Camtek (CAMT) 10 May 232023 Q1 Earnings call transcript

Company Profile

Participants

Kenny Green	CCG Investor Relations
Rafi Amit	CEO & Director
Moshe Eisenberg	CFO
Ramy Langer	COO
Brian Chin	Stifel, Nicolaus & Company
Charles Shi	Needham & Company
Craig Ellis	B. Riley Securities
Shahar Cohen	MORE Investment Capital
Alona Lahav	Aura Investments
Auguste Richard	Northland Capital Markets

Call transcript

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Kenny Green

Ladies and gentlemen, thank you for standing by. I would like to welcome all of you to Camtek's results Zoom Webinar. My name is Kenny Green, and I'm part of the Investor Relations team at Camtek. [Operator Instructions]. I would like to remind everyone that this conference call is being recorded, and the recording will be available on Camtek's website from tomorrow.

by the all press have should now company's received release. You the please view not, company's it If on website.

Ramy Eisenberg, Rafi, Mr. today summarize will have will results Camtek's the Moshe and Mr. of me open the Rafi CFO; Moshe With on to overview following take will trends, quarter, Amit, financial CEO; the by providing questions. discuss be and results of COO. recent Langer, available then Camtek's Ramy call, and an we Camtek's that, Rafi and Camtek's Mr. Moshe and your

regarding may contained that the I information, information internal cause on Statements Before or from of of like a company specified. contain only and are subject their including including we the size of begin, a of company's with demand and or portion are particularly Taiwan due portion change would call from reductions for unless this significant significant changing industry by in and well update a from the projected, These Korea, as the to forward-looking statements market of adoption foreseeable risks estimates, on and may revenues of to This the and to business trends, as result undertakes time concentration generate risks and are the forward-looking for to expectations expectations as differ which and price remind from to results call deviations result time but China statements. of countries, the everyone [indiscernible] the may obligation today, also related are filings forward-looking certain services Camtek passes. new this call and events in no in whether those these made when otherwise industry and provided increased market, as statements other changes its company risks also in our are and products risks new identified the statements expected uncertainties of customers general certain otherwise. that competition services countries, a economic events, these expects that to the actual and development of effects reminded timing as any conditions, products, materially Investors future of predictions SEC. future a reduced Camtek's as to

the harbor release safe Please also this and of that press contents note covers today's statements conference call. the

measures financial current and In presentation strategic management addition, used measures performance. are prospects useful earnings to GAAP the non-GAAP operations company's press company's financial by and assessment financial during make core included this for These and to believes in understanding evaluate call, to the full reconciliation that Management results discussed. of future ongoing A release. forecast the are certain are future. today's non-GAAP of measures non-GAAP the be will decisions, of investors'

like go call the hand Rafi, Rafi, And over to now I'd to ahead. CEO. Camtek's please

Rafi Amit

cost and Thanks in mix million. Kenny. good of with affected Camtek margin components. the came morning $XX.X of quarter closed of revenue some the XX.X%, by increase mainly Good everyone. The at afternoon, first or gross product

of X of XX% about we revenue. our for advanced These accounted segment the multiple first integration. of advanced heterogeneous Tier over our orders was In compound and and in XX%. the quarter, revenue orders customers XX% Front-end the Operating semi accounted packaging from system margin of applications. packaging for X to XX% Over revenue. interconnect quarterly came shipped field

systems other module DRAM decline revenue. system the market. expansion for XX% Golden of in potential installed we HBM customer of capability customer fan-out we QX plan new revenue at of the QX, the segment, first These In X DRAM for memory in a which last customer account pattern segment in and a anticipate If this front-end a installed to Eagle our segment spite module see for year. in at field, for over customers business delivered QX systems at and inspection this We Regarding represents the for the coming This additional growth X over in front-end quarters. our significant new our time. inspection our to customers. expand in application. the with increase other site will QX. systems were We the in a We and the ship

from an this Tier be of order to customer received X year. the advanced in third first During for delivered the systems packaging quarters for a quarter, and we X second

sales year-over-year. the we 'XX, decline estimate QX which to second represents the a Regarding to be similar X% quarter, of

stated segments, broad have leading will us specific relationships previous and base we to in outperform continue with we in our and the call, customers position enable our strategic that As customer to long-term industry. diversified believe

