CAMT - Earnings call transcript Q2 2024

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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 recordings will be available on Camtek's website from tomorrow.

You should all have by now received the company's press release if not you can view it on the company's website. call have the on me today Mr. we With Amit, Camtek's Mr. CEO; Rafi CFO; Camtek's Eisenberg, and Moshe Mr. COO. Rafi by will of Camtek's Langer, Ramy begin and recent Camtek's providing discuss market trends. results overview an the summarize financial then will Moshe results of quarter. the

Following your take that, available questions. Rafi, will and be Moshe to Ramy

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

reconciliation by Management presentation addition, call, In during non-GAAP and management useful make of discussed. the financial this decisions, future understanding evaluate strategic believes financial will used that These non-GAAP measures investors performance. measures current company's certain be results are forecast are to the an to earnings today's company's financial like assessment hand prospects non-GAAP for release. measures operations future. A GAAP full of Amit, to go over Camtek's CEO. call the the Rafi I are and Rafi, please ongoing to And of the included now core to ahead. would in

Rafi Amit

achieving were in Kenny. record of mainly pleased with split of in good over front-end distribution and or of XX% segment very Thanks, with products and improvement second XX% I'm were a about resulted you am sales systems announcement Tier rest operating carbide order afternoon, CMOS receiving OSATs, a ended modules and margin the for $XX million, packaging that X in PR, of to product I this HBM days compared issue for $X ago HPC multiple 'XX. The everyone. morning profitability few image since a applications. This Camtek silicon about this added approximately to a bringing and margin gross quarter increased an issued we flow, global inspect we entire advanced Good of customer representing million high-performance XX% in $XXX between for high-performance third with demand share of customer order other our million quarterly industry the wafers. Okay. PR regarding revenue the growth XX% year-over-year. QX computing-related row, for trends for and in over sensor revenue also reflected in the million is is XX%. The revenue about our $XXX.X quarter trend our The quarter million, with this the the the of a of reflected is XX% with order in from backlog current is happy million. our the to pipeline, future growth to quarter view $XX representing guidance the over computing $XXX revenue. Based of on mix midpoint our

in we expect are AI driver the as main equipment well. a semiconductor continued the HPC The growth quarter for is provider. key fourth market growth modules generative We in which for

developing Our revenues we have Xx and on From in into expect XXXX discussion since grown demand mainly substrates. modules in our HPC HPC-related order are and continue the system and and this XXXX. HPC include with advanced The rapidly, development of pipeline our customers, our products second for require cost-effective of QX which XXXX. for half of continued hand, modules chiplets, we production to technologies solutions. HBM quarter silicon from have

maintain of is one interconnects micron-level high pitch measuring not Moreover, a we inspecting and pitch. systems For in is more have before. and of our of of in yield wafers key at very use are participated to customers inspection a our high moving they to challenges a a micron number a from example, evaluating steps extremely XXth fine pitch. The new process with an single-digit steps industry

high current potential can and business generation our new expanding see with systems. for our we So

we and the current that volume at bumps systems state-of-the-art throughput. manufacturing sensors metrology are next-generation inspection, high generation new with that Our and equipped all the HPC-related perform products address and completed developing will to XD optics of believe we measurement types

allow HPC packaging be fabless implement additional for HPC. This and companies start to and will will AI OSATs trend expect capabilities for also suitable applications. that We producing IDM to model

only is respective countries strategic China economics and of capital components as from position The in the We semiconductor strong HPC, expect order it high relatively shift to regarding delivery our countries. Concern demand a advanced leading and of demand XXXX OSATs Moshe continue semiconductor therefore, as establishing that such equipment allows Moshe? generated for production countries up, analysts' the products a those of vision, expand forecast U.S., consider within components. in organize and local new us which countries reality in and us us strong manufacturing to their assets geopolitical phone this and in the Japan, will benefit semiconductor manufacturing industry and where design Clearly, Europe believe have key as the infrastructure will the growth demand. To such in make demand will with flow, demand that our review the to some XXXX. HPC well. the major growing for facilities mobile as decision efficiently accelerate their And end sum industry the growing facilities together for for us capabilities PC changes we by new for national meet expected operations with gives for clear for results. with the a long-term establishment financial now

