Washington, D.C. 20549


Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
under the Securities Exchange Act of 1934

For the Month of August 2005

(Translation of Registrant’s Name into English)

Ramat Gavriel Industrial Zone
P.O. Box 544
Migdal Haemek 23150

(Address of Principal Corporate Offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F x Form 40-F o

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities and Exchange Act of 1934.

Yes o No x


        Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


Moshe Amit,
Executive Vice President and
Chief Financial Officer

Dated: August 11, 2005


August 11, 2005


Sales to Semiconductor Industry Doubled

Revenues Reached $16.7 Million Representing an 83% Sequential Growth;
Gross Margin – 50%, Net Income – $1.5 million, EPS – $0.05

MIGDAL HAEMEK, Israel - August 11, 2005 - Camtek Ltd. (NASDAQ: CAMT), today announced results for the second quarter ended June 30, 2005.

Revenues for the second quarter of 2005 were $16.7 million. This represents a slight decrease of 3.7% from $17.4 million as reported in the second quarter of 2004, and sequentially up 83% from $9.1 million as reported in the first quarter of 2005. Gross profit margin for the second quarter of 2005 was 50%, compared to 52% for the second quarter of 2004, and 41% for the first quarter of 2005. The Company reported second quarter net income of $1.5 million, or $0.05 per share, compared to a net income of $3.2 million, or $0.12 per share, in the second quarter of last year, and a loss of $2.4 million, or $(0.09) per share, in the first quarter of 2005.

“Our revenues are back at the run rate which we saw during 2004, which was a very good year for us,” commented Rafi Amit, Camtek’s CEO. “Returning to this revenue level has improved our profitability, bringing our gross margins back to around the 50% level, within our normal range. A major factor in this profitability increase was the impressively growing contribution of our sales to the semiconductor manufacturing and packaging industry. We achieved this margin despite pricing pressure and fierce competition, in the PCB industry. In fact, revenues from the Falcon, our family of wafer inspection systems, nearly doubled from last quarter, amounting to $3.8 million, or 23% of our income in the quarter. We have also expanded our customer base with several leading international Integrated Device Manufacturers, who evaluated the Falcon against competing products and selected it predominantly based on its performance.”

Mr. Amit continued: “Because of our improved results, we recorded a net positive cash flow from operation of $3.4 million, taking our net cash reserves to $7.6 million. In addition, we announced earlier this week the investment of $5 million in Camtek by FIMI Opportunity Fund, a prominent Israeli investment fund, through a five year convertible loan, which will further increase our cash reserves providing us with ample working capital for executing our growth plans.”

Mr. Amit concluded, “Looking ahead, we see the relative weight of revenues from the semiconductor manufacturing and packaging industries continues to increase.  This trend results from growing revenues from the semiconductor sector combined with continuous pressure on prices in the PCB sector of our business. 

Current sales activity, in terms of incoming orders and hot prospects, seems to run at a similar rate to the second quarter, though we also see indications of a further potential improvement in the semiconductor manufacturing and packaging market in the fourth quarter of 2005. It is however too early to predict the expected revenues in each of the coming quarters, as is currently typical to our marketplace, shipping and installation dates are determined within a notice of days, causing revenues recognition to shift from quarter to quarter.”

Camtek will hold a conference call on Thursday, August 11, 2005 at 11:00 EDT (for other time zones see below). Moshe Amit, Chief Financial Officer, and Yuval Attias, Controller, will host the call and will be available to answer questions.

To participate, please call one of the following telephone numbers below.
US: 1-(866) 500-4964 11:00 a.m. EDT
UK: 0-(800) 169-8104 4:00 p.m. London time
Israel & International: +972 3 925-5910 18:00 Israel time

The teleconference will be available for replay for 14 days on Camtek’s website at http://www.camtek.co.il/, beginning 48 hours after the call.


