(CAMT) 2023 Q3 法說會逐字稿

Hello, everyone, and good morning. Hosting today's call is Rafi Amit, Camtek's Chief Executive Officer; Ramy Langer, Chief Operating Officer; and Moshe Eisenberg, Chief Financial Officer. Before we start, I would like to note that certain statements made on this call constitute forward-looking statements within the meaning of the Securities Act of 1933 as amended, and the Securities Exchange Act of 1934 as amended and the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

大家好，早安。今天的電話會議由 Camtek 執行長 Rafi Amit 主持。拉米·蘭格，營運長；和財務長摩西·艾森伯格。在我們開始之前，我想指出，本次電話會議中所做的某些陳述構成了1933 年《證券法》修正案、《1934 年證券交易法》修正案以及《私人證券法》安全港條款含義內的前瞻性陳述。1995 年 證券訴訟改革法案。

Such statements may use terminologies such as believes, expects, will, may, should, anticipates, plans or similar expressions to identify forward-looking statements. Such statements reflect only current beliefs, expectations and assumptions of Camtek. However, actual results performance or the achievements of Camtek may differ materially as they are subject to certain risks and uncertainties. Such risks and uncertainties include, but are not limited to, those that are described in Camtek's most recent annual report on Form 20-F and as may be supplemented from time to time in Camtek's other filings with the SEC, including today's earlier filing of the earnings PR, all of which are expressly incorporated herein by reference.

此類陳述可能使用相信、期望、將、可能、應該、預期、計劃或類似表達等術語來識別前瞻性陳述。此類聲明僅反映 Camtek 當前的信念、期望和假設。然而，Camtek 的實際表現或成就可能存在重大差異，因為它們受到某些風險和不確定性的影響。此類風險和不確定性包括但不限於Camtek 最近的20-F 表格年度報告中所述的風險和不確定性，以及Camtek 向SEC 提交的其他文件中可能不時補充的風險和不確定性，包括今天早些時候提交的收入公關，所有這些均通過引用明確併入本文。

Camtek undertakes no obligation to update any such forward-looking statements unless required by law. Camtek public filings are available on the Securities and Exchange Commission's website at www.sec.gov and may also be obtained from Camtek's website at www.camtek.com. Also on today's call, we will include certain non-GAAP numbers. For a reconciliation between the GAAP and non-GAAP results, please see the table attached in today's press release, which is also posted in the Investor Relations section of Camtek's website. So with us today, we have Moshe Eisenberg, CFO, Rafi Amit, CEO; and Ramy Langer, COO.

除非法律要求，Camtek 不承擔更新任何此類前瞻性聲明的義務。 Camtek 公開文件可在美國證券交易委員會網站 www.sec.gov 上取得，也可從 Camtek 網站 www.camtek.com 取得。此外，在今天的電話會議上，我們還將包括某些非公認會計準則資料。有關 GAAP 和非 GAAP 業績之間的調節表，請參閱今天新聞稿中所附的表格，該表格也發佈在 Camtek 網站的投資者關係部分。今天我們有財務長摩西‧艾森伯格 (Moshe Eisenberg)、執行長拉菲‧阿米特 (Rafi Amit)；和首席營運長拉米·蘭格 (Ramy Langer)。

And I would now like to turn the call over to Rafi Amit. Rafi, you may go ahead.

我現在想將電話轉給拉菲·阿米特。拉菲，你可以繼續了。

Okay. Thanks, Kenny. Good morning or good afternoon, everyone. Camtek closed the third quarter with revenue of $80.5 million. Gross margin came in at 49%, which is a continued improvement over previous quarters, as we indicated earlier this year. Operating margin was 28%. Over 60% of our revenues came from advanced interconnect packaging applications, which with a significant portion coming from HBM and chiplet modules.

好的。謝謝，肯尼。大家早安或下午好。 Camtek 第三季營收為 8,050 萬美元。正如我們今年稍早指出的那樣，毛利率為 49%，比前幾個季度持續改善。營業利益率為 28%。我們超過 60% 的收入來自先進互連封裝應用，其中很大一部分來自 HBM 和小晶片模組。

The remaining 40% is divided between compound semiconductors for power devices, CIS and process control applications. Regarding the war in Israel, I would like to explain how we have managed this situation. About 10% of our employees in Israel are on active reserve duty. The remaining workforce has managed to compensate for their absence. Our facility is quite far from the border, and we have some redundancy in our operations, which is done in 3 different locations. Thus, any risk of interruption is minimized.

剩下的 40% 被分配給用於功率元件、CIS 和製程控制應用的化合物半導體。關於以色列的戰爭，我想解釋一下我們是如何處理這種情況的。我們在以色列的員工約有 10% 處於現役預備役狀態。剩下的勞動力已經設法彌補了他們的缺席。我們的設施距離邊境很遠，我們的營運有一些冗餘，這些冗餘是在 3 個不同的地點完成的。因此，任何中斷的風險都被最小化。

Our delivery to customers has not been affected, and we have not experienced any material or supply shortage. So all in all, the war has not affected our operations or business. On October 31, we completed the process of acquiring FRT from 4 factor, and we have begun the integration of FRT into Camtek. We are in the final integration process of FRT, sales and customer support functions into our global organization. The synergy of our products make this process straightforward. We have also started the integration of the other different organizations functions into Camtek, and we plan to expand the facility in order to support potential growth and implement the Camtek workflow into FRT.

我們向客戶的交付沒有受到影響，我們也沒有遇到任何材料或供應短缺的情況。所以總而言之，戰爭並沒有影響我們的營運或業務。 10月31日，我們完成了從4 Factor收購FRT的流程，並開始將FRT整合到Camtek中。我們正處於將 FRT、銷售和客戶支援職能整合到我們的全球組織中的最後階段。我們產品的協同作用使這個過程變得簡單。我們也開始將其他不同組織的職能整合到 Camtek 中，我們計劃擴展該設施，以支援潛在的成長並將 Camtek 工作流程實施到 FRT 中。

Now I would like to add a few words about the business environment. Since the beginning of third quarter, we have reported orders received of about 150 systems. And since then, we have received additional orders for about 90 systems. The last order we reported yesterday was for 28 tools from Tier 1 customer, for HBM and heterogeneous integration applications. Most of the orders are for installation during 2024. This healthy backlog and ordering pipeline point to a year of growth for Camtek, and we expect a record year in sales in 2024.

