
| Deferred tax assets, net | 2,642 | 2,642 | |||||||||
| Other assets, net | 1,947 | 1,370 | |||||||||
| Property, plant and equipment, net | 4E | 44,246 | 41,987 | ||||||||
| Intangible assets, net | 4F | 15,145 | 16,937 | ||||||||
| Goodwill | 74,345 | 74,345 | |||||||||
| Total non-current assets | 235,695 | 240,880 | |||||||||
| Total assets | 796,175 | 787,667 | |||||||||
| Liabilities and shareholders’ equity | |||||||||||
| Current liabilities | |||||||||||
| Trade accounts payable | 37,757 | 42,187 | |||||||||
| Other current liabilities | 4G | 69,777 | 54,487 | ||||||||
| Total current liabilities | 107,534 | 96,674 | |||||||||
| Long term liabilities | |||||||||||
| Deferred tax liabilities, net | 5,845 | 7,541 | |||||||||
| Other long-term liabilities | 9,988 | 10,473 | |||||||||
| Convertible notes | 4H | 197,378 | 196,831 | ||||||||
213,211 | 214,845 | ||||||||||
| Total liabilities | 320,745 | 311,519 | |||||||||
| Shareholders’ equity | |||||||||||
| Ordinary shares NIS 0.01 par value, 100,000,000 shares authorized at June 30, 2024 and at December 31, 2023; | |||||||||||
| 47,410,314 issued shares at June 30, 2024 and 46,993,998 at December 31, 2023; | |||||||||||
| 45,317,938 shares outstanding at June 30, 2024 and 44,901,622 at December 31, 2023; | 3 | 177 | 176 | ||||||||
| Additional paid-in capital | 207,615 | 200,389 | |||||||||
| Accumulated other comprehensive income (loss) | (534 | ) | 129 | ||||||||
| Retained earnings | 270,070 | 277,352 | |||||||||
| 477,328 | 478,046 | ||||||||||
| Treasury stock, at cost (2,092,376 shares as of June 30, 2024 and December 31, 2023) | (1,898 | ) | (1,898 | ) | |||||||
| Total shareholders' equity | 475,430 | 476,148 | |||||||||
| Total liabilities and shareholders' equity | 796,175 | 787,667 | |||||||||
The accompanying notes are an integral part of these interim unaudited condensed consolidated financial statements.
F - 3
Camtek Ltd. and its Subsidiaries
Interim Unaudited Condensed Consolidated Statements of Operations
(In thousands, except per share data)
Six months ended June 30, | Year ended December 31, | ||||||||||||||
2024 | 2023 | 2023 | |||||||||||||
Note | U.S. dollars | U.S. dollars | |||||||||||||
| Revenues | 199,601 | 146,215 | 315,375 | ||||||||||||
| Cost of revenues | 103,638 | 77,378 | 167,742 | ||||||||||||
| Gross profit | 95,963 | 68,837 | 147,633 | ||||||||||||
| Research and development costs | 18,146 | 15,672 | 31,470 | ||||||||||||
| Selling, general and | |||||||||||||||
| administrative expenses | 5A | 30,694 | 24,037 | 50,751 | |||||||||||
| 48,840 | 39,709 | 82,221 | |||||||||||||
| Operating profit | 47,123 | 29,128 | 65,412 | ||||||||||||
| Financial income, net | 5B | 10,624 | 10,864 | 22,218 | |||||||||||
| Income before income taxes | 57,747 | 39,992 | 87,630 | ||||||||||||
| Income tax expense | (4,984 | ) | (4,208 | ) | (8,998 | ) | |||||||||
| Net income | 52,763 | 35,784 | 78,632 | ||||||||||||
F - 4
Camtek Ltd. and its Subsidiaries
Interim Unaudited Condensed Consolidated Statements of Operations (contd.)
Net income per ordinary share:
Six months ended June 30, | Year ended December 31, | ||||||||||||||
| 2024 | 2023 | 2023 | |||||||||||||
Note | U.S. dollars | U.S. dollars | |||||||||||||
| Basic net earnings per share | 1.17 | 0.80 | 1.76 | ||||||||||||
| Diluted net earnings per share | 1.08 | 0.74 | 1.63 | ||||||||||||
| Weighted average number of | |||||||||||||||
| ordinary shares outstanding | |||||||||||||||
| (in thousands): | |||||||||||||||
| Basic | 45,160 | 44,562 | 44,725 | ||||||||||||
| Diluted | 49,283 | 48,531 | 48,863 | ||||||||||||
The accompanying notes are an integral part of these interim unaudited condensed consolidated financial statements.