which customers. of on a situation Regarding foresee times becoming is times At are when and care. At we lead the world in experiencing stage, economic customers, potential this, the translate an a orders. is into there conduct it potential improvement to the this discussions second is with slowdown, half our business the our business 'XX. shorter, Based this our when considering moderate utmost hard like of for with

current situation monitoring forecast. to than long-term adjusting are expenses to our carefully rather We them and the the

need and delivery new because is sufficient afford of tough very inventory are requirement systems. meet the hybrid segment. we At quick for aggressive very a The fact schedule, thus why us reduce customers technology growth field with allow to as of They the transition to time, integration. to cannot solutions in develop expenses we time. in our on our will us same a to set to R&D committing bonding a erogenous that road offer aware swift maintain slowdown from such the we is to that a map That continue is which

of will new portfolio, applications. potential. products us capacity Looking the R&D are our about in new release to segments increasing this optimistic that map major penetrate The customers relevant year at making road the allowing are our and investment later in we growth expand

In efforts our the continue available further will in increase M&A total we our addition, market. we

And results. the now review Moshe will financial Moshe?

Moshe Eisenberg

a will between the issued ahead, the end at results the earlier today. Rafi. table non-GAAP the release I In of non-GAAP and on reconciliation the results Thank my provide press the appear results GAAP in The summary financial basis. you,

at quarter a First came the was and Europe X% was revenue $XX.X decrease XX%. and split quarter for as the U.S.A. of XXXX. revenue geographic accounted million, of XX% The compared quarter follows: Asia with for first

This first to return quarter mix for was was the for the year the whole. as gross to mix as Gross result of a last inflationary the materials sales as We pressures cannot continued XX% which versus and raw quarter the year for expect XX% margin to labor, decline fully million. XX.X% last quarter. The on the profit customers. a and XX-XX is pass we $XX.X well of quarter in on

gross design focused As we improving engineering a some chain initiatives. initiated the which we margin mentioned supply through qualifications and process on cases, as last in require customer changes, time, have as well

the We see in level. time gross will that margin it note this I benefit from expect improvement But current gradual step. of we the the take full until

in is reported the current the operating the quarter expenses the year with million. reported the to and were was last margin This $XX.X and the million to $XX.X due in quarter. $XX.X shekel in in million profit versus of quarter. $XX.X quarter compared compared million decline Operating level. was the is the the first of the and in quarter. U.S. Operating strength year The XX% volume million in last $XX and previous compared in profit. quarter current XX.X% quarter last to in previous The business year previous million first gross to dollar Operating decrease to our Israeli $XX.X of is the expenses beneficial XX.X%

$XX.X $X.X in on shares year. income $X.X year. The significantly XXXX first is for as rates QX the our end of a compared million and income the million of or or last compared an increased interest Financial quarter diluted of $X.XX balance. quarter only increase QX the of This majority last net $X.XX million was of share $XX.X relates cash on Total income the was to diluted higher per of first $XX deposits to with million. for quarter in was number the Net of million per the share. $XXX,XXX

high-level million. $XXX some Total cash long-term cash, and cash, metrics. and flow XXXX, from equivalents, XX, sheet cash. cash Starting to was short March including balance deposits Turning as of

million, quarter, Accounts first we $XX.X generated cash had quarter. the a decreased receivables to at within $XX the due strong flow, the During a operations. million primarily and we last from to positive in quarter $XX cash end of collection from million

as XX days similar from down outstanding days, last at level QX Days Inventory of last was quarter. for level quarter. were XX

similar level In we expect terms QX. revenue of in QX, in achieved as at a guidance,

to take open myself with that, Rafi, questions. Ramy And will be and your Kenny?

Kenny Green

you, Moshe. [Operator Instructions]. Thank

from first Chin Our of Stifel. be question Brian will

Brian Chin

areas you've activity. what with, X guess on thinking inventory two, some broader some start And your And I as Yes, impact for half? do But blended what have this China kind of base? referenced the lower also indications starts you're describe what typically and does specifically. can meaningful maybe corrections seeing And Tier gross the I utilization about margins? you continue. also from in wafer is second where you are one, customer to some Clearly, I'm specific guess, have customer pickup

Ramy Langer

start answer. with the let me So

not we are related territories. talk specific to second advanced multiple all, So Definitely, half, it's main the strength. we a not show would equipment, for continuing I . just Tier China. drivers, segment The certain investing say, doubt see of is healthy, are the first territory. when about No the can talking some are increasing you It's are about capacity they X still packaging. to they And this customers and buy our are that applications.

