Ad
Ad
Ad
Ad
SMT & Inspection | November 06, 2006

Slightly increased revenues for Orbotech

Orbotech's revenues for the third quarter of 2006 were $106.9 million, compared to $104.9 million recorded in the second quarter of 2006 and $93.7 million in the third quarter a year ago.
Net income for the third quarter of 2006 was $16.2 million, or $0.49 per share (diluted), compared to net income of $15.3 million, or $0.46 per share (diluted), in the second quarter of 2006 and $11.1 million, or $0.33 per share (diluted), in the third quarter of 2005.

These results incorporate the adoption, on January 1, 2006, of revised Financial Accounting Standard No.123, "Share Based Payment", which resulted in increased compensation expenses totaling approximately $1.6 million, without any reduction in income taxes, and a corresponding decrease in diluted earnings per share of $0.05 for the third quarter. Excluding these compensation expenses, net income would have been $17.8 million, or $0.53 per share, for the third quarter of 2006.

Revenues for the first nine months of 2006 totaled $313.2 million, compared to $283.5 million recorded during the same period in 2005. Net income for the first nine months of 2006 was $45.6 million, or $1.38 per share (diluted), compared to net income of $31.2 million, or $0.94 per share (diluted), for the same period last year.

Sales of equipment to the printed circuit board ("PCB") industry relating to bare PCBs were $44.0 million in the third quarter of 2006, unchanged from the second quarter this year, and increased from the $37.3 million recorded in the third quarter of 2005. Sales of equipment to the PCB industry relating to assembled PCBs were $9.3 million this quarter, compared to $9.4 million in the second quarter this year, and $9.1 million in the third quarter of 2005. Sales of flat panel display ("FPD") inspection equipment were $30.5 million this quarter, compared to $29.3 million in the second quarter this year, and $26.3 million in the third quarter of 2005. Sales of automatic check reading products were $1.5 million in the third quarter of 2006, compared to $1.9 million in the second quarter this year, and $1.6 million in the third quarter of 2005. In addition, service revenues for the third quarter increased to $21.3 million from $20.1 million in the second quarter of 2006, and $19.3 million recorded in the third quarter of 2005.

The Company completed the quarter with cash, cash equivalents and marketable securities of approximately $256.4 million, compared to $236.1 million at the end of the second quarter, due principally to a positive operating cash flow for the quarter of approximately $19 million. Non-operating disbursements, comprised mainly of capital expenditures, totaled approximately $1.7 million.

During the third quarter the Company sold a record number of its Discovery PCB-AOI series systems, reflecting the continuing strong demand for this product. Although sales of the Company's Paragon solid state laser direct imaging systems decreased from the second quarter, the Company still expects to record a unit increase exceeding 30% year over year for 2006, and believes that it is poised for further growth in 2007. The Company recently introduced its new Discovery and Paragon systems for inspecting and imaging high density interconnect "HDI" applications at the TPCA trade show in Taiwan, where they were very well received.

While demand for LCD television displays remains healthy, and prices stable, certain leading FPD manufacturers have delayed several investment decisions for the coming months. Current forecasts suggest that overall expenditure on LCD equipment can be expected to decline by approximately 20% in 2007, reflecting the cyclicality in this industry; and this would impact the Company's FPD revenues for 2007. However, the Company believes that it will be strongly positioned to benefit once customers reemphasize their capital investments in LCD fabrication plants, and given the positive long term outlook for the FPD industry the Company is continuing to invest substantial amounts in research and development for this important area.

Commenting on the results, Rani Cohen, Chief Executive Officer, said: "We are pleased to report excellent financial results once again this quarter, which reflect the quality and competitiveness of our product portfolio, the strength of our operational capabilities and the effectiveness of our worldwide sales and support infrastructure. Despite the delay in FPD capital expenditures, we continue to invest consistently in the research and development of new products and solutions for this and the other industries that we serve."

Comments

Please note the following: Critical comments are allowed and even encouraged. Discussions are welcome. Verbal abuse, insults and racist / homophobic remarks are not. Such comments will be removed.
Further details can be found here.
Load more news
April 21 2018 3:38 pm V9.3.2-1