Camtek Ltd.

Ladies and gentlemen, thank you for.

Team at Camtech. All participants other than the presenters are currently muted. Following the formal presentation, I will provide instructions on how to participate 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 Camtech'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 on the call today, we have Mr. Raki Amit, Camtech CEO, Mr. Moshe Eisenberg, Camtech CFO, and Mr. Rami Langer, COO. Rafi will open by providing an overview of Camtex results and discuss recent market trends. Moshe will then summarize the financial results of the quarter. Following that, Rafi, Moshe and Rami will be available to take your questions. Before we begin, I would like to remind everyone that certain information provided on this call are internal company estimates unless otherwise specified. This call may also contain forward-looking statements. These statements are only predictions and may change as time passes. Statements on this score are made as of today and the company undertakes no obligations to update any of the forward-looking statements contained, whether as a result of new information, future events, changes in expectations or otherwise. Investors are reminded that these forward-looking statements are subject to risks and uncertainties that may cause actual events or results that differ materially from those projected, including as a result of the effects of general economic conditions, the effect of the COVID-19 crisis on global markets and on the markets in which we operate, including the risk of a continued destruction of global markets. to our and our customers, providers, business partners and contractors' businesses as a result of the outbreak and effects of the COVID-19 pandemic. risks related to the concentration of a significant portion of cantex expected business in certain countries particularly china from which we expect to generate a significant portion of our 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 risks identified in the company's documents filed with the SEC. Please note that the safe harbor statement in today's press release also covers the contents of this conference call. Furthermore, during this call, certain non-GAAP financial measures will be discussed. These are used by management to make strategic decisions, forecast future events, and evaluate the company's current performance. We believe that the presentation of non-GAAP financial measures are useful to investors' understanding and assessments for the company's ongoing cooperations and prospects for the future. A full reconciliation of non-GAAP to GAAP financial measures are included in today's earnings press release. And now, I'd like to hand the call over to Rafi Ali, Camtech CEO. Rafi, please go ahead.

Thanks, Kenny. Good morning and thank you for joining our call today. We continue the momentum of growth from quarter to quarter. In Q3, we demonstrated another record financial performance. We ended the third quarter with $70.7 million revenue, over 50% gross margin, with 30.6% operating margin, and we generated over $16 million in cash. The strong profitability is due to several factors. An increasing revenue, attractive product mix, the leverage that we have in our financial model, and the fact that the increase in expenses doesn't keep pace with a rapid growth in sales. We are in a process of gradual increase in R&D investment and marketing channels to respond to market and customer demands. I will further discuss it later. We estimate that we will continue to see a moderate revenue increase for the next quarter, and we see positive signs for the first half of 2022. Our revenue guidance for the first quarter is $72 to $73 million. The reasons for the increase in demand of semiconductor, as we mentioned in previous calls, have not changed. we expect ComTech to continue benefiting from all these trends in the next few years. In the third quarter, approximately 50% of our sales were for inspecting advanced packaging wafers, especially for fan-out application supporting mainly mobile phones. 20% of our revenue were for inspecting compound semi-wafers. This way they are used for power devices and RF devices, which will go into mobile phones and for automotive industry, especially for electronic cars. About 15% of our sales were for front-end applications, which continue to grow and will account for about 15% of our business this year. A few words about the potential of the compound semi market. A major segment of compound semi is silicon carbide used for power device market and has been driven by power supply applications. The automotive industry is becoming the major market for silicon carbide applications following notable adoption by Tesla in 2018. Since then, more Tier 1 OEM components and car makers have made announcements on their adoption of silicon carbide technology in some of their products. In the prospering silicon-carbide power device market, the automotive segment is the foremost driver, and as such will hold more than 50% of total device market share in 2025. Other applications include LiDAR and face recognition. The compound semiconductors, and especially silicon carbide manufacturing process, is unique and requires dedicated solution for inspection and metrology. In Q3, sales to Europe and the U.S. accounted for about 18% of the total sales, and I expect continued growth from these territories. China continues to be our largest territory this quarter. We are aware of the energy problem that exists in China and may affect our customers, but we also understand the importance and strategic role of the semiconductor industry to China. From our discussion with several customers, we believe that the semiconductor industry will get the priority in energy allocation. We are monitoring the China situation closely. Lately, we have won a major evaluation at the global tier one player and received an order for our latest Eagle model. We expect additional order in 2022 from this customer. This month, we are celebrating the shipment of 1,000 ecosystem since we introduced this model in late 2014. Our Eagle platform was originally designed with modular concept. Since the production of the Eagle, we have developed three new generations of the same basic platform and have recently started to ship the fourth generation. This modular design has enabled us to maintain our leadership position and to ramp our business while meeting our customer requirements in a very efficient manner. In addition, we are in the process of developing new products based on new technologies that we intend to introduce in 2022 and beyond. We will continue to invest in R&D and adjust the level of investment to the technological challenges we see in the coming year. R&D capabilities is a key factor to continue maintaining our leadership position and meet our customers' roadmap. To summarize, high demand for semiconductor components have been leading to an increased demand for inspection and metrology systems. ComTech is strongly positioned in the market, and we expect the fourth quarter to close an exceptional record year in sales, growth, and profitability. I would like to hand over to Moshe, for more detailed financial discussion of the financial result. Moshe. Bye.