The in and growth driving foreseeable the future. or least that be market is strong, growth will this for is continue compound will the the second Definitely, drive to is the the semi. healthy automotive market at area

for are opportunities specify that would say So POs have some also like I I these would here hand, through these to the we on opportunities. general. of major

the a think or part gross would of low say, in in reasons important. see, a notes I margin. from is are is on some a product the quarter a mix Now these I mix his say, X the positive it's I customers -- the cost of for the, our X would issues of mix Moshe it I there reiterated mentioned will again, general, definitely issue would but not mix Where margin. we not do And in it's effect in have here gross favorable. a the the Tier negative increase this side, that state and is

Our the customers affect Tier gross margin. positively X on

Brian Chin

is And XQ? intensity it's not maybe discuss memory or your advanced impacted my die packaging for memory is follow-up, order bandwidth you helpful. and Okay. shipping together? how market that guess, that's then just the Is related, whether in as I opportunity related? can That's was more share? favorably XQ significant market stacked control high that how And are also large process And

Ramy Langer

of first not all, memory. the So to are machine related orders

So other that's, applications. I advanced it's say, packaging would

and erogenous I So definitely, think is the transition is all, that's an is very servers obviously segment now the memory tied with a specifically, business. it. much back and seeing the into what high-bandwidth the grow, to and DRAM of the memory segment the first and going area this for that because high-performance to going use applications. to integration gaming going we they is memory there a are This is other healthy or other everybody using of

mentioned will the the in business, serve XX% this in early this our It's all major players. be in strong we and in I it year. revenues very have to a we it will what we of the market From So the say quarters, the quarter. next think it meaningful notes, be too still was of share, but size it general,

Kenny Green

Our next Charles from be question will Needham. Shi from

Charles Shi

bit that first I thing think a order. little to the more clarify nine machine I want is

you -- You press memory, advanced you bit a on release, a understand in not a I color packaging, little can strategically it's bit important that that. it's used order, more consider need why but the it's important strategically quarter? other in a expand Just

Ramy Langer

the a of customer significant we second all, is as potential a strategic see It's of of that in packaging this year and for reason first of 'XX. and half this there advanced machines a the very Charles, order, ours. number important in in this the is,

is the XX would in, nature of strategic the we that be say, customers it's definitely, selling to specific quantity machines potential will these next I the months. So

Charles Shi

business technology or size there yes, sounds it's but any it bump map Is the road definitely we nine from understand the this other important machine it's understand of capability side. strategically your something understand of level I higher -- but important, density, technology really the something machines, order, technology also I a perspective, is any that like basically important the do to it for mean, something noteworthy, else. understand high strategic, fine business, want I from Yes. or pitch, requires just mean, your side, a why product is I thing

Ramy Langer

From will we for see no entire this a and this view, reduce point tightening a the we trend RDLs and applications. of the the industry well And down size coming number on are of the customer increase as all as bumps, is doubt, we the dimensions technology -- becoming of defect is fan-out the applications smaller also smaller. page the similar

as customers as stage, can And the think first, point point number a would there well. be Charles. will be definitely I of and requirements this of of application this a view, at to So this I I definitely, much as customer say of And these for technology disclose think in the view, it's few I from quite them. is going from applications tighter

Charles Shi

Yes, Ramy. the as No color I problem. appreciate always.

have question So on financial the Moshe, I side. a

of terms want you your quarters. planning I understand financial to In here. few more the discipline into that going next cost exercise

said respond more. bit little think you near-term dynamics you're a going to I the to

of what's any your second second of as flat year-on-year? overall kind of in OpEx are you're about on are this thought the market year, half making So the Or on you the based today? the -- wonder improvement thinking budgeting for in you business half, and assumption, OpEx the terms thinking of especially on what

