There was a rumor a couple of months ago that ORBK will show
only 10% growth. Their earnings report today shows otherwise:
===============================
Monday May 3, 6:01 am Eastern Time
Company Press Release
Orbotech Announces First Quarter
1999 Results
Net Income up 20% on 18% Increase in Revenues
YAVNE, ISRAEL--(BUSINESS WIRE)--May 3, 1999--ORBOTECH LTD. (NASDAQ/NM
SYMBOL: ORBK - news) today announced its consolidated financial results for the first quarter
ended March 31, 1999.
Revenues for the first quarter of 1999 totaled $64.2 million, an increase of 18% from the $54.2 million
recorded in the first quarter a year ago. Net income for the first quarter of 1999 was $11.6 million, or
$0.82 per share (diluted), an increase of 20% compared with net income of $9.6 million, or $0.69 per
share (diluted), in the first quarter of 1998.
Sales of equipment to the printed circuit board (''PCB'') industry increased by 14% as compared with
the first quarter of 1998 while sales of flat panel display (''FPD'') inspection equipment were especially
strong. On a geographical basis, the Company recorded good revenue growth in the United States and
particularly strong growth in the Far East.
Commenting on the results, Yochai Richter, President and Chief Executive Officer, said, ''I am pleased
to report strong financial results and important progress in our strategic development.
''We continue to experience strong demand for our core automated optical inspection systems for
PCBs, and in particular for our recently introduced InSpire-9000 system, which demonstrates
exceptional performance and features unattended operation. During the quarter, we also announced
the launch of our new DP-100, an enabling direct imaging system which acquires digital image data
directly from a CAM workstation and images it on to a photoresist-coated substrate, thereby
eliminating many steps in PCB manufacturing.
''Sales of FPD inspection equipment were very strong in the quarter reflecting, among other trends,
their increasing use in personal computers.
''During the first quarter we completed our acquisition of KLA Acrotec Co. Ltd., now re-named
Orbotech Display Pacific Ltd., a Japanese company engaged in the design, development, manufacture
and marketing of automated optical inspection systems for FPDs. This acquisition significantly
strengthens our presence in the strategically important FPD industry, particularly in Japan.''
Mr. Richter concluded, ''A productive first quarter is a good indicator for the year ahead.''
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 the timely development and acceptance of new
products, delays in factory testing and acceptance, industry trends, technology or pricing competition
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.
ORBOTECH LTD. (NASDAQ: ORBK - news) is the world leader in the design, development,
manufacture and marketing of automated optical inspection (''AOI'') systems for use in the
manufacture of PCBs and FPDs and is a leader in the design, development, manufacture and
marketing of imaging solutions for PCB production and of AOI systems for use in the electronics
assembly industry. In addition, the Company markets computer aided manufacturing (''CAM'')
solutions for PCB production and is continuing to develop its proprietary AOI technologies for use in
other applications both within and outside the electronics industry.
ORBOTECH LTD.
(An Israeli Corporation)
CONDENSED CONSOLIDATED BALANCE SHEET
AT MARCH 31, 1999
March 31 December 31
1 9 9 9 1 9 9 8
------------ -----------
(Unaudited) (Audited)
------------ -----------
U. S. dollars In thousands
--------------------------
A s s e t s
CURRENT ASSETS:
Cash and cash equivalents 76,675 94,450
Short-term investments 9,091 4,827
Accounts receivable:
Trade 56,390 51,301
Israeli Government
departments and agencies 3,889 5,959
Other 8,073 6,329
Inventories 51,149 42,144
Deferred income taxes 258 593
............ ...........
T o t a l current assets 205,525 205,603
............ ...........
INVESTMENT AND NON-CURRENT RECEIVABLES:
Long-term investments 7,045 6,866
Deferred income taxes 1,046 727
Non-current trade receivables 156 258
............ ...........
8,247 7,851
............ ...........
PROPERTY, PLANT AND EQUIPMENT,
net of accumulated depreciation and
amortization 18,223 16,104
............ ...........
