Q1 2026 Camtek Ltd Earnings Call

May 12, 2026

Speaker #1: This meeting is being recorded.

Operator: This meeting is being recorded.

Speaker #3: 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.

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 am part of the investor relations team at Camtek. All participants other than the presenters are currently muted. Following the formal presentation, I will provide some 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 from the link in the earnings press release and on Camtek's website from tomorrow. You should have all received by now the company's press release. If not, please view it on the company's website. With me today on the call, we have Mr. Rafi Amit, CEO, Mr. Moshe Eisenberg, CFO, and Mr. Ramy Langer, COO.

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 am part of the Investor Relations team at Camtek. All participants other than the presenters are currently muted. Following the formal presentation, I will provide some 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 from the link in the earnings press release and on Camtek's website from tomorrow. You should have all received by now the company's press release. If not, please view it on the company's website. With me today on the call, we have Mr. Rafi Amit, CEO, Mr. Moshe Eisenberg, CFO, and Mr. Ramy Langer, COO.

Speaker #3: All participants other than the presenters are currently muted. Following the formal presentation, I will provide some instructions for participating in the live question-and-answer session.

Speaker #3: I would like to remind everyone that this conference call is being recorded. And the recording will be available from the link in the earnings press release and on Camtek's website from tomorrow.

Speaker #3: You should have all received, by now, the company's press release. If not, please view it on the company's website. With me today on the call, we have Mr. Rafi Amit, CEO; Mr. Moshe Eisenberg, CFO; and Mr. Rami Langa, COO.

Speaker #3: Before we begin, I'd like to remind you that the statements made by management on this call will contain forward-looking statements within the meaning of the Federal Securities Laws.

Kenny Green: Before we begin, I'd like to remind you that the statements made by management on this call will contain forward-looking statements within the meaning of the Federal Securities laws. Those statements are subject to a range of changes, risks, and uncertainties that can cause actual results to vary materially. For more information regarding the risk factors that may impact Camtek's results, please review Camtek's earnings release and SEC filings, and specifically, the forward-looking statements and risk factors identified in the results press release issued earlier today, and such other factors discussed in Camtek's most recent annual report on SEC Form 20-F. Camtek does not undertake the obligation to update these forward-looking statements in light of new information or future events. Today's discussion of the financial results will be presented on a non-GAAP financial basis unless otherwise specified.

Kenny Green: Before we begin, I'd like to remind you that the statements made by management on this call will contain forward-looking statements within the meaning of the federal securities laws. Those statements are subject to a range of changes, risks, and uncertainties that can cause actual results to vary materially. For more information regarding the risk factors that may impact Camtek's results, please review Camtek's earnings release and SEC filings, and specifically, the forward-looking statements and risk factors identified in the results press release issued earlier today, and such other factors discussed in Camtek's most recent annual report on SEC Form 20-F. Camtek does not undertake the obligation to update these forward-looking statements in light of new information or future events. Today's discussion of the financial results will be presented on a non-GAAP financial basis unless otherwise specified.

Speaker #3: Those statements are subject to a range of changes, risks, and uncertainties that can cause actual results to vary materially. For more information regarding the risk factors that may impact Camtek's results, please review Camtek's earnings release and SEC filings and specifically the forward-looking statements and risk factors identified in the results press release issued earlier today and such other factors discussed in Camtek's most recent annual report on SEC Form 20F.

Speaker #3: Camtek does not undertake the obligation to update these forward-looking statements in light of new information or future events. Today's discussion of the financial results will be presented on an ungapped financial basis, unless otherwise specified.

Speaker #3: As a reminder, a detailed reconciliation between gapped and non-gapped financial results can be found in today's earnings release.

Kenny Green: As a reminder, a detailed reconciliation between GAAP and non-GAAP financial results can be found in today's earnings release. Now, I'd like to hand the call over to Mr. Rafi Amit, Camtek's CEO. Rafi, please go ahead.

Speaker #2: And now I'd like to hand the call over to Mr. Rafi Amit, Camtek CEO. Rafi, please go ahead.

Speaker #4: Thanks, Kenny. Hello, everyone. I will open with a review of the quarterly financial results. First quarter revenue reached $121.7 million, slightly ahead of our guidance.

Rafi Amit: Thanks, Kenny. Hello, everyone. I will open with review of the quarterly financial results. Q1 revenue reached $121.7 million, slightly ahead of our guidance. The gross margin was 51% and operating income totaled $31 million. Approximately 50% of revenue was driven by AI-related products, while an additional 20% came from other advanced packaging applications. The remaining revenue was generated across a broad range of applications with a mix similar to previous quarter. We are excited to report that we have experienced an unprecedented start to the year in terms of incoming orders. This exceptional demand has significantly strengthened our confidence in the outlook of the remainder of 2026 and provides a strong foundation as we look ahead of 2027.

Speaker #4: The gross margin was 51% and operating income totaled $31 million. Approximately 50% of revenue was driven by AI-related products. While an additional 20% came from other advanced packaging applications.

Speaker #4: The remaining revenue was generated across aboard a range of applications. With a mix similar to previous quarter. We are excited to report that we have experienced an unprecedented start to the year in terms of incoming orders.

Speaker #4: This exceptional demand has significantly strengthened our confidence in the outlook of the remainder of 2026 and provides a strong foundation as we look ahead of 2027.

Speaker #4: To provide additional color we have already received order and forecast from two HBM manufacturers for our 3D metrology and 2D inspection steps. Representing expected revenue exceeding the amount of $260 million.

Rafi Amit: To provide additional color, we have already received order and forecast from two HBM manufacturers for our 3D metrology and 2D inspection steps, representing expected revenue exceeding the amount of $260 million for 2026 and 2027. On top of this opportunity, we continue to see significant incremental business from these two customers, as well as from other HPC player later this year and into 2027, further reinforcing our growth outlook. We see a compelling opportunity in the OSAT domain, which is currently undergoing a significant wave of investment in advanced packaging, particularly for AI-related capacity expansion. As the leading provider in this domain for both 2D inspection and 3D metrology, we expect to be major beneficiary of this trend. Based on our backlog and pipeline, our revenue guidance for Q2 is between $129 million to $131 million.

Speaker #4: For 2026 and 2027. On top of this opportunity, we continue to see significant incremental business from these two customers as well as from other HPC players.

Speaker #4: Later this year, and into 2027. Further reinforcing our gross outlook. We see a compelling opportunity in the OSAT domain. Which is currently undergoing a significant wave of investment in advanced packaging.

Speaker #4: Particularly for AI-related capacity expansion. As the leading provider in this domain, for both 2D inspection and 3D metrology, we expect to be major beneficiaries of this trend.

