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CAMTEK ANNOUNCES RECORD RESULTS FOR THE FIRST QUARTER OF 2025

1. Q1 2025 revenues reached $118.6 million, up 22% YoY. 2. GAAP net income increased to $34.3 million, reflecting 38% YoY growth. 3. Q2 2025 guidance predicts revenues of $120-123 million, 17-20% growth YoY. 4. Focus on advanced packaging supports growth in AI and HPC technologies. 5. Geopolitical environment shows no significant impact on business operations.

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FAQ

Why Very Bullish?

The robust financial results, increased revenues, and strong growth guidance signal investor confidence, reflecting a very bullish outlook similar to previous quarterly reports that led to substantial stock price increases.

How important is it?

The article presents critical financial data along with a bullish growth outlook that could strongly influence investor sentiment and stock price, highlighting Camtek's solid market position.

Why Short Term?

Immediate investor reactions to recent strong performance and guidance will likely influence the stock in the short term, akin to past earnings announcements that drove quick price surges.

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Q1 revenues of $118.6 million with strong profitability; Expects continued growth in Q2 2025 with revenue guidance of $120-123 million , /PRNewswire/ -- Camtek Ltd. (NASDAQ: CAMT) (TASE: CAMT), today announced its financial results for the first quarter ended March 31, 2025. 2025 First Quarter Financial Highlights Record revenues of $118.6 million, a 22% YoY increase; GAAP gross margin of 51.0% and non-GAAP gross margin of 52.1%; GAAP operating income of $32.7 million (up 54% YoY) and non-GAAP operating income of $37.3 million (up 29% YoY), representing operating margins of 27.6% and 31.5%, respectively; and GAAP net income of $34.3 million (up 38% YoY) and non-GAAP net income of $38.7 million (up 24% YoY); GAAP diluted EPS of $0.70 and non-GAAP diluted EPS of $0.79. Forward-Looking Expectations Management expects continued growth in the second quarter of 2025 with a revenue range of $120-123 million, representing approximately a growth of 17-20%, year-over-year.   Management Comment Rafi Amit, Camtek's CEO commented, "We have kicked off 2025 with record quarterly revenues and significantly improved profitability. Our primary growth driver for the coming years is advanced packaging, with a strong emphasis on high-performance computing (HPC) to support AI applications. This includes emerging technologies such as the projected upcoming transition from HBM3e to HBM4 devices next year, as well as the next generation of CoWoS and CoWoS-like solutions. These innovations are expected to create increased demand for new tools with enhanced technical capabilities." Continued Mr. Amit, "We are well-positioned competitively, strengthened by the successful launch of two new models: the Eagle G5 and the Hawk. Both systems support the new and latest packaging technologies and have been very well received by our customers, who value their advanced performance and versatility." Mr. Amit concluded, "Regarding the geopolitical landscape and tariff uncertainty, we have not experienced any material impact on our business in terms of delays or order cancellations. With our manufacturing operations located in Israel and Europe, and the majority of our sales concentrated in Asia, we expect our exposure to tariffs to be immaterial." First Quarter 2025 Financial Results Revenues for the first quarter of 2025 were $118.6 million. This compares to first quarter 2024 revenues of $97.0 million, representing a year-over-year growth of 22%. Gross profit on a GAAP basis in the quarter totaled $60.6 million (51.0% of revenues), an increase of 35% compared to a gross profit of $44.8 million (46.2% of revenues) in the first quarter of 2024. Gross profit on a non-GAAP basis in the quarter totaled $61.8 million (52.1% of revenues), an increase of 26% compared to a gross profit of $49.2 million (50.7% of revenues) in the first quarter of 2024. Operating income on a GAAP basis in the quarter totaled $32.7 million (27.6% of revenues), an increase of 54% compared to an operating income of $21.2 million (21.9% of revenues) in the first quarter of 2024. Operating income on a non-GAAP basis in the quarter totaled $37.3 million (31.5% of revenues), an increase of 29% compared to $29.0 million (29.9% of revenues) in the first quarter of 2024. Net income on a GAAP basis in the quarter totaled $34.3 million, or $0.70 per diluted share, an increase of 38% compared to net income of $24.8 million, or $0.50 per diluted share, in the first quarter of 2024. Net income on a non-GAAP basis in the quarter totaled $38.7 million, or $0.79 per diluted share, an increase of 24% compared to a non-GAAP net income of $31.3 million, or $0.64 per diluted share, in the first quarter of 2024.  