Exhibit 99.1 Camtek Ltd. and its Subsidiaries Interim Condensed Consolidated Financial Statements As of June 30, 2022 (Unaudited) Camtek Ltd. and its Subsidiaries Contents Page Interim Unaudited Condensed Consolidated Financial Statements as at June 30, 2022 F-3 | --- | --- | |------------------------------------------|------------------------------------| | Interim Unaudited Condensed Consolidated | Balance Sheets | | Interim Unaudited Condensed Consolidated | Statements of Operations | | Interim Unaudited ...

Camtek Ltd (NASDAQ:CAMT) Q2 2022 Earnings Conference Call July 27, 2022 9:00 AM ET Company Participants Kenny Green - IR Rafi Amit - Chairman & CEO Moshe Eisenberg - CFO Ramy Langer - COO Conference Call Participants Charles Shi - Needham & Company Thomas O'Malley - Barclays Bank Craig Ellis - B. Riley Securities Denis Pyatchanin - Stifel, Nicolaus & Company Kenny Green Ladies and gentlemen, thank you for standing by. I would like to welcome all of you to Camtek's results' Zoom webinar. My name is Kenny Gre ...

Camtek Ltd. (NASDAQ:CAMT) Q1 2022 Earnings Conference Call May 12, 2022 9:00 AM ET Company Participants Rafi Amit – Chief Executive Officer Ramy Langer – Chief Operating Officer Moshe Eisenberg – Chief Financial Officer Kenny Green – Investor Relations Conference Call Participants Brian Chin – Stifel, Nicolaus & Company Thomas O'Malley – Barclays Corporations & Investment Bank Charles Shi – Needham & Company Jamie Zakalik – Bank of America Securities Kenny Green Ladies and gentlemen, thank you for standing ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Ordinary Shares, nominal value NIS 0.01 per share CAMT Nasdaq Global Market FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO ...

Camtek Ltd. (NASDAQ:CAMT) Q4 2021 Earnings Conference Call February 10, 2022 9:00 AM ET Company Participants Kenny Green - Investor Relations Rafi Amit - Chief Executive Officer Moshe Eisenberg - Chief Financial Officer Ramy Langer - Chief Operating Officer Conference Call Participants Tom O'Malley - Barclays Brian Chin - Stifel Jamie Zakalik - Bank of America Charles Shi - Needham Gus Richard - Northland Kenny Green Ladies and gentlemen, thank you for standing by. I would like to welcome all of you to Camt ...

Financial Data and Key Metrics Changes - The company reported record revenues of $70.7 million for Q3 2021, representing a 76% increase year-over-year and a 5% increase quarter-over-quarter [22] - Gross profit was $36 million with a gross margin of 50.9%, compared to 48.8% in Q3 2020 and 52.1% in Q2 2021 [23] - Operating profit reached $21.7 million, up from $7.6 million in Q3 2020 and $18.5 million in Q2 2021, resulting in an operating margin of 30.6% [25][26] - Net income for Q3 2021 was $20 million, or $0.45 per diluted share, compared to $7.3 million, or $0.18 per share in Q3 2020 [26] Business Line Data and Key Metrics Changes - Approximately 50% of sales were from inspecting advanced packaging wafers, 20% from inspecting compound semi-wafers, and 15% from front-end applications [13] - The company is gradually increasing R&D investment and marketing channels to meet market demands [11] Market Data and Key Metrics Changes - In Q3, sales to Europe and the U.S. accounted for about 80% of total sales, with China remaining the largest territory [16][17] - The geographic revenue split was 82% from Asia and 18% from the rest of the world, indicating significant revenue growth from the U.S. and Europe [23] Company Strategy and Development Direction - The company plans to continue investing in R&D and adjust investment levels based on technological challenges [20] - The demand for semiconductor components is driving increased demand for inspection and metrology systems, positioning the company strongly in the market [21] Management's Comments on Operating Environment and Future Outlook - Management expects moderate revenue growth in the next quarter and positive signs for the first half of 2022, with a revenue guidance of $72 million to $73 million for Q4 [11][12] - The company is closely monitoring the energy situation in China but believes the semiconductor industry will be prioritized for energy allocation [17] Other Important Information - The company generated $16.5 million in cash from operations in Q3, with total cash and equivalents amounting to $215 million as of September 30, 2021 [28] - The company celebrated the shipment of its 1000th Eagle system, indicating strong product demand and innovation [19] Q&A Session Summary Question: Insights on quarter-to-date orders composition - Orders are from multiple Tier 1 customers across various applications, including advanced packaging and compound semi [31] Question: Context on the compound semi market size and sustainability - The compound semi market is growing faster than expected, and while it's hard to predict sustainability, it is building up to be a sizable business [34] Question: Clarification on operating expenses and future trajectory - Operating expenses were lower than anticipated due to a favorable sales channel mix, but an increase is expected in Q4 as R&D and sales expenses rise [36] Question: Expected delivery dates for recent orders - Most orders will be shipped in the first half of next year, with a few in Q4 [39] Question: DRAM market outlook - The company expects to ship multiple machines for DRAM applications in the first half of next year, with no changes in order firmness [40] Question: CMOS Image Sensor market expectations for 2022 - The company anticipates maintaining double-digit growth in the CMOS Image Sensors market next year [42] Question: Major evaluation at a global Tier 1 player - The opportunity involves multiple machines over the next couple of years in the area of advanced packaging [45] Question: Trends in U.S. and Europe market performance - Increased business is primarily from Tier 1 IDMs, with expansion in these regions contributing to revenue growth [46]

Financial Data and Key Metrics Changes - The company reported record revenues of $67.5 million for Q2 2021, an increase of 82% year-over-year and 18% quarter-over-quarter [20][24] - Gross margin improved to 52.1% compared to 46.1% in Q2 2020 and 50.7% in the previous quarter [21] - Operating margin was 27.4%, up from 17.2% in Q2 2020 and slightly higher than 27.2% in the previous quarter [23] - Net income for Q2 2021 was $17.1 million, or $0.38 per diluted share, compared to $6.3 million or $0.16 per share in Q2 2020 [24] Business Line Data and Key Metrics Changes - 88% of sales came from Asia, with 60% of systems sold for advanced packaging applications [16] - CMOS image sensors accounted for 18% of revenues, indicating solid performance in this segment [16] Market Data and Key Metrics Changes - The company expects continuous sales growth in the next two quarters, driven by demand in the semiconductor market, particularly from the transition to 5G and increased data center needs [10][11] - The automotive industry is undergoing significant changes, which the company anticipates will benefit its operations in the coming years [11] Company Strategy and Development Direction - The company is expanding production capacity to support long-term growth, including adding cleanroom space and increasing inventory levels [17] - The focus remains on high-growth segments, leveraging technology leadership and local support to outperform industry growth [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the market, noting strong demand for semiconductor components and a healthy backlog for the second half of the year [18] - The company expects Q3 revenues to be between $69 million and $71 million, reflecting ongoing demand [26] Other Important Information - The company is actively pursuing M&A opportunities, viewing it as a priority for cash use, although progress has been slower due to travel restrictions [58][62] - Inventory levels increased to $59 million to support current demand and ensure availability of key components [25] Q&A Session Summary Question: Clarification on revenue strength in Q2 - Management noted that both CMOS image sensors and advanced packaging saw stronger-than-expected performance, contributing to revenue growth [29][30] Question: Visibility into early 2022 - Management indicated positive customer sentiment and solid forecasts for the DRAM market, suggesting a strong outlook for early 2022 [32][34] Question: Supply chain issues impacting margins - Management acknowledged some supply chain pressures but stated they have managed to mitigate significant impacts on margins [36] Question: Advanced packaging demand trends - Management confirmed that the trend towards more bumps per wafer is a secular trend, indicating long-term growth potential in advanced packaging [40][42] Question: CMOS image sensor outsourcing trends - Management viewed the trend of IDMs outsourcing to foundries as neutral and expected continued healthy growth in the CMOS image sensor segment [46][48] Question: Inventory building perspective - Management confirmed that inventory building is ongoing and not expected to peak in Q3, as they prepare for continued revenue growth [64] Question: Areas of interest for M&A - Management is focused on finding companies with good synergy and profitability, although the process has been slowed by travel restrictions [62]

