Orbotech Announces First Quarter 2005 Results.YAVNE Yavne (Hebrew: יבנה, Arabic: يبنة Yibnah, Latin: Iamnia , Israel Israel, in the Bible Israel (ĭz`rēəl, ĭz`rāəl) [as understood by Hebrews,=he strives with God], according to the book of Genesis, name given to Jacob as eponymous ancestor of the Hebrews, the chosen people of God. -- ORBOTECH LTD LTD 1 Laron-type dwarfism 2 Leukotriene D 3 Long-term depression, see there 4. Long-term disability . (NASDAQ/NM SYMBOL: ORBK) today announced its consolidated financial results for the first quarter ended March 31, 2005. Revenues for the first quarter of 2005 totaled $100.5 million, compared to the $67.2 million recorded in the first quarter a year ago. Net income for the first quarter of 2005 was $10.6 million, or $0.32 per share (diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ), compared with net income of $5.1 million, or $0.15 per share (diluted), in the first quarter of 2004. Sales of equipment to the printed circuit board ("PCB PCB: see polychlorinated biphenyl. PCB in full polychlorinated biphenyl Any of a class of highly stable organic compounds prepared by the reaction of chlorine with biphenyl, a two-ring compound. ") industry relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc bare PCBs were $30.1 million in the first quarter of 2005, compared to $32.7 million in the fourth quarter, and $23.2 million in the first quarter, of 2004. Sales of flat panel display A thin display screen for computer and TV usage. The first flat panels appeared on laptop computers in the mid-1980s, and the LCD technology became the standard. Stand-alone LCD screens became available for desktop computers in the mid-1990s and exceeded sales of CRTs for the first time ("FPD (1) (Flat Panel Display) See LCD, plasma display, EL display, FED and flat panel display. (2) (Field Programmable Device) An umbrella term for all chips that can be programmed by the customer including SPLDs, CPLDs and FPGAs. See PLD. ") inspection equipment were $43.2 million, compared to $26.4 million in the fourth quarter, and $18.7 million in the first quarter, of last year. Sales of equipment to the PCB industry relating to assembled as·sem·ble v. as·sem·bled, as·sem·bling, as·sem·bles v.tr. 1. To bring or call together into a group or whole: assembled the jury. 2. PCBs were $6.2 million, compared to $8.3 million in the fourth quarter, and $6.6 million in the first quarter, of last year. Sales of automatic check reading products were $2.3 million, compared to $2.0 million in the fourth quarter, and $1.9 million in the first quarter, of 2004. In addition, service revenue for the first quarter of 2005 increased to $18.7 million from $18.4 million in the fourth quarter of 2004, and $16.8 million in the first quarter, of that year. The Company completed the quarter with cash equivalents and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. and long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. cash investments of approximately $177 million, compared with approximately $182 million at the end of 2004. Non-operating disbursements totaled approximately $5.0 million, comprised of $3.5 million which was paid as part of the acquisition of the assets of Imarad Imaging Systems Ltd. ("Imarad") and $1.5 in capital expenditures. The Company experienced continued strong demand for its leading bare PCB products, the Discovery PCB-AOI series and the Paragon direct imaging system, both of which were introduced in the fourth quarter of last year. During the first quarter the Company's assembled PCB business felt the effects of increased competition leading to pricing pressures. As previously disclosed in its public statements and filings, the record FPD revenues during the first quarter of 2005 arose partly from the recognition of initial revenues from the Company's new, seventh generation in-line In-line Used in the context of general equities. (1) An order or market in a specific security within the inside market; 2) any announcement (earnings) that adheres closely to Wall Street analysts' expectations. FPD-AOI systems delivered commencing in the second half of 2004 to Samsung Electronics Samsung Electronics (SEC, Hangul:삼성전자; KSE: 005930, KSE: 005935, LSE: SMSN, LSE: SMSD) is a South Korean multinational corporation and the world's largest and leading electronics and information technology company. Co. Ltd.; FPD-related revenues for the second quarter will be substantially lower than those recorded in the first quarter. The Company is today also announcing the receipt of a new order from LG Phillips Phil·lips A trademark used for a screw with a head having two intersecting perpendicular slots and for a screwdriver with a tip shaped to fit into these slots. LCD (Liquid