6-K - CAMT - Equibles

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 February 2021

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. This Form 6-K, including all exhibits hereto, is hereby incorporated by reference into all effective registration statements filed by the registrant under the Securities Act of 1933.

CAMTEK LTD.<br><br> (Registrant)<br><br> <br><br> By: /s/ Moshe Eisenberg<br><br> ——————————————<br><br> Moshe Eisenberg,<br><br> Chief Financial Officer

Dated: February 9, 2021

Camtek Ltd.<br><br> <br>P.O.Box 544, Ramat Gabriel Industrial Park<br><br> <br>Migdal Ha’Emek 23150, ISRAEL<br><br> <br>Tel: +972 (4) 604-8100 Fax: +972 (4) 644-0523<br><br> <br>E-Mail: Info@camtek.com Web site: http://www.camtek.com
CAMTEK LTD.<br><br> <br>Moshe Eisenberg, CFO<br><br> <br>Tel: +972 4 604 8308<br><br> <br>Mobile: +972 54 900 7100<br><br> <br>moshee@camtek.com	INTERNATIONAL INVESTOR RELATIONS<br><br> <br>GK Investor Relations<br><br> <br>Ehud Helft<br><br> Tel: (US) 1 646 688 3559<br><br> <br>camtek@gkir.com
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FOR IMMEDIATE RELEASE

CAMTEK ANNOUNCES RECORD RESULTS

FOR THE FOURTH QUARTER AND FULL YEAR OF 2020

Record Revenues of $48.6 million; Expects revenues of $54-56 million in the first quarter and

over $110 million in the first half of 2021

MIGDAL HAEMEK, Israel – February 9, 2021 – Camtek Ltd. (NASDAQ: CAMT; TASE: CAMT), today announced its financial results for the quarter and year ended December 31, 2020.

Highlights of the Fourth Quarter of 2020

•	Revenues of $48.6 million; a 46% increase year-over-year;
•	GAAP operating income of $8.0 million; non-GAAP operating income of $9.2 million, representing an operating margin of 16.5% and 18.9% respectively;
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•	GAAP net income of $7.7 million and non-GAAP net income of $8.8 million; and
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•	Strong operating cash flow of $8.3 million.
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Highlights of the Full Year 2020

•	Revenues of $155.9 million; a 16% increase year-over-year;
•	GAAP operating income of $22.6 million; Non-GAAP operating income of $26.8 million; representing operating margins of 14.5% and 17.2% respectively;
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•	GAAP net income of $21.8 million; Non-GAAP net income of $26.0 million; and
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•	Operating cash flow of $25.8 million in 2020, which, along with the successful public offering in November, led to year-end net cash and short-term deposits balance of $177.8 million.
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Forward-Looking Expectations

Management expects continued revenue growth in the first quarter of 2021, with revenues of between $54-56 million. Just in the last two weeks the Company has received multiple systems orders from several customers totaling $25 million. The orders received so far, together with the sales pipeline, point to a strong revenue forecast for the first half of 2021. Management is anticipating revenues of over $110 million in the first half of 2021, implying at least 65% growth over the first half of 2020.

Management Comment

Rafi Amit, Camtek’s CEO commented, “A record fourth quarter concluded an exceptional year for Camtek. While we started 2020 with a lot of concerns due to COVID-19, we ended the year with unprecedented business momentum. We have leveraged our flexible operational infrastructure and increased our support team in the field in order to successfully meet this growth.

“In 2020, we extended our market presence by penetrating new customers as well as expanding our presence at existing customers. From a financial perspective, in the second half of 2020, we saw improved margins and we see this trend continuing into 2021.”

Concluded Mr. Amit, “2021 has started with strong order momentum and we expect it to be a record year in sales and growth, along with improved profitability.”

Fourth Quarter 2020 Financial Results

Revenues for the fourth quarter of 2020 were $48.6 million. This compares to fourth quarter 2019 revenues of $33.2 million, a growth of 46%.