SEC Filing Information [Filing Details](index=1&type=section&id=Filing%20Details) This section details the administrative information for Camtek Ltd's Form 6-K filing for June 2021, confirming its status as a foreign private issuer filing under Form 20-F - Camtek Ltd. filed Form 6-K as a Report of Foreign Private Issuer for the month of June 2021[1](index=1&type=chunk) - The registrant files annual reports under **Form 20-F**[2](index=2&type=chunk) - The registrant is not furnishing information to the Commission pursuant to Rule 12g3-2(b)[3](index=3&type=chunk) [Signature](index=2&type=section&id=Signature) The Form 6-K report was duly signed on behalf of Camtek Ltd. by Moshe Eisenberg, Chief Financial Officer, on June 30, 2021, and is incorporated by reference into effective registration statements - The report was signed by **Moshe Eisenberg, Chief Financial Officer** of CAMTEK LTD[5](index=5&type=chunk) - The signing date was **June 30, 2021**[6](index=6&type=chunk) - This Form 6-K, including all exhibits, is incorporated by reference into all effective registration statements filed by the registrant under the Securities Act of 1933[5](index=5&type=chunk) Press Release: Camtek Receives $10M Order [Order Announcement](index=3&type=section&id=Order%20Announcement) Camtek Ltd. announced a significant $10 million order for multiple systems from a leading CMOS Image Sensor (CIS) manufacturer, reinforcing its strong market position - Camtek received a multiple systems' order totaling **$10 million**[8](index=8&type=chunk) - The order is from a leading **CMOS Image Sensor (CIS) manufacturer**[8](index=8&type=chunk) - This order maintains Camtek's momentum in the **CMOS Image Sensor market**[7](index=7&type=chunk) [Order Details and Product Capabilities](index=3&type=section&id=Order%20Details%20and%20Product%20Capabilities) The systems from the $10 million order are scheduled for delivery in Q4 2021 and Q1 2022, with the EagleT+ model highlighted for its advanced inspection capabilities - Systems are expected to be delivered in the **fourth quarter of 2021** and **first quarter of 2022**[9](index=9&type=chunk) - Camtek's latest model, **EagleT+**, is equipped with cutting-edge technologies to address complex production processes of CMOS Image Sensors[8](index=8&type=chunk) - The EagleT+ model is designed for the challenging inspection of **higher resolution and smaller pixel size** sensor areas[8](index=8&type=chunk) [Management Commentary and Business Overview](index=3&type=section&id=Management%20Commentary%20and%20Business%20Overview) CEO Rafi Amit affirms Camtek's leadership and positive momentum in the growing CMOS Image Sensors market, supported by its global high-end inspection and metrology equipment business [Management Commentary](index=3&type=section&id=Management%20Commentary) CEO Rafi Amit expressed satisfaction with Camtek's positive momentum and solid growth in the CMOS Image Sensors market, highlighting the company's strong position - CEO Rafi Amit commented on the **positive momentum throughout 2021** and **solid growth** in the CMOS Image Sensors market[9](index=9&type=chunk) - Camtek is positioned as the **leading supplier** of inspection and metrology systems to capitalize on ongoing trends[9](index=9&type=chunk) [About Camtek Ltd.](index=3&type=section&id=About%20Camtek%20Ltd.) Camtek develops and manufactures high-end inspection and metrology equipment for diverse segments of the global semiconductor industry - Camtek is a developer and manufacturer of high-end inspection and metrology equipment for the **semiconductor industry**[9](index=9&type=chunk) - Systems inspect ICs and measure IC features on wafers throughout the production process, covering **front-end, mid-end, and post-dicing**[9](index=9&type=chunk) - Key market segments served include **Advanced Interconnect Packaging, Memory, CMOS Image Sensors, MEMS, and RF**, serving global IDMs, OSATs, and foundries[9](index=9&type=chunk) - Camtek operates with **eight offices worldwide**, providing best-in-class sales and customer support[10](index=10&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section disclaims forward-looking statements, noting they are subject to risks and uncertainties, and Camtek assumes no obligation to update them - The press release contains projections or other forward-looking statements regarding future events or performance[11](index=11&type=chunk) - These statements are subject to risks and uncertainties that may cause actual events or results to differ materially from those projected[11](index=11&type=chunk) - Identified risks include changes in delivery timeframe, general economic conditions, the effect of the **COVID-19 crisis**, concentration of business in certain countries, changing industry trends, and increased competition[11](index=11&type=chunk) - Camtek does not assume any obligation to update this information, except as required by law[11](index=11&type=chunk)

Financial Data and Key Metrics Changes - The company reported Q1 2021 revenues of $57.4 million, a 90% increase compared to Q1 2020 and an 18% increase from the previous quarter [18] - Gross profit for the quarter was $29.1 million, with a gross margin of 50.7%, up from 45.2% in Q1 2020 and 48.2% in the previous quarter [19] - Operating profit was $15.6 million, resulting in an operating margin of 27.2%, compared to 12.2% in Q1 2020 and 18.9% last quarter [20] - Net income for Q1 2021 was $14.6 million, or $0.33 per diluted share, compared to $3.6 million or $0.09 per share in Q1 2020 [22] - The company expects revenues of $63 million to $65 million in Q2 2021 [24] Business Line Data and Key Metrics Changes - 88% of sales came from Asia, with China being the largest territory [15] - 50% of installed systems are for advanced packaging applications, which are expected to continue growing [15] - Other significant applications include compound semiconductors, MEMS, CIS, RF, and macro defect inspection [15] Market Data and Key Metrics Changes - Demand for semiconductor components is driven by increased needs for laptops, tablets, data centers, and cloud infrastructures due to the work-from-home trend [11] - The adoption of 5G technology has led to higher demand for electronic components, requiring more inspection and metrology [12] - The automotive industry is shifting towards electric vehicles and advanced driver assistance systems, increasing the need for extensive electronic components [13] Company Strategy and Development Direction - The company aims to expand its business in high-end advanced packaging as the industry adopts new applications [14] - The management is actively searching for potential M&A opportunities to create shareholder value [32] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in continued revenue growth in the upcoming quarters, with expectations for Q2 and Q3 to show sequential increases [10][30] - The company is well-positioned to meet the growing demand for inspection systems due to high demand for semiconductor components [17] Other Important Information - Inventory levels increased by $5 million to support expected growth, and accounts receivable rose by $13.5 million due to increased sales [23] - The company generated $2.7 million in cash from operations during the quarter [24] Q&A Session Summary Question: Clarification on operating expenses and gross margin expectations - Management indicated that operating expenses will increase to support growth but not significantly, with gross margins expected to remain between 50% to 52% in the coming quarters [27][28] Question: Revenue expectations for Q3 - Management expects continued growth in Q3, with a few million in gross rate expected each quarter [30] Question: Plans for cash deployment - The company is actively searching for M&A opportunities but is cautious due to travel restrictions [32] Question: Memory business outlook - Management expects any potential business from memory customers to materialize in early next year [37] Question: CMOS Image Sensor revenue expectations - Management anticipates a positive year for CMOS Image Sensors, with expectations for growth compared to the current year [41] Question: Advanced packaging market outlook - Management believes advanced packaging will continue to grow in the foreseeable future, driven by trends in high-performance computing [44][46] Question: Revenue breakdown by application - Management provided a high-level breakdown, indicating around 55% from advanced packaging and 10% from CMOS Image Sensors [77]

[Form 20-F Filing Information](index=1&type=section&id=Form%2020-F%20Filing%20Information) This section outlines Camtek Ltd.'s Form 20-F filing for fiscal year 2020, confirming its Israeli corporation status, Nasdaq listing, and U.S. GAAP compliance - Camtek Ltd. is an Israeli company, filing its Annual Report on Form 20-F for the fiscal year ended December 31, 2020[1](index=1&type=chunk)[2](index=2&type=chunk) - The company's Ordinary Shares (CAMT) are registered on the Nasdaq Global Market[3](index=3&type=chunk) - Camtek is classified as an **Accelerated Filer** and prepares its financial statements in accordance with U.S. GAAP[10](index=10&type=chunk) - The company is not a well-known seasoned issuer and is not a shell company[4](index=4&type=chunk)[5](index=5&type=chunk)[11](index=11&type=chunk)[12](index=12&type=chunk) - Camtek has filed all required reports during the preceding 12 months and has submitted electronically every Interactive Data File[6](index=6&type=chunk)[7](index=7&type=chunk)[8](index=8&type=chunk) PART I [Item 1. Identity of Directors, Senior Management and Advisers.](index=4&type=section&id=Item%201.%20Identity%20of%20Directors%2C%20Senior%20Management%20and%20Advisers.) This item is not applicable to the company's filing [Item 2. Offer Statistics and Expected Timetable.](index=4&type=section&id=Item%202.%20Offer%20Statistics%20and%20Expected%20Timetable.) This item is not applicable to the company's filing [Item 3. Key Information.](index=4&type=section&id=Item%203.%20Key%20Information.) This section provides essential information on Camtek, including selected financial data and a comprehensive overview of business, share, and Israeli operations risk factors [A. Selected Consolidated Financial Data.](index=6&type=section&id=A.