F - 5
Camtek Ltd. and its Subsidiaries
Interim Unaudited Condensed Consolidated Statements of Comprehensive Income
(In thousands)
Six months ended June 30, | Year ended December 31, | |||||||||||
2024 | 2023 | 2023 | ||||||||||
U.S. dollars | U.S. dollars | |||||||||||
| Net income | 52,763 | 35,784 | 78,632 | |||||||||
| Other comprehensive income (loss), net of tax: | ||||||||||||
| Change in net unrealized gains on available-for-sale marketable securities | (663 | ) | - | 740 | ||||||||
| Deferred tax expense | - | - | (611 | ) | ||||||||
| Total other comprehensive income (loss) | (663 | ) | - | 129 | ||||||||
| Total comprehensive income | 52,100 | 35,784 | 78,761 | |||||||||
The accompanying notes are an integral part of these interim unaudited condensed consolidated financial statements.
F - 6
Camtek Ltd. and its Subsidiaries
Interim Unaudited Condensed Consolidated Statements of Shareholders’ Equity
Accumulated | ||||||||||||||||||||||||||||||||
Ordinary Shares | Number of | Additional | Other | Total | ||||||||||||||||||||||||||||
NIS 0.01 par value | Treasury | Treasury | paid-in | Comprehensive | Retained | shareholders' | ||||||||||||||||||||||||||
Number of | U.S. Dollars | Shares | Shares | capital | Income (loss) | earnings | equity | |||||||||||||||||||||||||
Shares Issued | (in thousands) | U.S. Dollars (in thousands) | ||||||||||||||||||||||||||||||
Balances at | ||||||||||||||||||||||||||||||||
December 31, 2022 | 46,505,318 | 175 | (2,092,376 | ) | (1,898 | ) | 187,105 | - | 198,720 | 384,102 | ||||||||||||||||||||||
Share-based | ||||||||||||||||||||||||||||||||
compensation | ||||||||||||||||||||||||||||||||
expense | - | - | - | - | 6,521 | - | - | 6,521 | ||||||||||||||||||||||||
Exercise of share | ||||||||||||||||||||||||||||||||
options and RSUs | 306,186 | * | - | - | - | - | - | - | ||||||||||||||||||||||||
Net income | - | - | - | - | - | - | 35,784 | 35,784 | ||||||||||||||||||||||||
Balances at | ||||||||||||||||||||||||||||||||
June 30, 2023 | 46,811,504 | 175 | (2,092,376 | ) | (1,898 | ) | 193,626 | - | 234,504 | 426,407 | ||||||||||||||||||||||
Share-based | ||||||||||||||||||||||||||||||||
compensation | ||||||||||||||||||||||||||||||||
expense | - | - | - | - | 6,077 | - | - | 6,077 | ||||||||||||||||||||||||
Exercise of share | ||||||||||||||||||||||||||||||||
options and RSUs | 182,494 | 1 | - | - | 181 | - | - | 182 | ||||||||||||||||||||||||
Share-based | ||||||||||||||||||||||||||||||||
compensation adjustment | - | - | - | - | 505 | - | 505 | |||||||||||||||||||||||||
Unrealised gain on investments | - | - | - | - | - | 740 | - | 740 | ||||||||||||||||||||||||
Deferred tax expense | - | - | - | - | - | (611 | ) | - | (611 | ) | ||||||||||||||||||||||
Net income | - | - | - | - | - | - | 42,848 | 42,848 | ||||||||||||||||||||||||
Balances at | ||||||||||||||||||||||||||||||||
December 31, 2023 | 46,993,998 | 176 | (2,092,376 | ) | (1,898 | ) | 200,389 | 129 | 277,352 | 476,148 | ||||||||||||||||||||||
Share-based | ||||||||||||||||||||||||||||||||
compensation | ||||||||||||||||||||||||||||||||
expense | - | - | - | - | 7,198 | - | - | 7,198 | ||||||||||||||||||||||||
| Exercise of share | ||||||||||||||||||||||||||||||||
options and RSUs | 416,316 | 1 | - | - | 28 | - | - | 29 | ||||||||||||||||||||||||
Unrealised gain on investments | - | - | - | - | - | (663 | ) | - | (663 | ) | ||||||||||||||||||||||
Dividend paid | - | - | - | - | - | - | (60,045 | ) | (60,045 | ) | ||||||||||||||||||||||
Net income | - | - | - | - | - | - | 52,763 | 52,763 | ||||||||||||||||||||||||
Balances at | ||||||||||||||||||||||||||||||||
June 30, 2024 | 47,410,314 | 177 | (2,092,376 | ) | (1,898 | ) | 207,615 | (534 | ) | 270,070 | 475,430 | |||||||||||||||||||||
The accompanying notes are an integral part of these interim unaudited condensed consolidated financial statements.