Cash and cash equivalents, short-term and long-term deposits, and marketable securities, as of March 31, 2025, were $522.6 million compared to $501.2 million as of December 31, 2024, and $467.0 million as of March 31, 2024. During the first quarter, the Company generated an operating cash flow of $23.6 million. Conference Call Camtek will host a video conference call/webinar today via Zoom, on May 13, 2025, 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_VOFAWbAeRqiMCPBMWSJtDQ 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 industries' 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 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 HPC, 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 geographies; 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;our dependency on the semiconductor industry and the risk that adverse economic conditions, reduced capital expenditures, or cyclical downturns may negatively impact our results; the concentration of our business in certain Asia Pacific countries, particularly China, Taiwan, and Korea, which may be subject to trade restrictions, regulatory changes, or geopolitical tensions; and those other factors discussed in our Annual Report on Form 20-F as published on March 19, 2025 as well as other 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. 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. and its subsidiaries Consolidated Balance Sheets (Unaudited) (In thousands) March 31, December 31, 2025 2024 U.S. Dollars Assets Current assets Cash and cash equivalents 229,795 126,224 Short-term deposits 159,000 231,000 Marketable securities 32,745 30,813 Trade accounts receivable, net 100,402 99,471 Inventories 129,177 111,204 Other current assets 22,874 21,347 Total current assets 673,993 620,059 Long-term deposits 20,000 26,000 Marketable securities 81,101 87,115 Long-term inventory 12,298 11,879 Deferred tax asset, net 3,090 3,090 Other assets, net 1,701 2,001 Property, plant and equipment, net 55,026 54,196 Intangible assets, net 12,467 13,357 Goodwill 74,345 74,345     Total non- current assets 260,028 271,983 Total assets 934,021 892,042 Liabilities and shareholders' equity Current liabilities Trade accounts payable 48,134 46,630 Other current liabilities 79,598 77,280 Total current liabilities 127,732 123,910 Long-term liabilities Deferred tax liabilities, net 5,135 5,606 Other long-term liabilities 15,034 15,366 Convertible notes 198,198 197,925     Total long-term liabilities 218,367 218,897 Total liabilities 346,099 342,807 Commitments and contingencies Shareholders' equity Ordinary shares NIS 0.01 par value, 100,000,000 shares authorized at March31, 2025 and at December 31, 2024; 47,695,582 issued shares at March 31, 2025 and 47,541,682 at December 31, 2024; 45,603,206 shares outstanding at March 31, 2025 and 45,449,306 at December 31, 2024 177 177 Additional paid-in capital 218,715 214,931 Accumulated other comprehensive income 795 203 Retained earnings 370,133 335,822 589,820 551,133 Treasury stock, at cost (2,092,376 as of March 31, 2025 and December 31, 2024) (1,898) (1,898) Total shareholders' equity 587,922 549,235 Total liabilities and shareholders' equity 934,021 892,042 Consolidated Statement of Income (unaudited) Three months endedMarch 31,  Year endedDecember 31,  2025 2024 2024 U.S. dollars Revenues 118,638 97,010 429,234 Cost of revenues 58,074 52,287 219,283 Gross profit 60,564 44,723 209,951 Operating expenses: Research and development 10,362 8,912 38,287 Selling, general and administrative 17,502 14,573 63,595 Total operating expenses 27,864 23,485 101,882 Operating profit 32,700 21,238 108,069 Financial income, net 5,433 5,610 23,169 Income before incomes taxes 38,133 26,848 131,238 Income tax expense (3,822) (2,049) (12,723) Net income 34,311 24,799 118,515 Basic net earnings per share (in US dollars) 0.75 0.55 2.62 Diluted net earnings per share (in US dollars) 0.70 0.51 2.63 Weighted average number of   ordinary shares outstanding: Basic 45,561 45,074 45,279 Diluted 49,286 49,253 49,369 CAMTEK LTD. and its subsidiaries  Reconciliation of GAAP To Non-GAAP results  (In thousands, except share data)  Three months endedMarch 31, Year ended December 31, 2025 2024 2024 U.S. dollars U.S. dollars Reported net income attributable to Camtek Ltd. on GAAP basis 34,311 24,799 118,515 Acquisition of FRT-related expenses (1) 650 3,384 5,334 Share-based compensation 3,710 3,118 14,775 Non-GAAP net income 38,671 31,301 138,624 Non –GAAP net income per share, diluted 0.79 0.63 2.83 Gross margin on GAAP basis 51.0 % 46.1 % 49.6 % Reported gross profit on GAAP basis 60,564 44,723 209,951 Acquisition of FRT-related expenses (1) 610 3,972 5,802 Share-based compensation 584 398 2,197 Non-GAAP gross profit 61,758 49,093 217,950 Non- GAAP gross margin 52.1 % 50.6 % 50.8 % Reported operating income attributable to Camtek Ltd. on GAAP basis 32,700 21,238 108,069 Acquisition of FRT-related expenses (1) 928 4,671 7,455 Share-based compensation 3,710 3,118 14,775 Non-GAAP operating income 37,338 29,027 130,299 (1) During the three-month period ended March 31, 2025, 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 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-related expenses of $5.3 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) $2.4 million amortization of intangible assets acquired recorded under cost of revenues line item. (3) $1.3 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) $2.1 million reversal of tax provision related to the above adjustment, recorded under the tax expense line item. Media Contacts: CAMTEK LTD.Moshe Eisenberg, CFO Tel: +972 4 604 8308Mobile: +972 54 900 7100[email protected]  INTERNATIONAL INVESTOR RELATIONS   EK Global Investor RelationsEhud Helft Tel: (US) 1 212 378 8040[email protected]  Logo: https://mma.prnewswire.com/media/1534463/Camtek_logo.jpg SOURCE Camtek Ltd. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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