%20Selected%20Consolidated%20Financial%20Data.) This sub-section presents a five-year summary of selected consolidated financial data, including income statement and balance sheet data, prepared under U.S. GAAP - Selected Statement of Income Data (2016-2020, in thousands USD) | Metric | 2020 | 2019 | 2018 | 2017 | 2016 | | :-------------------------------- | :----- | :----- | :----- | :----- | :----- | | Revenues | 155,859 | 134,019 | 123,174 | 93,485 | 79,228 | | Gross profit | 73,231 | 64,784 | 60,796 | 45,519 | 32,490 | | Operating income (loss) | 22,624 | 21,972 | 20,033 | (3,037) | 2,019 | | Net income | 21,778 | 21,986 | 18,731 | 13,962 | 4,734 | | Basic net earnings per share | 0.55 | 0.58 | 0.52 | 0.40 | 0.13 | | Diluted net earnings per share | 0.54 | 0.57 | 0.51 | 0.39 | 0.13 | - Selected Balance Sheet Data (2016-2020, in thousands USD) | Metric | 2020 | 2019 | 2018 | 2017 | 2016 | | :-------------------------------- | :----- | :----- | :----- | :----- | :----- | | Cash and cash equivalents | 105,815 | 38,047 | 54,935 | 43,744 | 19,740 | | Short-term deposits | 72,000 | 51,500 | - | - | - | | Total assets | 287,908 | 170,369 | 141,547 | 113,036 | 105,558 | | Total liabilities | 60,644 | 34,067 | 40,140 | 28,735 | 32,193 | | Total shareholders' equity | 227,264 | 136,302 | 101,407 | 84,301 | 73,365 | - Revenues increased by **16.3%** from **$134,019 thousand** in 2019 to **$155,859 thousand** in 2020[29](index=29&type=chunk) - Cash and cash equivalents significantly increased from **$38,047 thousand** in 2019 to **$105,815 thousand** in 2020[29](index=29&type=chunk) [B. Capitalization and Indebtedness.](index=8&type=section&id=B.%20Capitalization%20and%20Indebtedness.) This item is not applicable to the company's filing [C. Reasons for the Offer and Use of Proceeds.](index=8&type=section&id=C.%20Reasons%20for%20the%20Offer%20and%20Use%20of%20Proceeds.) This item is not applicable to the company's filing [D. Risk Factors.](index=9&type=section&id=D.%20Risk%20Factors.) This section identifies various risks that could materially affect the company's business, financial condition, and share price, including pandemic impacts, industry cyclicality, competition, supply chain, cybersecurity, and geopolitical factors [Risks Relating to the COVID-19 Pandemic ("COVID-19")](index=9&type=section&id=Risks%20Relating%20to%20the%20COVID-19%20Pandemic%20(%22COVID-19%22)) - The global COVID-19 pandemic may continue to negatively impact the global economy and adversely affect operating results due to macro-economic uncertainty and disruption[38](index=38&type=chunk)[39](index=39&type=chunk) - Potential challenges include economic downturn, disruptions to production and installation, supply chain issues, increased shipment costs, disruptions to marketing and sales, lower work efficiency, and financial difficulties of major customers[40](index=40&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk)[45](index=45&type=chunk)[47](index=47&type=chunk) [Risk Factors Related to Our Business and Our Markets](index=11&type=section&id=Risk%20Factors%20Related%20to%20Our%20Business%20and%20Our%20Markets) - Dependence on the cyclical semiconductor industry; unfavorable economic conditions or low capital expenditures may negatively impact operating results[49](index=49&type=chunk)[50](index=50&type=chunk) - Highly competitive markets with dominant participants and rapidly evolving technology could adversely affect sales terms, profits, and lead to revenue loss[51](index=51&type=chunk)[52](index=52&type=chunk)[54](index=54&type=chunk)[55](index=55&type=chunk) - A substantial majority (**88% in 2020**) of sales are to the Asia Pacific region, subjecting the company to additional risks from political/economic instability, natural disasters, and trade restrictions (e.g., U.S. policy towards China)[56](index=56&type=chunk)[57](index=57&type=chunk) - Quarterly operating results vary significantly due to factors like global economic conditions, demand changes, order schedules, product introductions, and currency fluctuations[58](index=58&type=chunk)[59](index=59&type=chunk)[60](index=60&type=chunk)[61](index=61&type=chunk) - Dependence on a limited number of suppliers and subcontractors for key components poses risks of delays, disruptions, quality control problems, increased costs, and potential order cancellations[65](index=65&type=chunk)[66](index=66&type=chunk)[68](index=68&type=chunk)[69](index=69&type=chunk)[70](index=70&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk)[73](index=73&type=chunk) - Increased cyber-attacks, data breaches, and evolving privacy laws (like GDPR) could result in liabilities, increased costs, damage to reputation, and adverse effects on business[75](index=75&type=chunk)[76](index=76&type=chunk)[77](index=77&type=chunk)[78](index=78&type=chunk) - Fluctuations in currency exchange rates, particularly NIS relative to the U.S. Dollar, may increase costs or make products less competitive, negatively impacting profitability[79](index=79&type=chunk)[80](index=80&type=chunk) - Inability to protect intellectual property (patents, copyrights, trade secrets) could affect competitive advantage and incur significant expenses, with past litigation history[84](index=84&type=chunk)[85](index=85&type=chunk)[86](index=86&type=chunk)[87](index=87&type=chunk)[88](index=88&type=chunk) - Failure to maintain effective internal control over financial reporting in accordance with Sarbanes-Oxley Act Section 404 could adversely affect operating results and investor confidence[98](index=98&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk) [Risks Relating to Our Ordinary Shares](index=19&type=section&id=Risks%20Relating%20to%20Our%20Ordinary%20Shares) - Sales of ordinary shares, including those from option exercises, may depress the share price and impair the ability to raise capital[101](index=101&type=chunk) - Share price and trading volumes have been volatile and may continue to fluctuate due to global economic conditions, product attractiveness, financial performance, corporate transactions, and analyst estimates[102](index=102&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk) - Principal shareholders (Priortech and Chroma) hold a controlling interest (**39.23% combined**) and can influence corporate matters, potentially creating conflicts of interest[106](index=106&type=chunk)[107](index=107&type=chunk)[109](index=109&type=chunk)[110](index=110&type=chunk) - Classification as a **Passive Foreign Investment Company (PFIC)** could result in adverse U.S. tax consequences for U.S. shareholders[111](index=111&type=chunk) - Dual listing on Nasdaq and TASE may result in price variations due to different currencies, trading times, and market factors[112](index=112&type=chunk) [Risks Relating to Our Operations in Israel](index=22&type=section&id=Risks%20Relating%20to%20Our%20Operations%20in%20Israel) - Operations are headquartered in Israel, making them susceptible to political, economic, and military conditions in the Middle East and Israel, including hostilities, trade interruptions, and military service obligations for employees[114](index=114&type=chunk)[115](index=115&type=chunk)[116](index=116&type=chunk)[117](index=117&type=chunk) - Ability to take advantage of Israeli government programs and tax benefits may change, potentially increasing tax expenses or requiring refunds of past benefits[119](index=119&type=chunk) - Government grants for R&D from the Israel Innovation Authority (IIA) impose restrictions on utilization of funded know-how and may require royalty payments or increased royalties for transfers outside Israel[120](index=120&type=chunk)[121](index=121&type=chunk)[122](index=122&type=chunk) - As a foreign private issuer, the company is exempt from certain SEC requirements and Nasdaq Rules, which may result in less protection for investors compared to domestic issuers[126](index=126&type=chunk)[127](index=127&type=chunk) - Provisions of Israeli law (corporate law, tender offer rules, tax considerations, competition law) may delay, prevent, or make undesirable an acquisition of the company[128](index=128&type=chunk)[129](index=129&type=chunk)[130](index=130&type=chunk) [Item 4. Information on the Company.](index=20&type=section&id=Item%204.%20Information%20on%20the%20Company.) This section details Camtek's history, business overview, organizational structure, and assets, highlighting its evolution to high-end semiconductor inspection and metrology [A. History and Development of the Company](index=25&type=section&id=A.%20History%20and%20Development%20of%20the%20Company) Camtek Ltd., incorporated in 1987, transitioned from PCB inspection to semiconductor inspection and metrology, consolidating products under the 'Eagle' platform and securing investment from Chroma ATE Inc - Incorporated in Israel in **1987**, public since July **2000**[134](index=134&type=chunk) - Sold PCB inspection business unit in **2017** for **$32 million cash**, plus an additional **$1.257 million** in 2019, to focus on semiconductor Inspection and Metrology[137](index=137&type=chunk) - Raised **$64.3 million net** from a public offering of **4,025,000 ordinary shares** in November 2020[139](index=139&type=chunk) - Chroma ATE Inc. acquired **6,117,440 ordinary shares** from Priortech and **1,700,000 new shares** from Camtek in February 2019, resulting in Chroma holding **18.06%** and Priortech **21.17%** of ordinary shares as of March 9, 2021[140](index=140&type=chunk) - A Technological Cooperation Agreement was signed with Chroma, granting a license for triangulation technology for non-semiconductor applications[142](index=142&type=chunk) [B. Business Overview.](index=27&type=section&id=B.