Speaker #4: Based on our backlog and pipeline, our revenue guidance for the second quarter is between $129 million to $131 million. In accordance with our new incoming business, I mentioned earlier, we can already say that we expect a surge in revenue in the second half of 2026.

Rafi Amit: In accordance with our new incoming business I mentioned earlier, we can already say that we expect a surge in revenue in H2 2026, with over 25% higher revenues compared with the H1, with a potential to see additional upside based on timing of orders and deliveries between Q4 2026 and early 2027. Our goal has been, and we have been highly successful in achieving it, to maintain our leadership in market share in 3D bump metrology, while continuing to gain additional share in this 2D inspection market. Our recent order wins clearly demonstrate the success of this objective, and we are extremely proud of this achievement. Last year, we introduced two new systems, Eagle G5 and Hawk. Built on state-of-the-art technologies, these products are designed to support the industry's evolving roadmap in both inspection and metrology.

Speaker #4: With over $25% higher revenues compared with the first half. With a potential to see additional upside. Based on timing of orders and deliveries between Q4 2026 and early 2027.

Speaker #4: Our goal has been and we have been highly successful in achieving it to maintain our leadership in market share in 3D metrology while continuing to gain additional share in this 2D inspection market.

Speaker #4: Our recent order wins clearly demonstrate the success of this objective and we are extremely proud of this achievement. Last year, we introduced two new systems, Eagle 5G and OC.

Speaker #4: Building on state-of-the-art technologies, this product is designed to support the industry's evolving roadmap in both inspection and metrology. As the industry faces increasing complexity and tighter performance requirements—including sub-6 micron bump height metrology and inspection capability down to 100 nanometers—along with growing demand for higher throughput, Camtek has continued to invest heavily in platform innovation, advanced AI-based algorithms, and software capabilities.

Rafi Amit: As the industry faces increasing complexity, tighter performance requirement, including sub-6 micron bump height metrology and inspection capability down to 100 nanometer, along with growing demand for higher throughput, Camtek has continued to invest heavily in platform innovation, advanced AI-based algorithm, and software capabilities. Market adoption of these two products has been exceptionally strong. Together, they account for 30% of our revenue last year, and we expect revenue from this platform to double in 2026. Leveraging our dedicated AI expert team and strategic collaboration with Visual Layer, we have developed cutting-edge capabilities in detection, metrology, and classification. These two new capabilities are already delivering breakthrough performance, including significantly higher throughput, improved detection sensitivity, reduced false alarm, and enhanced measurement accuracy, further strengthening our competitive edge. We have demonstrated these capabilities to strategic customers and received very enthusiastic feedback.

Speaker #4: Market adoption of these two products has been exponentially strong together they account for 30% of our revenue last year. And we expect revenue from this platform to double in 2026.

Speaker #4: Leveraging our dedicated AI expert team, a strategic collaboration with Visual AI, we have developed cutting-edge capabilities in detection, metrology, and classification. These two new capabilities are already delivering breakthrough performance including significantly higher throughput, improved detection, sensitivity, reduced force alarm, and enhanced measurement accuracy.

Speaker #4: Further strengthening our competitive edge. We have demonstrated these capabilities to strategic customers and received very enthusiastic feedback. The innovation we have developed are expected to enable us to expand our 2D market share win additional process step across the manufacturing flow.

Rafi Amit: The innovation we have developed are expected to enable us to expand our 2D market share, win additional process steps across the manufacturing flow, including the front end. This is expected to significantly increase our total addressable market to over $2 billion in 2027. Over the coming months, we plan to complete integrating all these new AI feature into our system. A few weeks ago, we announced the acquisition of Visual Layer. I am now happy to report that couple of weeks ago, we have managed to close this transaction and have already started to fully integrate their technology and capabilities into Camtek product. I would like to provide additional color on the rationale behind this acquisition. Over the past year, we collaborated with Visual Layer on an AI-focused project and integrated its technology into our products.

Speaker #4: Including the front end. This is expected to significantly increase our total addressable market to over $2 billion in 2027. Over the coming months, we plan to complete integrating all these new AI features into our system.

Speaker #4: A few weeks ago, we announced the acquisition of Visual AI. I am now happy to report that a couple of weeks ago, we have managed to close this transaction and have already started to fully integrate their technology and capabilities into Camtek products.

Speaker #4: I would like to provide additional color on the rationale behind this acquisition. Over the past year, we collaborated with Visual AI on an AI-focused project and integrated its technology into our products.

Speaker #4: The success of this partnership led us to acquire the company enabling the full integration of its technology. AI research capabilities and engineering team into Camtek groundbreaking AI initiatives.

Rafi Amit: The success of this partnership led us to acquire the company, enabling the full integration of its technology, AI research capabilities, and engineering team into Camtek groundbreaking AI initiatives. Through Visual Layer, we plan to further expand our offering by developing a dedicated AI-based software product line. To sum up my script, we enter 2026 with record order intake, significantly strengthening our confidence in strong outlook for both 2026 and 2027. Demand remained robust across AI, HBM, and advanced packaging, while our continued investment in AI-based inspection and metrology is further reinforcing our technology leadership, expanding our market opportunity, and positioning us as sustained growth. Now Moshe will review the financial side. Moshe?

Speaker #4: Through Visual AI, we plan to further expand our offering by developing a dedicated AI-based software product line. To summarize, my script might enter in 2026 with we enter 2026 with record order intake significantly strengthening our confidence in strong outlook for both 2026 and 2027.

Speaker #4: Demand remains robust across AI HBM and advanced packaging while our continued investment in AI-based inspection and metrology is further reinforcing our technology leadership expanding our market opportunity and positioning us as sustained growth.

Speaker #4: And now, Moshe will review the financial result. Moshe, thanks Rafi. In my financial summary ahead, I will provide the results on an ongoing basis.

Moshe Eisenberg: Thanks, Rafi. In my financial summary ahead, I will provide the results on a non-GAAP basis. The reconciliation between the GAAP results and the non-GAAP results appears in the table at the end of the press release issued earlier today. Q1 revenues came in at $121.7 million, slightly above Q1 2025. Gross profit for the quarter was $62 million. The gross margin for the quarter was 51%, similar to the previous quarter. I expect the gross margin to improve in H2 of the year, in line with our strong revenue forecast and the contribution of the Hawk and the Eagle G5, which are expected to double in revenues versus last year.

Speaker #4: The reconciliation between the gap results and the non-gap results appears in the table at the end of the press release issued earlier today. First quarter revenues came in at $121.7 million, slightly above the first quarter of 2025.

Speaker #4: Gross profit for the quarter was $62 million. The gross margin for the quarter was 51%. Similar to the previous quarter, I expect the gross margin to improve in the second half of the year in line with our strong revenue forecast and the contribution of the hawk and the Gen 5, which are expected to double in revenues versus last year.

