Camtek Ltd. (CAMT) is launching the first commercial 3D printer for the PCB (Printed Circuit Board) industry this year. The company announced this development in a press release stating: “As a future growth engine, in addition to the existing products lines, the Company will focus its activity in the field of digital 3D printing for the printed circuit board industry.” As discussed in last month’s 2013 year-end conference call, Camtek’s new $300,000 “GreenJet” inkjet-based 3D printer has been delivered to the first customer and is in the final stage of testing with full commercialization anticipated in the second half of this year. With the competitive advantages the printer delivers, the launch could be a game-changer for the company as well as the PCB industry.
Camtek Ltd manufactures and markets computerized systems that optically inspect electronic components for defects caused during manufacturing. The $120 million market cap company has 480 employees, a balance sheet with $ 22.5 million cash and equivalents, and a current ratio of 3. Camtek Ltd. is based in Israel, with offices in the U.S. and Europe in addition to a strong presence throughout the Asia-Pacific region.
Highlights of the Full Year 2013
- Revenues of $85.4 million
- Gross margins 45%
- Non-GAAP operating income of $3.2 million; GAAP operating income of $1.1 million
- Non-GAAP net income of $2.1 million; GAAP net income of $7 thousand
- Positive operating cash flow of $4.7 million; Cash and equivalents of $22.5 million as of December 31, 2013
Highlights of Fourth Quarter 2013
- Revenues of $23.3 million (a 32% increase over Q4 2012)
- Net income (GAAP basis) of $0.02/share vs. loss of $0.11/share in Q4 2012
- Positive operating cash flow of $2.6 million
- 3D Printing System for PCB market installed at customer site for testing
- Camtek is forecasting Q1 2014 revenue growth of greater than 20%
Sources: Form 20-F, press release
Analyst Earnings Estimate .40/share Next Year
Due to the launch of its new 3D printer for the PCB industry, Chardan Capital Markets upgraded Camtek to a “Buy” based on the company’s “3D Printing Opportunity.” Chardan Capital Markets now estimates earnings of .10/share for 2014, and an impressive .40/share next year.
Launching GreenJet 3D Printer For Solder Mask Deposition
Camtek’s $300,000 GreenJet printer is an inkjet-based 3D printer designed for the deposition of solder mask on PCBs and offers manufacturers a high-performance solution with a wide range of cost-effective and technological benefits. The GreenJet printer is reported to deliver savings in labour, cycle time, electrical costs and space.
Moreover, GreenJet printers directly address a critical, costly and frequent complication during PCB manufacturing process: misalignment. As PCBs become increasingly crowded in order to fit more electrical components with more links on smaller boards, perfect alignment is essential. I believe the ability of the GreenJet printer to minimize alignment issues and reduce the 4-step solder mask deposition process to a 1-step process in addition to cost savings and shorter cycle times will result in strong demand from PCB manufacturers.
Early Mover Advantage In $93.9 Billion Market
The PCB industry is forecast at an 8% compound annual growth rate, and to reach $93.9 billion by 2017. This enormous market is highly competitive and Camtek’s GreenJet printer is entering the space with a novel product that delivers PCB manufacturers the competitive advantages noted above.
In addition to machine sales Camtek will generate recurring revenue with their proprietary hybrid ink, tailored to meet the demanding requirements of the PCB industry.
Technical Indicators
Two strongly bullish technical indicators were put into place last week:
• CAMT is coming off a triple bottom formation with lows on 11/29, 12/18, and 3/14
• CAMT broke above the 10 day moving average on 3/19. On Friday, 3/21, (a red day for the market in general), shares bounced off the 10 dma of 3.73 (low of day was 3.74)
Triple bottom reversals and 10 day moving average breaks are two of the more frequently used bullish technical indicators, and that’s in no small part because they are typically reliable.
Many experts agree that stock trading in specific companies and in the stock market overall tends to be forward-looking by about 6 months. Taking that time frame into consideration with Camtek’s scheduled commercialization of GreenJet printers in the second half of this year, I believe the lows of 2014 have been put into place and that the stock will trade higher from here.
Conclusion
With a strong balance sheet, strong revenue growth forecast, positive cash flow from operations and the commercial launch of the GreenJet printer this year, I believe shares are heavily undervalued at present. Analyst estimates for .10/share in earnings this year, jumping to .40/share next year appear well within reason and should drive CAMT shares higher.