下面我想補充一下營商環境。自第三季初以來，我們已報告收到約 150 個系統的訂單。從那時起，我們又收到了約 90 套系統的額外訂單。我們昨天報道的最後一份訂單是來自一級客戶的 28 個工具，用於 HBM 和異質整合應用程式。大部分訂單都是在 2024 年安裝。良好的積壓和訂單管道表明 Camtek 將迎來成長的一年，我們預計 2024 年的銷售額將創歷史新高。

No doubt that our high-performance computing is the bright spot for us. Based on several surveys, the number of chiplets is expected to grow at 35% CAGR in the next 4 years and the HBM at a CAGR of 22%. We have a strong position in this market, so we expect to expand our market share by winning additional inspection and metrology steps together with FRT products. In addition, in some territories, we see demand for other applications that are not related to the high-performance computer, but fueled by mobile phones, server, automotive and other segments.

毫無疑問，我們的高效能運算是我們的亮點。根據多項調查，預計未來 4 年小晶片數量的複合年增長率將達到 35%，HBM 的複合年增長率將達到 22%。我們在這個市場上擁有強大的地位，因此我們希望透過與 FRT 產品一起贏得更多的檢測和計量步驟來擴大我們的市場份額。此外，在某些地區，我們看到對與高效能電腦無關的其他應用程式的需求，但受到行動電話、伺服器、汽車和其他領域的推動。

We are also enjoying healthy demand from OSAT serving multiple applications. We are greatly encouraged by the number of orders we received for HBM and by chiplet modules to be installed in 2024. At the same time, we are aware of the technological changes soon to be adopted by our customers. We are totally prepared with innovative and creative solutions and will start qualification processes at customers. With respect to Q4, we expect continued organic growth. And with the contribution of FRT, our revenue guidance is $87 million to $89 million.

我們也享受到服務多種應用的 OSAT 的健康需求。我們收到的 HBM 訂單數量以及將於 2024 年安裝的小晶片模組讓我們深受鼓舞。同時，我們意識到客戶即將採用的技術變革。我們已做好充分準備，提供創新和創造性的解決方案，並將啟動客戶的資格認證流程。關於第四季度，我們預計將持續有機成長。加上 FRT 的貢獻，我們的收入指引為 8,700 萬至 8,900 萬美元。

And now Moshe will review the financial results. Moshe?

現在，摩西將審查財務業績。摩西？

Thank you, 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 appear in the tables at the end of the press release issued earlier today. Third quarter revenue came in at $80.5 million, a decline of 2% compared with the third quarter of 2022, an increase of 9% for the second quarter of 2023. The geographic revenue split for the quarter was as follows: Asia, 81%; and U.S. and Europe accounted for the rest 19%. Gross profit for the quarter was $39.4 million. The gross margin for the quarter was 49%, similar to the third quarter of last year and an improvement from the second quarter of this year, which was 48%.

謝謝你，拉菲。在接下來的財務摘要中，​​我將提供非公認會計準則基礎上的結果。公認會計準則 (GAAP) 業績與非公認會計準則 (Non-GAAP) 業績之間的調節表出現在今天早些時候發布的新聞稿末尾的表格中。第三季營收為 8,050 萬美元，較 2022 年第三季下降 2%，較 2023 年第二季成長 9%。本季營收地域分佈如下：亞洲，81%；美國和歐洲佔剩下的19%。該季度毛利為 3940 萬美元。該季度的毛利率為49%，與去年第三季相似，較今年第二季的48%有所改善。

As mentioned before, we've been taking measures to improve the gross margin. In the last 2 quarters, we have seen the initial impact, and we expect to see continued gradual improvement in the coming quarters, subject to sales mix. Operating expenses in the quarter were $17.2 million, very similar to the third quarter of last year and to the previous quarter. Operating profit in the quarter was $22.2 million compared to the $23.2 million reported in the third quarter of last year. Operating margin was 27.6% compared to 28.3 million.

如前所述，我們一直在採取措施提高毛利率。在過去的兩個季度中，我們已經看到了初步影響，我們預計未來幾季將繼續逐步改善，具體取決於銷售組合。該季度的營運支出為 1720 萬美元，與去年第三季和上一季非常相似。本季營業利潤為 2,220 萬美元，而去年第三季的營業利潤為 2,320 萬美元。營業利益率為 27.6%，去年同期為 2,830 萬。

Financial income for the quarter was $5.7 million, at a similar level to the previous quarter and much higher than the $2 million reported last year. The increase from last year relates to the significantly higher interest rates on an increased cash balance. Net income for the third quarter of 2023 was $25.2 million or $0.52 per diluted share. This is compared to a net income of $23.3 million or $0.48 per share in the third quarter of last year. Total diluted number of shares as of the end of Q3 was 49 million shares.

該季度的財務收入為 570 萬美元，與上一季持平，遠高於去年報告的 200 萬美元。較去年增加的原因是現金餘額增加導致利率大幅上升。 2023 年第三季淨利為 2,520 萬美元，或攤薄後每股收益 0.52 美元。相比之下，去年第三季的淨利潤為 2,330 萬美元，即每股 0.48 美元。截至第三季末，稀釋後股份總數為 4,900 萬股。

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 September 30, 2023, were $517.1 million. This compared with $506.3 million at the end of the second quarter. I know that in line with the FRT closing in October, our cash balance has decreased by approximately $100 million, which will also affect our interest income. We generated $2.4 million in cash from operations in the quarter. Inventory level was $72.7 million. It went up by $4.4 million over the quarter to support the anticipated sales growth in the coming quarters.