Speaker #4: Operating expenses in the quarter were $30.9 million, compared to $24.4 million in the first quarter of last year, and $28.7 million in the previous quarter.

Moshe Eisenberg: Operating expenses in the quarter were $30.9 million compared to $24.4 million in Q1 of last year and $28.7 million in the previous quarter. Operating profit in the quarter was $31.1 million compared to the $37.3 million reported in Q1 of last year and $36.7 million in Q4. Operating expenses have been increasing mainly in the R&D and sales and marketing areas to support the expected strong growth in business volume. Operating expenses went up due to the weaker US dollar against the shekel. As a result, operating margin was 25.5% compared to 31.5% and 28.6% respectively. We expect operating margin to return to around 30% level in H2.

Speaker #4: Operating profit in the quarter was $31.1 million, compared to the $37.3 million reported in the first quarter of last year, and $36.7 million in the fourth quarter.

Speaker #4: Operating expenses have been increasing mainly in the R&D and certain marketing areas, to support the expected strong growth in business volume. In addition, operating expenses went up due to the weaker US dollar against the shekel.

Speaker #4: As a result, operating margin was 25.5%, compared to 31.5% and 28.6%, respectively. We expect operating margin to return to around the 30% level in the second half of the year.

Speaker #4: Financial income for the quarter was $8.1 million, compared to $5.4 million reported last year, and $8.2 million in the previous quarter. Net income for the first quarter of 2026 was $35.3 million, or $0.70 per diluted share.

Moshe Eisenberg: Financial income for the quarter was $8.1 million, compared to $5.4 million reported last year and $8.2 million in the previous quarter. Net income for Q1 of 2026 was $35.3 million or $0.70 per diluted share. This is compared to a net income of $38.7 million or $0.79 per share in Q1 of last year. Total diluted number of shares as of the end of Q1 was 51.4 million. Turning to some high-level balance sheet and cash flow metrics. Cash and cash equivalents, including short and long-term deposits and marketable securities, as of 31 March 2026, were $850 million at a similar level as of year-end.

Speaker #4: This is compared to a net income of $38.7 million or $0.79 per share in the first quarter of last year. Total diluted number of shares as of the end of the Q1 was 51.4 million.

Speaker #4: Turning to some high-level balance sheet and cash flow metrics. Cash and cash equivalents, including short and long-term deposits and marketable securities, as of March 31st, 2026, were $850 million, at a similar level as of year-end.

Speaker #4: With respect to inventory, in the first in the last few months, we have been working to optimize the level of inventory to the point that it is now at 116.7 million dollars.

Moshe Eisenberg: With respect to inventory, in the last few months, we have been working to optimize the level of inventory to the point that it is now at $116.7 million. As we are heading into a strong growth period, we expect to see an increase from this level in the coming quarters. Due to timing of collections, accounts receivables went up to $131.7 million compared with $90.8 million in the previous quarter, which resulted in a lower cash generation this quarter. As Rafi said before, we expect revenues of $129 to 131 million in Q2. With that, Rafi, Ramy, and I will be open to take your questions. Kenny?

Speaker #4: As we are heading into a strong growth period, we expect to see an increase from this level in the coming quarters. Due to timing of collections, account receivables went up to $131.7 million, compared with $90.8 million in the previous quarter, which resulted in a lower cash generation this quarter.

Speaker #4: As Rafi said before, we expect revenues of $129 to $131 million in the second quarter. And with that, Rafi, Rami, and I will be open to take your questions.

Speaker #4: Kenny, at this time, we'll begin the analyst question and answer session. If you have a question, please raise your hand via the Zoom platform.

Kenny Green: At this time, we'll begin the analyst question and answer session. If you have a question, please raise your hand via the Zoom platform. I will introduce you and ask you to unmute, after which you may ask your question. Okay, Paul for questions. Our first question will be from Charles Shi of Needham. Charles, please go ahead.

Speaker #4: I will introduce you and ask you to unmute. After which, you may ask your question. Okay. So poll for questions. Our first question will be from Charles Xi of Needham.

Speaker #4: Charles, please go ahead. Hi. Thanks for taking my questions. Maybe the first one. I want to ask you about the visual layer acquisition. And when it comes to AI algorithms, there's obviously a decision between either make by yourself or buy it from somebody else.

Charles Shi: All right. Thanks for taking my questions. Maybe the first one, I want to ask you about the Visual Layer acquisition and when it comes to AI algorithm, there's obviously a decision between either make by yourself or buy it from somebody else. The question is this, why the Camtek team decided to buy Visual Layer, and why making this very specific acquisition now? I'm more asking about the timing of this, and I think you provided some color in the prepared remarks. I did hear that. What unique capability does Visual Layer provide that previously Camtek in-house capability did not have? I want to ask you about this first. Thank you.

Speaker #4: So the question is this: why the Camtek team decided to buy Visual AI and why making this very specific acquisition now? I'm more asking about the timing of this and I think you provided some color in the prepared remarks.

Speaker #4: I did hear that, but what unique capability does Visual AI provide that previously Camtek in-house capability did not have? I want to ask you about this first.

Speaker #4: Thank you. So thank you for the question, Charles. So Visual AI has been working with us, as Rafi noted, in the prepared notes. And for over a year, we've been working with them.

Ramy Langer: Thank you for the question there, Charles. Visual Layer have been working with us, as Rafi noted in the prepared notes. For over a year we've been working with them. We know them actually longer. They developed a very unique technology for annotation and acquisition and classification. We started to work with them. We realized the technology is excellent, and we started to implement it in our products. In parallel, it's not only by on the AI, we have a very large team here at Camtek that is working on the development of all the algorithm. This is a know-how that we've been developing for the past few years. Really what you are seeing here is a combination of Visual Layer technology, plus the capabilities that we have in hands, in-house.

Speaker #4: We know them actually longer. And they developed a very unique technology for annotation and acquisition and classification. And we started to work with them; we realized the technology is excellent and we started to implement it in our products.

Speaker #4: In parallel, it's not only buy on the AI; we have a very large team here at Camtek that is working on the development of all the algorithms.

Speaker #4: So this is a know-how that we've been developing for the past few years. So really, what you are seeing here is a combination of Visual AI technology plus the capabilities that we have in hand in-house together; I think this is a very good combination.

Ramy Langer: Together, I think this is a very good combination. We have their guys, their researchers that are beefing up our current team, so it's a win-win. It's technology, it's more researchers, more capabilities, and the total ownership of their technology. This is the reason for the acquisition, and I think moving forward, it will give us a lot of capabilities, so we can really implement very fast our AI technology that we believe has a lot of advantages compared with our competitors.