Crystal Display) A display technology that uses rod-shaped molecules (liquid crystals) that flow like liquid and bend light. Unenergized, the crystals direct light through two polarizing filters, allowing a natural background color to show. Co., Ltd. for in-line and off-line FPD-AOI systems to be used at its new TFT-LCD TFT-LCD Thin Film Transistor - Liquid Crystal Display fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. facility for the production of LCD televisions. In addition, the Company has once again been selected by Samsung to supply in-line FPD-AOI systems to be used at its second phase, Gen-7 TFT-LCD fabrication facility for the production of LCD televisions. These systems are scheduled for delivery in the second half of 2005 and the early part of 2006. During the quarter the Company announced that its wholly-owned subsidiary, Orbotech Medical Solutions Ltd., had acquired all the assets of Imarad, a privately held Israeli company which developed and manufactured high-performance Adj. 1. high-performance - modified to give superior performance; "a high-performance car" superior - of high or superior quality or performance; "superior wisdom derived from experience"; "superior math students" , solid state gamma radiation gamma radiation, high-energy photons emitted as one of the three types of radiation resulting from natural radioactivity. It is the most energetic form of electromagnetic radiation, with a very short wavelength (high frequency). detectors based on proprietary Cadmium Zinc Telluride Cadmium zinc telluride, (CdZnTe) or CZT, is (as the name indicates) a compound of cadmium, zinc and tellurium or more strictly speaking, an alloy of cadmium telluride and zinc telluride. crystal-growth technology, for $7 million. This transaction represents an important step in the implementation of the Company's strategy of diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. into new growth areas for imaging technologies. Commenting on the results, Yochai Richter Rich·ter , Burton Born 1931. American physicist. He shared a 1976 Nobel Prize for the discovery of a subatomic particle. Rich·ter , Jean Paul Friedrich Pen name Jean Paul. , Chief Executive Officer, said: "Our first quarter operating results were in line with our expectations. With yield-management playing an increasingly important role in advanced technologies and improved profitability, our products and solutions enable our customers to achieve manufacturing successes in ramping up their current and future production lines." An earnings conference call is scheduled for Monday, May 9, 2005, at 9:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy . The dial-in number for the conference call is 517-308-9005, and a replay will be available, on telephone number 203-369-0881, until May 23, 2005. The pass code is Q1. A live web cast of the conference call and a replay can also be heard by accessing the investor relations Investor relations The process by which the corporation communicates with its investors. 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 There are many ways in which the price of a product can be determined. The following are the foremost strategies that businesses are likely to use. Competition-based pricing Setting the price based upon prices of the similar competitor products. , 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 spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. 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 Automated Optical Inspection (AOI) is an automated visual inspection of PCB(or LCD,transistor manufacture) where a camera autonomously scans the device under test for both catastrophic failure (eg. missing component) and quality defects (eg. (AOI AOI Area Of Interest AOI Automated Optical Inspection AOI Art of Illusion (3D modeling software) AOI Associated Oregon Industries AOI Angle Of Incidence AOI Age of Innocence (David Hamilton book, also a band) ) 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 computer-aided manufacturing (CAM), a form of automation where computers communicate work instructions directly to the manufacturing machinery. The technology evolved from the numerically controlled machines of the 1950s, which were directed by a set of coded (CAM cam, mechanical device cam, mechanical device for converting a rotating motion into a reciprocating, or back-and-forth, motion, or for changing a simple motion into a complex one. ) technologies enable customers to achieve the increased yields and throughput The speed with which a computer processes data. It is a combination of internal processing speed, peripheral speeds (I/O) and the efficiency of the operating system and other system software all working together. 1. 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. 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 North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Europe, the Pacific Rim Pacific Rim, term used to describe the nations bordering the Pacific Ocean and the island countries situated in it. In the post–World War II era, the Pacific Rim has become an increasingly important and interconnected economic region. , 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 MARCH 31, 2005