Camtek Ltd. designs, develops, manufactures, and markets technologically advanced and cost-effective intelligent optical inspection systems and related software products, used to enhance processes and yields for the printed circuit boards, semiconductor manufacturing and semiconductor packaging industries. Camtek has been a public company since 2000, with headquarters in Migdal HaEmek, Israel and subsidiaries in the U.S., Europe, Japan, and East Asia. See also www.camtek.co.il.

        This press release may contain projections or other forward-looking statements regarding future events or the future performance of the Company. These statements are only predictions and may change as time passes. We do not assume any obligation to update that information. Actual events or results may differ materially from those projected, including as a result of changing industry and market trends, reduced demand for our products, the timely development of our new products and their adoption by the market, increased competition in the industry and price reductions, as well as due to risks identified in the documents filed by the Company with the SEC.

Moshe Amit, CFO Financial Communication Gelbart-Kahana International Ehud
Tel: +972-4-604-8308 Noam Yellin Helft / Kenny Green
Fax: +972-4-604 8300 Tel: +972 3 6954333 Tel: (US) 1 646 201 9246
Mobile: +972-5-469-4902 Fax: +972 544 246720 kenny@gk-biz.com
mosheamit@camtek.co.il ehud@gk-biz.com


Consolidated Balance Sheets

(in thousands, except share data)

December 31,

June 30,

Current assets:  
   Cash and cash equivalents    9,141    9,902  
   Accounts receivable - trade, net of allowance of $2,236 and $2,362    22,078    17,639  
   Inventories    24,892    23,725  
   Due from affiliates    479    495  
   Other current assets    2,093    2,251  

       Total current assets    58,683    54,012  
   Fixed assets, net    9,960    9,924  

     68,643    63,936  

Current liabilities:  
   Short-term bank credit    2,335    2,300  
   Accounts payable    8,215    5,178  
   Other current liabilities    8,095    7,263  

       Total current liabilities    18,645    14,741  
Accrued severance pay, net of amounts funded    222    222  

       Total liabilities    18,867    14,963  

Ordinary shares NIS 0.01 par value, authorized 100,000,000 shares,  
   issued 28,085,766 in 2004 and 28,093,116 in 2005, outstanding 27,074,147  
   in 2004 and 27,081,497 in 2005    125    125  
Additional paid-in capital    43,732    43,743  
Unearned compensation    (363 )  (291 )
Retained earnings    7,275    6,389  
Treasury stock, at cost (1,011,619 shares in 2004 and 2005)    (993 )  (993 )

     49,776    48,973  

     68,643    63,936  


Consolidated Statements of Operations

(in thousands, except per share data)

Year Ended
December 31,
Three Months Ended
June 30,
Six Months Ended
June 30,
    Revenues      67,419    17,419    16,771    30,494    25,912  

    Cost of revenues    31,361    8,358    8,435    14,470    13,809  

Gross profit    36,058    9,061    8,336    16,024    12,103  

Research and development costs    7,328    1,935    2,043    3,611    3,862  
Selling, general and administrative expenses    15,953    3,780    4,844    7,293    8,819  

Operating expenses    23,281    5,715    6,887    10,904    12,681  

Aborted issuance expenses    1,122    -    -    -    -  

Operating income (loss)    11,655    3,346    1,449    5,120    (578 )

Financial and other income, net    (359 )  (130 )  53    (64 )  (308 )

Income (loss) before income taxes     11,296    3,216    1,502    5,056    (886 )

Provision for income taxes    (499 )  -    -    533    -  

Net income (loss)     10,797    3,216    1,502    4,523    (886 )

Net income (loss) per ordinary share:   
   Basic     0.40    0.12    0.06    0.17    (0.03 )

   Diluted     0.39    0.12    0.05    0.16    (0.03 )

Weighted average number of ordinary shares   
Basic     27,114    27,056    27,205    27,055    27,203  

Diluted     27,800    27,860    27,496    27,846    27,495