YAVNE, ISRAEL, July 1, 2015 | ORBOTECH LTD. (NASDAQ: ORBK) today announced that SPTS Technologies Group Ltd. (SPTS), an Orbotech company and supplier of advanced wafer processing solutions for the global semiconductor and related industries, has sold its Thermal Products business to SPP Technologies Co, Ltd. (SPT), a subsidiary of Sumitomo Precision Products Co., Ltd. SPT specializes in the production, sales and support of micro electromechanical systems (MEMS) and semiconductor related process equipment. The transaction includes sale of all thermal product lines and virtually all worldwide assets of SPTS’s Thermal Product business, and will involve approximately fifty SPTS employees worldwide, who are currently engaged in the Thermal Products business, becoming employees of SPT.

Kevin Crofton, President of SPTS and Corporate Vice President at Orbotech said: “Historically, the Thermal Products business has been part of SPTS’s growth and success, with a range of production-proven vertical batch furnaces that continue to be the process tools of choice at leading semiconductor fabs around the world. Divestment at this time, however, will benefit SPTS by enabling us to focus resources on our core Advanced Packaging, MEMS, RF and Power devices businesses. We believe this sale will provide new opportunities for the Thermal Products business under the ownership of SPT, and we wish them continued achievement and success.”

Toshihiro Hayami, President of SPT, said: “This acquisition will allow us to expand the product portfolio that we offer our customers, create a footprint in the global semiconductor capital equipment industry and establish a worldwide presence for our company. We expect the Thermal Products business to contribute to the success of SPT and look forward to new product development activities related to this business in its current and adjacent markets.”

SPT acquired the assets of the Thermal Products business based on a valuation of approximately $28 million, comprised of $22 million in cash plus approximately $6 million in accounts receivable. Half of the cash was paid on completion and the balance will be paid in 2016, without any performance conditions. Orbotech intends to use the net proceeds to repay a portion of the amount outstanding under its credit facilities. The sale does not materially affect Orbotech’s expectations for its financial performance in the second half of 2015 or its long term business model.

 

 

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/.

 

 

About SPTS Technologies

SPTS Technologies, an Orbotech company, designs, manufactures, sells, and supports etch, PVD, CVD and thermal wafer processing solutions for the MEMS, advanced packaging, LEDs, high speed RF on GaAs, and power management device markets. With manufacturing facilities in Newport, Wales, Allentown, Pennsylvania, and San Jose, California, the company operates across 19 countries in Europe, North America and Asia-Pacific. For more information about SPTS Technologies, please visit www.spts.com

About Sumitomo Precision Products Co., Ltd. (SPP)

SPP develops distinctive and original technologies across various industries, including aerospace and hydraulic systems, heat and energy, environmental protection, micro- and nano-products, and aims to be a leader in a global niche market.

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
 
Ann Michael
Senior Corporate Marketing 
Communications Manager
Orbotech Ltd
Tel: +972-8-942 3148

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.