CAMTEK ANNOUNCES RESULTS FOR THE THIRD QUARTER OF 2024

Record revenues of $112 million; Q4 revenue guidance of ~$115 million, up 30% YoY, primarily driven by High Performance Computing applications

MIGDAL HAEMEK, Israel, Nov. 12, 2024 /PRNewswire/ -- Camtek Ltd. (NASDAQ: CAMT) (TASE: CAMT), today announced its financial results for the third quarter, ended September 30, 2024.

Highlights of the third quarter of 2024

• Record revenues of $112.3 million, a 40% year-over-year (YoY) increase;
• GAAP operating income of $29.6 million (up 56% YoY) and non-GAAP operating income of $34.2 million (up 56% YoY), representing operating margins of 26.4% and 30.6%, respectively;
• GAAP net income of $32.7 million and non-GAAP net income of $37.0 million; and
• Strong positive operating cash flow of $35.8 million.  

Forward-Looking Expectations

Management expects revenues in the fourth quarter of 2024 of approximately $115 million, which would represent a 30% increase over revenues in the fourth quarter of 2023, with sequential growth in Q1 2025. 

Management Comment

Rafi Amit, Camtek's CEO commented, "I am very pleased with the results of the third quarter and especially happy with the positive response to the introduction of our new product in September, the Eagle G5, as reflected by the $20 million orders announced last week. We recently introduced to certain key customers an additional new and advanced platform for the next generation of Advanced Packaging for which we have already received initial orders.

"Looking ahead, the demand in the HPC segment remains healthy. We expect the overall contribution of HPC to our business this year to be around 50% and expect it to be a major growth driver in 2025 as well. We also see an increased demand for a wide range of other applications."

Continued Mr. Amit, "Based on our current order flow, backlog, and pipeline, our revenue guidance for the fourth quarter is around $115 million dollars. Given our guidance for the fourth quarter, 2024 is expected to be a record year for Camtek with revenue around $427 million, which would represent 35% growth YoY."

Third Quarter 2024 Financial Results 

Revenues for the third quarter of 2024 were $112.3 million. This compares to third quarter 2023 revenues of $80.5 million, a year-over-year growth of 40%.

Gross profit on a GAAP basis in the quarter totaled $55.9 million (49.7% of revenues), an increase of 43% compared to a gross profit of $39.0 million (48.5% of revenues) in the third quarter of 2023.

Gross profit on a non-GAAP basis in the quarter totaled $57.1 million (50.8% of revenues), an increase of 45% compared to a gross profit of $39.4 million (49.0% of revenues) in the third quarter of 2023.

Operating income on a GAAP basis in the quarter totaled $29.6 million (26.4% of revenues), an increase of 56% compared to an operating income of $19.1 million (23.7% of revenues) in the third quarter of 2023.

Operating income on a non-GAAP basis in the quarter totaled $34.2 million (30.4% of revenues), an increase of 54% compared to $22.2 million (27.6% of revenues) in the third quarter of 2023.

Net income on a GAAP basis in the quarter totaled $32.7 million, or $0.67 per diluted share, an increase of 48% compared to net income of $22.1 million, or $0.46 per diluted share, in the third quarter of 2023.

Net income on a non-GAAP basis in the quarter totaled $37.0 million, or $0.75 per diluted share, an increase of 47% compared to a non-GAAP net income of $25.2 million, or $0.51 per diluted share, in the third quarter of 2023. 

Cash and cash equivalents, short-term and long-term deposits, and marketable securities, as of September 30, 2024, were $488.7 million compared to $453.9 million as of June 30, 2024. During the third quarter, the Company generated an operating cash flow of $35.8 million.

Conference Call

Camtek will host a video conference call/webinar today via Zoom, on Tuesday, November 12, 2024, at 09:00 ET (16:00 Israel time). Rafi Amit, CEO, Moshe Eisenberg, CFO, and Ramy Langer, COO will host the call and will be available to answer questions after presenting the results.

