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CAMTEK ANNOUNCES RESULTS FOR THE THIRD QUARTER OF 2024

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Camtek reported strong financial results for Q3 2024, achieving record revenues of $112.3 million, marking a 40% increase year-over-year. The company demonstrated robust profitability with GAAP operating income of $29.6 million (up 56% YoY) and non-GAAP operating income of $34.2 million. Operating margins reached 26.4% GAAP and 30.6% non-GAAP. GAAP net income stood at $32.7 million, while non-GAAP net income was $37.0 million. The company generated strong operating cash flow of $35.8 million and provided Q4 revenue guidance of approximately $115 million, representing a 30% YoY increase, driven primarily by High Performance Computing applications.

Camtek ha riportato risultati finanziari solidi per il terzo trimestre del 2024, raggiungendo entrate record di 112,3 milioni di dollari, segnando un aumento del 40% rispetto all'anno precedente. L'azienda ha dimostrato una robusta redditività con un utile operativo GAAP di 29,6 milioni di dollari (in aumento del 56% anno su anno) e un utile operativo non GAAP di 34,2 milioni di dollari. I margini operativi hanno raggiunto il 26,4% GAAP e il 30,6% non GAAP. Il reddito netto GAAP è stato di 32,7 milioni di dollari, mentre il reddito netto non GAAP è stato di 37,0 milioni di dollari. L'azienda ha generato un forte flusso di cassa operativo di 35,8 milioni di dollari e ha fornito una previsione di entrate per il quarto trimestre di circa 115 milioni di dollari, rappresentando un aumento del 30% anno su anno, guidato principalmente dalle applicazioni di High Performance Computing.

Camtek reportó resultados financieros sólidos para el tercer trimestre de 2024, alcanzando ingresos récord de 112,3 millones de dólares, lo que representa un aumento del 40% con respecto al año anterior. La compañía demostró una sólida rentabilidad con ingresos operativos GAAP de 29,6 millones de dólares (un aumento del 56% interanual) y ingresos operativos no GAAP de 34,2 millones de dólares. Los márgenes operativos alcanzaron el 26,4% GAAP y el 30,6% no GAAP. El ingreso neto GAAP fue de 32,7 millones de dólares, mientras que el ingreso neto no GAAP fue de 37,0 millones de dólares. La empresa generó un fuerte flujo de caja operativo de 35,8 millones de dólares y proporcionó una guía de ingresos para el cuarto trimestre de aproximadamente 115 millones de dólares, representando un aumento del 30% interanual, impulsado principalmente por aplicaciones de Computación de Alto Rendimiento.

Camtek은 2024년 3분기에 대해 강력한 재무 결과를 보고하며, 최고 기록의 수익인 1억 1,230만 달러를 달성하여 전년 대비 40% 증가했습니다. 회사는 GAAP 운영 수익이 2,960만 달러(전년 대비 56% 증가)인 강력한 수익성을 보여주었고, 비 GAAP 운영 수익은 3,420만 달러에 달했습니다. 운영 마진은 GAAP 기준으로 26.4%, 비 GAAP 기준으로 30.6%에 도달했습니다. GAAP 순이익은 3,270만 달러였고, 비 GAAP 순이익은 3,700만 달러였습니다. 회사는 3,580만 달러의 강력한 운영현금흐름을 생성하였으며, 4분기 수익 안내를 약 1억 1,500만 달러로 제공하였으며, 이는 전년 대비 30% 증가한 수치로 주로 고성능 컴퓨팅 애플리케이션에 의해 주도되었습니다.

Camtek a annoncé de solides résultats financiers pour le troisième trimestre 2024, atteignant des revenus records de 112,3 millions de dollars, marquant une augmentation de 40% par rapport à l'année précédente. L'entreprise a démontré une rentabilité robuste avec un résultat d'exploitation GAAP de 29,6 millions de dollars (en hausse de 56% par rapport à l'année précédente) et un résultat d'exploitation non GAAP de 34,2 millions de dollars. Les marges opérationnelles ont atteint 26,4% GAAP et 30,6% non GAAP. Le bénéfice net GAAP s'établissait à 32,7 millions de dollars, tandis que le bénéfice net non GAAP était de 37,0 millions de dollars. L'entreprise a généré un fort flux de trésorerie opérationnel de 35,8 millions de dollars et a fourni une prévision de revenus pour le quatrième trimestre d'environ 115 millions de dollars, représentant une augmentation de 30% par rapport à l'année précédente, principalement en raison des applications de haute performance en informatique.

