For more information, regarding the risk factors that may impact Camtek's results, I would encourage you to review our earnings release and SEC filings specifically the forward looking statements and risk factors identified in Camtek's 2024 Annual Results PR and other such risk factors discussed in the latest annual report on Form 20 as published on 03/21/2024. Five, Camtek does not undertake the obligation to update those forward looking statements in light of new information or future events. Today's discussion of the financial results were presented on a non GAAP financial basis unless otherwise specified. As a reminder, a detailed reconciliation between GAAP and non GAAP financial measures results can be found in today's earnings release. And now I'd like to hand the call over to Rafi Amin, Camtek's CEO. Rafi, please go ahead. Okay. Thanks, Kenny.

Hello, everyone. Come to conclude the first quarter with record performance. Q one revenues reached $119,000,000 reflecting a year over year increase of more than 20%. The quarter also saw a significant improvement in gross margin, which rose to over 52% contributing to a record operating income of over $37,000,000, a nearly 30% increase compared to the same period last year. The distribution of revenue was 45 to 50% from high performance computing applications and about 20% from other advanced packaging applications. The remaining revenue was distributed among CMOS Image Sensor, compound semiconductor, front end applications, and general two d application. As OSATs began producing modules for the HPC market, it is challenging to determine which of our systems installed at OSAT's were specifically intended for HPC modules versus other advanced packaging application. As a result, we are providing a range. During the quarter, we sold system to over 35 different customers with many purchasing only one or two tools. This highlights the robustness and diversity of our business model. There is a broad consensus that the tariff policy and the geopolitical situation have created some uncertainties in the market environment. However, the tariff policy does not direct affect us in any material way.

As most of our cells are not targeted at The US market, and our manufacturing is based in Israel and Europe. That said, the geopolitical issues and tariff policy have been raising concern particularly regarding their potential negative impact on the global economy, and the demand for end products containing electronic components and therefore affects visibility in our market. Regarding the impact on Camtek business, currently, we have not seen any impact on our business in term of delays or order cancellation. We have customer base spread across different regions and we have technological leadership and maintain competitiveness. Regarding our guidance, we continue to see strong momentum heading into the second quarter. And based on current orders, our pipeline and ongoing customer engagement, we are guiding q two twenty twenty five revenue in the range of 120,000,000 $123,000,000, representing approximately 18% year over year [indiscernible] compared to the second quarter of twenty twenty four. In addition, we have a healthy backlog for q three and expect a solid quarter. Regarding HPC segment, we continue to see ongoing investment in the HPC segment with different with differing momentum across regions. Some experiencing slower investment while other progress at a faster pace.

Our customers, including OSAT, are constantly expanding their capacity in both coax, coax like, technologies, as well as HPM. Our primary growth engine for the upcoming years will be advanced packaging, particularly in high performance computing. Supporting the AI applications. New technologies are expected to be introduced, for example, HBM device maker are preparing for higher memory content as well as transition to h b m four next year. The outcome is expected to drive new tools, requirements, with better technical capabilities. We believe we are in a very strong competitive position supported by the successful launch of two new models, the Eagle g five and the Oak. Both of which have been extremely well received and highly valued by our customers. These two models bring cutting edge technology the market. And we expect them to account for a significant portion of our revenue this year. This is a significant milestone reflecting the strong confidence our customer have in our latest technologies. A noteworthy example of our recognition and support of our technology is the recently announced Intel Epic Supplier Aware. The Intel Epic aware owner top performances in Intel supply chain for their commitment to epic performance. [indiscernible] partnership, inclusion, and continuous improvement.

