UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
under the Securities Exchange Act of 1934
For the month of
August 2014
Commission File Number 000-12790
ORBOTECH
LTD
.
(Translation of Registrants name into English)
7 SANHEDRIN BOULEVARD,
NORTH INDUSTRIAL ZONE, YAVNE 8110101, ISRAEL
(Address of principal executive offices)
Indicate by
check mark whether the Registrant files or will file annual reports under cover of Form 20-F
or Form 40-F:
Form 20-F
x
Form 40-F
¨
Indicate by check mark if the Registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(1):
¨
Indicate by check mark if the Registrant is
submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
¨
Attached hereto and incorporated by reference herein are the following documents:
1.
|
Press release issued by the Registrant on, and dated, August 4, 2014, and entitled Orbotech Announces Second Quarter 2014 Results.
|
2.
|
Registrants Condensed Consolidated Balance Sheets at June 30, 2014.
|
3.
|
Registrants Condensed Consolidated Statements of Income for the Six and Three Months Periods ended June 30, 2014.
|
4.
|
Registrants Condensed Consolidated Statements of Cash Flows for the Six and Three Months Periods ended June 30, 2014.
|
5.
|
Registrants Reconciliation of GAAP to non-GAAP Results from Continuing Operations for the Six and Three Month Periods ended June 30, 2014.
|
* * * * * *
Except as set forth below, the information on this Form 6-K, including the exhibits attached hereto, shall not be deemed filed for purposes of
Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.
This report on Form 6-K is incorporated by reference into the Registration Statements on Form S-8 (Registration No. 33-25782, Registration
No. 33-78196, Registration No. 333-05440, Registration No. 333-06542, Registration No. 333-08404, Registration No. 333-09342, Registration No. 333-11124, Registration No. 333-12692, Registration
No. 333-127979, Registration No. 333-154394 and Registration No. 333-169146) of Orbotech Ltd. previously filed with the Securities and Exchange Commission.
FOR IMMEDIATE RELEASE
ORBOTECH ANNOUNCES SECOND QUARTER 2014 RESULTS
|
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Revenues: $113.2 million
|
|
|
|
Non-GAAP net income: $0.25 per share (diluted)
|
|
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|
GAAP net income: $0.20 per share (diluted)
|
|
|
|
Operating cash flow: $11.6 million
|
|
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Service revenues: record $39.9 million
|
|
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|
Orbotech stand-alone: approximately $260 million in the second half of 2014; of which $118 - 123 million is expected in the third quarter 2014
|
|
|
|
SPTS: approximately $100 million in the second half of 2014 on a stand-alone basis under U.K. GAAP
|
YAVNE, ISRAEL August 4, 2014 ORBOTECH LTD. (NASDAQ: ORBK) today announced its consolidated financial results for the second
quarter and six months ended June 30, 2014.
Revenues for the second quarter of 2014 totaled $113.2 million, compared to $104.8
million in the first quarter of 2014 and $108.8 million in the second quarter of 2013. GAAP net income for the second quarter of 2014 was $8.6 million, or $0.20 per share (diluted), compared to GAAP net income of $6.3 million, or $0.15 per share
(diluted) for the first quarter of 2014 and GAAP net income of $10.5 million, or $0.24 per share (diluted), in the second quarter of 2013.
Commenting on the results, Asher Levy, Chief Executive Officer, said: We are pleased to report strong results for the second quarter.
Our PCB business picked up as expected and our FPD business enjoyed another quarter of solid orders as we recorded a cumulative total of $130 million in bookings for the first half of 2014. Our service revenues continue to strengthen.
Mr. Levy continued: Across the Company, we continue to benefit from our industry leadership, with customers increasingly appreciating our commitment to address their needs as they prepare to build capacity for the expected next generation
of smart devices and for the next wave of investment in production facilities for small to mid, ultra high definition displays.
Commenting on the previously-announced agreement to acquire SPTS Technologies Group Limited (
SPTS
), Mr. Levy said:
The acquisition of SPTS is part of our strategy to expand into Advanced Packaging. This significant acquisition represents a natural and strategic extension of our business into an adjacent high growth industry. We expect, through this
acquisition, to combine the extensive know-how and core assets of both companies and to enhance Orbotechs portfolio and industry leadership.
