In news announced this morning, Camtek (CAMT) announced the successful completion of beta-testing of their enterprise grade “Gryphon” 3D inkjet printer for application of solder mask on printed circuit boards. The testing was conducted by Eltek (ELTK), a leading manufacturer of printed circuit boards.
In the press release, Roberto Tulman, Deputy CEO and CTO of Eltek commented:
“We thank Camtek and its dedicated team for the opportunity to test and use this new technology, helping us fabricate PCBs with better soldermask registration and shorter lead times. Operator training has already begun and we look forward to incorporating this new capability within our production process and realizing its full potential.”
Congratulations to subscribers who bought Camtek shares under $3 along with me when I wrote this article on 11/12/2014, as the stock is trading up in active premarket action on Nasdaq this morning. Options in Camtek are also available for those who trade them.
I believe the rise is due to 4 factors:
- This morning’s announcement
- Camtek shares were extremely oversold following Q3 earnings (see article)
- Average analyst EPS estimate is for a dramatic increase to .33/share in 2015 vs. .15/share estimate for this year
- Demonstration of the company’s new “Gryphon” inkjet technology 3D printer for solder mask application will take place next week in the heart of Silicon Valley
While the analyst average estimate for an EPS increase to .33/share for 2015 vs. .15/share 2014 may be a bit lofty, considering the lack of share dilution involved in this new product launch combined with Camtek’s strong balance sheet ($24 million cash, zero long term debt, current ratio 3.1), I think it’s reasonable to assume commercialization of the Gryphon will add significantly to the company’s bottom line next year.
The Gryphon’s pending launch was addressed by Camtek CFO, Moshe Eisenberg, in the company’s Q3 conference call:“We are progressing with the commercialization process of Gryphon, our 3D functional inkjet technology product for PCB solder applications. We recently opened a demonstration center in California, South of Los Angeles where potential customer can evaluate the product, supporting our efforts to capitalize on the industry interest we are seeing in this product. Our two better sites are almost complete, one of the sites is running production loads. In the second site the machine is running qualification loads for end customers. The more we ran the machine in the production environment as well as meeting with potential customers, the more confident we become in our belief that inkjet technology for solder mask will be the dominant technology in the PCB industry for years to come. We remain on track and expect initial commercial Gryphon installations at customers to begin in the fourth quarter with revenue expected in 2015. We intend to leverage our existing installed based and marketing channels worldwide to sell this product.”
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Disclosure: I am long shares of CAMT. I was not paid by any company or third party for this article.
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