Out of thousand of Intel supplier globally, only a few hundred qualify to participate the EPIC supplier program. To earn the Intel Epic supplier award, companies must not only meet but exceed Intel's highest ex expectations and achieve ambitious strategic objective that align with Intel core priorities. In conclusions, we are fully aware of the global business uncertainty. And we remain in close dialogue with our customers to continuously assess and monitor the situation. However, I believe that Camtek diversify customer base technological edge and our strong market position in the advanced packaging market provide us with great resilience compared to our peers. We are a leading provider of air of AOI system offering highly competitive capabilities in the advanced packaging market. [indiscernible] with a part particular focus on the fastest growing segment of the HPC. Our customer base is geopolitical diverse, and we are proud to serve over 200 active customers worldwide. The unique combination of scale and flexibility is a key reason why many customers choose to work with us over larger competitors. Who are offer who are often slower to respond. And now Moshe will review the financial results Moshe? Thanks, Alfie.

First quarter revenues came in at a record hundred and $18,600,000 an increase of 22% compared with the first quarter of twenty twenty four. The geographic revenue split for the quarter was Asia 91% and the rest of the world 9%. Gross profit for the quarter was $61,800,000. The gross margin for the quarter was 52.1%, an improvement from 50.6% reported both in the first quarter of last year and previous quarter, This is on the high end of our range supported by a favorable mix in the quarter. Operating expenses in the quarter were $24,400,000, compared to $20,200,000 in the first quarter of last year and $23,100,000 in the previous quarter, In the last few quarters, we have been increasing our r and d and sales and SG and A expenses to support the growth in revenue. Operating profit in the quarter was $37,300,000 compared to the $29,000,000 reported in the first quarter of last year, and $36,300,000 in the fourth quarter. The increase is due to the increase in gross profit partially offset by the increase in operating expenses. Operating margin was 31.5% compared to the 29.9% in 30.9% respectively. Financial income for the quarter was $5,400,000, a decrease from the $5,600,000 reported last year and from the $6,200,000 in the previous quarter, The decrease was caused by exchange rate differences versus the US dollars.

Net income in the first quarter of twenty twenty five was $38,700,000 or 79¢ per diluted share. This is compared to a net income of $31,300,000 or 64¢ per share in the first quarter of last year. Total diluted number of shares as of the end of the first quarter was 49,300,000.0. Turning to some high level balance sheet and cash flow metrics. We generated $23,600,000 in cash from operations in the quarter Cash and cash equivalents including short and long term deposits and marketable securities As of the end of the quarter, were $523,000,000 This compared with $501,000,000 at the end of the fourth quarter. Inventory level increased to $141,500,000 from 123.1 The increase over the quarter is mainly a result of building inventory for the two newly introduced products the Eagle Gen five, and Hawk, to support their sales in the coming quarters, which is expected to be significant. Accounts receivable remained stable at around hundred million dollars, which represents seventy seven days outstanding. As Rafi said before, we expect revenue of between hundred and 20 to hundred and $23,000,000 in the second quarter. And with that, Rafi, Rami and I will be open to take your questions. [indiscernible] Thank you, Moshe.

At this time, we'll begin the question and answer session. If you have a question, I will introduce you and ask you to unmute, after which you may ask your questions. We have a lot of people on the call, I will take a few moments to poll your questions. Our first question will be from Charles Shi of Needham. Charles, please go ahead. Thanks, Kenny. Good afternoon. [indiscernible] The first question, your competitor reported not long ago, and they talked about, KOA, your your your largest process control competitor, coming into their field more around the submicron defect detection. I believe it's it's part of the two d AOI. Market. And especially around HPC type of applications. Do you or do you not worry about larger competitors like KOA coming after Google market? Especially three d metrology. We'll love oh, we'll love to hear some of your insights. Thank you.

Rami, could you Yeah.

Start? Yes. I will I will address you. So hi, Charles, and thank you for the question. And you know, we've already engaged with KLA on multiple locations and have consistently demonstrated that our systems are highly competitive. The advanced packaging is a highly dynamic market and demands equipment customizations and I would say very rapid responsiveness.

We are Camtek is a midsized company. And as such, it is well positioned to better meet the specific requirements of this unique market. On top of it, our latest products, the Hawk and the Eagle g five offer competitive advantages and where confident in our ability to continue and expand our business and market share in this in in facing the competition coming from KLE. And I would I wanna summarize it again You know, we have a unique combination of scale and flexibility that is a key reason why many customers choose to work with us over the large competitors who are often slower to respond.