轉向一些高階資產負債表和現金流量指標。截至 2023 年 9 月 30 日，現金和現金等價物，包括短期和長期存款以及有價證券，為 5.171 億美元。相比之下，第二季末的銷售額為 5.063 億美元。我知道，隨著 10 月 FRT 關閉，我們的現金餘額減少了約 1 億美元，這也會影響我們的利息收入。我們本季的營運產生了 240 萬美元的現金。庫存水準為 7,270 萬美元。本季度增加了 440 萬美元，以支持未來幾季的預期銷售成長。

The accounts receivables increased to $91.4 million from $79 million in the previous quarter, primarily due to the increasing revenue and the timing of collections. As Rafi mentioned before, we expect revenue of between $87 million to $89 million in the fourth quarter, which is about 7% increase over the fourth quarter of last year. And that we look forward to a year of growth in 2024. We will provide more color next quarter after we announced our Q4 results.

應收帳款從上一季的 7,900 萬美元增加到 9,140 萬美元，主要是由於收入的增加和收款時間的安排。正如拉菲之前提到的，我們預計第四季營收在 8,700 萬美元至 8,900 萬美元之間，比去年第四季成長約 7%。我們期待 2024 年成長。在公佈第四季業績後，我們將在下個季度提供更多色彩。

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

接下來，拉菲、拉米和我將願意回答你們的問題。肯尼？

(Operator Instructions) Our first question is going to be from Brian Chin from Stifel.

（操作員說明）我們的第一個問題將由來自 Stifel 的 Brian Chin 提出。

Maybe to start, Rafi, of the 240 system bookings since the beginning of 3Q, is the right way to think about this as maybe 80% to 90% of that relates to shipments that will occur next year. And also, I think your book-to-bill was probably at least 2:1 in 3Q. So maybe it won't be quite that high, but do you expect the book-to-bill will still be well above 1 in 4Q?

也許從第三季開始以來的 240 個系統預訂中，Rafi 認為這是正確的思考方式，因為其中可能 80% 到 90% 與明年的發貨有關。而且，我認為第三季你們的訂單出貨比可能至少為 2:1。所以也許不會那麼高，但您預計第四季的訂單出貨比仍將遠高於 1 嗎？

Look, as we mentioned in all the announcement, most of the order we receive are for 2024, okay? And on top of that, I think we don't really discuss any specific we don't ask a specific question about the backlog or about book-to-bill and other type of that. But maybe Moshe can elaborate a little bit about that.

你看，正如我們在所有公告中提到的，我們收到的大部分訂單都是 2024 年的，好嗎？最重要的是，我認為我們並沒有真正討論任何具體問題，我們沒有提出有關積壓或訂單到帳單和其他類型的具體問題。但也許摩西可以對此進行詳細說明。

Moshe, could you add something?

摩西，你能補充一下嗎？

Yes. Indeed, most of the orders, the 240 machines that we have received so far are for deliveries in 2024. I don't have the exact percentage, but most of it is for 2024 deliveries. With respect to book-to-bill, obviously, in Q3, the book-to-bill was much higher than 1. We are still in the middle of the fourth quarter. So it's still early for me to say whether the book-to-bill this quarter will be greater than 1. But my expectation based on orders that we have received so far, plus orders that we have in the pipeline that, indeed, it will be greater than 1.

是的。事實上，我們迄今為止收到的 240 台機器的大部分訂單都是在 2024 年交付的。我沒有確切的百分比，但其中大部分是在 2024 年交付的。就訂單出貨比而言，顯然，在第三季度，訂單出貨比遠高於 1。我們仍處於第四季度中期。因此，我現在說本季的訂單出貨比是否會大於 1 還為時過早。但我的預期是基於我們迄今為止收到的訂單，加上我們正在醞釀的訂單，事實上，它會大於1。

For calendar ‘24, you stated that this should represent a record revenue year for the company. FRT certainly adds to this. Can you give us an idea of the impact to the model, gross margins and expenses from FRT? And also, how do you plan to integrate the technology into new and existing platforms? And does the acquisition also provide favorable customer synergies?

對於日曆 24，您表示這應該代表公司創紀錄的收入年度。 FRT 無疑增加了這一點。您能否向我們介紹 FRT 對模型、毛利率和費用的影響？另外，您計劃如何將該技術整合到新的和現有的平台中？此次收購是否還能帶來有利的客戶綜效？

By the way, regarding the acquisition of FRT, I think that in 2024, when we discuss about to integrate to Camtek, we mainly mean in the operation in sales and customer. We don't have any plan right now to start to integrate models from here to there and to come with some new tools. This is not in our priority. Effort has its own backlog for what they did in the last few years. Camtek also have enough backlog. So we believe that 2024 in terms of R&D integration, let's call it, we are not going to put too much focus, but more on the administration, operation and other aspects of the 2 companies to work together as one. This is regarding the FRT and Camtek.

順便說一句，關於收購FRT，我認為在2024年，當我們討論整合到Camtek時，我們主要指的是銷售和客戶方面的營運。我們現在沒有任何計劃開始從這裡到那裡整合模型並提供一些新工具。這不是我們的首要任務。 Effort 在過去幾年所做的事情也有自己的積壓工作。 Camtek也有足夠的積壓。所以我們認為，到2024年，在研發整合方面，我們不會把太多的重點放在一起，而是更多地放在兩家公司的管理、營運和其他方面，作為一個整體進行合作。這是關於 FRT 和 Camtek 的。

Just to add, you asked about the contribution to the financial model. So I would say the following. We said when we announced the deal that they -- we plan a contribution of around $30 million for FRT next year. And we feel that this is still a good number. For the fourth quarter, their contribution is expected to be pretty much in line with this run rate. And overall, this business is quite profitable, and it's very similar to the profitability metrics of Camtek.

補充一下，您詢問了對財務模型的貢獻。所以我想說以下內容。當我們宣布這項交易時，我們表示，我們計劃明年為 FRT 捐款約 3000 萬美元。我們覺得這仍然是一個不錯的數字。對於第四季度，他們的貢獻預計將與這個運行率基本一致。整體而言，這項業務的獲利能力相當不錯，與 Camtek 的獲利指標非常相似。

And then just to clarify, Moshe, you said 4Q in line with the $30 million run rate? Or is that 1Q? Because I guess, 4Q, you only had it for 3 months.