%20Business%20Overview.) Camtek develops high-end semiconductor inspection and metrology equipment, enhancing yield across wafer production processes, driven by electronics demand, and maintains a global distribution network [Our Business](index=27&type=section&id=Our%20Business) - Camtek is a developer and manufacturer of high-end inspection and metrology equipment for the semiconductor industry[144](index=144&type=chunk) - Systems inspect and measure IC features on wafers throughout the production process (front, mid, and back-end), enhancing end-product yield by sorting good dies[144](index=144&type=chunk)[145](index=145&type=chunk)[146](index=146&type=chunk) [Our Markets](index=27&type=section&id=Our%20Markets) - Semiconductor industry growth is driven by smartphones, IoT, cloud computing, 5G networks, AI, automotive, and industrial electronics[147](index=147&type=chunk) - Demand for inspection and metrology systems is fueled by increasing manufacturing volume and the need for higher reliability in applications such as automotive and mobile phones[147](index=147&type=chunk) - Focus on fast-growing advanced packaging (Fan Out Wafer Level Packaging, Heterogeneous Integration), High Bandwidth Memory (HBM), CMOS Image Sensors (CIS), and 5G mobile communications[149](index=149&type=chunk)[150](index=150&type=chunk)[151](index=151&type=chunk)[152](index=152&type=chunk)[153](index=153&type=chunk) - Penetrated front-end macro inspection for defect-free and high-yield wafer manufacturing with the Eagle platform[154](index=154&type=chunk) [Product Lines](index=28&type=section&id=Product%20Lines) - Systems consist of an electro-optical assembly, a precise movable table, and an electronic hardware unit with proprietary algorithms for image processing and defect analysis[155](index=155&type=chunk) - All semiconductor inspection and metrology products are consolidated under the **'Eagle' product lines** (Eagle-i, Eagle-AP, Golden Eagle), phasing out older models[159](index=159&type=chunk)[160](index=160&type=chunk) - Intends to offer software solutions like Automatic Defect Classification (ADC) utilizing deep learning techniques[160](index=160&type=chunk) [Customers](index=29&type=section&id=Customers) - Target customers include wafer manufacturers, outsourced semiconductor assembly and test (OSAT), integrated device manufacturers (IDM), and wafer level packaging subcontractors across Asia, Europe, and North America[161](index=161&type=chunk)[162](index=162&type=chunk) - In 2020, no individual customer accounted for more than **10%** of total revenues; in 2019, one customer accounted for **11%**[162](index=162&type=chunk)[761](index=761&type=chunk) - Installed base was approximately **1,200 systems** as of December 31, 2020[162](index=162&type=chunk) - Revenues by Geographical Region (in thousands USD) | | 2020 | 2019 | 2018 | | :---------------- | :----- | :----- | :----- | | Asia Pacific | 137,555 | 115,925 | 98,468 | | United States | 9,847 | 10,388 | 13,227 | | Europe | 8,457 | 7,706 | 11,479 | | **Total** | **155,859** | **134,019** | **123,174** | [Marketing and Customer Support](index=30&type=section&id=Marketing%20and%20Customer%20Support) - Maintains a global distribution and support network, primarily using its own employees, with a focus on the Asia Pacific region[165](index=165&type=chunk)[166](index=166&type=chunk) - Offers a **12-month warranty** and fee-based service/maintenance contracts[167](index=167&type=chunk) - Secures customer payments via letters of credit and advanced payments[168](index=168&type=chunk) [Manufacturing](index=30&type=section&id=Manufacturing) - Manufacturing involves assembly and final integration of parts from third-party vendors and subcontractors, with the Eagle system manufactured by two Israeli contractors[169](index=169&type=chunk) - Relies on single/limited source suppliers for essential components and maintains several months of inventory[170](index=170&type=chunk) - Manufacturing facility located in Migdal Ha'Emek, Israel[171](index=171&type=chunk) [Competition](index=30&type=section&id=Competition) - Operates in a highly competitive market with main competitors including Onto Innovations, Skyverse, ATI Electronics, Cheng Mei Instrument Technology, ASTI Holding, Toray Industries, and KLA-Tencor[172](index=172&type=chunk) - Competitive advantages include R&D in image acquisition/processing, proprietary core technologies, competitive pricing, fast response to customer needs, product compatibility, and strong global pre/post-sale support[174](index=174&type=chunk)[175](index=175&type=chunk) [The Israel Innovation Authority](index=31&type=section&id=The%20Israel%20Innovation%20Authority) - Receives government grants from the IIA for R&D, with an obligation to pay royalties (**3-6% of revenues**) up to **100%** of the grant amount plus LIBOR interest[176](index=176&type=chunk)[177](index=177&type=chunk) - Requires IIA approval for manufacturing products incorporating Financed Know-how outside Israel (subject to increased royalties up to **300%** of grant) or transferring Financed Know-How to third parties (subject to payments up to **six times** the grant)[178](index=178&type=chunk)[179](index=179&type=chunk) - Total unrepaid grants from IIA (including interest) were **$7.6 million** as of December 31, 2020[182](index=182&type=chunk) [Capital Expenditures](index=32&type=section&id=Capital%20Expenditures) - Capital Expenditures in Fixed Assets (in thousands USD) | | 2020 | 2019 | 2018 | | :-------------------------------- | :----- | :----- | :----- | | Machinery and equipment | 2,939 | 1,998 | 1,902 | | Right of use (ROU) assets | 831 | 904 | - | | Computer equipment and software | 631 | 305 | 604 | | Building and leasehold improvements | 273 | 154 | 1,327 | | Vehicles | 176 | - | - | | Office furniture and equipment | 168 | 97 | 96 | | **Total** | **$5,018** | **$3,458** | **$3,929** | [Material Effects of Governmental Regulations](index=32&type=section&id=Material%20Effects%20of%20Governmental%20Regulations) - Complies with EU directives (Machinery 2006/42/EC, EMC 2004/108/EC) and SEMI Standards (S-2, S-8) for the semiconductor fabrication industry[185](index=185&type=chunk) [C. Organizational Structure](index=32&type=section&id=C.%20Organizational%20Structure) Camtek Ltd. is jointly controlled by Priortech and Chroma via a voting agreement, operating through wholly-owned subsidiaries globally - Priortech holds **21.17%** and Chroma holds **18.06%** of outstanding ordinary shares, exercising joint control via a voting agreement[186](index=186&type=chunk)[140](index=140&type=chunk) - Camtek Subsidiaries and Jurisdictions of Incorporation | Name of Subsidiary | Jurisdiction of Incorporation | | :--------------------------------- | :---------------------------- | | Camtek H.K. Ltd. | Hong Kong | | Camtek USA Inc. | New Jersey, USA | | Camtek (Europe) NV | Belgium | | Camtek Germany GmbH | Germany | | Camtek Inspection Technology (Suzhou) Ltd. | China | | Camtek Japan Ltd. | Japan | | Camtek Inspection Technology Limited | Taiwan | | Camtek South East Asia Pte Ltd. | Singapore | | Camtek Korea Ltd. | South Korea | [D. Property, Plants and Equipment](index=33&type=section&id=D.%20Property%2C%20Plants%20and%20Equipment) The company's main office, manufacturing, and R&D facilities are in Migdal Ha'Emek, Israel, with additional leased global sales and demonstration centers - Headquarters, manufacturing, and R&D facilities in Migdal Ha'Emek, Israel, cover **84,500 sq ft** (**16,000 sq ft** for manufacturing)[189](index=189&type=chunk) - Global sales offices and demonstration centers occupy an aggregate of approximately **27,800 sq ft**[190](index=190&type=chunk) [Item 4A. Unresolved Staff Comments.](index=33&type=section&id=Item%204A.%20Unresolved%20Staff%20Comments.) There are no unresolved staff comments for the company [Item 5. Operating and Financial Review and Prospects.](index=33&type=section&id=Item%205.%20Operating%20and%20Financial%20Review%20and%20Prospects.) This section analyzes Camtek's financial condition and operations, covering business overview, accounting policies, period-to-period results, liquidity, R&D, market trends, and obligations [A. Operating Results](index=33&type=section&id=A.%20Operating%20Results) Camtek's operating results show increased 2020 revenues and net income, driven by semiconductor inspection solutions, with a revenue recognition policy change and higher R&D and SG&A expenses [General Overview](index=34&type=section&id=General%20Overview) - Camtek designs, develops, manufactures, and markets automated inspection and metrology solutions for the semiconductor fabrication industry[196](index=196&type=chunk) - **88%** of total revenues in 2020 were from the Asia Pacific region (South Korea, China, Taiwan, South East Asia)[198](index=198&type=chunk) - Revenue from product sales is recognized upon transfer of control, generally upon shipment since October 2020 (previously upon installation), due to streamlined pre-shipment processes[203](index=203&type=chunk)[676](index=676&type=chunk) - Service revenues from maintenance contracts are recognized ratably over the contract period[204](index=204&type=chunk)[678](index=678&type=chunk) [Critical Accounting Policies](index=34&type=section&id=Critical%20Accounting%20Policies) - Revenue Recognition: Policy changed in October 2020 from installation to shipment for product sales, due to streamlined pre-shipment processes[203](index=203&type=chunk)[676](index=676&type=chunk) - Valuation of Inventory: Inventory write-offs amounted to **$0.1 million** in 2020 and **$0.2 million** in 2019. Long-term inventory (non-current) was **$4.4 million** as of December 31, 2020[210](index=210&type=chunk)[707](index=707&type=chunk)[708](index=708&type=chunk) - Leases: Adopted **ASC Topic 842** on January 1, 2019, recognizing Right-of-Use (ROU) assets and lease liabilities[219](index=219&type=chunk)[696](index=696&type=chunk) [Comparison of Period-to-Period Results of Operations](index=37&type=section&id=Comparison%20of%20Period-to-Period%20Results%20of%20Operations) - Revenues increased by **16%** to **$155.9 million** in 2020 from **$134.0 million** in 2019, primarily due to increased product unit sales[229](index=229&type=chunk) - Gross profit increased by **13%** to **$73.2 million** in 2020 from **$64.8 million** in 2019. Gross margin decreased to **47.0%** in 2020 from **48.3%** in 2019, mainly due to product and sales mix[230](index=230&type=chunk) - Research and development costs increased to **$19.6 million** in 2020 from **$16.3 million** in 2019, due to higher investment in new products/technologies and increased headcount[231](index=231&type=chunk) - Selling, general and administrative expenses increased by **17%** to **$31.0 million** in 2020 from **$26.5 million** in 2019, mainly due to increased commissions, salaries, and shipping expenses, offset by decreased travel[232](index=232&type=chunk) - Net income from continuing operations increased to **$21.8 million** in 2020 from **$20.8 million** in 2019, driven by increased revenues[234](index=234&type=chunk) [B. Liquidity and Capital Resources](index=38&type=section&id=B.