Thank you, Rami.

Another question Raffi, I think you talked about h b m four. New technical requirement, Wanna ask you, or or anyone on on your team, how do you think about the product positioning in h b m four is, because you have two new products, Eagle g five versus Hawk. And as I understand that ASP throughput are very different between those two. Platforms. And and and more importantly, I think that going to h b m four, as you your customers look to I mean, either upgrade the technology, expand capacity, Do you think they're gonna they're gonna lean towards buying new tools from you? Is the new platforms or do you provide potentially upgrade path for them to maybe upgrade your the the existing install base to really meet the new technical requirement. Thank you.

So so you know, Charles, people here buy new equipment. They don't tend to upgrade their current equipment. But I think we are in a very good position. No doubt. Some customers will want the Hawk in order to provide the best possible performance and specifically throughput at a lower footprint. That's definitely an advantage and one of the reasons we developed the hook So I think there will be a combination of those customers for specific applications that will take the hook What I think the ideal with its, you know, very large installed base in this market, I believe some of the customers will still wanna go with the new versions of the of the Eagle. So I think this even puts us in a much better position compared with our competitors that we are here really with multiple selections or multiple products approach as we enter this market.

Thank you. Maybe lastly, you wanna this this every quarter, I I think some of us gonna ask this question. HPC revenue 45 to 50% of the total revenue in q one What's the what's the current view for the full year? How much will HP account for the total revenue for the on on on the full year basis? Based on the current outlook right now? Thank you.

So so, you know, it's very hard to talk, you know, how look. But at least in the foreseeable future, I think we'll be in a similar range. You know, this can differ from a quarter to quarter. It's really based on on shipments. But overall, the HPC continues to be a strong segment of us, and we see the the growth potential and and there's no further comments on it. Thanks.

Thanks. Thanks, Charles. Our next question is going to be from Matt Prisco from Cantor Fitzgerald. Matt, you may go ahead. And talk.

Guys, thanks for taking the question.

So with the healthy backlog that you outlined in three q, how are you now thinking about growth overall into the back half of the year? And can you maybe walk us through the primary puts and takes you're thinking through today and perhaps type of visibility you have from customers at this point? Thanks.

So I think we we we said it very clearly in our prepared notes, and and I want to be able to share more, like but know, we we gave the guidance of increased revenues in the second quarter There, obviously, we we we really understand where the business is going to. As we go into the third quarter, we see a solid business as well. The backlog, the pipeline, and so so we feel very comfortable about this as well. To go beyond that, it is very hard in our business and we will be in a better position to discuss the fourth quarter, I believe, in a couple of months.

Thank you. And then maybe an an update on where you stand on your new products. It sounds like you're calling for now revenue in 2025. Sounds like a little more than three months ago, and you're talking tens of millions outlined previously. So I guess, what has what has changed versus three months ago there? Can you talk about any new waters customer feedback? New applications that may be opening? Additional color would be great.

Thank you. Yeah. So so definitely on on this on the new products aspect, definitely, we have a lot of good news. I think we are seeing performance as we expected from the new machines They're really meeting exactly the specification in certain cases even you know, do even better than what we expected. So, yes, customers are are continuing to order. We've received more orders. For both products and I think on the g five, definitely it provided us a few advantages over the competition in areas that we fall we felt that we were not strong enough and and and I think the market is reacting very, very positively for it. And specific applications, we're able to take more business than we expected previously. And on the hook, yes, it's gone through a application and through the evaluations. We got excellent feedback from our customers. We got orders. And we are shipping them. And as we said, it will be significant revenues in this year for both product lines. Both product lines will will produce significant revenues and that's definitely a great result. And, you know, we chose also what we discussed a quarter ago that our customers have confidence in products we bring to the market and we definitely are showing it [indiscernible] we we are shipping those products as we speak.

Thank you.

Thanks, Matt. Our next question is from Tom O'Malley from Barclays. Tom, you may go ahead and ask.

Guys, this is Kyle Buschin on for Tom O'Malley. Thank you for taking our question.

