Interim Unaudited Condensed Consolidated Financial Statements as at June 30, 2023

Contents
Page
Interim Unaudited Condensed Consolidated Balance Sheets
F-3
Interim Unaudited Condensed Consolidated Statements of Operations
F-4 to F-5
Interim Unaudited Condensed Consolidated Statements of Shareholders' Equity
F-6
Interim Unaudited Condensed Consolidated Statements of Cash Flows
F-7 to F-8
Notes to the Interim Unaudited Condensed Consolidated Financial Statements
F-9 to F-16

F - 2

Camtek Ltd. and its Subsidiaries

Interim Unaudited Condensed Consolidated Balance Sheets
June 30,
December 31,
2023
2022
Note
U.S. Dollars (in thousands)
Assets
Current assets
Cash and cash equivalents
4A
232,787
148,156
Short-term deposits
198,500
251,500
Trade accounts receivable
79,025
80,611
Inventories
4B
61,207
65,541
Other current assets
4C
14,998
11,156
Total current assets
586,517
556,964
Long term deposits
75,000
79,000
Long term inventory
4B
7,125
5,357
Deferred tax assets
724
1,004
Other assets
2,557
1,024
Property, plant and equipment, net
4D
37,131
33,141
Intangible assets, net
4E
602
597
Total non-current assets
123,139
120,123
Total assets
709,656
677,087
Liabilities and shareholders' equity
Current liabilities
Trade accounts payable
31,238
31,667
Other current liabilities
4F
45,529
56,833
Total current liabilities
76,767
88,500
Long term liabilities
Other long-term liabilities
10,198
8,748
Convertible notes

4G

196,284
195,737
206,482
204,485
Total liabilities
283,249
292,985
Shareholders' equity
Ordinary shares NIS 0.01 par value, 100,000,000 shares authorized at June 30, 2023 and at December 31, 2022;
46,811,504 issued shares at June 30, 2023 and 46,505,318 at December 31, 2022;
44,719,128 shares outstanding at June 30, 2023 and 44,412,942 at December 31, 2022;
3
175
175
Additional paid-in capital
193,626
187,105
Retained earnings
234,504
198,720
428,305
386,000
Treasury stock, at cost (2,092,376 shares as of June 30, 2023 and December 31, 2022)
(1,898
)
(1,898
)
Total shareholders' equity
426,407
384,102
Total liabilities and shareholders' equity
709,656
677,087
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,
2023
2022
2022
Note
U.S. dollars
U.S. dollars
Revenues
146,215
156,744
320,909
Cost of revenues
77,378
76,693
161,053
Gross profit
68,837
80,051
159,856
Research and development costs
15,672
15,199
28,859
Selling, general and
administrative expenses
5A
24,037
24,451
49,499
39,709
39,650
78,358
Operating income
29,128
40,401
81,498
Financial income, net
5B
10,864
860
6,690
Income before income taxes
39,992
41,261
88,188
Income tax expense
(4,208
)
(3,700
)
(8,239
)
Net income
35,784
37,561
79,949

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,
2023
2022
2022
Note
U.S. dollars
U.S. dollars
Basic net earnings per share
0.80
0.86
1.81
Diluted net earnings per share
0.74
0.78
1.66
Weighted average number of ordinary shares outstanding
(in thousands):
Basic
44,562
43,929
44,158
Diluted
48,531
48,150
48,229
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, 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, 2022
46,355,859
174
(2,092,376
)
(1,898
)
182,174
156,332
336,782
Share-based
compensation
expense
-
-
-
-
4,931
-
4,931
Exercise of share
options and RSUs
149,459
1
-
-
-
-
1
Net income
-
-
-
-
-
42,388
42,388
Balances at
December 31, 2022
46,505,318
175
(2,092,376
)
(1,898
)
187,105
198,720
384,102
Share-based
compensation
expense
-
-
-
-
6,521
-
6,521
Exercise of share
options and RSUs
306,186
*
-
-
-
-
-
Net income
-
-
-
-
-
35,784
35,784
Balances at
June 30, 2023
46,811,504
175
(2,092,376
)
(1,898
)
193,626
234,504
426,407
The accompanying notes are an integral part of these interim unaudited condensed consolidated financial statements.
*Represents an amount less than $1,000

