Camtek Ltd (CAMT) 2005 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the Camtek Ltd. third-quarter 2005 results conference call. All participants are at present in listen-only mode. Following management's formal presentation instructions will be given for the question-and-answer session. As a reminder, this conference is being recorded November 22, 2005. I would like to remind everyone that the conference call may contain projections or other forward-looking statements regarding future events or the future performance of the Company. These statements are only predictions and may change as time passes. Camtek does not assume any obligation to update that information. Actual events or results may differ materially from those projected, including as a result of changing industry and market trends, reduced demand for our products, the timely developments of our new products and their adoption by the market, increased competition in the industry and price reductions as well as due to risks identified in the documents filed by the Company with the SEC.

女士們先生們，感謝你們的支持。歡迎參加 Camtek Ltd. 2005 年第三季度業績電話會議。所有參與者目前均處於僅監聽模式。問答環節將遵循管理層的正式演示指示。提醒一下，本次會議的錄音時間為 2005 年 11 月 22 日。我想提醒大家，電話會議可能包含有關未來事件或公司未來業績的預測或其他前瞻性陳述。這些陳述只是預測，可能會隨著時間的推移而改變。 Camtek 不承擔任何更新該信息的義務。實際事件或結果可能與預測存在重大差異，包括由於行業和市場趨勢的變化、對我們產品的需求減少、我們新產品的及時開發及其被市場採用、行業競爭加劇和價格下降以及由於公司向 SEC 提交的文件中發現的風險。

You should have all received by now the Company's press release. If you have not yet received it please call Gelbart-Kahana at 1-866-704-6710. I would now like to hand over the call to Mr. Kenny Green of Gelbart-Kahana. Mr. Green, would you like to begin?

您現在應該已經收到了公司的新聞稿。如果您尚未收到，請致電 Gelbart-Kahana，電話：1-866-704-6710。現在我想將電話轉交給 Gelbart-Kahana 的 Kenny Green 先生。格林先生，您想開始嗎？

I would like to welcome all of you to the conference call and thank Camtek's management for hosting this call. With us on the line today are Mr. Moshe Amit, Executive Vice President and Chief Financial Officer and Mr. Yuval Attias, Controller. Mr. Amit will start the call by giving an overview of Camtek's performance in the third quarter of 2005 followed by Mr. Attias who will summarize the financial results. Finally, Mr. Amit will discuss recent developments within the Company and in the market, discuss the guidance and then we will open the call to questions. I would now like to hand over the call to Mr. Moshe Amit.

我歡迎大家參加電話會議，並感謝 Camtek 管理層主持這次電話會議。今天與我們通話的有執行副總裁兼首席財務官 Moshe Amit 先生和財務總監 Yuval Attias 先生。 Amit 先生將首先概述 Camtek 2005 年第三季度的業績，然後 Attias 先生將總結財務業績。最後，阿米特先生將討論公司內部和市場的最新發展，討論指導意見，然後我們將開始提問。現在我想將電話轉交給摩西·阿米特先生。

Thank you, Kenny. Hello, everyone and welcome to our third-quarter 2005 conference call. Joining me today is Yuval Attias, our Controller, and together we would like to thank everyone of you for your interest in Camtek and for joining us on this call. As we have announced in early September, we expected that our third-quarter 2005 results would continue on the pace of recovery started in the second quarter with revenues coming in at between 16 to 18 million. Our revenues came in at 17.7 million, which was as expected but towards the higher end of our expectations. What has in fact exceeded our expectation is a success we are experiencing in the semiconductor industry with our Falcon product, which I will get into more details later.

