Camtek(US:CAMT)2025-02-12 18:04Financial 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].