Camtek Ltd (CAMT) 2022 Q2 法說會逐字稿

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. (Operator Instructions)

女士們，先生們，感謝各位的支持。歡迎大家參加 Camtek 業績發表會 Zoom 網路研討會。我叫 Kenny Green，是 Camtek 投資人關係團隊的成員。 （操作員指示）

Following the formal presentation, I'll provide some instructions for participating in the live Q&A session. I would like to remind everyone that this conference call is being recorded, and the recording will be available on Camtek's website from tomorrow. You should've all received by now the company's press release. If not, please view it on the company's website.

正式演講結束後，我將提供一些參與現場問答環節的說明。我想提醒大家，本次電話會議正在錄製中，錄音將於明天在 Camtek 的網站上發布。大家現在應該已經收到公司的新聞稿了。如果沒有，請在公司網站上查看。

With me today on the call, we have Mr. Rafi Amit, Camtek's CEO; Mr. Moshe Eisenberg, Camtek's CFO; and Mr. Ramy Langer, Camtek's COO. Rafi will open by providing an overview of Camtek's results and discuss recent market trends. Moshe will then summarize the financial results of the quarter. Following that, Rafi, Moshe and Ramy will be available to take your questions.

今天與我一起參加電話會議的嘉賓有 Camtek 執行長 Rafi Amit 先生、Camtek 財務長 Moshe Eisenberg 先生以及 Camtek 營運長 Ramy Langer 先生。 Rafi 將首先概述 Camtek 的業績並討論近期市場趨勢。隨後，Moshe 將總結本季的財務表現。之後，Rafi、Moshe 和 Ramy 將回答大家的問題。

Before we begin, I would like to remind everyone that certain information provided on this call are internal company estimates, unless otherwise specified. This call also may contain forward-looking statements. These statements are only predictions and may change as time passes. Statements on this call are made as of today, and the company undertakes no obligation to update any of the forward-looking information contained, whether as a result of new information, future events, changes and expectations or otherwise.

在開始之前，我想提醒大家，除非另有說明，本次電話會議中提供的某些資訊為公司內部估計。本次電話會議也可能包含前瞻性陳述。這些陳述僅為預測，可能會隨著時間的推移而改變。本次電話會議中的陳述截至今日為止，本公司不承擔更新任何前瞻性資訊的義務，無論其是否因新資訊、未來事件、變更和預期或其他原因而更新。

Investors are reminded that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected, including as a result of the effects of general economic conditions, risks related to the concentration of a significant portion of Camtek's expected business in certain countries, particularly China, from which Camtek expects to generate a significant portion of its revenues in the foreseeable future, but also Thailand and Korea, including risk of deviations from expectations regarding timing, size of orders from customers in these countries; changing industry market trends, reduced demand for services and products, the tiny development of new services and products and their adoption by the market, increased competition in the industry and price reductions as well as due to other risks identified in the company's filings with the SEC. Please note that the safe harbor statement in today's press release also covers the contents of this conference call.

謹此提醒投資者，這些前瞻性陳述受風險和不確定因素的影響，可能導致實際結果與預期結果有重大差異，這些風險和不確定因素包括：總體經濟狀況的影響；Camtek 預期業務很大一部分集中在某些國家（尤其是中國，Camtek預計在可預見的未來，中國將為其帶來很大一部分收入）以及泰國和韓國；這些國家客戶訂單的時間和規模可能與預期出現偏差；行業市場趨勢變化、服務和產品需求下降、新服務和產品的開發及市場採用率低、行業競爭加劇和價格下降；以及公司向美國證券交易委員會 (SEC) 提交的文件中確認的其他風險。請注意，今日新聞稿中的安全港聲明也涵蓋了本次電話會議的內容。

In addition, during this call, certain non-GAAP financial measures will be discussed. These are used by management to make strategic decisions, forecast future results and evaluate the company's current performance. Management believes that the presentation of non-GAAP financial measures are useful to investors' understanding and assessment of the company's ongoing core operations and prospects for the future. A full reconciliation of non-GAAP to GAAP financial measures are included in today's earnings release.

此外，本次電話會議也將討論一些非公認會計準則 (non-GAAP) 財務指標。管理層將使用這些指標來制定策略決策、預測未來績效並評估公司當前業績。管理層認為，非公認會計準則 (non-GAAP) 財務指標的呈現有助於投資者了解和評估公司持續的核心業務和未來前景。今天的收益報告中將包含非公認會計準則 (non-GAAP) 和公認會計準則 (GAAP) 財務指標的完整對照表。

And with that, I'd now like to hand the call over to Rafi, Camtek's CEO. Rafi, please go ahead.

現在，我想把發言權交給 Camtek 執行長拉菲。請拉菲發言。

Thanks, Kenny. Camtek ended another quarter of continued growth. Second quarter revenues were $79.6 million. Gross margin was 51% and 13% operating margin. We have a diversified customer base. This quarter, we sold to over 40 different customers. Advanced interconnect packaging accounted for more than 50% of our revenue, and continued to be our largest segment with its reduced integration accounting for 20% of this segment.

謝謝，Kenny。 Camtek 又一個季度持續成長。第二季營收為 7,960 萬美元，毛利率為 51%，營業利益率為 13%。我們擁有多元化的客戶群。本季度，我們向 40 多家不同的客戶銷售產品。先進互連封裝業務占我們營收的 50% 以上，並繼續成為我們最大的業務板塊，其低整合度封裝業務佔該板塊的 20%。

We continue to expand our customer base and sold systems to 10 new customers in the first half of this year. Specifically, we are cementing our position in the front-end and compo semi segment and shipping systems to existing and new customers. These 2 segments accounted for 23% of our revenues.

