Camtek Ltd. announces 2002 Q4 & year end results

Q4 Revenues US$4.7 Million Within Adjusted Guidance; Loss Per Share US$(0.13)Year 2002 Revenues US$22.6 Million; Loss Per Share US$(0.39) Excluding One-Time-Charges of 1.8 Million for Inventory Write-off Due to Engineering Enhancement, or US$(0.47) Including the One-time ChargeCamtek Ltd. (Nasdaq: CAMT) announced results for the fourth quarter and twelve months ending December 31, 2002. Sales for the fourth quarter of 2002 were US$4.7 million, 36% down from US$7.3 million in the fourth quarter of 2001, and 34.6% down from US$7.2 million in the immediately preceding quarter ended September 30, 2002. Gross profit margin for the fourth quarter of 2002 was 33.9% compared to 40.6% for the fourth quarter of 2001, and 45.2% for the third quarter of 2002 excluding a one-time inventory write-off charge of US$1.8 million to account for obsolescent inventory due to engineering enhancements, or 19.9% including this charge.Net loss for the fourth quarter of 2002 was US$(3.4) million, or US$(0.13) per share, including an approximately US$0.5 million write-off of deferred tax assets. This compares with a net loss of US$(2.9) million, or US$(0.13) per share, in the fourth quarter of 2001 excluding US$0.5 million in reorganization charges, and a loss of US$(3.4) million, or US$(0.16) per share including these charges. In the third quarter of 2002, Camtek reported a net loss of US$(1.3) million, or US$(0.05) per share, excluding the US$1.8 million one-time charge, or a loss of US$(3.1) or US$(0.12) per share including this charge. Sales for the twelve months ended December 31, 2002 were US$22.6 million, 48.7% down from US$44.1 million for the twelve months ended December 31, 2001. Gross profit margin for the year 2002 was 39.6% excluding the US$1.8 million one-time charge and 31.6% including that charge, compared to 50.9% margin in 2001. Net loss for the year was US$(9.5) million, or US$(0.39) per share, excluding the US$1.8 million inventory write-off, and US$(11.3) million, or US$(0.47) per share, including this write-off. Compared to the twelve months ended December 31, 2001, net profit was US$0.47 million, or US$0.02 earnings per share, excluding one-time charges of approximately US$3.6 million for the acquisition of Inspectech Ltd. and approximately US$0.5 million for reorganization charges, and a loss of US$(3.7) million, or US$(0.17) per share including these charges."2002 was a tough year for Camtek, as it was for almost everybody else in the industry," said Rafi Amit, Camtek's Chief Executive Officer. "Camtek entered 2002 with an expanded portfolio of new products for its traditional PCB market, as well as for two new industries -- Microelectronics and Semiconductor Packaging. While the overall market response to the new products was positive, sales in the two new industries were still insignificant. This can be attributed in part to the need for extended market education, which resulted in long evaluation periods, and to required adjustments in product features and capabilities." Mr. Amit continued: "We are convinced of the long-term potential of these markets. History teaches us that companies that enhanced their offerings during a recession became dominant players during recovery. Following this belief, we have made a strategic decision to continue investing R&D resources in these products, while taking ongoing measures to further reduce our expenses."Mr. Amit added: "The upward trend, which we saw in our results during the first three quarters of the year, reversed direction in the fourth quarter. However, we believe that this decrease in revenues is a result of order and delivery rescheduling, not a decline in business level. This assumption is supported by a strong backlog for the first quarter of 2003. We estimate our revenues for this quarter to be higher than those for the fourth quarter of 2002, between US$5.5 and 6.2 million. For the longer term, visibility is still very limited and the markets are sending mixed signals. We are optimistic about a likely turning point sometime in 2003, but are managing the company as if the recession will continue longer."Camtek also informed that on March 20, 2003, the Israeli Securities Authority's staff's position, as conveyed to Camtek orally, is that, following the transfer of Camtek's securities to the Nasdaq - SmallCap Market (SCM), Camtek is required to provide disclosure in Israel in accordance with the provisions of Chapter F of the Securities law, 1968 (similar to the requirements of a company listed only on the Tel Aviv Stock Exchange). Based on the advice of its Israeli legal counsel, Camtek believes that, notwithstanding the transfer of its securities to the Nasdaq SmallCap Market, it may continue to report in accordance with the provisions of Chapter E3 of the Securities Law.Source: PCBnewsline