Revenues for the first six months of 2014 totaled $218.0 million, compared to $204.3 million recorded in the first six months of 2013. GAAP
net income for the first six months of 2014 was $14.9 million, or $0.35 per share (diluted), compared to GAAP net income of $15.5 million, or $0.36 per share (diluted), in the first six months of 2013.
Non-GAAP net income for the second quarter of 2014 was $10.5 million, or $0.25 per share (diluted), compared to non-GAAP net income of $12.4
million, or $0.29 per share (diluted), in the second quarter of 2013. Non-GAAP net income for the first six months of 2014 was $18.7 million, or $0.44 per share (diluted), compared to non-GAAP net income of $19.3 million, or $0.44 per share
(diluted), in the first six months of 2013. A reconciliation of each of the Companys non-GAAP measures to the comparable GAAP measure is included at the end of this press release.
1
In the Companys Production Solutions for Electronics Industry segment, sales of equipment
to the PCB industry were $48.5 million in the second quarter of 2014, compared to $41.5 million in the first quarter of 2014 and $51.1 million in the second quarter of 2013; and sales of equipment to the FPD industry were $18.4 million in the second
quarter of 2014, compared to $23.1 million in the first quarter of 2014 and $20.2 million in the second quarter of 2013. In the Solar Energy segment, sales were $5.2 million in the second quarter of 2014, compared to $1.8 million in the first
quarter of 2014 and $0 in the second quarter of 2013. In the Companys Recognition Software segment, sales were $1.2 million in the second quarter of 2014, compared to $1.4 million in the first quarter of 2014 and $1.7 million in the second
quarter of 2013. In addition, service revenue for the second quarter of 2014 was a record $39.9 million, compared to $37.0 million in the first quarter of 2014, and $35.8 million in the second quarter, of 2013.
The Company completed the quarter with cash, cash equivalents, short-term bank deposits and marketable securities of approximately $213.6
million. The Company generated cash of $11.6 million from operations in the second quarter of 2014.
To date, the Company has repurchased
approximately 950,000 of its Ordinary Shares, at a cost of approximately $14.3 million, under the share repurchase program approved by the Board of Directors and announced and commenced in the first quarter of 2014. To date, under the current
repurchase program and the repurchase program approved in November 2012, the Company has repurchased an aggregate amount of approximately 3.4 million of its Ordinary Shares, at a total cost of approximately $42.0 million. In anticipation of the
upcoming closing the SPTS acquisition, for which the Company expects to borrow $300 million under a term loan B credit facility, and the planned announcement of the Companys capital allocation policy later this month, the Board of Directors
will terminate the current share repurchase program effective as at the end of trading on Tuesday, August 5, 2014.
The Company
expects revenues for Orbotech on a stand-alone basis in the second half of 2014 to be approximately $260 million, with the third quarter expected to be in the range of $118 - $123 million. SPTS is expected, on a stand-alone basis under U.K. GAAP, to
generate revenues of approximately $100 million in the second half of 2014.
An earnings conference call for the Companys second
quarter 2014 results is scheduled for Monday, August 4, 2014, at 9:00 a.m. EDT. The dial-in number for the conference call is 210-234-0066, and a replay will be available on telephone number 203-369-3779 until August 17, 2013. The pass
code is Q2. A live web cast of the conference call and a replay can also be heard by accessing the investor relations section on the Companys 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 worlds 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, Orbotechs highly talented and inter-disciplinary professionals
design, manufacture, sell and service the Companys end-to-end portfolio of solutions for the benefit of customers the world over. For more information please see the Companys filings with the U.S. Securities and Exchange Commission (the
SEC
) at www.sec.gov. and visit the Companys corporate website at www.orbotech.com. The corporate website is not incorporated herein by reference and is included as an inactive textual reference only.