然後澄清一下，Moshe，你說第四季符合 3000 萬美元的運行率？或者說是1Q？因為我猜，4Q，你只用了 3 個月。

So the 2 out of the 3 months is within the run rate. It's only 2 months included in the fourth quarter, correct.

因此，這 3 個月中有 2 個月在運行率之內。第四季只包含兩個月，是的。

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

我們的下一個問題將來自巴克萊銀行的湯姆·奧馬利。

So I just wanted to just run through Q4 a little bit here. So in the slide like you had on the web this morning, you had 82 to 83 for Q4. So I assume that, that was the organic revenue. And then you're guiding to $88 million, so that would imply a $5.5 million contribution from FRT. Can you just walk through what the exact contributions are in Q4 just because I'm seeing a couple of different numbers here?

所以我只想在這裡簡單介紹一下第四季。因此，在今天早上在網路上發布的幻燈片中，第四季度的結果為 82 比 83。所以我認為這就是有機收入。那麼您的指導金額為 8800 萬美元，因此這意味著 FRT 的捐款為 550 萬美元。你能簡單介紹一下第四季度的具體貢獻嗎？因為我在這裡看到了幾個不同的數字？

I'm not sure what the $82 million to $83 million, where this number comes from, but it may be a typo. As I said, our $87 million to $89 million includes some organic growth from Camtek plus contribution from FRT in a level that is pretty much the run rate of the $30 million that we expect next year. So the correct guidance is 87 to 89 million combined with the FRT contribution.

我不確定 8200 萬美元到 8300 萬美元這個數字是從哪裡來的，但這可能是拼字錯誤。正如我所說，我們的 8700 萬至 8900 萬美元包括 Camtek 的一些有機增長以及 FRT 的貢獻，其水平幾乎與我們預計明年的 3000 萬美元的運行率相當。所以正確的指導是87到8900萬加上FRT貢獻。

So $39 million run rate, you're going to adjust that for the 2 or 3 quarters. That makes sense. Going into the out year, are you expecting an acceleration of that FRT business? Or is that $30 million still what you're sticking with for the contribution from the acquired business for '24?

因此，運行費用為 3900 萬美元，您將在 2 或 3 個季度進行調整。這就說得通了。進入新的一年，您預期 FRT 業務會加速嗎？或者您仍然堅持使用 3000 萬美元作為 24 年收購業務的貢獻？

Well, '24, what we said, and we are staying with this assessment that it will be $30 million for '24. Of course, as we learn the business, we will learn it, but that's the expectation as we go into ’24.

嗯，24 年，正如我們所說，我們堅持這項評估，即 24 年將達到 3000 萬美元。當然，當我們學習業務時，我們會學習它，但這是我們進入 24 小時後的期望。

And then lastly, when you guys look at a bookings year traditionally, I would imagine that just given the amount of orders that you guys have, your visibility is a lot better. When you guys say record revenue for '24, is that record revenue fully backed on existing orders today? With the orders that you have in the book, is that already a record revenue year? Or are you expecting some turns business year-over-year to get you above that record revenue?

最後，當你們以傳統方式看待預訂年度時，我想只要考慮到你們擁有的訂單量，你們的可見度就會好得多。當你們說 24 年創紀錄的收入時，這項創紀錄的收入是否完全依靠今天的現有訂單來支撐？就您帳上的訂單而言，今年的收入是否已經創歷史新高？或者您是否預期業務會逐年出現一些轉變，從而使您的收入超過創紀錄的水平？

So first of all, the record revenue to date is an expectation. The backlog today that we have on hand still does not support the record revenues, but understanding what we have with the pipeline, talking to customers, our expectation is to be for a record year, very similar to what we said a quarter ago.

首先，迄今為止創紀錄的收入是一個預期。今天我們手頭上的積壓仍然無法支持創紀錄的收入，但了解我們的管道情況，與客戶交談，我們的期望是創紀錄的一年，與我們一個季度前所說的非常相似。

Next question will be from Craig Ellis of B. Riley.

下一個問題將由 B. Riley 的 Craig Ellis 提出。

And I also wanted to pass on just the best wishes for operating in a very unusual and war impacted environment and best wishes to the team. So the first question I wanted to ask is around some of the orders that are in hand and some that could come in, there's a lot of attention on both AI-related orders and heterogeneous die and yet there have been parts of the business for industry that had seemed pretty muted this year, whether it's CIS or front end and some other areas.

我還想轉達對在非常不尋常且受戰爭影響的環境中開展工作的最美好的祝愿，以及對團隊的最美好的祝愿。因此，我想問的第一個問題是圍繞一些手頭的訂單和一些可能收到的訂單，人工智慧相關訂單和異質模具都受到了很多關注，但也有一些行業業務今年，無論是CIS 還是前端和其他一些領域，這種趨勢似乎相當平靜。

So one of the things I wanted to better understand is the degree to which the orders for the 240 systems that you have is really more heterogeneous plus AI versus some of the other applications and areas of exposure that the company has. And then the second part of the question is, to what extent do you think some of the areas that have been more muted this year have potential to emerge as areas of strength next year?

因此，我想更了解的一件事是，與公司擁有的其他一些應用程式和暴露領域相比，您所擁有的 240 個系統的訂單實際上更加異質，加上人工智慧。問題的第二部分是，您認為今年較為平靜的一些領域在多大程度上有潛力成為明年的優勢領域？

So first of all, thank you for the best wishes, Greg. Yes, it's indeed a challenging time, but we'll manage to. So when we look at the business, all in all, I look at the $240 million we're looking forward at what is in the backlog. So we are above 60% of our business is for what we call advanced packaging. No doubt the chiplet and the ABMs by itself is about half of it. No doubt, and this is emerging as, I would say, as a relatively new business. We had this business, but from the volume point of view, it was much smaller.