%20Liquidity%20and%20Capital%20Resources) Camtek's liquidity significantly improved in 2020 to **$177.8 million** cash and deposits, driven by a public offering and benefiting from Israeli 'Approved Enterprise' tax status - Cash and cash equivalents and short-term deposits totaled approximately **$177.8 million** at December 31, 2020, a significant increase from **$89.5 million** at December 31, 2019[235](index=235&type=chunk) - The increase in cash and cash equivalents mainly results from a successful public offering in November 2020, which raised **$64.3 million net**[235](index=235&type=chunk)[236](index=236&type=chunk) - Working capital increased to approximately **$204.5 million** in 2020 from **$116.1 million** in 2019[238](index=238&type=chunk) - Cash Flow Summary (in thousands USD) | Cash Flow Activity | 2020 | 2019 | | :-------------------------------- | :----- | :----- | | Net cash provided by operating activities | 25,752 | 24,626 | | Net cash used in investing activities | (23,126) | (51,605) | | Net cash provided by financing activities | 64,917 | 10,017 | - The company benefits from **'Approved Enterprise' status** in Israel, providing tax exemption for **10 years** on income from approved enterprises in Zone 'A'[244](index=244&type=chunk) - As of December 31, 2020, approximately **$22.3 million** of prior year earnings were tax-exempt from Approved Enterprise and **$3.4 million** from Beneficiary Enterprise, which the company intends to indefinitely reinvest[250](index=250&type=chunk)[252](index=252&type=chunk) [C. Research and Development, Patents and Licenses.](index=40&type=section&id=C.%20Research%20and%20Development%2C%20Patents%20and%20Licenses.) Camtek prioritizes intensive R&D for new products and improvements, supported by Israeli teams, and protects its intellectual property through 153 patents and other legal mechanisms - R&D is essential for business, focusing on improving defect detection, increasing throughput, providing unique solutions, and expanding market segments[255](index=255&type=chunk)[256](index=256&type=chunk)[257](index=257&type=chunk) - **93 employees** engaged in R&D, all based in Israel, with subcontractors for hardware components[258](index=258&type=chunk) - R&D expenses were **$19.6 million** in 2020 (**12.6%** of total revenues) and **$16.3 million** in 2019 (**12.2%** of total revenues)[258](index=258&type=chunk) - Protects intellectual property through patents, copyrights, trade secrets, trademarks, and non-disclosure agreements[261](index=261&type=chunk) - Holds **153 issued and applied-for patents** worldwide (**99 registered**) and **6 U.S. provisional applications**[262](index=262&type=chunk) [D. Trend Information](index=41&type=section&id=D.%20Trend%20Information) The outlook for 2021 and beyond is positive, driven by semiconductor industry trends like AI and IoT, though the COVID-19 pandemic introduces unpredictable implications - Positive outlook for 2021 and beyond, as projected by VLSI Research and SEMI Organization[263](index=263&type=chunk) - Key drivers for future semiconductor demand include mobile devices, data centers, Artificial Intelligence, AR/VR, smart sensors, and IoT[263](index=263&type=chunk) - The global COVID-19 pandemic may impose unpredictable implications on the global economy and semiconductor industry[263](index=263&type=chunk) [E. Off-Balance Sheet Arrangements.](index=41&type=section&id=E.%20Off-Balance%20Sheet%20Arrangements.) The company has no material off-balance sheet arrangements, only non-cancelable operating lease agreements for office space and vehicles - The company does not have any material off-balance sheet arrangements[264](index=264&type=chunk) - Minimum future rental payments under non-cancelable operating lease agreements were approximately **$1.5 million** as of December 31, 2020[265](index=265&type=chunk) [F. Contractual Obligations and Other Commercial Commitments.](index=42&type=section&id=F.%20Contractual%20Obligations%20and%20Other%20Commercial%20Commitments.) As of December 31, 2020, Camtek had total contractual obligations of **$42.2 million**, primarily for inventory purchase commitments and other long-term obligations - Contractual Obligations as of December 31, 2020 (in thousands USD) | Obligation Type | Total | Less than 1 Year | 1 - 3 years | 3 - 5 years | More than 5 years | | :---------------------- | :---- | :--------------- | :---------- | :---------- | :---------------- | | Purchase obligations | 39,433 | 39,433 | - | - | - | | Severance obligation | 1,239 | - | - | - | 1,239 | | Other long-term obligations | 1,543 | 809 | 645 | 89 | - | | **Total** | **42,215** | **40,242** | **645** | **89** | **1,239** | - Purchase obligations mainly represent outstanding purchase commitments for inventory components ordered in the normal course of business[267](index=267&type=chunk) - Other long-term obligations include approximately **$1.0 million** for vehicle operating leases and **$0.6 million** for office space leases as of December 31, 2020[267](index=267&type=chunk) [Item 6. Directors, Senior Management and Key Employees](index=38&type=section&id=Item%206.%20Directors%2C%20Senior%20Management%20and%20Key%20Employees) This section outlines the company's leadership, compensation, board practices, corporate governance, and employee and share ownership information [A. Directors and Senior Management](index=43&type=section&id=A.%20Directors%20and%20Senior%20Management) This section lists the names, ages, and positions of Camtek's directors and senior management, including CEO Rafi Amit and CFO Moshe Eisenberg, highlighting their experience - Directors and Senior Management | Name | Age | Title | | :--------------------- | :-- | :------------------------------------------------ | | Rafi Amit | 72 | Chief Executive Officer and Chairman of the Board of Directors | | Yotam Stern | 68 | Director | | Leo Huang | 69 | Director | | I-Shih Tseng | 59 | Director | | Yael Andorn | 50 | Director (External, Audit Committee Chairperson) | | Yosi Shacham-Diamand | 67 | Director (External) | | Moty Ben-Arie | 66 | Director | | Orit Stav | 50 | Director | | Moshe Eisenberg | 54 | Chief Financial Officer | | Ramy Langer | 67 | Chief Operating Officer | | Orit Geva Dvash | 49 | Vice President - Human Resources | - Ms. Yael Andorn and Prof. Yosi Shacham-Diamand serve as external directors[270](index=270&type=chunk) - No family relationships exist among the listed directors and senior management[286](index=286&type=chunk) [B. Compensation](index=45&type=section&id=B.%20Compensation) Aggregate remuneration for directors and senior management in 2020 was approximately **$3.2 million**, including performance-based bonuses and equity compensation, aligned with long-term strategic objectives - Aggregate remuneration paid to all directors and senior management for 2020 was approximately **$3,203,125**, including **$187,809** for pension, retirement, or similar benefits[287](index=287&type=chunk) - Executive officers are part of a performance-based bonus plan, with up to **50%** qualitative objectives (CEO's qualitative portion capped at **three monthly base salaries**)[288](index=288&type=chunk) - Independent directors receive cash fees and equity-based compensation (share options or RSUs); directors representing Priortech and Chroma do not receive compensation for their board service[290](index=290&type=chunk) - Individual Compensation of Covered Office Holders (2020, in USD) | Name and Principal Position | Salary Cost | Bonus | Equity-Based Compensation | Other | Total | | :---------------------------------- | :---------- | :---- | :------------------------ | :---- | :------ | | Rafi Amit – Chief Executive Officer | 313,134 | 212,625 | 586,144 | 105,832 | 1,217,735 | | Ramy Langer - Chief Operating Officer | 348,689 | 89,840 | 333,572 | - | 772,101 | | Moshe Eisenberg - Chief Financial Officer | 309,474 | 87,340 | 318,917 | - | 715,731 | | Orit Geva-Dvash - Vice President, Human Resources | 169,155 | 39,464 | 163,265 | - | 371,884 | | Yael Andorn – Director, Chairwoman of the Audit Committee | - | - | 7,063 | 38,832 | 45,895 | | **Total** | **1,140,452** | **429,269** | **1,408,961** | **144,664** | **3,123,346** | - Mr. Amit's employment agreement includes an annual base salary of **$313,134** and an annual performance-based bonus, with a cash bonus of **$212,625** for 2019 and a one-time special cash bonus of **$100,000** in 2020[299](index=299&type=chunk) [C. Board Practices](index=47&type=section&id=C.