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,
2023
2022
2022
U.S. dollars
U.S. dollars
Cash flows from operating activities:
Net income
35,784
37,561
79,949
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
2,406
1,849
4,094
Deferred tax expense
280
110
(777
)
Amortization of debt issuance costs
547
547
1,094
Loss on disposal of fixed assets
233
-
-
Share based compensation expense
6,521
5,592
10,523
Change in provision for doubtful debts
-
-
(7
)
Changes in operating assets and liabilities:
Trade accounts receivable
1,829
(14,252
)
(21,984
)
Inventories
171
(13,512
)
(9,518
)
Due from related parties
-
(2
)
-
Other assets
(5,375
)
(2,079
)
(6,337
)
Trade accounts payable
(231
)
1,244
(2,113
)
Other current liabilities
(9,449
)
(4,111
)
2,875
Net cash provided by operating activities
32,716
12,947
57,799
Cash flows from investing activities:
Redemption (investment) of short-term deposits
57,000
(179,000
)
(95,500
)
Investment of long-term deposits
-
(15,000
)
(47,000
)
Purchase of fixed assets
(4,782
)
(3,786
)
(8,197
)
Purchase of intangible assets
(60
)
(28
)
(97
)
Net cash provided by (used in) investing activities
52,158
(197,814
)
(150,794
)
Cash flows from financing activities:
Proceeds from exercise of share options
-
2
3
Net cash provided by financing activities
-
2
3
Effect of change in exchange rate on cash and cash equivalents
(243
)
(1,037
)
(795
)
Net increase (decrease) in cash and cash equivalents
84,631
(185,902
)
(93,787
)
Cash and cash equivalents at beginning of the period
148,156
241,943
241,943
Cash and cash equivalents at end of the period
232,787
56,041
148,156

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,
2023
2022
2022
U.S. dollars
U.S. dollars
Supplementary cash flows information:
Income taxes paid
9,626
454
11,836
Interest received
6,911
1,030
4,293
Lease payments
735
689
1,480
Non-cash transactions:
Fixed assets purchased with supplier credit
371
680
569
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 21.5% by Priortech Ltd., an Israeli corporation listed on the Tel-Aviv Stock Exchange and 17.5% 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.

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 2022 annual audited consolidated financial statement for the year ended December 31, 2022.
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 2022 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, 2022.
In the opinion of management of the Company, the accompanying unaudited condensed financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of June 30, 2023, and its results of operations for the three months and nine months ended June 30, 2023, and 2022, and cash flows for the six months ended June 30, 2023, and 2022. The condensed balance sheet at December 31, 2022, was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements.

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, 2023, was 306,186.
In the first six months of 2023, 509,231 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 $6,521, $5,592, and $10,523 for the six-month periods ended June 30, 2023 and 2022 and the year ended December 31, 2022, 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, 2023 and December 31, 2022 is denominated in the following currencies:
June 30,
December 31,
2023
2022
U.S. Dollars (in thousands)
US Dollars
226,172
139,644
New Israeli Shekels
4,416
4,008
Other currencies
2,199
4,504
232,787
148,156
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 5.05%.
B. Inventories
June 30,
December 31,
2023
2022
U.S. Dollars (in thousands)
Components
34,158
43,017
Work in process
15,444
13,951
Finished products (including systems at customer locations not yet sold)
18,730
13,930
68,332
70,898
Inventories are presented in:
June 30,
December 31,
2023
2022
U.S. Dollars (in thousands)
Current assets
61,207
65,541
Long-term assets
7,125
5,357
68,332
70,898