首先，謝謝你的良好祝愿，格雷格。是的，這確實是一個充滿挑戰的時期，但我們會設法做到的。因此，當我們審視業務時，總而言之，我會關注我們預期的 2.4 億美元積壓訂單。所以我們 60% 以上的業務都是我們所說的先進封裝。毫無疑問，chiplet 和 ABM 本身約佔其中的一半。毫無疑問，我想說，這是一項相對較新的業務。我們有這個業務，但是從體積來看，它要小得多。

So indeed, this is an area that will take us to a different level in the business. And this is why really this contribution makes still --give us the expectation for a record dairy next year. Now when we look at the other areas. So on the heterogeneous integration is definitely becoming more and more dominant in the business. We are seeing a lot of business there from OSATs and also from IDMs. That's another portion that is growing in the advanced packaging.

事實上，這個領域將把我們的業務提升到一個不同的水平。這就是為什麼這項貢獻仍然讓我們對明年的乳製品創紀錄的期望。現在，當我們看看其他領域時。所以異質整合在業務上肯定會變得越來越主導。我們在那裡看到了來自 OSAT 和 IDM 的大量業務。這是先進封裝中不斷增長的另一部分。

And in the advanced packaging, we are also seeing the fan-out is still being dominant in this business. So I think that these 3 areas really make today our advanced packaging business. Now the rest of the businesses are there. I think we spoke about healthy backlog from OSATs and that's lots of applications, advanced packaging, CMOS image sensor, some RF. So they are there. The silicon carbide, and I would say the front end, when we look forward for next year, they're above 20% of our business. So I think these businesses are going to be healthy. It's very hard to give the exact expense of what they do, but definitely, that's in areas that we'll continue to see business.

在先進封裝中，我們也看到扇出仍然在該業務中佔據主導地位。所以我認為這三個領域真正造就了我們今天的先進封裝業務。現在其餘的企業都在那裡。我認為我們談到了來自 OSAT 的大量積壓訂單，其中包括大量應用、先進封裝、CMOS 影像感測器和一些 RF。所以他們就在那裡。碳化矽，我想說的是前端，當我們展望明年時，它們將占我們業務的 20% 以上。所以我認為這些業務將會健康發展。很難給出他們所做工作的確切費用，但可以肯定的是，這是我們將繼續看到業務的領域。

What is interesting when you look at the FRT business, the FRT business is really in these areas of the silicon carbide and the advanced packaging. So this really strengthened our position there because we are going to do as a company, more steps on the same processes and will be exposed to new opportunities that were in there for us in the past.

當你觀察 FRT 業務時，有趣的是，FRT 業務實際上是在碳化矽和先進封裝領域。因此，這確實加強了我們在那裡的地位，因為我們將作為一家公司，在相同的流程上採取更多步驟，並將獲得過去為我們提供的新機會。

The second question, maybe more of an operational question, and it's regarding to tool lead time given how significant the recent order activity has been and admittedly, to your point, Rafi, this is vastly for shipment in 2024. But can you just talk about tool lead time shipment times and the company's confidence given how dramatically orders of surge that you can hit end customer shipment windows and capture the order potential.

第二個問題，也許更多的是一個操作問題，考慮到最近的訂單活動有多重要，它與工具交付時間有關，不可否認，拉菲，就您的觀點而言，這很大程度上是為了在2024 年發貨。但是您能談談嗎？考慮到訂單激增的程度，您可以達到最終客戶的發貨窗口並捕獲訂單潛力，從而提高交貨時間和公司的信心。

So I think that Greg, the fact that these orders we are getting today for 2024, give us enough time to really get prepared. And we do not see any issues with our supply chain. It's very solid. We have the inventory in place. We have the manpower in place and to meet the forecast that we are liking at and the surge in the business that we are forecasting. So from that point of view, we are ready. And I think we have enough, I would say, head on time or we are seeing the things in early enough in the game to make sure that we will have all the material and will be prepared to deliver all the machines on time.

所以我認為 Greg，我們今天收到的 2024 年訂單給了我們足夠的時間來真正準備。我們的供應鏈沒有發現任何問題。它非常堅固。我們有庫存。我們擁有適當的人力，可以滿足我們所希望的預測以及我們所預測的業務激增。所以從這個角度來看，我們已經準備好了。我認為我們有足夠的時間，或者我們在遊戲中儘早看到事情，以確保我們擁有所有材料並準備好按時交付所有機器。

Rafi, you and I have talked on numerous calls in the past about the company's M&A aspirations and FRT looks like a really nicely synergistic fit, and it looks very EPS-accretive intermediate and long term. With that deal now closed and working nicely through integration, does that mean M&A is something that will be off the table for a while? Or how do you think about M&A from here with FRT now in the fold?

Rafi，你和我過去曾多次在電話中討論過該公司的併購願望，而 FRT 看起來確實是一個很好的協同配合，而且從中期和長期來看，它看起來非常能增加 EPS。隨著該交易現已完成並透過整合運作良好，這是否意味著併購將在一段時間內被排除在外？或者您如何看待現在 FRT 參與其中的併購？

No, it's not off table when we continue searching for potential. But the same as FRT, this is what we call a perfect synergy, okay? And this is definitely one of our preferable M&A consideration to look for a company that it's easy to integrate that there are probably, I would say, the same environment, the same system, not copy exact, but not something that's totally different for what we are doing or if maybe issue that we do not understand very well the market and the potential. So we continue and we're definitely considering more M&A.

不，當我們繼續尋找潛力時，這並不是不可能的。但和FRT一樣，這就是我們所說的完美協同，好嗎？這絕對是我們在尋找一家易於整合的公司時首選的併購考慮因素之一，我想說的是，可能有相同的環境，相同的系統，不是完全複製，但又不是與我們完全不同的東西。正在做的事情或可能存在的問題是我們不太了解市場和潛力。所以我們會繼續，並且肯定會考慮更多的併購。

Our next question is going to be from Gus Richard of Northland.

