Orbotech Announces Record Third Quarter 1997 Results.YAVNE Yavne (Hebrew: יבנה, Arabic: يبنة Yibnah, Latin: Iamnia , Israel--(BUSINESS WIRE)--Nov. 3, 1997---- Revenues Grow By 42%; Net Income Rises 109% -- -- Record Gross, Operating, and Net Margins -- ORBOTECH LTD LTD 1 Laron-type dwarfism 2 Leukotriene D 3 Long-term depression, see there 4. Long-term disability . (NASDAQ/NM SYMBOL: ORBKF) today announced its unaudited, consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: financial results for the third quarter and nine months ended September September: see month. 30, 1997. Revenues for the third quarter were $49.9 million, an increase of 42% from the $35.3 million recorded in the third quarter a year ago. Net income totaled $9.7 million, or $0.70 per share, an increase of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 109% compared with net income of $4.6 million, or $0.35 per share in the third quarter of 1996. Revenues for the nine months ended September 30, 1997 were $137.7 million, an increase of 26% from $109.4 million recorded in the first nine months of 1996. Net income totaled $24.6 million, or $1.81 per share, an increase of approximately 72% compared with net income of $14.3 million, or $1.10 per share for the first nine months of 1996. Gross margins for the third quarter rose to 50.3% as compared to 47.8% for the third quarter last year. Operating and net margins reached 21.0% and 19.4% respectively, as compared to 13.3% and 13.0% respectively for the third quarter of 1996. On a geographical basis, the Company recorded particularly strong growth in Japan and 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. . Revenues from 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 the manufacture of printed circuit boards ("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. "s) increased by 49% as compared with the third quarter of 1996. The Company delivered 5 inspection systems for flat panel displays 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. "s) as compared with one in the third quarter of 1996. At the beginning of the quarter, the Company acquired the AOI operations of W. Schuh GmbH GmbH Gesellschaft mit Beschränkter Haftung (German: limited liability company; business entity) , an established manufacturer of AOI for PCB assemblies. Schuh operations are consolidated with the Company's results as of September 1, 1997. Revenues for the third quarter include $0.4 million from Schuh operations. Goodwill connected with the acquisition in the amount of $5.7 million has been recorded on the Company's balance sheet, and is amortized over five years. 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. , President and Chief Executive Officer, said, "We are pleased to report record gross, operating and net margins on continued strong revenue growth. During the quarter we entered the electronics assembly inspection industry through our acquisition of the AOI operations of W. Schuh GmbH. We have already recorded revenues from Schuh's proven products, which represent a significant new opportunity for the Company. The acquisition of Schuh is an example of our strategy of addressing the automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. inspection needs of an ever widening group of industries. "In addition, during this quarter, we announced an agreement to provide Hutchinson Technology ''This article or section is being rewritten at Hutchinson Technology is an acknowledged world leader in precision manufacturing. Specializing in design and manufacture of close-tolerance products that require chemical, mechanical and electronic technologies. , Inc. (NASDAQ/NM SYMBOL: HTCH) with equipment worth approximately $5.8 million for the automatic inspection of circuitry in hard disk suspension assemblies, which represents an additional application for Orbotech's core AOI technology." 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 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. is the world leader in the design, development, manufacture and marketing of AOI systems for use in the manufacture of PCBs, and is a leading manufacturer of 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. systems and laser plotters ("Plotters") for PCB production. In addition, the Company is a leading manufacturer of AOI systems for use in the production of liquid crystal flat panel displays (LCDs and FPDs) and is applying its proprietary AOI technologies to other applications both within and outside the electronics industry. -0-
ORBOTECH LTD.
