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. I would like to remind everyone that this conference call is being recorded, and the recording will be available from the link in the earnings press release and on Camtek's website from tomorrow. You should have all received by now the company's press release. If not, please view it on the company's website. With me today on the call, we have Mr. Rafi Amit, CEO; Mr. Moshe Eisenberg, CFO; and Mr. Ramy Langer, COO. Rafi has a cold and has lost his voice. So Ramy will be providing the opening remarks followed by Moshe, who will then summarize the financial results of the quarter. Following that, we will open the call for the question-and-answer session. Before we begin, I'd like to remind you that the statements made by management on this call will contain forward-looking statements within the meaning of the federal securities laws. Those statements are subject to a range of changes, risks, and uncertainties that can cause actual results to vary materially. For more information regarding the risk factors that may impact Camtek's results, please review Camtek's earnings release and SEC filings and specifically the forward-looking statements and risk factors identified in the results press release issued earlier today and such other factors discussed in Camtek's most recent annual report on SEC Form 20-F. Camtek does not undertake the obligation to update these forward-looking statements in light of new information or future events. Today's discussion of the financial results will be presented on a non-GAAP financial basis unless otherwise specified. As a reminder, a detailed reconciliation between GAAP and non-GAAP financial results can be found in today's earnings release. And now I'd like to hand the call over to Mr. Ramy Langer, Camtek's COO. Ramy, please go ahead.

Thanks, Kenny. Hello, everyone. Camtek concluded the fourth quarter and full year with record results. Fourth quarter revenues reached a quarterly record of $128 million, representing an increase of 9% year-over-year. Gross margin was 51% and operating margin was 29%. For the full year, I'm excited with our revenues, which totaled $496 million, reflecting 16% year-over-year growth. Gross margin was 51.6% and operating margin reached 30%. These results bring us to our milestone of $0.5 billion in revenues. In terms of revenue mix for the full year, approximately 50% was driven by AI-related products, 20% came from the other advanced packaging applications. The remaining revenue was distributed across CMOS image sensors, compound semiconductors, front-end and general 2D applications. Regarding our outlook for the first quarter of 2026. In our previous meeting, we indicated that we expect our revenues to be more second-half weighted following a somewhat slower start to the year and that we expect 2026 to be a growth year compared to 2025. In line with this, our revenue guidance for the first quarter is to be around $120 million. At the same time, I am pleased to share that the months passed since our previous guidance significantly reinforced our confidence in our forecast regarding the strength of the second half and in our ability to achieve full year growth in 2026. Moreover, at this point in time, we expect 2026 to be another double-digit growth year for Camtek. This confidence is derived from our pipeline of orders and backlog as well as ongoing interaction with our customers. As you are aware, key customers of ours have made public announcements regarding their investment plans for the coming year and are discussing with us about their plans for the latter part of the year in this respect. Customers have been verifying with us their ability to ship and install a double-digit number of systems within a relatively short time frame. Certain customers are finalizing development of their next-generation devices and want clarity on which of our system models best fit their requirements. The primary growth engine of the semiconductor industry continues to be high-performance computing components designed for AI applications. As I said, the growth curve expected in 2026 is largely linked to the pace at which device manufacturers, particularly memory suppliers, plan to expand their production capacity. As an example, last week, we announced a $25 million order received from an IDM customer for multiple Hawk systems. This order is in addition to previous orders placed in recent months by this customer, bringing the total to approximately $45 million. The customer continues to expand its manufacturing capacity by building new fabs to meet growing demand for components produced for AI applications, and we expect additional orders from this customer. We expect additional major customers of ours to expand their production capacity after this year to meet rising demand for their products. Another major factor supporting our outlook is the proven exceptional performance of our systems, particularly the Hawk and the Eagle Gen 5; both models were launched about a year ago, and we have already installed dozens of systems of each over the past year. Moreover, since this introduction, we have continued to invest efforts in our R&D and completed the development of new capabilities to meet the requirements of our customers' next-generation products. We have already demonstrated these new capabilities to several customers and received strong validation and interest. The transition to HBM4 is already in process and represents a major opportunity for us. We are the tool of reference for 3D metrology at all major players. We have a significant market share in 2D inspection, which we expect to expand in 2026. We, therefore, expect to not only maintain our market share in AI-related applications, but to increase it meaningfully. Moreover, as our products introduce to the market superior new capabilities, we expect them to enable us to penetrate additional production steps and expand our total addressable market. To summarize, two major developments coincided during the last several months. We have experienced significantly increased orders flow and pipeline, thus improving our visibility. In parallel, we have completed the development of new capabilities to meet the requirements of our customers' next-generation products, which we expect to enable us to increase our market share in our total available market. We are excited about what we can achieve in 2026. And now Moshe will review the financial results.