我們的下一個問題將來自北國的格斯理查德。

As you ramp, do you foresee any capacity constraints? Or maybe a better way to ask the question is where do you need to focus to make sure you have capacity as demand grows?

隨著您的發展，您是否預見任何容量限制？或者也許更好的提問方式是，您需要專注於哪些方面，以確保您有能力隨著需求的成長而成長？

You are talking about the capacity here to manufacture, Gus?

你是在談論這裡的製造能力嗎，格斯？

Correct, yes. Is it lead times on optics? Is it manpower, floor space, just sort of where would you first run into a capacity constraint?

正確，是的。是光學元件的交貨時間嗎？是人力、佔地面積還是您首先會遇到容量限制的地方？

So first of all, I think we discussed in previous calls. We have today capacity. We've increased our capacity last year. And today, we have enough capacity for roughly $0.5 billion in sales annually. So the clean room, which is the longest time is there and also the manpower training we have enough. So the rest is really planning. And as I said, because we understand more or less what is going to happen next year, we have backlog already for next year. So we have, we're talking to customers, and we understand what we will need to ship. We have already put in orders for what we need from a material point of view, we have enough inventory on hand for the next few months. So we do not foresee any reason not to ship all of the machines in 2024.

首先，我認為我們在之前的電話會議中進行了討論。我們有今天的產能。去年我們增加了產能。如今，我們的產能足以滿足每年約 5 億美元的銷售額。所以潔淨室是存在時間最長的，而且我們有足夠的人力訓練。所以剩下的就是真正的計劃了。正如我所說，因為我們或多或少了解明年會發生什麼，所以我們已經積壓了明年的訂單。因此，我們正在與客戶交談，並且了解我們需要運送什麼。從材料的角度來看，我們已經下了我們需要的訂單，我們手頭上有足夠的庫存供未來幾個月使用。因此，我們預計沒有任何理由不在 2024 年發貨所有機器。

And then I think in your prepared remarks, I think you're starting to see chiplets expand into auto and I think you said mobile as well. And I'm just wondering if you could talk a little bit more about those opportunities and when you might start to see those impact your backlog or your shipments?

然後我認為在您準備好的發言中，我認為您開始看到小晶片擴展到汽車領域，我認為您也提到了移動領域。我只是想知道您是否可以多談談這些機會，以及您什麼時候可能開始看到這些機會影響您的積壓訂單或發貨量？

No, no. I think here in our remarks, what we said that there are other opportunities for business that is not related to chiplets and HBMs, we see opportunities there as well. Our business will be in the range of, let's say, more than 30% for the HBM and the chiplets, the rest will come from the other segments that we serve. So I think today, the market is focused on the chiplet and HBM. This is high-performance computing. I think this is going to what people call AI applications. I think this is today the main application. Definitely, this in 2, 3 years, no doubt, will become the standard in computing in the industry. But I think there is time until we'll get to that point.

不，不。我認為在我們的發言中，我們說過還有與小晶片和 HBM 無關的其他業務機會，我們也看到了那裡的機會。比方說，我們的業務將超過 30% 為 HBM 和小晶片，其餘部分將來自我們服務的其他細分市場。所以我認為今天的市場主要集中在小晶片和 HBM 上。這就是高效能運算。我認為這就是人們所說的人工智慧應用程式。我認為這是今天的主要應用。毫無疑問，這將在兩三年內成為業界計算的標準。但我認為我們還有時間達到這一點。

And then the last question for me in terms of demand, obviously, is going up because of unit volume. But I also wonder if you could comment a little bit about inspection times and increasing bump density and then what's happening for how long it takes to inspect the wafer.

對我來說，最後一個問題是需求量的增加，顯然是因為單位數量的增加。但我也想知道您是否可以對檢查時間和增加凸點密度以及檢查晶圓所需的時間進行評論。

So this is really application dependent, but no doubt. And I think Rafi, you mentioned in the prepared remarks that we understand where the market is going to. So we've talked about the fact that the number of pumps are becoming more the increasing numbers. And obviously, they are becoming denser and smaller. And this will require new capabilities. Some of those capabilities we already have installed with customers. There are new capabilities that we are going to qualify customers. So those capabilities, first of all, will improve the throughput on one hand to address the increase in the numbers of bumps or the density.

所以這確實取決於應用程序，但毫無疑問。我認為拉菲，您在準備好的發言中提到我們了解市場的走向。所以我們已經討論了泵的數量正在變得越來越多的事實。顯然，它們正變得越來越密集、越來越小。這將需要新的能力。我們已經為客戶安裝了其中一些功能。我們將為客戶提供一些新功能。因此，這些功能首先將提高吞吐量，以解決凸塊數量或密度的增加。

But definitely, all in all, some of these applications, they slow the inspection and metrology time in certain applications. Obviously, I mean, this is the physics of the business and customers are required to purchase more machines. But we are doing on our hands, our best to supply the best ROI in the industry and improving the throughput, the accuracies and everything on our machines.

但總而言之，其中一些應用肯定會減慢某些應用中的檢查和計量時間。顯然，我的意思是，這是業務的物理原理，客戶需要購買更多的機器。但我們正在盡最大努力提供業內最佳的投資回報率，並提高機器的吞吐量、精度和一切。

The next question is from Vedvati Shrotre from Jefferies.

下一個問題來自 Jefferies 的 Vedvati Shrotre。

The first one I had is on the 240 system orders that you have for packaging. Could you help us understand how maybe these converted revenues first half, ‘24 versus second half? Is it more first half later versus second half? Any color there would be helpful.

我收到的第一個訂單是您用於包裝的 240 個系統訂單。您能否幫助我們了解上半年、24 與下半年的轉換收入有何不同？上半場晚還是下半場更晚？任何顏色都會有幫助。

Vedvati obviously, the orders that we see for '24. So we said most of the 240 somewhere went to Q3 and Q4, some needed quick deliveries. But when we look at next year, obviously, the oldest lean more to the first half, naturally. And in the second half, we have less backlog, but we have an understanding from customers. This is where the pipeline comes into place where people speak with us that they need certain machines in the third quarter or the fourth quarter, some even asked for a certain slot, but they have not issued yet the PO. So moving the pipeline or converting it from a pipeline to orders, definitely, this is what we will be doing in the next couple of months.