March 31 December 31
2 0 0 5 2 0 0 4
---------- ---------
(Unaudited) (Audited)
---------- ---------
U. S. dollars in thousands
--------------------------
Assets
------
CURRENT ASSETS:
---------------
Cash and cash equivalents 119,537 127,331
Marketable securities 20,276 14,462
Short-term bank deposits 10,000 10,000
Accounts receivable:
Trade 109,461 113,184
Other 17,991 19,849
Deferred income taxes 2,470 1,123
Inventories 75,092 71,525
------- -------
Total current assets 354,827 357,474
------- -------
INVESTMENTS AND NON-CURRENT ASSETS:
----------------------------------
Marketable securities 27,650 29,987
Other long-term Investments 8,365 8,332
Non-current trade receivables 371 652
Severance pay fund 14,875 14,740
Deferred income taxes 3,200 4,001
------- -------
54,461 57,712
------- -------
PROPERTY, PLANT AND EQUIPMENT, net of
-----------------------------
accumulated depreciation and amortization 18,329 17,454
------- -------
GOODWILL AND OTHER INTANGIBLE ASSETS, net of
------------------------------------
accumulated amortization 16,904 11,231
------- -------
------- -------
444,521 443,871
======= =======
Liabilities and shareholders' equity
--------------------------------------
CURRENT LIABILITIES:
--------------------
Accounts payable and accruals:
Trade 26,646 35,261
Other 54,584 57,950
------- -------
Total current liabilities 81,230 93,211
ACCRUED SEVERANCE PAY 25,687 24,877
---------------------
------- -------
Total liabilities 106,917 118,088
------- -------
MINORITY INTEREST IN CONSOLIDATED SUBSIDIARY 538 503
-------------------------------------------- ------- -------
SHAREHOLDERS' EQUITY:
---------------------
Share capital 1,624 1,620
Additional paid-in capital 99,855 98,807
Deferred stock compensation (397) (455)
Retained earnings 258,218 247,632
Accumulated other comprehensive income 90
------- -------
359,390 347,604
Less treasury stock, at cost (22,324) (22,324)
------- -------
Total shareholders' equity 337,066 325,280
------- -------
------- -------
444,521 443,871
======= =======
ORBOTECH LTD.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2005
12 months
3 months ended ended
March 31 December 31
-------------- -----------
2005 2004 2004
---- ---- ----
(Unaudited) (Audited)
--------- -------
U.S. dollars in thousands
(except per share data)
------------------------------
REVENUES 100,455 67,200 315,168
--------
COST OF REVENUES 60,560 37,501 176,535
----------------
---------- -------- ---------
GROSS PROFIT 39,895 29,699 138,633
------------
RESEARCH AND DEVELOPMENT COSTS - net 13,565 11,149 47,997
------------------------------
SELLING, GENERAL AND ADMINISTRATIVE
-----------------------------------
EXPENSES 14,393 12,340 52,951
--------
AMORTIZATION OF OTHER INTANGIBLE
--------------------------------
ASSETS 577 577 2,308
------
----------- -------- ---------
OPERATING INCOME 11,360 5,633 35,377
----------------
FINANCIAL INCOME - net 523 304 1,252
----------------
WRITE-DOWN OF LONG-TERM INVESTMENTS (2,945)
-----------------------------------
----------- -------- ---------
INCOME BEFORE TAXES ON INCOME 11,883 5,937 33,684
-----------------------------
TAXES ON INCOME 1,229 752 4,346
---------------
INCOME FROM OPERATIONS OF THE COMPANY
-------------------------------------
AND ITS SUBSIDIARIES AND JOINT
------------------------------ ----------- -------- ---------
VENTURE 10,654 5,185 29,338
-------
MINORITY INTEREST IN PROFITS OF
------------------------------
CONSOLIDATED SUBSIDIARY (34) (28) (48)
-----------------------
SHARE IN PROFITS (LOSSES) OF AN
-------------------------------
ASSOCIATED COMPANY (34) (87) 196
------------------
----------- -------- ---------
NET INCOME 10,586 5,070 29,486
---------- =========== ======== =========
EARNINGS PER SHARE:
-------------------
BASIC $0.33 $0.16 $0.91
----- =========== ======== =========
DILUTED $0.32 $0.15 $0.90
------- =========== ======== =========
WEIGHTED AVERAGE NUMBER OF SHARES (IN
-------------------------------------
THOUSANDS) USED IN COMPUTATION OF
--------------------------------
EARNINGS PER SHARE:
-------------------
BASIC 32,367 32,155 32,251
----- =========== ======== =========
DILUTED 33,100 33,210 32,924
------- =========== ======== =========
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