Camtek Ltd. Q1 FY2025 earnings call

• Camtek concluded Q1 with record performance, including $119 million in revenues, over 52% gross margin, and over $37 million operating income. - Revenue distribution across segments: 45-50% from HPC, ~20% from other advanced packaging, and the rest from other applications. - Mentioned ongoing investment in HPC, new products Eagle G5 and Hawk well-received, and Intel EPIC Supplier Award. - Geopolitical and tariff policy uncertainties exist but no material impact on Camtek's business so far.

Camtek's Q1 revenues reached $119 million, a year-over-year increase of more than 20%. Gross margin rose to over 52%, contributing to a record operating income of over $37 million. Revenue distribution was 45% to 50% from high-performance computing applications, about 20% from other advanced packaging applications, and the remaining among CMOS Image Sensor, compound semiconductor, front-end applications, and general 2D applications.

• Guided Q2 2025 revenue in the range of $120 million to $123 million, representing approximately 18% year-over-year growth compared to Q2 2024. - Expect a solid quarter for Q3 with a healthy backlog.

• Geopolitical issues and tariff policy creating market uncertainties, though currently no material impact on Camtek's business in terms of delays or order cancellations.

Q: Charles Shi asked about larger competitors like KLA coming into their market, especially in 3D metrology.

A: Ramy Langer responded that Camtek's systems are highly competitive, they are a midsized company well-positioned to meet market requirements, and their latest products offer competitive advantages.

Q: Charles Shi asked about product positioning in HBM4 and whether customers will buy new tools or upgrade existing ones.

A: Ramy Langer said customers tend to buy new equipment, there will be a combination of customers using Hawk for specific applications and others using new versions of Eagle, giving Camtek a strong position with multiple product approaches.

Q: Matt Prisco asked about growth into the back half of the year and update on new products.

A: Rafi Amit said they gave guidance for Q2 revenue, Q3 is solid with backlog and pipeline, and new products are meeting specifications, receiving more orders, and will contribute significant revenues in 2025.

Q: Kyle Bleustein asked about gross margin outlook and tariff impacts on share gains.

A: Moshe Eisenberg said gross margin expected to be 51%-52% next quarter, with new products gradually contributing positively; Rafi Amit said they monitor tariff situation but don't see competitive advantage from it yet.

Q: Blayne Curtis asked about HPC trends, HBM vs CoWoS, and geographic trends.

A: Rafi Amit discussed growth in HBM and CoWoS, emerging applications, and HBM density increase in 2027, and Camtek's position in these areas.

Q: Brian Chin asked about Q3 revenue sequential change, Logic/CoWoS revenue in 2025, and HPC Advanced Packaging revenue split.

A: Rafi Amit said Q3 is solid but too early to give sequential numbers, business in 2025 is higher than 2024, and details on HBM vs CoWoS split are not provided yet.

Q: Gus Richard asked about market share in HPC and customer design decisions.

A: Ramy Langer said Camtek is on a positive trajectory, maintaining and growing market share, and customers appreciate Camtek's support for new applications.

Q: Craig Ellis asked about order intensity, inorganic growth, and China business.

A: Ramy Langer said no material impact on orders due to market uncertainty, Rafi Amit talked about organic growth and potential for inorganic growth, and Moshe Eisenberg said China business remains healthy.

Q: Michael Mani asked about TSMC clean room constraints, CoWos-L impact, and China business.

A: Rafi Amit said no clean room constraints issue, CoWos-L brings opportunities and Camtek is shipping products to OSATs, and China business is healthy with no significant decline.