Moshe Eisenberg

of the the quarter you are much last with general, throughout somewhat continue all, year. And operating operating in first we -- reduced in So terms this see versus first already will we year. expenses level of expenses, pretty in the

notes, As focus in mentioned Rafi his the prepared be will R&D. on

SG&A, level, over to X R&D we other see level somewhat increase same the the on the in will aspect, you at of want an the OpEx keep see reduced the next a and the -- you quarters So expenses. level, if

Charles Shi

expect it. outlook. thinking Or that about you're some in in the it. business do here second Got That's on stable to improvement want Got environment. you how really half Just kind of the based market OpEx moderate assumption? to relative understand

Moshe Eisenberg

positive half. don't are in growth. So the a hand just hear we still in we view we to the the customers, on to some feedback one we taking do not bank clear On hand, have general, support orders from don't yet, second and it all but have

the We point, So whether the is at say provided some second too second early for stronger. gave It's we half. this half the to guidance going quarter. second be indication for to

based assumption current current business. my the So on on the operating expenses is level of

Ramy Langer

add customers. not I coming signs in territories. one reiterate just I from X I but to want customers are would to I I The it with we would and the like more -- multiple that thing, said see or It's answer, think it. positive say, related in previous to just X discussions Charles, the

POs, would of supported say, still, in by but So too months, yes, the a position second said, we in game be isn't quarter, major customers Moshe note. in But -- the as that are to some customers, hearing half. I a is believe from to early some it in third would multiple positive better really few I I much say, let's say, we'll the what discussing. be we'll say in will it

Kenny Green

Our Riley. . next from question B. from be Craig will Ellis

Craig Ellis

this with band XXXX I the around Congratulations by level. Is growth that sufficient of the year-on-year on high one year. versus to memory potential you're start your in execution just business's XXXX wanted view memory following type on up the clarifying just drive bandwidth team. strength comments to in seeing revenue the and for

either more in perhaps So very term, was that strength XQ. XQ or business' the about in the near

Ramy Langer

our expecting XX% would that revenue alone. quarter. of I let's So expecting, first say at segment least say, all, for the similar this And I'm we something are of revenues about I'm for next

growth up throughout that is just the and area area. a to all think picking see and an people this everybody this it's specific year, is not understand is I that talking, you one related is vendor,

So it in I to saw meaningful, will larger 'XX, numbers. help something be definitely, would that and be think this will the keep we it significantly what is us

Craig Ellis

is the longer-term the compound question then business. it's helpful, part semiconductor of regarding second the a really Ramy. question. And That's And

things that the concerned in of automotive over market given be the investors of have months pressures ability the the semiconductor One global been intermediate some to about seen that have an the few for been last is term driver. growth compound

providing without a could be this year about So any what that driver? compound your will a in XXXX. be that looks business semi being takes growth provide guidance, you gives talk just a like strong confidence, can and are to the sustainable the could pro What after

Ramy Langer

similar we rate note. already all, last at we which First year, are good a is than a of continuing experienced

Now specific from and the this some I'm area, into market looking this with backed and least capacity this And of throughout we customers. are continue definitely, forward year, expanding getting are discussions increasing thinking getting will seeing 'XX. in that to for customers of 'XX market. by invest in and at feeling with the the are we POs or that this

view, point looking at that of this we say positively. from market So are I would

Craig Ellis

things mostly my dynamics Ramy. repeated there talk helpful, over to references question, with some I'll Moshe, really just on were that quarter. And there gross Moshe. That's margin, provide the a it product bandwidth line the And see you that timing bit margin. you'd to that? would on it or high some color which in with be end expect a market cetera. packaging or was with bit last basis in a can for about Can you then mix advanced of gross memory, et improvement the more and the flip you are more then little happening to that Was it serves, little whether mentioned

Moshe Eisenberg

is understand this and of that Thank gross to improve to all, area an the of us margin, we you, point, of with first we gross need focus this respect obviously, Craig. margin. at

the mentioned would mix, higher margin. on it's across say So gross Ramy board. which the driving customers, are -- before, the Rafi product that relatively I X Tier And

-- on margin it's the material of bill a few cost So not But relatively most a the is that's the much side. the that issue product of story that we of initiatives. reducing driving whole the smaller the are And very focused on little bit customers down. here, are the through

First pass all -- pressures. and inflationary cannot of the obviously, these customer, we we on all, to

design into some making customer it's we cases, So do what we you of for to some have in that process. account some is, take But first we the need we And to all, do the are in changes system. -- that. qualifications of a get long

takes it we benefit will until time the of see So that.

