EXPECTS 30% YoY GROWTH IN THE FIRST QUARTER WITH RECORD REVENUE IN FY 2024  MIGDAL HAEMEK, Israel, Feb. 20, 2024 /PRNewswire/ -- Camtek Ltd. (NASDAQ: CAMT) (TASE: CAMT), today announced its financial results for the fourth quarter and year ended December 31, 2023. Highlights of the Fourth Quarter of 2023 Revenues of $88.7 million, an 8% increase year-over-year; GAAP operating income of $17.2 million; non-GAAP operating income of $25.5 million, representing an operating margin of 19.4% and 28.7% respectivel ...

Camtek Ltd. (CAMT) is scheduled to report fourth-quarter 2023 results on Feb 20.The company has surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 5.1%.In the last reported quarter, Camtek posted non-GAAP earnings of 51 cents per share, up from 48 cents reported in the year-ago quarter. The figure also surpassed the Zacks Consensus Estimate of 48 cents per share. Revenues decreased 1.85% year over year to $80.47 million. However, the top line topp ...

MIGDAL HA'EMEK, Israel, Feb. 7, 2024 /PRNewswire/ -- Camtek Ltd. (Nasdaq: CAMT) (TASE: CAMT) announced that it would be releasing its financial results for the fourth quarter 2023 on Tuesday, February 20, 2024.  The Company will also host a video conference call on the same day via Zoom, starting at 9:00 am ET. Rafi Amit, Chief Executive Officer, Moshe Eisenberg, Chief Financial Officer and Ramy Langer, Chief Operating Officer will host the call and will be available to answer questions after presenting the ...

Investors should look for companies that offer sturdy returns even after meeting all operating and non-operating costs. After all, they always seek a profitable company over a loss-making one. Hence, to evaluate a company’s profitability, the concept of accounting ratios should be used by investors.There is a variety of profitability ratios, from which we have chosen the most successful and frequently used profitability metric to determine a company's bottom-line performance.To that end, e.l.f. Beauty (ELF) ...

Rafi Amit - CEO Ramy Langer - COO Tom O'Malley - Barclays Vedvati Shrotre - Jefferies Camtek undertakes no obligation to update any such forward-looking statements unless required by law. Camtek's public filings are available on the Securities and Exchange Commission's website at www.sec.gov and may also be obtained from Camtek's website at www.camtech.com. And I would now like to turn the call over to Rafi Amit. Rafi, you may go ahead. The remaining 40% is divided between compound semiconductors for power ...