謝謝你，肯尼。大家好，歡迎參加我們的 2005 年第三季度電話會議。今天加入我的是我們的財務總監 Yuval Attias，我們要共同感謝大家對 Camtek 的興趣並參加我們的電話會議。正如我們在 9 月初宣布的那樣，我們預計 2005 年第三季度的業績將繼續保持第二季度開始的複蘇步伐，收入在 16 至 1800 萬美元之間。我們的收入為 1770 萬美元，符合預期，但接近我們預期的較高端。事實上，我們的 Falcon 產品在半導體行業取得的成功超出了我們的預期，我將在稍後詳細介紹。

The main highlights of the quarter are as follows. Our revenues were sequentially up 6% even though they remained below what we had achieved in the third quarter of last year, which was our best quarter in our history. However, this quarter happens to be the second-best quarter in our history from a revenue standpoint, and we believe that we firmly remain on the path to recovery, but also over the course of next year we will again be able to report to you record revenue, driven by the growth of our semiconductor business.

本季度的主要亮點如下。我們的收入環比增長了 6%，儘管仍低於去年第三季度的業績，去年第三季度是我們歷史上最好的季度。然而，從收入的角度來看，本季度恰好是我們歷史上第二好的季度，我們相信我們堅定地走在復甦的道路上，而且在明年我們將再次向您報告受我們半導體業務增長的推動，創紀錄的收入。

Our semiconductor business grew substantially in the quarter, achieving almost 5 million in revenues, up 26% sequentially from 3.8 million and in the last quarter. Based on our current run rates for the Falcon of around 20 million annually, we estimate that we have already achieved a significant market share for the Falcon in only one year and our market share continues to grow. We continue to expand the Falcon customer base qualified by strategic global accounts and winning orders from new geographic zones including sales to some big names in the semiconductor industry. In fact, we are already receiving repeat orders for the Falcon which is clear indication of satisfied customers. 50% of the Falcon sales were repeat orders in the last quarter.

我們的半導體業務在本季度大幅增長，實現收入近 500 萬美元，較上季度的 380 萬美元環比增長 26%。根據我們目前每年約 2000 萬台 Falcon 的運行率，我們估計僅用一年時間我們就已經在 Falcon 上取得了相當大的市場份額，並且我們的市場份額還在持續增長。我們繼續擴大 Falcon 的客戶群，通過全球戰略客戶獲得資格，並贏得新地理區域的訂單，包括向半導體行業的一些知名企業進行銷售。事實上，我們已經收到了獵鷹的重複訂單，這清楚地表明客戶很滿意。上季度 Falcon 銷量的 50% 是重複訂單。

Our cash level grew to 14.7 million over the third quarter. This was partially due to an investment by FIMI, which we announced last August which increased our cash level by 5 million. Moreover, we generated a positive operating cash flow of 2.2 million. We believe that we have more than enough working capital to support the strong growth for our business, particularly the Falcon.

第三季度我們的現金水平增至 1470 萬美元。這部分歸功於 FIMI 的投資，我們去年 8 月宣布這項投資使我們的現金水平增加了 500 萬美元。此外，我們還產生了 220 萬美元的正經營現金流。我們相信，我們有足夠的營運資金來支持我們業務的強勁增長，特別是獵鷹業務。

I will now provide more details on the value effectives of our business during the third quarter. We will start with the PCB and the HDIS. Even though the PCB business has stabilized since last quarter, we are facing some erosion in the selling prices of the PCB market, which together with a variation in the sales mix was the main reason for the slightly lower gross margin in the quarter. However, even though the revenue level remains more or less flat to slightly negative in this business, the PCB market is making up a continually shrinking percentage of our overall revenues. The negative effect of our margins in the near-terms will therefore diminish over the next few quarters.

我現在將提供有關第三季度我們業務的價值效益的更多詳細信息。我們將從 PCB 和 HDIS 開始。儘管PCB業務自上季度以來已趨於穩定，但我們面臨著PCB市場銷售價格的一些侵蝕，這與銷售結構的變化一起是本季度毛利率略有下降的主要原因。然而，儘管該業務的收入水平或多或少保持持平甚至略有負值，但 PCB 市場在我們總收入中所佔的比例正在不斷縮小。因此，我們近期利潤率的負面影響將在未來幾個季度減少。

The HDI market segment reflects the higher end of the PCB market and naturally the gross potential in the HDI market for our product is higher and with better margin. We see increasing interest for our HDI products like the Orion Fine Line, the LAM, the Dragon HD2 over the coming quarters. During the third quarter PCB first contributed 53% of our revenues in HDI Substrates sales contributed 19%. The PCB and HDI business made up a total of 72% of overall revenue. Our service revenue contributed a total of 1.6 million or 14% of the revenues in these two sectors. 91% of the nonservice revenue achieved in those two sectors were through repeat orders; while 81% of these sales were to the top 100 PCB manufacturers. That segment responsible for 66% of the worldwide PCB production.