%20Board%20Practices) Camtek's board practices adhere to Israeli corporate governance and Nasdaq Rules, with an eight-member Board, Audit and Nomination Committees, and a shareholder-approved compensation policy for Office Holders [Corporate Governance Practices](index=47&type=section&id=Corporate%20Governance%20Practices) - As a foreign private issuer, Camtek follows Israeli corporate governance rules in lieu of certain Nasdaq Rules, except for audit committee composition and independence[302](index=302&type=chunk) [General Board Practices](index=48&type=section&id=General%20Board%20Practices) - The Board of Directors consists of **eight members**, including two external directors and representatives from Priortech and Chroma[304](index=304&type=chunk)[305](index=305&type=chunk) - The Board retains all powers in managing the company not specifically granted to shareholders and can appoint committees[306](index=306&type=chunk)[308](index=308&type=chunk) [Election, Terms and Skills of Directors](index=48&type=section&id=Election%2C%20Terms%20and%20Skills%20of%20Directors) - Directors, other than external directors, are elected annually by shareholders[310](index=310&type=chunk) - Candidates must submit a declaration confirming they possess the required skills and ability to devote appropriate time to the role[311](index=311&type=chunk) [Independent Directors](index=49&type=section&id=Independent%20Directors) - **Six** of the **eight** Board members qualify as independent directors under Nasdaq Rules; **four** qualify under the Companies Law[316](index=316&type=chunk) [External Directors](index=49&type=section&id=External%20Directors) - The company is required to appoint at least **two external directors** who must meet specific independence criteria and possess 'accounting and financial expertise' or 'professional qualifications'[317](index=317&type=chunk)[318](index=318&type=chunk)[329](index=329&type=chunk) - External directors are elected by a special majority shareholder vote and serve **three-year terms**, which may be extended for **two additional three-year periods**[321](index=321&type=chunk)[325](index=325&type=chunk) - Ms. Yael Andorn (accounting and financial expertise) and Prof. Yosi Shacham-Diamand (professional qualifications) serve as external directors until **October 2, 2021**[331](index=331&type=chunk) [Remuneration of Directors](index=51&type=section&id=Remuneration%20of%20Directors) - Directors' remuneration must be consistent with the company's compensation policy and generally requires approval from the compensation committee, board of directors, and shareholders[332](index=332&type=chunk) - External and independent directors receive a fixed annual fee of **NIS 70,000** (approx. **$20,335**), fixed participation fees for meetings, and reimbursement of expenses[336](index=336&type=chunk) - Messrs. Amit, Stern, Huang, and Tseng do not receive any compensation for their service as directors[337](index=337&type=chunk) [Committees of the Board of Directors](index=53&type=section&id=Committees%20of%20the%20Board%20of%20Directors) - The Audit Committee consists of Ms. Yael Andorn (Chairperson, financial expert), Mr. Moty Ben Arie, and Mr. Yosi Shacham-Diamand, all independent directors[345](index=345&type=chunk)[592](index=592&type=chunk) - The Audit Committee also serves as the Compensation Committee, following Israeli practice as a foreign private issuer[351](index=351&type=chunk) - A Nomination Committee, comprised of the two external directors, is responsible for recommending director nominees[354](index=354&type=chunk) [Approval of Office Holders Terms of Employment](index=55&type=section&id=Approval%20of%20Office%20Holders%20Terms%20of%20Employment) - Terms of employment for Office Holders (excluding directors and CEO) require approval from the compensation committee and board of directors, provided they align with the compensation policy[356](index=356&type=chunk) - Terms for directors, the CEO, or controlling shareholders require approval from the compensation committee, board, and a special majority of shareholders[357](index=357&type=chunk) [Compensation Policy](index=55&type=section&id=Compensation%20Policy) - A New Compensation Policy for Office Holders was approved by shareholders in **July 2020**, designed to balance incentives with long-term strategic performance[361](index=361&type=chunk)[362](index=362&type=chunk) - Annual cash bonuses for executives (excluding CEO) are capped at **75%** of annual base salary (**100%** for CEO), with actual payment capped at **150%** of the on-target plan and a minimum Non-GAAP Net Profit threshold of **$6 million**[364](index=364&type=chunk)[365](index=365&type=chunk) - Equity-based compensation is capped at **300%** of annual base salary for the CEO and **250%** for other executives, with at least **40%** subject to performance-based vesting[367](index=367&type=chunk) - The D&O insurance coverage is capped at the higher of **$30 million** or **10% of market cap**, with a premium cap of **$1 million**[370](index=370&type=chunk) [Approval of Certain Transactions with Related Parties](index=57&type=section&id=Approval%20of%20Certain%20Transactions%20with%20Related%20Parties) - Extraordinary transactions with controlling shareholders or transactions with Office Holders where they have a personal interest require audit/compensation committee, board, and often special majority shareholder approval[372](index=372&type=chunk)[373](index=373&type=chunk) - Private placements of securities exceeding certain thresholds or resulting in a controlling shareholder also require multiple approvals[378](index=378&type=chunk) [Duties of Office Holders and Shareholders](index=58&type=section&id=Duties%20of%20Office%20Holders%20and%20Shareholders) - Office Holders have duties of care and loyalty, requiring them to act in good faith, avoid conflicts of interest, and disclose personal interests in company transactions[381](index=381&type=chunk)[385](index=385&type=chunk) - Shareholders have a duty to act in good faith towards the company and other shareholders, and to refrain from abusing their power[387](index=387&type=chunk)[388](index=388&type=chunk) [Insurance, Indemnification and Exemption](index=59&type=section&id=Insurance%2C%20Indemnification%20and%20Exemption) - The company may exempt Office Holders from liability for breach of duty of care (except for distributions) and indemnify/insure them for certain liabilities, subject to Companies Law provisions and board/shareholder approvals[389](index=389&type=chunk)[390](index=390&type=chunk)[393](index=393&type=chunk)[395](index=395&type=chunk)[396](index=396&type=chunk)[398](index=398&type=chunk)[399](index=399&type=chunk)[400](index=400&type=chunk) - Currently holds directors' and officers' liability insurance policy for the benefit of its Office Holders, effective until **November 30, 2021**[401](index=401&type=chunk) [Administrative Enforcement](index=61&type=section&id=Administrative%20Enforcement) - Subject to administrative enforcement procedures by the Israeli Securities Authority (ISA) for breaches of Israeli Securities Law[403](index=403&type=chunk) - The CEO is required to supervise and take reasonable measures to prevent breaches, and the company has adopted an internal enforcement plan[403](index=403&type=chunk)[406](index=406&type=chunk) [D. Employees](index=62&type=section&id=D.%20Employees) As of December 31, 2020, Camtek had **356 employees** globally, with the majority in Israel, reporting good employee relations and no labor disputes - Number of Employees by Activity (2018-2020) | | 2020 | 2019 | 2018 | | :--------------------------- | :--- | :--- | :--- | | Executive management | 4 | 4 | 4 | | Research and development | 93 | 77 | 67 | | Sales support | 101 | 92 | 85 | | Sales and marketing | 37 | 35 | 33 | | Administration | 47 | 47 | 43 | | Operations | 74 | 67 | 63 | | **Total** | **356** | **322** | **295** | - Number of Employees by Geographic Region (2018-2020) | | 2020 | 2019 | 2018 | | :------- | :--- | :--- | :--- | | Israel | 222 | 200 | 181 | | Abroad | 134 | 122 | 114 | | **Total** | **356** | **322** | **295** | - The company considers its relationship with its employees to be good and has never experienced a labor dispute, strike, or work stoppage[408](index=408&type=chunk) [E. Share Ownership.](index=63&type=section&id=E.%20Share%20Ownership.) As of March 9, 2021, Priortech and Chroma are joint controlling shareholders with **21.17%** and **18.06%** ownership respectively, alongside other significant holders - Beneficial Ownership of Ordinary Shares by Major Shareholders (as of March 9, 2021) | Name | Number of Ordinary Shares Owned | Percentage of Total Outstanding Ordinary Shares | | :---------------------------------- | :------------------------------ | :---------------------------------------------- | | Priortech Ltd. | 9,163,633 | 21.17% | | Chroma ATE Inc. | 7,817,440 | 18.06% | | Migdal Insurance & Financial Holdings Ltd | 3,320,161 | 7.66% | | Federated Hermes, Inc. | 2,580,000 | 5.95% | - Priortech and Chroma are deemed joint controlling shareholders due to a voting agreement[412](index=412&type=chunk)[428](index=428&type=chunk) - The company maintains the **2018 Share Incentive Plan** for options, restricted shares, and RSUs to employees, officers, directors, and consultants[417](index=417&type=chunk)[418](index=418&type=chunk)[422](index=422&type=chunk) - As of December 31, 2020, **1,322,854 awards** were outstanding under the 2018 Plan[421](index=421&type=chunk) - Total unrecognized compensation cost related to non-vested share-based compensation arrangements was **$73 thousand** as of December 31, 2020, expected to be recognized in less than one year[745](index=745&type=chunk) - Total compensation cost from RSUs recognized in 2020 amounted to **$4,115 thousand**, with **$10,248 thousand** unrecognized compensation to be recognized from 2021 to 2024[753](index=753&type=chunk) [Item 7. Major Shareholders and Related Party Transactions.](index=59&type=section&id=Item%207.%20Major%20Shareholders%20and%20Related%20Party%20Transactions.) This section details major shareholders and significant related party transactions, including beneficial ownership, agreements with Priortech and Chroma, and the CEO's employment [A. Major Shareholders.](index=65&type=section&id=A.%20Major%20Shareholders.) As of March 9, 2021, Priortech and Chroma are the largest shareholders, holding **21.17%** and **18.06%** respectively, and are deemed joint controlling shareholders - Beneficial Ownership of Ordinary Shares by Major Shareholders (as of March 9, 2021) | Name | Ordinary Shares* | Percentage | | :----------------------------------- | :--------------- | :--------- | | Priortech Ltd. | 9,163,633 | 21.17% | | Chroma ATE Inc. | 7,817,440 | 18.06% | | Migdal Insurance & Financial Holdings Ltd | 3,320,161 | 7.66% | | Federated Hermes, Inc. | 2,580,000 | 5.95% | - Priortech Ltd. and Chroma ATE Inc. are deemed joint controlling shareholders due to a voting agreement[428](index=428&type=chunk)[429](index=429&type=chunk) - Rafi Amit and Yotam Stern may be deemed to control Priortech Ltd. due to a voting agreement[413](index=413&type=chunk)[414](index=414&type=chunk)[428](index=428&type=chunk) [B. Related Party Transactions.](index=66&type=section&id=B.