我們持續擴大客戶群，並在今年上半年向10家新客戶銷售了系統。具體而言，我們正在鞏固在前端和半成品組件領域以及運輸系統領域的地位，以服務現有客戶和新客戶。這兩個領域占我們總收入的23%。

CIS was about 10% of our business. This quarter, we see the same trend of strengthening our position in the U.S. and Europe due to major industry investments taking place there. U.S. and Europe accounted for 21% of our sales versus 12% in Q2 of last year.

CIS 約占我們業務的 10%。本季度，由於美國和歐洲的產業投資大幅增加，我們在美國和歐洲的市佔率也呈現相同的增強趨勢。美國和歐洲市場占我們銷售額的 21%，而去年第二季為 12%。

In these days of economic uncertainty, I assume that our investors are interested in hearing what are we estimating for the coming quarters and how we view the semiconductor market.

在經濟不確定的今天，我認為我們的投資者有興趣了解我們對未來幾季的預測以及我們對半導體市場的看法。

We are experiencing a challenging period. On one hand, there are concerns of a slowdown in the semiconductor industry. And on the other hand, we see continued demand for our systems. The macroeconomic environment is not positive, high inflation, rising interest rate, high fuel prices, sharp prices of basic products, all of which lead to a decline in GDP and may lead to a slowdown in the semiconductor industry.

我們正經歷一段充滿挑戰的時期。一方面，人們擔心半導體產業成長放緩。另一方面，我們看到市場對我們系統的需求持續成長。宏觀經濟環境不容樂觀，高通膨、利率上升、燃油價格高企、基本產品價格飆升，所有這些都導致​​GDP下滑，並可能導致半導體產業成長放緩。

There are several reasons for the ongoing demand for our systems. The main driver of our market is a transition to more digital products that heavily use semiconductor devices, such as computing and data storage, automotive in general and the transition to electric cars, wireless communication advancing to 5G, higher use of Internet and more. I believe that there is a consensus among all analysts that all the above will continue to grow.

我們的系統持續受到市場需求的驅動，原因有很多。市場的主要驅動力在於向大量使用半導體裝置的數位產品（例如計算和數據存儲）的轉型，汽車行業的整體發展以及向電動汽車的轉型，無線通信向5G的演進，互聯網使用率的提高等等。我相信所有分析師都一致認為，以上所有因素都將繼續成長。

The wafer manufactured today and in the coming years are much more complex due to new technologies adopted by the industry, leading countries realizing that the semiconductor industry has become a strategic industry and are heavily investing in building new fabs.

由於產業採用的新技術，現在和未來幾年製造的晶圓將變得更加複雜，主要國家意識到半導體產業已經成為戰略性產業，並大力投資建造新的晶圓廠。

In China, China's policy of replacing imports of strategic end products and semiconductor devices for domestic production means a continued expansion of production capacity of semiconductor industry, not necessarily related to a global economic situation.

在中國，中國實施戰略終端產品和半導體裝置國產化替代進口政策，意味著半導體產業產能的持續擴張，與全球經濟情勢並無必然關聯。

To summarize, these 2 opposing forces make long-term focusing much more difficult than in the normal time. Anyway, at this stage, we do not identify a slowdown in the demand for our systems. The production utilization in the industry is high. And total incoming order is also high and the backlog is healthy.

總而言之，這兩股相互對立的力量使得長期聚焦比以往更加困難。無論如何，目前我們並未發現對我們系統的需求出現放緩。產業生產利用率很高。總訂單量也很高，積壓訂單量也很健康。

Moreover, we believe that the field of inspection and the segment in which we operate will be less affected in the event of a slowdown. Our systems are used by customers for inspection and metrology of 100% of patterned wafer. The more the geometry density increases, the higher optical magnification needs to be used. As a result, our customers order more systems. Hence, during the downturn, whereby the number of wafer may decrease, pattern and density speed increases, and therefore, the demand for our systems is likely to be less impacted.

此外，我們相信，即使經濟放緩，檢測領域以及我們所在的細分市場受到的影響也會較小。客戶使用我們的系統對100%的圖案化晶圓進行檢測和計量。幾何密度越高，需要使用的光學放大倍率就越高。因此，我們的客戶訂購了更多的系統。因此，在經濟低迷時期，晶圓數量可能會減少，圖案化和密度速度可能會提高，因此，對我們系統的需求可能受到的影響較小。

Regarding our forecast for the second half. With our strong backlog, we see continued growth into the second half of the year. And our forecast for the third quarter, revenue is expected to be between $81 million to $83 million.

關於我們對下半年的預測。鑑於我們強勁的訂單儲備，我們預計下半年將持續成長。我們預測第三季的營收將在8,100萬美元至8,300萬美元之間。

Let me give you some color on what we see in the second half of this year. The product mix is expected to be similar with advanced interconnect packaging reaching more than 55% of our annual revenues. The U.S. and Europe will continue to grow as a percentage of revenue. At this point, we don't see any potential disruption to our supply chain.

我來簡單介紹一下我們今年下半年的期待。預計產品組合將與上半年類似，先進互連封裝業務將占我們年收入的55%以上。美國和歐洲市場的收入佔比將持續成長。目前，我們認為我們的供應鏈不會出現任何潛在的中斷。

As I have said, we do not see any signs of declining demand for our systems. Moreover, we believe that our markets will continue to grow in the long term, even though there may be a few bumps along the way. However, regarding a possible slowdown in our industry, we are managing our headcount and balance sheet items.

