YAVNE, Israel--(BUSINESS WIRE)--Aug. 2, 2004--ORBOTECH LTD.
(NASDAQ/NM SYMBOL: ORBK) today announced its consolidated financial
results for the second quarter and six months ended June 30, 2004.
Revenues for the second quarter of 2004 totaled $77.5 million,
compared to $67.2 million recorded in the first quarter of 2004 and
$54.6 million in the second quarter a year ago. Net income for the
second quarter of 2004 was $8.6 million, or $0.26 per share (diluted),
compared to net income of $5.1 million, or $0.15 per share (diluted),
in the first quarter of 2004 and $1.2 million, or $0.04 per share
(diluted), in the second quarter of 2003.
Revenues for the first six months of 2004 totaled $144.7 million,
compared to $108.8 million recorded in the first half of 2003. Net
income for the first six months of 2004 was $13.6 million, or $0.41
per share (diluted), compared to net income of $2.3 million, or $0.07
per share (diluted), in the first six months of 2003.
Sales of equipment to the printed circuit board ("PCB") industry
relating to bare PCBs were $29.4 million in the second quarter of
2004, compared to $23.2 million in the first quarter of 2004, and
$18.5 million in the second quarter of 2003. Sales of flat panel
display ("FPD") inspection equipment were $20.7 million, compared to
$18.7 million in the first quarter of 2004, and $12.0 million in the
second quarter of last year. Sales of equipment to the PCB industry
relating to assembled PCBs were $8.8 million, compared to $6.6 million
in the first quarter this year, and $6.1 million in the second quarter
of 2003. Sales of automatic check reading products were $1.3 million
in the second quarter of 2004, compared to $1.9 million in the first
quarter of 2004, and $1.8 million recorded in the second quarter of
2003. In addition, service revenue for the second quarter increased to
$17.3 million from $16.8 million in the first quarter of 2004, and
$16.2 million in the second quarter of 2003.
The Company completed the quarter with cash, cash equivalents and
marketable securities of approximately $166 million, compared to $152
million at the end of the first quarter, due principally to a positive
operating cash flow of approximately $15 million for the quarter.
The Company's results for the quarter reflect the improved
business climate prevalent throughout the electronics industry, which
has led to increased capital expenditures across the PCB and FPD
industries that the Company serves.
Revenues from sales of the Company's PCB-AOI products, notably the
Spiron AOI series and the solid state laser direct imaging systems,
both of which have been designed to meet the complex technological
needs of PCB manufacturers, increased by over 25% sequentially. In
addition, revenues from sales of the Company's assembled PCB products
experienced similar increases, reflecting the growing awareness and
acceptance of AOI as an integral part of the manufacturing process.
During the second quarter the Company continued to record strong
bookings for its FPD products, primarily as a result of the combined
effects of manufacturers' ongoing, strategic investments in new sixth
and seventh generation fabrication facilities for TFT-LCD televisions
- which are continuing as planned - and the highly sophisticated
technological solutions which the Company can offer these
manufacturers.
Commenting on the results, Yochai Richter, Chief Executive
Officer, said: "We are pleased with our financial results for the
quarter. We are feeling the effects of the recovery in the electronics
industry and are also benefiting from our continued selective
investments in research and development. These have enabled us to
offer innovative products that answer our customers needs which, in
turn, reinforces our leadership position at the forefront of those
industries we serve. Our confidence in the long-term growth prospects
of these industries continues to be high."
An earnings conference call is scheduled for Monday, August 2,
2004, at 9:00 a.m. EST. The dial-in number for the conference call is
630-395-0017, and a replay will be available, until August 16, 2004,
on telephone number 203-369-0010. The pass code is Q2. A live web cast
of the conference call and replay can also be heard by accessing the
investor relations section on the Company's website at
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.
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 check processing organizations. 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 www.orbotech.com.
ORBOTECH LTD.
