- 2014 first
quarter:
- Revenues: $104.8 million
- Gross margin: 43.6%
- Non-GAAP net income: $0.19 per share
(diluted)
- GAAP net income: $0.15 per share
(diluted)
- 2014 second
quarter:
- Revenue guidance: approximately $110
- $115 million
ORBOTECH LTD. (NASDAQ/GSM SYMBOL: ORBK) today announced its
consolidated financial results for the first quarter ended March
31, 2014.
Revenues for the first quarter of 2014 totaled $104.8 million,
compared to $122.2 million in the fourth quarter, and $95.5 million
in the first quarter, of 2013. GAAP net income for the first
quarter of 2014 was $6.3 million, or $0.15 per share (diluted),
compared to GAAP net income of $12.6 million, or $0.30 per share
(diluted), in the fourth quarter of 2013 and GAAP net income of
$5.0 million, or $0.11 per share (diluted), in the first quarter of
2013.
Commenting on the results, Asher Levy, Chief Executive Officer,
said: “We are pleased to report a good opening to 2014. While the
PCB industry experienced a low level of production utilization in
certain segments during the first quarter, our FPD business
experienced a very strong quarter, with over $65 million in new
bookings for our recently introduced products, expected to be
delivered mainly in late 2014 and early 2015. This was driven, in
turn, by large planned investments in China for anticipated demand
for small to midsize electronic devices and a consumer trend
towards larger LCD television screens. We expect this FPD booking
trend to continue into the second quarter. During the quarter, we
also recorded initial revenues from our plasma-enhanced chemical
vapor deposition (PECVD) tool for the recovering solar energy
industry, which we believe continues to offer a significant
opportunity for Orbotech.
Mr. Levy added: “In terms of the Company’s capital allocation,
during the quarter we announced, and commenced, a new share
repurchase program in the amount of $30 million. At the same time,
we are continuing to pursue additional opportunities within the
electronic component manufacturing and other adjacent
industries.”
Non-GAAP net income for the first quarter of 2014 was $8.2
million, or $0.19 per share (diluted), compared to non-GAAP net
income of $6.8 million, or $0.16 per share (diluted), in the first
quarter of 2013. A reconciliation of each of the Company’s non-GAAP
measures to the comparable GAAP measure is included at the end of
this press release.
In the Company’s Production Solutions for Electronics Industry
segment, sales of equipment to the printed circuit board industry
were $41.5 million in the first quarter of 2014, compared to $45.3
million in the fourth quarter, and $47.4 million in the first
quarter, of 2013; and sales of equipment to the flat panel display
industry were $23.1 million in the first quarter of 2014, compared
to $37.2 million in the fourth quarter, and $13.2 million in the
first quarter, of 2013. In the Company’s Recognition Software
segment, sales were $1.4 million in the first quarter of 2014,
compared to $1.7 million in the fourth quarter, and $1.8 million in
the first quarter, of 2013; and the Company also recorded initial
revenues of $1.8 million in the first quarter of 2014 in its Solar
Energy segment.
In addition, service revenue for the first quarter of 2014 was
$37.0 million, compared to $38.0 million in the fourth quarter, and
$33.1 million in the first quarter, of 2013.
The Company completed the first quarter of 2014 with cash, cash
equivalents, short-term bank deposits and marketable securities of
approximately $211.6 million.
To date, the Company has repurchased approximately 520,000 of
its Ordinary Shares, at a cost of approximately $7.7 million, under
the new share repurchase program approved by the Board of Directors
and announced and commenced in the first quarter of 2014. Pursuant
to this program, the Company will continue to repurchase shares up
to the approved total of $30 million. Such purchases will be
subject, among other things, to the share price and market
conditions and will be made in accordance with all applicable laws
and regulations. To date, under the current repurchase program and
the repurchase program approved in November 2012, the Company has
repurchased an aggregate amount of approximately 2,960,000 of its
Ordinary Shares, at a total cost of approximately $35.5
million.
The Company continues to remain focused on enhancing long-term
shareholder value.
An earnings conference call for the Company’s first quarter 2014
results is scheduled for Thursday, May 1, 2014, at 9:00 a.m. EDT.
The dial-in number for the conference call is 415-228-3912, and a
replay will be available on telephone number 203-369-1957 until May
24 2014. 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 section on the Company’s website at www.orbotech.com.
About Orbotech Ltd.
Orbotech Ltd. (NASDAQ/GSM: ORBK) has been at the cutting edge of
the electronics industry supply chain, as an innovator of enabling
technologies used in the manufacture of the world’s most
sophisticated consumer and industrial products, for over 30 years.
