Camtek Ltd. Q4 FY2024 earnings call

• Camtek ended Q4 and the whole year 2024 with record results. Q4 revenue was $117 million, up 32% YOY, and full-year revenue was $429 million, up 36% YOY. • The HPC segment is a key growth driver, with demand remaining healthy and expected to contribute at least 50% to the business in the first half of 2025. • Introduced two new models, Eagle G5 and Hawk. Eagle G5 is in operation at multiple customer production lines, and Hawk has completed qualifications with several customers and will be officially launched at Semicon Korea Show next week. • Market shift in HPC manufacturing where OSATs are increasingly involved, which is a positive opportunity for Camtek given its strong position with OSATs.

Camtek ended Q4 2024 with revenue of $117 million, a 32% year-over-year increase. For the whole year 2024, revenue was $429 million, a 36% year-over-year increase. The revenue distribution for the whole year was approximately 50% for HPC, 20% for other advanced packaging applications, and the remaining divided among CIS, compound semi, front end, and general applications. Q4 gross profit was $59.3 million with a gross margin of 50.6%, and operating profit was $36.3 million.

• Q1 2025 revenue guidance is between $118 million to $120 million, a close to 25% increase over Q1 last year. • Expect 2025 to be a year of growth well beyond the 5% WFE growth estimates, driven primarily by the HPC segment.

• Market uncertainties related to the pace of adoption of new technologies like hybrid bonding and potential delays in ramping up production. • Risks associated with foundry capacity issues that could impact the growth of the HPC segment if not resolved in a timely manner. • Dependence on key segments like HPC and advanced packaging, where any slowdown in demand could affect overall performance.

Q: Charles Shi asked about HPC contribution in H1 2025 and China revenue contribution.

A: Ramy Langer mentioned Camtek is less sensitive to specific customers and sees OSATs opening up, while Moshe Eisenberg stated China revenue was around 30%-35% in 2024 and expected to be in the range of 30%-35% in 2025.

Q: Kyle Bleustein inquired about hybrid bonding and HBM market.

A: Ramy Langer said hybrid bonding is starting in production with Hawk opening new markets, and HBM market is expected to grow at a high rate with other customers picking up if one slows down.

Q: Matthew Prisco asked about product traction of Eagle G5 and Hawk.

A: Ramy Langer said Eagle G5 makes Camtek more competitive and Hawk opens new markets for higher-end applications like 500 million micro bumps on a single wafer.

Q: Brian Chin asked about HBM 4 and Hawk vs Eagle.

A: Ramy Langer said Eagle handles most HBM requirements now, but Hawk may be preferred for double throughput in some cases.

Q: Vedvati Shrotre asked about revenues vs CoWoS capacity and gross margins.

A: Ramy Langer and Moshe Eisenberg discussed that capacity installed in 2024 supports 2025 growth, and Hawk and Eagle G5 have a positive impact on gross margin, with most impact seen in 2026.