Camtek Ltd Q1 FY2024 Earnings Call

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. All participants other than the presenters are currently muted. Following the formal presentation, I'll provide some instructions for participating in the live question-and-answer 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 have all by now received a press release. If not, please view it on the company's website. With me on the call today, 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 answer your questions. Before we begin, I'd like to remind everyone that certain information provided on this call is internal company estimates, unless otherwise specified. This call may also contain forward-looking information. 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 statements contained, whether as a result of new information, future results, changes, expectations, or otherwise. Investors are reminded that these forward-looking statements are subject to risks and uncertainties that may cause actual events or 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 for the foreseeable future, but also Taiwan and Korea, including the risks of deviations from our expectations regarding timing and size of orders from customers in these countries, changing industry and market trends, reduced demand for services and products, the timely 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 statements in today's release also cover the contents of this conference call. 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 future performance. Management believes that the presentation of non-GAAP financial measures is 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 is included in today's earnings release. And now I'd like to hand the call over to Rafi, Camtek's CEO. Rafi, please go ahead.

Okay. Thanks, Kenny. Good morning or good afternoon, everyone. Camtek ended Q1 2024 with a record quarterly revenue of $97 million, exceeding the guidance of $93 million to $95 million provided last quarter. It is interesting to look at the distribution of sales this quarter. 80% of our revenue came from Advanced Interconnect Packaging applications, which are divided into 40% from the HBM segment, 20% from chiplets, and 20% from other advanced packaging applications. The remaining 20% are divided between compound semiconductors for power devices, CIS, and Process Control applications. The gross margin came high in this quarter at 50.6%. This achievement resulted mainly from the high percentage of systems sold to the Advanced Packaging Interconnect segment. The operating margin also shows an improvement to about 30%. Based on our current order flow, backlog, and pipeline, we expect the demand for HBM and chiplets to continue into the next quarters. This is reflected in our revenue guidance for the second quarter, which is about $100 million to $102 million. Today, I would like to focus on the high demand for AI-related products. Rather than quoting from articles and industry surveys, I would like to share with you the information we have gathered from our current business regarding the effect of AI on our markets. AI technology, especially generative AI, requires extremely powerful computing capability, and it is based on HPC architecture, of which the two main components are HBM and chiplets. Since Camtek is a leading provider for inspection and metrology of HBM and since we are present at all Tier 1 customers in a large number of inspection and metrology steps, the rate of requirement of incoming orders from HBM manufacturers is an important indication of the expected growth rate of HBM and HPC. The sharp increase in demand for HBM can be understood when comparing the revenue from our tools for HBM inspection and metrology in the first quarter of 2024 to historical rates. Until the first quarter of last year, HBM accounted for a single-digit percentage of our revenue. Starting from the second half of last year, we experienced significant growth in HBM sales, which accounted for approximately 20%. This quarter, the revenue for HBM applications was 40% of our total revenue, and we expect this level to continue in Q2 as well. We believe that this is a very strong indicator of the extent of production capacity built by the industry for these components, which are essential for high-performance computing. As we mentioned in our last call, the Q4 consensus among analysts is that HBM and chiplets will continue growing in the coming years at an annual rate of 20% to 30%. Therefore, we believe that this segment will continue to be a significant part of our sales in the coming years. The advantage of being a major player in Tier 1 HBM and chiplet manufacturers is that we are constantly challenged by the most advanced technological requirements, enhancing our capabilities and knowledge in inspection and metrology. We have developed new solutions to meet our Tier 1 customers' roadmap. I use the term solutions because it is a combination of new platforms, new and advanced optical assemblies, special features, and AI-based algorithms. To sum it up, the field of AI is changing the industry and Camtek is well-positioned to benefit from these trends, which will give us more confidence in our ability to continue growing beyond 2024 and reach our next goal of annual sales of more than $500 million. And now Moshe will review the financial results. Moshe?

