SPTS Extends its Lead as the Supplier of Choice for the Fastest Growing Format with Multiple Sigma fxP PVD Systems Orders

YAVNE, ISRAEL | ORBOTECH LTD. (NASDAQ: ORBK), today announced that SPTS Technologies, an Orbotech company and supplier of advanced wafer processing solutions for the global semiconductor and related industries, has received orders totaling approximately $57 million in value for multiple Sigma fxP PVD systems from a global manufacturer of packaged die.  The systems will deposit under bump metals and redistribution layers (RDL) for Fan-Out Wafer Level Packaging (FOWLP) production.  System deliveries and revenue recognition are expected to commence in the fourth quarter of 2015 and continue throughout the first half of 2016.  Orbotech’s fourth quarter and full year 2015 revenue guidance included the initial revenues expected to be recognized from these orders during this period.

According to a report entitled “Fan-Out WLP Forecast: Update 09/2015” published by research firm Yole Développement in September 2015, the launch of TSMC’s InFO format is expected to increase industry packaging revenues for FOWLP from $240M in 2015 to $2.4B in 2020.  With a projected 54% CAGR, Yole expects FOWLP to be the fastest growing advanced packaging technology in the semiconductor industry.  The burgeoning market for thinner smart phones, tablets, wearable devices and Internet of Things (IoT) connected consumer goods has created a significant need for this cost-effective high density format.   There are numerous FOWLP platforms in or near production from many companies including eWLB (STATS ChipPAC, NANIUM and ASE), SLIM & SWIFT (Amkor), InFO (TSMC) and RCP (Freescale). As part of Orbotech, with its multiple touch points throughout diverse electronics manufacturing environments, SPTS plays a key role in FOWLP advanced packaging solutions with numerous customer installations.

“This groundbreaking multi-PVD system order, the first from any semiconductor manufacturing company for FOWLP, is a ‎milestone moment for advanced packaging,” said Mr. Kevin Crofton, President of SPTS and Corporate Vice President at Orbotech. “It marks the beginning of an industry-wide transition of FOWLP from a niche packaging technique for small devices such as RFID and power management ICs to mainstream architecture for high value chips.  We expect FOWLP to become the leading low cost, high density packaging format.”

This order reinforces advanced packaging as SPTS’ most important growth driver.  During 2015, the company has received multiple new technology orders from packaging fabs for a range of applications including plasma dicing for frame-supported wafers, through-silicon via etch and deposition for 3DWLP and TSV reveal and passivation as announced by imec on July 14, 2015.

About Sigma fxP PVD

The Sigma fxP is a cluster PVD system used by device manufacturers in various end markets including power management, MEMS and RF devices.  In semiconductor packaging, the Sigma fxP deposits RDL and under bump metals (UBM) for Cu micropillar and TSV’s, plus TSV liner/barrier for 3DWLP.  For FOWLP, the system carries a Multi Wafer Degas (MWD) for low temperature, high productivity degas of epoxy mold compound.  Its SE-LTX etch module pre-cleans organic films with twice the mean wafers between cleans (MWBC) compared to competing systems.  For more information please see http://www.spts.com/tech-insights/advanced-packaging/fowlp.

About Orbotech Ltd.

Orbotech Ltd. (NASDAQ:ORBK) is a global innovator of enabling technologies used in the manufacture of the world’s most sophisticated consumer and industrial products throughout the electronics and adjacent industries.  The company is a leading provider of yield enhancement and production solutions for electronics reading, writing and connecting, used by manufacturers of printed circuit boards, flat panel displays, advanced packaging, micro-electro-mechanical systems and other electronic components.  Virtually every electronic device in the world is produced using Orbotech systems.  For more information, visit http://www.orbotech.com/.

 

Cautionary Statement Regarding Forward-Looking Statements

Except for historical information, the matters discussed in this press release are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995.  These statements relate to, among other things, future prospects, developments and business strategies and involve certain risks and uncertainties.  The words "anticipate," "believe," "could," "will," "plan," "expect" and "would" and similar terms and phrases, including references to assumptions, have been used in this press release to identify forward-looking statements.  These forward-looking statements are made based on management's expectations and beliefs concerning future events affecting Orbotech and are subject to uncertainties and factors relating to Orbotech's operations and business environment, all of which are difficult to predict and many of which are beyond the Company's control.  Many factors could cause the actual results to differ materially from those projected including, without limitation, timing and extent of achieving the anticipated benefits of the acquisition of SPTS; Orbotech's ability to effectively integrate and operate SPTS's business, the timing, terms and success of any strategic or other transaction, cyclicality in the industries in which the Company operates, the Company's production capacity, timing and occurrence of product acceptance (the Company defines 'bookings' and 'backlog' as purchase arrangements with customers that are based on mutually agreed terms, which, in some cases for bookings and backlog, may still be subject to completion of written documentation and may be changed or cancelled by the customer, often without penalty), fluctuations in product mix, worldwide economic conditions generally, especially in the industries in which the Company operates, the timing and strength of product and service offerings by the Company and each of its competitors, 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, the level of consumer demand for sophisticated devices such as smartphones, tablets and other electronic devices, the timing for a verdict in the ongoing appeal of the criminal matter and ongoing investigation in Korea, the final outcome and impact of this matter, including its impact on existing or future business opportunities in Korea and elsewhere, any civil actions related to the Korean matter brought by third parties, including the Company's customers, which may result in monetary judgments or settlements, expenses associated with the Korean matter, ongoing or increased hostilities in Israel and other risks detailed in the Company's SEC reports, including the Company's Annual Report on Form 20-F for the year ended December 31, 2014, and subsequent SEC filings. The Company assumes no obligation to update the information in this press release to reflect new information, future events or otherwise, except as required by law.