*Represents an amount less than $1,000
F - 7
Camtek Ltd. and its Subsidiaries
Interim Unaudited Condensed Consolidated Statements of Cash Flows
(In thousands)
Six months ended June 30, | Year ended December 31, | |||||||||||
| 2024 | 2023 | 2023 | ||||||||||
U.S. dollars | U.S. dollars | |||||||||||
Cash flows from operating activities: | ||||||||||||
Net income | 52,763 | 35,784 | 78,632 | |||||||||
Adjustments to reconcile net income to net | ||||||||||||
cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 5,040 | 2,406 | 5,784 | |||||||||
Deferred tax expense | (1,696 | ) | 280 | (1,254 | ) | |||||||
Amortization of debt issuance costs | 547 | 547 | 1,094 | |||||||||
Loss on disposal of fixed assets | - | 233 | 6 | |||||||||
Share based compensation expense | 7,198 | 6,521 | 12,598 | |||||||||
Change in provision for doubtful debts | 112 | - | 100 | |||||||||
Changes in operating assets and liabilities: | ||||||||||||
Trade accounts receivable | 19,267 | 1,829 | (1,890 | ) | ||||||||
Inventories | (14,467 | ) | 171 | (13,692 | ) | |||||||
Due from related parties | (1 | ) | - | (3 | ) | |||||||
Other assets | (9,371 | ) | (5,375 | ) | (6,766 | ) | ||||||
Trade accounts payable | (4,713 | ) | (231 | ) | 10,121 | |||||||
Other current liabilities | 15,467 | (9,449 | ) | (5,406 | ) | |||||||
Net cash provided by operating activities | 70,146 | 32,716 | 79,324 | |||||||||
Cash flows from investing activities: | ||||||||||||
Acquisition of subsidiary consolidated for the first time (a) | 1,295 | - | (101,781 | ) | ||||||||
Proceeds from (investment in) short-term deposits | (41,000 | ) | 57,000 | 36,250 | ||||||||
Proceeds from (investment in) long-term deposits | 15,000 | - | 58,000 | |||||||||
Purchase of fixed assets | (5,133 | ) | (4,782 | ) | (8,097 | ) | ||||||
Purchase of intangible assets | (126 | ) | (60 | ) | (173 | ) | ||||||
Purchase of marketable securities | (25,653 | ) | - | (103,528 | ) | |||||||
Redemption of marketable securities | 11,950 | - | 11,876 | |||||||||
Net cash provided by (used in) investing activities | (43,667 | ) | 52,158 | (107,453 | ) | |||||||
F - 8
Camtek Ltd. and its Subsidiaries
Interim Unaudited Condensed Consolidated Statements of Cash Flows
(In thousands)
Six months ended June 30, | Year ended December 31, | |||||||||||
2024 | 2023 | 2023 | ||||||||||
U.S. dollars | U.S. dollars | |||||||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from exercise of share options | 29 | - | 182 | |||||||||
Dividend payment | (60,045 | ) | - | - | ||||||||
Net cash provided by (used in) financing activities | (60,016 | ) | - | 182 | ||||||||
Effect of change in exchange rate on cash and cash equivalents | (230 | ) | (243 | ) | (241 | ) | ||||||
Net increase (decrease) in cash and cash equivalents | (33,767 | ) | 84,631 | (28,188 | ) | |||||||
Cash and cash equivalents at beginning of the period | 119,968 | 148,156 | 148,156 | |||||||||
Cash and cash equivalents at end of the period | 86,201 | 232,787 | 119,968 | |||||||||
Year ended December 31, 2023 | ||||
(a) Acquisition of subsidiary, consolidated for the first time: | U.S. Dollars | |||
Working capital (excluding cash and cash equivalents) | (15,288 | ) | ||
Fixed assets, net | (1,615 | ) | ||
Intangible assets | (16,900 | ) | ||
Goodwill | (74,345 | ) | ||
Deferred taxes liabilities, net | 7,157 | |||
Working capital adjustments | (1,295 | ) | ||
(102,286 | ) | |||
Increase in goodwill against share-based compensation | 505 | |||
(101,781 | ) | |||
Six months ended June 30, | Year ended December 31, | |||||||||||
2024 | 2023 | 2023 | ||||||||||
U.S. dollars | U.S. dollars | |||||||||||
Supplementary cash flows information: | ||||||||||||
Income taxes paid | 4,497 | 9,626 | 13,807 | |||||||||
Interest received | 6,125 | 6,911 | 18,685 | |||||||||
Lease payments | 1,040 | 735 | 1,854 | |||||||||
Non-cash transactions: | ||||||||||||
Fixed assets purchased with supplier credit | 550 | 371 | 267 | |||||||||
The accompanying notes are an integral part of these interim unaudited condensed consolidated financial statements.