Gross profit on a GAAP basis in the quarter totaled $23.3 million (47.9% of revenues), up 47% compared to a gross profit of $15.8 million (47.7% of revenues) in the fourth quarter of 2019. Gross profit on a non-GAAP basis in the quarter totaled $23.4 million (48.2% of revenues), up 47% compared to a gross profit of $15.9 million (48.0% of revenues) in the fourth quarter of 2019.

Operating profit on a GAAP basis in the quarter totaled $8.0 million (16.5% of revenues), an increase of 75% compared to an operating profit of $4.6 million (13.8% of revenues) in the fourth quarter of 2019. Operating profit on a non-GAAP basis in the quarter totaled $9.2 million (18.9% of revenues), an increase of 70% compared to $5.4 million (16.3% of revenues) in the fourth quarter of 2019.

Net income on a GAAP basis in the quarter totaled $7.7 million, or $0.18 per diluted share, compared to net income of $4.6 million, or $0.12 per diluted share, in the fourth quarter of 2019. Net income on a non-GAAP basis in the quarter totaled $8.8 million, or $0.21 per diluted share, compared to a non-GAAP net income of $5.4 million, or $0.14 per diluted share, in the fourth quarter of 2019.

Full Year 2020 Results Summary

Revenues for 2020 were $155.9 million, an increase of 16.3% over the $134.0 million reported in 2019.

Gross profit on a GAAP basis totaled $73.2 million (47.0% of revenues), an increase of 13% compared to $64.8 million (48.3% of revenues) in 2019. Gross profit on a non-GAAP basis totaled $73.7 million (47.3% of revenues), an increase of 13% compared to $65.1 million (48.6% of revenues) in 2019.

Operating income on a GAAP basis totaled $22.6 million (14.5% of revenues), compared to operating income of $22.0 million (16.4% of revenues) in 2019. Operating income on a non-GAAP basis totaled $26.8 million (17.2% of revenues), an increase of 8% compared to $25.0 million (18.7% of revenues) in 2019.

Net income on a GAAP basis totaled $21.8 million, or $0.54 per diluted share. This compares to net income of $22.0 million, or $0.57 per diluted share, in 2019. Net income on a non-GAAP basis totaled $26.0 million, or $0.64 per diluted share. This is an increase of 9% compared to net income of $23.9 million, or $0.62 per diluted share, in 2019.

Cash and cash equivalents and short-term deposits, as of December 31, 2020, were $177.8 million compared to $89.5 million as of December 31, 2019 and $106.0 million as of September 30, 2020. During the fourth quarter, the Company generated an operating cash flow of $8.3 million and raised net proceeds of $64.3 million via a public offering.

Conference Call

Camtek will host a video conference call/webinar today via Zoom, February 9, 2021, at 9:00 am ET (16:00 Israel time).

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 in the video call please visit the link in the investor relations section of Camtek’s website: http://www.camtek.com/investors/overview

Passcode: 039565

copy the following link into your browser:

https://camtek.zoom.us/s/84742466872?pwd=WWlUNnZNcjhxdkJWdnJYRi92Ukdqdz09

Passcode: 039565

For those wishing to listen via phone, please dial:

US: +1 312 626 6799 or +1 346 248 7799 or +1 646 558 8656 or +1 669 900 9128 or +1 253 215 8782 or +1 301 715 8592

Israel: +972 553 301762 or +972 3 978 6688

Webinar ID: 847 4246 6872

For those unable to participate, a recording will be available on Camtek’s website at http://www.camtek.com within a few 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 coming few quarters, 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)