HDI細分市場反映了PCB市場的高端，自然我們的產品在HDI市場的總潛力更高，利潤率也更高。我們看到，在未來幾個季度，人們對 Orion Fine Line、LAM、Dragon HD2 等 HDI 產品的興趣與日俱增。第三季度PCB首先貢獻了我們收入的53%，HDI基板銷售額貢獻了19%。 PCB和HDI業務合計佔整體收入的72%。我們的服務收入總共貢獻了160萬，佔這兩個部門收入的14%。這兩個行業 91% 的非服務收入來自重複訂單；其中81%的銷售額來自前100名PCB製造商。該部門佔全球 PCB 產量的 66%。

Now to the semiconductor and packaging market. As I mentioned before, we continue to remain very proud of our achievements due to the Falcon, which continued to exceed our expectations. We expect the Falcon to continue to show considerable growth over the next few quarters. But even based on the current run rate of around 20 million annually, the Falcon is well on the way to nearly one-third of our revenues by the end of 2005, and we expect it to approach the 50% (ph) mark in the first half of 2006. We believe that the Falcon will provide for the majority of our growth in 2006, and I will get to our guidance later.

現在進入半導體和封裝市場。正如我之前提到的，我們仍然對獵鷹所取得的成就感到非常自豪，它繼續超出了我們的預期。我們預計獵鷹將在未來幾個季度繼續呈現可觀的增長。但即使按照目前每年約 2000 萬台的運行率，到 2005 年底，Falcon 仍將佔據我們收入的近三分之一，並且我們預計它在 2005 年將接近 50%（ph）大關。 2006 年上半年。我們相信 Falcon 將為我們 2006 年的大部分增長提供動力，我將在稍後介紹我們的指導。

An achievement with regard to the Falcon is a significant bench we have made in the market in only one year. We estimated the semiconductor market for the Falcon is still unsaturated as we are seeing more and more applications that we have not thought of, that our customers are able to use the Falcon for. In particular the Falcon is proving itself for more challenging applications, including MEMS or microelectronics mechanical semiconductor, reconstructive wafers, probe mark inspection, gold bump inspection and gold bump metrology. The stock improved to an excellent solution each time. Therefore we believe that the potential market size for the Falcon is much higher than the 100 to 120 million, which is our estimate for the total revenue of all known competitors manufacturing products like the Falcon.

Falcon 的成就是我們僅用一年時間就在市場上取得的重大成就。我們估計 Falcon 的半導體市場仍然不飽和，因為我們看到越來越多我們沒有想到的應用，我們的客戶能夠使用 Falcon。特別是，Falcon 正在證明自己適合更具挑戰性的應用，包括 MEMS 或微電子機械半導體、重構晶圓、探針標記檢查、金凸塊檢查和金凸塊計量。庫存每次都改進為出色的解決方案。因此，我們認為 Falcon 的潛在市場規模遠高於 100 至 1.2 億美元，這是我們對製造 Falcon 等產品的所有已知競爭對手的總收入的估計。

Our system has done exceptionally well in side-by-side evaluation, and most of the wins were performed on performance basis. In fact many of our customers are some of the biggest names in the industry, and we are already receiving repeat and multiple orders for the Falcon from a number of very satisfied customers. The growth we are seeing each quarter is substantial. Forty-two Falcons have now been installed in 34 sites across Japan, Taiwan, Singapore, Europe and the USA. As of September 30 a total of 29 Falcons were recognized as revenues out of which 12 Falcons were repeat orders. We do not see this growth rate letting up anytime soon, and we currently have a very strong pipeline of the Falcon orders and evaluation requests to inflating into a particular intense shipping plan between now and the end of the first quarter of 2006. Even though the qualification and the penetration process is relatively long, we believe the very high success rate so far, as well as the fact that our competitors have taken a notice of our success demonstrates the Falcon's significant competitive advantages and are part of the basis for our optimism.

