CAMTEK ANNOUNCES RESULTS FOR THE FIRST QUARTER OF 2024

Rhea-AI Summary

Camtek announced its financial results for the first quarter of 2024, showcasing record revenues of $97.0 million with a 34% year-over-year increase. The company reported a GAAP operating income of $21.2 million and a non-GAAP operating profit of $29.0 million, marking 50% and 67% YoY growth, respectively. Additionally, Camtek disclosed a GAAP net income of $24.8 million and a non-GAAP net income of $31.3 million, along with a robust positive operating cash flow of $20.2 million.

Positive

• Record revenues of $97.0 million, reflecting a 34% year-over-year increase, showcasing strong growth.

• GAAP operating income of $21.2 million and non-GAAP operating profit of $29.0 million, demonstrating significant YoY growth of 50% and 67%, respectively.

• Strong positive operating cash flow of $20.2 million, indicating a healthy financial position.

Negative

• None.

Insights

Financial Analyst

Camtek Ltd.'s financial performance for Q1 2024 suggests a robust growth trajectory with a 34% year-over-year revenue increase, which is a strong indicator of the company's market expansion and successful execution of business strategies. The report reveals a significant 50% year-over-year growth in GAAP operating income and an even more impressive 67% growth in non-GAAP operating profit. These figures not only demonstrate the company's ability to scale effectively but also suggest operational efficiency improvements, as reflected by the substantial operating margins of 21.9% and 29.9%, respectively. Moreover, the generation of $20.2 million in operating cash flow is a testament to the company's strong cash generation capabilities, which is critical for sustaining growth and potentially funding future expansions without relying heavily on external financing. Heading into Q2 with a revenue guidance projecting up to 37% year-over-year growth, Camtek appears to be on a promising path, likely fueled by demand for HBM (High Bandwidth Memory) and Chiplets, indicating not only a solid product offering but also a favorable market environment for advanced semiconductor components.

Market Research Analyst

The semiconductor industry is increasingly dependent on technologies like High Bandwidth Memory (HBM) and chiplets, driven by the growing needs for high-performance computing and efficient data centers. Camtek's projection for Q2, which anticipates 37% year-over-year growth, indicates that the company is well-positioned within these high-demand segments. The substantial revenue increase in Q1 2024 and the optimistic Q2 guidance signal that Camtek is not only keeping pace with industry trends but might also be gaining market share. Such growth rates surpass the average for many semiconductor equipment providers, underlining Camtek's strong competitive position. However, investors should remain aware of the cyclical nature of the semiconductor market and consider the potential impact of global economic factors on future performance. Furthermore, the company's reliance on the sustained demand for specific technologies such as HBM and chiplets could pose risks should industry preferences shift or new technologies emerge.

Tech Industry Analyst

Camtek's focus on HBM and chiplets is a strategic decision that aligns with the tech industry's ongoing miniaturization and performance enhancement trends. HBM is at the forefront of providing high-speed memory solutions for graphics cards, servers and high-performance computing systems, while chiplets offer a modular approach to semiconductor design, enabling more flexible and scalable hardware architectures. The company's strong Q1 financials and robust Q2 guidance suggest they are effectively capitalizing on these advanced semiconductor technologies. As organizations continue to seek more powerful and efficient chips to drive AI, machine learning and big data analytics applications, Camtek's positioning in the market becomes increasingly relevant. Investors should monitor how well the company maintains its technological edge and manages supply chain dynamics, which can be challenging in the rapidly evolving tech landscape. Any significant advancements in competing technologies or shifts in customer preferences could influence Camtek's market position and, consequently, its stock performance.

Q2 revenue guidance of $100-102 million - 37% YoY growth - driven by HBM and Chiplets

MIGDAL HAEMEK, Israel, May 9, 2024 /PRNewswire/ -- Camtek Ltd. (NASDAQ: CAMT) (TASE: CAMT), today announced its financial results for the first quarter, ended March 31, 2024.

Highlights of the First Quarter of 2024

• Record revenues of $97.0 million, a 34% year-over-year (YoY) increase;
• GAAP operating income of $21.2 million (up 50% YoY) and non-GAAP operating profit of $29.0 million (up 67% YoY), representing operating margins of 21.9% and 29.9%, respectively;
• GAAP net income of $24.8 million and non-GAAP net income of $31.3 million; and
• Strong positive operating cash flow of $20.2 million.

Forward-Looking Expectations

Management expects revenues in the second quarter of 2024 between $100-102 million, representing a 37% mid-point increase over the second quarter of 2023. Given the significant visibility and strong ongoing order flow, continued sequential growth is expected throughout 2024.