Thanks, Rafi. In my financial summary ahead, I will provide the results on a non-GAAP basis. The reconciliation between the GAAP results and the non-GAAP results appears in the table at the end of the press release issued earlier today. The purchase accounting treatment from the FRT transaction is also included in our non-GAAP reconciliation. In addition, please note that the FRT results are included only starting from November 1, 2023. Going now to the revenues. First quarter revenues came in at a record $97 million, an increase of 34% compared with the first quarter of 2023 and an increase of 9% from the fourth quarter of 2023. The geographic revenue split for the quarter was as follows: Asia, 86%; China was a relatively lower part of the mix, because a good portion of our revenue this quarter came from HBM and chiplets; U.S. and Europe together are 14%. Gross profit for the quarter was $49.1 million. The gross margin for the quarter was 50.6%, up from 47.3% in Q1 of last year and 49.2% last quarter. The improvement is a result of a more favorable product mix as well as the initiatives we implemented to improve the cost structure over the last few quarters. We anticipate to maintain these levels in the coming quarters. Operating expenses in the quarter were $20.1 million compared to $16.9 million in the first quarter of last year and $18.2 million in the previous quarter. The increase is mostly due to a planned expansion to support the continued growth. Operating profit in the quarter was $29 million compared to the $17.4 million reported in the first quarter of last year and $25.5 million in the previous quarter. The increase is mostly due to the increase in revenue and the improvement in gross profit. Operating margin was 29.9% compared to 24% and 28.7%, respectively. Financial income for the quarter was $5.6 million at a similar level to the previous quarter and higher than the $5.1 million reported last year. The increase from last year was due to a higher interest rate on our cash balance. Net income for the first quarter of 2024 was $31.3 million or $0.64 per diluted share. This is compared to net income of $20.4 million or $0.42 per share in the first quarter of last year. The total diluted number of shares as of the end of the first quarter was 49.3 million. 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 March 31, 2024, were $467 million. This compared with $449 million at the end of the fourth quarter. We generated $20 million in cash from operations in the quarter on the back of increased revenue and good collection. I noted during April, the company paid $60 million as a dividend to the shareholders. The inventory level increased by approximately $7 million to $102.1 million. The increase over the previous quarter is to support the anticipated sales growth in the coming quarters. Accounts receivable decreased to $86.4 million in the quarter, despite the increase in revenue, primarily as a result of a strong collection in the quarter. Our days sales outstanding decreased to 81 days, down from 90 days. Guidance. As Rafi said before, we expect revenue of between $100 million to $102 million in the second quarter with continued sequential growth throughout 2024. And with that, Rafi, Ramy, and I will be open to take your questions. Kenny?

Thank you, Moshe. Our first question will be from Charles Shi of Needham.

In Q1, HBM plus chiplet accounted for 60% of total revenue, which is quite impressive. I remember that you anticipated these two applications would represent over 30% for the entire year. Should we now expect a higher percentage for the full year, or is it more of a moving target depending on total revenue? I would like to know if Q1 represents the peak percentage for HBM plus chiplet this year, or do you foresee Q1 and Q2 maintaining this level, with a potential decrease in Q3 and Q4?

Ramy, you want to answer to that?

Yes. So definitely, yes, the numbers came higher than we expected when we were thinking about it and talking about it a couple of quarters ago. But definitely, the numbers are higher. And we assume and we said that the number is going for this year to be around 50%. It's definitely going to be higher than we expected previously. And...

Got it. So may I ask about the HBM and the chiplet revenue you guys are receiving so far. Is there any China contribution yet?

No. When you are talking here, this is not related to China. As Moshe alluded in his prepared notes, it's definitely the five big players we discussed, the main producers.

I understand. Regarding your question, this seems to be the first time you’ve provided longer-term guidance indicating that revenue for 2025 will exceed $500 million. I believe your current capacity could reach that level. What are your thoughts on expanding capacity? Are you planning any expansions this year, and how do you view the supply side of the equation?

Charles, I want to clarify that when we mentioned $500 million, we were talking about a target that is foreseeable, but not related to 2025. Currently, we cannot provide a clear forecast for the total revenues for 2024, let alone for 2025. The $500 million figure is not definitive. As for our capacity, as we've stated in previous calls, our facility currently has the capability to produce over $500 million following our last expansion. We have the capacity to meet demand, including from our sub-suppliers in the supply chain. However, discussions about when we will reach these figures are not something we can address today.