(An Israeli Corporation)
CONDENSED CONSOLIDATED BALANCE SHEET
AT SEPTEMBER 30, 1997
September 30,1997 December 31,1996
(Unaudited) (Audited)
Assets U.S. dollars in thousands
CURRENT ASSETS:
Cash and cash equivalents 52,116 46,572
Short-term investments 8,248
Accounts receivable:
Trade 39,393 31,714
Israeli Government departments
and agencies 2,544 2,079
Other 5,506 3,957
Inventories 39,322 28,618
Deferred income taxes 815 527
Total current assets 147,944 113,467
INVESTMENT AND NON-CURRENT RECEIVABLES:
Long-term investments 3,944 702
Deferred income taxes 359 1,096
Trade receivables 159
4,462 1,798
PROPERTY, PLANT AND EQUIPMENT,
net of accumulated depreciation
and amortization 11,757 11,000
GOODWILL, net of accumulated
amortization 13,749 9,376
177,912 135,641
Liabilities and shareholders' equity
CURRENT LIABILITIES:
Short-term bank credit 503 179
Accounts payable and accruals:
Trade 10,237 6,390
Other 31,909 30,316
Total current liabilities 42,649 36,885
LONG-TERM DEBT 3,398
ACCRUED SEVERANCE PAY, net of
amounts funded 3,910 3,459
Total liabilities 49,957 40,344
MINORITY INTEREST IN
CONSOLIDATED PARTNERSHIPS 888 344
SHAREHOLDERS' EQUITY:
Share capital 960 934
Capital surplus 65,572 58,121
Retained earnings 60,535 35,898
Total shareholders' equity 127,067 94,953
177,912 135,641
-0-
ORBOTECH LTD.
(An Israeli Corporation)
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE NINE MONTH AND THREE MONTH PERIODS ENDED SEPTEMBER 30, 1997
9 months ended 3 months ended
September 30 September 30
1997 1996 1997 1996
(Unaudited) (Unaudited)
U.S. dollars in thousands
(except per share data)
REVENUES 137,683 109,444 49,940 35,269
COST OF REVENUES 68,987 57,998 24,821 18,416
GROSS PROFIT 68,696 51,446 25,119 16,853
RESEARCH AND DEVELOPMENT
COSTS - net 15,795 13,037 5,240 3,943
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 24,666 22,317 8,894 7,808
AMORTIZATION OF GOODWILL 1,301 1,206 497 402
OPERATING INCOME 26,934 14,886 10,488 4,700
FINANCIAL INCOME - net 1,198 243 499 70
OTHER INCOME - net 74 21 21 5
INCOME BEFORE TAXES ON INCOME 28,206 15,150 11,008 4,775
TAXES ON INCOME 3,879 2,239 1,367 699
INCOME FROM OPERATIONS OF
THE COMPANY AND ITS
CONSOLIDATED SUBSIDIARIES 24,327 12,911 9,641 4,076
SHARE IN PROFITS OF AFFILIATED
COMPANY 1,277 424
MINORITY SHARE IN CONSOLIDATED
PARTNERSHIPS 310 129 52 96
NET INCOME FOR THE PERIOD 24,637 14,317 9,693 4,596
EARNINGS PER SHARE $1.81 $1.10 $0.70 $0.35
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING -
IN THOUSANDS 13,576 12,980 13,870 12,980
CONTACT: Jody Burfening (ext. 106) John Heilshorn (ext. 104) Lippert/Heilshorn & Associates (212) 838-3777 jody@lhai.com john@lhai.com or Dani DANI Department of Agriculture Northern Ireland DANI Deaf Association Northern Ireland (UK) Falk n. 1. (Zool.) The razorbill. , Exec. Vice President Adrian Adrian, Roman emperor Adrian, Roman emperor: see Hadrian. Adrian, city, United States Adrian, city (1990 pop. 22,097), seat of Lenawee co., SE Mich., on the Raisin River; inc. 1836. Auman, Director of Finance Orbotech Ltd. +972-8-942-3522 Amichai Steinberg Noun 1. Steinberg - United States cartoonist (born in Romania) noted for his caricatures of famous people (1914-1999) Saul Steinberg , VP Finance & Operations Orbotech, Inc. (508) 667-6037 www.orbotech.com |
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