The other is with market negotiation customers through now chain aspect is a softer. the and obviously little bit supply -- initiatives,

believe we of some able So with seeing into to we will cost savings Taking that inventory well. certain we with fact here be are the as level structure. the that achieve higher account

time So benefit we will until improvement, as we of I but the gradually, said, this takes see it activity. see full

Kenny Green

Zhang from of will Our next question be America. of [ph] Bank Dougson

Unidentified Analyst

I Just target a remind year target. follow-up on XX% have that's if Could model what a a is or that And out us the is margin margin you gross for? you you think just know guys target? target that front. reachable still

Moshe Eisenberg

a we I at yes, the $XXX before. the $XXX see what to But know gradual do, reasons path. was that point We it's a target committed to for The year, full we've percent the a the plan operating we level. quarters. mentioned we but margin the specific answer on process gross our this for is was will and Yet, for benefit it's the this still . and are about we million to XX-ish again, that for a And few we a based say revenue even need would are to million level. and revenue are target model below not target executing And business. return Yes. we more exactly in have

Unidentified Analyst

then just And on Understood. China. one

the around from customers direct from any thought of this some restricted sort didn't before. believe your ship to that restriction you U.S. So have front-end previously you any I impacts you kind received from incremental they increased are have were peers they Chinese this they of recently any clarification new this? activities you potential seeing have can revenue know guys Do clarification? revenue But said of government,

Rafi Amit

would focused of efforts see from strong. a we them I very a This component packaging. for that and And would come say only that performance a lot definitely, is are the I advanced are imported, is solution get get that. to performance. a we to high-end a say we to good high the performance. from efforts that high with should benefit or find where get different way cannot China, the they try can can and this way And on to And fit definitely,

Kenny Green

Vi Our of next Jefferies. question [indiscernible] will be from

Unidentified Analyst

I So have one. just

eventually have TSMC really bumps architectures. and going or and Intel talked their shrinking hybrid bumpless about So bonding into

for So tools the we going that this? architectures? start Does involve how you Or are strategically full you sort sort same of does once have? of involve of using into that a type platform positioned it pointing reengineering hybrid

Ramy Langer

his very products. to products here. targets hybrid party, thank So it who I these prepared of hybrid able of not for notes, people bumps. the paths only the definitely, doing. without there very X And are going to applications a the the address opportunity but our is will these for are bonding definitely, definitely, exactly question. you we big the one say hybrid that in new are current I think means It's for technologies talk with even Rafi introduce some bumps. mentioned bumpless, about would But is bonding, the us. be bonding the products not And definitely, But and we low-profile we of that targeted new with

address to hybrid the and with future. inspection be And challenges working are say, will both today, be needed bonding the doing We market from our metrology I customers that we will understand that would the definitely, products . requirements. able are in

Unidentified Analyst

leading dynamics yourself the Does where make does to follow-up or... the and market of more that, competing do some change like are right part of [indiscernible] you competitive that process the control of competitive a players. see versus the that with of this kind some And you now, some

Ramy Langer

the environment applications, But It's to hybrid most will whether in say It's change will it bonding. flavors it there are And change applications. one it this in think think at hard again, to just don't there very may are really not drastically. it I I certain stage change competitive of flavor. -- many the

I it's, new So say, definitely, a I people making much process. it's But integration, change. will would the don't packaging a be more think and advanced using heterogeneous larger, were it. there even

definitely, competitive. to and efforts, going So there very more opportunities going The we yes, be . competitive, be are R&D be to And to opportunities. compete able today confident are is market more it's that successfully technologies but will continue with our our and we there.