To participate in the webinar, please register using the following link, which will provide access to the video call: https://us06web.zoom.us/webinar/register/WN_b54LkdsSS4KNojb_vrH76w 

For those wishing to listen via phone, following registration, the dial in link will be sent. For any problems in registering, please email Camtek's investor relations a few hours in advance of the call.

For those unable to participate, a recording will be available on Camtek's website at http://www.camtek.com  within a few hours after the call.

A summary presentation of the quarterly results will also be available on Camtek's website.

ABOUT CAMTEK LTD.

Camtek is a developer and manufacturer of high-end inspection and metrology equipment for the semiconductor industry. Camtek's systems inspect IC and measure IC features on wafers throughout the production process of semiconductor devices, covering the front and mid-end and up to the beginning of assembly (Post Dicing). Camtek's systems inspect wafers for the most demanding semiconductor market segments, including Advanced Interconnect Packaging, Heterogenous Integration, Memory and HBM, CMOS Image Sensors, Compound Semiconductors, MEMS, and RF, serving numerous industry's leading global IDMs, OSATs, and foundries.

With manufacturing facilities in Israel and Germany, and eight offices around the world, Camtek provides state of the art solutions in line with customers' requirements.

This press release is available at http://www.camtek.com

This press release contains statements that may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on Camtek's current beliefs, expectations and assumptions about its business and industry, all of which may change.  Forward-looking statements can be identified by the use of words including "believe," "anticipate," "should," "intend," "plan," "will," "may," "expect," "estimate," "project," "positioned," "strategy," and similar expressions that are intended to identify forward-looking statements, including statements relating to the compound semiconductors market and our position in this market and the anticipated timing of delivery of the systems. These forward-looking statements involve known and unknown risks and uncertainties that may cause the actual results, performance or achievements of Camtek to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that may cause our actual results to differ materially from those contained in the forward-looking statements include, but are not limited to the effects of the evolving nature of the war situation in Israel, and the related evolving regional conflicts; the continued demand for HPC, HBM and Chiplet devices resulting from, among other things, the field of AI surging worldwide across companies, industries and nations; our dependency upon the semiconductor industry and the risk that unfavorable economic conditions or low capital expenditures may negatively impact our operating results;  formal or informal imposition by countries of new or revised export and/or import and doing-business regulations or sanctions, including but not limited to changes in U.S. trade policies, changes or uncertainty related to the U.S. government entity list and changes in the ability to sell products incorporating U.S originated technology, which can be made without prior notice, and our ability to effectively address such global trade issues and changes;  the risks relating to the concentration of a significant portion of our business in certain countries in the Asia Pacific Region, particularly China, Taiwan and Korea, some of which might be subject to the trade restrictions referred to above or involved in trade wars with countries which might impose such trade restrictions; changing industry and market trends; and those other factors discussed in our Annual Report on Form 20-F as published on March 21, 2024, as well as other documents that may be subsequently filed by Camtek from time to time with the Securities and Exchange Commission. We caution you not to place undue reliance on forward-looking statements, which speak only as of the date hereof. Camtek does not assume any obligation to update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release unless required by law. 

While we believe that we have a reasonable basis for each forward-looking statement contained in this press release, we caution you that these statements are based on a combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. In addition, any forward-looking statements represent Camtek's views only as of the date of this press release and should not be relied upon as representing its views as of any subsequent date. Camtek does not assume any obligation to update any forward-looking statements unless required by law.

This press release provides financial measures that exclude: (i) share based compensation expenses; and (ii) acquisition related expenses and are therefore not calculated in accordance with generally accepted accounting principles (GAAP). Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management uses both GAAP and non-GAAP measures when evaluating the business internally and therefore felt it is important to make these non-GAAP adjustments available to investors. A reconciliation between the GAAP and non-GAAP results appears in the tables at the end of this press release. The results reported in this press-release are preliminary unaudited results, and investors should be aware of possible discrepancies between these results and the audited results to be reported, due to various factors.

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SOURCE Camtek Ltd.