Camtek Ltd. — Interim / Quarterly Report 2009

Nov 11, 2009

Camtek Ltd. P.O.Box 544, Ramat Gabriel Industrial Park Migdal Ha’Emek 23150, ISRAEL Tel: +972 (4) 604-8100 Fax: +972 (4) 644-0523 E-Mail: Info@camtek.co.il Web site: http://www.camtek.co.il

11-11-09

Contact Details

CAMTEK Mira Rosenzweig CFO Tel: +972-4-604-8308 Fax: +972-4-604 8300 Mobile: +972-54-9050703 mirar@camtek.co.il

IR INTERNATIONAL GK International IR Ehud Helft / Kenny Green Tel: (US) 1 646 201 9246 info@gkir.com

FOR IMMEDIATE RELEASE

CAMTEK ANNOUNCES SEQUENTIAL GROWTH IN REVENUES AND GROSS PROFIT IN THIRD QUARTER 2009

16% sequential revenue increase from second quarter 2009; 45% sequential increase in gross profit

MIGDAL HAEMEK, Israel – November 11, 2009 – Camtek Ltd. (NASDAQ and TASE: CAMT), today announced its financial results for the third quarter ended September 30, 2009.

Main Financial Highlights:

• Gross margin increased to 42%, up from 34% in second quarter 2009

• Operating and net loss narrowed substantially compared to prior quarter

• Cash and cash equivalents balance increase $1.8 million during the quarter

Third Quarter Financial Results:

Revenues for the third quarter of 2009 increased 16% to $14.5 million, compared to $12.5 million in the second quarter of 2009. Revenues in the third quarter last year totaled $19.1 million.

Gross profit for the third quarter totaled $6.1 million, a 45% increase compared to the $4.2 million gross profit in the second quarter of 2009. Gross profit for the third quarter of 2008 totaled $6.5 million. Gross margin for the third quarter of 2009 totaled 42%, compared to 34% in the second quarter of 2009 and 34% in the third quarter of 2008. The higher gross margin in the third quarter resulted from a more favorable product and service mix as compared to the prior quarter. Gross margin for the third quarter of 2008 included an inventory write-off of $1.5 million compared to a $0.5 million write-off this quarter.

Operating loss for the third quarter of 2009 narrowed substantially to $180 thousand, compared to the $2.1 million operating loss in the prior quarter. Operating loss in the third quarter of 2008 totaled $3.8 million.

Net loss for the third quarter of 2009 totaled $0.33 million, or $0.01 per share, compared to $2.1 million, or $0.07 per share in the prior quarter. Net loss for the third quarter last year totaled $4.1 million, or $0.14 per share.

Cash and cash equivalents at September 30, 2009, totaled $13.8 million compared to $12 million at June 30, 2009. The increase in cash during the quarter resulted primarily from a decrease in inventory levels and from improved customer collections.

Rafi Amit, Camtek’s CEO, commented on the results and the quarter: “This quarter we continued to improve our results, as we return to generating long term growth. In this quarter we witnessed an increase in revenues both in the Printed Circuit Board and semiconductor optical inspection markets , driven by increased order generation, contributing to a higher gross profit and a

narrowing of both our operating and net loss. Furthermore our prudent expense management and more favorable product mix enabled us to further expand margins to our historic range. Our very tight rein on expenses also enabled us to increase our cash balance during the quarter, ending the quarter with close to $14 million in cash. Looking ahead, as we enter the fourth quarter and near 2010, we are cautiously optimistic, witnessing increasingly positive indications from customers, primarily in the Asia region. We continue to steadily invest in R&D with a view to growing and expanding our standing in each of our primary markets, as well as to introduce new innovative products. We estimate that revenues in the fourth quarter will be $15 to $17 million.

Conference Call

Camtek will host a conference call today, November 11, at 10:00 am EDT. Roy Porat, General Manager Camtek Israel and Mira Rosenzweig, Chief Financial Officer will host the call and will be available to answer questions after presenting the results.

To participate, please call one of the following telephone numbers at least 10 minutes before the start of the call, referencing the “Camtek third quarter 2009 results conference call”.

US: 1 888 668 9141 at 10:00 am Eastern Time Israel: 03 918 0650 at 5:00 pm Israel Time International: +972 3 918 0650

For those unable to participate, the teleconference will be available for replay on Camtek’s website at http://www.camtek.co.il/ beginning 24 hours after the call.

ABOUT CAMTEK LTD.