我們的系統在並行評估中表現非常出色，並且大多數勝利都是根據性能進行的。事實上，我們的許多客戶都是業內知名人士，我們已經收到了許多非常滿意的客戶對 Falcon 的重複和多個訂單。我們每個季度看到的增長都是巨大的。 42 架 Falcon 現已安裝在日本、台灣、新加坡、歐洲和美國的 34 個地點。截至 9 月 30 日，共有 29 架 Falcon 被確認為收入，其中 12 架 Falcon 為重複訂單。我們認為這種增長率不會很快放緩，而且我們目前有大量的獵鷹訂單和評估請求，從現在到 2006 年第一季度末，這些訂單和評估請求將膨脹為一個特別緊張的運輸計劃。資格認證和滲透過程相對較長，我們相信迄今為止非常高的成功率，以及我們的競爭對手已經註意到我們的成功，這表明獵鷹具有顯著的競爭優勢，也是我們樂觀的基礎的一部分。

I would now like to turn the call over to Yuval to go through the financials.

我現在想把電話轉給尤瓦爾來了解一下財務狀況。

Revenues for the third quarter of 2005 were $17.7 million, 8% below $19.3 million as reported in the third quarter of 2004 and up 6% sequentially from 16.8 million reported in the second quarter of 2005. The revenue breakdown in the third quarter of 2005 between the sales of PCB, HDI and the semiconductor manufacturing and packaging products, was 53%, 19%, 28%, respectively.

2005 年第三季度的收入為 1,770 萬美元，比 2004 年第三季度報告的 1,930 萬美元低 8%，比 2005 年第二季度報告的 1,680 萬美元連續增長 6%。 2005 年第三季度的收入細分為PCB、HDI和半導體製造及封裝產品的銷售額分別為53%、19%、28%。

Our geographical breakdown of the revenue for the quarter was United States, 13%; Europe, 13%; Japan, 6%; and the Pacific Rim, 68%, which consisted of China, 40%; Taiwan, 18%; and the rest of Asia, 10%. Growth profit for the third quarter of 2005 was $8.5 million, representing a gross margin of 48.2%. This is compared with $10.6 million or gross margin of 54.8% as reported in the third quarter of 2004. And 8.3 million or gross margin of 49.7% as reported in the previous quarter.

我們本季度收入的地理分佈是美國，佔 13%；歐洲，13%；日本，6%；環太平洋地區佔 68%，其中中國占 40%；台灣，18%；亞洲其他地區為 10%。 2005年第三季度的增長利潤為850萬美元，毛利率為48.2%。相比之下，2004 年第三季度報告的毛利率為 1,060 萬美元，毛利率為 54.8%。上一季度報告的毛利率為 830 萬美元，毛利率為 49.7%。

The lower gross margin was mainly due to the erosion in the selling prices of the PCB sector and the sales mix of products. Operating profit for the third quarter of 2005 was $1.5 million, representing an operating margin of 8.5%. This compares with a 3.5 million or an operating margin of 18.3% as reported in the third quarter of 2004 and 1.4 million or an operating margin of 8.6% as reported in the previous quarter. Third-quarter net income was 1.5 million or $0.06 per share compared to net income of 3.3 million or $0.12 per share in the third quarter of 2004. And 1.5 million or $0.05 per share in the second quarter of 2005.