Yes, that's fair. It means you won't face supply constraints before your demand hits that level. Just one last question. It's a significant milestone you shared about the chiplet making up 20% of total revenue. Compared to last year, is there also a meaningful increase in chiplet revenue? While you've focused a lot on the HBM side, I want to understand better about the chiplet. Are you already supplying to one or two customers on the chiplet side?

No, so definitely, there is a significant increase on the chiplet side as well. And we are supplying to the two major players here. So from that point of view, we are covering the entire market. And definitely, there is an increase. The numbers were significantly lower when you go a year ago.

Our next question will be from Brian Chin of Stifel.

Great. I guess, firstly, do you believe that an increasing portion of your shipments this year will be for 12-Hi HBM die stacking? And does your revenue opportunity increase in a linear fashion when you move from 8-Hi or the industry moves from 8-Hi to 12-Hi HBM stacks?

So in general, Brian, it should mean an increase. But then, on the other side, it's going to be the ratio of HBMs per chiplet. So going to a stack of 12, they would put less HBMs around the chiplets. So I'm not sure what eventually the total numbers of DRAMs that will be scanned. So when you need to look at our business, we scan wafers. So we don't scan it in the sense of one die after the other. So we hear the question will be the number of DRAMs that are going to be used for the HBMs, and this is going to really dictate what is going to be the growth factor from our point of view.

Got it. Okay.

Is that okay? You understood the point, Brian?

Yes, I think I did. That's helpful. From a lead time perspective, how are you managing? I know you have the capability to reach the $500 million interim revenue target, but regarding the rapid progression of this ramp, how are you handling lead times? Are you essentially booking into Q4 at this stage?

First of all, let's discuss the lead times. Our customers have provided us with sufficient lead time to operate effectively. Currently, I would estimate the lead time to be between 3 to 6 months. This allows us enough time to scale the business and adjust our inventory to meet the demand.

Additional remark for the lead time. Usually, what we call high-performance computing, HBM, and chiplet are done by the biggest player in the industry, and they are well-organized, and they can place orders for, let's say, even a year ahead. When we talk about other segments, usually like OSAT or others, their lead time is much shorter in general. So it's depending on the mix product, and then we can see also the related to the lead time as well.

Okay, I have one last question for Moshe. How should we consider the progression of gross margin as revenue surpasses the $400 million annualized rate this year? What are the key factors regarding the product customer mix and potentially costs?

Gross margin is influenced by several factors. The first is the product mix, which is uncertain regarding how much the $400 million can vary with different mixes. The second factor is the cost structure. Over the past few quarters, we have made definite improvements to our cost structure in terms of both fixed and variable expenses. Moving forward, we are more dependent on enhancements in product mix and average selling prices. While it's difficult to give a precise forecast, we do feel that we currently have some leverage, and noticeable improvements in gross margin are evident. We are optimistic that we can maintain these levels and possibly improve them in the upcoming quarters.

Our next questions will come from Brian Chin of Stifel. Sorry, sorry. Sorry, Brian. Craig Ellis from B. Riley.

Congratulations on the nice execution. I wanted to start with a near-term question just to understand the operating environment that you all are seeing, and it relates to order or pipeline conversion to order activity dynamics that you may have seen. We've heard from a number of companies that have high bandwidth memory and chiplet exposure that the latest increase in orders seems to happen concurrent with the big step-up in U.S. hyperscale spending activity in the last 1.5 months. The question is, is that something that served as a catalyst for Camtek? And can you compare just the intensity of customer discussions on future new orders or pipeline activity converting to orders with what you've seen maybe three and six months ago?

I'm trying to think, but I think also three to six months ago, we started a lot of activities, and there were a lot of intensive discussions, and we started to see bookings already three to six months ago. I don't think there is a big change between a quarter ago and now. No doubt there are lots of discussions with the customers. And there is a lot of follow-up to make sure that we are shipping on time. Definitely, the industry needs the machines, and this is what we are getting from our customers. They want to make sure that they can install the machines on time. So from that point of view, I think this is in line with what you're seeing. Looking forward on your second half of the question, we believe from the discussions with customers, the trend will continue into 2024 and further in 2025, but it's too early to say something very concrete. But overall, I would say the environment and atmosphere are very positive and very intense discussions; we are constantly talking with the customers.

