Camtek Receives Orders for over $25 million for Multiple Systems from a Tier-1 HBM Manufacturer

Rhea-AI Summary

Camtek (NASDAQ: CAMT) has secured orders exceeding $25 million from a tier-1 High Bandwidth Memory (HBM) manufacturer. The orders are for advanced inspection and metrology systems for HBM applications, with deliveries scheduled for the second half of 2024 and early 2025. This development reinforces Camtek's position as a leading provider in the HBM sector and enhances the company's visibility for upcoming quarters. CEO Rafi Amit emphasized that these orders continue Camtek's strong momentum in HBM applications, highlighting the company's growing prominence in this specialized market segment.

Positive

• Secured orders worth over $25 million
• Orders from a tier-1 HBM manufacturer
• Improved visibility for future quarters
• Strengthened position in the HBM market

Negative

• None.

Insights

Semiconductor Industry Analyst

The recent $25 million order for Camtek's advanced inspection and metrology systems from a tier-1 High Bandwidth Memory (HBM) manufacturer is a significant development in the semiconductor equipment sector. This deal underscores the growing importance of HBM technology in the broader semiconductor landscape.

HBM is a critical component in advanced computing applications, particularly in AI and data centers, where high-speed data processing is paramount. The substantial order size suggests a robust demand for HBM, likely driven by the AI boom and the need for faster, more efficient memory solutions in data-intensive applications.

For Camtek, this order represents more than just a revenue boost. It solidifies their position as a key player in the HBM inspection and metrology market. The extended delivery timeline, spanning from H2 2024 to early 2025, indicates a long-term commitment from the customer and provides Camtek with improved revenue visibility for the coming quarters.

However, investors should note that the semiconductor industry is cyclical and volatile. While this order is certainly positive, it's important to monitor broader industry trends, including potential oversupply issues or shifts in demand for HBM technology. Additionally, Camtek's ability to meet delivery timelines and maintain technological edge will be key factors to watch.

In the context of Camtek's overall business, this order likely represents a significant portion of their annual revenue, given that their 2022 revenue was approximately $320 million. This could potentially lead to increased investor interest and possibly impact the company's valuation in the short to medium term.

Financial Analyst

The $25 million order for Camtek represents a substantial financial win for the company. To put this in perspective, Camtek's Q1 2023 revenue was $72.7 million, making this single order equivalent to about 34% of a typical quarterly revenue.

The extended delivery schedule, spanning from H2 2024 to early 2025, suggests this order will be recognized over multiple quarters. This provides Camtek with improved revenue visibility and potentially more stable cash flows in the medium term. It's a positive sign for investors looking for predictability in the often volatile semiconductor equipment sector.

However, it's important to consider the potential impact on margins. Large orders can sometimes come with pricing pressures and the extended delivery timeline may expose Camtek to potential cost increases. Investors should watch for any guidance on gross margins in upcoming earnings calls.

From a balance sheet perspective, this order could potentially improve Camtek's working capital position. Depending on the payment terms, it might lead to increased cash flows or accounts receivable. This could enhance the company's financial flexibility, potentially funding R&D or other strategic initiatives.

Lastly, this order may positively influence Camtek's valuation metrics. If it signals a trend of increasing order sizes or market share gains in the HBM space, it could lead to a re-rating of the stock. However, investors should also consider the cyclical nature of the semiconductor industry and not extrapolate this single order too far into the future without additional supporting evidence.

MIGDAL HAEMEK, Israel, July 29, 2024 /PRNewswire/ -- Camtek Ltd. (NASDAQ: CAMT) (TASE: CAMT), today announced the receipt of orders for over $25 million from a tier-1 manufacturer specializing in High Bandwidth Memory (HBM). The orders are for advanced inspection and metrology systems for HBM with deliveries anticipated in the second half of 2024 and early 2025.

Rafi Amit, Camtek's CEO commented, "These orders continue our strong momentum for HBM applications, positioning Camtek exceptionally well as a leading provider for these applications and further improving our visibility for the coming quarters".

For more information about Camtek Ltd. and its advanced inspection and metrology solutions, please visit www.camtek.com.

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 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 our expectations and 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 and future contribution of HBM and Chiplet applications and devices to the Company business resulting from, among other things, the field of AI surging worldwide across companies, industries and nations; 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; ; and those other factors discussed in our Annual Report on Form 20-F as published on March 21, 2024 as well asother documents filed by the Company with the SEC 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.

Logo - https://mma.prnewswire.com/media/1534463/Camtek_logo.jpg

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 is the value of the recent orders received by Camtek (CAMT)?

Camtek (CAMT) has received orders valued at over $25 million from a tier-1 High Bandwidth Memory (HBM) manufacturer.

When are the deliveries for Camtek's (CAMT) recent HBM orders expected?

Deliveries for Camtek's (CAMT) recent HBM orders are anticipated in the second half of 2024 and early 2025.

What type of systems did Camtek (CAMT) receive orders for in July 2024?

Camtek (CAMT) received orders for advanced inspection and metrology systems for High Bandwidth Memory (HBM) applications.

How do the recent orders impact Camtek's (CAMT) market position in HBM applications?

The recent orders strengthen Camtek's (CAMT) position as a leading provider for HBM applications and improve the company's visibility for upcoming quarters.