Moshe Eisenberg

currently was second $X dividend the million in million in X% today. an XX.X% the to $X.X reported non-GAAP from Thanks, The my income was was quarter record respectively. Financial financial summary Revenue a April, generated in split mostly of million growth increase was Asia XXXX. The quarter. of quarter. in first and quarter. Net ahead, number diluted than will the reconciliation quarter for geographic previous increase compared the from paid to million. quarter year a manufactured in in in cost and is in the X%. improve first is profit second of the slightly million The for quarter from the relates quarter increase to came million end of share of offset mainly quarter press million XX.X mix Taiwan. Gross $X.X follows: issued mostly second is increase of compared than previous first $XX.X per coming year and in earlier that XXXX lower quarter the favorable at for for XX% quarter or the support quarter quarter XX.X% lower mostly structure Europe the of gross products. XX%, and as of in due decrease revenue of In mainly XX% This normal to $X.XX gross million, with second level the $XX $XX.X year. in the $XX.X quarter as expenses remain was of the is the of is non-GAAP Total net to the in quarter to accounted release to in the and the big on similar table million of second the results to compared Rafi. year The I will and the $XX.X the of last the at were shares gross the the cash $XXX.X million, per was for due in in million quarter the the compared revenue income is our up end last contribution the in quarter. quarter second basis. $XX.X GAAP of diluted due results for the XX%, of XXXX appears The at balance efforts of The quarters. Operating of $XX higher provide U.S. quarter and in between cash results in last which the for following a XXXX, increase million or $XX.X an Asia million the reported a the million quarter slightly share. the last product to to a Korea to and and by income HBM, quarter expansion to anticipate improvement the more XX.X% This XX% operations. Operating second planned demand last the the the quarter Operating margin year. was profit. $X.XX We the the due $XX.X of ongoing improved compared the the million, for previous throughout and the margin $XX.X our margin second in profit

The strong result over from level collection revenue and support coming the decreased in in quarters. Despite the in sheet high-level cash from the $XXX Turning end long-term compared equivalents of million. cash some operations as million marketable XXXX, million is $XX to in flow was a $XXX by $XXX growth the cash in on quarter quarter. quarter, sales We and $X This at back to million of as a quarter Inventory the cash anticipated the first revenue, previous of collection. to increase securities with balance and million strong receivables the of increased increased $XX.X very $XX million and accounts June quarter. metrics, the the including generated short- deposits million. to in and increase XX, the

Our improved outstanding day's XX XX to significantly sales from days.

we questions. be and with QX. to million Finally, revenue in $XXX Rafi, $XXX of third I to million And between open growth take with will your in the expect sequential Ramy quarter continued that,

Kenny Green

Thank Moshe. you,

at start So time, this we the session. will question-and-answer

have un-mute we will after your to raise I lot you take a hand We you few people and moments you question. which ask now for you have able will Zoom of introduce call a to on to you quite the your If platform. question, be do via a so ask questions. can the will call,

will Our Charles, Needham. ahead. Shi first be of please from question Charles go

Yu Shi

the on contribution module year? The to what's estimate question. HPC what's first from thought, management full want of current the the ask for overall the I

Ramy Langer

both contribution XX% we from entire in we the account for overall and Charles, chiplet between the HBM I as modules XX% anywhere think in to previous discussed HPC to year. or meetings, to expect

Yu Shi

Okay.

let's it's Or think you in percentage XX up? a still ballpark? like days is moving the say, to relative do So ago, similar

Ramy Langer

a in ballpark. similar it's think I

Yu Shi

do be ratio, didn't see you number would roughly mix the QX, question, you chiplet the Maybe the number half? provide any that X:X that? great. But versus will changes the second second into disclose you did HBM versus for for can a what ratio Okay. going to be if you second for chiplet, importantly, half, that Because HBM provide QX, but more

Ramy Langer

accurate think from but it the will So I will be between ratios In more overall, to change, to number, to be will entire will which talk quarter other. about are pretty the vary XX% both the one markets anywhere general, stable. XX%,