Disclosure: I am long shares of Camtek Ltd. I have not been paid by any company or third-party for this article.
Gary, this is not even remotely related to 3D printing, regardless of what CAMT wants you to believe, it is an entirely mundane extension of long existing Printed Circuit Board manufacturing technologies, just read the text on the product page, the press release is smoke and mirrors. This technology has no application to any of the additive manufacturing technologies we call “3D”, so one has to assume CAMT is astro-turfing and trying to make their stock look like one of the “cool kids on the block” by adding “3D” to the description. Shame on you for not asking a Printed Circuit Board industry expert for an opinion before repeating this fable.
For a $300k machine they deliver hardly anything better than industry standard optical lithography systems costing far less. The only reason this is even a product is that the simplicity of “single step” mask application _may_ make high-mix PCB production more cost efficient by reducing the number of handling steps during fabrication. Unfortunately, very little of the electronics industry value chain is dependent on high-mix PCB cost basis. Think iPhone/Nexus7, the PCB never changes over the lifespan of the product. Further, the cost of PCB is a negligible part of the overall electronics industry value chain and is heavily commoditized to the extent that nearly 100% of volume manufacturing of PCB has been off-shored from North America. The only segments of the market that need high-mix PCB fab are R&D labs and prototype first-article production lines. That means CAMT may have a few clients (FlexTronics for example), but it certainly doesn’t impact anyone else in the broader Additive Manufacturing market, and has very little impact on the electronics industry either.
Hello y3ddet,
The SEC filings from the company refer to GreenJet as a 3D printer, the CEO as well as analysts from Charden Capital Markets (J. Srivatsa) and Roth Capital Partners (K. Shankar) do as well.
More importantly, there are several industry experts that I queried on this months ago, and they do in fact classify the GreenJet printer as “additive” based on their understanding of the technology.
So I disagree with your statement that GreenJet “is not even remotely related to 3D printing”. It is by definition, additive.
As for the impact it may or may not have on the industry, that will be up to the market to decide.
Regards,
Gary Anderson
Simply because the step is additive instead of a multi-step optical sensitization/curing, does NOT make it 3D. “Three Dimensions” implies a Z axis function, not a planar process essentially identical to ordinary household inkjet printers.
Their own product page is very clear – this is deposition of solder mask. The very purpose and composition of solder mask means we don’t want any variation in the thickness of the mask across the PCB, nor are there any functions that could be produced even if such a variation could be selectively applied.
We will have to agree to disagree. CAMT was mentioned in at least one keynote address at the Inside 3D Printing Conference that I attended. A lack of “variation in thickness” does not equal two dimensions, and inkjet technology can be utilized in additive, 3 dimensional printing.
Regards,
Good day Mr Gary
I need your help
I made a special 3d printer. So, I use High current because I
need high Torque.
I use the open source 3d printer Firmware (Marlin).
So I need the same circuit (RAMPS 1.4) but it deference in the output
current and the numbers of stepper Motors.
I want to drive 8 stepper motors:
4 stepper Motors (NEMA 23) for Z axis
1 stepper Motor (NEMA 23) for Y axis
1 stepper Motor (NEMA 23) for X axis
2 stepper motors (NEMA 11) for Dual Extruder
Technical Specifications for
Motors (X,Y,Z) Axis
Frame Size:
NEMA23
Step Angle:
1.8 degree
Voltage:
6.3VDC
Current:
3 A/phase
Resistance:
2.1Ohm/phase
Inductance:
9mH/phase
Holding torque: 30Kg-cm
425oz-in
Rotor inertia:
810 g-cm2
Detent torque:
0.89 kg-cm
Number of wire leads: 4
Weight:
1.55KG
Length:
115mm
Technical Specifications for Dual Extruder
Motors: Nema 11 Step Motors.
Rated current/Phase: 0.67 Amps
6.2 VDC :Rated voltage/Phase
Fans: 40x40x20 size, 12VD
Heaters: 12V, 60×2=120 watt
Thermistors: 100K ohm NTC thermistor
To explain look in the attach file
I send this massage to give me a solution design and made for this circuits .
Cheers