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Exhibit 99.1

 

Camtek Ltd.
and its Subsidiaries

 

Interim Condensed Consolidated Financial Statements
As of June 30, 2022
(Unaudited)
 
 
Camtek Ltd. and its Subsidiaries
 
Interim Unaudited Condensed Consolidated Financial Statements as at June 30, 2022
 
Contents
 
 
Page
  
F-3
  
F-4 to F-5
  
F-6
  
F-7 to F-8
  
F-9 to F-15

 

F - 2

 
Camtek Ltd. and its Subsidiaries
 
Interim Unaudited Condensed Consolidated Balance Sheets
 
         
June 30,
    
December 31,
  
         
2022
    
2021
  
   
Note
    
U.S. Dollars (in thousands)
  
Assets
                  
                   
Current assets
                  
Cash and cash equivalents
    
4A
      
56,041
      
241,943
  
Short-term deposits
            
335,000
      
156,000
  
Trade accounts receivable, net
            
73,114
      
57,825
  
Inventories
    
4B
      
70,075
      
58,759
  
Other current assets
    
4C
      
7,497
      
5,653
  
                         
Total current assets
            
541,727
      
520,180
  
                         
Long term deposits
            
47,000
      
32,000
  
Long term inventory
    
4B
      
4,878
      
5,150
  
Deferred tax assets
            
117
      
227
  
Other assets
            
427
      
190
  
Property, plant and equipment, net
    
4D
      
30,419
      
25,400
  
Intangible assets, net
    
4E
      
584
      
610
  
                         
Total non-current assets
            
83,425
      
63,577
  
                         
Total assets
            
625,152
      
583,757
  
                         
Liabilities and shareholders’ equity
                        
                         
Current liabilities
                        
Trade accounts payable
            
35,135
      
33,550
  
Other current liabilities
    
4F
      
51,130
      
56,137
  
                         
Total current liabilities
            
86,265
      
89,687
  
                         
Long term liabilities
                        
Other long-term liabilities
            
6,915
      
5,800
  
Convertible notes
            
195,190
      
194,643
  
             
202,105
      
200,443
  
                         
Total liabilities
            
288,370
      
290,130
  
                         
Shareholders’ equity
                        
Ordinary shares NIS 0.01 par value, 100,000,000 shares authorized at June 30, 2022 and at December 31, 2021;
                        
46,355,859 issued shares at June 30, 2022 and 45,939,019 at December 31, 2021;
                        
44,263,483 shares outstanding at June 30, 2022 and 43,846,643 at December 31, 2021;
    
3
      
172
      
172
  
Additional paid-in capital
            
182,176
      
176,582
  
Retained earnings
            
156,332
      
118,771
  
             
338,680
      
295,525
  
Treasury stock, at cost (2,092,376 shares as of June 30, 2022 and December 31, 2021)
            
(1,898
)
    
(1,898
)
                         
Total shareholders' equity
            
336,782
      
293,627
  
                         
Total liabilities and shareholders' equity
            
625,152
      
583,757
  
 
The accompanying notes are an integral part of these interim unaudited condensed consolidated financial statements.
 

F - 3

 
Camtek Ltd. and its Subsidiaries

 

Interim Unaudited Condensed Consolidated Statements of Operations
(In thousands, except per share data)
 
         
Six months ended
June 30,
    
Year ended
December 31,
  
         
2022
    
2021
    
2021
  
   
Note
    
U.S. dollars
    
U.S. dollars
  
Revenues
          
156,744
      
124,802
      
269,659
  
Cost of revenues
          
76,693
      
60,831
      
132,315
  
                               
Gross profit
          
80,051
      
63,971
      
137,344
  
                               
Research and development costs
          
15,199
      
11,244
      
23,473
  
Selling, general and
                              
  administrative expenses
  
5A
      
24,451
      
21,288
      
42,973
  
           
39,650
      
32,532
      
66,446
  
                               
Operating income
          
40,401
      
31,439
      
70,898
  
                               
Financial income, net
  
5B
      
860
      
562
      
1,030
  
                               
Income before income taxes
          
41,261
      
32,001
      
71,928
  
                               
Income tax expense
          
(3,700
)
    
