Core Points - Camtek has been awarded the Intel EPIC Supplier Award for 2025, recognizing its commitment to continuous improvement and performance excellence in the semiconductor supply chain [1][2] - The award highlights Camtek's status as one of only 37 recipients in Intel's global supply chain, emphasizing its role as a top performer [1][2] - Intel's EPIC Supplier Award criteria include excellence, partnership, inclusion, and continuous improvement, with only a few hundred suppliers qualifying for the program out of thousands [2][3] Company Overview - Camtek is a developer and manufacturer of high-end inspection and metrology equipment specifically for the semiconductor industry, focusing on advanced interconnect packaging, heterogeneous integration, memory, and other demanding market segments [5] - The company operates manufacturing facilities in Israel and Germany, along with eight offices worldwide, providing state-of-the-art solutions tailored to customer requirements [6]

Company Performance - Camtek (CAMT) closed at $58.63, reflecting a decrease of -0.63% from the previous day, underperforming the S&P 500 which gained 0.55% [1] - Over the past month, Camtek's shares have declined by 20.83%, significantly more than the Computer and Technology sector's loss of 8.88% and the S&P 500's loss of 6.22% [2] Financial Expectations - Analysts anticipate Camtek will report earnings of $0.77 per share, indicating a year-over-year growth of 22.22%, with expected revenue of $119.15 million, representing a 22.82% increase compared to the same quarter last year [3] - For the entire fiscal year, earnings are projected at $3.16 per share and revenue at $485.55 million, reflecting increases of +11.66% and +13.12% respectively from the previous year [4] Analyst Sentiment - Recent changes in analyst estimates for Camtek are crucial as they often reflect shifts in short-term business dynamics, with positive revisions suggesting a favorable outlook on the company's health and profitability [5] - The Zacks Rank system, which evaluates estimate changes, currently ranks Camtek at 3 (Hold), with the consensus EPS estimate having decreased by 1.78% over the last 30 days [7] Valuation Metrics - Camtek is currently trading at a Forward P/E ratio of 18.67, which is lower than the industry average of 21.3, indicating a potential valuation discount [8] - The company has a PEG ratio of 1.29, compared to the industry average PEG ratio of 1.55, suggesting a more favorable growth outlook relative to its valuation [8] Industry Context - Camtek operates within the Electronics - Measuring Instruments industry, which is part of the Computer and Technology sector, currently holding a Zacks Industry Rank of 44, placing it in the top 18% of over 250 industries [9]

