CAMTEK ANNOUNCES RECORD RESULTS FOR THE FOURTH QUARTER & FULL YEAR OF 2024

Q4 revenues of $117 million; Q1 2025 revenue guidance of $118-120 million, up ~23% YoY , /PRNewswire/ -- Camtek Ltd. (NASDAQ: CAMT) (TASE: CAMT), today announced its financial results for the fourth quarter and year ended December 31, 2024. 2024 Fourth Quarter Financial Highlights Record revenues of $117.3 million, a 32% YoY increase; GAAP operating income of $31.3 million (up 82% YoY) and non-GAAP operating income of $36.3 million (up 42% YoY), representing operating margins of 26.7% and 30.9%, respectively; and GAAP net income of $33.0 million (up 59% YoY) and non-GAAP net income of $37.7 million (up 34% YoY); GAAP diluted EPS of $0.67 and non-GAAP diluted EPS of $0.77. 2024 Full-Year Financial Highlights Record revenues of $429.2 million, a 36% YoY increase. GAAP operating income of $108.1 million (up 65% YoY); non-GAAP operating income of $130.3 million (up 56% YoY), representing operating margins of 25.2% and 30.4%, respectively; GAAP net income of $118.5 million (up 51% YoY); non-GAAP net income of $138.6 million (up 45% YoY); GAAP diluted EPS of $2.42 and non-GAAP diluted EPS of $2.83; and Operating cash flow of $122.2 million in 2024, which led to a year-end total cash, short-term and long-term deposits and marketable securities balance of $501.2 million. Forward-Looking Expectations Management expects continued growth in 2025 with revenues in the first quarter of 2025 in the range of $118-120 million, representing approximately a 23% increase over first quarter of 2024 revenues. Management Comment Rafi Amit, Camtek's CEO commented, "2024 was a year of a strong growth in revenue and even higher growth in profit. Looking ahead, Camtek ended 2024 with a record quarter and a strong backlog which indicates continued growth into 2025. As we enter 2025, we are excited to launch the technologically innovative Eagle G5 and Hawk systems that broaden our portfolio, enhance our competitiveness, and enable us to enter new markets." Continued Mr. Amit, "The growing demand for AI has positioned Camtek as a leader and facilitated our significant growth in 2024. We believe we will continue to capitalize on the increasing need for AI applications, which necessitate considerable investments in high-performance computing (HPC) hardware. We will further benefit as AI becomes integrated into mainstream devices like automobiles, robotics, PCs, and mobile phones." Fourth Quarter 2024 Financial Results Revenues for the fourth quarter of 2024 were $117.3 million. This compares to fourth quarter 2023 revenues of $88.7 million, representing a year-over-year growth of 32%. Gross profit on a GAAP basis in the quarter totaled $58.1 million (49.6% of revenues), an increase of 46% compared to a gross profit of $39.8 million (44.9% of revenues) in the fourth quarter of 2023. Gross profit on a non-GAAP basis in the quarter totaled $59.3 million (50.6% of revenues), an increase of 36% compared to a gross profit of $43.7 million (49.2% of revenues) in the fourth quarter of 2023. Operating income on a GAAP basis in the quarter totaled $31.3 million (26.7% of revenues), an increase of 82% compared to an operating income of $17.2 million (19.4% of revenues) in the fourth quarter of 2023. Operating income on a non-GAAP basis in the quarter totaled $36.3 million (30.9% of revenues), an increase of 42% compared to $25.5 million (28.7% of revenues) in the fourth quarter of 2023. Net income on a GAAP basis in the quarter totaled $33.0 million, or $0.67 per diluted share, an increase of 59% compared to net income of $20.8 million, or $0.42 per diluted share, in the fourth quarter of 2023. Net income on a non-GAAP basis in the quarter totaled $37.7 million, or $0.77 per diluted share, an increase of 34% compared to a non-GAAP net income of $28.2 million, or $0.57 per diluted share, in the fourth quarter of 2023. Full Year 2024 Results Summary Revenues for 2024 were $429.2 million, a 36% increase compared to the $315.4 million as reported in 2023. Gross profit on a GAAP basis totaled $209.9 million (48.9% of revenues), a 42% increase compared to $147.6 million (46.8% of revenues) in 2023. Gross profit on a non-GAAP basis totaled $218.0 million (50.8% of revenues), a 43% increase compared to $152.7 million (48.4% of revenues) in 2023. Operating income on a GAAP basis totaled $108.1 million (25.2% of revenues), a 65% increase compared to operating income of $65.4 million (20.7% of revenues) in 2023. Operating income on a non-GAAP basis totaled $130.3 million (30.4% of revenues), a 56% increase compared to $83.3 million (26.4% of revenues) in 2023. Net income on a GAAP basis totaled $118.5 million, or $2.42 per diluted share. This is an increase of 51% compared to net income of $78.6 million, or $1.61 per diluted share, in 2023. Net income on a non-GAAP basis totaled $138.6 million, or $2.83 per diluted share. This is an increase of 45% compared to net income of $95.7 million, or $1.96 per diluted share, in 2023. Cash and cash equivalents, short-term and long-term deposits, and marketable securities, as of December 31, 2024, were $501.2 million compared to $448.6 million as of December 31, 2023, and $488.7 million as of September 30, 2024. During the fourth quarter, the Company generated