Management Comment

Rafi Amit, Camtek's CEO commented, "I am pleased with the record revenues in the first quarter driven by strong demand for HBM and chiplets applications, which accounted for 60% of our business. The field of AI is changing our industry and Camtek is well positioned to benefit from this transformative trend. AI technology needs High Performance Computing (HPC) capabilities, which are based on architectures utilizing High Bandwidth Memory (HBM) and Chiplet devices as key components. The on-going surge in demand for HPC and our leading position at all tier-1 manufacturers continue to be the main drivers behind our strong results and outlook."

Concluded Mr. Amit, "Looking beyond 2024, as AI continues to transform the industry, we are very confident in our ability to capitalize on the trend and grow towards the milestone of annual sales in excess of $500 million."

First Quarter 2024 Financial Results

Revenues for the first quarter of 2024 were $97.0 million. This compares to first quarter 2023 revenues of $72.5 million, a year-over-year growth of 34%.

Gross profit on a GAAP basis in the quarter totaled $44.7 million (46.1% of revenues), an increase of 32% compared to a gross profit of $33.9 million (46.7% of revenues) in the first quarter of 2023.

Gross profit on a non-GAAP basis in the quarter totaled $49.1 million (50.6% of revenues), an increase of 43% compared to a gross profit of $34.3 million (47.3% of revenues) in the first quarter of 2023.

Operating profit on a GAAP basis in the quarter totaled $21.2 million (21.9% of revenues), an increase of 50% compared to an operating profit of $14.2 million (19.6% of revenues) in the first quarter of 2023.

Operating profit on a non-GAAP basis in the quarter totaled $29.0 million (29.9% of revenues), an increase of 67% compared to $17.4 million (24.0% of revenues) in the first quarter of 2023.

Net income on a GAAP basis in the quarter totaled $24.8 million, or $0.51 per diluted share, an increase of 21% compared to net income of $17.2 million, or $0.36 per diluted share, in the first quarter of 2023.

Net income on a non-GAAP basis in the quarter totaled $31.3 million, or $0.64 per diluted share, an increase of 53% compared to a non-GAAP net income of $20.4 million, or $0.42 per diluted share, in the first quarter of 2023. 

Cash and cash equivalents, short-term and long-term deposits, and marketable securities, as of March 31, 2024, were $466.3 million compared to $448.6 million as of December 31, 2023. During the first quarter, the Company generated an operating cash flow of $20.2 million.

Conference Call

Camtek will host a video conference call/webinar today via Zoom, on Thursday, May 9, 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_alZuWboVTLiwN27dla1wKA

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.

 

 

Camtek Ltd.
Consolidated Balance Sheets
(In thousands)
		March 31,			December 31,
		2024			2023
		U.S. Dollars
Assets
Current assets
Cash and cash equivalents		123,035			119,968
Short-term deposits		242,250			215,250
Marketable securities		11,941			18,816
Trade accounts receivable, net		86,365			87,300
Inventories		92,080			85,905
Other current assets		23,257			19,548
Total current assets		578,928			546,787
Long-term deposits		6,000			21,000
Marketable securities		83,781			73,576
Long-term inventory		9,984			9,023
Deferred tax asset, net		2,642			2,642
Other assets, net		1,829			1,370
Property, plant and equipment, net		42,767			41,987
Intangible assets, net		16,030			16,937
Goodwill		74,345			74,345
Total non- current assets		237,378			240,880
Total assets		816,306			787,667
Liabilities and shareholders' equity
Current liabilities
Trade accounts payable	38,871				42,187
Other current liabilities	59,237				54,487
Dividend payable	60,041				-
Total current liabilities	158,149				96,674
Long-term liabilities
Deferred tax liabilities, net	6,368				7,541
Other long-term liabilities	11,107				10,473
Convertible notes	197,104				196,831
Total long-term liabilities	214,579				214,845
Total liabilities	372,728				311,519
Commitments and contingencies
Shareholders' equity
Ordinary shares NIS 0.01 par value, 100,000,000 shares authorized at  March 31, 2024 and at December 31, 2023;
47,235,723 issued shares at March 31, 2024 and 46,993,998 at  December 31, 2023;
45,143,347 shares outstanding at March 31, 2024 and 44,901,622 at  December 31, 2023	176				176
Additional paid-in capital	143,559				200,389
Accumulated other comprehensive income (loss)	(410)				129
Retained earnings	302,151				277,352
	445,476				478,046
Treasury stock, at cost (2,092,376 as of March 31, 2024 and December 31, 2023)	(1,898)				(1,898)
Total shareholders' equity	443,578				476,148
Total liabilities and shareholders' equity	816,306				787,667

 

 