正如我之前所說，我們沒有看到任何系統需求下降的跡象。此外，我們相信，即使過程中可能會遇到一些坎坷，我們的市場仍將長期持續成長。然而，考慮到行業可能出現的放緩，我們正在管理員工數量和資產負債表項目。

We are keeping a very watchful eye on overall expenses and the business situation of our customers. We also believe that the market condition, especially in the capital market, may generate M&A opportunities. We are actively looking for opportunities and ready to use our well-capitalized balance sheet in order to execute M&A transaction that will enhance our long-term growth potential.

我們密切關注整體支出和客戶的業務狀況。我們也相信，市場環境，尤其是資本市場，可能會帶來併購機會。我們正在積極尋找機會，並準備好利用我們充足的資本實力來執行併購交易，以增強我們的長期成長潛力。

That ends my summary. I would like to hand over to Moshe for a more detailed discussion of the financial results. Moshe?

我的總結到此結束。接下來，我想請 Moshe 就財務表現進行更詳細的討論。 Moshe？

Thanks, Rafi. In my financial summary ahead, I will provide the results on a non-GAAP basis. The reconciliation between GAAP results and the non-GAAP results appeared in the table at the end of the press release issued earlier today.

謝謝，拉菲。在接下來的財務摘要中，​​我將提供非公認會計準則 (Non-GAAP) 的績效。 GAAP 業績和非 GAAP 業績之間的對帳表已在今天早些時候發布的新聞稿末尾的表格中列出。

Second quarter revenues came at a record level of $79.6 million, an increase of 18% compared to the second quarter of 2021. The geographic revenue split for the quarter was as follows: Asia accounted for 79% and the rest of the world, 21%.

第二季營收達到創紀錄的 7,960 萬美元，較 2021 年第二季成長 18%。本季地區營收分佈如下：亞洲佔 79%，全球其他地區佔 21%。

Gross profit for the quarter was $40.5 million. The gross margin for the quarter was 50.9% versus 52.1% in the second quarter of last year. This is within the range of our gross margin of our models. And as in previous quarters, the deviation has to do mainly with the product mix and does not represent the trends.

本季毛利為4050萬美元。本季毛利率為50.9%，去年第二季為52.1%。這在我們模型的毛利率範圍內。與前幾季一樣，這種偏差主要與產品組合有關，並不代表趨勢。

Operating expenses in the quarter were $16.7 million, similar to the level in the second quarter of last year and lower than the $18 million reported in the previous quarter. The decrease from the previous quarter is mostly due to sales channel mix.

本季營運費用為1,670萬美元，與去年第二季持平，低於上一季的1,800萬美元。環比下降主要由於銷售通路組合的影響。

Operating profit in the quarter increased to $23.8 million compared to the $18.5 million reported in the second quarter of last year. Operating margin was 29.9% compared to 27.4%. Net income for the second quarter of 2022 was $22.2 million or $0.46 per diluted share. This is compared to a net income of $17.1 million or $0.38 per share in the second quarter of last year. Total diluted number of shares as of the end of Q2 was 48.1 million.

本季營業利潤增至2,380萬美元，而去年第二季為1,850萬美元。營業利益率為29.9%，而去年同期為27.4%。 2022年第二季淨利為2,220萬美元，即每股攤薄收益0.46美元。相較之下，去年第二季淨利為1,710萬美元，即每股攤薄收益0.38美元。截至第二季末，稀釋後總股數為4810萬股。

Turning to some high-level balance sheet and cash flow metrics. Cash and cash equivalents, including short- and long-term deposits, as of June 30, 2022, were $438 million. This compared with $428.3 million at the end of the first quarter.

來看看一些高水準的資產負債表和現金流指標。截至2022年6月30日，現金及現金等價物（包括短期及長期存款）為4.38億美元。相比之下，第一季末為4.283億美元。

We generated $30 million in cash from operations in the quarter. Inventory level went up by $5.9 million over the quarter. This is the result of a strategic decision to support the current demand for our products and to ensure against potential availability issues in key components.

本季度，我們的營運現金流為3000萬美元。庫存水準較上季增加590萬美元。這源自於一項策略決策，旨在滿足當前產品需求，並確保關鍵零件供應充足，避免潛在的供應問題。

Accounts receivables were around the same level as in the previous quarter and were presented approximately 80 days. As Rafi said before, we expect revenue of $81 million to $83 million in the third quarter.

應收帳款與上一季基本持平，帳期約80天。正如拉菲之前所說，我們預計第三季營收將達到8,100萬至8,300萬美元。

And with that, Rafi, Ramy and myself will be open to take your questions. Kenny?

接下來，拉菲、拉米和我願意回答大家的問題。肯尼？

(Operator Instructions) Our first question will be from Charles Shi of Needham.

（操作員指示）我們的第一個問題來自 Needham 的 Charles Shi。

Just want to make sure, can you hear me, okay?

只是想確認一下，你聽得到我說話嗎，好嗎？

Yes, we can.

是的，我們可以。

Rafi, Ramy and Moshe, maybe on my first question, going back to 2022 growth in certain geographies. Looks like U.S. and Europe seems to be contributing to demand of the incremental growth this year.

Rafi、Ramy 和 Moshe，關於我的第一個問題，我想回顧一下2022年某些地區的成長。看起來美國和歐洲似乎對今年的增量需求做出了貢獻。

I want to ask you about China. From other companies, we follow they are saying , they think -- to point to some, sort of a weakness of China spending, especially in the packaging space. I understand you have your unique growth drivers like complexity growth, strategic investments.