Thank you, Ramy. Revenue for the fourth quarter came in at a record $128.1 million, an increase of 9% compared with the fourth quarter of 2024. For the full year, revenues came in at $496.9 million, an increase of 16% compared with 2024. The geographic revenue split for the quarter was as follows: Asia was 89%, and the rest of the world accounted for the remainder 11%. Gross profit for the quarter was $65.4 million. The gross margin for the quarter was 51.1%, similar to the previous quarter and slightly better than the 50.6% reported in the fourth quarter of last year. Operating expenses in the quarter were $28.7 million compared to $23.1 million in the fourth quarter of last year and $27.2 million in the previous quarter. Operating profit in the quarter was $36.7 million compared to the $36.3 million reported in the fourth quarter of last year, and $37.6 million in the third quarter. Operating margin was 28.6% compared to 30.9% and 29.9% respectively. For the year, operating margin was 30%, similar to 2024. Financial income for the quarter was $8.2 million compared to $6.2 million reported last year and $6.5 million in the previous quarter. Within that, interest income increased due to the increased cash balance from the strong cash generation and the convertible notes issued towards the end of the third quarter. Net income for the fourth quarter of 2025 was $40.7 million or $0.81 per diluted share. This is compared to a net income of $37.7 million or $0.77 per share in the fourth quarter of last year. Total diluted number of shares as of the end of the fourth quarter was 51.3 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 December 31, 2025, were $851.1 million. This compared with $794 million at the end of the third quarter. The fourth quarter was characterized by a very strong cash generation of $61.2 million from operations. This is a result of strong collection and reduction in accounts receivables as well as optimization in our inventory levels. Accounts receivables were down by $22 million to $90.8 million compared to $112.5 million in the previous quarter. Our days sales outstanding decreased to 65 days from 81 days last quarter. The inventory level is down by $50 million. Having increased our inventory level in the last few quarters to support the launch of the Hawk and the Eagle Gen 5, it is now back to the right level to support the expected revenues in the coming quarters. As for guidance, as Ramy said before, we expect revenues of around $120 million in the first quarter, with growth expected in the second quarter and more significant growth in the second half of 2026. And with that, Ramy and I will be open to take your questions.

First question will be from Brian Chin of Stifel.

Can you hear me?

Yes.

Maybe firstly, just to reference the big accelerating increase in demand that you referenced. Where is that more prevalent? Is it more concentrated on HBM or on the chiplet logic side? And at this time, is the larger step-up occurring in Q3 or Q4?

Well, Brian, first of all, I would say it's the high-performance computing or AI-related products that are all ramping up. At this stage, I can't specify whether it's in Q3 or Q4, as it really depends on the customers. I can say that in the second half, we will see the progress.

Got it. Can you still hear me?

Yes.

Yes, yes.

