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EXHIBIT 99.1
CAMTEK LTD. REPORTS MAJOR INCREASES IN THIRD QUARTER & NINE MONTHS SALES AND
EARNINGS
* REVENUES INCREASE 133% FOR 9 MONTHS; 120.5% FOR QUARTER; * EPS $0.40 VS.
$(0.01) FOR 9 MONTHS, $0.16 VS. $0.05 FOR QUARTER, RESPECTIVELY; * GROSS MARGINS
54.4% VS. 48.3% FOR 9 MONTHS, 54.9% VS. 47.8% FOR QUARTER; * SIXTH STRAIGHT
QUARTER OF REVENUE GROWTH
MIGDAL HA'EMEK, Israel, Nov. 1 -- Camtek Ltd. (Nasdaq: CAMT), a designer,
developer, manufacturer and marketer of automated optical inspection systems and
related products, today announced record operating results for the nine months
and third quarter ended September 30, 2000.
Sales for the first nine months of 2000 rose 133% to $37,026,000 from
$15,888,000 in the first nine months of 1999. Gross profit grew by 162.7% to
$20,136,000 from $7,666,000 in the 1999 nine month period, and gross margins
improved to 54.4% from 48.3% for the prior year same period. Net earnings for
the first nine months of 2000 climbed to $7,315,000, or $0.42 basic and $0.40
fully diluted earnings per share, compared with a net loss of $(159,000) or
$(0.01) loss per share in the 1999 same period.
Sales for the third quarter of 2000 rose 120.5% to $15,041,000 from $6,820,000
in the third quarter of 1999. Gross profit grew by 153.1% to $8,256,000 from
$3,262,000 in the 1999 third quarter, and gross margins increased to 54.9% in
the third quarter of 2000 from 47.8% in the third quarter of 1999. Net earnings
for the third quarter of 2000 climbed to $3,305,000, or $0.16 basic and diluted
earnings per share, compared to $866,000, or $0.06 basic and $0.05 diluted
earnings per share, in the third quarter of 1999. This represents the sixth
straight quarter of revenue growth for the Company.
It is essential to understand that "sales" figures represent installed orders
only, not purchase orders which are treated as backlog until installation.
In analyzing the sales data, Camtek noted several highly significant facts:
fifty percent of sales are repeat orders and forty-four percent are new orders;
sixty-one percent of sales are from strategic accounts -- the top 100 industry
firms; fifty-seven percent of sales are for multiple units; and six percent of
revenues are from service charges.
Comparing the third quarter results to those of the second quarter, revenues
increased 31.2%, or $3,573,000, from $11,468,000 to $15,041,000; net earnings
were up 43.8%, or $1,006,000, from $2,299,000 to $3,305,000; basic earnings per
share rose to $0.16 basic and diluted from $0.14 basic and diluted.
Rafi Amit, Chief Executive Officer of Camtek, commented, "We are extremely
gratified by the operating results to date. We initially produced
technologically advanced and economically
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priced systems geared towards the small and medium sized PCB manufacturer,
giving them access to the technology they needed to stay competitive. Camtek
then added more advanced systems built for higher volume and high end work. In
our industry, we often sell our systems via simultaneous performance trials of
competing systems at the potential client's production facility. Since the start
of this year, Camtek has won 35 of 40 such 'shoot-outs,' and was never rated
less than 'equivalent to' on the others. The reception our systems have steadily
received and continue to receive in markets from Asia, Europe and North America
is proof of the success of our market driven strategy."