(2,989
)
    
(11,651
)
                               
Net income
          
37,561
      
29,012
      
60,277
  
 

F - 4

 
Camtek Ltd. and its Subsidiaries
 
Interim Unaudited Condensed Consolidated Statements of Operations (contd.)
Net income per ordinary share:
 
         

Six months ended

June 30,

    

Year ended

December 31,

  
         
2022
    
2021
    
2021
  
   
Note
    
U.S. dollars
    
U.S. dollars
  
                         
Basic net earnings per share
          
0.86
      
0.67
      
1.38
  
                               
Diluted net earnings per share
          
0.78
      
0.60
      
1.34
  
                               
Weighted average number of
                              
  ordinary shares outstanding
                              
  (in thousands):
                              
                               
Basic
          
43,929
      
43,450
      
43,644
  
                               
Diluted
          
48,150
      
44,612
      
45,035
  

The accompanying notes are an integral part of these interim unaudited condensed consolidated financial statements.
 

F - 5

 
Camtek Ltd. and its Subsidiaries

 

Interim Unaudited Condensed Consolidated Statements of Shareholders’ Equity

 

   
Ordinary Shares
    
Number of
          
Additional
          
Total
  
   
NIS 0.01 par value
    
Treasury
    
Treasury
    
paid-in
    
Retained
    
shareholders'
  
   
Number of
    
U.S. Dollars
    
Shares
    
Shares
    
earnings
    
earnings
    
equity
  
   
Shares Issued
    
(in thousands)
          
U.S. Dollars (in thousands)
  
Balances at
                                          
December 31, 2020
    
45,365,354
      
171
      
(2,092,376
)
    
(1,898
)
    
170,497
      
58,494
      
227,264
  
                                                         
Share-based
                                                        
 compensation
                                                        
 expense
    
-
      
-
      
-
      
-
      
2,681
      
-
      
2,681
  
Exercise of share
                                                        
 options and RSUs
    
439,508
      
1
      
-
      
-
      
205
      
-
      
206
  
Net income
    
-
      
-
      
-
      
-
      
-
      
29,012
      
29,012
  
                                                         
Balances at
                                                        
June 30, 2021
    
45,804,862
      
172
      
(2,092,376
)
    
(1,898
)
    
173,383
      
87,506
      
259,163
  
                                                         
Share-based
                                                        
 compensation
                                                        
 expense
    
-
      
-
      
-
      
-
      
3,134
      
-
      
3,134
  
Exercise of share
                                                        
 options and RSUs
    
134,157
      
*
      
-
      
-
      
65
      
-
      
65
  
Net income
    
-
      
-
      
-
      
-
      
-
      
31,265
      
31,265
  
Balances at
                                                        
December 31, 2021
    
45,939,019
      
172
      
(2,092,376
)
    
(1,898
)
    
176,582
      
118,771
      
293,627
  
                                                         
Share-based
                                                        
 compensation
                                                        
 expense
    
-
      
-
      
-
      
-
      
5,592
      
-
      
5,592
  
Exercise of share
                                                        
 options and RSUs
    
416,840
      
*
      
-
      
-
      
2
      
-
      
2
  
Net income
    
-
      
-
      
-
      
-
      
-
      
37,561
      
37,561
  
                                                         
Balances at
                                                        
June 30, 2021
    
46,355,859
      
172
      
(2,092,376
)
    
(1,898
)
    
182,176
      
156,332
      
336,782
  
 
The accompanying notes are an integral part of these interim unaudited condensed consolidated financial statements.