Speaker #4: We have their guys, their researchers that are beefing up our current team. So it's a win-win. It's technology, it's more researchers, more capabilities, and the total ownership of their technology.

Speaker #4: This is the reason for the acquisition. And I think the moving forward, it will give us a lot of capabilities so we can really implement very fast our AI technology that we believe has a lot of advantages compared with our competitors.

Speaker #4: I think you mentioned about maybe offering AI-based software to customers. I want to get some thoughts: what that means? Do you plan to offer software as a standalone product, or it has to be attached to the Camtek inspection metrology hardware?

Charles Shi: I think you mentioned about maybe offering AI-based software to customers. Want to get some thoughts, what that means. Do you plan to offer software as a standalone product, or it has to be attached to the Camtek inspection metrology hardware? Either way, when do you think software can start generate some revenue stream that becomes reportable? Thank you.

Speaker #4: Either way, when do you think software can start to generate some revenue stream that becomes reportable? Thank you. Okay. So first of all, I think what we mentioned that can be very clear.

Ramy Langer: Okay. First of all, I think what we mentioned and that will be very clear. We are going to introduce in the very next few months, we are going to introduce to our customers our AI capabilities in inspection and metrology. As Rafi mentioned earlier, the capabilities of this technology is breakthrough, both in terms of throughput, in terms of accuracies, in terms of our ability to detect very small defects, and achieve high level of measurements on our metrology side. These capabilities will be implemented in the very near future. Our key customers have already been approached with, and we have shown them the capabilities, and we received enthusiastic feedback from them. When shall we see this? It's too early to talk when we should see it as products and revenues.

Speaker #4: We are going to introduce in the very next few months, we are going to introduce to our customers our AI capabilities in inspection and metrology.

Speaker #4: And as Rafi mentioned earlier, the capabilities of this technology is breakthrough. Both in terms of throughput, in terms of accuracy, in terms of our ability to detect very small defects, and achieve high-level measurements on our metrology side.

Speaker #4: These capabilities will be implemented in the very near future. Our key customers have already been approached with, and we have shown them the capabilities, and we received enthusiastic feedback from them.

Speaker #4: When shall we see this? It's too early to talk when we should see it as products and revenues. I do believe that we will see the contribution of revenues from these capabilities in the second half of this year.

Ramy Langer: I do believe that we will see the contribution of revenues from these capabilities in H2 of this year.

Charles Shi: Rafi-

Speaker #4: So I'm sorry, I would like to add a few sentences about it. As we mentioned in the script, in the notes, there are two stages.

Rafi Amit: I'm sorry, I would like to add a few sentences about it.

Ramy Langer: For sure.

Rafi Amit: As we mentioned in the script, in the notes, there are two stages. Number 1, there are a lot of potential to add software package to customer that already use Camtek install base. There are thousands of system install base. Many of them, we can give them a software package, including the AI capability, and it improve their performance. This is what we can sell only software package to this customer. This is 1 income or additional income for software. On top of that, on top of or beside the Camtek software, this team, Visual Layer, have the experience for the industry. Giving some solution for the semiconductor industry, this will be the second phase. After, first of all, we complete the package for all the customer that use Camtek system.

Speaker #4: Number one, there are a lot of potential to add software packages to customers that already use Camtek install-based. There are thousands of systems install-based, many of them we can give them a software package including the AI capability and it improves their performance.

Speaker #4: So this is what we can sell only software packages to these customers. This is one income or additional income for software. On top of that, on top of or beside the Camtek software, this team Visual AI has the experience for the industry.

Speaker #4: So giving some solutions for the semiconductor industry. This will be the second phase. After first of all, we complete the package for all the customers that use Camtek system.

Speaker #4: Thanks for the color. Maybe a last question from me. Any updated thoughts on the China revenue growth this year? Previously, I believe you talked about it will be very strong in revenue dollars, but probably not going to repeat last year's very, very strong double-digit year-on-year growth this year.

Charles Shi: Thanks for the color. Maybe a last question from me. Any updated thoughts on the China revenue growth this year? Previously, I believe you talked about it will be very strong in revenue dollars, but probably not gonna repeat last year's very, very strong double-digit year-on-year growth this year. The growth for the overall business this year seems to be more driven by the non-China market. Can you provide any updated thoughts there? Thank you.

Speaker #4: And the growth for the overall business this year seems to be more driven by the non-China market. Can you provide any updated thoughts there?

Speaker #4: Thank you. So Charles, in general, I agree with your comment. China continues to be in a positive trend, and our business from there is healthy.

Ramy Langer: Charles, in general, I agree with your comment. China continues to be in a positive trend, and our business from there is healthy. As you mentioned, the overall, the major contribution will come out of China, and this is the situation. I think your comment is correct.

Speaker #4: But as you mentioned, the overall, the major contribution will come out of China and this is the situation. So I think your comment is correct.

Speaker #4: Thank you. Thanks. Thanks, Charles. Our next question is going to be from Brian Chen of Stifel. Brian, you may go ahead and ask your question.

Vivek Arya: Thank you.

Charles Shi: Thank you.

Kenny Green: Thanks. Thanks, Charles. Our next question is gonna be from Brian Chin of Stifel. Brian, you may go ahead and ask your questions.

Speaker #4: Hi there. Good afternoon. Thanks for letting us ask a few questions. Maybe firstly, on lead times with the amount of growth that you're seeing in the business and order pickup, where are they roughly for Eagle and for Hawk, respectively, and I guess relative to that 25% half-on-half growth?

Brian Chin: Hi there. Good afternoon. Thanks for letting us ask a few questions maybe. Firstly, on lead times, with the amount of growth that you're seeing in the business and order pickup, where are they roughly for Eagle and for Hawk respectively? I guess relative to that 25% half on half growth, and I think that would equate to something like 10% to 15% quarterly sequentials, do you have a lot of flexibility to drive incremental growth in the current year or does some of that demand maybe have to shift into next year?

Speaker #4: And I think that would equate to something like 10 to 15 percent quarterly sequentials. Do you have a lot of flexibility to drive incremental growth in the current year or does some of that demand maybe have to shift into next year?

Speaker #4: So thank you for the question. All in all, Brian, we have all the capabilities. And as we mentioned in the prepared notes, we have enough inventory and we are ramping the inventory in such a way that we will be able to respond to any number that comes.

Ramy Langer: Thank you for the question. All in all, Brian, we have all the capabilities, and as we mentioned in the prepared notes, we have enough inventory, and we are ramping the inventory in such a way that we will be able to respond to any number that comes. We talked about the forecast, about the very important order of $260 million for 2026 and 2027, order and forecast. Definitely, this from supply chain capabilities, we have no issues. We feel very comfortable with our capabilities. From lead times point of view, the Eagle, usually the lead times are around 3 months, and we've been doing it for quite a few years, and the system is built in such a way that we will be able to respond even if we get additional requirements from our customers.