我想問您關於中國的問題。我們了解到其他公司的情況，他們說，他們認為——指出中國市場支出存在一些弱點，尤其是在包裝領域。我知道你們有獨特的成長動力，例如複雜性成長和策略投資。

But I want to ask you, compared to last year, are you seeing some sort of slowdown in China? And going into '23, if they were a slowdown in '22, so do you see it's more like going -- I mean there is some stronger growth next year or flat? Or what do you think or could that deteriorate in '23?

但我想問您，與去年相比，您是否看到中國經濟出現了某種放緩？如果2022年經濟放緩，那麼進入2023年，您認為明年經濟會更強勁成長還是持平？或是您認為2023年經濟會惡化嗎？

Ramy, do you want to comment on that, please?

拉米，你想對此發表評論嗎？

Charles, we do not see any weakness in China compared to last year. We see investments all around and are very much like we are talking about the split. Over 50% of our business goes to advanced packaging, and the investments in China and this area are ongoing.

Charles，與去年相比，我們在中國市場沒有看到任何疲軟跡象。我們看到了各方面的投資，就像我們談論的分拆一樣。我們超過50%的業務都用於先進封裝，並且在中國及該領域的投資仍在持續進行中。

Looking forward, as we said, we do not see any weakness moving forward. And specifically in China, it seems as if the investments are ongoing, the utilization, at least what we can see to our equipment is high, and we do not see any change moving forward.

展望未來，正如我們所說，我們認為未來不會有任何疲軟跡象。尤其是在中國，投資似乎仍在持續，設備利用率（至少我們目前看到的）很高，我們認為未來不會有任何變化。

Got it. Got it. I mean maybe just a quick follow-up to that. I understand you're not seeing weakness, it probably means the absolute dollar base is probably still very strong. But in terms of growth rate of your business in China, is any deceleration or acceleration this year or next year? What's your view there in terms of the growth rate?

明白了。明白了。我的意思是，也許我只是想快速跟進這個問題。我知道您沒有看到疲軟，這可能意味著絕對美元基礎可能仍然非常強勁。但就您在中國的業務成長率而言，今年或明年是減速還是加速？您對那裡的成長率有何看法？

Well, it's hard for me at this stage to talk about the growth rate. It's too early in the game. What I can tell you from what I see on the backlog and on the pipeline looking into the first and second quarter, we see that the investment in the third and fourth quarter is very important. And even looking at what I see and start to get, comparing next year, we definitely see the ongoing investments across the board in all the different applications. So we definitely do not see any slowdown.

嗯，目前我很難談論成長率。現在談論這個話題還為時過早。從我觀察到的積壓訂單和第一季和第二季的在研產品來看，第三季和第四季的投資非常重要。即使從我目前看到的情況來看，與明年相比，我們確實看到了各種應用領域持續的投資。所以我們絕對沒有看到任何放緩。

Got it. My second question is around memory. That seems to be another weakness, at least that's something quite identifiable, if we only look at the headlines. I understand probably earlier this year, you have a good amount of orders and shipment into DRAM application.

明白了。我的第二個問題是關於記憶體的。這似乎是另一個弱點，至少如果我們只看新聞標題的話，這是很容易辨認的。我了解到，今年早些時候，你們在DRAM應用程式方面獲得了大量訂單和出貨。

I understand historically, this is a kind of a slightly lumpy side of your business. What do you see for that part of your business? I know it's probably not as a big contributor as of today. But do you see slightly down to going from here maybe into next year? Or do you think the rest of the business still ask that, any of the weakness coming from members?

我理解，從歷史上看，這是你們業務中一個略顯不穩定的面向。您覺得這部分業務怎麼樣？我知道目前這部分業務的貢獻可能還不算很大。但您覺得從現在到明年，這部分業務的貢獻會不會稍微下降？還是您認為其他業務仍會面臨這個問題，會不會是會員帶來的疲軟？

Yes. So if I look at the growth driver, the main growth driver for our business in the DRAM space, it's primarily the HBM that is ramping and the high-performance computing segment is very healthy. I think the server market is going to show a down growth of 17% this year. And that's exactly the area where these HBM components are going into.

是的。所以，如果我看一下成長動力，也就是我們在 DRAM 領域業務的主要成長動力，那主要是 HBM 的強勁成長，而且高效能運算領域也非常健康。我認為伺服器市場今年的成長率將下降 17%。而這正是 HBM 組件將要進入的領域。

So from that point of view, this is a growth area, and I expect this to continue into next year. And just to give you a feel on the number, it's about 5% of our revenues this year. So it's not a huge number, but it's not a negligible number. And definitely, that's an area with a high deliver continue to grow will be into '23.

所以從這個角度來看，這是一個成長領域，我預計這種成長將持續到明年。簡單來說，它約占我們今年收入的5%。雖然不算很大，但也不容小覷。毫無疑問，這是一個高交付率的領域，並將持續成長到2023年。

Maybe the last question. I'm going to ask you probably your strength in the front-end space. Obviously, we started from a relatively low base a few years ago, and it has been growing at least in line with your very strong product line growth.

也許是最後一個問題。我想問一下您在前端領域的優勢。顯然，幾年前我們的起步相對較低，但其成長速度至少與您非常強勁的產品線成長速度一致。

What is the outlook there? Do you see any additional incremental opportunities there for you to either gain more shares in the branded space or new applications owing more slots?

那裡的前景如何？您是否看到了額外的增量機會，讓您在品牌廣告領域獲得更多份額，或在新應用領域獲得更多份額？

Okay. So definitely, the front end is one of the areas that we see potential growth moving to next year. And I think I will couple it together with the compound semiconductors.