 

F - 6

 

Camtek Ltd. and its Subsidiaries

 

Interim Unaudited Condensed Consolidated Statements of Cash Flows
(In thousands)
 
   
Six months ended
June 30,
    
Year ended
December 31,
  
   
2022
    
2021
    
2021
  
   
U.S. dollars
    
U.S. dollars
  
Cash flows from operating activities:
                  
Net income
    
37,561
      
29,012
      
60,277
  
Adjustments to reconcile net income to net
                        
cash provided by operating activities:
                        
Depreciation and amortization
    
1,849
      
1,278
      
2,811
  
Deferred tax expense
    
110
      
668
      
255
  
Amortization of debt issuance costs
    
547
      
-
      
113
  
Loss on disposal of fixed assets
    
-
      
31
      
4
  
Share based compensation expense
    
5,592
      
2,681
      
5,815
  
Change in provision for doubtful debts
    
-
      
(33
)
    
(32
)
                         
Changes in operating assets and liabilities:
                        
Trade accounts receivable, gross
    
(14,252
)
    
(19,234
)
    
(17,338
)
Inventories
    
(13,512
)
    
(15,182
)
    
(21,702
)
Due from related parties, net
    
(2
)
    
(12
)
    
(12
)
Other assets
    
(2,079
)
    
(1,067
)
    
(2,380
)
Trade accounts payable
    
1,244
      
6,040
      
6,190
  
Other current liabilities
    
(4,111
)
    
18,440
      
26,956
  
                         
Net cash provided by operating activities
    
12,947
      
22,622
      
60,957
  
                         
Cash flows from investing activities:
                        
Investment in short-term deposits
    
(179,000
)
    
(37,000
)
    
(84,000
)
Investment in long-term deposits
    
(15,000
)
    
(10,000
)
    
(32,000
)
Purchase of fixed assets
    
(3,786
)
    
(1,268
)
    
(4,065
)
Purchase of intangible assets
    
(28
)
    
(45
)
    
(111
)
                         
Net cash used in investing activities
    
(197,814
)
    
(48,313
)
    
(120,176
)
                   
Cash flows from financing activities:
                  
Proceeds from exercise of share options
    
2
      
206
      
271
  
Issuance of convertible notes, net
    
-
      
-
      
194,530
  
                         
Net cash provided by financing activities
    
2
      
206
      
194,801
  
Effect of change in exchange rate on cash and cash equivalents
    
(1,037
)
    
9
      
546
  
                         
Net increase (decrease) in cash and cash
                        
equivalents
    
(185,902
)
    
(25,476
)
    
136,128
  
Cash and cash equivalents at beginning of
                        
the period
    
241,943
      
105,815
      
105,815
  
                         
Cash and cash equivalents at end of the
                        
period
    
56,041
      
80,339
      
241,943
  
 
The accompanying notes are an integral part of these interim unaudited condensed consolidated financial statements.

 

F - 7

 

Camtek Ltd. and its Subsidiaries

 

Interim Unaudited Condensed Consolidated Statements of Cash Flows
(In thousands)
 
   
Six months ended
June 30,
    
Year ended
December 31,
  
   
2022
    
2021
    
2021
  
   
U.S. dollars
    
U.S. dollars
  
Supplementary cash flows information:
                  
Income taxes paid
    
454
      
153
      
558
  
Interest received
    
1,030
      
-
      
1,057
  
Lease payments
    
689
      
481
      
1,060
  
Non-cash transactions:
                        
Fixed assets purchased with supplier credit
    
680
      
321
      
339
  
 
The accompanying notes are an integral part of these interim unaudited condensed consolidated financial statements.

 

F - 8

 

Camtek Ltd. and its Subsidiaries

 

Notes to the Interim Unaudited Condensed Consolidated Financial Statements
(Amounts in thousands, except per share data)
 
Note 1 - Nature of Operations
 
  A.
Camtek Ltd. (“Camtek” or the “Company”), an Israeli corporation, is jointly controlled 21.0% by Priortech Ltd., an Israeli corporation listed on the Tel-Aviv Stock Exchange and 17.7% by Chroma Ate Inc., a Taiwanese company (“Chroma”). Camtek provides automated and technologically advanced solutions dedicated to enhancing production processes, increasing product yield and reliability, and enabling and supporting customers’ latest technologies in the semiconductor fabrication industry.
 