	December 31,			December 31,
	2020			2019
	U.S. Dollars (In thousands)
Assets
Current assets
Cash and cash equivalents		105,815			38,047
Short-term deposits		72,000			51,500
Trade accounts receivable, net		41,001			31,443
Inventories		39,736			23,803
Other current assets		3,366			2,909
Total current assets		261,918			147,702
Fixed assets, net		20,398			18,526
Long term inventory		4,416			2,791
Deferred tax asset, net		482			746
Other assets, net		85			113
Intangible assets, net		609			491
		5,592			4,141
Total assets		287,908			170,369
Liabilities and shareholders’ equity
Current liabilities
Trade accounts payable		27,180			11,334
Other current liabilities		30,204			20,272
Total current liabilities		57,384			31,606
Long term liabilities
Other long term liabilities		3,260			2,461
		3,260			2,461
Total liabilities		60,644			34,067
Commitments and contingencies
Shareholders’ equity
Ordinary shares NIS 0.01 par value, 100,000,000 shares authorized at December 31, 2020 and at December 31, 2019;
45,365,354 issued shares at December 31, 2019 and 40,742,355 at December 31, 2019;
43,272,978 shares outstanding at December 31, 2020 and 38,649,979 at December 31, 2019		171			157
Additional paid-in capital		170,497			101,327
Retained earnings		58,494			36,716
		229,162			138,200
Treasury stock, at cost (2,092,376 as of December 31, 2020 and December 31, 2019)		(1,898	)		(1,898	)
Total shareholders' equity		227,264			136,302
Total liabilities and shareholders' equity		287,908			170,369

Camtek Ltd.

Consolidated Statements of Operations

(in thousands, except share data)

	Year ended December 31,						Three Months ended December 31,
	2020			2019			2020			2019
	U.S. dollars						U.S. dollars
Revenues		155,859			134,019			48,619			33,201
Cost of revenues		82,628			69,235			25,313			17,360
Gross profit		73,231			64,784			23,306			15,841
Research and development costs		19,575			16,331			5,623			4,440
Selling, general and administrative expense		31,032			26,481			9,658			6,813
		50,607			42,812			15,281			11,253
Operating income		22,624			21,972			8,025			4,588
Financial income (expense), net		775			801			(183	)		461
Income before income taxes		23,399			22,773			7,842			5,049
Income taxes expense		(1,621	)		(1,950	)		(176	)		(442	)
Net income from continuing operations		21,778			20,823			7,666			4,607
Discontinued operations *
Income from discontinued operations
Income before tax expense		-			1,257			-			-
Income taxes (expense)		-			(94	)		-			-
Income from discontinued operations		-			1,163			-			-
Net income		21,778			21,986			7,666			4,607

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

Net income per ordinary share:

	Year ended December 31,				Three Months ended December 31,
	2020		2019		2020		2019
	U.S. dollars				U.S. dollars
Basic earnings from continuing operation		0.55		0.55		0.19		0.12
Basic earnings from discontinued operation *	-	0.03	-	-
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Basic net earnings	0.55	0.58	0.19	0.12
Diluted earnings from continuing operation	0.54	0.54	0.18	0.12
Diluted earnings from discontinued operation *	-	0.03	-	-
Diluted net earnings	0.54	0.57	0.18	0.12
Weighted average number of
ordinary shares outstanding:
Basic	39,383	37,626	40,894	38,630
Diluted	40,372	38,432	41,964	39,497

Reconciliation of GAAP To Non-GAAP results

(In thousands, except share data)

	Year ended December 31,						Three Months ended December 31,
	2020			2019			2020			2019
	U.S. dollars						U.S. dollars
Reported net income attributable to Camtek Ltd. on GAAP basis		21,778			21,986			7,666			4,607
Share-based compensation		4,224			2,892			1,171			824
Chroma transaction expenses (1)		-			136			-			-
Attributable to discontinued operations		-			(1,163	)		-			-
Non-GAAP net income		26,002			23,851			8,837			5,431
Non–GAAP net income per diluted share		0.63			0.62			0.21			0.14
Gross margin on GAAP basis		47.0	%		48.3	%		47.9	%		47.7	%
Reported gross profit on GAAP basis		73,321			64,784			23,306			15,841
Share-based compensation		429			292			121			85
Non-GAAP gross margin		47.3	%		48.6	%		48.2	%		48.0	%
Non-GAAP gross profit		73,750			65,076			23,427			15,926
Reported operating income (loss) attributable to Camtek Ltd. on GAAP basis		22,624			21,972			8,025			4,588
Share-based compensation		4,224			2,892			1,171			824
Chroma transaction expenses (1)		-			136			-			-
Non-GAAP operating income		26,848			25,000			9,196			5,412
(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<br> expenses.
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