Speaker #4: We talked about the forecast, about the very important order of 260 million for 2026 and 2027, order and forecast. But definitely, from supply chain capabilities, we have no issues.

Speaker #4: We feel very comfortable without capabilities. From lead times point of view, the Eagle usually the lead times are around three months. And we've been doing it for quite a few years.

Speaker #4: And the system is built in such a way that we will be able to respond even if we get additional requirements from our customers.

Speaker #4: On the Hawk, our lead times are anywhere between three to six months. That's close enough. And again, there, we have enough flexibility to respond to any additional orders if they will come.

Ramy Langer: On the Hawk, our lead times are anywhere between 3 to 6 months. That's close enough. Again, there we have enough flexibility to respond to any additional orders if they will come.

Speaker #4: Great. Appreciate that color, Rami. Thank you. And of the 2 billion SAM that you discussed for 2027, for reference, what do you think your SAM was or will be this year?

Brian Chin: Great. I appreciate that, Rafi Amit.

Ramy Langer: Thank you.

Brian Chin: Of the 2 billion SAM that you discussed for 2027, for reference, what do you think your SAM was or will be this year? Can you maybe outline a few of the major new areas, applications, or adjacencies you plan to address in 2027?

Speaker #4: And can you maybe outline a few of the major new areas, applications, or adjacencies you plan to address in 2027? So first of all, we said above 2 billion.

Ramy Langer: First of all, we said above $2 billion, and we think that the additional market available to us will be additional half a billion. If we're today anywhere between around above $1.5 billion, $1.7 billion, we will go by about additional half a billion. I think the main applications that we are seeing are primarily in inspection. You know, today our inspection business is to about two-thirds of our overall business. No doubt, it's a market that we can still expand, and we have targeted number of applications starting from the back end line of the front end, compound semiconductors, CMOS image sensors, RF. There are quite a few applications where we can expand in our current business.

Speaker #4: And we think that the additional market available to us will be additional half a billion. So if we're today anywhere between above 1.5, 1.7 billion, we will go by about additional half a billion.

Speaker #4: I think the main applications that we are seeing are primarily in inspection. Today, our inspection business is about two-thirds of our overall business.

Speaker #4: And no doubt it's a market that we can still expand. And we have a target and number of applications. Starting from the back end line of the front end, compound semiconductors, CMOS image sensors, RF, so there are quite a few applications where we can expand at our current business.

Ramy Langer: We've been doing it for a while, and we're very confident that in the next year, with the capabilities that we'll be introducing with our AI technology, definitely we have an opportunity to leapfrog our capabilities in inspection, and that's the area that I believe we can grow our business.

Speaker #4: We've been doing it for a while. And we're very confident that in the next year, with the capabilities that will be introducing, with our AI technology, definitely we have an opportunity to leapfrog our capabilities in inspection and that's the area that I believe we can grow our business.

Brian Chin: Great. Thank you.

Speaker #4: Great. Thank you. Thanks, Brian. Our next question will be from Michael Manny of Bank of America. Michael, please go ahead. Hi. Thanks so much for taking the question.

Kenny Green: Thanks, Brian. Our next question will be from Vivek Arya of Bank of America. Vivek, please go ahead.

Vivek Arya: Hi. Thanks so much for taking the question. I was hoping you could talk more about the incremental 25% half on half growth you're seeing in H2. You know, relative to 90 days ago or so, where is that strength really coming from, you know, versus the HBM side, chiplet side, or even on a product basis between Eagle or Hawk? Like how is that kind of visibility and order strength change? Thank you.

Michael Mani: Hi. Thanks so much for taking the question. I was hoping you could talk more about the incremental 25% half on half growth you're seeing in H2. You know, relative to 90 days ago or so, where is that strength really coming from, you know, versus the HBM side, chiplet side, or even on a product basis between Eagle or Hawk? Like how is that kind of visibility and order strength change? Thank you.

Speaker #4: I was hoping you could talk more about the incremental 25% half-on-half growth you're seeing in the second half, relative to 90 days ago or so.

Speaker #4: Where is that strength really coming from versus the HBM side, chiplet side? Or even on a product basis between Eagle and Hawk, how is that kind of visibility and order strength change?

Speaker #4: Thank you. So thank you, Michael. Let me explain how I see the market. And in our experience, the segment of the advanced packaging our segment tend to lack behind the front end by, I would say, one or two quarters.

Ramy Langer: Thank you, Vivek. Let me explain how I see the market. You know, in our experience, the segment of the advanced packaging, our segment, tend to lag behind the front end by, I would say, 1 or 2 quarters. This you see to our experience, both at the beginning of the cycle, at the end of the cycle. I think what we're seeing today, we're seeing our market in general. Of course, the AI is the engine, is the fuel, what's fueling the entire industry and our business as well. This, if we were hesitant quarter ago and a couple of quarters ago, exactly how 2026 is going to look like, we're seeing and we talked about the order flow that is unprecedented to this time.

Speaker #4: This you see to our experience, both at the beginning of the cycle and the end of the cycle. And I think what we're seeing today, we're seeing our market in general, of course, the AI is the engine, is the fueling the entire industry.

Speaker #4: And our business as well. So this if we were hesitant quarter ago and a couple of quarters ago, exactly how 2026 is going to look like, we're seeing and we talked about the order flow that is unprecedented to this time.

Speaker #4: And we definitely see the surge in the business in the second half and 2027 beyond. So yes, of course, the AI is in the middle of it.

Ramy Langer: We definitely see the surge in the business in H2 and 2027 beyond. Yes, of course, the AI is in the middle of it, but we see our other businesses, our applications growing in parallel. It's a lot of 1s and 2s, it's the OSAT business, and it's across all the applications that we're seeing. All in all, the market is starting to ramp. We're seeing it very clearly. We're seeing it in the different regions as well. It's not just for one specific region. All in all, it's we are in a positive note. We are very excited about the growth that we will see in H2. Actually, we'll start to see it already in Q2, and we expect that this growth will continue into 2027.

Speaker #4: But we see our other businesses, our applications, growing in parallel. It's a lot of ones and twos. It's the OSAT business, and it's across all the applications that we're seeing.

Speaker #4: So all in all, the market is starting to ramp. We're seeing it very clearly. We're seeing it in the different regions as well. It's not just for one specific region.

Speaker #4: So, all in all, we are on a positive note. We are very excited about the growth that we will see in the second half.

Speaker #4: Actually, we'll start to see it already in the second quarter. And we expect that this growth will continue into 2027. Very clear. Thank you.

