Camtek (CAMT) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenue of $102.6 million, up 40% year-over-year and 6% sequentially, driven by strong HPC demand comprising over half of business.

• Over 50% of sales were for high performance computing (HPC) products for the second consecutive quarter.

• Strong demand in HPC segment, with a major order exceeding $31 million from a global Tier 1 customer for HBM wafer inspection.

• GAAP net income reached $28.0 million, a 51% increase year-over-year; non-GAAP net income was $32.6 million.

• Operating cash flow was $49.2 million for the quarter.

Financial highlights

• Gross margin improved to 51% (non-GAAP), up from 50.6% in Q1 2024 and 48% in Q2 2023; GAAP gross margin was 49.9%.

• Operating profit was $30.8 million (non-GAAP), up from $18.3 million in Q2 2023 and $29 million in Q1 2024; operating margin reached 30%.

• GAAP operating income was $25.9 million (25.2% margin), up 73% year-over-year.

• Net income for Q2 2024 was $32.6 million ($0.66 per diluted share, non-GAAP), compared to $21.9 million ($0.45 per share) in Q2 2023.

• Cash, deposits, and marketable securities totaled $454 million as of June 30, 2024, with $49 million generated from operations in the quarter.

Outlook and guidance

• Q3 2024 revenue expected between $107–$110 million, representing about 35% year-over-year growth at the midpoint, with continued sequential growth anticipated in Q4.

• Demand for HPC-related products expected to remain strong through H2 2024 and into 2025.

• Long-term vision supported by strong order flow, including deliveries scheduled for 2025.

• Gross margin expected to remain in the 50%–51.5% range in coming quarters, with a target of 52% at $500+ million revenue.