Maybe for a follow-up, I think in the past, you've noted that you expected 50% plus of your system shipments this year to be either one of the newer platforms, Hawk or Eagle Gen 5. Is that still the case? Or is there an update to that? And this year, we'll have HBM4 sort of coexist alongside HBM3E. Can you maybe outline sort of that decision point that some of your customers are having either moving to Hawk or potentially sticking with the latest Eagle? And also, are you seeing any reuse of existing systems? Is that any factor why shipments are lower in first half?

So let me start to talk about the Eagle versus the Hawk. I think the Hawk is going primarily to people that want very high throughputs and long-term capability. The Hawk can reach accuracies and performance that is much higher than the Eagle, the G5. The G5 is a fantastic machine, very high flexibility, very popular in the OSATs world. Therefore, there is room for both of them. But definitely, when you go to very high volumes, these customers will gradually move to the Hawk. Now the Hawk and the G5 accounted for about 30% of our revenues this year. We expect it to be at least 50% in 2026. Did I answer your question clearly, Brian?

Yes. That was helpful. And is there any reuse that you're seeing as sort of HBM4 and 3E both coexist? Or just the fact that 3E is still pretty strong and prevalent, limiting the amount of reuse your customers can have?

Well, it's very hard for us to really know the 3E versus the HBM4. But I think gradually, the industry will go to HBM4, and this will be the product that most people will be using. And definitely, the move to HBM4 is a very important opportunity for us. As we've discussed in previous calls, there are a lot more dense structures. The requirements there are much higher. It is more metrology and inspection intensive. So all in all, this move is very positive for us.

Our next question will be from Charles Shi of Needham.

I want to explore the comparison between Hawk and Eagle G5. Hawk was initially targeted for high-end logic applications, while Eagle G5 seems to focus on productivity and cost-effectiveness. I had the impression that G5 was geared more towards memory, especially high-bandwidth memory, but it seems that the OSAT market might be shifting. Is there a change happening? It feels like Hawk is being adopted more quickly by customers, possibly including those in the memory sector.

No, that is not the case. What we are observing is that the Hawk is intended for high-end applications. For applications requiring a large number of bumps, such as 150 million or more, and with relatively shallow structures, these will definitely utilize the Hawk. The required accuracies and throughputs are extremely high in these scenarios. Additionally, applications focused on reaching 100 nanometers are also likely to adopt the Hawk. For those involved in front-end processes and hybrid bonding, who plan to eventually use the machine for hybrid bonding, they will naturally gravitate towards the Hawk. The G5, on the other hand, has thousands of machines already deployed in the market. As a result, some customers currently using the Eagle platform may transition to the G5 because of their familiarity and comfort with it. The G5 is known for its high flexibility, excellent accuracy, and strong return on investment, which ensures its continued popularity. However, for high-bandwidth memory applications, particularly those at the 4 and 5 levels, customers will likely choose the Hawk to some extent.

Okay. So is it fair to say for the memory market, especially for the HBM market, we still should consider G5 as the workhorse and Hawk is more deployed more selectively at this point?

The way you should look at it, we have hundreds of Eagles, many hundreds of Eagles already doing these applications. But I think some of the future capacity that will be built will be more tended towards the Hawk.

I would like to understand the expectations for China this year. Can you provide any figures, such as a percentage of total revenue or year-on-year growth? What are the expectations for China this year?

Well, first of all, the China expectation this year is all in all positive. We do not see any signs of weakness, and we expect to see the revenues in China, they're going to be, I would say, stable. And keep in mind that most of the sales to China are OSATs, which are engaged in a lot of applications. So it's a primarily stable market. I think there is growth in OSATs in general, in China. So I don't see any changes compared to previous years.

Our next question will be from Jim Schneider of Goldman Sachs.

Relative to the double-digit growth outlook you talked about for the year and some of your competitors who have cited 15% to 20% WFE growth for 2026. Can you maybe frame for us where you expect your overall revenue to fall this year relative to some of those broader WFE forecast? Would you expect the inspection market to sort of undergrow the broader WFE envelope this year? And if not, would you expect this is more of a timing issue where you have a little bit weaker first half of the year and then you sort of catch up in terms of revenue growth in 2027?