Camtek hat für das dritte Quartal 2024 starke finanzielle Ergebnisse gemeldet, mit Rekordumsätzen von 112,3 Millionen Dollar, was einem Anstieg von 40% im Vergleich zum Vorjahr entspricht. Das Unternehmen zeigte eine robuste Rentabilität mit einem GAAP Betriebsergebnis von 29,6 Millionen Dollar (ein Anstieg von 56% im Jahresvergleich) und einem nicht GAAP Betriebsergebnis von 34,2 Millionen Dollar. Die Betriebsmargen erreichten 26,4% GAAP und 30,6% nicht GAAP. Der GAAP Nettogewinn betrug 32,7 Millionen Dollar, während der nicht GAAP Nettogewinn 37,0 Millionen Dollar betrug. Das Unternehmen generierte einen starken operativen Cashflow von 35,8 Millionen Dollar und gab eine Umsatzprognose für das vierte Quartal von etwa 115 Millionen Dollar bekannt, was einem Anstieg von 30% im Jahresvergleich entspricht, hauptsächlich angetrieben durch Anwendungen im Bereich High Performance Computing.

Positive
  • Record quarterly revenue of $112.3 million, up 40% YoY
  • GAAP operating income increased 56% YoY to $29.6 million
  • Strong operating margins of 26.4% GAAP and 30.6% non-GAAP
  • Positive operating cash flow of $35.8 million
  • Q4 guidance projects continued growth with ~$115 million revenue
Negative
  • None.

Insights

Camtek delivered an outstanding quarter with $112.3M in revenue, marking a robust 40% YoY growth. The 26.4% GAAP operating margin and 30.6% non-GAAP operating margin demonstrate exceptional operational efficiency. The company's strong performance is particularly noteworthy in the semiconductor inspection equipment sector, driven by High Performance Computing demand.

The $35.8M operating cash flow indicates excellent cash conversion and healthy working capital management. Looking ahead, Q4 guidance of $115M suggests continued momentum with 30% YoY growth. The expansion in operating margins, coupled with strong cash generation, positions Camtek well for sustained growth in the semiconductor equipment market.

The surge in High Performance Computing (HPC) applications is driving Camtek's growth, reflecting the broader industry trend toward advanced computing solutions. The company's inspection equipment plays a important role in ensuring quality control for sophisticated semiconductor manufacturing processes. The strong results indicate Camtek is successfully capitalizing on the AI and data center infrastructure buildout, which requires increasingly complex and precise inspection solutions.

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

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

Camtek Logo

Highlights of the third quarter of 2024

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

Forward-Looking Expectations

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

Management Comment

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

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

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

Third Quarter 2024 Financial Results 

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

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

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

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

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

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

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

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

Conference Call

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

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

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

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

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

ABOUT CAMTEK LTD.

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

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

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

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

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

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

 

Consolidated Balance Sheets

(In thousands)






September 30,


December 31,


2024


2023


U.S. Dollars

Assets






Current assets




Cash and cash equivalents

99,292


119,968

Short-term deposits

273,350


215,250

Marketable securities

26,839


18,816

Trade accounts receivable, net

70,749


87,300

Inventories

104,941


85,905

Other current assets

25,049


19,548





Total current assets

600,220


546,787













Long-term deposits

6,000


21,000

Marketable securities

83,188


73,576

Long-term inventory

11,309


9,023

Deferred tax asset, net

2,642


2,642

Other assets, net

2,034


1,370

Property, plant and equipment, net

47,418


41,987

Intangible assets, net

14,258


16,937

Goodwill

74,345


74,345





    Total non- current assets

241,194


240,880





Total assets

841,414


787,667




Liabilities and shareholders' equity






Current liabilities



Trade accounts payable

44,160


42,187

Other current liabilities

69,451


54,487





Total current liabilities

113,611


96,674





Long-term liabilities




Deferred tax liabilities, net

5,388


7,541

Other long-term liabilities

10,911


10,473

Convertible notes

197,651


196,831


213,950


214,845





Total liabilities

327,561


311,519













Shareholders' equity




Ordinary shares NIS 0.01 par value, 100,000,000 shares authorized at
September 30, 2024 and at December 31, 2023;




47,480,007 issued shares at September 30, 2024 and 46,993,998 at
December 31, 2023;




45,387,631 shares outstanding at September 30, 2024 and 44,901,622 at
December 31, 2023

 

177


 

176

Additional paid-in capital

211,229


200,389

Accumulated other comprehensive income (loss)

1,532


129

Retained earnings

302,813


277,352


515,751


478,046

Treasury stock, at cost (2,092,376 shares as of September 30, 2024 and
December 31, 2023)

 

(1,898)


 

(1,898)





Total shareholders' equity

513,853


476,148





Total liabilities and shareholders' equity

841,414


787,667





 

 





Consolidated Statements of Operations

(in thousands, except share data)


 

Nine months ended

 September 30,

 

Three months ended

September 30,

 