GOODWILL, net of accumulated amortization 15,534 10,778
............ ...........
------------ -----------
247,529 240,336
============ ===========
Liabilities and shareholders' equity
CURRENT LIABILITIES:
Short-term bank credit and
current maturities of
long-term debt 1,164 1,270
Accounts payable and accruals:
Trade 19,067 12,382
Other 35,588 49,057
------------ -----------
T o t a l current
liabilities 55,819 62,709
LONG-TERM BANK LOAN, net
of current maturities 1,923 2,088
ACCRUED SEVERANCE PAY,
net of amounts funded 5,480 4,840
............ ...........
T o t a l liabilities 63,222 69,637
............ ...........
MINORITY INTEREST IN
CONSOLIDATED PARTNERSHIPS 1,189 1,294
------------------------- ............ ...........
SHAREHOLDERS' EQUITY:
Share capital 973 967
Capital surplus 70,707 68,565
Retained earnings 114,215 102,650
------------ -----------
185,895 172,182
Less treasury stock, at cost (2,777) (2,777)
............ ...........
T o t a l shareholders'
equity 183,118 169,405
............ ...........
------------ -----------
247,529 240,336
============ ===========
-0-
ORBOTECH LTD.
(An Israeli Corporation)
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTH PERIOD ENDED MARCH 31, 1999
3 Months Ended 12 Months
March 31 Ended
---------------------- December 31
1 9 9 9 1 9 9 8 1 9 9 8
----------- ---------- ----------
(Unaudited) (Audited)
---------------------- ----------
U.S. dollars in thousands (except per share data)
-------------------------------------------------
REVENUES 64,214 54,248 231,827
--------
COST OF REVENUES 31,671 26,811 114,823
----------------
........... .......... ..........
GROSS PROFIT 32,543 27,437 117,004
------------ ........... .......... ..........
RESEARCH AND DEVELOPMENT
COSTS - net 7,145 6,189 25,926
------------------------ ........... .......... ..........
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 12,288 10,062 43,200
........... .......... ..........
AMORTIZATION OF GOODWILL 804 686 2,794
------------------------ ........... .......... ..........
----------- ---------- ----------
OPERATING INCOME 12,306 10,500 45,084
-----------------
FINANCIAL INCOME - net 842 909 4,207
----------------------
OTHER INCOME - net 15 (11,992)
------------------ ----------- ---------- ----------
INCOME BEFORE
TAXES ON INCOME 13,163 11,409 37,299
---------------
TAXES ON INCOME 1,624 1,663 4,898
---------------
INCOME FROM OPERATIONS OF THE
COMPANY, ITS SUBSIDIARIES AND
PARTNERSHIPS 11,539 9,746 32,401
-----------------------------
MINORITY SHARE IN
CONSOLIDATED PARTNERSHIPS 26 (144) (263)
------------------------- =========== ========== ==========
NET INCOME FOR THE PERIOD 11,565 9,602 32,138
------------------------- =========== ========== ==========
EARNINGS PER SHARE:
BASIC $0.85 $0.72 $2.39
=========== ========== ==========
DILUTED $0.82 $0.69 $2.30
=========== ========== ==========
WEIGHTED AVERAGE NUMBER OF
SHARES (IN THOUSANDS) USED IN
COMPUTATION OF EARNINGS PER SHARE:
BASIC 13,565 13,415 13,423
=========== ========== ==========
DILUTED 14,126 13,974 13,961
=========== ========== ==========
Contact:
Lippert/Heilshorn & Associates
Jody Burfening, ext. 304
John Heilshorn, ext. 104
212/838-3777
jody@lhai.com
john@lhai.com
or
Orbotech Ltd.
Dani Falk, Executive Vice President
Adrian Auman, Director of Finance
+972-8-942-3522
Amichai Steinberg, Executive Vice President
Orbotech, Inc.
978/901-5050
www.orbotech.com |
