Camtek Ltd. (NASDAQ:CAMT) Under Earning Radar

On Wednesday, Camtek LTD. (CAMT) stock dropped -0.57% and now valued at $6.94. The stock opened the session at $7.08 and touched its highest price point at $7.09. Its recent trading capacity is 101071 shares versus to its average trading volume of 160243 shares. The company’s stock’s lowest price point for the session stood at $6.88.CAMT traded as low as $ 3.44 in the past 52 weeks, and shares hit its peak level to $7.96.

Camtek Ltd. (NASDAQ:CAMT) today reported its financial results for the quarter ended December 31, 2017. The financial results and the comparison to 2016 below include only those of the continuing operations:

Fourth Quarter 2017 Financial Results

Revenues for the fourth quarter of 2017 were $25.8 million. This compares to fourth quarter 2016 revenues of $21.5 million, a growth of 20%.

Gross profit on a GAAP and non-GAAP basis in the quarter totaled $12.3 million (47.7% and 47.8% of revenues, respectively). This is compared to $10.1 million (46.9% of revenue) on a GAAP and non-GAAP basis in the fourth quarter 2016. The variance in the non-GAAP gross margin between quarters is a function of the product and sales mix delivered in the quarter.

Operating profit on a GAAP basis in the quarter totaled $3.7 million (14.3% of revenues), compared to an operating profit of $1.1 million (5.1% of revenues) in the fourth quarter 2016.

Operating profit on a non-GAAP basis in the quarter totaled $3.8 million (14.8% of revenues), compared to $1.2 million (5.6% of revenues), in the fourth quarter 2016.

Net income on a GAAP basis in the quarter totaled $3.3 million, or $0.09 per diluted share compared to net income of $0.8 million, or $0.02 per diluted share in the fourth quarter 2016.

Net income on a non-GAAP basis in the quarter totaled $3.5 million, or $0.10 per diluted share, compared to non-GAAP net income of $0.9 million, or $0.02 per diluted share, in the fourth quarter 2016.

Cash and cash equivalents, as of December 31, 2017 were $43.7 million compared to $19.7 million as of December 31, 2016. During the quarter, Camtek received $24 million in proceeds from the sale of its PCB business and paid out $5.0 million as a dividend payment to shareholders.

Full Year 2017 Results Summary

Revenues for 2017 were $93.5 million. This compares to revenues of $79.3 million in 2016, a growth of 18%.

Gross profit on a GAAP basis totaled $45.5 million (48.7% of revenues), compared to $32.5 million (41.0% of revenues) in 2016.  The gross profit on a GAAP basis in 2016 includes a $4.9 million effect of the FIT re-organization including the write-off of inventory and other one-time expenses.

Gross profit on a non-GAAP totaled $45.6 million (48.7% of revenues), compared to $37.5 million (47.3% of revenues) in 2016.

Operating loss on a GAAP basis totaled $3.0 million, compared to operating profit of $2.0 million (2.5% of revenues) in 2016.  The operating loss in 2017 included a one-time expense of $13 million due to a settlement payment. The operating profit in 2016 included a $4.1 million expense due to the reorganization of the Printar business unit.

Operating profit on a non-GAAP basis totaled $10.4 million (11.1% of revenues), compared to $3.3 million (4.1% of revenues) in 2016.

Net income on a GAAP basis totaled $1.7 million, or $0.05 per diluted share. This compares to net income of $0.9 million, or $0.02 per diluted share, in 2016.

Net income on a non-GAAP basis totaled $9.6 million, or $0.27 per diluted share. This compares to net income of $2.3 million, or $0.06 per diluted share, in 2016.

Forward Looking Guidance:

First quarter 2018 revenues are expected to be between $26-27 million, representing a year-over-year increase of approximately 25%.  The Company expects continued double-digit growth in revenues in 2018, with overall improvement in non-GAAP operating margins.

Management Views:

Rafi Amit Camtek’s CEO stated, “We are proud to present strong financial results for 2017. The highlight of the year was the strategic steps we took of evolving into a pure-play semiconductor capital equipment company.”

Continued Mr. Amit, “We are optimistic with regards to the year ahead. Our cash and strong balance sheet put us in a strong position, which enables us to capitalize on potential growth opportunities. Furthermore, we started the year with our highest ever backlog level, and we have already seen some strong and early order momentum. Accordingly, we expect double-digit revenue growth in 2018, and combined with our strong operating leverage, we expect to enjoy a strong year of profitability.”

Analysts Updates:

CAMT stock received ratings from Financial Analysts. Recently, CAMT’s stock has been recommended as BUY from 2 and 0 given OVERWEIGHT rating for the company. 0 issued rating as a HOLD.0 said as SELL recommendations and 0 suggested UNDERWEIGHT rating. The shares have been given a mean Buy rating keeping in view the consensus of 2 Analysts.

About the Author

Kyle Webster
Kyle Webster
Kyle Webster is a self taught investor and follows the value investing approach to picking stocks. He possesses over 10 years of investment experience, an M.B.A. from Louisiana State University, and is also certified in Risk Management Assurance. Kyle is a Certified Internal Auditor, Data Miner, and author with a career broadly spanning over multiple business areas. He has exploited those observations and developed investment tactics within a fundamentally sound long-term investment strategy. He currently covers Research News category for our site. He can be reached via Email Contact -  kyle@mostvolatilestocks.com.

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