  B.
As detailed in the annual financial statements as of December 31, 2021, since January 2020, the Covid-19 outbreak has dramatically expanded into a worldwide pandemic creating macro-economic uncertainty and disruption in the business and financial markets. At present, business activity is continuing at all of the Company’s locations, with new routines implemented as required by local Covid-19 regulations.
 
From the beginning of the outbreak, the Company has been carefully managing the risks and its global operations. The Israeli facility has been able to maintain its required production levels. Worldwide, the Company has benefitted from its strategy of having in place local professional teams in each of its territories that can independently install and support systems. As such, the Company has been able to deliver most of its orders on time and the impact of the Covid-19 pandemic on the its business activity has not been significant.

 

F - 9

 

Camtek Ltd. and its Subsidiaries

 

Notes to the Interim Unaudited Condensed Consolidated Financial Statements

(Amounts in thousands, except per share data)

 
Note 2 - Basis of Preparation

 

A.          Statement of compliance
 
Except as described below, the accounting policies applied in these interim financial statements are the same as those applied in the Company’s 2021 annual audited consolidated financial statement for the year ended December 31, 2021.
 
The accompanying unaudited condensed consolidated interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and do not include all of the information required for full annual financial statements. The unaudited condensed consolidated interim statements should be read in conjunction with the Company’s 2021 annual audited consolidated financial statements and footnotes, which were filed with the U.S. Securities and Exchange Commission as part of the Company’s Annual Report on Form 20-F for the year ended December 31, 2021.
 
In the opinion of management of the Company, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the six-month period ended June 30, 2022 are not necessarily indicative of the results that may be expected for the year ended December 31, 2022 or for any other future period.

 

F - 10

 

Camtek Ltd. and its Subsidiaries

 

Notes to the Interim Unaudited Condensed Consolidated Financial Statements

(Amounts in thousands, except per share data)

 
Note 3 - Shareholders’ Equity

 

A.          General
 
The Company’s shares are traded on the NASDAQ Global Market under the symbol “CAMT”, and also listed and traded on the Tel-Aviv stock exchange
 
B.          Changes in Stock Options and RSUs
 
The number of stock options exercised in the six-month period ended June 30, 2022, was 416,840.
 
In the first six months of 2022, 602,540 restricted share units (RSUs) were granted by the Company. The RSUs vest over a four-year period.

 

C.          Share-based Compensation Expense

 

The total share-based compensation expense amounted to $5,592, $2,681, and $5,815 for the six-month periods ended June 30, 2022 and 2021 and the year ended December 31, 2021, respectively.

 

F - 11

 

Camtek Ltd. and its Subsidiaries

 

Notes to the Interim Unaudited Condensed Consolidated Financial Statements

(Amounts in thousands, except per share data)

 

Note 4 - Supplementary Financial Statements Information
 
A.          Cash and cash equivalents
 
The Company’s cash and cash equivalent balance at June 30, 2022 and December 31, 2021 is denominated in the following currencies:
 
   
June 30,
    
December 31,
  
   
2022
    
2021
  
   
U.S. Dollars (in thousands)
  
US Dollars
    
32,542
      
225,283
  
New Israeli Shekels
    
21,563
      
13,566
  
Other currencies
    
1,936
      
3,094
  
                 
     
56,041
      
241,943
  
 
Short-term deposits are bank deposits in US Dollars with terms at the investment date of 3-12 months with average annual interest rates of 1.11%.
 