That's really helpful color, Ramy. The next question is a little bit more longer term, and it relates to the $500 million revenue target. The question is this, we're clearly seeing a very rapidly growing and increasingly large chiplet opportunity for things related to high-performance compute and AI. But regarding the $500 million revenue target, how much does that depend on some recovery in formerly large end markets like the smartphone end market? So the question is, can we get to $500 million without a recovery in smartphones? Or to what extent would we need that smartphone or maybe process control to make a materially larger contribution than they are today?

I will begin, and Rafi may want to continue or add something. My belief is that to achieve the $500 million target, we will need a larger contribution from the other segments of the business. Currently, the capacity in the fabs is low, leading to reduced investments in some of our other markets. I anticipate that we will see some improvement towards the end of 2024, and to achieve the higher numbers, $500 million and beyond, those markets will need to play a more significant role in the business. Rafi, would you like to add anything?

Yes. I would say that there are two major issues that can affect our goals to achieve the $500 million. Number one, we want to see the utilization in the fab come to the normal number of about 90%. And the GDP worldwide behaves much normal, and we can see some growth by end product line. Definitely, China also can be a big factor if they also get into this HPC segment. So there are many parameters that affect our ability to reach this $500 million. But definitely, what we can see in Q1 is not totally normal because high-performance computing is very high, and we expect the other segments to recover, and then we can feel more comfortable with it.

That's really helpful color, guys. And then the last one will be for Moshe. Moshe, first, congratulations on the really strong gross margins, and you've provided color there. So I wanted to ask an operating expense question that somewhat relates to points made in prepared remarks by Rafi with the work you're doing with customers to customize solutions. The question is this, as the company further engages with customers and chiplet opportunities and others, how should we think about the potential growth in R&D through the year relative to what we've seen recently?

Craig, Rafi's comments about our work with the major Tier 1 players are already incorporated into our R&D plans for this year. I anticipate that the R&D portion of our operating expenses will generally increase in parallel with our revenue growth this year. Other expense categories like sales, marketing, and general administration will be less influenced by revenue growth and will provide opportunities for additional leverage in our model.

Our next question will be from Vedvati Shrotre from Evercore.

Congratulations on solid execution. The first question I have is regarding the rapid growth of HBM and chiplet revenues in these markets. I imagine this would attract significant competition. Can you explain what your competitive advantages are to help you maintain your market share and capture the majority of it?

Thank you for the question. Let me clarify. In terms of competition, this market primarily favors larger players. As such, much of the competition observed in other sectors does not directly apply here. Our main competitor is Onto Innovation, and there may be some involvement from KLA, but the market opportunity is substantial and expanding. We have established a strong position because we've been collaborating with our current customers for several years, which has involved considerable development work. This foundation is not easily replaceable or changeable. We continue to work closely with these customers and are actively developing new capabilities to meet their future needs. While increased competition is likely as the opportunity expands, we believe we are well-positioned to retain a significant market share in both the HBMs and chiplets sectors.

That's helpful. Maybe asking a little bit on top of that is, so how is your visibility into the second half of this year? Like are you starting to see a good chunk of orders, which kind of give you that confidence that you continue to grow sequentially? I think last quarter, there was a sort of a visibility issue on what the second half of '24 would look like? Do you think that commentary has changed since then?

No. So definitely, we continue to see orders coming in. We are in very intense discussions with our customers, and we understand also when they will be placing orders for the second half. So overall, we are confident that we will maintain the level of business that we're seeing now with some growth in the second half.

I would like to add something, just to understand. Even if we get an order for, let's say, Q4, okay? But you have to consider that sometimes this order is dependent on the customer to complete infrastructure, construction, facility, and other parameters that maybe if it's not on time, it can delay this order to another quarter. This is why we cannot tell in advance for a long term what is going to happen. We can get orders; we see the pipeline, we understand the demand, and we feel comfortable. But it can move additional months, additional quarters based on whether the infrastructure is ready or not.