[Interim Condensed Consolidated Financial Statements](index=1&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) This section presents the company's unaudited interim financial position, performance, and cash flows, along with detailed explanatory notes [Interim Unaudited Condensed Consolidated Balance Sheets](index=3&type=section&id=Interim%20Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Camtek's total assets reached **$709.7 million** by June 2023, with equity increasing to **$426.4 million** Interim Unaudited Condensed Consolidated Balance Sheets Summary (in thousands) | Financial Metric | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $586,517 | $556,964 | | **Total Non-Current Assets** | $123,139 | $120,123 | | **Total Assets** | **$709,656** | **$677,087** | | **Total Current Liabilities** | $76,767 | $88,500 | | **Total Long-Term Liabilities** | $206,482 | $204,485 | | **Total Liabilities** | **$283,249** | **$292,985** | | **Total Shareholders' Equity** | **$426,407** | **$384,102** | | **Total Liabilities and Equity** | **$709,656** | **$677,087** | [Interim Unaudited Condensed Consolidated Statements of Operations](index=5&type=section&id=Interim%20Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) H1 2023 revenues decreased to **$146.2 million**, while net income remained stable at **$35.8 million** due to increased financial income Interim Unaudited Condensed Consolidated Statements of Operations Summary (in thousands) | Performance Metric | Six months ended June 30, 2023 | Six months ended June 30, 2022 | | :--- | :--- | :--- | | Revenues | $146,215 | $156,744 | | Gross Profit | $68,837 | $80,051 | | Operating Income | $29,128 | $40,401 | | Net Income | $35,784 | $37,561 | | Basic Net Earnings Per Share | $0.80 | $0.86 | | Diluted Net Earnings Per Share | $0.74 | $0.78 | [Interim Unaudited Condensed Consolidated Statements of Shareholders' Equity](index=7&type=section&id=Interim%20Unaudited%20Condensed%20Consolidated%20Statements%20of%20Shareholders%27%20Equity) Shareholders' equity grew to **$426.4 million** by June 2023, primarily driven by net income and share-based compensation Interim Unaudited Condensed Consolidated Statements of Shareholders' Equity Summary (in thousands) | Equity Component | Balance at Dec 31, 2022 | Changes in H1 2023 | Balance at June 30, 2023 | | :--- | :--- | :--- | :--- | | Additional paid-in capital | $187,105 | $6,521 | $193,626 | | Retained earnings | $198,720 | $35,784 | $234,504 | | **Total Shareholders' Equity** | **$384,102** | **$42,305** | **$426,407** | [Interim Unaudited Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Interim%20Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow significantly increased to **$32.7 million**, boosting cash and equivalents by **$84.6 million** by June 2023 Interim Unaudited Condensed Consolidated Statements of Cash Flows Summary (in thousands) | Cash Flow Activity | Six months ended June 30, 2023 | Six months ended June 30, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $32,716 | $12,947 | | Net cash provided by (used in) investing activities | $52,158 | ($197,814) | | Net cash provided by financing activities | $0 | $2 | | **Net increase (decrease) in cash** | **$84,631** | **($185,902)** | Supplementary Cash Flow Information (in thousands) | Supplementary Cash Flow Information | Six months ended June 30, 2023 | Six months ended June 30, 2022 | | :--- | :--- | :--- | | Income taxes paid | $9,626 | $454 | | Interest received | $6,911 | $1,030 | [Notes to the Interim Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Interim%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Detailed disclosures cover operations, accounting basis, equity, financial statement breakdowns, and significant subsequent events [Note 1 - Nature of Operations](index=10&type=section&id=Note%201%20-%20Nature%20of%20Operations) Camtek provides automated solutions for semiconductor fabrication, jointly controlled by Priortech Ltd. and Chroma Ate Inc - Camtek provides automated solutions to enhance production processes and product yield in the semiconductor fabrication industry[6](index=6&type=chunk) - The company is jointly controlled by Priortech Ltd., an Israeli corporation (**21.5% ownership**), and Chroma Ate Inc., a Taiwanese company (**17.5% ownership**)[6](index=6&type=chunk) [Note 2 - Basis of Preparation](index=11&type=section&id=Note%202%20-%20Basis%20of%20Preparation) Interim financial statements are unaudited, prepared under U.S. GAAP, and should be read with 2022 annual audited statements - The financial statements have been prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information[10](index=10&type=chunk) - These statements should be read in conjunction with the Company's 2022 annual audited consolidated financial statements filed on Form 20-F[10](index=10&type=chunk) [Note 3 - Shareholders' Equity](index=12&type=section&id=Note%203%20-%20Shareholders%27%20Equity) Details equity activities, including share trading, option exercises, RSU grants, and share-based compensation - The company's shares are traded on the NASDAQ Global Market (CAMT) and the Tel-Aviv stock exchange[14](index=14&type=chunk) - In the first six months of 2023, **306,186** stock options were exercised and **509,231** restricted share units (RSUs) were granted[14](index=14&type=chunk)[15](index=15&type=chunk) Share-based Compensation Expense (in thousands) | Period | Share-based Compensation Expense | | :--- | :--- | | Six months ended June 30, 2023 | $6,521 | | Six months ended June 30, 2022 | $5,592 | | Year ended December 31, 2022 | $10,523 | [Note 4 - Supplementary Financial Statements Information](index=13&type=section&id=Note%204%20-%20Supplementary%20Financial%20Statements%20Information) Provides detailed breakdowns of balance sheet accounts: cash, inventories, PP&E, liabilities, and convertible notes Supplementary Financial Statements Information (in thousands) | Account | June 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $232,787 | $148,156 | | Inventories | $68,332 | $70,898 | | Other Current Assets | $14,998 | $11,156 | | Property, Plant and Equipment, Net | $37,131 | $33,141 | | Other Current Liabilities | $45,529 | $56,833 | | Convertible Notes (Net carrying amount) | $196,284 | $195,737 | - The estimated fair value of the Convertible Notes as of June 30, 2023, was **$179.2 million**, up from **$152.6 million** at year-end 2022[34](index=34&type=chunk) [Note 5 - Statements of Operations](index=17&type=section&id=Note%205%20-%20Statements%20of%20Operations) Details income statement components, including SG&A expenses and a significant increase in net financial income Selling, General, and Administrative Expenses (in thousands) | Expense Category | Six months ended June 30, 2023 | Six months ended June 30, 2022 | | :--- | :--- | :--- | | Selling | $17,910 | $18,840 | | General and administrative | $6,127 | $5,611 | | **Total SG&A** | **$24,037** | **$24,451** | Financial Income (Expense), Net (in thousands) | Financial Income (Expense) | Six months ended June 30, 2023 | Six months ended June 30, 2022 | | :--- | :--- | :--- | | Interest income | $11,838 | $2,488 | | Other, net | ($974) | ($1,628) | | **Financial income, net** | **$10,864** | **$860** | [Note 6 – Subsequent Events](index=17&type=section&id=Note%206%20%E2%80%93%20Subsequent%20Events) Details the **$100 million** acquisition of FRT Metrology from FormFactor, Inc., expected to close in Q4 2023 - On September 18, 2023, Camtek agreed to acquire the FRT Metrology business of FormFactor, Inc[40](index=40&type=chunk) - The purchase price is **$100 million** in cash, subject to customary adjustments[40](index=40&type=chunk) - The acquisition is expected to close during the fourth quarter of 2023[40](index=40&type=chunk)

