Reconciliation of GAAP To Non-GAAP results

(In thousands, except share data)

Six Months ended

June 30,

Three Months ended

June 30,

Year ended

December 31,

2014

2013

2014

2013

2013

U.S. dollars

U.S. dollars

U.S. dollars

Reported net income (loss) attributable to Camtek Ltd. on GAAP basis

2,651

(531)

2,012

335

7

Acquisition of Sela and Printar related expenses (1)

412

994

206

516

(1,949)

Inventory and fixed asset write –downs (2)

-

-

-

-

4,433

Share-based compensation

131

285

92

141

377

Realization of deferred tax assets (3)

-

-

-

-

(1,287)

Employee related charges (4)

-

-

-

-

490

Non-GAAP net income

3,194

748

2,310

992

2,071

Non –GAAP net income  per share, basic and diluted

0.10

0.03

0.08

0.03

0.07

Gross margin on GAAP basis

47.7%

44.7%

49.5%

44.1%

40.3%

Reported gross profit on GAAP basis

21,598

18,022

11,468

9,819

34,402

Acquisition of Sela and Printar related expenses (1)

-

150

-

75

225

Inventory and fixed asset write –downs (2)

-

-

-

-

3,915

Share-based compensation

24

27

8

21

55

Employee related charges (4)

-

-

-

-

25

Non- GAAP gross margin

47.7%

45.1%

49.5%

44.4%

45.2%

Non-GAAP gross profit

21,622

18,199

11,476

9,915

38,622

Reported operating income attributable to Camtek Ltd. on GAAP basis

3,734

840

2,564

993

1,136

Acquisition of Sela and Printar related expenses (1)

-

150

-

75

(3,241)

Inventory and fixed asset write-downs (2)

-

-

-

-

4,433

Share-based compensation

123

285

84

141

377

Employee related charges

-

-

490

Non-GAAP operating income

3,857

1,275

2,648

1,209

3,195