Vivek Arya: Very clear. Thank you. For my follow-up, I just wanted to ask about the chiplet business. You know, your US chiplet IDM customer seems to be on a better footing right now. In particular, they're talking up strength in their advanced packaging franchise, with, you know, potentially billions of sales in the pipeline, I think they mentioned. I know, you know, it's, you know, it was even just like a year or a year and a half ago, you know, revenue from that particular customer was next to, you know, zero. What is your visibility for that particular account look like over the next two years?

Michael Mani: Very clear. Thank you. For my follow-up, I just wanted to ask about the chiplet business. You know, your US chiplet IDM customer seems to be on a better footing right now. In particular, they're talking up strength in their advanced packaging franchise, with, you know, potentially billions of sales in the pipeline, I think they mentioned. I know, you know, it's, you know, it was even just like a year or a year and a half ago, you know, revenue from that particular customer was next to, you know, zero. What is your visibility for that particular account look like over the next two years?

Speaker #4: And for my follow-up, I just wanted to ask about the chiplet business. So, your U.S. chiplet IDM customer seems to be on a better footing right now.

Speaker #4: And in particular, they're talking up strength in their advanced packaging franchise. With potentially billions of sales in the pipeline, I think they mentioned. I know as even just like a year or a year and a half ago, revenue from that particular customer was next to zero.

Speaker #4: But what does your visibility for that particular account look like over the next two years? And is your share position—which I know for your chiplet business today is mainly your other customer in Taiwan—but is your share position there meaningfully different?

Vivek Arya: Is your share position, which I know your chiplet business today is mainly your other customer in Taiwan, but is your share position there meaningfully different? If I could squeeze like one quick random unrelated question. Are you seeing any strengths from the photonics and optics trend we're seeing, right? I think there's some incremental hybrid bonding applications too. Some of your peers have talked about an incremental inspection strength there. If you could address that too, that'd be great. Thank you.

Michael Mani: Is your share position, which I know your chiplet business today is mainly your other customer in Taiwan, but is your share position there meaningfully different? If I could squeeze like one quick random unrelated question. Are you seeing any strengths from the photonics and optics trend we're seeing, right? I think there's some incremental hybrid bonding applications too. Some of your peers have talked about an incremental inspection strength there. If you could address that too, that'd be great. Thank you.

Speaker #4: And if I could squeeze in one quick, random, unrelated question—are you seeing any strengths from the photonics and optics trend we're seeing? Because I think there's some incremental hybrid bonding applications too; some of your peers have talked about incremental inspection strength there.

Speaker #4: So if you could address that too, that’d be great. Thank you. Okay. So definitely, our position and the customers that you’re referring to—I assume that I understand where you are talking about.

Ramy Langer: Definitely our position and the customers that you're referring, and I assume that I understand who you are talking about. Definitely there our share is meaningful. I think that definitely we will start to see business towards the latter part of this year and into 2027. We have a very good and close relationship there. I think that our position there is strong. I don't want to compare between, you know, different players. We have a strong position in both customers. Regarding the photonics, definitely we are involved there. There are opportunities in the photonics area. I think the magnitude of the business is smaller compared with the larger applications.

Speaker #4: So definitely, there, our share is meaningful. And I think that definitely, we will start to see business towards the latter part of this year and into 2027.

Speaker #4: We have a very good and close relationship there. So I think that our position there is strong. And I don't want to compare between different players.

Speaker #4: We have a strong position in both customers. Regarding the photonics, definitely, we are involved there. There are opportunities in the photonics area. I think the magnitude of the business is smaller compared with the larger applications.

Speaker #4: If you refer to HBM chiplets, it's not in the size of this business, but definitely, we are getting applications. And I think this will be a business.

Ramy Langer: If you refer to HBM chiplets, it's not in the size of this business, but definitely we are getting applications, and I think this will be a business. The magnitude, it's still early to talk about.

Speaker #4: The magnitude is still early to talk about. Great. Thank you so much. Thanks a lot. Our next question is going to be from Shane Brett of Morgan Stanley.

Vivek Arya: Great. Thank you so much.

Michael Mani: Great. Thank you so much.

Kenny Green: Thanks a lot. Our next question is gonna be from Joseph Moore of Morgan Stanley. Shane, please go ahead.

Speaker #4: Shane, please go ahead. Thank you for letting me ask a question. My first question is on China. So regarding your China business, just how should I think about the competitive environment and your ability to continue winning there?

Joseph Moore: Thank you for letting me ask a question. My first question is on China. Regarding your China business, just how should I think about the competitive environment and your ability to continue winning there? It'd just be great to receive some color on how you see domestic and international competition there play out. Thank you.

Shane Brett: Thank you for letting me ask a question. My first question is on China. Regarding your China business, just how should I think about the competitive environment and your ability to continue winning there? It'd just be great to receive some color on how you see domestic and international competition there play out. Thank you.

Speaker #4: It would just be great to receive some color on how you see domestic and international competition there play out. Thank you. So I think in general, there is obviously the international competition, it exists there.

Ramy Langer: I think in general, there is obviously the international competition that exists there, definitely some of the players, some of the bigger players. We've seen parallelly, and I think it's across all the different, I would say, equipment manufacturers. We are seeing local players, and there are many local players that are trying to compete with us. I think in general, the disadvantage of the local players, that there are many of them, and each of them are smaller. That I would say there is only one meaningful player that really competes with us in China. I assume that we will be pressured at the lower-end applications.

Speaker #4: Definitely, it's some of the players, some of the bigger players. We see in parallel and I think it's across all the different I would say equipment manufacturers, we are seeing local players.

Speaker #4: And there are many local players. They are trying to compete with us. I think in general, the disadvantage of the local players that there are many of them and each of them are smaller.

Speaker #4: I would say there is only one meaningful player that really competes with us in China. I assume that we will be pressured at the lower end applications.

Speaker #4: But all in all, because we have been very successful from the beginning of the semiconductor industry growth in China, we have a very large installed base.

Ramy Langer: All in all, because we have been very successful from the beginning of the semiconductor industry growth in China, we have a very large installed base that really enable us to continue and expand the business there. I think, there is a lot of offsets build up in China. That's where we excel. That's our market. They look at other places. They see that we're very dominant in this market, and definitely they would give us an opportunity. Yes, there is pressure, and I would say the main pressure is coming from the local players. However, there is also pressure from foreign players. I think all in all, we have a very strong position, and I expect that we will see a positive trend in the foreseeable future in China.

Speaker #4: That really enable us to continue and expand the business there. So I think and there is a lot of OSATs build up in China.

Speaker #4: That's where we excel. That's our market. They look at other places. They see that we are very dominant in this market. And definitely, they would give us an opportunity.

Speaker #4: So yes, there is pressure. And I would say the main pressure is coming from the local players. However, there is also pressure from foreign players.