Shareholder Meeting - The Annual General Meeting of Shareholders is scheduled for April 29, 2025, at 4:00 PM (Israel time) to discuss the independent auditor's report and the audited consolidated financial statements for the year ended December 31, 2024[7][20]. - Shareholders eligible to vote must be recorded by March 25, 2025, with each share entitled to one vote[9][24]. - The agenda includes re-electing board members and approving amendments to the Company's Compensation Policy and Articles of Association[11][25]. - A quorum for the meeting requires shareholders holding at least 33% of the voting power to be present[37]. - Proxies must be received at the Company's Offices no later than 24 hours prior to the meeting or 6 hours for electronic voting[15][32]. - The Company may change the meeting format to virtual if necessary, with timely communication to shareholders[10][22]. - Shareholders can vote electronically through the Electronic Voting System up to 6 hours before the meeting[29]. - The Company will bear the costs of proxy solicitation, including postage and printing[35]. - Joint owners of shares must follow specific voting rights as per the Company's Articles of Association[14][31]. Share Ownership - Priortech Ltd. beneficially owns 9,617,787 shares, representing 21.1% of the total shares outstanding[45]. - Chroma ATE Inc. holds 7,817,440 shares, accounting for 17.1% of the total shares outstanding[45]. - The total number of shares beneficially owned by all office holders as a group is 107,768, which is less than 1% of the total shares[45]. - As of March 4, 2025, there are 45,594,474 shares issued and outstanding[47]. - The total number of options and RSUs that may vest within 60 days is 42,024[47]. - The voting agreement between Priortech and Chroma allows them to jointly control the company and nominate directors[52]. Board of Directors - Seven out of eight directors are classified as independent under Nasdaq Listing Rules[63]. - The company plans to re-elect six directors for a term until the conclusion of the 2026 annual general meeting[54]. - Rafi Amit has served on the board since 1987 and has held various leadership roles within the company[56]. - Orit Stav has 20 years of experience in Venture Capital & Private Equity and serves as a managing partner at Israel Innovation Partners[59]. - Mr. Lior Aviram is proposed to be elected as a director for a term until the conclusion of the 2026 annual general meeting[66]. - Mr. Aviram will also serve as Executive Chairman, enhancing the company's growth initiatives and M&A activities[67][97]. Executive Compensation - Each of Mr. Ben-Arie and Ms. Stav will receive cash remuneration of approximately $40,379 annually, plus per-meeting fees[73]. - The annual equity grant for Ms. Stav and Mr. Ben-Arie is valued at $75,000, consisting of options and RSUs[76][80]. - The Compensation Policy aims to link executive pay to performance and attract talented executives essential for growth[93]. - The company plans to amend the Compensation Policy to clarify the role of the Executive Chairman and enhance hiring authority[96][97]. - The majority of executive compensation is variable and linked to the company's performance, subject to financial thresholds[94]. - The company is focused on accelerated growth through both organic means and acquisitions[95]. - The Company has proposed amendments to its Compensation Policy to allow for higher compensation packages to attract new executives, particularly for the Executive Chairman role, which is currently below the median of peer group companies[100]. - The current three-year CEO equity plan will remain subject to existing Compensation Policy caps, ensuring no changes to current executive compensation levels[102]. - The proposed annual base salary for the new Executive Chairman, Mr. Aviram, is NIS 967,000 (approximately US$ 267,867), which is significantly lower than the Company's CEO compensation[126][128]. - The Executive Chairman's cash bonus plan for 2025 is set at an on-target amount equal to 9 months of base salary, with 60% of the targets based on financial metrics and 40% on non-financial metrics[131]. - The Company maintains a total equity grant limit of 3.5% of total issued share capital, with total dilution not exceeding 10%[109]. - The notice period for the termination of Mr. Aviram's position will be structured to provide three months of notice and an additional nine months of garden leave[127]. - The proposed amendments to the Compensation Policy require shareholder approval and will remain in force until September 25, 2027[113]. - The Company emphasizes long-term incentives and pay-for-performance in its compensation practices, aligning with shareholder interests[106]. - The peer group for compensation benchmarking includes 13 Israeli technology companies listed in the U.S. capital markets, ensuring comparability in market cap and compensation practices[104]. - The proposed Executive Chairman Equity Grant for 2025 is valued at approximately US$1,600,000, which is 150% of the cap set on annual equity awards under the Compensation Policy[134]. - 50% of the 2025 Executive Chairman Equity Grant is subject to performance-based vesting criteria, which include revenue growth matching or exceeding the company's market growth and a minimum Non-GAAP operating margin[137][138]. - The total value of the proposed Executive Chairman Compensation Package for 2025 is below the median levels of the Peer Group CEO pay, even considering the higher initial equity award[136][155]. - The annual dilution from the Executive Chairman Equity Grant is capped at 3.5% of the company's total issued and outstanding share capital, significantly below the 10% threshold recommended by ISS[150]. - The performance criteria for equity vesting will be evaluated annually, with measurement dates set for March 31 following each performance year[143]. - The time-based portion of the Executive Chairman Equity Grant will vest over four years, with one-fourth vesting each year starting from the first anniversary of the grant[142]. - The Compensation Committee and Board believe the proposed compensation package aligns the Executive Chairman's interests with those of the company and its shareholders over the long term[153]. Independent Auditor - The independent auditor, Somekh Chaikin, is recommended for re-appointment for the fiscal year ending December 31, 2025, and until the next annual general meeting[170][172]. - The Audit Committee pre-approves all audit and non-audit services provided by the independent auditor, ensuring oversight of service quality and fees[173]. - The Company is seeking shareholder approval for the re-appointment of Somekh Chaikin as the independent auditor for the fiscal year ending December 31, 2025[176]. - The audit fees for the fiscal year ended December 31, 2024, amounted to US$ 360,432, with total fees paid to the auditor Somekh Chaikin reaching US$ 395,407[174]. Financial Performance - The Company's audited consolidated financial statements for the year ended December 31, 2024, will be discussed at the upcoming shareholder meeting[179]. - The Company aims to maintain a compensation policy that allows for attracting and retaining high-quality leadership while ensuring that executive compensation does not exceed 70% of total compensation[190]. - The variable cash incentive plan for executives is designed to motivate performance, with the potential cash incentive capped at 200% of the On Target Cash Plan[193]. - At least 50% of the On Target Cash Plan targets for executives must be measurable, including financial metrics such as revenues and operating income[195]. - The Company’s NON-GAAP Net Profit threshold for cash incentive payments is set at US$ 6,000,000, below which no payments will be made[194]. - The compensation policy will be reviewed every three years to ensure compliance with applicable laws and market practices[187]. - The Company emphasizes a long-term perspective in its business strategy, focusing on growth, profitability, and innovation[185]. - The total fees for audit and tax services reflect the nature and volume of services rendered by the independent auditor[175]. - At least 30% of the On Target Cash Plan for Executives managing a business unit shall be based on measurable targets related to their unit and personal performance[196]. - In the event of a change in control, cash payments to Executives may reach up to 12 monthly Base Salaries if the control event results in a premium of at least 40% above the average closing prices over the preceding 20 trading days[197]. - The total yearly Equity Value granted to the CEO and Executive Chairman shall not exceed 400% of their annual Base Salary, while for other Executives, it shall not exceed 300%[198]. - At least 50% of the Equity Based Components granted to an Executive each year shall be subject to performance-based vesting[198]. - The Compensation Committee may multiply the applicable Equity Cap by 1.5 for new hire Executives for their initial equity award if deemed necessary[198].