Mr. Amit continued, "Last week we announced the release of our new generation
'CPC' -- the Camtek Process Control system which monitors and presents AOI
system operation, performance, quality and inspection data in real time and
statistically over time. This system is expected to significantly reduce the
incidences of scrapped PCBs, and we have already received orders from major
electronics and telecom manufacturers. Later this quarter, we expect to
introduce two other important new systems: 'Pegasus' for final inspection of
advanced substrates with an automatic material handling cassette to cassette
system, followed by our new generation 'CVR' -- Camtek Verification system, a
stand alone unit designed to complement our Orion or Vega systems. In Q1 2001,
we plan to release our VEGA system, which essentially combines AOI with
automatic material handling, or AMH, and reduces labor costs, overcomes
shortages of skilled labor, and reduces loss of PCBs due to human handling
mishaps. We are absolutely committed to delivering the technology our clients'
industries need, together with total customer service and support. We believe
this has been our 'magic formula' for success from the start."
The Company will host a conference call to discuss these results on Wednesday
November 1, at 11:00 A.M. EST. To participate, please call 800-619-6567 (US),
312-470-0052 (International) and mention ID code: CAMTEK. The conference call
will also be webcast live on Vcall at http://www.vcall.com and available
thereafter for replay starting 1 PM EST on the day of the call.
About CAMTEK LTD.
With headquarters in Migdal Ha'emek, Israel, Camtek Ltd. designs, develops,
manufactures, and markets technologically advanced and cost-effective automated
optical inspection systems and related products, used to detect defects and
ensure quality during the manufacturing process in the printed circuit boards
and advanced substrates industries. Camtek has sold almost over 550 of its AOI
systems in 27 countries worldwide.
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Consolidated Balance Sheets
(in thousands, except share data)
<TABLE>
<CAPTION>
Sept. 30, Dec. 31,
2000 1999
Unaudited Audited
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents 6,744 538
Marketable securities 26,213 --
Accounts receivable - trade
(net of allowance of $557 and $551) 9,450 6,588
Inventories 9,422 6,574
Due from affiliates 367 --
Other current assets 2,879 1,161
Total current assets 55,075 14,861
Fixed assets, net 3,728 2,555
Intangibles, net 121 255
Deferred taxes 531 --
Deferred registration costs -- 942
59,455 18,613
LIABILITIES
Current liabilities:
Short-term bank credit 886 6,794
Accounts payable 5,407 2,211
Due to PCB Ltd. 25 1,685
Due to affiliates -- 716
Other current liabilities 6,490 3,759
Total current liabilities 12,808 15,165
Accrued severance pay,
net of amounts funded 87 59
12,895 15,224
SHAREHOLDERS' EQUITY
Ordinary shares NIS 0.01 par value,
authorized 100,000,000 shares,
Outstanding 16,261,002 shares in 1999
and 22,096,002 shares in 2000 112 98
Additional paid-in capital 37,048 1,240
Unearned portion of compensatory
stock options (60) (108)
Unrealized gain (loss) on securities (14) --
Retained earnings 9,474 2,159
46,560 3,389
59,455 18,613
</TABLE>
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Consolidated Statements of Operations
(in thousands, except per share data)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
Unaudited Unaudited Unaudited Unaudited
<S> <C> <C> <C> <C>
Revenues 15,041 6,820 37,026 15,888
Cost of revenues 6,785 3,558 16,890 8,222
Gross profit 8,256 3,262 20,136 7,666
Research and
development costs:
Expenses 1,776 1,110 4,792 3,145
Less royalty-bearing
participations from the
Government of Israel 537 466 1,610 1,397
Research and development
costs, net 1,239 644 3,182 1,748
Selling, general and
administrative expenses 3,455 2,056 8,236 5,627
Operating income 3,562 562 8,718 291
Financial and other
(expenses) income, net 48 304 (693) (450)
Income (loss) before
income taxes 3,610 866 8,025 (159)
Provision for
income taxes 305 -- 710 --
Net income (loss) 3,305 866 7,315 (159)
Earnings (loss) per ordinary share:
Basic 0.16 0.06 0.42 (0.01)
Diluted 0.16 0.05 0.40 (0.01)
Weighted average number
of ordinary shares
Outstanding:
Basic 20,151 15,020 17,558 15,020
Diluted 20,741 16,484 18,115 16,484
</TABLE>
SOURCE: CAMTEK LTD.
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