The Company is a leading provider of yield-enhancing and production
solutions, primarily for manufacturers of printed circuit boards,
flat panel displays and other electronic components. Today,
virtually every electronic device is produced using Orbotech
technology. The Company also applies its core expertise and
resources in other advanced technology areas, including character
recognition for check and forms processing and solar photovoltaic
manufacturing. Headquartered in Israel and operating from multiple
locations internationally, Orbotech’s highly talented and
inter-disciplinary professionals design, manufacture, sell and
service the Company’s end-to-end portfolio of solutions for the
benefit of customers the world over. For more information please
see the Company’s filings with the U.S. Securities and Exchange
Commission (the “SEC”) at www.sec.gov. and visit the
Company’s corporate website at www.orbotech.com. The corporate
website is not incorporated herein by reference and is included as
an inactive textual reference only.
Cautionary Statement Regarding
Forward-Looking Statements
Except for historical information, the matters discussed in this
press release are forward-looking statements within the meaning of
the U.S. Private Securities Litigation Reform Act of 1995. These
statements relate to, among other things, future prospects,
developments and business strategies and involve certain risks and
uncertainties. The words “anticipate,” “believe,” “could,” “will,”
“plan,” “expect” and “would” and similar terms and phrases,
including references to assumptions, have been used in this press
release to identify forward-looking statements. These
forward-looking statements are made based on management’s
expectations and beliefs concerning future events affecting
Orbotech and are subject to uncertainties and factors relating to
its operations and business environment, all of which are difficult
to predict and many of which are beyond the Company’s control. Many
factors could cause the actual results to differ materially from
those projected including, without limitation, the timing, terms
and success of any strategic or other transaction, cyclicality in
the industries in which the Company operates, the Company’s
production capacity, timing and occurrence of product acceptance
(the Company defines ‘bookings’ as purchase arrangements with
customers that are based on mutually agreed terms which, in some
cases, may still be subject to completion of written documentation
and may be changed or cancelled by the customer, often without
penalty), fluctuations in product mix, worldwide economic
conditions generally, especially in the industries in which the
Company operates, the timing and strength of product and service
offerings by the Company and its competitors, 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, the level of consumer demand for
sophisticated devices such as smartphones, tablets and other
electronic devices, the final outcome and impact of the criminal
matter and ongoing investigation in Korea, including its impact on
existing or future business opportunities in Korea and elsewhere,
any civil actions related to the Korean matter brought by third
parties, including the Company’s customers, which may result in
monetary judgments or settlements, expenses associated with the
Korean matter and other risks detailed in the Company’s SEC
reports, including the Company’s Annual Report on Form 20-F for the
year ended December 31, 2013, and subsequent SEC filings. The
Company assumes no obligation to update the information in this
press release to reflect new information, future events or
otherwise, except as required by law.
Non-GAAP Financial
Measures
Non-GAAP net income, non-GAAP net income from continuing
operations and non-GAAP net income from continuing operations per
share detailed in the Reconciliation exclude charges, income or
losses, as applicable, related to one or more of the following: (i)
equity-based compensation expenses; (ii) certain items associated
with acquisitions, including amortization and impairment of
intangibles; (iii) discontinued operations; (iv) restructuring
charges; and/or (v) share in losses of associated company.
Management uses these non-GAAP measures to evaluate the Company’s
operating and financial performance in light of business objectives
and for planning purposes. These measures are not in accordance
with GAAP and may differ from non-GAAP methods of accounting and
reporting used by other companies. Orbotech believes that these
measures enhance investors’ ability to review the Company’s
business from the same perspective as the Company’s management and
facilitate comparisons with results for prior periods. The
presentation of this additional non-GAAP information should not be
considered in isolation or as a substitute for net income; net
income attributable to Orbotech Ltd. or earnings per share prepared
in accordance with GAAP, and should be read only in conjunction
with the Company’s consolidated financial statements prepared in
accordance with GAAP. The reasons why management uses these
measures, the usefulness of these measures and the material
limitations on the usefulness of these measures are set forth
below. For a detailed explanation of the adjustments made to
comparable GAAP measures, please see the Reconciliation.
To supplement the Company’s financial results presented on a
GAAP basis, the Company uses the non-GAAP measures indicated in the
Reconciliation, which exclude equity based compensation expenses,
amortization of intangible assets, in-process research and
development charges, share in losses/profits of associated
companies and impairment and restructuring charges, as well as
certain financial expenses and non-recurring income items that are
believed to be helpful in understanding and comparing past
operating and financial performance with current results. However,
the non-GAAP measures presented are subject to limitations as an
analytical tool because they exclude certain recurring items (such
as equity compensation and amortization of intangible assets) as
described below and because they do not reflect certain cash
expenditures that are required to operate the Company’s business,
such as interest expense and taxes. Accordingly, these non-GAAP
financial measures are not meant to be considered in isolation or
as a substitute for comparable GAAP measures and should be read
only in conjunction with the Company’s consolidated financial
statements prepared in accordance with GAAP. Management regularly
utilizes supplemental non-GAAP financial measures internally to
understand, manage and evaluate the Company’s business and make
operating decisions. These non-GAAP measures are among the primary
factors management uses in planning for and forecasting future
periods.
