Camtek Ltd. (NASDAQ:CAMT) Q3 2022 Earnings Call Transcript

So, as I said, if we talk together, the backlog and the pipeline, it’s, look, I would say pretty normal, but, I would say to see when the pipeline will be converted to backlog, this can take time and probably as before we will know more before we start the new quarter, we get a better picture.

Brian Chin: Okay. Got it. Yes, I mean, I’ve €“ this might have be based on a huge sample size, but I’ve noticed or observed sometimes Q1 kind of, maybe its seasonal tends to be sequentially up in terms of revenue. But maybe listening to what you’re saying, Rafi, maybe it’s, you could take a step down a little bit given sort of, you don’t have as much backlog, the define backlog, moving into next year.

Rafi Amit: Ramy can contribute that?

Ramy Langer: I, let me try and be a little bit, definitely our visibility at this stage looking into 2023 is limited. Now the backlog is healthy, and we have a very strong pipeline, and I think as Rafi said, it is too early to assess how quickly this pipeline will turn into orders. And this is a little bit different than where we were, let’s say a year ago, but definitely at this stage it’s too early. We’ll need to wait for another few weeks until we’ll be able to really give a better assessment on the first half of 2023.

Brian Chin: Okay. Fair enough. I’ll hop out to move the line along. Thanks a lot. Bye.

Operator: The next question is from Tom O’Malley of Barclays. Please go ahead.

Tom O’Malley: Hey, thanks for taking my question guys. I just had a question on the December quarter. So, so clearly visibility isn’t as strong as it was before, but you guys are guiding to flat business. Could you just talk about how much of the December quarter is actually booked today already? And how much is influx as the quarter goes along?

Rafi Amit: Now the current quarter is fully booked and it’s really now is a question of executing the shipment and that’s it. We don’t expect any surprises this quarter.

Tom O’Malley: Okay. And then if I look at the mix of business, clearly CMOS image sensing is a little weaker, I think you said in the prepared remarks that that’s coming in below 10%. It’s already kind of tracking well below that, so that makes sense. But in the quarter for September, you saw a pretty big decline in what you’ve called the other or general business. What contributed to that decline sequentially and will that go down again in December?

Moshe Eisenberg: The decline. Tom, I’m not sure about which decline. I mean, we are seeing, and I think we said it in the prepared remarks, our business for the Advanced Packaging is around 60%. It has been in the last few quarters, and it’s a very similar rate. The front-end and the compound semi is about 25%. So overall, I would say that 85% of the business is very, very stable. Now, the rest, CMOS Image Sensor historically was above 10%. This year it’ll be a little bit less, and this will be compensated by what we call general 2D inspection applications, things like MEMS and other applications which are smaller in the volume. But from the business point of view, there aren’t any differences or declines. The only change, I would say is the CMOS Image Sensors, and this is strongly related to mobile phone sales.

Tom O’Malley: Got it. Got it. And then just one more on the coverage. So totally understandable that you’re seeing limited visibility. I think broadly markets are just getting weaker in general. And you’re kind of talking about a semiconductor market that’s down next year. Have you thought about what your business can grow in a scenario where wafer fab equipment’s down 20% plus? I’m just trying to understand. You guys have clearly outgrown the market for the past several years. In a market that’s down, say 10% or 20%, how much growth do you think you see off of a market? That’s a little weaker next year. Thank you.