Camtek Concludes Q1 with Record-Breaking Performance Amidst Global Market Uncertainty
Camtek, a leading manufacturer of inspection and metrology solutions for the semiconductor industry, has concluded its first quarter (Q1) with outstanding results. According to recent conference call transcript, Camtek's Q1 revenues reached $119 million, marking a year-over-year increase of more than 20%. This impressive growth is attributed to a significant improvement in gross margin, which rose to over 52%, contributing to a record operating income of over $37 million.
The distribution of revenue was 45% to 50% from high-performance computing (HPC) applications and about 20% from other advanced packaging applications. The remaining revenue was distributed among CMOS image sensor, compound semiconductor, front-end applications, and general 2D applications. This diversification highlights the robustness and diversity of Camtek's business model.
Camtek's CEO, Rafi Amit, noted that the company has sold systems to over 35 different customers during the quarter, with many purchasing only one or two tools. This demonstrates the company's strong customer base and technological leadership in the industry.
Despite global market uncertainty due to tariff policies and geopolitical issues, Camtek's business remains unaffected. The company's CEO emphasized that the tariff policy does not directly affect them as most of their sales are not targeted at the U.S. market, and their manufacturing is based in Israel and Europe. However, Amit did acknowledge that these issues may have a negative impact on the global economy and demand for electronic components.
Camtek's guidance for Q2 2025 revenue suggests strong momentum heading into the second quarter, with a forecasted range of $120 million to $123 million. This represents approximately 18% year-over-year growth compared to the same period in 2024. The company also expects a solid performance in Q3.
Looking ahead, Camtek's primary growth engine is expected to be advanced packaging, particularly in HPC supporting AI applications. New technologies are expected to be introduced, such as HBM device makers preparing for higher memory content and transitioning to HBM 4 next year.