Financial Data and Key Metrics Changes - The company reported Q2 2023 revenues of $73.8 million, an increase from the lower revenue in Q1 2023 [28][32] - Gross margin improved to 48% from 47.3% in the previous quarter, with expectations for further improvement [28][32] - Net income for Q2 2023 was $21.9 million, slightly down from $22.1 million in Q2 2022 [15][32] - Operating expenses increased to $17.1 million from $16.7 million in Q2 2022 [14][32] - Cash and cash equivalents as of June 30, 2023, were $506.3 million, up from $492.7 million at the end of Q1 2023 [34] Business Line Data and Key Metrics Changes - Approximately 60% of revenues came from Advanced Interconnect Packaging applications, with the remaining 40% from compound semiconductors, CIS, and process control applications [28] - The company expects chiplet modules and HBM to account for over 30% of business in 2024 [31] Market Data and Key Metrics Changes - Geographic revenue split for Q2 2023 was 83% from Asia and 17% from the U.S. and Europe, a slight shift from 90% Asia and 10% U.S. and Europe in the previous quarter [66] - The company noted solid business in China, with continued investments and no decline in business compared to 2022 [38] Company Strategy and Development Direction - The company aims to reach $500 million in revenue, with 2024 expected to be a record year [12][9] - Focus on new packaging technologies such as Heterogeneous Integration (HI) and High Bandwidth Memory (HBM) to drive growth [9][10] - The company is investing in R&D to comply with technological roadmaps and meet customer requirements [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the second half of 2023 being stronger than the first half, driven by major investments in AI [11] - The semiconductor industry is expected to grow significantly, with the company aiming to outpace industry growth due to its focus on high-growth segments [113] Other Important Information - The company has received orders for 42 systems, primarily for chiplet modules and HBM, with expectations for more orders [10][31] - Management is optimistic about maintaining a strong market position and high customer retention due to excellent support and understanding of customer requirements [42][63] Q&A Session Summary Question: Visibility into calendar '24 - Management noted increased customer readiness to place orders and higher conversion from pipeline to backlog, indicating good visibility for 2024 [20] Question: Business in China - Management confirmed solid business in China with continued investments and no decline compared to 2022 [38] Question: Competition in HBM-related inspection metrology - Management stated that they hold a strong market position and believe barriers to entry have increased, making it difficult for competitors to catch up [42] Question: Gross margin implications for 2024 - Management expects a positive trend in gross margins, aiming to exceed 50% as revenues increase [52][95] Question: Target for $500 million revenue - Management expressed confidence in achieving the $500 million target, contingent on continued industry growth and maintaining customer relationships [101][113] Question: Order details and delivery schedule - Management indicated that most of the machines ordered would be shipped in the third and fourth quarters of 2023, with a small portion in early 2024 [115]

