Financial Data and Key Metrics Changes - The company reported record revenues of $123.3 million for Q2, reflecting over 20% growth year over year [5][11] - Gross margin was maintained at around 51.9%, similar to the previous quarter, contributing to an operating income of over $37 million [12] - Net income for Q2 was $38.8 million, or $0.79 per diluted share, compared to $32.6 million, or $0.66 per share in the same quarter last year [13] - Cash and cash equivalents increased to $544 million from $523 million at the end of the previous quarter [14] Business Line Data and Key Metrics Changes - High-performance computing (HPC) applications contributed approximately 45-50% of total revenue, while advanced packaging applications accounted for about 20% [6][11] - The advanced packaging segment is rapidly evolving, driven by technological changes to support AI applications [8] Market Data and Key Metrics Changes - Geographic revenue split for the quarter was 90% from Asia and 10% from the rest of the world [11] - The company expects Q3 revenue to be approximately $125 million, indicating a strong sales pipeline and healthy order flow into Q4 [8][15] Company Strategy and Development Direction - The company has made significant strategic investments in developing innovative solutions to address emerging opportunities in advanced packaging and HPC [9][10] - The launch of the AUK and Eagle 5 systems is expected to generate approximately 30% of total revenue this year, with larger contributions projected for the next year [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong momentum heading into the third quarter, supported by a healthy order flow and pipeline [7][8] - The advanced packaging market supporting AI applications is expected to grow rapidly over the next few years, driven by new packaging technologies [8][9] Other Important Information - Operating expenses increased to $26.6 million due to exceptionally high shipping expenses related to geopolitical conflicts [12][13] - The company has successfully adopted its micro proof metrology system by a tier-one customer, with over 30 systems installed in production environments [10] Q&A Session Summary Question: What is the expectation for HPC contribution in the second half of the year? - Management expects HPC contribution to remain similar to the first half, around 45-50% [17][18] Question: What is the current expectation for China’s contribution to total revenue? - The contribution from China is expected to be slightly higher than the previous year's 30% [19] Question: How does Camtek view competition from KLA in the hybrid bonding market? - Management believes they are well-positioned to compete effectively against KLA, citing strong customer relationships and competitive technology [24][25] Question: What traction is being seen for the Eagle 5 and Hawk products? - The Hawk is noted for high throughput and addressing difficult applications, while the Eagle 5 is faster and offers better defect detection capabilities [28][30] Question: What are the growth prospects for 2026? - Management anticipates rapid growth in the HPC market, driven by technological changes and new applications [33][34] Question: What is the expected ratio of Hawk versus Eagle shipments for HBM4? - The ratio is customer-dependent, with both products being successful in the market [84] Question: Are OSATs showing signs of strengthening? - OSATs are increasingly involved in high-performance computing applications, with significant orders being seen [58][89]

Core Viewpoint - Camtek Ltd. reported strong financial results for Q1 2025, with revenues of $118.6 million, a 22% increase year-over-year, and expects continued growth in Q2 2025 with revenue guidance of $120-123 million, representing a growth of approximately 17-20% year-over-year [1][3]. Financial Highlights - Q1 2025 revenues were $118.6 million compared to $97.0 million in Q1 2024, marking a 22% year-over-year growth [5]. - GAAP gross profit for Q1 2025 was $60.6 million, or 51.0% of revenues, up 35% from $44.8 million (46.2% of revenues) in Q1 2024 [5][8]. - Non-GAAP gross profit was $61.8 million (52.1% of revenues), a 26% increase from $49.2 million (50.7% of revenues) in Q1 2024 [6][8]. - GAAP operating income reached $32.7 million (27.6% of revenues), a 54% increase from $21.2 million (21.9% of revenues) in Q1 2024 [6][8]. - Non-GAAP operating income was $37.3 million (31.5% of revenues), a 29% increase from $29.0 million (29.9% of revenues) in Q1 2024 [7][8]. - GAAP net income was $34.3 million, or $0.70 per diluted share, up 38% from $24.8 million, or $0.50 per diluted share, in Q1 2024 [7][8]. - Non-GAAP net income totaled $38.7 million, or $0.79 per diluted share, a 24% increase from $31.3 million, or $0.64 per diluted share, in Q1 2024 [9]. Operational Insights - The primary growth driver for Camtek is advanced packaging, particularly in high-performance computing (HPC) to support AI applications [4]. - The company successfully launched two new models, the Eagle G5 and the Hawk, which support the latest packaging technologies and have received positive feedback from customers [4]. - The company has not experienced material impacts from geopolitical issues or tariff uncertainties, with manufacturing operations in Israel and Europe and sales concentrated in Asia [4]. Cash Position - As of March 31, 2025, cash and cash equivalents, short-term and long-term deposits, and marketable securities totaled $522.6 million, an increase from $501.2 million as of December 31, 2024, and $467.0 million as of March 31, 2024 [10]. - The company generated an operating cash flow of $23.6 million during the first quarter [10]. Company Overview - Camtek Ltd. develops and manufactures high-end inspection and metrology equipment for the semiconductor industry, serving various market segments including Advanced Interconnect Packaging and Heterogeneous Integration [13]. - The company operates manufacturing facilities in Israel and Germany, with a global presence through eight offices [14].