So on the gross margin front, you guys talked about hitting a higher point with new with new mix. Can you kind of talk about some of the puts and takes going forward, and especially as you ramp these new product lines, when you expect them to be accretive to margins and kind of how that shapes through the year?

Okay. So you know, we we've mentioned in the in the prepared remarks that the the gross margin improvement is a result of the product mix. You know, we expect next quarter to be within the 51 to 52% range as well. And as we are starting to ship more and more units from the new product, both the gen the g five and the the Hawk this will have a positive contribution to the gross margin gradually. So we expect to see a more significant improvement to the gross margin only next year, but still, you know, we are definitely on the high end of the gross margin level.

Very helpful. Thank you. And then for my follow-up on the tariff point, you guys mentioned that you're not really seeing any headwinds from your business just based off of your manufacturing locations and your customer mix. On the flip side, do you guys see, like, opportunities for share gains versus some of your competitors that may be having more impacts from tariffs or uncertainty in this environment? [indiscernible] first of all, you know, you you've seen the news. I mean, this is something that is changing every day, and I think in this case, there is a ninety days truce by truce, you know, that they decided only to go down to percent or whatever the numbers are. So, definitely, this is something that is changing We don't see any competitive advantage here or anything that is going to change the picture. And we are monitoring the situation.

You.

Thanks.

Our next question is gonna be from Blayne Curtis of Jefferies. Blayne, please go ahead.

Thanks for taking my question. I wanted to go back to I think you mentioned maybe you can talk about, HPM versus kinda COWASP Outlook, and you mentioned some different geographic trends. It seems like one of the Korean customers is digesting. That what you're seeing? And I guess, HBM, are you seeing strength elsewhere?

Well, you know, these are two questions while I try and and and bundle them. So, obviously, you know, our expectations in in both our markets are are based on discussions with customers market analysts, and and, you know, trying and understanding what this market is going. So you know, if I look at the HBM, definitely, is growth going to be in in the forthcoming years. And and, you know, the application today is the is is primarily the the AI the server based AI, which continues to fuel you know, the the HB and DRAM needs and and also in this case, also the Coas. But as you go down the road and you look at the longer term, there are going to be consumer devices such as AI powered laptops, smartphones, they're going to enter the market. And these emerging applications are still today in their early stages. But they're expected to generate substantial demand in the longer term. Now then so this is one aspect. Then there is the the transition for h b m three to h b m four. Now this brings additional opportunities with more inspection and metrology steps in the manufacturing process.

And when you look at the HBM, in '27, there is going to be a major change in the density of the memory. Again, that's gonna be a very big opportunity for added capacity. And I think on the COAS, the good news, and I see I think as we said, as Rafi said in the prepared notes, there is the move from you know, today, the the main foundries dominates the the CoA's capacity to the OSATs. We are already getting business from OSATs that are doing similar technologies. So, definitely, both of these applications are tied together We are very optimistic about this market. And I wanna say something specifically about the HBM. Where shipping tools to HBM for three d metrology to the inspection in '25 and we're expecting to ship in '26 as well. So so all in all, the two the, you know, the the the building blocks of the HPC are both healthy Of course, you know, it's early it's it's too early enough to talk about the growth rates every year. But if we look at the long term, both segments are going to grow significantly over the over the foreseeable future.

Thanks for that. And then maybe I wanted to ask about the trends out of advanced packaging. I guess if I did the math right, it seems like in the March, was 20%. Can you maybe just talk about where you're seeing strengths in kind of your outlook as you look to the June?

So if if we look outside of just the, you know, 45 to 50% So definitely, there is the advanced packaging. And that's anywhere between 15 to 20% additional business and this goes to the conventional applications And, you know, if it is fan out, that's still a strong a strong market. And there are other applications from bump inspection and so forth. So these are applications that will continue to grow and no doubt this is a business we're going to enjoy in the foreseeable future. And then there is something 35% what I call two d applications. And it goes from general two d application to front end steel compound semi. And even got some, you know, a bit of CMOS image sensors That's a business that they sort of picking up a little bit this year. So if you wanna look and I wanna talk a little bit as we've spoken in previous quarters As you can see, our two d business is very, very strong. [indiscernible] don't forget that out of the 70%, of the, what we call, advanced packaging a lot of it is inspection. So overall, our inspection business is much larger than our three d metrology business.