So first of all, we said in the prepared notes, that we are going to achieve double digits this year in 2026. Now it's too early to quantify at this time, but looking at our results, in the last few years, we always did better than the WFE because we are focused on the fastest-growing segments. But if I want to give you a little bit more color on what we are seeing this year. So compared to what we discussed here a quarter ago, we are seeing a much better visibility, and this is resulting from the new orders that we have received, a much better pipeline following our discussions with customers and understanding the forecast much better. We understand today the timing of the expected orders. So the full visibility and our confidence in 2026 and specifically in the second half is very high.

Okay. And then can you maybe just talk about how we should expect your gross margin trajectory to go throughout the year? I think you've previously cited that the improving ASPs on Hawk, et cetera, would drive gross margin expansion. Is this something you can expect that the gross margins to continue to increase throughout the year as you build volume?

Yes, absolutely. We are looking into an improved gross margin throughout the year. And as we expect to grow the revenue in the second half of the year, we expect to improve the margins. We did take certain measures to improve the bill of materials. We took other measures in terms of supply chain, and we believe that we are positioned well to benefit from this and improve the gross margin later in the year.

Our next question is from Shane Brett of Morgan Stanley.

I have a question on the competitive dynamics. Just has there been any change to the competitive dynamics for HBM sockets? Just how should we think about your share of these memory customers?

So thank you for the question. So I want to make it very clear. We have not lost any market share to competitors. We also estimate that we will be able to increase our market share this year. I talked in the prepared notes about our efforts in the R&D that yielded exceptional solutions and capabilities. And these capabilities will enable us to increase our market share by penetrating into more inspection and metrology steps.

Great. That's very encouraging to hear. And for my follow-up, so some OSATs have mentioned pretty monstrous CapEx numbers throughout this earnings period. Just can you talk about your business with these customers? And just how a broadening of advanced packaging beyond the leading foundries benefits Camtek?

We definitely see the CoWoS technology transitioning to OSAT, with some referring to it as CoWoS while others use similar terms. Overall, OSAT is our primary area of expertise where we excel and dominate the market. We have hundreds of machines in this space, which constitutes about 50% of our business. The shift towards these technologies is crucial for OSAT and will certainly benefit Camtek. Additionally, it's important to note that while OSATs play a significant role in our business, we also maintain a strong presence with all the major players. For instance, when we discuss HBM and CoWoS, TSMC comes to mind; they are among our customers, and we hold a solid market position, aiming to continue growing alongside them.

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

I wanted to start stitching together a couple of earlier answers and implications for the year's growth. So it sounds like what you're saying, guys, with the real strong uptake you're getting across OSATs, IDMs and foundry for Hawk and Eagle that this year, there should be real strong IDM growth since that's where you've got your HBM exposure, good growth in OSAT and I suspect good growth in foundry with 2.5D. Is that a fair characterization of how we should look at growth across your different customer classes?

I believe this is an excellent perspective, and I completely agree with your observation. This aligns with our view of the market. As you mentioned, the major customers, particularly the HBM and foundries, will be very influential this year, and we anticipate growth in that area. The OSATs, which account for about 50% of our business, are continuing to invest in advanced packaging applications and are beginning to implement the CoWoS of the AI technologies, and this is genuine. They are openly discussing this and also mentioning significant growth this year. We already have purchase orders in hand and a strong backlog, and the outlook remains very positive.

That's helpful. And then the follow-up is related to one of Jim's questions, but also tying in some further color on gross margin. So can you just identify, guys, if we were to see demand go from double-digits, low end, 10% towards something that was more WFE like? Do you feel like you have the materials, the production capacity, the shift flexibility to meet that degree of upside through the year? And then Moshe, are there any things we should be aware of on gross margin, if you were to be chasing demand that was near WFE like? And can you just clarify what we should expect with gross margin in the first quarter, given the decline in volume? Are we going to stay at 51% plus? Or do we go down to 50%? And then what about the OpEx contour through the year?