毛利率下降主要是由於PCB行業銷售價格和產品銷售結構的下降。 2005 年第三季度的營業利潤為 150 萬美元，營業利潤率為 8.5%。相比之下，2004 年第三季度的銷量為 350 萬輛，營業利潤率為 18.3%，上一季度的營業利潤率為 140 萬輛，營業利潤率為 8.6%。第三季度的淨利潤為 150 萬美元，即每股 0.06 美元，而 2004 年第三季度的淨利潤為 330 萬美元，即每股 0.12 美元。2005 年第二季度的淨利潤為 150 萬美元，即每股 0.05 美元。

Turning to the balance sheet, our cash and equivalents at the end of the third quarter stood at $13.7 million compared with net cash we had in the end of 2004 at 6.8 million. This includes the 5 million dollar we received from FIMI as a convertible loan.

談到資產負債表，第三季度末我們的現金和等價物為 1,370 萬美元，而 2004 年底我們的淨現金為 680 萬美元。這包括我們從 FIMI 收到的 500 萬美元可轉換貸款。

Our inventory consisted of $15.4 million in finished goods and work in process, and $8 million in raw material and components. With that let me return the call back to Moshe.

我們的庫存包括 1,540 萬美元的製成品和半成品，以及 800 萬美元的原材料和零部件。接下來，讓我將電話回給摩西。

Thank you. Looking ahead, we expect to continue to see the relative weight of the revenues from the semiconductor manufacturing and packaging industry continue to increase substantially from quarter to quarter. Given the current pipeline of orders and evaluation requests for the Falcon, this product provides us with particularly good visibility going forward, about two quarters. As this product makes up a larger and larger portion of our revenue, we expect our overall visibility to improve. In the fourth quarter we believe the revenues in the PCB sector will continue to decline but at a more moderate rate, while the shortfall will be more than fully made up by our growing revenues achieved from our semiconductor division.

謝謝。展望未來，我們預計半導體製造和封裝行業收入的相對比重將繼續逐季度大幅增加。考慮到目前獵鷹的訂單和評估請求，該產品為我們提供了特別好的未來（大約兩個季度）的可見性。由於該產品在我們收入中所佔的比例越來越大，我們預計我們的整體知名度將會提高。我們相信第四季度PCB行業的收入將繼續下降，但下降幅度更為溫和，而半導體部門不斷增長的收入將完全彌補這一缺口。

Therefore, we are expecting our revenues for the fourth quarter to grow, falling in the range of 18 to 20 million. I would now like to introduce our 2006 guidance. We believe 2006 PCB sector revenues will remain at around the same level as those of 2005. However, given our significant strengthening pipeline of Falcon orders and evaluation requests for the next six months and assuming an unchanged strain in the global semiconductor market, we focused 2006 Falcon sales growing by 100 to 150% over 2005. Thus, based on this assumption, we expect total revenues in 2006 to be in the range of 85 to 95 million, representing year-over-year growth of between 35 to 55%.

因此，我們預計第四季度的收入將增長，下降在18至2000萬之間。我現在想介紹一下我們2006 年的指導意見。我們相信 2006 年 PCB 行業的收入將保持在與 2005 年大致相同的水平。然而，鑑於我們未來 6 個月的 Falcon 訂單和評估請求的渠道顯著加強，並假設全球半導體市場的壓力不變，我們將重點放在 2006 年。獵鷹銷量比 2005 年增長 100% 到 150%。因此，基於這一假設，我們預計 2006 年總收入將在 85 到 9500 萬美元之間，同比增長 35% 到 55%。

On that positive note I would like to turn over the call for questions and answer session. Operator.

出於這一積極的考慮，我想轉交問答環節。操作員。

(OPERATOR INSTRUCTIONS) Sergey Vastchenok, CIBC World Markets.

（操作員說明）Sergey Vastchenok，CIBC 全球市場。

Congratulations on a good quarter. Can you just specify the numbers absolute numbers for the product breakdown, the PCB, HDI, services and Falcon?

祝賀您度過了一個美好的季度。您能否僅指定產品細分、PCB、HDI、服務和 Falcon 的絕對數字？

For the PCB in the quarter we had $9.5 million, approximately microelectronic semiconductor was 4.8 and HDI 3.4. The PCB includes about $1.5 million of service.

