Camtek shows great results

The company reported near-record revenues for the fourth quarter of 2005 at $19.4 million, up 10% from $17.6 million in the fourth quarter of 2004, and sequentially up 10% from $17.7 million in the quarter ended September 30, 2005. Gross profit margin for the fourth quarter of 2005 was 49.5% compared to 53.7% for the fourth quarter of 2004, and 48.2% for the third quarter of 2005. Net profit for the fourth quarter of 2005 was $2.1 million, or $0.07 per share. This compares to a net profit of $3.0 million, or $0.11 per share, in the fourth quarter of 2004. For the third quarter of 2005, net profit was $1.5 million, or $0.06 per share. Revenues for the twelve-month period ended December 31, 2005 were $63million, down 6.5% from $67.4 million for the twelve-month period ended December 31, 2004. Gross profit margin for the year 2005 was 48.0%, compared to a 53.5% margin in 2004. Net profit for the twelve-month period ended December 31, 2005 was $2.7 million or $0.10 per share, compared to $10.8 million, or $0.39 per share for the twelve-month period ended December 31, 2004. Rafi Amit, Camtek's CEO, commented, "2005 was a good year for us in spite of its slow start. It marked our breakthrough into the semiconductor manufacturing and packaging industry with Falcon sales reaching $19.8 million. In the fourth quarter alone, revenues from Falcon sales reached $9.1 million. We carried out our ambitious penetration plan and won orders from major semiconductor firms worldwide, including 6 of the top-15 manufacturers. These customers chose the Falcon predominantly for its performance and for Camtek's responsiveness to their needs. Qualification by such corporations with their multiple sites represents a significant potential for follow-on orders with a shorter selling cycle." Mr. Amit added, "In the PCB market, which is still a core business for us, we maintained a strong market position during 2005 in spite of the fierce competition. We expect an increase in demand in the coming quarters, especially from manufacturers of IC high-density (HDI) substrates and fine-line circuits. We continue to invest R&D efforts in developing advanced capabilities and applications for these segments, where margins are higher and our technological advantages provide us with a greater competitive edge." Mr. Amit concluded, "2006 has started stronger than anticipated in both our core markets. We are therefore adjusting our previous first quarter revenue guidance upward from $20-23 million to $22-24 million. Moreover, our strong pipeline and the market feedback we receive, allow us to increase our revenue guidance for the year 2006 from $85-95 million to $90-100 million. We believe that most of the expected growth will come from the semiconductor manufacturing and packaging industry, while our revenues from the PCB industry should grow moderately." The company is also announcing that as of March 19, 2006, Mrs. Ronit Dulberg will replace Mr. Moshe Amit as Chief Financial Officer of the Company. Moshe Amit will maintain his current position as Executive Vice President and will handle various tasks as an active member of Camtek's senior management. Rafi Amit said, "We welcome Mrs. Dulberg to Camtek. Joining us at a time of rapid growth, Ronit's skills and vast experience will undoubtedly help her become a major contributor in leading the company toward its goals. Previously, Ronit was Vice President of Finance for Creo Israel, Deputy Managing Director of Finance and Logistics at Micro Swiss Ltd., and CFO for Siemens Data Communication, an Israeli subsidiary of Siemens. Ronit is a CPA, holds a BA in Economics and Accounting, as well as LLM."