Orbotech increased sales by 4% sequentially

GAAP (generally accepted accounting principles) net income for the first quarter of 2010 was $1.6 million, compared to GAAP net loss of $5.4 million, for the fourth quarter of 2009 and GAAP net loss of $7.9 million in the first quarter of 2009. During the last few months consumer demand for electronic devices, such as flat panel display television sets, mobile phones and personal computers, has been stronger than expected. As a result, the company has recently been experiencing high demand for its PCB and FPD inspection and production solutions. In the company's FPD business, this demand translated into increased bookings for flat panel display equipment, mostly from large Korean manufacturers. In addition, the Paragon Xpress direct imaging system is increasingly becoming a critical tool for high density interconnect (HDI) PCB mass production. As a result of these recent trends, the company announced on April 13, 2010 that it expects to record 2010 revenues in the range of $460 - 470 million. Commenting on the results, Rani Cohen, President and Chief Executive Officer, said: "Our financial results for the quarter exceeded our original expectations. The improved business environment has led to increased demand for Orbotech's PCB and FPD solutions. The growth in revenues, as well as our stronger operating efficiencies, has led to improved profitability. These results reflect our continuing commitment - even during periods of pronounced economic downturn - to high levels of investment in research, development and operating infrastructure. These investments enable us to meet the increasing demand for our products and to continue to provide our customers with new and innovative solutions and first class support." Sales of equipment to the printed circuit board ("PCB") industry were $38.3 million in the first quarter of 2010, compared to $26.0 million in the fourth quarter, and $11.2 million in the first quarter, of 2009. Sales of equipment to the flat panel display ("FPD") industry were $33.9 million, compared to $40.5 million in the fourth quarter, and $50.0 million in the first quarter, of last year. Sales of character recognition products were $1.5 million, compared to $2.0 million in the fourth quarter, and $1.4 million in the first quarter, of 2009. Sales of medical imaging equipment in the first quarter of 2010 were $2.5 million, compared to $2.1 million in the fourth quarter, and $3.7 million in the first quarter, of last year. In addition, service revenue for the first quarter of 2010 was $26.9 million, compared to $28.8 million in the fourth quarter, and $25.5 million in the first quarter, of 2009.