Camtek Ltd.

Ladies and gentlemen, thank you for standing by. Welcome to Camtex's first quarter 2020 results conference call. All participants are presently in the listen-only mode. Following management's formal presentation, instructions will be given for the question and answer session. As a reminder, this conference is being recorded. You should have all received by now the company's press release. If you have not received it, please contact Camtex's investor relations team at GK Investor and Public Relations at 1646 Thank you and good day to all of you. I would like to welcome all of you to Camtech's first quarter 2020 results conference call and I would like also to thank Camtech's management for hosting this call. With us on the line today are Mr. Rafi Amit, Camtech's CEO,

Mr. Moshe Eisenberg, Comtech CFO, and Mr. Ramy Langer, the Comtech COO. Rafi will provide the overview of Comtech results and discuss market trends in the first quarter of 2020. Moshe will then summarize the financial results of the quarter. We will then open the call to take your questions. Before we begin, I would like to remind our listeners that certain information provided on this call are internal company estimates unless otherwise specified. This call also may contain forward-looking statements. 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 events, changes in expectation, or otherwise. Investors are reminded that actual events or results may adapt their material from those projected, including as a result of changing industry and market trends Thank you. In addition, during this call, certain non-GAAP financial measures will be discussed. These are used by management to make strategic decisions, focus future results, and evaluate the company's current performance. Management believes that the presentation of non-GAAP financial measures is useful to investors' understanding and assessment of the company's ongoing cooperation and prospects for the future. A full reconciliation of non-GAAP to GAAP financial measures is included in today's earnings release. I would now like to hand over the call to Rafi Amit, ComTech CEO. Rafi, go ahead, please.

Good morning and thank you for joining our call today. The first quarter 2020 shipment amounted to approximately $33 million in line with the company's original guidance for the quarter. However, recorded revenues were $30.2 million due to incomplete installation of a few machines caused by the coronavirus situation. Based on order on hand, we have a very good visibility into the second and third quarters. And we expect our second quarter revenue to be $36 to $38 million. Despite the coronavirus situation, the company is experiencing strong business momentum. The demand from our customers for various applications point to strong record and third quarter we are well organized to execute our plan. I would like to reiterate point mentioned on our last call regarding the gross margin in the first half of 2020. Our strategy is to expand our installed base worldwide in the mid-end, the back-end and in the end of the line of the front-end. We are already the leading 3D metrology supplier and in the process of becoming a leading supplier in the 2D inspection as well. For the first half of 2020, we have received orders from some of our customers for multiple 2D inspection machines with basic configuration and with relatively lower ASP, which resulted in lower gross margin. In the first quarter, we indeed reported as expected. a relatively low gross margin of 45% due to these product peaks and the lower revenue. Customers who have ordered machines with basic configurations also have more complex applications and in the future they are expected to purchase machines with more capabilities at a higher ASP. Looking to the second quarter, our revenue guidance is $36 to $38 million with continued revenue growth and improved profitability in Q3. We are already seeing a change in trend with orders for the third quarter for machines with more advanced capabilities compared with the first six months. Let me give you some of the highlights of the first quarter. Taiwan and China were the largest territories in the quarter. Since the beginning of the year, we have received orders for approximately 50 machines for CMOS sensor applications. Machine installation will be completed by the end of the third quarter. We have received orders for multiple machines from a Tier 1 RF customer mainly for 5G applications. We deliver the first Golden Eagle inspection machine for 600x600 mm panel size. This machine is for Tier 1 customers for fan-out applications. We expect to deliver the second machine to a different customer during the second quarter. Our customers believe that fan-out packaging on panel will continue to grow as this is a cost-effective approach. Needless to say that we continue our R&D efforts together with Tier 1 customers to develop new inspection and metrology capabilities Supporting the next generation packaging technologies. Regarding the Corona pandemic and its impact on the global economy and on our business. So far, we are performing well, but we are monitoring the situation closely and we will update our plans as things change. I do hope that for all of us, we can put the pandemic behind us and move back to normal life. I would like to specifically thank our employees for their fantastic work and ability to adapt quickly to this new environment. I would like to hand over to Moshe for a more detailed financial discussion of the financial result. Moshe.