The effect of equity-based compensation expenses has been
excluded from the non-GAAP measures. Although equity-based
compensation is a key incentive offered to employees, and the
Company believes such compensation contributed to the revenues
earned during the periods presented and also believes it will
contribute to the generation of future period revenues, the Company
continues to evaluate its business performance excluding equity
based compensation expenses. Equity-based compensation expenses
will recur in future periods.
The effects of amortization of intangible assets have also been
excluded from the measures. This item is inconsistent in amount and
frequency and is significantly affected by the timing and size of
acquisitions. Investors should note that the use of intangible
assets contributed to revenues earned during the periods presented
and will contribute to future period revenues as well. Amortization
of intangible assets will recur in future periods and the Company
may be required to record additional impairment charges in the
future. The Company believes that it is useful for investors to
understand the effects of these items on total operating expenses.
For more information about these items, see the Reconciliation and
the Company’s Annual Report on Form 20-F filed with the SEC for the
year ended December 31, 2013.
ORBOTECH LTD. CONDENSED CONSOLIDATED BALANCE
SHEETS AT MARCH 31, 2014 March 31 December
31 2014 2013 U. S. dollars in thousands
A s s e t
s
CURRENT
ASSETS:
Cash and cash equivalents 151,642 161,155 Short-term bank deposits
42,174 38,650 Marketable securities 5,133 5,265 Accounts
receivable: Trade 190,026 198,203 Other 30,888 31,546 Deferred
income taxes 8,253 8,094 Inventories 100,993 93,938
T o t a l current assets
529,109 536,851
INVESTMENTS AND
NON-CURRENT ASSETS:
Marketable securities 12,637 13,106 Funds in respect of employee
rights upon retirement 11,042 11,024 Deferred income taxes 14,714
15,130 Equity method investee and other recievable 9,845 9,911
48,238 49,171
PROPERTY, PLANT AND
EQUIPMENT, net
28,633 27,715
GOODWILL
12,444 12,444
OTHER INTANGIBLE
ASSETS, net
9,392 10,401 627,816 636,582
Liabilities and equity
CURRENT
LIABILITIES:
Accounts payable and accruals: Trade 40,511 43,663 Other
50,629 55,482 Deferred income 21,366 24,854 T o t a l
current liabilities 112,506 123,999
LONG-TERM
LIABILITIES:
Liability for employee rights upon retirement 24,955 25,845
Deferred income taxes 2,406 2,406 Other tax liabilities 14,610
17,178 T o t a l long-term liabilities 41,971 45,429
T o t a l liabilities 154,477 169,428
EQUITY:
Share capital 2,141 2,124 Additional paid-in capital 285,467
281,159 Retained earnings 274,857 268,570 Accumulated other
comprehensive income 77 409 562,542 552,262 Less treasury shares,
at cost -89,120 -84,946 T o t a l Orbotech Ltd. shareholders'
equity 473,422 467,316 Non-controlling interest -83 -162 T o t a l
equity 473,339 467,154 627,816 636,582
ORBOTECH LTD. CONDENSED CONSOLIDATED STATEMENTS OF
INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2014
3 m o n t h s e n d e d
12 months ended March 3 1 December 31 2014 2013 2013
REVENUES
104,793 95,477 439,995
COST OF
REVENUES
59,136 55,347 248,455
WRITE- DOWN OF
INVENTORIES
GROSS
PROFIT
45,657 40,130 191,540
RESEARCH AND
DEVELOPMENT COSTS - net
18,461 16,314 69,573
SELLING, GENERAL AND
ADMINISTRATIVE
EXPENSES 19,592 17,262 75,948
EQUITY IN EARNINGS
OF FRONTLINE
(1,504 ) (1,183 ) (5,553 )
AMORTIZATION OF
INTANGIBLE ASSETS
1,010 1,010 4,041
RESTRUCTURING
CHARGES
IMPAIRMENT OF
INTANGIBLE ASSETS
OPERATING
INCOME
8,098 6,727 47,531
FINANCIAL EXPENSES -
net
327 678 1,191
INCOME FROM
OPERATIONS BEFORE TAXES ON INCOME
7,771 6,049 46,340
TAXES ON
INCOME
1,350 1,164 6,927 6,421 4,885 39,413
SHARE IN LOSSES OF
ASSOCIATED COMPANY
69 45 252
NET
INCOME
6,352 4,840 39,161
NET INCOME (LOSS)
ATTRIBUTABLE TO
THE NON-CONTROLLING INTEREST 65 (171 ) (840 )
NET INCOME
ATTRIBUTABLE TO ORBOTECH LTD.