Yu Shi

sequential on X What's quarter say improvement Moshe X expectation margin XX% gross quarters? question improving which been gross see XXXX. is in next would quarter. Definitely one June, but next Well, do actually I great, for Maybe has every margin. the here for first since, quarters? for the other from you the

Moshe Eisenberg

anywhere the was and between has on XX% think last obviously, quarters. range. from to gross Indeed, margin product product an in cost structure quarter-to-quarter. improved ongoing is of mix the improve several a the a We This really to mix. that good efforts result depending It's XX.X%

I the I've couple be it of want within range next So but to commit quarters, now for that will mentioned. don't this

Kenny Green

be Stifel. from Chin next Our going question of Brian to is

Brian Chin

Thanks even see revenue kind even a some implication growth down for more this that this in of be taking question are that cetera, the XX%-ish would wafer-level a or But you can sequentially towards like color year few traditional improvement questions. and of other some of kind of your Any your you legacy sort helpful. year maybe starting of et business? year-on-year. Maybe visibility packaging, that in revenue that to is is on on businesses just specialty, building provide

Ramy Langer

it's year improvement. see think improvement packaging, we it's already XX% some it we will understand pickup other definitely on our we year. what advanced OSAT than are I about compared sensors. on spoke what Even think see overall, our starting And see, from can good is indication from quarter, customers sense, we I to what quarter, our as overall, close -- call next see I what in better this XX% to to we And businesses Brian, that are So it the CMOS this improvement and saw business. traditional an last a say we're businesses. definitely image be will was we some quarter. In you reading, the about we there that business can this for we Definitely, getting

Brian Chin

you. of to inspection Other business that not customers who seeing, sort their AI break out competitors seen packaging, like metrology even Okay. the this earnings even necessarily for or they're That's yours helpful. companies, some a of of their dominated back And business they've of seeing season, customer. And then a they've Korean breather pause of bit that kind customer and buying as business. seen maybe a in a of lot by even from a takes business being maybe of sort that digestion of large the period a

those seeing more maybe kind in your the your more HBM side. of seeing main the terms you of Or on players? trends? kinds business, chiplet few business? of it In of There's a terms are diversification is you across diversified people Are

Ramy Langer

complex. as all, comments We with related do we business all steps the more about this see see business see business we HPC the the So doing I is customers digestions. you discussion some on segment, a pause stable. we remarks, the least was definitely said, market, in -- players are first it's But on a this that and from really not to more into heard at HPC the the are the it. that there we do continuing think in his not we relevant is of Rafi bit And or XXXX. remarks the The doing, a pause. prepared And little

view, of it. see point do that from So we not

Brian Chin

their is next the challenges you some and Or customer Okay. comes into to And coverage of year. have And of $XX last back is talked of year the second need about have half that relative that maybe that of that and just million When their one maybe $X press they thing. HBM the orders another in for that, of this million circumstance the release on misjudgment they business? that other adds that? behind top there type when

Ramy Langer

wanted continue buy they of as they they these instance, some to a first number was reason. machines. they machines. big But continue it's aware few the are that deliver more will customers, all, to be adjustments not going for this and So to to machines customers I'm there felt not real the to buy In

are are our to to ready business grow in their business predicting I are think what they the future invest future. sense about is this very confident that they and is think I and that because customers foreseeable going the you're seeing

Kenny Green

Our from is Ellis next Riley. question Craig B. going to from be

ask As your reminder, like go you a the hand And please ask. to if you and Craig, platform. raise question, would may ahead a on

Craig Ellis

they'll degree comments follow-up of to of both year business? is HPC building be and the actually Rafi, to a bigger regarding for capacity OSATs chiplet-related the do your this expect there. I to in XXXX to asking wanted a by capacity for out the in Rafi, just out question And start in given now Camtek we how for where half that of OSATs chain are play supply expectations to this, and The you off part that need? second add

Moshe Eisenberg

Rafi, do you to answer want to answer? want or Rafi? take me do you this

Rafi Amit

quarters analyst we Look, and ahead. is And can in budget it's as usually in general, preparing we months. that, next the about said, X read our forecasts coming with discussions their for customers, year they're few visibility over --