Before you answer, so I just want to answer regarding the operational aspects. So we are ready to respond to any demand that will come from the market. So whether it will be very high teens or mid-teens or whatever the number will end up from the operational point of view, we are ready.

We have the capacity, inventory, and supply chain prepared for growth. From an operational perspective, we are fully aligned. Regarding gross margin, we expect improvement in the second half of the year, while the first half will remain in the range of 50.5% to 51.5%. This is the current gross margin level for the business. In terms of operating expenses, we anticipate an increase in the first half due to R&D investments. We see many opportunities ahead and expect a strong second half, which is why we plan to invest in R&D in the first half, leading to an increase in operating expenses as a result.

Our next question will be from Edward Yang of Oppenheimer.

Ramy, you talked about maintaining market share and expanding it. Are you watching any specific time frames or decision points? Do you have any systems under qualification? Just wondering if there are any specific catalysts you have in mind.

So in general, I cannot disclose exactly the time frame and the decision times. What I can tell you is that there are several steps, different customers that we already confirmed, and we're already shipping machines to those steps or will ship as we move into the year. We are in a very good position at other places to capture additional steps and these are based on work that has been done already and being confirmed by the customer. We are more going into the validation process. So definitely, we are very confident that not only we will maintain our market share, we will be able to increase it and go to additional steps in 2026 as the year progresses.

Got it. For my follow-up, you mentioned that you consistently perform better than WFE. There have been varying opinions on WFE growth for 2026. Some larger depth and edge players are suggesting growth above 20%, while one of your process control peers expects low double-digit growth. I'm just curious about your perspective.

I said before in one of the previous questions that from our point of view, it's too early to quantify the number. We will start with the year, and we'll see how things progress, and then we will meet every quarter. And I think we will be far more knowledgeable as we go ahead. But definitely, it's too early to quantify.

Our next question will be from Gus Richard of Northland.

When I look at test and probe, those companies expect to be up sequentially in Q1. You're down sequentially in Q1. I know they're different applications. I know they're different things, but they tend to move together. And could you sort of help explain why there's this divergence in the current quarter?

Gus, a slow start of 2026 is primarily driven by the timing of the orders of our customers. A big part of their capacity expansion and especially the big ones is planned for the second half. And this is the reason for the slow start.

Okay. Looking at KLA's results, they mentioned that their packaging-related revenue increased by 70% last year. I am curious if they are targeting different markets since your packaging revenue in advanced packaging didn't perform as well. What accounts for the difference between their growth rate and yours?

So first of all, I don't know for which baseline they're counting. So I don't want to make a mistake here. But I suspect that we are not talking here apples to apples, but we are comparing here some different steps and some areas that we do not play in. From our point of view and what we see in the segments and what we call, in our markets, in our applications and the customers that we serve, everybody, we have not lost any market share. On the contrary, we expect to gain, and we expect even to increase our total available market. So from that point of view, we feel comfortable. I think we discussed in previous calls how we see the competition with KLA. We understand the strength of KLA. But definitely, we have a lot of advantages in the fact that we are well entrenched in the market that we're playing in. We have an inherent advantage by offering on our tools, the 3D metrology and the 2D inspection, which is very important to advanced packaging. And I think in general, the unique combination of technology, scale, and flexibility is a key reason why we are performing so well in this market, and I don't expect this to change.

Our next question will be from Michael Mani of Bank of America.

I wanted to inquire about the chiplet business. While I understand you don't break this down anymore, could you provide some insight on how much of last year's growth, particularly in AI, came from the chiplet segment? Looking ahead to this year, especially regarding your main customer in the chiplet business, how do you view your market position? I believe you mentioned feeling positive about it, but could you provide more details on this? What applications are you potentially gaining market share in, particularly on the 2D side? Is this part of the reason for the increased strength you're seeing in the second half? Any clarification would be appreciated.