So that I would give you a little bit and and overall about the entire business.

And I believe that the next quarter will be similar.

Thanks so much.

Thanks. Our next question will be from Brian Shen of Stifel. Brian, please go ahead. [indiscernible] Good afternoon. Thanks for letting us ask a few questions. Maybe first question, just to clarify, solid quarter respect to third quarter mean flat or higher sequential revenue? And then also following up on the last few questions, is the company expecting year over year improvement in Logic or CoWoS revenue in 2025? And what portion of your HPC, Advanced Packaging revenue, is likely to be be co op versus HBM this year?

So let's start from the end. And and go backwards. So first of all, we we we we don't space we don't give details exactly how much the HBM versus the Coas This is changing from quarter to quarter. And we just provide the overall number for high performance computing. But both, as I said in my previous remarks, both segments are healthy. As to the revenues from '25, the overall revenues When we are talking 45 to 50%, obviously, this is on increased revenue. Compared to last year. So, you know, we will need to see how much is q four coming out, the final, in order to give the numbers but at least at this stage, the business is higher than was in '25. Obviously, we need to see in '24. As we move forward, we will be able to give you more information. And, definitely, in q three, You asked the question. I think it is too early in the game to say exactly how it will be compared to q two. As we said, it is solid. We have building the the backlog. We have the the pipeline in place. And so this is very positive But to give numbers, we would only provide them at the end of the next quarter.

Okay.

Fair enough. And then just quickly, Philip, maybe the follow-up.

Think, Rami, when you spoke about change in HBM density in 2027, are you specifically referring to hybrid bonding And how would you assess the competitive landscape in Camtek's positioning once that transition occurs?

No. No. I'm I'm referring to something totally different. If you look at the density of the HVM compared for a GPU, so it's the more today, it's about 2,288 gigabyte. It's it's supposed to go to be closer to terabyte. So this is from the internal what the NVIDIA GPU will require in order to run optimally. So so the memory that is gonna be required in 27 is gonna be significantly higher that is currently being used. So this is nothing to do with the manufacturing process. Regarding hybrid bonding, so we said in previous calls, I don't think it will be it it will take some time until we should see hybrid bonding in our markets in very high volumes. But once it is here, we see that as an opportunity We are already supplying machines to to pilot lines, We we we are going to be part of this application [indiscernible] there are many steps doing hybrid bonding that I think that we're gonna do both in inspection and metrology. K. Thank you.

Thanks, Brian. Our next question is from Gus Richard of Northland. Gus, you may go ahead and ask.

Yes. Thanks for fitting me in.

I was hoping you could give us an idea of what know, what your market share in HPC was from, say, last year and maybe a few years before, and what what the trajectory has been?

It's a very hard question, Gus. I can I don't know the number? I if I look at it, I think in most of the cases, that I can just recall from the top of my head, I think we've maintained the market or have grown it by going into more and more I would say, two d applications. So I I think we are on a positive trajectory in in this market. And I think when we move to the OSATs, I think this trajectory will be even more positive as we shall be doing both the three d metrology and a lot of the inspection steps. So looking forward, as I said and I referred to the competition coming with KLA, I think we have a very, very strong market position. We are leveraging a very strong very, very strong position in the three d metrology into the inspection portion, and I think we will continue to leverage it and increase our market share as we go along. I definitely yes. It is competitive, I think we're very well positioned from all the different reasons that we discussed earlier.

Got it. That was helpful. Thank you. And then you know, this is sort of when I think about you getting designed into a line when a customer makes a decision, a tool decision, know, are you getting designed into a full line? Is it specific applications and line, or or is it a generational decision where you know, you know, how to customers split the mix between yourself and and other other vendors in the market?

