CAMTEK LTD

CAMTEK LTD sells systems internationally, primarily to manufacturers in the Asia Pacific region. In the year ended December 31, 2025, sales in the Asia Pacific region, which includes South Korea, China, Taiwan, and South East Asia, accounted for approximately 91% of total revenues. This concentration is due to the migration and growth of electronics industry centers in the region. The company generates revenue from two main sources: the sale of its systems and related products, and the provision of maintenance and support services for these products. A one-year warranty is generally provided with systems, meaning service revenues are not earned during this warranty period. Demand for CAMTEK LTD's systems typically involves short notice. To meet customer delivery expectations and maintain a competitive advantage, the company pre-orders components and subsystems based on future order forecasts rather than actual orders. This practice is necessary because during periods of increased market demand, suppliers and subcontractors may extend delivery schedules or miss deadlines. To mitigate these potential delays, CAMTEK LTD builds inventories further into the future, which increases the risk that forecasts may not align with actual future needs. These longer-term estimates during business expansion periods tend to increase the level of component and subsystem inventories.