Unidentified Analyst

Okay. That question. And final makes sense. then one

being you XX% similar being of an revenues. integration XX% quarter. of when the do they're heterogeneous the dynamics? start And HBM gross your profile different advanced kind Either of margin targeting think HBM? you different a versus logic the revenues -- gross sort in package sort you Or So talked of margin about that of

Ramy Langer

customers for start, we X first let's of X and its accounted or the all, of advanced said the XX% integration. heterogeneous packaging and XX% So the Tier revenues

and correct So XX% just bandwidth more application. this definitely account it's to Heterogeneous But -- look, back for the high complex a complex quarter, is integration your going both. in to memory question, didn't but it. applications

is small number time them. at inspection. gross You the high machines, of inspect are a a required a pumps margin accuracies do and there on large the of then very with These nominal very to kind

erogenous in is will healthy. the be we advanced are . margins able that it, in And DRAM all portion continue will that good. area packaging margins gross of the general, definitely, dominate there the this dent integration I good all, overall a the be and to So believe

Kenny Green

Auguste will of question Northland. Richard next from Our be

Auguste Richard

I'm Xs over Just last that of forecast. quarter how terms of give is hitting is of top turns for quarters a guidance? And forecast? sort laying just expectation couple in in of the wondering in your the Tier of your you changed a on terms deliveries And your

Ramy Langer

in focus point Look, from general, of a view.

but difficulty a regular things. even order, sometimes we normal it pretty think you quarter, yester you mentioned ship they pools -- big pushout, or all in think the give forecast So general, will dates. I the for But change reason is will very the in they today, only it you the is give also be allow many shipment very customers, I this close can customers, the the is clear last working an is delivery to a in the to forecast to and they

this size the And I But with give uncertain. to Moshe a until less longer-term forecast. the forecast, the think I really see is, would will when the there finish we have be ask they the business from difficulty us delivery the And the this will the for business secured. say, the it. [indiscernible], that for pipeline sure is today part industry main clean month is they that next so And customer room, overall, understanding of general, the in the of they is are they they about know talked

confident I really the long-term more to that about for once with potential, to But the is certain -- a issue And there be even will is a more are better to is back this to are we believe, that certain, as the comfortable now think explained, be we the second achieved, We normal. level feel get to things forecast. industry half. we

Auguste Richard

And that turns a in around it the number? changed? in low Any is color . still has quarter, there that? how percentage? Is increase Or an

Ramy Langer

the within quarter. that general, quarter Look, too I and don't the same many changes changes would minimum. within have the in say We

Auguste Richard

just I is that adopting a of products Got integration. then a to And these some have trend it. appears are of it -- you're volume higher follow-up, for sort heterogeneous wondering, seeing? driving And large orders

Ramy Langer

is really bonding hybrid Look, No. starting.

from time. take we're I away. think hybrid orders large will see wounding, a will we until So It while

is this think clear. I

R&D. in today mostly is this think I

We're packaging. the today We orders are that working are with in these advanced our customers that are for but developing. involved activities, you are seeing

very of to microns more are RDLs like think We the -- lot was asked, memory. more dimensions a and much a even getting that X tightening high-band we I question on shrinking. are the are and seeing are The Wayfairs, -- previous becoming there are going the Obviously, bumps the beyond.

the get to next bonding, step denser there industry are answer is and this be but not will yet. we starting hybrid denser. The So

Kenny Green

O'Malley be question from next will Our Barclays. Tom . from

Unidentified Analyst

is Tom This [indiscernible] for on Will O'Malley.

Just a few questions.

has packaging. advanced do question, First it to with

in Just half the you quarter of throughout curious see the how second that and trending second year. the

Ramy Langer

when I compound the think in advanced in believe talking previous talk multiple discussed one customers. we that to is solid. we territories, this customers talking we mentioned coming after and business is potential with half, that with in different about improvement it's packaging customers from questions the a strength And area. of second the The discussions in we semi

we area these, are an where this positive about. is So

Unidentified Analyst

Awesome. second gross know as products it's enough. margin. Quick about gross you margin? quick do half, new question as been this for I tailwind introduced see you guys on the in a asked But

Moshe Eisenberg

The a them Yes, the the year gross in will answer impact will with perspective, small that will things because new least is second profile. be in at margin at yes. But relatively be, the introduce higher to this put will we come just half only products of point.

chunk So margin have in will contribution. big the definitely gross But only will orders they and XXXX. numbers higher follow

Kenny Green

[Operator Instructions].

from Alona Investments. will Aura Lahav of question next Our be

Alona Lahav

of see Could market? the potential the how please quantify What's it horizon? longer-term years? And the the you on do the addressable you potential HBM next evolving couple over still of size

