Camtek announces record Q1 results - revenues of $24.9 Million, net income of $4.4 Million, up 115% sequentially

Adjusts 2006 revenue guidance upwards to $100 - 110 Million

Camtek Ltd. (NASDAQ: CAMT) announced results for the first quarter ended March 31, 2006.

Highlights of the first quarter
    - Achieved record revenues of $24.9 million, a 28% sequential growth.
    - Record net income reaching $4.4 million, a 115% sequential increase.
    - Strong growth in gross, operating and net margins.

Revenues for the first quarter of 2006 were $24.9 million, 172% above the $9.1 million as reported in the first quarter of last year, and sequentially up 28% from the $19.4 million as reported in the fourth quarter of 2005.

Gross profit for the first quarter of 2006 was $13.1 million, representing a gross margin of 52.5%. This is compared with gross profit of $3.8 million or gross margin of 41.2%, as reported in the first quarter of last year and gross profit of $9.6 million, or gross margin of 49.5% as reported in the fourth quarter of 2005.

Operating profit for the first quarter of 2006 was $4.4 million representing an operating margin of 17.8%, and was up 120% from the operating profit of $2.1 million or 10.8% operating margin as reported in the prior quarter. In the first quarter of last year, the Company reported an operating loss of $2.0 million.

First quarter net income was $4.4 million or 16 cents per diluted share, representing a net margin of 17.8%. This compares with a net loss of $2.4 million, or 9 cents loss per diluted share as reported in the first quarter of 2005. First quarter 2006 net income grew by 115% over fourth quarter 2005 net income of $2.1 million, or 7 cents per share, which represented a net margin of 10.6%.