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Camtek (CAMT), and emphasizes the importance of using these recommendations in conjunction with other analytical tools like the Zacks Rank for making informed investment decisions [1][4]. Brokerage Recommendations - Camtek has an average brokerage recommendation (ABR) of 1.33, indicating a consensus between Strong Buy and Buy, with 77.8% of recommendations being Strong Buy and 11.1% being Buy [2]. - The article highlights that while the ABR suggests a buying opportunity, relying solely on this metric may not be prudent due to the limited success of brokerage recommendations in predicting stock price increases [4][9]. Analyst Bias - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings, often issuing five "Strong Buy" recommendations for every "Strong Sell" [5][9]. - This bias can mislead investors, as the interests of brokerage firms may not align with those of retail investors [6][9]. Zacks Rank Comparison - The Zacks Rank, a proprietary stock rating tool, categorizes stocks from Strong Buy to Strong Sell and is based on earnings estimate revisions, which have shown a strong correlation with near-term stock price movements [7][10]. - The Zacks Rank is updated more frequently than the ABR, making it a more timely indicator of future price movements [11]. Current Earnings Estimates for Camtek - The Zacks Consensus Estimate for Camtek remains unchanged at $3.20 for the current year, suggesting steady analyst views on the company's earnings prospects [12]. - Due to the unchanged consensus estimate and other factors, Camtek holds a Zacks Rank of 3 (Hold), indicating a cautious approach despite the Buy-equivalent ABR [13].

Company Performance - Camtek's stock closed at $65.98, showing a slight increase of +0.14% from the previous day, which is lower than the S&P 500's gain of 0.64% [1] - Over the past month, Camtek's shares have decreased by 24.11%, underperforming the Computer and Technology sector's decline of 11.22% and the S&P 500's loss of 7.69% [2] Earnings Forecast - The upcoming earnings release is anticipated, with an expected EPS of $0.77, reflecting a growth of 22.22% compared to the same quarter last year [3] - Revenue is forecasted to be $119.15 million, indicating a growth of 22.82% year-over-year [3] - For the entire fiscal year, earnings are projected at $3.20 per share and revenue at $492.7 million, representing increases of +13.07% and +14.79% respectively from the previous year [4] Analyst Estimates - Recent adjustments to analyst estimates for Camtek are noteworthy, as they often reflect changes in short-term business dynamics [5] - Upward revisions in estimates suggest analysts' positive outlook on the company's operations and profit generation capabilities [5] - The consensus EPS projection has decreased by 0.14% in the past 30 days, and Camtek currently holds a Zacks Rank of 3 (Hold) [7] Valuation Metrics - Camtek has a Forward P/E ratio of 20.57, which is lower than the industry's average Forward P/E of 21.57, indicating a valuation discount [8] - The company has a PEG ratio of 1.42, compared to the industry's average PEG ratio of 1.63, suggesting a favorable growth outlook relative to its valuation [8] Industry Context - Camtek operates within the Electronics - Measuring Instruments industry, part of the Computer and Technology sector, which has a Zacks Industry Rank of 29, placing it in the top 12% of over 250 industries [9] - The Zacks Industry Rank assesses the strength of industry groups based on the average Zacks Rank of individual stocks, with top-rated industries outperforming lower-rated ones by a factor of 2 to 1 [9]

MIGDAL HAEMEK, Israel, Feb. 18, 2025 /PRNewswire/ -- Camtek Ltd (NASDAQ: CAMT) (TASE: CAMT), announced today that its Board of Directors nominated Lior Aviram as Executive Chairman of the Board, effective June 1, 2025, subject to shareholder approval.With over 30 years as a leading legal counsel to Israeli and global technology companies and deep knowledge of the Israeli and global tech ecosystem and capital markets, Mr. Aviram brings extensive experience in strategic transactions, cross-border mergers and ...

