Highlights of the third quarter of 2024
- Record revenues of $112.3 million, a 40% year-over-year (YoY) increase;
- GAAP operating income of $29.6 million (up 56% YoY) and non-GAAP operating income of $34.2 million (up 56% YoY), representing operating margins of 26.4% and 30.6%, respectively;
- GAAP net income of $32.7 million and non-GAAP net income of $37.0 million; and
- Strong positive operating cash flow of $35.8 million.
Forward-Looking Expectations
Management expects revenues in the fourth quarter of 2024 of approximately $115 million, which would represent a 30% increase over revenues in the fourth quarter of 2023, with sequential growth in Q1 2025.
Management Comment
Rafi Amit, Camtek's CEO commented, "I am very pleased with the results of the third quarter and especially happy with the positive response to the introduction of our new product in September, the Eagle G5, as reflected by the $20 million orders announced last week. We recently introduced to certain key customers an additional new and advanced platform for the next generation of Advanced Packaging for which we have already received initial orders.
"Looking ahead, the demand in the HPC segment remains healthy. We expect the overall contribution of HPC to our business this year to be around 50% and expect it to be a major growth driver in 2025 as well. We also see an increased demand for a wide range of other applications."
Continued Mr. Amit, "Based on our current order flow, backlog, and pipeline, our revenue guidance for the fourth quarter is around $115 million dollars. Given our guidance for the fourth quarter, 2024 is expected to be a record year for Camtek with revenue around $427 million, which would represent 35% growth YoY."
Third Quarter 2024 Financial Results
Revenues for the third quarter of 2024 were $112.3 million. This compares to third quarter 2023 revenues of $80.5 million, a year-over-year growth of 40%.
Gross profit on a GAAP basis in the quarter totaled $55.9 million (49.7% of revenues), an increase of 43% compared to a gross profit of $39.0 million (48.5% of revenues) in the third quarter of 2023.
Gross profit on a non-GAAP basis in the quarter totaled $57.1 million (50.8% of revenues), an increase of 45% compared to a gross profit of $39.4 million (49.0% of revenues) in the third quarter of 2023.
Operating income on a GAAP basis in the quarter totaled $29.6 million (26.4% of revenues), an increase of 56% compared to an operating income of $19.1 million (23.7% of revenues) in the third quarter of 2023.
Operating income on a non-GAAP basis in the quarter totaled $34.2 million (30.4% of revenues), an increase of 54% compared to $22.2 million (27.6% of revenues) in the third quarter of 2023.
Net income on a GAAP basis in the quarter totaled $32.7 million, or $0.67 per diluted share, an increase of 48% compared to net income of $22.1 million, or $0.46 per diluted share, in the third quarter of 2023.
Net income on a non-GAAP basis in the quarter totaled $37.0 million, or $0.75 per diluted share, an increase of 47% compared to a non-GAAP net income of $25.2 million, or $0.51 per diluted share, in the third quarter of 2023.
Cash and cash equivalents, short-term and long-term deposits, and marketable securities, as of September 30, 2024, were $488.7 million compared to $453.9 million as of June 30, 2024. During the third quarter, the Company generated an operating cash flow of $35.8 million.
Conference Call
Camtek will host a video conference call/webinar today via Zoom, on Tuesday, November 12, 2024, 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_b54LkdsSS4KNojb_vrH76w
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.