Year ended

December 31,


2024

2023

2024

2023

2023


U.S. dollars

U.S. dollars

U.S. dollars

Revenues

311,941

226,685

112,340

80,470

315,375

Cost of revenues

160,122

118,840

56,484

41,462

167,742







Gross profit

151,819

107,845

55,856

39,008

147,633













Research and development costs

27,916

23,428

9,770

7,756

31,470

Selling, general and administrative expenses

47,134

 

36,224

 

16,440

 

12,187

 

50,751


75,050

 

59,652

 

26,210

 

19,943

 

82,221







Operating profit

76,769

48,193

29,646

19,065

65,412







Financial income, net

16,994

16,536

6,370

5,672

22,218







Income before income taxes

93,763

64,729

36,016

24,737

87,630








Income tax expense

(8,257)

(6,887)

(3,273)

(2,679)

(8,998)








Net income 

85,506

57,842

32,743

22,058

78,632

Net income per ordinary share:

 

 

Nine months ended

 September 30,

 

Three months ended

September 30,

 

Year ended

December 31,


2024

2023

2024

2023

2023


U.S. dollars

U.S. dollars

U.S. dollars







Basic net earnings per share

1.86

1.30

0.71

0.49

1.76







Diluted net earnings per share

1.75

1.20

0.67

0.46

1.63







Weighted average number of






  ordinary shares outstanding 






  (in thousands):












Basic

45,912

44,614

46,016

44,728

44,725







Diluted

49,333

48,682

49,437

48,965

48,863

 

 

Reconciliation of GAAP To Non-GAAP results

(In thousands, except share data)


Nine Months ended

Three Months ended

Year ended


September 30,

September 30,

December 31,


2024

2023

2024

2023

2023


U.S. dollars

U.S. dollars

U.S. dollars

Reported net income attributable to Camtek Ltd. on GAAP basis

 

 

85,506

 

57,842

 

32,743

 

22,058

 

78,632

Acquisition of FRT related expenses (1)

4,684

-

650

-

4,550

Share-based compensation

10,723

9,657

3,614

3,137

12,525

Non-GAAP net income

100,913

67,499

37,007

25,195

95,707







Non–GAAP net income per diluted share

 

2.05

1.39

0.75

0.51

1.96

Gross margin on GAAP basis

48.7 %

47.5 %

49.7 %

48.5 %

46.8 %

Reported gross profit on GAAP basis

151,819

107,845

55,856

39,008

147,633

Acquisition of FRT related expenses (1)

5,192

-

610

-

3,492

Share-based compensation

1,602

1,196

596

389

1,591

Non- GAAP gross profit

158,613

109,041

57,062

39,397

152,716

Non-GAAP gross margin

50.8 %

48.1 %

50.8 %

49.0 %

48.4 %







Reported operating income attributable to Camtek Ltd. on GAAP basis

 

76,769

 

48,193

 

29,646

 

19,065

 

65,412

Acquisition of FRT related expenses (1)

6,527

-

928

-

5,406

Share-based compensation

10,723

9,657

3,614

3,137

12,525

Non-GAAP operating income

94,019

57,850

34,188

22,202

83,343







(1) During the nine-month period ended September 30, 2024, the Company recorded acquisition-related expenses of $4.7 million, consisting of: (1) inventory written-up to fair value in purchase accounting charges of $3.4 million. This amount is recorded under cost of revenues line item. (2) $1.8 million amortization of intangible assets acquired recorded under cost of revenues line item. (3) $0.9 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) $1.8 million reversal of tax provision related to the above adjustment, recorded under the tax expense line item.

During the three-month period ended September 30, 2024, the Company recorded acquisition-related expenses of $0.6 million, consisting of: (1) $0.6 million amortization of intangible assets acquired recorded under cost of revenues line item. (2) $0.3 million amortization of intangible assets acquired recorded under sales and marketing expenses line item. (3) $0.3 million reversal of tax provision related to the above adjustment, recorded under the tax expense line item.

During the year ended December 31, 2023, 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 was Camtek's (CAMT) revenue in Q3 2024?

Camtek reported record revenue of $112.3 million in Q3 2024, representing a 40% increase year-over-year.

What is Camtek's (CAMT) revenue guidance for Q4 2024?

Camtek provided Q4 2024 revenue guidance of approximately $115 million, representing a 30% year-over-year increase.

What was Camtek's (CAMT) operating income in Q3 2024?

Camtek's GAAP operating income was $29.6 million and non-GAAP operating income was $34.2 million, both up 56% year-over-year.

What were Camtek's (CAMT) operating margins in Q3 2024?

Camtek achieved GAAP operating margins of 26.4% and non-GAAP operating margins of 30.6% in Q3 2024.

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Semiconductor Equipment & Materials
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Migdal Haemek