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| 6.8.07 |
Orbotech Ltd. (NASDAQ/NM SYMBOL: ORBK) today announced its consolidated financial results for the second quarter and six months ended June 30, 2007.
Revenues for the second quarter of 2007 totaled $88.6 million, compared to $86.1 million recorded in the first quarter of 2007 and $104.9 million in the second quarter a year ago. Net loss for the second quarter of 2007 was $3.4 million, or $0.10 per share (diluted), compared to net income of $5.6 million, or $0.17 per share (diluted), in the first quarter of 2007, and of $15.3 million, or $0.46 per share (diluted), in the second quarter of 2006. Net loss for the second quarter of 2007 includes a $4.8 million write-off of inventory ($4.4 million net of taxes), primarily related to previous generation, high-end printed circuit board ('PCB') products, as well as a charge of $5.0 million relating to the Company's write-off of its investment in Negevtech Ltd. Excluding these items, net of taxes, net income for the second quarter of 2007 was $6.0 million, or $0.18 per share (diluted).
Revenues for the first six months of 2007 totaled $174.7 million, compared to $206.3 million recorded in the first half of 2006. Net income for the first six months of 2007 was $2.2 million, or $0.07 per share (diluted), compared to net income of $29.4 million, or $0.89 per share (diluted) in the first six months of 2006. Excluding the write-offs, net of taxes, in the second quarter of 2007, net income for the first six months of 2007 was $11.6 million, or $0.35 per share (diluted).
Sales of equipment to the PCB industry relating to bare PCBs were $44.4 million in the second quarter of 2007, compared to $35.5 million in the first quarter of 2007, and $44.0 million in the second quarter of 2006. Sales of flat panel display ('FPD') inspection equipment were $11.2 million, compared to $19.1 million in the first quarter of 2007, and $29.3 million in the second quarter of last year. Sales of equipment to the PCB industry relating to assembled PCBs were $7.5 million, compared to $6.8 million in the first quarter this year, and $9.4 million in the second quarter of 2006. Sales of automatic check reading products were $2.8 million in the second quarter of 2007, compared to $2.4 million in the first quarter of 2007, and $1.9 million recorded in the second quarter of 2006. In addition, service revenue for the second quarter increased marginally to $22.5 million from $22.2 million in the first quarter of 2007, and $20.1 million in the second quarter of 2006.
The Company completed the quarter with cash, cash equivalents and marketable securities of approximately $234 million, compared to $236 million at the end of the first quarter, reflecting a positive operating cash flow for the quarter of approximately $11.7 million. Non-operating disbursements totaled approximately $16.7 million, comprised mainly of $14.3 million paid in connection with the acquisition of the Italian company, New System Srl., which develops and markets inkjet printing solutions for the bare PCB industry.
The increase in revenues from sales of bare PCB equipment was due partly to the introduction of the Discovery Ultra PCB-AOI system for high-end applications, which further extends the Company's Discovery PCB-AOI series; and also reflects another record quarter in sales of the Company's Paragon Direct Imaging system.
As the Company announced several weeks ago, the downturn in the highly cyclical FPD industry is estimated to be deeper than previously anticipated as LCD manufacturers delay the scheduled `move in' dates for their new fabrication facilities to mid-2008. However, given the strong bookings which are anticipated in the second half of 2007, and the significant indications of a substantial upturn next year, the Company believes that there will be a strong rebound in FPD revenues in 2008.
Commenting on the results, Rani Cohen, Chief Executive Officer, said: 'Our financial results for the quarter are in line with our expectations, particularly given the current conditions in the FPD industry. The PCB industry remains robust, and we have further strengthened our PCB product portfolio with the acquisition of New System during the quarter. We will continue to invest in research and development in both the PCB and FPD industries and to explore possible external opportunities for expansion.' Mr. Cohen added: 'We are also announcing today an important step in our strategy for growth and diversification into medical imaging, with the acquisition of 3 D - Danish Diagnostic Development A/S, the Danish manufacturer of gamma cameras for nuclear medicine. In addition to presenting an important entry into the medical imaging industry, this acquisition will provide an opportunity for Orbotech to leverage its strong operational capabilities and resources and will deliver immediate and future value to our shareholders.'
An earnings conference call for the Company's second quarter 2007 results is scheduled for Monday, August 6, 2007, at 9:00 a.m. EDT. The dial-in number for the conference call is 210-234-0001, and a replay will be available on telephone number 402-220-9694 until August 20, 2007. The pass code is Q2. A live web cast of the conference call and a replay can also be heard by accessing the investor relations section on the Company's website at http://www.orbotech.com./
About Orbotech
Orbotech is a world leader in providing yield-enhancing, production support solutions for specialized applications in the supply chain of the electronics industry, principally for printed circuit boards (PCBs) and flat panel displays (FPDs). The Company designs, develops, manufactures, markets and services automated optical inspection (AOI) systems for bare and assembled PCBs and for FPDs, and imaging solutions for PCB production. The Company's innovative AOI, imaging and computer-aided manufacturing (CAM) technologies enable customers to achieve the increased yields and throughput essential to remaining at the forefront of electronics production. Through its subsidiary, Orbograph Ltd., the Company also develops and markets automatic check reading software to banks and other financial institutions. In addition, the Company is engaged in the development and manufacture of specialized application products for the nuclear medical imaging industry. Of Orbotech's employees, more than one quarter are scientists and engineers, who integrate their multi-disciplinary knowledge, talents and skills to develop and provide sophisticated solutions and technologies designed to meet customers' long-term needs. Orbotech maintains its headquarters and its primary research, development and manufacturing facilities in Israel, and more than 30 offices worldwide. The Company's extensive network of marketing, sales and customer support teams throughout North America, Europe, the Pacific Rim, China and Japan deliver its knowledge and expertise directly to customers the world over. For more information visit http://www.orbotech.com./
Except for historical information, the matters discussed in this press release are forward-looking statements that are subject to certain risks and uncertainties which could cause the actual results to differ materially from those projected, including industry trends, the timing and strength of product and service offerings, changes in business or pricing strategies, changes in the prevailing political and regulatory framework in which the relevant parties operate or in economic or technological trends or conditions, including currency fluctuations, inflation and consumer confidence, on a global, regional or national basis and other risks detailed from time to time in the Company's SEC reports. The Company assumes no obligation to update the information in this press release.
For more detailed financial information regarding Orbotech's Q2 2007 results, please visit the Investors section of this website.
Contact:
Adrian Auman
Corporate Vice President, Investor Relations, Director of Finance
Orbotech Ltd.
972-8-942-3560
OR
Michelle Harnish
Marketing Communications Manager
Orbotech Inc.
(978) 901-5120
mailto:michelle@orbotech.com?Subject=Web site mail
http://www.orbotech.com/ |
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