That's helpful. Can you provide an update on the newer platform that you mentioned in previous calls, which is expected to ramp up in 2024, and the adoption you're anticipating?

I want to emphasize that we need to be cautious about what we disclose on this call. Rafi mentioned some of our initiatives in his prepared remarks. We are definitely making progress and are currently in the process of launching new products into the market. It's too soon for us to make a formal announcement, but we will likely share updates as the year progresses. For now, I can't provide more details than what I've shared.

Our next question will be from Gus Richard of Northland.

Sorry about that. I was looking at the model. Congratulations on the strong results. And my first question is, in terms of chiplets, are you starting to see that spread out into the OSAT?

There are discussions about it. It's starting to happen, but the volumes are still relatively low. I believe it will occur, but I think this will take place later this year or in 2025.

Got it. In terms of FRT and opportunities for backside power, we are about a year away from backside power ramping into production. Are you starting to have conversations with your customers about preparing for that process change?

First of all, from FRT, definitely, this is something that is proceeding on track. Specifically on the question of this specific application, I don't have the answer right off the bat. This is something that I can look into it and we can have a follow-on call, and I'll give you the answer, Gus.

And then the last one for me is, clearly, HPC is very strong and driving a lot of demand. However, the move of system and package to client has been somewhat slower than I would have expected, I think, due to cost or potentially yield. And I'm just wondering, or it could be capacity constraints. And I'm just wondering, what you're seeing from your customers in terms of demand from the client side of chiplets in particular?

I think there has been a lot of discussions on yield and the reliability of known good dies. We're seeing strong demand signals from our customers indicating that they plan to ramp up and continue production. From a technical perspective, the industry has solutions in place, and I believe all the players are on track to address these challenges. That’s the feedback we are receiving, but as you know, this information is quite confidential.

All right. That's it for me.

Gus, we'll follow up to answer your question that I can't address right now.

Our next question will be from William Levy of Barclays.

My first question is regarding HBM and the overall time frame you are observing. Currently, the two major HBM 3E players are sold out until 2025. Are your discussions now centered around time frames beyond that and potential capacity increases?

The discussions are still oriented this way. They generally talk about purchase orders, which are typically for the current year or, as Rafi mentioned, up to 12 months in advance. However, the feedback we are receiving indicates that this segment is likely to keep growing. Based on the trends and what we hear, we expect the growth in HBM and chiplet technologies to persist into 2025. While we don't have a clear picture of what will happen beyond that, we understand the direction of these markets. Currently, HBM makes up about 6% of the total DRAM market, and indications suggest this percentage will increase significantly over the next few years. Therefore, from our perspective on market trends and potential applications, we believe that growth will extend beyond 2025 and into the foreseeable future. However, it's still too early to make definitive statements since the industry is very dynamic and many factors could change between now and 2025. We are unable to provide specific and concrete details at this time. Nevertheless, based on our understanding of the market and technology trends, we are confident that growth will continue in the foreseeable future.

And from time to time, we can see customers that really start with construction and infrastructure in order to expand their fab capacity to meet the demand for the next few years. So it's also a good indication.

Just a quick follow-on to refresh my memory. When you ship one of these products, how long will it take the customers to ramp and make your machine fully functional in their fabs?

I would say the shipments these days because everything is shipped by air. From the time it enters the facility until it starts to run, it's a question of very few weeks. It could be 1, 2 weeks and it will start to run the product. Then it depends on the customers; sometimes it's a little longer, but it's a very short time.

Our next question will be from an analyst.

I'm on behalf of Vivek. Just one on your target model. A while back, you gave out a model of $400 million at the high end in sales. Alongside that, you said 52% to 53% gross margin. So given we're reaching that $400 million in sales this year, is that gross margin level achievable or have things changed?

In general, this is achievable. We provided a range of 51% to 53%, which is definitely within reach. We are close to this range, currently operating at a run rate of $400 million. Additionally, there is room for further improvement in both gross margin and operating expenses. Therefore, this range remains valid for the company.