With headquarters in Migdal Ha'Emek Israel, Camtek Ltd., designs, develops, manufactures, and markets automatic optical inspection systems and related products. Camtek’s automatic inspection systems are used to enhance both production processes and yield for manufacturers in the printed circuit board industry, the high density interconnect substrate industry and the semiconductor manufacturing and packaging industry. This press release is available at www.camtek.co.il

This press release may contain projections or other forward-looking statements regarding future events or the future performance of the Company. These statements are only predictions and may change as time passes. We do not assume any obligation to update that information. Actual events or results may differ materially from those projected, including as a result of changing industry and market trends, reduced demand for our products, difficulties surrounding the timely development of our new products and their adoption by the market, increased competition in the industry, price reductions, litigation risks, as well as due to risks identified in the documents filed by the Company with the SEC.

Camtek Ltd.

Consolidated Balance Sheets

(In thousands)AssetsCurrent assetsCash and cash equivalentsAccounts receivable, netInventoriesDue from affiliatesOther current assetsDeferred tax assetTotal current assetsFixed assets, netLong term inventoryDeferred tax assetOther assets, net ()Total assetsLiabilities and shareholder’s equityCurrent liabilitiesShort term loanAccounts payable tradeDue to affiliatesConvertible loan – current portionOther current liabilitiesTotal current liabilitiesLong term liabilitiesConvertible loan net of current portionOther long term liabilities ()Liability for employee severance benefitsTotal liabilitiesCommitments and contingenciesShareholders’ equityOrdinary shares NIS 0.01 par value, authorized 100,000,000 shares,issued 31,227,484 in 2008 and 31,279,027 in 2009, outstanding29,135,108 in 2008 and 29,186,651 in 2009.Additional paid-in capitalRetained earnings (losses)Treasury stock, at cost (2,092,376 shares in 2008 and 2009)Total shareholders' equityTotal liabilities and shareholders' equity	Sep 30,December 31,20092008U.S. Dollars(In thousands)13,80115,94916,48418,15614,3349,7924084141,5721,929393946,63846,279 15,75315,6488,05821,6531271274,8021,02812,98722,80875,37884,735-1,5003,4245,240-2941,6661,66710,96711,38216,05720,083-1,6664,026-27527120,35822,02013213260,31260,149(3,526)4,33256,91864,613(1,898)(1,898)55,02062,71575,37884,735	Sep 30,December 31,20092008U.S. Dollars(In thousands)13,80115,94916,48418,15614,3349,7924084141,5721,929393946,63846,279 15,75315,6488,05821,6531271274,8021,02812,98722,80875,37884,735-1,5003,4245,240-2941,6661,66710,96711,38216,05720,083-1,6664,026-27527120,35822,02013213260,31260,149(3,526)4,33256,91864,613(1,898)(1,898)55,02062,71575,37884,735
		15,94918,1569,7924141,92939
		46,279
		15,648
		21,6531271,028
		22,808
		84,735
		1,5005,2402941,66711,382
		20,0831,666-271
		22,020
		13260,1494,332
		64,613(1,898)
		62,715
		84,735

(*) The increase relates to Printar acquisition

Camtek Ltd.

Consolidated Statements of Operations

(In thousands, except share data)

(In thousands, except share data)
RevenuesCost of revenuesGross profitResearch and development costsSelling, general and administrativeexpensesOperating lossFinancial income (expenses), netIncome (loss) before incometaxesIncome taxNet lossNet loss per ordinary share:BasicDilutedWeighted average number ofordinary shares outstanding:BasicDiluted	Nine Months endedSeptember 30,20092008U.S. dollars36,29963,06422,55038,22913,74924,8357,5489,51313,48619,51221,03429,025(7,285)(4,190)(353)298(7,638)(3,892)(220)(200)(7,858)(4,092)(0.27)(0.14)(0.27)(0.14)29,21030,19029,21030,190	Three Months endedSeptember 30,20092008U.S. dollars14,50019,1198,40412,5806,0966,5392,6513,1733,6237,1836,27410,356(178)(3,817)(72)(224)(250)(4,041)(75)(46)(325)(4,087)(0.01)(0.14)(0.01)(0.14)29,21830,07629,21830,076	Year endedDecember 31,
			2008
			U.S. dollars
	36,29922,55013,7497,54813,48621,034(7,285)(353)(7,638)(220)(7,858)(0.27)(0.27)29,21029,210	14,5008,4046,0962,6513,6236,274(178)(72)(250)(75)(325)(0.01)(0.01)29,21829,218	75,46347,615
			27,848
			12,80124,834
			37,635(9,787)
			1,000
			(8,787)
			(770)
			(9,557)
			(0.32)
			(0.32)
			29,916
			29,916