好的。前端無疑是我們明年有望成長的領域之一。我想把它和化合物半導體放在一起討論。

So in this area, I think, first of all, we are gaining some share. I think the other area that we are seeing incremental business is to a number of new applications. We are starting to take more and more new steps that we've not taken. We do not believe our equipment was not used for, in previous years. So definitely, that's an area that we continue to grow along, and I expect this to become more and more significant in the forthcoming years.

所以在這個領域，我認為首先，我們的市佔率正在成長。另一個我們看到業務成長的領域是一些新的應用。我們開始採取越來越多以前從未採取過的新措施。我們相信，我們的設備在過去幾年從未被使用過。所以，毫無疑問，這是我們持續發展的領域，我預計在未來幾年，這個領域將變得越來越重要。

Our next question now will be Tom O'Malley from Barclays.

我們現在的下一個問題是來自巴克萊銀行的湯姆奧馬利 (Tom O'Malley)。

I just wanted to look into the June quarter from a segment perspective a little more closely. You gave a pie chart at the beginning of your presentation that showed compound semi and front-end combined. Could you break out for us what the percentage of revenue was for both of those?

我只是想從細分市場的角度更深入地分析一下6月份季度的情況。您在演示開始時提供了一個圓餅圖，顯示了複合半導體和前端業務的合併。您能否為我們詳細解釋一下這兩項業務的收入佔比是多少？

I think last quarter, you said compound semi was 19% and front-end was like 23%, or at least you had to bucket it as other. Can you just break out what the exposure was between compound semi, front-end and then the CMOS image for this quarter, please?

我記得上個季度您說複合半導體佔19%，前端佔23%，或至少您得把它歸類到其他類別。您能具體說一下本季複合半導體、前端和CMOS影像的曝光情況嗎？

So I would say, look, first of all, this will vary from quarter-to-quarter. But overall, I think the number for these 2 together is about 25%. It will be about half and half, and it depends per quarter the product needs from customers.

所以我想說，首先，每個季度都會有所不同。但總的來說，我認為這兩個數字加起來大約是25%。大約各佔一半，這取決於每季客戶對產品的需求。

This quarter, specifically, the compound was a little higher than the front-end portion. And definitely, moving forward, this is more or less the portion of the entire business that I see this business moving on.

具體來說，本季的複合成長率略高於前端部分。而且，毫無疑問，展望未來，這或多或少是我認為整個業務中持續成長的部分。

Helpful. And then you guys talked about an environment which you're not seeing a demand profile change. You talked about potentially some lumpiness, but really, you're just not seeing any kind of change from customers at this point.

很有幫助。然後你們談到了目前沒有看到需求狀況改變的環境。你們提到了可能會有一些波動，但實際上，目前你們還沒有看到客戶有任何變化。

Could you just talk about what you guys do in terms of conversations with your customers to kind of keep a check on both their demand profile and also just to make sure that they are weakening? Just any kind of conversations or how you guys check in with those customers so you would see weakness coming potentially?

您能否談談您們是如何與客戶溝通的？一方面，你們密切注意客戶的需求狀況，另一方面，確保客戶的需求正在減弱？你們是如何與這些客戶溝通的？這樣你們就能預見潛在的需求減弱趨勢嗎？

So, in general, Tom, what we do, we have a biweekly call every 2 weeks. We have a session with most of the main customers checking, understanding on the applications and the issues they are seeing, talking on the forecast.

所以，湯姆，總的來說，我們每兩週會召開一次電話會議。我們會與大多數主要客戶進行溝通，了解他們的應用情況和遇到的問題，並討論預測。

We take the entire inputs from our customers and received with our sales team and look forward and see exactly what is the forecast that they see in the next day. Usually, we try to look 4 quarters ahead. Of course, the good visibility is 2 quarters ahead.

我們收集來自客戶以及銷售團隊的所有信息，並預測他們第二天的預測結果。通常，我們會嘗試預測未來4個季度的情況。當然，預測未來2季的情況更佳。

Beyond that, it's more for discussion than explaining. So at least from all the accumulated discussions that we had over the last, the latest was yesterday, we definitely disrupting saving the opening statement. We do not see any weakness at this stage.

除此之外，這更多的是為了討論，而不是解釋。所以至少從我們過去累積的所有討論來看，最近一次是在昨天，我們確實幹擾了保存開場白。目前我們沒有發現任何弱點。

The next question will be from Craig Ellis of B. Riley.

下一個問題來自 B. Riley 的 Craig Ellis。

Congratulations on the performance. I wanted to start off just by following up on some of the prepared remarks that commented on the healthy backlog. Is it possible that you can quantify where backlog is? And as you look at the mix of backlog, give us some further color on what you specifically see for orders that would relate to 2023 delivery? And if you can provide any color on that, that would be helpful as well.

恭喜您的出色表現。首先，我想跟進一下之前提到的關於健康積壓訂單的一些準備發言。能否量化積壓訂單的情況？在您查看積壓訂單組成時，能否進一步說明您認為與2023年交付相關的訂單的具體情況？如果您能提供一些細節，那也將非常有幫助。

So what I can tell you on the color of the backlog, and of course, I want to be very careful here, so let's talk about, first of all, the third and the fourth quarter is where the visibility is much harder.

因此，我可以告訴您積壓的顏色，當然，我在這裡要非常小心，所以讓我們先談談，第三季和第四季的可見度要困難得多。

So I think that if I look at the entire business, no doubt the advanced packaging portion is very strong and will be very strong throughout this year. And we will probably reach very close to 60% of our business will be in the advanced packaging.