顯然，Vedvati 是我們在 24 年看到的訂單。所以我們說，某個地方的 240 輛中的大部分都送到了第三季度和第四季度，其中一些需要快速交付。但當我們展望明年時，顯然，最年長的球員自然更傾向於上半年。下半年，我們的積壓有所減少，但我們得到了客戶的理解。這就是管道到位的地方，人們告訴我們他們在第三季或第四季需要某些機器，有些人甚至要求特定的時間，但他們還沒有發出採購訂單。因此，移動管道或將其從管道轉換為訂單，這肯定是我們在接下來的幾個月中要做的事情。

And maybe zooming into that a little bit. So most HBM manufacturers and the chiplet manufacturers have talked about doubling their capacity by 2024. So with these kind of order volumes, do you think they have all the tools they need to achieve that target? Like what is your sense here? And I know the visibility may be limited, but any color here?

也許再放大一點。大多數 HBM 製造商和小型晶片製造商都談到到 2024 年將產能翻倍。那麼有了這樣的訂單量，您認為他們是否擁有實現該目標所需的所有工具？你在這裡有什麼感覺？我知道能見度可能有限，但這裡有顏色嗎？

Well, you know what I understand and what we see, we think that they are getting the tools that they need. And I can tell you that if there will be a short and they will feel that they will need additional tools. We have enough capacity and enough inventory in place to manufacture more machines. So I think we will not be the bottleneck if this will be needed, at least from our understanding what we're seeing at least for '24, at least the first half, I think they have enough to us.

嗯，你知道我的理解和我們所看到的，我們認為他們正在獲得他們需要的工具。我可以告訴你，如果出現短路，他們會覺得需要額外的工具。我們有足夠的產能和庫存來製造更多的機器。因此，我認為如果需要的話，我們不會成為瓶頸，至少從我們對 24 年、至少上半年的了解來看，我認為他們對我們來說已經足夠了。

And then another question I had was there are some notable desktop chips that are starting to use chiplet architectures, which will start ramping soon. Can you help me understand what this opportunity means for you? Do you think it becomes an opportunity as big as HBM that you're seeing right now?

我的另一個問題是，一些著名的桌上型晶片開始使用小晶片架構，並且很快就會開始普及。您能幫我了解這個機會對您意味著什麼嗎？您認為這會成為您現在看到的和 HBM 一樣大的機會嗎？

So that's definitely something that will enlarge our market -- and this is what I think will happen. I think people are starting to use the same architecture, but not adding the HBM. I think this what will happen. Some of the applications of gaming and so forth actually require the HBMs, but many do not need. And this is what I said in one of the questions before, I personally believe that as they run the ATMs, they will get the cost structure, which is today, I would say, one of the limiting factors, but the HBM cost structure will go down with the volume. And then I don't say that it will become standard, but definitely, it will become the, I would say, the preferred architecture for most of the computers. So that's something, and in most cases, the high end becomes the standard over time. And I think this will happen in this case as well.

所以這肯定會擴大我們的市場——我認為這將會發生。我認為人們開始使用相同的架構，但沒有添加 HBM。我想這將會發生什麼。一些遊戲等應用程式實際上需要 HBM，但許多應用程式並不需要。這就是我在之前的一個問題中所說的，我個人認為，當他們運行 ATM 時，他們會得到成本結構，我想說，這是今天的限制因素之一，但 HBM 成本結構將隨著音量下降。我並不是說它將成為標準，但我想說，它肯定會成為大多數電腦的首選架構。所以，在大多數情況下，隨著時間的推移，高端產品將成為標準。我認為在這種情況下也會發生這種情況。

(Operator Instructions) Our next question is going to be from Vivek Arya from Bank of America Securities.

（操作員說明）我們的下一個問題將由美國銀行證券公司的 Vivek Arya 提出。

This is [Doug San] on behalf of Vivek. A question on gross margins. I'm curious about your outlook into '24, not looking for a guide, obviously, but what are some of the puts and takes and drivers of margins next year? Could it return to your target 50-plus levels?

我是 [Doug San] 代表 Vivek。關於毛利率的問題。我很好奇你對 24 年的展望，顯然不是在尋找指南，但明年的利潤率有哪些看跌期權和驅動因素？它能回到你設定的50+水平的目標嗎？

So yes, we said basically that we took certain steps in the beginning of the year. We are seeing the fruits of it starting to affect our gross margin. This is the second quarter or the third quarter actually in a row of improved gross margin. We expect continued improvement gradually. The target is to reach 50% mark. The only give and take here is that it is all subject to sales mix. So in some cases, in some quarters, we have more favorable product mix. And in other quarters, this is less favorable.

所以，是的，我們基本上說過，我們在年初採取了某些步驟。我們看到它的成果開始影響我們的毛利率。這實際上是第二季或第三季毛利率的連續改善。我們預計將逐步持續改善。目標是達到50%。這裡唯一的妥協是，這一切都取決於銷售組合。因此，在某些情況下，在某些方面，我們有更有利的產品組合。而在其他方面，情況就沒那麼有利了。

So this has also had an impact on the margin. But overall, our target for next year is to be at least 50%.

所以這也對利潤率產生了影響。但總體而言，我們明年的目標是至少 50%。

And then could you talk about your order trends outside of AP, maybe some of the visibility in compound semis, Esan mobile phones and automotive have also been encouraging. So I'm curious about your outlook there.

然後您能否談談 AP 以外的訂單趨勢，也許複合半導體、Esan 手機和汽車領域的一些可見度也令人鼓舞。所以我很好奇你在那裡的前景。

So in general, our, I would say, advanced packaging, which includes the chiplets, HBM to genus integration and so forth. This is -- I would say, it's about 60% can come up to 65%. Then I would say, the next sizable business is what we call the silicon carbide and the front end. We combine them together. They would come to anywhere 20% to 25%. And then we have a few others, CMOS image sensors have been low lately for the reason that mobile phones are down. So this is more or less a couple of this business with mobile phones. I assume that next year, they will be better. This business can be anywhere between 5% to 10%.