I you information, that quarters, XX% today, from mentioned, must growing. We I what XX% business now. over see discussion, our as see all tell even mentioned, definitely we think, year-over-year. growth any we product, the but Ramy the about that I the mentioned, see talk is this So we that HPC few And change as analysts continue see right don't based over a we rate that growth some on can in growth customers from can the

-- for just more to predicted say didn't months. that in XXXX, is this this and the you even customers Now Ramy orders and he next mentioned, definitely few just need place today is he what the

we delivery. for very that of are type and we optimistic So organized are product in

Moshe Eisenberg

add, me Craig. Let

You spoke [indiscernible]. of

some strong. very this in and happen. we the OSAT talking will 'XX [ cover about we know move it's are more to OSATs starting the knew it it's is are in that capacity some an called getting So we will today us capacity Definitely slide business to is definitely, of come to area a process, are of what we ] than OSATs obviously discussions in weeks few and is from XXXX, And that this when ago. the it

-- from is believe of a So that our point on our view. we positive this move

Craig Ellis

Okay.

good. of that hearing we engagement and the million. and correctly to Ramy, orders I'm discussions And starting the convert as look you the July, you broader firm $X expect is for OSATs and in realm $XX as last call ecosystem we've would the one like, sounds pipeline that right? if Is month by that Rafi calendar as with clicks it what to So in into as the the now upside had million well would the of is we forward, pipeline seen with where

Rafi Amit

will looks general, In don't get right. you EPOs. our into pipeline definitely, into this want numbers, are I to to and convert good but start

Craig Ellis

then for helpful. second Moshe. That's the question is And

think heard manufacturing identify company activity of lending business but has costs is I like results Moshe, hard that that Rafi efficient I and things working the optimizations. been also a in know more we've other that would And be So overall expect gross kind to margin, tailwind for visibility the input I on operations.

some As at of gross gross the look that are what are to the where ahead, over volume just margin from and levers business we the improvement higher look controllables? as we how incrementally today? margin as we And the we in much company at versus the year, of now look last drive is

Rafi Amit

gross operating contribution So how ourselves in we operation people again, it's efficiency. is the that on not much translates a volume margin. margin and since that level the that should little processes. has out to as direct to of gross the a are expenses. big margin, a to can it's much smooth with bit early level, the contribute the certain with to hiring will into bit help the overall say say. organize as improvement but ahead Absolutely, early But How But on time gross is much of it the really, -- fact contributions, expenses gross most of exactly

Kenny Green

Thanks.

a platform. raise if you the on question, hand As a please reminder, have your

from Our BofA. question to is from be going Arya next Vivek

Michael Mani

Arya. is Mani on This for Vivek Michael

volume XXXX. guidance HBM have I a So very into strong of your customers couple provided and think sales for

in the your And than do million And -- hit words, business? orders? your target so able that earlier $XXX increase? more that you much of that more you on of maybe attaining confidence in a be in feel sales eventual is increased it recovery traditional have intensity that does expected target of you'd hitting addition, how other In given contingent confidence to

Rafi Amit

complete can it. Let me start and you

I X market. major say on the issues. Okay. growth the rate depends one would is Number

And have some don't customers to have facility. maybe facilities. they takes time demand, but great build enough It

cannot they they want, everything they if build want. even So

everything system, production. not So on depends the can not it's is provide ready running but sometimes We for facility a and installation us.

overall So that requirement. too there are many elements the affect

special build future side, the So to very our our comfortable feel from customers we machine, machine after to demand. for deliver to to we and comfortable very of complete with we effort R&D competitiveness keep ask more lot and a features, requirements more our ability definitely a feel meet because a for

believe everything So on everything to our growth. did we and depends us, market we maintain potential

to go to have we the market. Now

put production be to We infrastructure, enough have And the expand customers their the market to and sure have capacity. demand. room it have can meet that line and they enough to

market the there. is So demand

are can The -- their facility question if is our next We customers make really demands. it, can all direct ready. do the for ready

Michael Mani

Understood. upcoming next platform. maybe -- on And your one your

expect So color And this when released as expect? the this hybrid to towards this bonding uplift more geared market? hear do ASP additional system. we an you from nice be Is on updates of application? to have Do to what on you next-generation kind this any

Rafi Amit

information? Ramy, do give want you to some

Ramy Langer

Let me start.