F - 9
Camtek Ltd. and its Subsidiaries
Notes to the Interim Unaudited Condensed Consolidated Financial Statements
(Amounts in thousands, except per share data)
Note 1 - Nature of Operations
Camtek Ltd. (“Camtek” or the “Company”), an Israeli corporation, is jointly controlled 21.2% by Priortech Ltd., an Israeli corporation listed on the Tel-Aviv Stock Exchange and 17.3% by Chroma Ate Inc., a Taiwanese company (“Chroma”). Camtek provides automated and technologically advanced solutions dedicated to enhancing production processes, increasing product yield and reliability, and enabling and supporting customers’ latest technologies in the semiconductor fabrication industry. |
F - 10
Camtek Ltd. and its Subsidiaries
Notes to the Interim Unaudited Condensed Consolidated Financial Statements
(Amounts in thousands, except per share data)
Note 2 - Basis of Preparation
A. Statement of compliance
The accounting policies applied in these interim financial statements are the same as those applied in the Company’s 2023 annual audited consolidated financial statements for the year ended December 31, 2023.
The accompanying unaudited condensed consolidated interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and do not include all of the information required for full annual financial statements. The unaudited condensed consolidated interim statements should be read in conjunction with the Company’s 2023 annual audited consolidated financial statements and footnotes, which were filed with the U.S. Securities and Exchange Commission as part of the Company’s Annual Report on Form 20-F for the year ended December 31, 2023.
In the opinion of management of the Company, the accompanying unaudited condensed financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of June 30, 2024, and its results of operations for the six months ended June 30, 2024, and 2023, and cash flows for the six months ended June 30, 2024, and 2023. The condensed balance sheet at December 31, 2023, was derived from the audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements.
F - 11
Camtek Ltd. and its Subsidiaries
Notes to the Interim Unaudited Condensed Consolidated Financial Statements
(Amounts in thousands, except per share data)
Note 3 - Shareholders’ Equity
A. General
The Company’s shares are traded on the NASDAQ Global Market under the symbol “CAMT”, and also listed and traded on the Tel-Aviv stock exchange.
B. Changes in Stock Options and RSUs
The number of stock options exercised in the six-month period ended June 30, 2024, was 416,316.
In the first six months of 2024, 183,329 restricted share units (RSUs) were granted by the Company. The RSUs vest over a four-year period.
C. Share-based Compensation Expense
The total share-based compensation expense amounted to $7,198, $6,521, and $12,598 for the six-month periods ended June 30, 2024 and 2023 and the year ended December 31, 2023, respectively.
F - 12
Camtek Ltd. and its Subsidiaries
Notes to the Interim Unaudited Condensed Consolidated Financial Statements
(Amounts in thousands, except per share data)
Note 4 - Supplementary Financial Statements Information
A. Cash and cash equivalents
The Company’s cash and cash equivalent balance at June 30, 2024 and December 31, 2023 is denominated in the following currencies:
June 30, | December 31, | |||||||
2024 | 2023 | |||||||
U.S. Dollars | ||||||||
US Dollars | 73,637 | 113,190 | ||||||
New Israeli Shekels | 4,065 | 2,795 | ||||||
Other currencies | 8,499 | 3,983 | ||||||
86,201 | 119,968 | |||||||
Short-term deposits are bank deposits in US Dollars with an original maturity of more than three months and remaining term at the balance sheet date of no more than twelve months. As of June 30, 2024, the average annual interest rate was 6.11%.