CONDENSED CONSOLIDATED BALANCE SHEET
AT JUNE 30, 2004
June 30 December 31
2004 2003
----------- -----------
(Unaudited) (Audited)
----------- -----------
U.S. dollars in thousands
-------------------------
Assets
------
CURRENT ASSETS:
--------------
Cash and cash equivalents 130,238 124,937
Marketable securities 4,491 10,999
Short-term bank deposits 6,900
Accounts receivable:
Trade 97,187 91,560
Other 19,071 18,250
Deferred income taxes 2,677 3,391
Inventories 62,375 52,990
--------- ---------
Total current assets 316,039 309,027
--------- ---------
INVESTMENTS AND NON-CURRENT ASSETS:
-----------------------------------
Marketable securities 30,854 15,829
Investments in companies 11,026 10,560
Non-current trade receivables 797 249
Severance pay fund 13,735 13,891
Deferred income taxes 4,379 4,749
--------- ---------
60,791 45,278
--------- ---------
PROPERTY, PLANT AND EQUIPMENT, net of
------------------------------
accumulated depreciation and amortization 17,795 18,604
--------- ---------
GOODWILL AND OTHER INTANGIBLE ASSETS, net of
-------------------------------------
accumulated amortization 12,385 13,539
--------- ---------
--------- ---------
407,010 386,448
========= =========
Liabilities and shareholders' equity
------------------------------------
CURRENT LIABILITIES:
--------------------
Current maturity of long-term liability 6,151
Accounts payable and accruals:
Trade 27,033 19,178
Other 48,186 44,890
--------- ---------
Total current liabilities 75,219 70,219
ACCRUED SEVERANCE PAY 22,764 22,685
---------------------
--------- ---------
Total liabilities 97,983 92,904
--------- ---------
MINORITY INTEREST IN CONSOLIDATED SUBSIDIARY 499 455
-------------------------------------------- --------- ---------
SHAREHOLDERS' EQUITY:
---------------------
Share capital 1,618 1,616
Additional paid-in capital 98,005 97,615
Deferred stock compensation (568) (921)
Retained earnings 231,781 218,146
Accumulated other comprehensive income 16 (1,043)
--------- ---------
330,852 315,413
Less treasury stock, at cost (22,324) (22,324)
--------- ---------
Total shareholders' equity 308,528 293,089
--------- ---------
--------- ---------
407,010 386,448
========= =========
ORBOTECH LTD.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
FOR THE SIX MONTH AND THREE MONTH PERIODS ENDED JUNE 30, 2004
12 months
6 months ended 3 months ended ended
June 30 June 30 December 31
-------------- --------------- -----------
2004 2003 2004 2003 2003
---- ---- ---- ---- ----
(Unaudited) (Unaudited) (Audited)
--------------- --------------- -----------
U.S. dollars in thousands (except per share data)
-------------------------------------------------
REVENUES 144,709 108,822 77,509 54,610 228,392
-------- -------- -------- ------- ------- --------
COST OF REVENUES:
-----------------
COST 80,104 63,146 42,603 31,859 130,917
---
WRITE-OFF OF
INVENTORIES 7,448
-------------
-------- -------- ------- ------- --------
80,104 63,146 42,603 31,859 138,365
-------- -------- ------- ------- --------
-------- -------- ------- ------- --------
GROSS PROFIT 64,605 45,676 34,906 22,751 90,027
------------
RESEARCH AND
DEVELOPMENT COSTS -
net 22,838 19,752 11,689 9,944 39,456
------------------
SELLING, GENERAL AND
ADMINISTRATIVE
EXPENSES 25,286 23,300 12,946 11,415 48,000
--------------------
AMORTIZATION OF OTHER
INTANGIBLE
ASSETS 1,154 1,200 577 600 2,400
--------------------
RESTRUCTURING COSTS 3,786
--------------------
OPERATING INCOME -------- -------- ------- ------- --------
(LOSS) 15,327 1,424 9,694 792 (3,615)
----------------
FINANCIAL INCOME
- net 585 1,454 281 726 2,379
----------------
OTHER EXPENSES (696)
--------------
INCOME (LOSS)
BEFORE TAXES
ON INCOME -------- -------- ------- ------- --------
------------- 15,912 2,878 9,975 1,518 (1,932)
TAXES ON INCOME 2,205 396 1,453 206 61
---------------
INCOME (LOSS) FROM
OPERATIONS OF THE
COMPANY AND
ITS SUBSIDIARIES -------- -------- ------- ------- --------
AND JOINT VENTURE 13,707 2,482 8,522 1,312 (1,993)
------------------
MINORITY SHARE IN
PROFITS OF
CONSOLIDATED
SUBSIDIARY (44) (16) (455)
-----------------
SHARE IN PROFITS
(LOSSES) OF
ASSOCIATED COMPANY (28) (222) 59 (79) (507)
-------------------
NET INCOME (LOSS) -------- -------- ------- ------- --------
FOR THE PERIOD 13,635 2,260 8,565 1,233 (2,955)
---------------- ======== ======== ======= ======= ========
EARNINGS (LOSS) PER
SHARE:
-------------------
BASIC $ 0.42 $ 0.07 $ 0.27 $ 0.04 ($ 0.09)
----- ======== ======== ======= ======= ========
DILUTED $ 0.41 $ 0.07 $ 0.26 $ 0.04 ($ 0.09)
------- ======== ======== ======= ======= ========
WEIGHTED AVERAGE NUMBER
OF SHARES (IN
THOUSANDS) USED IN
COMPUTATION OF
EARNINGS (LOSS) PER
SHARE:
--------------------
BASIC 32,163 31,983 32,163 31,983 32,031
----- ======== ======== ======= ======= ========
DILUTED 33,056 32,153 32,883 32,202 32,031
------- ======== ======== ======= ======= ========
CONTACT: Orbotech Ltd.
Adrian Auman, +972-8-942-3560
Amichai Steinberg, +972-8-942-3524
www.orbotech.com
or
Orbotech, Inc.
Michelle Harnish, +1-978-901-5120
SOURCE: Orbotech Ltd.