It's say, think the early provide definitely we next in say months. not stage, there I products. would first few definitely all, new information on And this will take information. I to more the really we're more of provide we What stage more I it's information. these So start not that say ASP can public at too tomorrow. to something provide, an will at that It's we'll this to that to be ready improvement will

Rafi Amit

Xx example, we I a in for to million million per moves totally it, XXX It's -- develop XXX could Now wafer It's said, have a some about, wafer. customers of to from clear as mentioned per to example, let's script, say, that we solution. as need my to we for just bumps be see and lot. about that bumps more that, we

costs. Also, customer on be looks efficiency, fine to inspect that he economics, to enough not he can meet it's the on in pitch. it his sure the wants the Now

structure altogether, maintain lot good So make to that allow cost parameters a customers result. it's -- of to his and to a get

still So I they moving can in believe, beginning, year. finish R&D in we start production. next from will I they see We high more that tough the of volume. This is high are some would is already and all them And the to the the it, R&D, say application moving in of not very -- more see to volume. after

Kenny Green

next [indiscernible] Evercore. question from Our will from be

Unknown Analyst

So to give strength the understand the X was of how remaining semi, the and sense revenues one in wanted of pieces first XX the a more CIS, you're I front you your area traditional end. business, strength the versus days where specific about you the play compound between ago? talked us like the markets seeing out Could

Ramy Langer

So improvements. compound would semi, see in front some say, definitely mainly improvements I seeing general, and the the I we're we this, think we speak. in end as

non-HPC business of we're say, On previous year, ones where the definitely we what in this the to indications this beginning business in and was already the next -- we're would overall is the the coming CMOS for start to quarter grow stronger than it year. And these improvement, image I getting expecting late quarters. of business, businesses call sensors, OSAT

we am a that confident in important from And this that's continue numbers I to improvements the few will see business. at these quarters. next the part very stage of seeing that definitely, So now I'm the

Unknown Analyst

between revenue split the that X? And provide? Is of something you how would can you the a split provide

Ramy Langer

about Definitely, example, maybe this stage, compound overall that for to expected sensor be can even and I the higher. The image -- at is X%s very front, you about X% better would this the that that I quarter could something a when about they it's It's what think a tell and be XX%. in range I quarter, X%s. low in to can have the CMOS business. really little lower, of closer is XX%, this I we were the mean say

the these and see. are So numbers we'll

they we move I think improve will along. as

Unknown Analyst

And Is talked customers, this qualification I understand was, systems does is bit work? like, shipping applications That's the next-generation Like that increasing. question does had it of have you But little but your into the this about. to really process the a another very the your products helpful. of think, kind steps? here was into And you the take the next how I how this in fab also like I qualify on question much -- of inspection time I into to then had number penetrating that kind are address lines? you bumps

Ramy Langer

that's a Advaitia ]. So good question, [

of as and would buy would ask say done first Camtek remarks. and first, qualification, may have the a it with here for in of us equipment. run as testing we evaluation they process They in at the at our I So speak that us already some them would that our we've we to process. accept and part wafers and customers the of it qualifications would do the all, I lot started know this of we mean, And prepared said look the and

the very or very maximum evaluation, lot to weeks they on will customers, application, results The months But other months a the cases, but of overall, the accept that testing in we've it cases, equipment few machines. done say and the the in -- running internally. it would that our depends take it's I on the will few of based the

Unknown Analyst

Got it. your is Eagle say now they And the this is generations, the inspections you step addressing addressing more do differentiator? biggest Like what are platform? newer versus