Speaker #4: But I think, all in all, we have a very strong position. And I expect that we will see a positive trend in the foreseeable future in China.

Speaker #4: Got it. Thank you. And for my follow-up, so your process control peers, as well as the more front-end edge depth companies, all seem to be seeing advanced packaging growth of 50% or higher this year.

Joseph Moore: Got it. Thank you. For my follow-up. Your process control peers, as well as the more front-end edge step companies, all seem to be seeing advanced packaging growth of 50% or higher this year. I understand there can be differences in definition of advanced packaging, but if we just take your H2 guidance, it does imply your HPC revenue should grow closer to 20% year over year. You guys did outperform in 2025, and throughout this call, the sense that I'm getting is you see a lot of strength into 2027. Just can you help me understand this discrepancy in the 2026 growth profiles between what you're seeing and maybe what the broader semi-cap peer set is seeing? Thank you.

Shane Brett: Got it. Thank you. For my follow-up. Your process control peers, as well as the more front-end edge step companies, all seem to be seeing advanced packaging growth of 50% or higher this year. I understand there can be differences in definition of advanced packaging, but if we just take your H2 guidance, it does imply your HPC revenue should grow closer to 20% year over year. You guys did outperform in 2025, and throughout this call, the sense that I'm getting is you see a lot of strength into 2027. Just can you help me understand this discrepancy in the 2026 growth profiles between what you're seeing and maybe what the broader semi-cap peer set is seeing? Thank you.

Speaker #4: I understand there can be differences in definition of advanced packaging. But if we just take your second half guidance, it does imply your HPC revenue should grow closer to 20% year over year.

Speaker #4: You guys did outperform in 2025. And throughout this call, the sense that I'm getting is you see a lot of strength into 2027. But just, can you help me understand this discrepancy in the 2026 growth profiles between what you're seeing and maybe what the broader SPE peer set is seeing?

Speaker #4: Thank you. So thank you, Shane, for this question. So if the question suggests that we are losing market share, the answer is absolutely no.

Ramy Langer: Thank you, Joseph Moore, for this question. If the question suggests that we are losing market share, the answer is absolutely no. Our 2026 growth is, first of all, like you said, is measured against record revenues in 2025, which may not be true for other competitors. First of all, we're not comparing exactly the same thing. As noted in our prepared remarks, we plan to increase our market share both in 2D inspection and 3D in the advanced packaging area. I think here we're not comparing the right numbers, you know, with the right numbers. We talked about some of the lag in the business.

Speaker #4: Our 2026 growth is, first of all, like you said, measured against record revenues in 2025, which may not be true for other competitors.

Speaker #4: So, first of all, we're not comparing exactly the same thing. And, as noted in our prepared remarks, we plan to increase our market share both in 2D inspection and 3D in the advanced packaging area.

Speaker #4: So I think here we are not comparing the right numbers with the right numbers. But so and we talked about some of the lag in the business.

Speaker #4: But if we look at the shift of the business and you take the business, we will see in the second half. And what we estimate into the second half of 2027, the first half, thank you, Moshe, for the first half of 2027, definitely, the growth will be very, very significant closer to the numbers that you just mentioned.

Ramy Langer: If we look at the shift of the business, and you take the business we will see in H2, and what we estimate into H2 of 2027. The H1. Thank you, Moshe. For H1 of 2027, definitely the growth will be very significant, closer to the numbers that you just mentioned. I think this is the right way to compare us with our competitors.

Speaker #4: So I think this is the right way to compare us with our competitors. Great. Thank you very much. Thanks. Thanks, Shane. Our next question will be from Edward Yang of Oppenheimer.

Joseph Moore: Great. Thank you very much.

Shane Brett: Great. Thank you very much.

Kenny Green: Thanks. Thanks, Joseph. Our next question will be from Edward Yang of Oppenheimer. Edward, please go ahead.

Speaker #4: Edward, please go ahead. Okay. Thank you for the time. Hope you and your families are well. I guess first question would just be, on the difficult situation in the Middle East, how are you managing through that?

Edward Yang: Hey, thank you for the time. Hope you and your families are well. I guess first question would just be on the difficult situation in the Middle East. You know, how are you managing through that? Have you seen any impact so far? Just a reminder of your manufacturing footprint. I believe most of it is in Northern Israel, but Germany is about 10% and expanding. If you could expand on those issues would be great.

Speaker #4: Have you seen any impact so far? And just a reminder of your manufacturing footprint—I believe most of it is in Northern Israel, but Germany is about 10% and expanding.

Speaker #4: So if you could expand on those issues, it would be great. All right. Thank you, Edward. So first of all, and I think we said it in previous calls and we've discussed it with investors and analysts all the time, our facility is working as usual.

Ramy Langer: All right. Thank you, Edward. First of all, I think we said it in previous call, we discussed it with investors and analysts all the time, our facility is working as usual. I think we have a phenomenal team in Israel. The team is committed, understands the responsibility it has and the commitments to customers. We've not missed even one shipment throughout the entire few months previously, this situation definitely is something that is difficult, but we are able to execute and operate both in the manufacturing area, but not less important also on the R&D side. Most of the people are coming to work. Very few work from home, that is also just a few days a week. Usually, it's one day a week.

Speaker #4: I think we have a phenomenal team in Israel. The team is committed. Understands the responsibility it has. And the commitments to customers. We have not met even one shipment throughout the entire few months and previously this situation.

Speaker #4: Definitely, it's something that is difficult. But we are able to execute and operate both in the manufacturing area but not less important, also on the R&D side.

Speaker #4: Most of the people are coming to work. Very few work from home, and that is also just a few days a week—usually, it's one day a week.

Ramy Langer: From a capacity point of view, we are able to ramp, and we really are seeing 100% performance as if the situation did not exist at all. As you said, we are going to add capacity. In Germany, this is something that is ongoing, but definitely I think we've been able to overcome the situation, and I'm sure that we'll continue to operate and execute the same way that we have done in the past months and years.

Speaker #4: And from capacity point of view, we are able to ramp. And we really are seeing 100% performance as if the situation did not exist at all.

Speaker #4: As you said, we are going to add capacity in Germany. This is something that is ongoing. But definitely, I think we've been able to overcome the situation.

Speaker #4: And I'm sure that we'll continue to operate and execute the same way that we have done in the past. Months and years. Okay. And just thank you for that, Rami.

Edward Yang: Okay. Thank you for that, Rami. For my follow-up, I mean, could you expand more just on your competitive differentiation? Sounds like you're very confident about Hawk and Eagle G5, but other than technology, you know, what is Camtek's advantage? I think in the past you've talked about customization at scale. Is it pricing, service? Some color around that would be great.