%20Related%20Party%20Transactions.) The company has significant related party transactions and agreements, primarily with major shareholders Priortech and Chroma, including a technological cooperation agreement and CEO employment terms - Definitive agreements from the Chroma Transaction (February 2019) involved Chroma acquiring shares from Priortech and new shares from Camtek, leading to joint control[432](index=432&type=chunk)[140](index=140&type=chunk) - A Second Amended and Restated Registration Rights Agreement grants Chroma similar registration rights as Priortech for their ordinary shares[437](index=437&type=chunk) - A Technological Cooperation Agreement with Chroma grants Chroma a license for an application under Camtek's triangulation technology platform for non-semiconductor uses[432](index=432&type=chunk)[795](index=795&type=chunk) - The CEO, Rafi Amit, dedicates **10%** of his time to providing consulting and management services for Priortech through its subsidiary, Amitec, as part of his employment agreement[438](index=438&type=chunk)[796](index=796&type=chunk) [C. Interests of Experts and Counsel.](index=67&type=section&id=C.%20Interests%20of%20Experts%20and%20Counsel.) This item is not applicable to the company's filing [Item 8. Financial Information.](index=61&type=section&id=Item%208.%20Financial%20Information.) This section refers to consolidated financial statements in Item 18, notes no material legal proceedings, and details cash dividends declared in 2018 and 2019 [A. Consolidated Statements and Other Financial Information.](index=67&type=section&id=A.%20Consolidated%20Statements%20and%20Other%20Financial%20Information.) This sub-section refers to consolidated financial statements in Item 18, confirms no material legal proceedings, and details cash dividends declared in 2018 and 2019 - Consolidated financial statements are listed in Item 18[442](index=442&type=chunk) - The company is not a party to any material legal proceedings[443](index=443&type=chunk) - Cash Dividends Declared | Year | Dividend per Ordinary Share | Aggregate Distribution (approx.) | | :--- | :-------------------------- | :------------------------------- | | 2018 | $0.14 | $5 million | | 2019 | $0.17 | $6.5 million | [B. Significant Changes.](index=67&type=section&id=B.%20Significant%20Changes.) There are no significant changes to report [Item 9. The Offer and Listing.](index=61&type=section&id=Item%209.%20The%20Offer%20and%20Listing.) This section details the company's ordinary shares, dual-listed on Nasdaq Global Market and TASE under 'CAMT', with other sub-items not applicable [A. Offer and Listing Details.](index=67&type=section&id=A.%20Offer%20and%20Listing%20Details.) Camtek's ordinary shares are dual-listed and traded on the Nasdaq Global Market and TASE under 'CAMT', subject to Israeli securities legislation - Ordinary shares are traded on the Nasdaq Global Market and on TASE under the symbol **'CAMT'**[448](index=448&type=chunk) - The company is subject to Israeli securities legislation applicable to dual-listed companies[448](index=448&type=chunk) [B. Plan of distribution.](index=67&type=section&id=B.%20Plan%20of%20distribution.) This item is not applicable to the company's filing [C. Markets.](index=68&type=section&id=C.%20Markets.) This item refers to the information provided in Item 9.A [D. Selling Shareholders.](index=68&type=section&id=D.%20Selling%20Shareholders.) This item is not applicable to the company's filing [E. Dilution.](index=68&type=section&id=E.%20Dilution.) This item is not applicable to the company's filing [F. Expenses of the Issue.](index=68&type=section&id=F.%20Expenses%20of%20the%20Issue.) This item is not applicable to the company's filing [Item 10. Additional Information.](index=62&type=section&id=Item%2010.%20Additional%20Information.) This section provides additional information on Camtek's share capital, articles of association, exchange controls, U.S. federal and Israeli tax considerations, and document availability [A. Share Capital](index=68&type=section&id=A.%20Share%20Capital) This item is not applicable to the company's filing [B. Memorandum and Articles](index=68&type=section&id=B.%20Memorandum%20and%20Articles) The company's share capital consists of **43,272,978 ordinary shares** outstanding, with shareholders having one vote per share, and the Board can declare dividends subject to solvency and Israeli law - Authorized share capital consists of **100,000,000 ordinary shares**, par value **NIS 0.01**, with **43,272,978 shares** outstanding and fully-paid as of December 31, 2020[465](index=465&type=chunk) - Ordinary shares do not have preemptive rights, and ownership/voting is not restricted except for citizens of countries at war with Israel[466](index=466&type=chunk)[488](index=488&type=chunk) - The Board of Directors may declare dividends from retained earnings or earnings over the two most recent years, subject to solvency. In liquidation, assets are distributed proportionally to ordinary shareholders after creditors[469](index=469&type=chunk)[470](index=470&type=chunk) - Shareholders have **one vote** for each ordinary share. Annual meetings must be held within **15 months** of the last one, with a quorum of at least **two shareholders** representing **25% of voting power**[473](index=473&type=chunk)[475](index=475&type=chunk)[476](index=476&type=chunk) - Israeli corporate law includes anti-takeover effects, regulating mergers and acquisitions and requiring tender offers for certain share acquisition thresholds[481](index=481&type=chunk)[482](index=482&type=chunk)[483](index=483&type=chunk)[485](index=485&type=chunk) [C. Material Contracts.](index=71&type=section&id=C.%20Material%20Contracts.) There are no material contracts to report [D. Exchange Controls](index=71&type=section&id=D.%20Exchange%20Controls) There are no Israeli currency control restrictions on dividend payments or share sales proceeds, except for reporting obligations and restrictions for citizens of countries at war with Israel - No Israeli currency control restrictions on dividend payments or proceeds from share sales, except for reporting obligations for Israeli residents[487](index=487&type=chunk) - Ownership or voting of ordinary shares by non-residents of Israel is not restricted, except for citizens of countries in a state of war with Israel[488](index=488&type=chunk) [E. Taxation](index=71&type=section&id=E.%20Taxation) This section provides an overview of U.S. federal and Israeli tax considerations for shareholders, including dividend and disposition taxation, PFIC implications, and Israeli corporate tax benefits [U.S. Federal Income Tax Considerations](index=71&type=section&id=U.S.%20Federal%20Income%20Tax%20Considerations) - Distributions on ordinary shares are generally treated as dividend income to the extent of current and accumulated earnings and profits. Qualified dividends for non-corporate U.S. holders are taxed at long-term capital gains rates if certain conditions are met[496](index=496&type=chunk) - Upon disposition of ordinary shares, U.S. holders recognize capital gain or loss, which is long-term if held for more than one year, generally treated as U.S. source income or loss[501](index=501&type=chunk) - Non-corporate U.S. holders may be subject to an additional **3.8% surtax** on net investment income[503](index=503&type=chunk) - If classified as a **Passive Foreign Investment Company (PFIC)**, U.S. holders may be subject to complex tax rules under the QEF, mark-to-market, or excess distribution regimes, potentially leading to adverse tax consequences[504](index=504&type=chunk)[505](index=505&type=chunk)[507](index=507&type=chunk)[510](index=510&type=chunk) - Non-U.S. holders are generally not subject to U.S. federal income or withholding tax on dividends or dispositions unless effectively connected with a U.S. trade or business[514](index=514&type=chunk) [Israeli Taxation](index=76&type=section&id=Israeli%20Taxation) - The regular corporate tax rate in Israel is **23%** for 2020 and 2021[521](index=521&type=chunk) - The company benefits from **'Approved Enterprise' status** under the Investment Law, providing tax exemption for **10 years** on income from approved enterprises in Zone 'A'[522](index=522&type=chunk) - For 2019 onwards, the company elected **'Preferred Enterprise' status**, resulting in a **7.5% corporate tax rate** for preferred income in Development Area A[533](index=533&type=chunk) - As of December 31, 2020, **$22.3 million** of prior year earnings were tax-exempt from Approved Enterprise and **$3.4 million** from Beneficiary Enterprise. If distributed, these would incur tax liabilities of approximately **$5.6 million** and **$0.8 million**, respectively[538](index=538&type=chunk)[540](index=540&type=chunk) - Government grants from the Israel Innovation Authority (IIA) for R&D require royalty payments (**3.5% of sales**) up to **100%** of grants plus LIBOR interest, contingent on actual sales[543](index=543&type=chunk)[728](index=728&type=chunk) - Non-Israeli residents are generally exempt from Israeli capital gains tax on the sale of publicly traded shares, provided certain conditions are met, such as not holding shares through a permanent establishment in Israel[552](index=552&type=chunk)[553](index=553&type=chunk) - Dividends paid to non-Israeli residents are generally subject to **25% Israeli withholding tax** (**30%** for 'Substantial Shareholders'), with lower rates potentially available under applicable tax treaties like the U.S.-Israel Tax Treaty[557](index=557&type=chunk)[561](index=561&type=chunk) [F. Dividends and Paying Agents.](index=81&type=section&id=F.%20Dividends%20and%20Paying%20Agents.) This item is not applicable to the company's filing [G. Statement by Experts.](index=81&type=section&id=G.%20Statement%20by%20Experts.) This item is not applicable to the company's filing [H. Documents on Display.](index=82&type=section&id=H.