Camtek Ltd.
Consolidated Statement of Income (unaudited)
(in thousands, except share data)
	Three months ended		Year ended
	March 31,		December 31,
	2024	2023	2023
	U.S. dollars (In thousands)
Revenues	97,010	72,457	315,375
Cost of revenues	52,287	38,593	167,742
Gross profit	44,723	33,864	147,633
Operating expenses:
Research and development	8,912	7,554	31,470
Selling, general and administrative	14,573	12,115	50,751
Total operating expenses	23,485	19,669	82,221
Operating profit	21,238	14,195	65,412
Financial income, net	5,610	5,110	22,218
Income before incomes taxes	26,848	19,305	87,630
Income tax expense	(2,049)	(2,060)	(8,998)
Net income	24,799	17,245	78,632
Basic net earnings per share (in US dollars)	0.55	0.39	1.76
Diluted net earnings per share (in US dollars)	0.51	0.36	1.63
Weighted average number of
ordinary shares outstanding (in thousands):
Basic	45,074	44,522	44,725
Diluted	49,253	48,436	48,863

 

 

Reconciliation of GAAP To Non-GAAP results
(In thousands, except share data)
	Three months ended  March 31,		Year ended December 31,
	2024	2023	2023
	U.S. dollars		U.S. dollars
Reported net income attributable to Camtek Ltd. on GAAP basis	24,799	17,245	78,632
Acquisition of FRT related expenses (1)	3,384	-	4,550
Share-based compensation	3,118	3,194	12,525
Non-GAAP net income	31,301	20,439	95,707
Non –GAAP net income per share, diluted	0.63	0.42	1.96
Gross margin on GAAP basis	46.1 %	46.7 %	46.8 %
Reported gross profit on GAAP basis	44,723	33,864	147,633
Acquisition of FRT related expenses (1)	3,972	-	3,492
Share-based compensation	398	392	1,591
Non-GAAP gross profit	49,093	34,256	152,716
Non- GAAP gross margin	50.6 %	47.3 %	48.4 %
Reported operating profit attributable to Camtek Ltd. on GAAP basis	21,238	14,195	65,412
Acquisition of FRT related expenses (1)	4,671	-	5,406
Share-based compensation	3,118	3,194	12,525
Non-GAAP operating profit	29,027	17,389	83,343
(1) During the three-month period ended March 31, 2024, the Company recorded acquisition-related expenses of $3.4 million, consisting of: (1) inventory written-up to fair value in purchase accounting charges of $3.4 million, for both periods. This amount recorded under cost of revenues line item. (2) $0.6 million amortization of intangible assets acquired recorded under cost of revenues line item. (3) $0.3 million amortization of intangible assets acquired recorded under sales and marketing expenses line item. (4) $0.4 million re-organization expenses, recorded under the general and administrative expenses line item. (5) $1.3 million reversal of tax provision related to the above adjustment, recorded under the tax expense line item. During the year ended December 31, 2024, the Company recorded acquisition expenses of $4.5 million, consisting of: (1) inventory written-up to fair value in purchase accounting charges of $2.2 million. This amount was recorded under cost of revenues line item. (2) $0.4 million amortization of intangible assets acquired recorded under cost of revenues line item. (3) Inventory write-off of $0.9 million recorded under costs of revenues line item. (4) $0.2 million amortization of intangible assets acquired recorded under sales and marketing expenses line item. (5) Acquisition expenses of $1.7 million recorded under general and administrative expenses line item. (6) $0.9 million reversal of tax provision related to the above adjustment, recorded under the tax expense line item.

 

CAMTEK LTD.
Moshe Eisenberg, CFO
Tel: +972 4 604 8308
Mobile: +972 54 900 7100
moshee@camtek.com

INTERNATIONAL INVESTOR RELATIONS   
EK Global Investor Relations
Ehud Helft 
Tel: (US) 1 212 378 8040
camtek@ekgir.com

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SOURCE Camtek Ltd.

FAQ

What were Camtek's Q1 2024 revenues?

Camtek reported record revenues of $97.0 million for the first quarter of 2024.

What was the YoY growth in revenue for Camtek in Q1 2024?

Camtek experienced a 34% year-over-year increase in revenue for the first quarter of 2024.

What were Camtek's operating margins in Q1 2024?

Camtek's operating margins for the first quarter of 2024 were 21.9% for GAAP and 29.9% for non-GAAP.

What was Camtek's GAAP net income in Q1 2024?

Camtek reported a GAAP net income of $24.8 million for the first quarter of 2024.

What was Camtek's non-GAAP net income in Q1 2024?

Camtek disclosed a non-GAAP net income of $31.3 million for the first quarter of 2024.