Speaker #4: And for my follow-up, I mean, could you expand more just on your competitive differentiation? Sounds like you're very confident about Hawk and Eagle G5.

Speaker #4: But other than technology, what is Camtek's advantage? I think in the past, you've talked about customization at scale. Is it pricing, service, some color around that would be great.

Speaker #4: So I think we mentioned it in the prepared notes. In the first year of introducing our Eagle G5 and the Hawk 30% of our revenues came from these two new machines.

Ramy Langer: I think we mentioned it in the prepared notes. You know, in the first year of introducing our Eagle G5 and the Hawk, 30% of our revenues came from these 2 new machines, and we plan to at least double in revenues the sales of these 2 products. I think from the acceptance and adoption of these 2 products, I think, say something, the confidence on one side of our customers, but also the performance of the machines. I think in general, if we wanna talk about the competitive just from, I would say, 30,000 feet, there are 2 things. First of all, it's the mechanical capabilities that are state-of-the-art. We're using the most precise platform with all the capabilities from the optical and all the other hardware on the machine.

Speaker #4: And we plan to at least double in revenues the sales of these two products. So I think from the acceptance and adoption of these two products, I think it says something—the confidence, on one side, of our customers.

Speaker #4: But also the performance of the machines. I think in general, if we want to talk about the competitive just from, I would say, 30,000 feet, there are two things.

Speaker #4: First of all, it's the mechanical capabilities that are state of the art. We're using the most precise platform with all the capabilities from the optical and all the other hardware on the machine.

Speaker #4: But I think what we couple with that, looking into the future, is what we have discussed in the prepared notes. And this is our AI capabilities which are absolutely breakthrough, coupled with the visual layer acquisition.

Ramy Langer: I think what we couple with that, looking into the future, is what we have discussed in the prepared notes, and this is our AI capabilities, which are absolutely breakthrough, coupled with the Visual Layer acquisition. Moving into the year, we will start to implement it and create another differentiation from our competitors. I want to mention two things more. I think the OSATs and our customers in China require a lot of flexibility. I think built into our machines and also built into our manufacturing capabilities, there is a lot of flexibility. If it's from customization, if it's very quick deliveries, it's their abilities to respond to any new requirements the customer may want. We take this one step further, and I think we have absolutely the best customer support organization.

Speaker #4: So, moving into the year, we will start to implement it and create another differentiation from our competitors. But I want to mention two things more.

Speaker #4: I think the OSAT and our customers in China require a lot of flexibility. And I think built into our machines and also built into our manufacturing capabilities, there is a lot of flexibility.

Speaker #4: If it's from customization, if it's very quick deliveries, it's their abilities to respond to any new requirements the customer remote. We take this one step further and I think we have absolutely the best customer support organization.

Speaker #4: So I think this whole thing from the relationships to the customer down to our flexibility ability and the quality of our products, I think altogether create what Camtek is today.

Ramy Langer: I think this whole thing, from the relationships to the customer down to our flexibility ability and the quality of our products, I think all together create what Camtek is today.

Speaker #4: Thank you. Thanks, Ed. As a reminder, if you want to ask a question, please raise your hand on the platform. Our next question is going to be from Vitvati Shartra of Evercore.

Edward Yang: Thank you.

Kenny Green: Thanks, Ed. As a reminder, if you wanna ask a question, please raise your hand on the platform. Our next question is gonna be from C.J. Muse of Evercore. C.J. Muse, please go ahead.

Speaker #4: Vitvati, please go ahead. Thanks for taking my question. The first one I had is, we're seeing a lot of component pricing increases at the same time DRAM prices going up.

C.J. Muse: Thanks for taking my question. The first one I had is, you know, we're seeing a lot of, you know, component pricing increases. At the same time, DRAM prices going up. Is that a potential headwind to gross margins? Are you seeing that impact your margins at all?

Vedvati Shrotre: Thanks for taking my question. The first one I had is, you know, we're seeing a lot of, you know, component pricing increases. At the same time, DRAM prices going up. Is that a potential headwind to gross margins? Are you seeing that impact your margins at all?

Speaker #4: Is that a potential headwind to cross margins? Are you seeing that impact your margins at all? Hi, Vitvati. So obviously, there is some pressure from the supply chain, but on the same time, we continue to implement cost reduction in our machine.

Moshe Eisenberg: Hi, C.J. Muse. Obviously there is some pressure from the supply chain, but at the same time, we continue to implement cost reduction in our machine. I think all in all, what we are going to see in the H2 of the year is an improvement to the gross margin.

Speaker #4: So I think all in all, what we are going to see in the second half of the year is an improvement to the gross margin.

C.J. Muse: Understood. Then on the orders that you talked about for HBM, how does that split into 2026 and 2027?

Vedvati Shrotre: Understood. Then on the orders that you talked about for HBM, how does that split into 2026 and 2027?

Speaker #4: Understood. And then on the orders that you talked about for HBM, how does that split into 26 and 27? We've not included this in our prepared notes.

Rafi Amit: We've not included this in our prepared notes, and I don't want just to not to be very accurate. There is a significant number already for 2026 shipments, and the rest will come in 2027, but there is a big number coming this year.

Ramy Langer: We've not included this in our prepared notes, and I don't want just to not to be very accurate. There is a significant number already for 2026 shipments, and the rest will come in 2027, but there is a big number coming this year.

Speaker #4: And I don't want just to not to be very accurate. There is a significant number already for 26 shipments. And the rest will come in 2027.

Speaker #4: But there is a big number coming this year. Understood. That's all for me. Thank you. Thank you. Thanks, Vitvati. So that will end our question-and-answer session.

C.J. Muse: Understood. That's all for me. Thank you.

Vedvati Shrotre: Understood. That's all for me. Thank you.

Rafi Amit: Thank you.

Ramy Langer: Thank you.

Kenny Green: Thanks, C.J. Muse. That will end our question and answer session. Within the coming few hours, we'll upload the recording of this call to the Camtek website. With that, I'd like to hand the call back to Rafi for any concluding remarks. Rafi, please go ahead.

Speaker #4: Within the coming few hours, we'll upload the recording of this call to the Camtek website. And with that, I'd like to hand the call back to Rafi for any concluding remarks.

Speaker #4: Rafi, please go ahead. Okay. I want to express my gratitude to all of you for your ongoing interest in our business. Special thanks goes to our employees and management team for their outstanding performance, and to our investors.

Rafi Amit: Okay. I want to express my gratitude to all of you for your ongoing interest in our business. A special thanks goes to our employees and management team for their outstanding performance. To our investor, I appreciate your long-term support. I look forward to our next conversation in the upcoming quarter. Thank you and goodbye.

Ramy Langer: Goodbye

Operator: Goodbye