Ramy Langer

And the a machine, is inspections the today we advantages our a will about can increase So share talk is is but of our business. business it of No metrology inspection, HBM, market, I that with doing machines, in of advanced expect inspection. doubt lot is and the increase. This market is much Even the also expect it continue metrology would even when that first general, a inspection lot on newer metrology after. to business packaging, that stages. larger and is of in in our we we chiplets, This of large a our is inspection. state-of-the-art, lot further. lot definitely our inspection say, share there all, this today bring is inspection we market do we it our one than of think inspection. I a we run And and

Unknown Analyst

helpful. in squeeze I'll it. one. last Got That's And one just

in talk So -- on? how trade on there first be 'XX? would it what don't basis, can and half the that out helpful the given break about you quarterly markets the of seeing a have that know China has but been any I coming you're color you concerns done how in

Ramy Langer

investments and more So definitely see seeing in edge This I expansion, end. in farms is where not the industry. more there and is really that is of there, lot would have government a front The say around are drastically and this business packaging. trailing changed backing advanced we for a the OSAT move playing in all we're And China including things China. this strategic we

not a see and to weakness we expect see in So to business do grow. stability of China, investment we and continued we see this continuing

Unknown Analyst

like you be a the of Could provide that see. helpful. advanced If fabs? give other, how China than that sense bigger would color, versus one splits trailing-edge I could packaging is out you any

Ramy Langer

in our general, applications. running been our target general, in I we've -- us, the signal edge been nodes the say has trailing main market. been leading-edge and been China. would mixed primarily in this our market. the has This In for business And we've our not been think I after, market, automotive in target has not it's

Kenny Green

question Tom of Our from is Barclays. O'Malley next

William Levy

for Tom O'Malley. This is Will on Levy

it? trending are And you in question is the of any at upsides to are a seeing advanced attributed this you how packaging, guys acquired acquisition, all? FRT since the Just had FRT on it

Ramy Langer

say can can... and All Rafi, maybe start and -- I in all, you will I

Rafi Amit

Okay.

Okay. Fine.

Ramy Langer

From it's is is there with coming into So and upside side, business The Camtek roughly is the we're is an the FRT, year. We a FRT in underway. business a target from are obviously said, acquisition this opportunities. as we small staying, target. seeing integrate said we all, all will happy we not definitely we very $XX this to effort gave and million, this meet relatively FRT of

numbers. the So big yet definitely, not see We it's in opportunities.

customers. We are talking with

opportunities we move happy. forward will a -- very customers believe for we we opportunities lot also business new fact we and they significant opportunities in that think that a the I FRT, integrate significant number general, will very FRT, about there, us. of and FRT to as enlarge acquired they're create get continue business a that the are get I excited that

that definitely, and on able these summarize, and thought indeed So will our our through products process we our it track complement to business are are be sell the acquisition to with we correct. force will FRT sales

Kenny Green

Our next Richard Northland. question from is Gus from

Auguste Richard

going to HBMX, how increase? a have HBMX you And by does In from HBM sense of terms do inspection your of much? intensity

Ramy Langer

on these the or It's little that stage also a based the are too our it's say, probably to from the processes would that as will intensify think really would of will steps at pinpoint technologies use. I hybrid Gus, and I customers HBMX. do inspection bit in that yes, definitely, lot a early HBM our in coming technologies configuration final, to on an general the move business But we that's area this and bonding.

Auguste Richard

and CPUs both Okay, got SRAM. chiplets it. And for bonding, intensity goes your up in clearly and then hybrid of terms

Ramy Langer

Definitely.

Auguste Richard

fan-out? much it. Got is of your then packaging, And how of these days advanced

Ramy Langer

Well, fan-out our we it's rest customers about call it. packaging, XX% we the traditional, number XX%, general, out talked big in of is and if XX% call XX% to we hard wafer-level is -- doing is other close OSAT is what if a about what about XX% to

a have is there. to in the me, a definitely challenges So many that growing. have number range I new front some some of number in And be opportunities are [indiscernible] There in and don't market percent XX-plus developed the address the it's to business. there steps we of but exactly fan-out going of our is

Auguste Richard

is Is business? the impacting -- about contingency you tensions Middle it And this East. if And manage how do does escalate worse, get just wondering are plans? guys through forbid difficult things in thinking it? But question, it it. your I'm a significantly heaven how Got you