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,
2023
2022
U.S. Dollars (in thousands)
Interest receivable
7,048
3,979
Prepaid expenses
4,315
3,832
Due from Government institutions
2,875
2,598
Other
760
747
14,998
11,156
D. Property, Plant and Equipment, Net
June 30,
December 31,
2023
2022
U.S. Dollars (in thousands)
Land
863
863
Building
20,345
18,490
Machinery and equipment
22,590
19,121
Office furniture and equipment
997
934
Computer equipment and software
6,218
6,256
Automobiles
396
396
Leasehold improvements
2,080
1,894
Right of use assets
5,845
6,087
59,334
54,041
Less accumulated depreciation
22,203
20,900
37,131
33,141

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,
2023
2022
U.S. Dollars (in thousands)
Patent registration costs
2,195
2,135
Accumulated amortization and impairment
1,593
1,538
Total intangible assets, net
602
597
F. Other Current Liabilities
June 30,
December 31,
2023
2022
U.S. Dollars (in thousands)
Commissions
18,789
18,048
Advances from customers and deferred revenues
7,199
12,825
Accrued employee compensation and related benefits
10,506
11,941
Accrued warranty costs (1)
3,041
3,161
Government institutions and income tax payable
2,844
7,991
Accrued expenses
1,884
1,570
Operating lease obligations
1,266
1,297
45,529
56,833
(1) Changes in the accrued warranty costs are as follows:
June 30,
December 31,
2023
2022
U.S. Dollars (in thousands)
Beginning of year
3,161
3,265
Accruals
2,721
5,823
Usage
(2,841
)
(5,927
)
Balance at end of year
3,041
3,161

F - 14

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)
G.Convertible Notes
The Convertible Senior Notes consisted of the following:
June 30,
December 31,
2023
2022
U.S. Dollars (in thousands)
Liability:
Principle:
200,000
200,000
Unamortized issuance costs
3,716
4,263
Net carrying amount
196,284
195,737
As of June 30, 2023, the debt issuance costs of the Notes will be amortized over the remaining term of approximately 3.5 years.
The annual effective interest rate of the Notes is 0.56%. In the six-months ended June 30, 2023, $547 was recorded as amortization of debt issuance costs (In the year ended December 31, 2022 - $1,094).
As of June 30, 2023, the estimated fair value of the Notes, which the Company has classified as Level 2 financial instruments, is $179,154 (December 31, 2022 - $152,565). The estimated fair value was determined based on the quoted bid price of the Notes in an over-the-counter market on the last trading day of the reporting period.
As of June 30, 2023, the principal amount exceeded the if-converted value of the Notes by $20,846 (December 31, 2022, the principal amount exceeded the if-converted value of the Notes by $47,435).

F - 15

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,
2023
2022
2022
U.S. Dollars (in thousands)
Selling (1)
17,910
18,840
38,249
General and administrative
6,127
5,611
11,250
24,037
24,451
49,499
(1) Including shipping and handling costs
1,025
980
2,294
B. Financial income (expenses), net
Six months ended
June 30,
Year ended
December 31,
2023
2022
2022
U.S. Dollars (in thousands)
Interest income
11,838
2,488
8,648
Amortization of issuance costs of convertible notes
(547
)
(547
)
(1,094
)
Other, net (1)
(427
)
(1,081
)
(864
)
10,864
860
6,690
(1) Including foreign currency expense resulting from transactions not denominated in U.S. Dollars
(172
)
(871
)
(351
)
Note 6 - Subsequent Events
On September 18, 2023, the Company announced it has entered into an agreement to acquire the FRT Metrology business of FormFactor, Inc. The acquisition is expected to close during the fourth quarter of 2023, subject to the satisfaction of customary closing conditions. The purchase price is $100 million in cash, subject to customary purchase price adjustments.

F - 16

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Camtek Ltd. published this content on 27 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 September 2023 10:07:13 UTC.