對於本季度的 PCB，我們有 950 萬美元，大約微電子半導體為 4.8，HDI 為 3.4。 PCB 包括約 150 萬美元的服務。

Do you have expectations for Q4 for revenues from Falcon line?

您對 Falcon 系列第四季度的收入有預期嗎？

Well, we do expect significant growth for the Falcon line probably in the area of at least $2 to $3 million over whatever we achieve in Q3.

好吧，我們確實預計 Falcon 系列的顯著增長可能比我們第三季度實現的目標至少增加 2 至 300 萬美元。

And actually it's going to continue like this over '06?

事實上06年還會繼續這樣嗎？

Probably even in a higher rate. The PCB sector may come down an additional 2 million, so the net class is going to be something in the area of $2 million. This is why we moved up the guidance to 18 to 20.

甚至可能會更高。 PCB 行業可能會再減少 200 萬美元，因此淨資產將達到 200 萬美元左右。這就是我們將指導值上調至 18 至 20 的原因。

Regarding the PCB, how the visibility looks like in '06 and do you expect PCB line to decline next year?

關於PCB，06年的能見度如何？您預計明年PCB產線會下降嗎？

The working assumption is there is no visibility basically in the PCB sector. This is a kind of an old saying, an old trend that we had and everybody in this industry is telling us and you again and again. However, we don't see any sign of recession, of slowing down; people produce (indiscernible) but this is really very basic electronic components. The market is saturated but whatever is going to be increased capacity, whenever its going to be a need to replace equipment, we are going to be there. We are going to stay around. The working assumption is that this is mainly because of the -- I would say the wide -- the large increase in capacity specifically in China in 2004 created a situation that in 2005 things became slightly in the lower size with the quantities. And in 2006 we believe that it will remain flat. Don't forget that in the PCB sector this is including the HDI, the HDI sector appears to be more promising. But really this is the high-end, and when the technology trend is still valid as people are moving to more complex applications this definitely creates more opportunities in this business.

工作假設是 PCB 行業基本上沒有可見度。這是一句老話，是我們的一個老趨勢，這個行業的每個人都在一次又一次地告訴我們和您。然而，我們沒有看到任何衰退或放緩的跡象；人們生產（聽不清）但這確實是非常基本的電子元件。市場已經飽和，但無論產能如何增加，無論何時需要更換設備，我們都會在那裡。我們將留在附近。工作假設是，這主要是因為——我想說的是廣泛的——2004年特別是中國的產能大幅增加，造成了2005年數量略有減少的情況。我們相信 2006 年將保持平穩。不要忘記，在PCB領域，這包括HDI，HDI領域似乎更有前途。但這確實是高端領域，當技術趨勢仍然有效時，隨著人們轉向更複雜的應用程序，這肯定會在這個行業創造更多機會。

Equipment products for the HDI substrate is naturally more expensive as far as pricing and contain higher margin. So there is still future, and this is basically the positive side of the PCB. But overall, we believe that it will remain flat, which means including HDI and PCB including revenue we estimated to be in the area of $11 million a quarter for next year, or total of something like 44 to 45 million in revenues.

HDI基板的設備產品價格自然較高，利潤率也較高。所以還是有未來的，這基本上就是PCB積極的一面。但總體而言，我們認為它將保持平穩，這意味著包括 HDI 和 PCB 在內，我們預計明年每個季度的收入將在 1100 萬美元左右，或者總收入約為 44 至 4500 萬美元。

And the last question regarding the order you announced recently, a win from leading Chinese semiconductor manufacturer, can you elaborate on this deal and when it plans a revenue recognition from the contract?

最後一個問題是關於您最近宣布的來自中國領先半導體製造商的訂單，您能否詳細說明這筆交易以及計劃何時從合同中確認收入？

Most of this deal we will recognize this quarter. I believe probably 70% will be this quarter, and the balance will be in the next quarter. This is spending the installation rate of the machines. We won this order after extensive evaluation against a competitor. And almost as usually we won on performance basis. When we say performance basis we win the customer -- this customer like most of the other customers did not pick Camtek because we were cheaper or because we just wanted to (indiscernible). They picked us because we perform better; because we did something that the competitor was not able to perform or not able to perform on our level.