B.         Inventories

 
   
June 30,
    
December 31,
  
   
2022
    
2021
  
   
U.S. Dollars (in thousands)
  
Components
    
41,852
      
33,212
  
Work in process
    
15,457
      
12,688
  
Finished products (including systems at customer locations not yet sold)
    
17,644
      
18,009
  
                 
     
74,953
      
63,909
  
 
Inventories are presented in:
 
    June 30,    
December 31,
  
    2022    
2021
  
   
U.S. Dollars (in thousands)
  
Current assets
    
70,075
      
58,759
  
Long-term assets
    
4,878
      
5,150
  
                 
     
74,953
      
63,909
  

 

F - 12

 

Camtek Ltd. and its Subsidiaries

 

Notes to the Interim Unaudited Condensed Consolidated Financial Statements

(Amounts in thousands, except per share data)

 

Note 4 - Supplementary Financial Statements Information (cont’d)
 
C.          Other Current Assets

 
   
June 30,
    
December 31,
  
   
2022
    
2021
  
   
U.S. Dollars (in thousands)
  
Due from Government institutions
    
2,639
      
2,623
  
Interest receivable
    
1,638
      
463
  
Prepaid expenses
    
2,380
      
2,025
  
Other
    
840
      
542
  
                 
     
7,497
      
5,653
  
 
D.         Property, Plant and Equipment, Net

 
    June 30,     December 31,  
    2022     2021  
   
U.S. Dollars (in thousands)
  
Land
    
863
      
863
  
Building
    
16,444
      
15,208
  
Machinery and equipment
    
17,855
      
13,911
  
Office furniture and equipment
    
943
      
881
  
Computer equipment and software
    
6,377
      
5,383
  
Automobiles
    
396
      
479
  
Leasehold improvements
    
1,718
      
1,642
  
Right of use assets
    
5,626
      
4,969
  
     
50,222
      
43,336
  
                 
Less accumulated depreciation
    
19,803
      
17,936
  
                 
     
30,419
      
25,400
  

 

F - 13

 

Camtek Ltd. and its Subsidiaries

 

Notes to the Interim Unaudited Condensed Consolidated Financial Statements

(Amounts in thousands, except per share data)

 

Note 4 - Supplementary Financial Statements Information (cont’d)
 
E.          Intangible Assets, Net
 
   
June 30,
    
December 31,
  
   
2022
    
2021
  
   
U.S. Dollars (in thousands)
  
Patent registration costs
    
2,067
      
2,038
  
                 
Accumulated amortization and impairment
    
1,483
      
1,428
  
                 
Total intangible assets, net
    
584
      
610
  
 
F.          Other Current Liabilities
 
   
June 30,
    
December 31,
  
   
2022
    
2021
  
   
U.S. Dollars (in thousands)
  
Commissions
    
19,256
      
15,967
  
Advances from customers and deferred revenues
    
11,757
      
10,837
  
Accrued employee compensation and related benefits
    
9,682
      
10,923
  
Accrued warranty costs
    
3,095
      
3,265
  
Government institutions and income tax payable
    
4,017
      
11,566
  
Accrued expenses
    
2,283
      
2,561
  
Operating lease obligations
    
1,040
      
1,018
  
                 
     
51,130
      
56,137
  

 

F - 14

 

Camtek Ltd. and its Subsidiaries

 

Notes to the Interim Unaudited Condensed Consolidated Financial Statements

(Amounts in thousands, except per share data)

 

Note 5 - Statements of Operations

 
  A.
Selling, general and administrative expenses
 
   
Six months ended
June 30,
    
Year ended
December 31,
  
   
2022
    
2021
    
2021
  
   
U.S. Dollars (in thousands)
  
Selling (1)
    
18,840
      
16,635
      
33,614
  
General and administrative
    
5,611
      
4,653
      
9,359
  
                         
     
24,451
      
21,288
      
42,973
  
(1)        Including shipping and handling costs
    
980
      
840
      
1,867
  
 
B.          Financial income (expenses), net
 
   
Six months ended
June 30,
    
Year ended
December 31,
  
   
2022
    
2021
    
2021
  
   
U.S. Dollars (in thousands)
  
Interest income
    
2,488
      
561
      
1,408
  
Amortization of issuance costs of convertible notes
    
(547
)
    
-
      
(113
)
Other, net (1)
    
(1,081
)
    
1
      
(265
)
                         
     
860
      
562
      
1,030
  

(1)        Including foreign currency expense resulting from transactions not denominated in U.S. Dollars

    
(871
)
    
151
      
(351
)

 

F- 15