所以我認為，如果縱觀整個業務，先進封裝業務無疑會非常強勁，而且今年全年都會保持強勁勢頭。我們業務的比重很可能會接近60%，而先進封裝業務將佔據我們業務的比重。

No doubt, this segment is very strong, not just in a specific area, but across the group. The compound and front-end business continues to be healthy and will be in the range of about 25%, very similar to what we have seen this quarter.

毫無疑問，這個部門非常強勁，不僅在特定領域，而是整個集團。複合和前端業務繼續保持健康，增幅將在25%左右，與我們本季的情況非常相似。

The same sensors will be a little weaker this year. I expect it will be just a little bit less than 10%, which is our average revenues for this segment. That's more or less the color from -- almost this point of view, and I think we said it in the opening statement, definitely, we see the U.S. and Europe getting stronger. It's 21%. It will be even a little bit higher moving forward. Definitely, this is good news for us from a diversification point of view.

今年同樣的感測器業務會略弱一些。我預計會略低於10%，也就是我們這個部門的平均收入。這差不多就是從這個角度來看的趨勢。我想我們在開場白裡也提到過，我們肯定會看到美國和歐洲市場越來越強勁。現在佔21%。未來還會更高。從業務多元化的角度來看，這對我們來說無疑是個好消息。

One point that we mentioned, it is also can share some color on the business that we are seeing new customers. And in the first half of this year, we had over 10 customers, which is relatively high. So that's also a very good sign of more new people still investing in the equipment, opening new places. So that's definitely a good sign.

我們之前提到的一點是，我們業務上出現了一些新客戶，這也可以分享一些數據。今年上半年，我們有超過10位客戶，這個數字相對較高。這也是一個非常好的跡象，顯示有更多新客戶仍在投資設備，開設新店。這絕對是個好兆頭。

Moshe, you want to add anything? No? Craig, anything else?

Moshe，你還有什麼要補充的嗎？沒有？ Craig，還有什麼嗎？

That was great color, Ramy. I wanted to follow up on the comment you made on CMOS Image Sensors. So the business is still active this year, but not as strong in the mix standpoint is 2021. If you look at 2023, what's your expectation or the sense mandate production build shape up? And what does that mean for potential mix?

拉米，你講得真棒。我想跟進一下你關於CMOS影像感測器的評論。所以，今年的業務仍然活躍，但從產品組合的角度來看，不如2021年那麼強勁。展望2023年，你對產量成長的預期是什麼？或者說，你認為產量成長會如何？這對潛在的產品組合意味著什麼？

So first of all, in the backlog that I know, some of the major players are planning to invest, and we are talking with people also about the investments even in '23. So definitely, we will see investments in the same center.

首先，據我所知，目前已有不少大型企業計畫投資，我們也正在與相關人士洽談2023年的投資事宜。因此，我們肯定會看到對同一中心的投資。

I don't think there will be above the 10%, the average 10%. I think that we stay in the range of 10% -- around 10%. I don't expect anything beyond that.

我認為成長率不會超過10%，也就是平均10%。我認為成長率會維持在10%左右。我預計不會超過這個數字。

Now taking account that the smartphone is relatively weak. So this effect is segmented. But even though, we're still seeing a significant business.

考慮到智慧型手機市場相對較弱，這種影響是分化的。但即便如此，我們仍看到其業務規模龐大。

Got it. And then, Moshe, I don't want to ignore you on the call. I wanted to follow up on gross margin and OpEx as it relates to the third quarter. So the guidance that you identified caused some movement for both those line items makes total sense. I get the mix gross margin dynamics and the channel mix OpEx-related dynamics.

明白了。然後，Moshe，我不想在電話裡忽略你。我想跟進一下第三季的毛利率和營運支出。所以，你提到的業績指引導致這兩個項目都出現了一些變動，這完全合理。我了解了產品組合毛利率的動態，以及與通路組合營運支出相關的動態。

The question is for the third quarter. Given that we would expect to see fairly similar and demand composure relative to 2Q, should we expect flattish trends there? Or are there any one-off items that would move either gross margin or OpEx materially north or south?

問題在於第三季。鑑於我們預期第三季的業績與第二季基本相似且需求保持穩定，我們是否應該預期第三季的趨勢將趨於穩定？或者是否存在一些一次性項目，導致毛利率或營運成本大幅上升或下降？

Thank you so much for not ignoring me, Craig. Appreciate it. I think from a mix perspective, we are going to see pretty much the same mix in the second half of the year as well. So from a gross margin perspective, I expect pretty much the same level, the same margin profile.

非常感謝你沒有忽視我，Craig。非常感謝。我認為從產品組合的角度來看，下半年我們也將看到幾乎相同的組合。因此，從毛利率的角度來看，我預計毛利率水準和利潤率狀況將基本保持不變。

Operating expenses are expected to go up a little bit slightly. It mainly has to do with the R&D investments and some with sales channel mix. Not something dramatically, so I basically expect a healthy operating profitability next quarter as well.

預計營運費用會略有增加。這主要與研發投入以及部分銷售通路組合有關。增幅不會太大，因此我預計下個季度的營運獲利能力也會保持健康。

That's great. And then I'll conclude with a more strategic question for Rafi. Rafi, one of the things that was mentioned is the potential for M&A. And clearly, the company has an exceptionally robust cash balance.

太好了。最後，我想問拉菲一個更具策略性的問題。拉菲，剛才提到的一件事就是併購的潛力。顯然，公司的現金餘額非常充裕。

The question is this, as you look at potential areas of strategic interest, whether it's technology or customer, geographic, et cetera, can you just give us some color on things that be interesting complements to the Camtek business as we think about where M&A can create value for the business and for shareholders?