Ramy Langer

are additional be it other driving be about move DDRX the can it's there First DRAMs not to about a mentioned talk the our But think give bonding. wire to other that as of to of advanced from away all, I to such XX% can it applications growth you the DRAM, more. when that don't packaging revenues. think HBM, us are go and lot applications we just I

than lot more the a I'm sure itself. So in . XX% XX%. definitely, even long by HBM, all has all potential can be be The term than more memories not to

Alona Lahav

Okay. were stronger the And which and breakdown, areas, about could provide within less regional landscape region? regions you this how color you quarter which some do the regarding please each or strong competitive see

Moshe Eisenberg

and largest So competitive was Taiwan. within territory China within territory That's each with -- Korea within landscape and Asia, dynamics and the largest the then the and that [indiscernible]. the

Ramy Langer

competitor, there in different the view very competitors dynamics the general, see I small. but the board, size then guys are the China, few, in would players you we all, are more second-tier ready of point start-ups, I local In And with some, are I with one say, think years. think our to All for on would is market compete competitive. a their from and Korea, across from still I And say, us is are from in competing innovation. They Singapore. I coming think main between would are not we which some these Taiwan, territories. there

So competitive, change and in there last a don't difference would see major . say, the any the I in I situation quarters. few is I don't think

Alona Lahav

And U.S. out and what Europe?

Ramy Langer

story. Same

Alona Lahav

or Europe U.S. of breakdown a size... the provide what's you Did

Ramy Langer

I that in think as year. last year, compared XX% we XXXX it, when finished It's we believe rest finish to little quarter. look we for it's mentioned a this the the will of the we and low that into we previous year the

Kenny Green

Cohen Shahar from be Capital. of will question Last Investment

Shahar Cohen

X% yet decline hard Finding reconcile higher-margin experience so and to in dollar growth stands to it very U.S. X%, gross cost you shekel your on depreciation in you the sell the getting a fabs side. and in and that the to factories, dynamic in -- fact enjoy customer,

-- It's it's effect. high. So impactful really but very

maybe more happens, can -- it. second the is cost, So HBM. specific color can something mistake, something the you -- about what manufacturing about some And you gives about that the detail special

correctly the business? you see we restate think of what Given basically MD XX% why HBM do NVIDIA, with your

Ramy Langer

is have gross I from numbers point our this less that our as what customers, at and the ones with for to when a and foreseeable the But it will nothing opportunity is it we the of is our grow, would required. able to -- overall are be with and say, grows. So limiting larger, the machines coming so is all and for In at limited to margin gaming, more. the more it's And or of of potentially the if we assumptions when question. the needed from view, if machine. the good we we're know let a least, there the be there's not from at first then future. it are least an look definitely that understand said, this it me issue more talk I and go start that serving all, the HBM numbers applications understand, the We're But yes, we'll market and discussions surprise maybe and numbers will you manufacture our us. I that customers, good be not what can big we'll be doubts would business us, NVIDIA a

Moshe Eisenberg

regarding Let margin, me Shahar. gross the question first the address

little very have we level. line Most the of So margin Israeli-based are level. OpEx expenses the are on gross the salaries the below

is to little very gross impact there So the rate favorable the margin. exchange of

inventory most -- of is hope this the mean, as said, overall, combination, already that the something as gradual higher the last we last it's over until gradual and you fact increase is material. this not what well margin. costs. have This of the the time, we structure. our expense And with is why it we improvement the now will the discussed mix helping a described product we years is is a expense this experienced to see I that Second, as take this we material of understand is issue. combination And time the I of gross that on couple quarter,

Kenny Green

ends question-and-answer session. that And our

via ahead. you be to Camtek's to So let statement. and this Relations the go thank should soon joining that closing in please of I able hand Rafi, to coming section like call over of the the you call for recording before the I to zooming. to to Investor like recording everybody for we website, Rafi to this will would hours, get back I hand also would and know conference upload Rafi, the the

Rafi Amit

you and for would quarter. and talking support. team management To your I goodbye. you next like long-term my thank Thank thank their for want to to forward our thank tremendous all I you, employees investor, your especially I continued in our with Okay. performance. you business. I look the again for to interest

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