Ramy Langer

first scenarios. prepared to we Israel several expect is customer meet So team this to deliveries, in all, development. be commitments our of and and including And the means here for able support

term, longer we thinking and through also situation. Obviously, production out is the are we Israel. about of think went I it this

in are FRT We manufacturing Cologne add new in capacity Germany. to at in planning facility our Europe

also have happen plan overcome plan. short term, that to we Longer in we short in the a term. term have So the a anything may

Moshe Eisenberg

to some to be scenarios, be all definitely we possible made we obviously, we And but could efforts -- really prepare. can't to whatever prepared prepared

Auguste Richard

to having part expansion capacity year a and for your the And apologize filled planning there for is out, deliver that investment in year are out how I to be it. in the Germany, next required? ask to then Got for question. terms as you close significant of getting ability the of product more and

Ramy Langer

done all, subcontractors, very by and So basic Flex. manufacturing international you so which our are the the first Jabil companies, know from no, X big is of manufacturing, investment, overall

view, from So capacity. have we of enough that point

enough will Here over additional facility of for and we said, in Europe. we in Israel, the manufacturing I have capacity million as $XXX capacity in add

any So capacity I point we have the this from view, enough of space, material also and of a for up ramp clean capacity upside, a room think can includes we overall scenarios from people.

well-covered view. So from think this we're point we very of

Kenny Green

of is question Jefferies. Ezra Wiener [ next Our ] from

Unknown Analyst

I guess X here.

I passing second next the second long-term like $XXX what a detail is just new orders, looks incremental? And half that pretty any then was would and getting at if close split? obviously And XX% in about to that about plan to going from Can your first the talk terms be Can talked leverage about like of year. your little about you give look The you would you're relative next It into you've gross there? model year. just million. on of more guess, about talked to you margins

Moshe Eisenberg

Yes.

upside our going we plus your that business we some portion to potential our backlog into previous So are business expectation, expectations? after. additional account what these prepare we from with on above Well, respect is first our of question, when hand take current

to upside. But with what quarter into are So the close well. end a I we we nicely originally. think say we an fourth the continued it have part coming going additional growth as what QX are very of to very year plus Hard is to and expected nice

to other gross relates Your question the margin.

the reach to few XX.X%. We going operate XX.X%, we months. coming are have plans definitely XX% contribution next to definitely in margin. the a think that in launch new to positive of at our of will level said or I So quarters, have the They gross weeks to products we coming XX% will the with we contribution the

be are change -- expectation able million our revenue to that gross So we to operate margin around $XXX-plus should going higher a -- the overall we the mentioned. when not we level, we to or reach that on close didn't we the XX%

Unknown Analyst

follow-up, And you to not quick then clarify packaging XX. wanted just discussed XX%, advanced that one XXs, at

put XXs, pieces it And XX, XX%, that you trying kind there be Just would quarter-over-quarter if you is? not of little is together. all can a detail the down give more at to what on bit

Ramy Langer

the It's was planning say, overall, the And shipments this HPC lower is were are around -- we are it's the And related we that growing. XX%, XX%. rooms. numbers It's percent. yes, result indeed, also clean to Definitely, these bit other vary and the X-X businesses of a when their little over and customers from as quarter-to-quarter.

wouldn't I too the here pay quarter-to-quarter. to much changes So attention between

XX%. think general, the year business, finish in we the to XX% expect stable the say, to HPC I anywhere as indeed we is and between

quarter to applications sensors definitely level the front-end businesses, will packaging, compounds, 'XX. in of other image we're CMOS and and in the that fourth wafer continue grow and doing third the lot The other a

but will mix So the not numbers change. big something changes, this is

Kenny Green

that will question-and-answer end session. So our

I at like would of of make Camtek's will hand statement. coming the camtek.com. Relations for conference you to that your this we I of Rafi, website closing all to hours, would And please let Rafi, the joining like call I over Before the in recording thank Investor call. section to to back upload everyone know the

Rafi Amit

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

Camtek (CAMT) 1 Aug 242024 Q2 Earnings call transcript