So first of all, we did not break down whether it's chiplets on HBM; we refer to the business as high-performance computing, which makes up about 50% of the business. It is well known that Camtek is a significant vendor to TSMC. Yes, we are involved and hold a share of the chiplet business. We are taking several steps in this area, though I cannot comment on the specifics of these steps. I expect this business to be healthy. As mentioned earlier, we did not lose any market share and expect to gain market share, including in the chiplet segment. We view the HBM market and the chiplet or high-performance computing space positively.

Great. For my follow-up, could you elaborate on your capacity? I know you mentioned this earlier, but previously you talked about a capacity potential of around $650 million from a revenue perspective. Considering the significantly stronger demand environment over the next couple of years, do you believe that footprint will adequately meet that demand? If you needed to increase capacity, how quickly could you expand from a lead time standpoint? Alternatively, given your solid cash position, would you consider acquiring capacity from other vendors?

Yes, Michael, let me address your question. At this point, we don't have any limitations on our current capacity. We've made some internal changes and improved our processes. We are becoming increasingly efficient year after year, allowing us to enhance our existing capacity, which is now over $700 million. I don't anticipate any issues. Additionally, we have started expanding our capacity, although I can't provide specific details at this moment. We expect to introduce additional capacity in Europe by late 2026. Overall, our capacity position is strong, and our operational organization is well-structured. Performance is excellent, and we have enough buffers in place to handle even better-than-expected business levels, so I feel very confident in our situation.

Our next question will be from Vedvati Shrotre of Evercore.

So I kind of wanted to understand how far your visibility is going now. We all understand it's a strong demand environment. Your backlog is growing. You're seeing the orders come in. So do you have visibility going beyond like 4Q '26 now?

Vedvati, so thank you for the question. So I alluded more in my discussion previously to '26. But I think we're starting to see also signs of '27. And I would say it's obviously not the backlog, but it's definitely customers are talking to us about shipping machines in the first and second quarter of '27. So yes, the industry is ramping up, and it's starting to think not just '26, '27. And so I would say I haven't gone into the numbers very thoroughly. But definitely, we are seeing signs of '27, people thinking about '27 and putting some numbers, some initial numbers. So it's a positive answer.

Understood. And for my follow-up, so I know this was asked a couple of times on the call, and so I've tried again. But the advanced packaging growth by some of the depth and edge players is in the 40% levels. And then if you listen to your bigger peer on process control, they think it's like high teens kind of level. So there's a big disparity on how the advanced packaging market would look. And since you guys, I think, have the highest exposure, like could you give us a sense of where that lands for you and what you're seeing?

So I think the main applications today, when you talk about advanced packaging, I think the leading applications are Fan-Out. There is a lot of Fan-Out. And there are many variations on it. From high-resolution Fan-Out to regular Fan-Out. But definitely, this is a big market. And of course, what's called the regular bump inspection in the OSATs, everything today is advanced packaging. And the growth of this market, it's definitely double digits. How far in the double digits? I can't pull this number from my sleeve now. But it's too soon to quantify how it will be in '26, but definitely, it's a good growth number.

So that will end the Q&A session. Before I hand over to Rafi for his closing statements, in the coming hours, we will upload the recording of the conference call to the IR section of Camtek's website at www.camtek.com. I'd also like to thank everybody for joining this call. And Ramy, please go ahead with the closing statements.

I want to express my gratitude to all our investors for your ongoing interest and support in our business. Special thanks go to our employees all over the world and management teams for their outstanding performance. I want to mention the Chinese New Year that's celebrated by many of our customers and many of our employees around the world. I would like to extend our best wishes for them and for a successful and prosperous year of the Fire Horse. I look forward to our next conversation in the upcoming quarter. Thank you, and goodbye.