Camtek Ltd. (NASDAQ:CAMT) Q4 2023 Earnings Call Transcript
Camtek Ltd. (NASDAQ:CAMT) Q4 2023 Earnings Call Transcript February 20, 2024
Camtek Ltd. beats earnings expectations. Reported EPS is $0.57, expectations were $0.52. Camtek Ltd. isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Kenny Green: Ladies and gentlemen, thank you for standing by. I would like to welcome all of you to Camtek's Results Zoom Webinar. My name is Kenny Green and I'm part of the Investor Relations team at Camtek. All participants other than presenters are currently muted. Following the formal presentation, I will provide some information and instructions for participating in the live question-and-answer session. I would like to remind everyone that this conference call is being recorded, and the recording will be available on Camtek's website from tomorrow. You should have all by now received the press release, if not, please view it on the company's website. With me on the call today, we have Mr. Rafi Amit, Camtek's CEO; Mr. Moshe Eisenberg, Camtek’s CFO; and Mr. Ramy Langer, Camtek's COO.
Rafi will open by providing an overview of Camtek's results and discuss recent market trends. Moshe will then summarize the financial results of the quarter. Following that, Rafi, Moshe and Ramy will be available to answer your questions. Before we begin, I'd like to remind everyone that certain information provided on this call are internal company estimates unless otherwise specified. This call may also contain forward-looking information. These statements are only predictions and may change as time passes. Statements on this call are made as of today, and the company undertakes no obligation to update any of that forward-looking information, or statements contained whether as a result of new information, future results, changes, expectations or otherwise.
Investors are reminded that these forward-looking statements are subject to risks and uncertainties that may cause actual results or events to differ materially from those projected, including as a result of the effects of general economic conditions, risks related to the concentration of a significant portion of Camtek's expected business in certain countries, particularly China from, which Camtek expects to generate a significant portion of its revenues for the foreseeable future, but also to win in Korea, including the risks of deviations from our expectations regarding timing and size of orders from customers in these countries, changing industry and market trends, reduced demand for services and products, the timely development of new services and products and their adoption by the market, increased competition in the industry and price reductions, as well as due to other risks identified in the company's filings with the SEC.
Please note the safe harbor statements in today's release also covers the contents of this conference call. In addition, during this call, certain non-GAAP financial measures will be discussed. These are used by management to make strategic decisions, forecast future results and evaluate the company's future performance. Management believes that the presentation of non-GAAP financial measures are useful to investors' understanding and assessment of the company's ongoing cooperation and prospects for the future. A full reconciliation of non-GAAP to GAAP financial measures are included in today's earnings release. I'd now like to hand the call over to Rafi Amit, Camtek's CEO. Rafi, please go ahead.
Rafi Amit: Okay. Thanks, Kenny. Good morning or good afternoon, everyone. Camtek ended 2023 with record fourth quarter of $89 million in revenue at the upper end of our guidance, bringing our full year revenue to $315 million. Sales in 2023 predictably started modestly after a record year in sales in 2022, yet due to increase the amount of HPC-related product in the second half of the year, we experienced a significant increase in orders and sales, so that Q4 came in 20% higher than the first quarter of 2023. The gross margin in the quarter came in at 49.2% which is a continued improvement over previous quarters, as we had indicated earlier this year. The operating margin also showed an improvement to 29.2%. 65% of our revenue from product came from advanced interconnect packaging applications with a substantial portion coming from HBM and Chiplet modules.
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