因此，總的來說，我們的先進封裝包括小晶片、HBM 到類整合等。我想說的是，大約 60% 可以達到 65%。那我想說，下一個規模較大的業務就是我們所說的碳化矽和前端。我們將它們結合在一起。他們會選擇 20% 到 25% 的任何地方。然後我們還有其他一些，CMOS影像感測器最近因為手機的低迷而走低。所以這或多或少是與手機相關的業務。我相信明年，他們會更好。這項業務的比例可能在 5% 到 10% 之間。

And then there are RF names, a lot of smaller businesses that will account to the 100%. But if we look at the -- I would say, the strongest driver, no doubt today is on the advanced packaging part, which is the chiplets and the HBMs, and that's no doubt a growth driver that is going to be dominant for the next couple of years at least. And then the silicon carbide and the front end, definitely, this market may be a little bit slower now, but definitely, this is overall the CAGR is in the range of 20% annually, definitely a market with a sizable opportunity.

然後是 RF 名稱，許多小型企業將佔 100%。但如果我們看一下——我想說，今天最強大的驅動力，毫無疑問是先進封裝部分，即小晶片和 HBM，這無疑是未來的成長驅動力至少幾年。然後是碳化矽和前端，當然，這個市場現在可能會慢一些，但可以肯定的是，整體複合年增長率在每年 20% 的範圍內，絕對是一個擁有相當大機會的市場。

Our next question is from [Ella Pruski of Optimus Funds].

我們的下一個問題來自[Optimus Funds 的 Ella Pruski]。

One question about the geographic revenue split for this quarter, please?

有一個關於本季地理收入分配的問題嗎？

So ADR was around 80%, 8-0. And U.S. and Europe was 20%.

所以 ADR 大約是 80%，8-0。美國和歐洲為20%。

Our next question is from Shahar Cohen of Lucid Capital.

我們的下一個問題來自 Lucid Capital 的 Shahar Cohen。

And going back to Vedvati question about the some of the laptop or desktop publication. You spoke about HBA, but I'm not true HBM is applicable to these maybe try to understand as what you meant that HBM would be adopted in laptop and desktop, or you meant the advanced packaging techniques will be adopted in those and given the magnitude of flip-top TPUs compared to, let's say, GPUs Wouldn't you expect a major leapfrog on your advanced packaging next year, giving you another laptop CPU, advanced packaging applications.

回到維德瓦蒂關於筆記型電腦或桌上型電腦出版物的問題。您談到了HBA，但我不是真的HBM 適用於這些，也許嘗試理解為您的意思是HBM 將在筆記型電腦和桌上型電腦中採用，或者您的意思是先進的封裝技術將在這些中採用，並且考慮到其規模翻蓋 TPU 與 GPU 相比，您難道不希望明年您的先進封裝實現重大飛躍，為您提供另一種筆記型電腦 CPU、先進封裝應用嗎？

There are 2 questions, and let me start with the first one. The question that came before is that you see today notebooks and in general, the PCs starting to adapt the chiplet architecture. Now down the road, they will add also HBM. Currently, they are not. I think the only application that I know of in the PC arena, that's using the chiplets and HBM is some gaming applications. So from the structure that's starting to use the structure of the chiplets, which eventually will probably start to use also HBM as well as they need more and more power. But this is still down the road.

有兩個問題，讓我從第一個問題開始。之前提出的問題是，今天的筆記型電腦和一般的個人電腦開始採用小晶片架構。現在，他們還將添加 HBM。目前，他們還沒有。我認為我所知道的 PC 領域唯一使用小晶片和 HBM 的應用程式是一些遊戲應用程式。因此，從開始使用小晶片結構的結構來看，小晶片最終可能也會開始使用 HBM，並且它們需要越來越多的功率。但這仍然是未來的事。

Now regarding your second question, no doubt there is an opportunity. But the question is how fast it will grow and how fast HBMs will go to other applications other than AI, this is still not clear. And therefore, definitely, as we said, this segment will be more than 30% of our business. I mean this is significantly more than this year, and dramatically bigger than it was a year or 2 ago. So definitely, this is part of the growth, one of the reasons for the growth of contact over the last few years, definitely, that's an area that's going to increase and definitely an area that is a very big potential for us. But how fast it will grow further than what it's going today, it's still hard to say.

關於你的第二個問題，毫無疑問是有機會的。但問題是它會以多快的速度成長，以及 HBM 會以多快的速度走向 AI 以外的其他應用，這仍然不清楚。因此，正如我們所說，這一領域肯定會占我們業務的 30% 以上。我的意思是，這個數字比今年多得多，而且比一兩年前還要大得多。所以，毫無疑問，這是成長的一部分，也是過去幾年接觸成長的原因之一，當然，這是一個將會增加的領域，而且絕對是對我們來說潛力巨大的領域。但它會比現在成長多快，仍然很難說。

That looks like it ends the Q&A session. So before I turn the call back to Rafi, just to let everybody know that a recording of this call will be available from the same Zoom link on Camtek's website in the next couple of hours. And Rafi, please go ahead and make your closing statements.

看起來問答環節就結束了。因此，在我將電話轉回拉菲之前，我想讓大家知道，在接下來的幾個小時內，可以透過 Camtek 網站上的同一個 Zoom 連結取得本次通話的錄音。拉菲，請繼續做結案陳詞。

Okay. I would like to thank you all for your continued interest in our business. I want to especially thank the employees and my management team for their tremendous performance. To our investors, I thank you for your long-term support. I look forward to talking with you again next quarter. Thank you, and goodbye.

好的。我要感謝大家對我們業務的持續關注。我要特別感謝員工和我的管理團隊的出色表現。感謝我們的投資者長期以來的支持。我期待下個季度再次與您交談。謝謝，再見。

Thank you.

謝謝。