Financial Data and Key Metrics Changes - First quarter revenue was $72.5 million, a decrease of 6% compared to Q1 2022 [6][11] - Gross profit for the quarter was $34.3 million, with a gross margin of 47.3%, down from 52% in Q1 2022 [6][11] - Operating profit was $17.4 million, compared to $22.2 million in Q1 2022, resulting in an operating margin of 24% [7][11] - Net income for Q1 2023 was $20.4 million or $0.42 per diluted share, compared to $21 million or $0.44 per share in Q1 2022 [32] Business Line Data and Key Metrics Changes - Over 60% of revenue came from advanced interconnect packaging applications, while front-end and compound semiconductor segments accounted for about 20% of revenue [3] - The DRAM field, particularly in the HBM segment, accounted for over 10% of revenue, showing growth despite a decline in the memory market [12] Market Data and Key Metrics Changes - Geographic revenue split for the quarter was 90% from Asia and 10% from the U.S. and Europe, with expectations to return to an 80-20 mix for the year [6] - The automotive market within the compound semiconductor segment is expected to remain strong [16] Company Strategy and Development Direction - The company aims to maintain R&D spending to support customer technology development, particularly in hybrid bonding and heterogeneous integration [5] - The company is optimistic about growth potential due to investments in R&D and plans to release new products later in the year [30] - The company is focused on improving gross margins through engineering and design changes, which may take time to realize [31] Management's Comments on Operating Environment and Future Outlook - Management noted a potential for moderate improvement in the business situation based on customer discussions, but emphasized caution due to economic uncertainties [29] - The company is monitoring expenses carefully and adjusting them to current conditions rather than long-term forecasts [29] - Management expressed confidence in the growth of the advanced packaging and compound semiconductor markets [90] Other Important Information - Total cash as of March 31, 2023, was $493 million, with a positive cash flow of $17.1 million from operations [14] - Days outstanding for Q1 were 84 days, down from 90 days in the previous quarter [8] Q&A Session Summary Question: Impact of Tier 1 customer activity on gross margins - Tier 1 customers positively affect gross margins, but a less favorable product mix contributed to lower gross margins this quarter [16][18] Question: Strategic importance of the nine machine order - The order is considered strategically important due to the potential for significant future machine sales to a key customer in advanced packaging [19][36] Question: Confidence in compound semiconductor growth - Management is optimistic about the compound semiconductor market, particularly in automotive applications, and expects continued investment in capacity [26][44] Question: Gross margin dynamics and improvement timeline - Gross margin improvement is expected gradually, with a focus on product mix and cost reduction initiatives [45][62] Question: HBM market potential and growth - HBM currently accounts for about 10% of revenue, with potential for growth in related applications like DDR5 [76][97] Question: Competitive landscape and market dynamics - The competitive environment remains stable, with ongoing competition from established players in the industry [78]

Financial Liabilities and Risks - As of December 31, 2022, the company had net liabilities of approximately $9.7 million denominated in NIS, with a 1% fluctuation in the exchange rate causing an impact of $97 thousand on expenses or income [665]. - The company has no outstanding loans, indicating minimal exposure to interest rate changes [663]. - The company’s exposure to market risk from changes in interest rates is not significant due to the absence of outstanding loans [663]. Taxation - The tax rate for Preferred Enterprises in Development Zone A is set at 7.5%, compared to 16% in other areas, effective from January 1, 2017 [644]. - Special Preferred Technological Enterprises in Development Zone A benefit from a reduced tax rate of 6% [646]. - A 3% additional tax applies to annual taxable income exceeding NIS 663,240 for individuals subject to tax in Israel [659]. - The company is subject to withholding tax rates of 25% for individuals and 23% for corporations on the sale of publicly traded securities [654]. - The December 2016 Amendment introduced special tax tracks for Technological Enterprises, with rates varying from 5% to 12% depending on the enterprise type [646]. - Non-Israeli residents are generally exempt from Israeli capital gains tax on the sale of shares listed on the NASDAQ Global Market, provided certain conditions are met [651]. Pricing and Currency Exposure - The company’s products are primarily priced in U.S. Dollars, but in certain regions like Europe and Japan, prices are denominated in local currencies, which may affect competitiveness if local currencies devalue significantly [666].

Camtek Ltd. (NASDAQ:CAMT) Q4 2022 Earnings Conference Call February 16, 2023 9:00 AM ET Company Participants Kenny Green - Investor Relations Contact Officer Rafi Amit - Chairman and Chief Executive Officer Ramy Langer - Chief Operating Officer Moshe Eisenberg - Chief Financial Officer Conference Call Participants Tom O'Malley - Barclays Charles Shi - Needham and Company Gus Richard - Northland Securities Brian Chin - Stifel Financial Corp Craig Ellis - B. Riley Securities Kenny Green Ladies and gentlemen, ...