Investors might want to bet on Camtek (CAMT) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.The power of a changing earnin ...

Group 1 - Camtek (CAMT) has outperformed its peers in the Computer and Technology sector with a year-to-date return of 7.5%, compared to the sector average of 3% [4] - The Zacks Rank for Camtek is currently 2 (Buy), indicating a positive earnings outlook, with the consensus estimate for full-year earnings having increased by 0.4% over the past 90 days [3] - Camtek belongs to the Electronics - Measuring Instruments industry, which has gained an average of 12.6% this year, indicating that CAMT is slightly underperforming its industry [5] Group 2 - KLA (KLAC) is another stock in the Computer and Technology sector that has outperformed, with a year-to-date return of 19.1% and a Zacks Rank of 2 (Buy) [4][5] - The Electronics - Miscellaneous Products industry, where KLA is categorized, has seen a 4.7% increase since the beginning of the year, with 36 stocks in this industry [6]

Core Viewpoint - Camtek Ltd. (NASDAQ: CAMT) is experiencing rapid revenue growth and expanding its customer base in the semiconductor inspection and metrology systems sector [1] Company Summary - Camtek Ltd. specializes in providing inspection and metrology systems specifically designed for semiconductor manufacturers [1] - The company has shown significant growth in revenue over the past several years, indicating a strong market position and demand for its products [1]

Financial Data and Key Metrics Changes - Camtek reported Q4 2024 revenue of $117 million, a 32% increase year-over-year, and operating income of $36.3 million, reflecting a 42% improvement year-over-year [9][20]. - For the full year 2024, revenue reached $429 million, up 36% from $315 million in 2023, with operating income at $130 million, a 56% increase [9][20]. - Gross profit for Q4 was $59.3 million, resulting in a gross margin of 50.6%, up from 49.2% in Q4 2023 [21]. - Net income for Q4 was $37.7 million, or $0.77 per diluted share, compared to $28.2 million, or $0.57 per share, in the same quarter last year [22]. Business Line Data and Key Metrics Changes - The revenue distribution for the full year was approximately 50% from high-performance computing (HPC) and 20% from other advanced packaging applications [10]. - The demand in the HPC segment remains strong, with expectations for it to contribute at least 50% of business in the first half of 2025 [11]. Market Data and Key Metrics Changes - Geographic revenue split for Q4 was 92% from Asia and 8% from the rest of the world [21]. - The company anticipates a revenue guidance of $118 million to $120 million for Q1 2025, representing a nearly 25% increase over Q1 2024 [12][25]. Company Strategy and Development Direction - Camtek aims to leverage its strong position in the HPC market, which is expected to be a primary growth driver, particularly with the introduction of new models like the Eagle G5 and Hawk [10][17]. - The company plans to officially launch the Hawk at the Semicon Korea Show, targeting high-end applications and advanced packaging needs [14][15]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth in the HPC segment, driven by increasing demand for HPC-related hardware and AI capabilities [16][17]. - The company noted a shift in manufacturing and packaging of HPC modules, with OSATs becoming more involved, which presents a positive opportunity for Camtek [11][12]. Other Important Information - Cash and cash equivalents as of December 31, 2024, were $501.2 million, up from $488.7 million at the end of Q3 [23]. - Inventory levels increased to $123.1 million, reflecting preparations for anticipated sales growth [24]. Q&A Session Summary Question: Guidance on HPC contribution in the first half of 2025 - Management confirmed that HPC is expected to contribute at least 50% of business in the first half of 2025, with significant orders already on hand [11][31]. Question: China revenue contribution - China’s contribution is expected to be around 30% in 2024, down from 47% in 2023, with a potential range of 30% to 35% in 2025 [35]. Question: Hybrid bonding expectations - Hybrid bonding is starting to make initial production steps, with significant contributions expected in high-volume production around 2027-2028 [42]. Question: HBM market dynamics - If one major customer slows down, other customers are expected to pick up the demand, with a strong long-term outlook for the HBM market [50]. Question: Product traction for Eagle G5 and Hawk - Both products are expected to significantly increase market share, with the Hawk opening new markets beyond the capabilities of the Eagle line [56][58]. Question: Non-HPC market expectations - The non-HPC market is stable, with some improvement in the CMOS Image Sensors market, but overall growth is expected to come primarily from HPC and advanced packaging [95][97].