B. Marketable Securities
Summary of marketable securities amortized cost, unrealized gains, unrealized losses, and fair value as of June 30, 2024 and December 31, 2023:
June 30, 2024 | ||||||||||||||||
U.S. Dollars | ||||||||||||||||
Marketable Securities | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||
Matures within one year: | ||||||||||||||||
Corporate bonds | 22,645 | 2 | (32 | ) | 22,615 | |||||||||||
Government bonds | 984 | 16 | - | 1,000 | ||||||||||||
23,629 | 18 | (32 | ) | 23,615 | ||||||||||||
Matures after one year: | ||||||||||||||||
Corporate bonds | 73,278 | 111 | (380 | ) | 73,009 | |||||||||||
Government bonds | 8,798 | 12 | (2 | ) | 8,808 | |||||||||||
82,076 | 123 | (382 | ) | 81,817 | ||||||||||||
105,705 | 141 | (414 | ) | 105,432 | ||||||||||||
F - 13
Camtek Ltd. and its Subsidiaries
Notes to the Interim Unaudited Condensed Consolidated Financial Statements
(Amounts in thousands, except per share data)
Note 4 - Supplementary Financial Statements Information (cont’d)
B. Marketable Securities (cont’d)
December 31, 2023 | ||||||||||||||||
U.S. Dollars | ||||||||||||||||
| Marketable Securities | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||
| Matures within one year: | ||||||||||||||||
| Corporate bonds | 9,821 | 7 | (9 | ) | 9,819 | |||||||||||
| Government bonds | 8,983 | 14 | - | 8,997 | ||||||||||||
18,804 | 21 | (9 | ) | 18,816 | ||||||||||||
| Matures after one year: | ||||||||||||||||
| Corporate bonds | 64,033 | 574 | (3 | ) | 64,604 | |||||||||||
| Government bonds | 8,815 | 157 | - | 8,972 | ||||||||||||
72,848 | 731 | (3 | ) | 73,576 | ||||||||||||
91,652 | 752 | (12 | ) | 92,392 | ||||||||||||
The amortized cost and estimated fair value of marketable securities classified by the maturity date listed on the security, regardless of the Consolidated Balance Sheet classification, is as follows at June 30, 2024 and December 31, 2023:
June 30, 2024 | ||||||||
Amortized Cost | Fair Value | |||||||
U.S. Dollars | ||||||||
| Due within one year | 23,629 | 23,615 | ||||||
| Due after one through five years | 52,239 | 51,937 | ||||||
| Due after five through ten years | 29,837 | 29,880 | ||||||
| Total marketable securities | 105,705 | 105,432 | ||||||
December 31, 2023 | ||||||||
Amortized Cost | Fair Value | |||||||
U.S. Dollars (in thousands) | ||||||||
| Due within one year | 18,804 | 18,816 | ||||||
| Due after one through five years | 72,210 | 72,908 | ||||||
| Due after five through ten years | 638 | 668 | ||||||
| Total marketable securities | 91,652 | 92,392 | ||||||
F - 14
Camtek Ltd. and its Subsidiaries
Notes to the Interim Unaudited Condensed Consolidated Financial Statements
(Amounts in thousands, except per share data)
Note 4 - Supplementary Financial Statements Information (cont’d)
B. Marketable Securities (cont’d)
The following table summarizes the estimated fair value and gross unrealized holding losses of marketable securities, aggregated by investment instrument and period of time in an unrealized loss position, at June 30, 2024 and December 31, 2023.
In Unrealized Loss Position For Less Than 12 Months | ||||||||
June 30, 2024 | Fair Value | Gross Unrealized Loss | ||||||
U.S. Dollars | ||||||||
Corporate bonds | 73,903 | (412 | ) | |||||
Government bonds | 2,016 | (2 | ) | |||||
75,919 | (414 | ) | ||||||
In Unrealized Loss Position For Less Than 12 Months | ||||||||
December 31, 2023 | Fair Value | Gross Unrealized Loss | ||||||
U.S. Dollars | ||||||||
Corporate bonds | 5,154 | (12 | ) | |||||
5,154 | (12 | ) | ||||||
The level in the fair value hierarchy within which an asset or liability is classified is based on the lowest level input that is significant to the fair value measurement in its entirety.
