CamTech ended the quarter with 7.8% growth in quarterly revenue to $ 37 million, along with a 5.9% decline in adjusted earnings to $ 6.3 million or 16 cents a share. Market analysts had forecast revenue of $ 37 million and adjusted earnings of 15 cents a share.
The company noted that about $ 3 million of revenue in the quarter is attributed to systems that were not installed during the first quarter due to the spread of the corona virus, and were recognized during the second quarter, in which they were actually installed.
Adjusted operating income decreased by 8.6% compared to the second quarter of 2019, and stood at $ 6.4 million. Camtech explained that the decline in profitability was caused by a change in the sales mix – the company sold less than its profitable products in the last quarter compared to the second quarter of 2019. Camtech expects an improvement in profitability in the second half of the year.
Rafi Amit, CEO of CamTech, said that “the results of the second quarter reflect the demand for the company’s products, especially in Asia. We have increased our market share in 2D testing (2D) mainly as a result of improving our system performance and competitiveness in all 2D applications. We enjoy a strategy whereby local professional teams can independently install and support machines in all of the company’s operating territories. This strategy allows us to continue to grow even during the corona plague. However, we are aware of the consequences of the epidemic, which increases the level of risk and uncertainty. ”
The company provided an optimistic revenue forecast for the third quarter, noting that it based its forecast on orders it received. CamTech now expects to post revenue in the third (current) quarter in the range of $ 39-38 million, which will represent an increase of between 18.7% and 21.8% of its revenue in the third quarter of 2019 which stood at $ 32 million. The company’s forecast is higher than that of analysts, who forecast quarterly revenues of $ 37.5 million to $ 38.2 million.
CamTech, which is traded on the Tel Aviv and NASDAQ stock exchanges at a value of $ 605.2 million, rose 42.6% from the beginning of the year until the close of trading yesterday.