Camtek's Q1 2025: Unraveling Contradictions on HPC Growth, China Market, and Gross Margins

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Revenue Growth and Market Share:
- Camtek Ltd reported record revenue of $119 million for Q1 2025, an increase of over 20% year-over-year.
- Revenue distribution was 45% to 50% from high-performance computing applications.
- Growth was attributed to increased demand in the HPC segment and technological leadership in advanced packaging.

Profitability and Margin Expansion:
- The company achieved a record gross margin of 52%, an improvement from previous quarters.
- Operating income rose to over $37 million, a nearly 30% increase compared to the same period last year.
- Margin expansion was supported by a favorable product mix and improved operational efficiency.

Innovation and New Product Launch:
- Camtek introduced two new products, the Eagle G5 and Hawk, which are expected to significantly contribute to 2025 revenue.
- The successful launch of these products has bolstered the company's competitive position in advanced packaging.

Customer Engagement and Market Position:
- The company sold systems to over 35 different customers during the quarter.
- Camtek's diverse customer base, spread across different regions and technological leadership, provides resilience against market uncertainties.