Camtek Announces Second Quarter 2009 Financial Results

34% Sequential Revenue Increase From First Quarter 2009; Substantially Narrows Operating and Net Loss Compared to First Quarter 2009

MIGDAL HAEMEK, Israel, August 12 -- Camtek Ltd. (NASDAQ and TASE: CAMT), today announced its financial results for the second quarter ended June 30, 2009.

Revenues for the second quarter of 2009 increased 34% to $12.5 million, compared to $9.3 million in the first quarter of 2009. Revenues in the second quarter last year totaled $22.7 million.

Gross profit for the second quarter totaled $4.2 million, a 21% increase compared to the $3.5 million gross profit in the first quarter of 2009. Gross profit for the second quarter of 2008 totaled $8.8 million. Gross margin for the second quarter of 2009 totaled 34%, compared to 37% in the first quarter of 2009 and 38.9% in the second quarter of 2008.

Operating loss for the second quarter of 2009 totaled $2.1 million, compared to the $5.0 million operating loss in the prior quarter. Operating loss in the second quarter 2008 totaled $0.5 million.

Net loss for the second quarter of 2009 totaled $2.1 million, or $0.07 per share, compared to $5.5 million, or $0.19 per share in the prior quarter. Net loss for the second quarter last year totaled $0.5 million, or $0.02 per share.

Cash and cash equivalents at June 30, 2009, totaled $12.0 million compared to $11.4 million at the end of March 31, 2009 and $14.4 million net, at the end of December 31, 2008.

"During the second quarter we recognized a sequential increase in revenues and gross profit, while narrowing both our operating and net loss. Furthermore, we managed our cash resources, through prudent expense management, directly attributed to the deep restructuring measures implemented during the first quarter," said Rafi Amit, Camtek's CEO. "Looking ahead, despite the tough business environment we operate in, we continue to invest in R&D, in order to improve performances of our current product lines, as well as to develop new products. We estimate that revenues in the third quarter will be slightly higher than those of the second quarter."

Conference Call

Camtek will host a conference call today, August 12, at 10:30 am EDT. Roy Porat, General Manager Camtek Israel and Mira Rosenzweig, Chief Financial Officer 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 at least 10 minutes before the start of the call, referencing the "Camtek second quarter 2009 results conference call".

    
    US:               1-866-744-5399   at 10:30 am Eastern Time
    Israel:           03-918-0687      at 5:30 pm Israel Time
    International:    +972-3-918-0687

For those unable to participate, the teleconference will be available for replay on Camtek's website at http://www.camtek.co.il/ beginning 24 hours after the call.

ABOUT CAMTEK LTD.

With headquarters in Migdal Ha'Emek Israel, Camtek Ltd., designs, develops, manufactures, and markets automatic optical inspection systems and related products. Camtek's automatic inspection systems are used to enhance both production processes and yield for manufacturers in the printed circuit board industry, the high density interconnect substrate industry and the semiconductor manufacturing and packaging industry. This press release is available at 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, price reductions, litigation risks, as well as due to risks identified in the documents filed by the Company with the SEC.

    
    
                                                              Camtek Ltd.
    Consolidated Balance Sheets
    (In thousands)

                                                     June 30,    December 31,
                                                        2009          2008
                                                     Unaudited       Audited   
                                                           U.S. Dollars 
                                                          (In thousands)
    
    Assets
 
    Current assets
    Cash and cash equivalents                            12,029     15,949
    Accounts receivable, net                             16,417     18,156
    Inventories                                          13,915      9,792
    Due from affiliates                                     353        414
    Other current assets                                  1,685      1,929
    Deferred tax asset                                       39         39
 
    Total current assets                                 44,438     46,279
 
    Fixed assets, net                                    16,335     15,648
 
    Long term inventory                                  10,693     21,653
    Deferred tax asset                                      127        127
    Other assets, net (*)                                 4,694      1,028
 
                                                         15,514     22,808
 
    Total assets                                         76,287     84,735
 
    Liabilities and shareholder's equity
 
    Current liabilities
    Short term loan                                           -      1,500
    Accounts payable trade                                2,225      5,240
    Due to affiliates                                       104        294
    Convertible loan - current portion                    1,667      1,667
    Other current liabilities                            11,256     11,382
 
    Total current liabilities                            15,252     20,083
 
    Long term liabilities
    Convertible loan net of current portion               1,666      1,666
    Other long term liabilities (*)                       3,822          -
    Liability for employee severance benefits               264        271
 
    Total liabilities                                    21,004     22,020
 
    Commitments and contingencies
 
    Shareholders' equity
    Ordinary shares NIS 0.01 par value, authorized
    100,000,000 shares,
    issued 31,227,484 in 2008 and 31,272,318 in 2009,
    outstanding
    29,135,108 in 2008 and 29,178,942 in 2009.              132        132
    Additional paid-in capital                           60,251     60,149
    Retained earnings (losses)                           (3,202)     4,332
                                                         57,181     64,613
    Treasury stock, at cost (2,092,376 shares
     in 2008 and 2009)                                   (1,898)    (1,898)

    Total shareholders' equity                           55,283     62,715
 
    Total liabilities and shareholders' equity           76,287     84,735

    (*) The increase relates to Printar acquisition

    
                                                                  Camtek Ltd.
    Consolidated Statements of Operations
    (In thousands, except share data)

                             Six Months ended  Three Months ended  Year ended
                                 June 30,         June 30,        December 31,
                               2009    2008     2009      2008       2008
                            Unaudited Unaudited Unaudited Unaudited  Audited
                              U.S. dollars     U.S. dollars      U.S. dollars

    Revenues                 21,798   43,945  12,510    22,653     75,463
    Cost of revenues         14,146   25,649   8,319    13,834     47,615
 
    Gross profit              7,652   18,296   4,191     8,819     27,848
 
    Research and development
     costs                    4,896    6,340   2,309     3,345     12,801
    Selling, general and
     administrative
     expenses                 9,864   12,329   4,008     5,961     24,834
 
                             14,760   18,669   6,317     9,306     37,635
 
    Operating loss           (7,108)    (373) (2,126)     (487)    (9,787)
 
    Financial income
     (expenses), net           (281)     522      96        56      1,000
 
    Income (loss) before income
     taxes                   (7,389)     149  (2,030)     (431)    (8,787)
 
    Income tax                 (145)    (154)    (52)      (67)      (770)
 
    Net loss                 (7,534)      (5) (2,082)     (498)    (9,557)
 
    Net loss per ordinary share:
 
    Basic                     (0.26)       -   (0.07)    (0.02)     (0.32)
 
    Diluted                   (0.26)       -   (0.07)    (0.02)     (0.32)
 
    Weighted average number of
    ordinary shares outstanding:
 
    Basic                    29,209   30,249  29,212    30,250     29,916
 
    Diluted                  29,209   30,249  29,212    30,250     29,916

    
    Contact Details:
    CAMTEK
    Mira Rosenzweig CFO 
    Tel: +972-4-604-8308
    Fax: +972-4-604 8300
    Mobile: +972-54-9050703
    mirar@camtek.co.il

    IR INTERNATIONAL
    GK International IR
    Ehud Helft / Kenny Green
    Tel: (US) +1-646-201-9246
    info@gkir.com

    Web site: http://www.camtek.co.il

Contact Details: CAMTEK: Mira Rosenzweig CFO, Tel: +972-4-604-8308, Fax: +972-4-604 8300, Mobile: +972-54-9050703, mirar@camtek.co.il. IR INTERNATIONAL: GK International IR, Ehud Helft / Kenny Green, Tel: (US) +1-646-201-9246, info@gkir.com.