I think that when they design they start to design the initial one, for the buying reasons, they usually start with certain applications. But they they know what you can do. And from what I see our customer, it's evolving. And I think one of the reason that we're successful that our customers know that if there is a new application, even that the machine did not was designed that needs some upgrades or changes or upgrades, we will be there to support them. And I think this is a major part in the in the purchasing decisions that the customer makes when he understands there are a lot of unknowns. So I think from that point of view, I think it's a plus. On our side. Got it. And that's it for me. Thank you.

Thank you, Gus. Thanks, Gus. Our next question is from from Craig Ellis of B Riley. Craig, please go ahead and ask question.

Yeah. Thanks for taking the question, and good afternoon, team.

I I wanted to start out just understanding how order intensity and dynamics are tracking as we look at what transpired in one queue and and how things are trending. Two q to date and and with regard to order dynamics as as you look at what's coming in how much of orders are are coming in more on a turns basis for current quarter versus pipelining out to help that solid three q or even beyond that into four q? [indiscernible] [indiscernible] there is some uncertainty in the market. And as usual, during such times, customers are more cautious to release POs well in advance. Now it's it's too early to say if this will have any impact on our business especially given the latest news about the tariff discussions. [indiscernible] in any event, when I look at the situation, we have not experienced any material impact on our business in terms of delays or older cancellations. So I would say this describes the situation currently.

Got it. Thank you, Rami. And then the second question is really related to the target revenue level that the company has had for some time, 500,000,000. So if we annualize guidance, it looks like we're within about 3% of that. So congratulations on all the progress made over the last year or two in that regard. But the question team, is more about how your setting the sides and where you're setting the sides for your your team as we look out 2026 and 2027. How should investors and analysts think about the level of revenue that's possible for the business at this point with the 500,000,000 target now getting so close and and any color on specific drivers or or dynamics like that? That we would get to higher levels of attainment.

So I I I think there are two aspects for it. The I would say the more a little bit longer term and things that are up to us We have spent over the last year a lot of efforts in building the infrastructure to manufacture. Over $500,000,000 in terms of clean rooms here, and also in in Germany. So so from the capability to manufacture from all the different aspects, we're ready. Now on top of it, we've introduced two product two new product lines. The g five and the hop that we spoke a lot about. And you can see that within one year, of the introduction, we are going to to to achieve significant revenues of these two products, and these two products open to us applications that we couldn't do before. So, actually, what we have done if you take from the from the inspection and metrology equipment, have made in here, our the eagle and the hawk, are going to be able to address more applications [indiscernible] we can see ourselves growing the business into new applications. And on top of that, we have the acquisition we made at FRT, that is also going very well.

Getting into new applications, doing things that we couldn't do before, And, also and this is very nicely tied into our current business. So if I look at the things that we have achieved, that I just discussed, I think from a business point of view, we're no doubt positioned to pass this milestone and and and further improve significantly business over the 500,000,000 milestones. And maybe, Rafi, you want to add something.

No. The the target of 500,000,000 definitely is a target that we will execute. As we always said, it it may take, you know, half year, one year, two years, but it's definitely depend on the market condition. And assuming the WFE grow demand for equipment growth, we we definitely can achieve it because we we maintain our market share. We increase our market share. We haven't lost any market share yet. So so in this position, it's just a matter of the semiconductor growth rate, specifically in the advanced packaging and other application that we are a leading provider.

A good position to be in indeed, Raffi. And if I could ask a follow-up to that. You're always extremely help in commenting on strategic matters in the businesses doing a great job generating cash. And we're at 520 ish million in cash and equivalents. $320,000,000 net debt. The question is, how are you thinking about inorganic growth, you've executed well in the past? Is the team working on a funnel now? To what extent could something be actionable? Help us understand how you're thinking about inorganic avenues to grow the business. Thank you.