an operating cash flow of $16.2 million. Conference Call Camtek will host a video conference call/webinar today via Zoom, on Wednesday, February 12, 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_9cx6Ew0UQsucYsHDA_qMow 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; risks related to the Company's ability to effectively maneuver global trade issues and changes either in the U.S., Israel, or elsewhere in trade and export regulations, tariffs, and license policies, including formal or informal imposition by countries of new or revised export and/or import and doing-business regulations or sanctions, and further including 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; 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. and its subsidiaries Consolidated Balance Sheets (In thousands) December 31, December 31, 2024 2023 U.S. Dollars Assets Current assets Cash and cash equivalents 126,224 119,968 Short-term deposits 231,000 215,250 Marketable securities 30,813 18,816 Trade accounts receivable, net 99,471 87,300 Inventories 111,204 85,905 Other current assets 21,347 19,548 Total current assets 620,059 546,787 Long-term deposits 26,000 21,000 Marketable securities 87,115 73,576 Long-term inventory 11,879 9,023 Deferred tax asset, net 3,090 2,642 Other assets, net 2,001 1,370 Property, plant and equipment, net 54,196 41,987 Intangible assets, net 13,357 16,937 Goodwill 74,345 74,345 Total non- current assets 271,983 240,880 Total assets 892,042 787,667 Liabilities and shareholders' equity Current liabilities Trade accounts payable 46,630 42,187 Other current liabilities 77,280 54,487 Total current liabilities 123,910 96,674 Long-term liabilities Deferred tax liabilities, net 5,606 7,541 Other long-term liabilities 15,366 10,473 Convertible notes 197,925 196,831 Total long-term liabilities 218,897 214,845 Total liabilities 342,807 311,519 Commitments and contingencies Shareholders' equity Ordinary shares NIS 0.01 par value, 100,000,000 shares authorized at December 31, 2024 and at December 31, 2023; 47,541,682 issued shares at December 31, 2024 and 46,993,998 at December 31, 2023; 45,449,306 shares outstanding at December 31, 2024 and 44,901,622 at December 31, 2023 177 176 Additional paid-in capital 214,931 200,389 Accumulated other comprehensive income 203 129 Retained earnings 335,822 277,352 551,133 478,046 Treasury stock, at cost (2,092,376 as of December 31, 2024 and December 31, 2023) (1,898) (1,898) Total shareholders' equity 549,235 476,148 Total liabilities and shareholders' equity 892,042 787,667 Camtek Ltd. Consolidated Statements of Income (in thousands, except share data) Year ended December 31, Three Months ended December 31, 2024 2023 2024 2023 U.S. dollars U.S. dollars Revenues 429,234 315,375 117,293 88,690 Cost of revenues 219,283 167,742 59,161 48,902 Gross profit 209,951 147,633 58,132 39,788 Research and development costs 38,287 31,470 10,371 8,042 Selling, general and administrative expense 63,595 50,751 16,461 14,527 101,882 82,221 26,832 22,569 Operating income 108,069 65,412 31,300 17,219 Financial income, net 23,169 22,218 6,175 5,682 Income before income taxes 131,238 87,630 37,475 22,901 Income taxes expense (12,723) (8,998) (4,466) (2,111) Net income 118,515 78,632 33,009 20,790 Net income per ordinary share: Year ended December 31, Three Months ended December 31, 2024 2023 2024 2023 U.S. dollars U.S. dollars Basic net earnings 2.62 1.76 0.73 0.46 Diluted net earnings 2.42 1.61 0.67 0.42 Weighted average number ofordinary shares outstanding: Basic 45,279 44,725 45,428 44,882 Diluted 49,369 48,863 49,503 49,149 Reconciliation of GAAP To Non-GAAP results (In thousands, except share data) Year ended December 31, Three Months ended December 31, 2024 2023 2024 2023 U.S. dollars U.S. dollars Reported net income attributable to Camtek Ltd. on GAAP basis 118,515 78,632 33,009 20,790 Acquisition of FRT related expenses (1) 5,334 4,550 650 4,550 Share-based compensation 14,775 12,525 4,052 2,868 Non-GAAP net income 138,624 95,707 37,711 28,208 Non–GAAP net income per diluted share 2.83 1.96 0.77 0.57 Gross margin on GAAP basis Reported gross profit on GAAP basis 49.6% 209,951 46.8% 147,633 50.6% 58,132 44.9% 39,788 Acquisition of FRT-related expenses (1) 5,802 3,492 610 3,492 Share-based compensation 2,197 1,591 595 395 Non-GAAP gross margin 50.8 % 48.4 % 50.6 % 49.2 % Non-GAAP gross profit 217,950 152,716 59,337 43,675 Reported operating income (loss) attributable to Camtek Ltd. on GAAP basis 108,069 65,412 31,300 17,219 Acquisition of FRT-related expenses (1) 7,455 5,406 928 5,406 Share-based compensation 14,775 12,525 4,052 2,868 Non-GAAP operating income 130,299 83,343 36,280 25,493 (1) 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. During the three-month period ended December 31, 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 and three-month period 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. INTERNATIONAL INVESTOR RELATIONS Moshe Eisenberg, CFO EK Global Investor Relations Tel: +972 4 604 8308 Ehud Helft Mobile: +972 54 900 7100 Tel: (US) 1 212 378 8040 [email protected] [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

CAMTEK ANNOUNCES RECORD RESULTS FOR THE FOURTH QUARTER & FULL YEAR OF 2024

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