The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023, aggregated by the level in the fair-value hierarchy within which those measurements fall:
June 30, 2024 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Description | ||||||||||||||||
U.S. Dollars | ||||||||||||||||
Assets | ||||||||||||||||
Marketable securities (current assets) | 23,615 | 1,000 | 22,615 | - | ||||||||||||
Marketable securities (non-current assets | 81,817 | 8,808 | 73,009 | - | ||||||||||||
Total Assets | 105,432 | 9,808 | 95,624 | - | ||||||||||||
F - 15
Camtek Ltd. and its Subsidiaries
Notes to the Interim Unaudited Condensed Consolidated Financial Statements
(Amounts in thousands, except per share data)
Note 4 - Supplementary Financial Statements Information (cont’d)
B. Marketable Securities (cont’d)
December 31, 2023 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Description | ||||||||||||||||
U.S. Dollars | ||||||||||||||||
Assets | ||||||||||||||||
Marketable securities (current assets) | 18,816 | 6,988 | 11,828 | - | ||||||||||||
Marketable securities (non-current assets | 73,576 | 6,981 | 66,595 | - | ||||||||||||
Total Assets | 92,392 | 13,969 | 78,423 | - | ||||||||||||
The Company’s accounting policy is to recognize transfers between levels of the fair value hierarchy on the date of the event or change in circumstances that caused the transfer. In the periods ended June 30, 2024 and December 31, 2023, the Company invested in marketable securities.
Marketable securities are classified within Level 2 because these assets are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs.
C. Inventories
June 30, | December 31, | |||||||
2024 | 2023 | |||||||
U.S. Dollars | ||||||||
Components | 60,438 | 55,598 | ||||||
Work in process | 26,817 | 20,038 | ||||||
Finished products (including systems at customer locations not yet sold) | 21,513 | 19,292 | ||||||
108,768 | 94,928 | |||||||
Inventories are presented in:
June 30, | December 31, | |||||||
2024 | 2023 | |||||||
U.S. Dollars | ||||||||
Current assets | 99,215 | 85,905 | ||||||
Long-term assets | 9,553 | 9,023 | ||||||
108,768 | 94,928 | |||||||
F - 16
Camtek Ltd. and its Subsidiaries
Notes to the Interim Unaudited Condensed Consolidated Financial Statements
(Amounts in thousands, except per share data)
Note 4 - Supplementary Financial Statements Information (cont’d)
D. Other Current Assets
June 30, | December 31, | |||||||
2024 | 2023 | |||||||
U.S. Dollars | ||||||||
Interest receivable | 13,355 | 8,386 | ||||||
Due from Government institutions and income tax receivables | 7,696 | 3,690 | ||||||
Prepaid expenses and vendor downpayments | 4,996 | 5,164 | ||||||
Other | 1,001 | 2,308 | ||||||
27,048 | 19,548 | |||||||
E. Property, Plant and Equipment, Net
June 30, | December 31, | |||||||
2024 | 2023 | |||||||
U.S. Dollars | ||||||||
Land | 1,401 | 1,401 | ||||||
Building | 21,733 | 20,730 | ||||||
Machinery and equipment | 30,187 | 27,626 | ||||||
Office furniture and equipment | 1,061 | 1,057 | ||||||
Computer equipment and software | 6,386 | 6,542 | ||||||
Automobiles | 431 | 429 | ||||||
Leasehold improvements | 2,237 | 2,100 | ||||||
Right of use assets | 7,002 | 7,187 | ||||||
70,438 | 67,072 | |||||||
Less - accumulated depreciation | 26,192 | 25,085 | ||||||
44,246 | 41,987 | |||||||
F - 17
Camtek Ltd. and its Subsidiaries
Notes to the Interim Unaudited Condensed Consolidated Financial Statements
(Amounts in thousands, except per share data)
Note 4 - Supplementary Financial Statements Information (cont’d)
F. Intangible Assets, Net
June 30, | December 31, | |||||||
2024 | 2024 | |||||||
U.S. Dollars | ||||||||
Cost: | ||||||||
Patent registration costs | 2,434 | 2,308 | ||||||