問題是，當您考慮潛在的策略利益領域時，無論是技術還是客戶、地理位置等等，當我們思考併購可以在哪些方面為企業和股東創造價值時，您能否給我們一些對 Camtek 業務有趣的補充？

Yes. Of course, if we're talking about having more value, so we have to look for a company that has a good synergy to Camtek in terms of technology, in terms of expanding our markets, et cetera. So this is our first priority, to look for companies that can expand our portfolio and -- but we still have some similarity in technologies, so we can enjoy each other of sharing technology and it's help to both sides.

是的。當然，如果我們要創造更多價值，就必須尋找一家在技術、市場拓展等方面與Camtek具有良好協同效應的公司。因此，尋找能夠擴展我們產品組合的公司是我們的首要任務——但我們在技術上仍然有一些相似之處，因此我們可以共享技術，這對雙方都有幫助。

Another issue is also if we take a company, let's say, mid -- small to midsized, most of them cannot -- I would say the sales channel are not so developed as Camtek did in the last 10 years. So definitely, we can accelerate revenue for a company with the potential, a good technology, a good product, but missing a good search channel.

另一個問題是，如果我們以一家中小型公司為例，大多數公司都無法做到這一點——我想說，他們的銷售管道不像Camtek在過去10年那麼發達。所以，對於一家有潛力、有好技術、有好產品，但缺乏良好搜尋管道的公司來說，我們絕對可以加速其營收成長。

Definitely, we can promote the product much quicker. So this is roughly the portfolio that we are looking for. And this is our first priority. But sometime we can -- we get information about the company not exactly meeting this profile, but still, we find other advantages. So definitely, we can consider it.

當然，我們可以更快地推廣產品。所以，這大致上就是我們正在尋找的產品組合。這是我們的首要任務。但有時，我們可能會收到一些訊息，表明某家公司並不完全符合我們的要求，但我們仍然會發現其他優勢。所以我們一定會考慮。

Our next question is from Denis Pyatchanin from Stifel.

我們的下一個問題來自 Stifel 的 Denis Pyatchanin。

Can you hear me?

你聽得到我嗎？

Yes, hi there, we can hear you.

是的，您好，我們聽得到您的聲音。

This is Denis on for Brian Chin. I have a question related to weakness in smart sell-through and production. Do you get the sense there is any digestion of recent wafer-level packaging capacity expansion occurring in the back half of the year, like not necessarily your machines but also other process equipment? And why do you believe your inspection systems' may be less affected?

我是 Denis，Brian Chin 的節目主持人。我有一個關於智慧銷售和生產方面疲軟的問題。您是否覺得下半年晶圓級封裝產能擴張帶來的負面影響正在被消化，這不僅體現在你們的機器上，還體現在其它製程設備上？為什麼您認為您們的檢測系統可能受影響較小？

Okay. Rafi, you want to take it? Or should I take it? Yes. Okay. So let me start, first of all, with the digestion of the content.

好的。拉菲，你想接嗎？還是我接？好的。好的。那麼，首先，我先來消化一下內容。

So first of all, we are more exposed to our machines. So it's very hard for me to speak about other equipment. But specifically, we still do not see a digestion. In fact, with the equipment that we have been selling and highly utilized by our customers, this is something that we are checking continuously.

首先，我們對機器的了解更多了。所以我很難談論其他設備的情況。但具體來說，我們仍然沒有看到設備被消化。事實上，對於我們一直在銷售且客戶使用率很高的設備，我們正在持續檢查這一點。

The machines are -- all the time, they are immediately installed and used and going into production. So from that point of view, I still see or I still -- what we are experiencing the digital equipment from our customers.

這些機器總是立即安裝、使用並投入生產。因此，從這個角度來看，我仍然看到，或者說，我仍然體驗著來自客戶的數位化設備。

Now while we are less sensitive, and there are a few reasons for that. In the industry that we are serving, the wafers are becoming more and more complex. And as a result, they are used more heavily, they are used in more steps. And a lot of the times, they also require hydrification, which means that from a number of issues that are used for those steps is higher.

雖然我們現在不那麼敏感了，但這有幾個原因。在我們服務的行業中，晶圓變得越來越複雜。因此，它們的使用頻率更高，步驟也更多。很多時候，它們還需要水化，這意味著這些步驟的複雜性更高。

So I would say this is just briefly one of the main reasons why our machines are needed all the time and are used more and more in compared to other equipment. Did that answer your question?

所以我想簡單說一下，為什麼我們的機器一直受到人們的青睞，而且相比其他設備使用率越來越高，這只是其中一個主要原因。這回答了你的問題嗎？

I want to add one more comment on that. We have to take in consideration that there are today new packaging technology enter to the market. And then we find ourselves doing more steps compared with what we used to do in the past.

我想補充一點。我們必須考慮到如今市場上不斷湧現的新封裝技術。與過去相比，我們採取了更多措施。

So any new technology adopted by customer, it takes some time until the yield is high and everything is okay. So by that time, they need a lot of inspection. Not randomly, they do, I would say, almost 100% inspection. And they try to make many steps to help them to stabilize the process and getting that achieved. So all this together, it definitely give us some, I would say, benefit as an inspection company.

因此，客戶採用的任何新技術都需要一段時間才能達到高良率，而且一切正常。因此，到那時，他們需要進行大量的檢測。他們不是隨機檢測，但幾乎100%的檢測。他們會採取許多措施來穩定工藝，最終實現這一目標。所有這些加在一起，作為一家檢測公司，我們無疑受益匪淺。

Great. And then my next question is, how long do you think it is before heterogeneous integration becomes something like 15% to 20% of revenue? Do you see it reaching that level over the next several years?