6,287 5,011 40,001
EARNINGS PER
SHARE:
INCOME FROM OPERATIONS: BASIC $ 0.15 $ 0.12 $ 0.94
DILUTED $ 0.15 $ 0.11 $ 0.92
WEIGHTED AVERAGE
NUMBER OF SHARES USED IN COMPUTATION
OF EARNINGS PER SHARE - IN THOUSANDS: BASIC 41,842
43,321 42,571
DILUTED 42,835 43,739 43,253
ORBOTECH LTD. CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH
31, 2014 3 m o n t h s e n d e d
12 months ended March 3 1 December 31 2014
2013 2013
CASH FLOWS FROM
OPERATING ACTIVITIES:
Net income 6,352 4,840 39,161 Adjustment to reconcile net
income to net cash provided by operating activities: Depreciation
and amortization 3,471 2,812 13,261 Impairment of Intangible assets
Compensation relating to equity awards granted to employees and
others - net 816 773 3,182 Increase (decrease) in liability for
employee rights upon retirement (890) (640) 624 Deferred income
taxes 257 (53) (1,558) Non-cash expenses in respect of
restructuring Amortization of premium and accretion of discount on
marketable Securities, net 157 91 554 Equity in earnings of
Frontline, net of dividend received (195) 902 446 Other 207 246 268
Decrease (increase) in accounts receivable: Trade 8,177 (15,483)
(33,721) Other 606 (1,031) (2,954) Increase (decrease) in accounts
payable and accruals: Trade (3,152) (4,058) 11,377 Deferred income
and other (10,718) (1,361) 15,511 Decrease (increase) in
inventories (7,055) 6,251 (190)
Net cash provided by (used in)
operating activities (1,967) (6,711)
45,961
CASH FLOWS FROM
INVESTING ACTIVITIES:
Purchase of property, plant and equipment (3,574) (3,361)
(12,978) Withdraw (placement) of bank deposits (3,524) (10,986)
(35,636) Purchase of marketable securities (2,490) (570) (9,936)
Redemption of marketable securities 2,755 306 6,037 Investment in
equity method investee (2,250) Proceeds from disposal of property,
plant and equipment 9 39 Increase in funds in respect of employee
rights upon retirement (71) (63) (262)
Net cash used in
investing activities (6,895) (14,674)
(54,986)
CASH FLOWS FROM
FINANCING ACTIVITIES:
Repayment of long-term bank loan (40,000) (64,000) Employee
stock options exercised 3,523 273 3,312 Acquisition of treasury
shares (4,174) (2,208) (25,795)
Net cash used in financing
activities (651) (41,935) (86,483)
NET DECREASE IN CASH AND CASH EQUIVALENTS
(9,513) (63,320) (95,508) CASH AND
CASH EQUIVALENTS AT BEGINNING OF PERIOD 161,155 256,663 256,663
CASH AND CASH EQUIVALENTS AT END OF
PERIOD 151,642 193,343 161,155
ORBOTECH LTD. RECONCILIATION OF GAAP TO NON-GAAP
RESULTS FROM CONTINUING OPERATIONS FOR THE THREE MONTHS
ENDED MARCH 31, 2014 3 m o n t h s
e n d e d 12 months ended March 3 1 December 31 2014
2013 2013 U.S. dollars in thousands (except per share data)
Reported operating
income on GAAP basis
8,098 6,727 47,531 Equity based compensation expenses 816
773 3,182 Amortization of intangible assets 1,010 1,010 4,041
Non-GAAP operating income 9,924 8,510 54,754
Reported net income
attributable to Orbotech Ltd. on GAAP basis
6,287 5,011 40,001 Equity based compensation expenses 816
773 3,182 Amortization of intangible assets 1,010 1,010 4,041 Share
in losses of associated company 69 45 252
Non-GAAP net income
from operations
8,182 6,839 47,476 Non-GAAP earnings per diluted share $0.19
$0.16 $1.10 Shares used in earnings per diluted share
calculation-in thousands 42,835 43,739 43,253
Orbotech Ltd.Adrian Auman, +972-8-942-3560Corporate Vice
President Investor Relations and Special ProjectsorOrbotech,
Inc.Michelle Harnish, +1-603-289-7937Marketing Communications
Manager
Orbotech Ltd. - Ordinary Shares (NASDAQ:ORBK)
過去 株価チャート
から 9 2024 まで 10 2024
Orbotech Ltd. - Ordinary Shares (NASDAQ:ORBK)
過去 株価チャート
から 10 2023 まで 10 2024