Acquired technology | 12,200 | 12,200 | ||||||
Acquired trade names | 2,700 | 2,700 | ||||||
Acquired customer relationship | 2,000 | 2,000 | ||||||
19,334 | 19,208 | |||||||
Less accumulated amortization | 4,189 | 2,271 | ||||||
Total intangible assets, net | 15,145 | 16,937 | ||||||
G. Other Current Liabilities
June 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
U.S. Dollars | ||||||||
Commissions | 12,617 | 13,588 | ||||||
Advances from customers and deferred revenues | 26,585 | 14,701 | ||||||
Accrued employee compensation and related benefits | 14,362 | 13,137 | ||||||
Accrued warranty costs (1) | 3,713 | 3,397 | ||||||
Government institutions and income tax payable | 7,633 | 5,316 | ||||||
Accrued expenses | 3,133 | 2,661 | ||||||
Operating lease obligations | 1,734 | 1,687 | ||||||
(1) Changes in the accrued warranty costs are as follows: | 69,777 | 54,487 | ||||||
June 30, | December 31, | |||||||
2024 | 2023 | |||||||
U.S. Dollars | ||||||||
Beginning of period | 3,397 | 3,161 | ||||||
Accruals | 3,453 | 5,505 | ||||||
Usage | (3,137 | ) | (5,269 | ) | ||||
Balance at end of period | 3,713 | 3,397 | ||||||
F - 18
Camtek Ltd. and its Subsidiaries
Notes to the Interim Unaudited Condensed Consolidated Financial Statements
(Amounts in thousands, except per share data)
Note 4 - Supplementary Financial Statements Information (cont’d)
H. Convertible Notes
The Convertible Senior Notes consisted of the following:
June 30, | December 31, | |||||||
2024 | 2023 | |||||||
U.S. Dollars | ||||||||
Liability: | ||||||||
Principle: | 200,000 | 200,000 | ||||||
Unamortized issuance costs | (2,622 | ) | (3,169 | ) | ||||
Net carrying amount | 197,378 | 196,831 | ||||||
As of June 30, 2024, the debt issuance costs of the Notes will be amortized over the remaining term of approximately 2.5 years.
The annual effective interest rate of the Notes is 0.56%. In the six-months ended June 30, 2024, $547 was recorded as amortization of debt issuance costs (In the year ended December 31, 2023 - $1,094).
As of June 30, 2024, the estimated fair value of the Notes, which the Company has classified as Level 2 financial instruments, is $441,843 (December 31, 2023 - $258,941). The estimated fair value was determined based on the quoted bid price of the Notes in an over-the-counter market on the last trading day of the reporting period.
As of June 30, 2024, the principal amount exceeded the if-converted value of the Notes by $241,843 (December 31, 2023, the principal amount exceeded the if-converted value of the Notes by $58,941).
F - 19
Camtek Ltd. and its Subsidiaries
Notes to the Interim Unaudited Condensed Consolidated Financial Statements
(Amounts in thousands, except per share data)
Note 5 - Statements of Operations
A. Selling, general and administrative expenses
Six months ended June 30, | Year ended December 31, | |||||||||||
| 2024 | 2023 | 2023 | ||||||||||
U.S. Dollars | ||||||||||||
Selling (1) | 23,004 | 17,910 | 36,896 | |||||||||
General and administrative | 7,690 | 6,127 | 13,855 | |||||||||
30,694 | 24,037 | 50,751 | ||||||||||
(1) Including shipping and handling costs | 2,029 | 1,025 | 2,744 | |||||||||
B. Financial income (expenses), net
Six months ended June 30, | Year ended December 31, | |||||||||||
2024 | 2023 | 2023 | ||||||||||
U.S. Dollars | ||||||||||||
Interest income | 11,812 | 11,838 | 24,051 | |||||||||
Amortization of issuance costs of convertible notes | (547 | ) | (547 | ) | (1,094 | ) | ||||||
Other, net (1) | (641 | ) | (427 | ) | (739 | ) | ||||||
10,624 | 10,864 | 22,218 | ||||||||||
(1) Including foreign currency expense resulting from transactions not denominated in U.S. Dollars | (313 | ) | (172 | ) | (78 | ) | ||||||
F - 20