First of all, you know, we maintain we put a lot of focus on on all the opportunity in the organic growth. We made one acquisition and this acquisition also nicely. And maintain our expectation. So so this is going well We continue working on additional, I mean, acquisition. But probably, you you know it's not it's not a secret. It's not not so many companies that the semiconductor are are for acquisition or for acquiring. So we continue looking for that and maybe, hopefully, we can do something. But but without considering the acquisition, we believe we can achieve the 500,000,000 target within the the this year, the next year, very soon, As I said, as long as the the market condition remains stable, we we have no any insurance for, you know, any big crisis. So so if the the you know, as all the analysts that the the semiconductor growth over, you know, by the end of the decade to to come to trillion And, definitely, we can we can do it. We can do it. As I said, we are we are maintaining very good market share. We increase our market share. And we're very good relationship with customer.

So we can continue organic [indiscernible] Addition to that, hopefully, we can add with organic with with any acquisition that we will execute, it will be over this number.

Thanks, Rafi. Thanks, team.

Thank you. Thanks, Craig.

Next question will be from Vivek Arya from Bank of America. Vivek, please go ahead.

This is Michael Mani on for Vivek Arya. Thank you for taking our questions. To start, I know the company has been talking about [indiscernible] capacity constraints and, how that could be gating factor to the business, in the near term to medium term. So on that front, has the company seen any improvement in those constraints?

So I at least, what I hear I don't think there are any constraints now on our customer side to increase the capacity. I don't think this is an issue. Did you any further questions?

Enough. [indiscernible] just find Vivek again. We lost him for a sec. Just Vivek, are you still there? [indiscernible] You're muted.

Let's go to I'm sorry. Can you hear me?

Yeah. We can Now we can hear you.

Sorry about that. Yeah. Yeah. Sorry. My system mute itself. Yeah. Okay. Thank you for that. Verification. And then for my next question, you know, you've talked about your cost opportunity expanding to the OSATs. But as we think about the progression of COASU, you know, more advanced variations like, you know, Kowasu l, for example, you know, how does that, you how does that impact your opportunity? And if you could type that back specifically to, you know, where your Hawk tool may be seeing greater traction, that would be great too. Thank you.

So so first of all, the cost in brings to us additional steps and the opportunities. So from our point of view, the the new variation of Coas are good news. And and so this is from from the variations. From the OSAT's point of view, they will add capacity, and they will start with a certain version and move to other versions Some of them have their specific technologies that is similar to CoASP All in all, I don't think that they they have any limitations in coming with very competitive [indiscernible] And I can tell you from what I see in the market, I mean, this is volume business, and we're shipping quite a few products to these osets. So I I think this is already happening. It's not something that will happen in the future. It's it's already happening as we speak.

Thank you. And if I could ask a quick follow-up. On your business related to China, what should we expect for your China business this year? You know, how much is it declining, if at all? You know, I think we've heard from some of, your peers in the space that it could be down. You know, they're seeing their sales down, like, 10 to 20%. Is that the kinda right ballpark to think? And are you seeing more opportunities in that region in general as some of your peers could be faced with export restrictions and and maybe and there might be market parts of that market. They're unable to address. Thank you. So I you know, I it's very hard for me to say what we're getting you our peers. I can tell you that historically, our business in in in China was strong, and it continues to be strong. You know, we we have won very good market share with specific customer, and this Rafi alluded earlier, we have not lost any market share at any of our major customers. So I think from that point of view, our business, continues to be strong. Now, Boucher, maybe you can refer to No.

We we we don't see it. At this point, we definitely don't see any any weakness in this region. The business, you know, still looks healthy in the next, you know, few quarters ahead. Okay. [indiscernible] Thank you. That answers all my questions.

Thank you.

Alright. Thanks, Mike.

Okay. Well, that will end the question and answer session. Before I hand, back over to Raffi for his closing statement, I'd like to let everyone know that in the few next few hours, we will upload the recording of the conference call to the Investor Relations section of Camtek's website at camtek.com. And I would like to thank everybody for joining this call. And with that, Raffi, please, please your closing statement.

Okay. I would like to extend my sincere gratitude to all of you your continued interest in our business. A special thanks special thanks goes to our dedicated employees and outstanding management team for their tremendous performance to our investor I deeply appreciate your ongoing long term support. I look forward to speaking with you again next quarter.