Got it. And then as a follow-up, I think a while back, you also mentioned that these HBM advanced packaging tools have roughly 50% ASP upside compared to the non-HBM tools. Is that continuing to grow from, say, 8-Hi HBMs to 12-Hi and then from less of those advanced chiplets to more advanced? Are we still seeing ASP upsides going forward?

First of all, moving from 8 to 12 doesn’t change our business or our machines because we scan wafers. Those wafers have been diced and then assembled as either 8 or 12. From our perspective, it doesn't matter whether it will be an 8 stack or a 12 stack. There is no difference in terms of performance or any other aspect. The machines are the same. So is there any potential for improvement in average selling prices? No, there isn’t. Unfortunately, it won’t matter to our machines.

Next question will be from Alon Last of Meitav Dash.

One of the questions is about efficiency in HBM manufacturing. You previously mentioned that operational efficiency is currently very low, and there is a concern that if efficiency improves, demand for inspection tools may not reach its potential. Can you elaborate on this? What efficiency rate do you observe in the industry at the moment, and what are the projections for improvement in efficiency?

Alon, let me answer that. First of all, we cannot share such confidential information. Even our customers do not share it with us. But from time to time, we try to double-check it with customers. I would definitely say that the rumors in the market about low efficiency are not true, and most of our customers deny that; they say, 'No, no, it's not like that; it's much better.' That is the only information we can share with you.

Okay. Another question is about the gross margins. Currently, there is 60% in the chiplet and HBM, which means that, let's say, the high-margin tools are a large portion of the current headquarters sales. What can drive additional improvement in the margins? Is it that the HBM and chiplet is going to be more than 60%? Or is it something else that might drive the improvement in gross margins going forward?

So the potential improvement in gross margin comes from the new products and the new platforms that we alluded to earlier in the call by Ramy and Rafi. We are working on releasing new models and new platforms, and they will come with improved gross margin for the company.

And do you have any schedule for that? Or is it too early to say?

So we do not have a formal launch time for these product lines, but they will come in the near future, or they will have a positive contribution as they get to the market.

Our next question will be from Jack Hsu of Eastspring Investments.

Yes, I have two questions. My first question relates to the current conflict with Naples. Will this situation affect your operations and order shipments?

Rafi, do you want to answer?

No, no, you can answer. It's fine.

All right. So first of all, one, yes, it's unfortunate the conflict we're having. But from the operations point of view, Camtek is operating as usual. We have not missed any shipments. The government is supporting us, and from shipments, airfreights, the entire environment is working and supporting the Israeli industry, and we do not expect any issues. From this point of view. Furthermore, we have a few locations where we manufacture the machine here in Israel, actually three different locations with redundancy between the different places. Longer term, we are also thinking of establishing a manufacturing facility outside of Israel.

Got it. The question is there are three major memory vendors. They have all announced plans to provide HBM 3E products in the near future. I'm interested in which vendors we will collaborate with further. We are deeply cooperating with all three vendors.

Thank you for the question, Jack. As we mentioned earlier, we maintain a strong and close relationship with all our vendors. However, when they transition from one type of HBM to another die, they do not share this information with us, as it pertains to their internal strategies. This does not impact us because we continue to inspect and measure wafers. Whether they use a stack of 8, 12, or 16, it doesn't necessitate any changes to our machinery. From a performance standpoint, we can meet all current and future requirements. As I mentioned, we work with all the different vendors.

Got it. It's very helpful. Just one follow-up question. So I'm interested in which customers are investing more in the HBM capacity expansion now?

So Jack, we have no knowledge of that. What you hear and what they make announcements about, this is really what we know. Obviously, we are under confidential agreements that we cannot disclose to whom we sold and how many machines, and this is something that is confidential. So I will not be able to help you on this.

That concludes the question-and-answer session. Before I hand back to Rafi, I would just like to let you all know that within the next hour, the recording of this conference call will be accessible from the same link and also from the Investor Relations section of Camtek's website at camtek.com. I would like to thank everybody for joining this call. And I would now like to hand back to Rafi for his closing statement. Rafi, please go ahead.

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 the tremendous performance. To investors, I thank you for your long-term support. I look forward to talking with you again next quarter. Thank you, and goodbye.