%20Documents%20on%20Display.) The company files annual reports and information with the SEC and makes it available on its website - SEC filings are available on the SEC's EDGAR system at http://www.sec.gov[568](index=568&type=chunk) - Information about the company is also available on its website at www.camtek.com[568](index=568&type=chunk) [I. Subsidiary Information.](index=82&type=section&id=I.%20Subsidiary%20Information.) This item is not applicable to the company's filing [Item 11. Quantitative and Qualitative Disclosures about Market Risk](index=76&type=section&id=Item%2011.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Camtek's primary market risks stem from foreign currency fluctuations, particularly the U.S. Dollar/NIS exchange rate, impacting operational costs, with no significant interest rate risk - The company's exposure to market risk for changes in interest rates is not significant as it has no outstanding loans[571](index=571&type=chunk) - A major portion of Israeli operational costs are incurred in NIS, making the company exposed to fluctuations in the NIS/U.S. Dollar exchange rate. The U.S. Dollar weakened against the NIS by **7%** in 2020[572](index=572&type=chunk) - As of December 31, 2020, the company had net liabilities of approximately **$12.8 million** denominated in NIS. A **1% fluctuation** in the exchange rate would cause **$128 thousand** in expenses or income[574](index=574&type=chunk) - Product prices in certain territories (Europe and Japan) are denominated in local currencies, which could become less competitive if those currencies significantly devalue against the U.S. Dollar[575](index=575&type=chunk) [Item 12. Description of Securities Other than Equity Securities.](index=76&type=section&id=Item%2012.%20Description%20of%20Securities%20Other%20than%20Equity%20Securities.) This item is not applicable to the company's filing PART II [Item 13. Defaults, Dividend Arrearages and Delinquencies.](index=76&type=section&id=Item%2013.%20Defaults%2C%20Dividend%20Arrearages%20and%20Delinquencies.) This item is not applicable to the company's filing [Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds.](index=77&type=section&id=Item%2014.%20Material%20Modifications%20to%20the%20Rights%20of%20Security%20Holders%20and%20Use%20of%20Proceeds.) This item is not applicable to the company's filing [Item 15. Controls and Procedures.](index=77&type=section&id=Item%2015.%20Controls%20and%20Procedures.) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2020, with independent auditor attestation and no material changes - Management concluded that disclosure controls and procedures were effective as of December 31, 2020[583](index=583&type=chunk)[584](index=584&type=chunk) - Management assessed the effectiveness of internal control over financial reporting based on the **COSO (2013) framework** and concluded it was effective as of December 31, 2020[587](index=587&type=chunk)[588](index=588&type=chunk) - Somekh Chaikin, a member firm of KPMG International, audited and attested to the effectiveness of the company's internal control over financial reporting as of December 31, 2020[589](index=589&type=chunk)[620](index=620&type=chunk) - No changes to internal control over financial reporting materially affected, or are reasonably likely to materially affect, internal control over financial reporting during the period[590](index=590&type=chunk) [Item 16A. Audit Committee Financial Expert.](index=78&type=section&id=Item%2016A.%20Audit%20Committee%20Financial%20Expert.) The Board determined Ms. Yael Andorn qualifies as an 'audit committee financial expert' under Nasdaq Rules, with both Ms. Andorn and Mr. Yosi Shacham-Diamand serving as independent directors - Ms. Yael Andorn qualifies as an **'audit committee financial expert'** for Nasdaq Rules purposes[592](index=592&type=chunk) - Both Ms. Andorn and Mr. Yosi Shacham-Diamand are independent directors[592](index=592&type=chunk) [Item 16B. Code of Ethics.](index=78&type=section&id=Item%2016B.%20Code%20of%20Ethics.) The company adopted a Code of Ethics applicable to all directors, officers, and employees, including principal executive, financial, and accounting officers, available on its website - A Code of Ethics has been adopted, applicable to all directors, officers, and employees, including principal executive, financial, and accounting officers[593](index=593&type=chunk) - A copy of the Code of Ethics is available on the company's website, www.camtek.com[593](index=593&type=chunk) [Item 16C. Principal Accountant Fees and Services.](index=78&type=section&id=Item%2016C.%20Principal%20Accountant%20Fees%20and%20Services.) The Audit Committee pre-approves audit and non-audit services by Somekh Chaikin (KPMG), with 2020 audit fees at **$255,700** and audit-related services at **$47,000** - The Audit Committee has a policy for pre-approval of all auditing and permitted non-audit services performed by the independent auditor[598](index=598&type=chunk) - Principal Accountant Fees (in US$) | Fee Category | For 2020 Services Rendered | For 2019 Services Rendered | | :----------------------- | :------------------------- | :------------------------- | | Audit Fees | 255,700 | 255,700 | | Tax Fees | 7,700 | 16,312 | | Audit Related Services | 47,000 | 0 | - Audit fees cover professional services for the integrated audit of financial statements and internal controls[596](index=596&type=chunk) - Audit Related Services in 2020 included consultancy and consents related to an underwritten public offering[597](index=597&type=chunk) [Item 16D. Exemption From the Listing Standards for Audit Committees](index=79&type=section&id=Item%2016D.%20Exemption%20From%20the%20Listing%20Standards%20for%20Audit%20Committees) This item is not applicable to the company's filing [Item 16E. Purchases of Equity Securities By the Issuer and Affiliated Purchasers](index=79&type=section&id=Item%2016E.%20Purchases%20of%20Equity%20Securities%20By%20the%20Issuer%20and%20Affiliated%20Purchasers) This item is not applicable to the company's filing [Item 16F. Change in Registrant's Certifying Accountant](index=79&type=section&id=Item%2016F.%20Change%20in%20Registrant%27s%20Certifying%20Accountant) This item is not applicable to the company's filing [Item 16G. Corporate Governance](index=79&type=section&id=Item%2016G.%20Corporate%20Governance) Camtek relies on home country practice for several Nasdaq Rules, including direct registration, compensation committee functions, stock option plan approvals, and annual meeting requirements - The company relies on home country practice for the eligibility of its securities for a direct registration program, as permitted by **Nasdaq Rule 5255(a)**[604](index=604&type=chunk) - The Audit Committee assumes the functions and responsibilities of a compensation committee, following Israeli practice in lieu of **Nasdaq Rule 5605(d)**[605](index=605&type=chunk) - The company has opted out of **Nasdaq Rules 5635 and 5605(d)** regarding shareholder approval of stock option plans, but Israeli law requires special shareholder voting for equity-based compensation of certain Office Holders[605](index=605&type=chunk) - The company follows Israeli law for annual meeting requirements (within **15 months** of the last meeting) and quorum (at least **two shareholders** holding **25% of voting rights**), in lieu of **Nasdaq Rule 5620(a) and 5620(c)**[606](index=606&type=chunk) - The company follows home country practice for furnishing annual reports to shareholders by filing Form 20-F with the SEC and posting a copy on its website, in lieu of **Nasdaq Rule 5250(d)(1)**[608](index=608&type=chunk) [Item 16H. Mine Safety Disclosure.](index=80&type=section&id=Item%2016H.%20Mine%20Safety%20Disclosure.) This item is not applicable to the company's filing PART III [Item 17. Financial Statements.](index=80&type=section&id=Item%2017.%20Financial%20Statements.) The company has furnished financial statements and related information as specified in Item 18 [Item 18. Financial Statements.](index=80&type=section&id=Item%2018.%20Financial%20Statements.) The consolidated financial statements and the independent auditor's report are incorporated into this Annual Report, including balance sheets, income statements, equity, cash flows, and notes - The consolidated financial statements and the report of the independent registered public accounting firm are incorporated into this Annual Report[613](index=613&type=chunk) - The financial statements include Consolidated Balance Sheets, Consolidated Statements of Income, Consolidated Statements of Shareholders' Equity, Consolidated Statements of Cash Flows, and Notes to Consolidated Financial Statements[616](index=616&type=chunk) - The financial statements were audited by Somekh Chaikin, a member firm of KPMG International[619](index=619&type=chunk) [Item 19. Exhibits.](index=82&type=section&id=Item%2019.%20Exhibits.) This section lists all exhibits filed as part of the Form 20-F, including corporate documents, share plans, agreements, subsidiary lists, and various certifications - The exhibits include the Memorandum of Association, Articles of Registrant, Description of Registrant's Securities, **2018 Share Incentive Plan**, Form of Indemnification Agreement, Registration Rights Amended and Restated Agreement, Share Purchase Agreement, and Subsidiaries of the Registrant[799](index=799&type=chunk) - Certifications from the Chief Executive Officer and Chief Financial Officer, and the Consent of Somekh Chaikin (Independent Registered Public Accounting Firm) are filed[799](index=799&type=chunk) - **XBRL (eXtensible Business Reporting Language)** formatted financial information is included[799](index=799&type=chunk) [SIGNATURES](index=130&type=section&id=SIGNATURES) The company certifies compliance with Form 20-F filing requirements, with the report signed by CEO Rafi Amit on March 17, 2021 - The Annual Report on Form 20-F is signed by Rafi Amit, Chief Executive Officer, on **March 17, 2021**[803](index=803&type=chunk)[804](index=804&type=chunk)