我們將在本季度確認這筆交易的大部分內容。我相信本季度可能有 70%，其餘的將在下個季度。這是花費機器的安裝率。經過對競爭對手的廣泛評估後，我們贏得了這份訂單。幾乎和往常一樣，我們是根據表現獲勝的。當我們說以性能為基礎時，我們贏得了客戶——這個客戶像大多數其他客戶一樣，沒有選擇 Camtek，因為我們更便宜，或者因為我們只是想（聽不清）。他們選擇我們是因為我們表現更好；因為我們做了一些競爭對手無法做到或無法達到我們水平的事情。

Okay. Thank you.

好的。謝謝。

(OPERATOR INSTRUCTIONS) Jim Weil (ph) of Unterberg.

（操作員說明）Unterberg 的 Jim Weil（ph）。

Question on '06. With revenue forecasted to grow to 85, 90 million, what kind of operating leverage do you think you can achieve with that kind of revenue growth. And tell us a little bit about what the gross margin should do given the contribution Falcon is likely to make to all that revenue growth.

關於'06的問題。預計收入將增長到 85、9000 萬，您認為通過這種收入增長可以實現什麼樣的運營槓桿？請告訴我們一些關於考慮到獵鷹可能對所有收入增長做出的貢獻的毛利率應該如何。

Well, definitely what will be at this level the operating margin, the gross margin, everything will get improved. We have a kind of a target model which is a part of our presentation, and we believe that what we say under optimal market conditions and this is really something which is over 22 or $23 million in revenues and 50-50 percentage, 50-50 PCB and (indiscernible), and assuming there will not be any major decline in the unit prices or something which is unexpected. We may go back to the two digit numbers of net earnings. This is definitely over 10% perhaps even 12, 13 or 14%. This is we set as a target and the cost structure we have shows that we can make it. Of course this is subject that everything will go smooth or whatever, but this is reasonable and this is within a reach.

嗯，在這個水平上，營業利潤率、毛利率肯定會有所改善，一切都會得到改善。我們有一種目標模型，這是我們演示的一部分，我們相信我們在最佳市場條件下所說的，這實際上是超過 22 或 2300 萬美元的收入和 50-50%，50-50 PCB和（音頻不清晰），並假設單價不會出現任何重大下降或出現意外情況。我們可能會回到兩位數的淨利潤。這絕對超過 10%，甚至 12%、13% 或 14%。這是我們設定的目標，我們的成本結構表明我們可以實現它。當然，這是一切順利甚麼的，但這是合理的，這是可以實現的。

Now as far as the gross margin in this area, and again direct not in the first quarter and not sure about the first quarter but later on during the year we expect to see that we exceeded 50% perhaps anywhere between 50 to 52% gross margin. This is also within a reach.

現在就該領域的毛利率而言，再次直接不是在第一季度，也不確定第一季度，但在今年晚些時候，我們預計會看到我們超過 50%，也許毛利率在 50% 到 52% 之間。這也是觸手可及的。

(OPERATOR INSTRUCTIONS) There are no further questions at this time. Mr. Amit, would you like to make your concluding statement?

（操作員說明） 目前沒有其他問題。阿米特先生，您願意做總結髮言嗎？

Ladies and gentlemen, on behalf of the management of Camtek I would like to thank you for your continued interest in our business, and we are very much look forward to reporting positive results to you over the next few quarters. Thank you, and we look forward to speaking to you in the next quarter.

女士們、先生們，我謹代表 Camtek 管理層感謝您對我們業務的持續關注，我們非常期待在接下來的幾個季度向您報告積極的成果。謝謝您，我們期待在下個季度與您交談。

Thank you. This concludes Camtek Ltd. third-quarter 2005 results conference call. Thank you for your participation. You may go ahead and disconnect.

謝謝。 Camtek Ltd. 2005 年第三季度業績電話會議到此結束。感謝您的參與。您可以繼續並斷開連接。