Camtek reports 47% revenue increase

Gross profit margin for the first quarter of 2008 improved to 44.5%, as compared to 41.5% for the first quarter of 2007, and 43.7% for the fourth quarter of 2007. Operating income for the first quarter of 2008 was $114 thousand (0.5% of revenues), compared with an operating loss of $4.3 million in the first quarter of 2007 and an operating income of $126 thousand (0.6% of revenues) in the prior quarter. The Company's profitability was affected by strong devaluation of the US dollar against the Israeli shekel in the first quarter of 2008, which increased Israel-based shekel costs in dollar terms. However, the company hedged its dollar/shekel exposure and subsequently reported increased financial income which compensated for the increase in expenses due to the devaluation of the dollar. Financial income in the quarter of $467 thousand, compared with $133 thousand in the first quarter of 2007 and $66 thousand in the prior quarter. Net income for the first quarter of 2008 was $493 thousand, or $0.02 per diluted share. This is compared to a net loss of $4.3 million, or $0.14 per share, in the first quarter of 2007. For the previous quarter in 2007, net income was $247 thousand, or $0.01 per diluted share. The Company reported a positive operating cash flow of $307 thousand in the quarter. As of March 31st, 2008, the Company reported a net cash and equivalents of $20.7 million as compared with $20.0 million at December 31st, 2007. The Company also announced the appointment of Roy Porat to the newly created position of General Manager at the Company's headquarters in Israel. Roy's previous role was President of Camtek HK, where he oversaw all of Camtek's activities in Asia. Aharon Sela, previously VP of Sales at Camtek Europe, was appointed to replace Mr. Porat in Camtek HK.