太好了。那麼我的下一個問題是，您認為異質整合多久才能達到收入的15%到20%？您認為它會在未來幾年內達到這個水平嗎？

First of all, in our opening statement, we said that 20% of the 50% of advantaged packaging today's for heterogenous integration, which is roughly 10% of our revenues for the quarter. But definitely, heterogenous integration is something that will continue to grow. And I expect it to be, in foreseeable future, taking these kind of numbers of our revenues.

首先，我們在開場白中提到，目前50%的優勢封裝技術中，有20%來自異質集成，這大約占我們本季收入的10%。但毫無疑問，異質整合將會持續成長。我預計，在可預見的未來，它將佔據我們收入的10%。

No doubt, the high-performance computing, is the, I would say, the main driver to heterogenous integration. And as I mentioned before, the server market is growing at 17% this year, and these are the range of growth that is expected in the foreseeable future. Definitely, this segment is going to be very healthy.

毫無疑問，我認為高效能運算是異質整合的主要驅動力。正如我之前提到的，伺服器市場今年的成長率為17%，這也是可預見的未來預期的成長範圍。毫無疑問，這個領域將會非常健康。

And then for my final question, so you've seen a recent shift in your geographic mix with the EU and the U.S. growing as a part of that. Can you speak to kind of which end markets within those geographies are driving the shift?

我的最後一個問題是，您最近看到公司地域分佈發生了變化，歐盟和美國市場也在成長。您能否談談這些地區中哪些終端市場推動了這種變化？

Well, it's -- we want to be very careful because we are very sensitive about customers' need. But I think that I will be trying to be very broad, I think it's very clear.

嗯，我們非常謹慎，因為我們對客戶的需求非常敏感。但我認為我會盡量表達得更寬泛，我想表達得更清晰。

First of all, in Europe, it's very automotive-related. Business there is highly effective from this industry. I would say in the U.S., the business is more diversified, and it would be from leading-edge technologies through our ways and some remotely. I think all across the board, we see customers that are using for these applications or machines.

首先，在歐洲，汽車產業與我們的連結非常緊密。那裡的業務非常有效率。我想說，在美國，我們的業務更加多元化，既包括透過我們的方式獲得尖端技術，也包括一些遠端技術。我認為，我們看到客戶正在使用這些應用程式或機器。

Our next question is from Raman (inaudible). Are you there?

下一個問題來自拉曼（聽不清楚）。你在嗎？

Okay's. Okay. We'll poll again for questions. If anybody has a question, please raise your hand. If not, we will move to the final part -- we'll give him another moment. Raman you are unmuted, so you may ask your question.

好的。好的。我們會再次進行提問。如果有人有問題，請舉手。如果沒有，我們將進入最後一個環節——我們會再給他一點時間。 Raman，您已解除靜音，所以您可以提問了。

Our next question is from Alon (inaudible).

下一個問題來自 Alon（聽不清楚）。

Can you hear me?

你聽得到我嗎？

Yes, we can hear you.

是的，我們能聽到你的聲音。

Two questions, please. One, you talked about the strategic decision to impact inventory. Could you speak about the levels that you see going forward? And second, you talked about new customers. Any original bias for those new customers?

請問兩個問題。第一，您談到了影響庫存的策略決策。您能談談您預計的未來庫存水準嗎？第二，您談到了新客戶。您對這些新客戶最初有什麼偏好嗎？

Okay. I'll start with the inventory, and then Ramy will address the other part of your question. With respect to inventory, we have raised the inventory in the last few quarters in order to make sure that we have enough inventory for to address the demand.

好的。我先從庫存開始，然後Ramy會回答你問題的另一部分。關於庫存，我們在過去幾季增加了庫存，以確保有足夠的庫存來滿足需求。

I think that what we are going to see start some stabilization in the next few quarters. So we don't intend to continue to increase the inventory levels, but it could vary $5 million plus minus in the next couple of quarters ahead.

我認為未來幾季我們將會看到一些穩定下來。因此，我們不打算繼續增加庫存水平，但未來幾季庫存水準可能會上下波動500萬美元。

Alon, I missed your question on the new quest of the last word. You were not clear. So what did you want to understand about the new customers?

Alon，我錯過了你關於最後一句新任務的問題。你沒有說清楚。那麼，你想了解新客戶的狀況嗎？

Of which regions are they coming?

他們來自哪些地區？

They come from all around the geography, not necessarily one country. They come from Asia, Europe -- and I don't recall if we had any in the U.S., but definitely it's not just related to one.

他們來自世界各地，不一定只來自一個國家。他們來自亞洲、歐洲——我不記得美國有沒有，但肯定不只一個國家。

Okay. I think Raman is unavailable. So I think that will end our Q&A session. Rafi, do you have any closing remarks?

好的。我想拉曼現在沒空。所以我們的問答環節就到此結束了。拉菲，你最後還有什麼要說的嗎？

Okay. I would like to thank you all for your continued interest in our business. Again, I would like to thank all of our employees and my management team for the tremendous performance, and we look forward to continuing it.

好的。感謝大家對我們業務的持續關注。再次感謝我們所有員工和管理團隊的出色表現，我們期待繼續保持下去。

For our investor, I thank you for long-term support. I look forward to talking with you again next quarter. Thank you, and goodbye.

感謝我們的投資者長期以來的支持。期待下個季度再次與您溝通。謝謝，再見。

Thank you. That ends our conference call. You may all disconnect.

謝謝。我們的電話會議到此結束。各位可以掛斷電話了。

Goodbye.

再見。