COMPANY CONTACTS:

Anat Earon-Heilborn

Director of Investor Relations

Orbotech Ltd.

Tel: +972-8-942-3582;

Investor.relations@orbotech.com

 


Tally Kaplan Porat

Head of Corporate Marketing

Orbotech Ltd.

Tel: +972.8.942.3603

Tally-Ka@orbotech.com

 


Destanie Clarke

Corporate Marketing DIrector

SPTS Technologies Ltd

Tel: +44 7951 203278

destanie.clarke@orbotech.com

Cautionary Statement Regarding Forward-Looking Statements

Except for historical information, the matters discussed in this website (including in press releases, webcasts, presentations, posts and other places) are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements relate to, among other things, future prospects, developments and business strategies and involve certain risks and uncertainties. The words “anticipate,” “believe,” “could,” “will,” “plan,” “expect” and “would” and similar terms and phrases, including references to assumptions, have been used in this website to identify forward-looking statements. These forward-looking statements are made based on management’s expectations and beliefs concerning future events as of the date of the applicable information (press releases, webcasts, presentations, or posts) and are subject to uncertainties and factors relating to Orbotech’s operations and business environment, the previously announced acquisition of Orbotech by KLA, the manner in which the parties plan to effect the transaction, including the share repurchase program, the ability to raise additional capital necessary to complete the repurchase program within the time frame expected, the expected benefits, synergies and costs of the transaction, management plans relating to the transaction, the expected timing of the completion of the transaction, the parties’ ability to complete the transaction considering the various closing conditions, including conditions related to regulatory and Orbotech shareholder approvals, the plans, strategies and objectives of management for future operations, product development, product extensions, product integration, complementary product offerings and growth opportunities in certain business areas, the potential future financial impact of the transaction, and any assumptions underlying any of the foregoing. Actual results may differ materially from those referred to in the forward-looking statements due to a number of important factors, including but not limited to the foregoing matters and the possibility that expected benefits of the transaction may not materialize as expected, that the transaction may not be timely completed, if at all, that KLA-Tencor may not be able to successfully integrate the solutions and employees of the two companies or ensure the continued performance or growth of Orbotech’s products or solutions, the risk that the Company may not achieve its revenue and margin expectations within and for 2018 (including, without limitation, due to shifting move-in dates); cyclicality in the industries in which the Company operates, the Company’s supply chain management and production capacity, order cancelation (often without penalty), timing and occurrence of product acceptance (the Company defines ‘bookings’ and ‘backlog’ as purchase arrangements with customers that are based on mutually agreed terms, which, in some cases for bookings and backlog, may still be subject to completion of written documentation and may be changed or cancelled by the customer, often without penalty), fluctuations in product mix within and among divisions, worldwide economic conditions generally, especially in the industries in which the Company operates, the timing and strength of product and service offerings by the Company and its competitors, changes in business or pricing strategies, changes in the prevailing political and regulatory framework in which the relevant parties operate, including as a result of the United Kingdom’s prospective withdrawal from the European Union (known as “Brexit”) and political uncertainty in the United States, or in economic or technological trends or conditions, including currency fluctuations, inflation and consumer confidence, on a global, regional or national basis, the level of consumer demand for sophisticated devices such as smart mobile devices, automotive electronics, flexible applications and devices, augmented reality/virtual reality and wearable devices, high-performance computing, liquid crystal display and organic light emitting diode screens and other sophisticated devices, the Company’s global operations and its ability to comply with varying legal, regulatory, exchange, tax and customs regimes, the timing and outcome of tax audits, including the best judgment tax assessment issued by the Israel Tax Authority with respect to the audit of tax years 2012-2014 in Israel and the related criminal investigation, the Company’s ability to achieve strategic initiatives, including related to its acquisition strategy, the Company’s debt and corporate financing activities; the timing, final outcome and impact of the criminal matter and ongoing investigation in Korea, including any impact on existing or future business opportunities in Korea and elsewhere, any civil actions related to the Korean matter brought by third parties, including the Company’s customers, which may result in monetary judgments or settlements, expenses associated with the Korean matter, and ongoing or increased hostilities in Israel and the surrounding areas.

The foregoing information should be read in connection with the Company’s Annual Report on Form 20-F for the year ended December 31, 2017, and subsequent SEC filings. This information is also supplemented by the information in the applicable document on this website (e.g., press release, webcast, presentation, posts and other document). The Company is subject to the foregoing and other risks detailed in those reports. The Company assumes no obligation to update the information in this website (including press releases, webcasts, presentations, posts and other places) to reflect new information, future events or otherwise, except as required by law.