2
Cautionary Statement Regarding Forward-Looking and Other 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 managements expectations and beliefs concerning future events affecting Orbotech and SPTS and are subject to uncertainties and factors relating to Orbotechs and SPTSs
operations and business environment, all of which are difficult to predict and many of which are beyond the Companys control. Many factors could cause the actual results to differ materially from those projected including, without limitation,
the completion, timing, terms and anticipated benefits of the acquisition of SPTS and the related financing transactions; the timing and impact of conversion of SPTSs financial statements from U.K. GAAP to U.S. GAAP and the Companys
ability to switch SPTS to a U.S. GAAP reporting regime; Orbotechs ability to effectively integrate and operate SPTSs business following the acquisition, the timing, terms and success of any other strategic or other transaction,
cyclicality in the industries in which the Company or SPTS operates, the Companys and SPTSs 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 or SPTS operate, the timing and strength of product and service offerings by the Company, SPTS and each of their 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 Companys customers, which may result in monetary judgments or settlements, expenses
associated with the Korean matter, ongoing or increased hostilities in Israel and other risks detailed in the Companys SEC reports, including the Companys Annual Report on Form 20-F for the year ended December 31, 2013, and
subsequent SEC filings. The failure to complete the acquisition of SPTS could have a materially adverse effect on Orbotechs financial condition and results and could negatively impact the Companys share price. 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.
The financial information in this press release related to SPTS, including forward-looking estimates, is based on SPTSs financial
statements prepared in accordance with U.K. GAAP. U.K. GAAP differs in certain important respects from U.S. GAAP, the basis for Orbotechs financial reporting. Neither SPTS nor Orbotech has begun a reconciliation of SPTSs financial
statements from U.K. to U.S. GAAP and therefore cannot quantify the differences, which may be material. In addition, none of the Orbotech financial information in this press release gives effect to the acquisition of SPTS. Orbotech will account for
the acquisition of SPTS under the purchase method of accounting, which will result in a new valuation for the assets and liabilities of SPTS. The new basis of accounting will be based on the estimated value of the assets and liabilities on the
closing date of the acquisition. Orbotech will not be preparing any pro forma information for the acquisition and financing until the reconciliation and valuation estimates have been prepared.
3
ORBOTECH LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
AT JUNE 30, 2014
|
|
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|
|
|
|
|
|
|
|
June 30
2014
|
|
|
December 31
2013
|
|
|
|
U. S. dollars in thousands
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
164,002
|
|
|
|
161,155
|
|
Short-term bank deposits
|
|
|
26,576
|
|
|
|
38,650
|
|
Marketable securities
|
|
|
17,901
|
|
|
|
5,265
|
|
Accounts receivable:
|
|
|
|
|
|
|
|
|
Trade
|
|
|
191,174
|
|
|
|
198,203
|
|
Other
|
|
|
33,728
|
|
|
|
31,546
|
|
Deferred income taxes
|
|
|
8,117
|
|
|
|
8,094
|
|
Inventories
|
|
|
101,620
|
|
|
|
93,938
|
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
543,118
|
|
|
|
536,851
|
|
|
|
|
|
|
|
|
|
|
INVESTMENTS AND NON-CURRENT ASSETS:
|
|
|
|
|
|
|
|
|
Marketable securities
|
|
|
5,094
|
|
|
|
13,106
|
|
Funds in respect of employee rights upon retirement
|
|
|
10,931
|
|
|
|
11,024
|
|
Deferred income taxes
|
|
|
12,837
|
|
|
|
15,130
|
|
Equity method investee and other receivable
|
|
|
10,223
|
|
|
|
9,911
|
|
|
|
|
|
|
|
|
|
|
|
|
|
39,085
|
|
|
|
49,171
|
|
|
|
|
|
|
|
|
|
|
PROPERTY, PLANT AND EQUIPMENT, net
|
|
|
28,696
|
|
|
|
27,715
|
|
|
|
|
|
|
|
|
|
|
GOODWILL
|
|
|
12,444
|
|
|
|
12,444
|
|
|
|
|
|
|
|
|
|
|
OTHER INTANGIBLE ASSETS, net
|
|
|
8,381
|
|
|
|
10,401
|
|
|
|
|
|
|
|
|
|
|
|
|
|
631,724
|
|
|
|
636,582
|
|
|
|
|
|
|
|
|
|
|
Liabilities and equity
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
|
|
|
Accounts payable and accruals:
|
|
|
|
|
|
|
|
|
Trade
|
|
|
42,723
|
|
|
|
43,663
|
|
Other
|
|
|
51,710
|
|
|
|
55,482
|
|
Deferred income
|
|
|
20,865
|
|
|
|
24,854
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
115,298
|
|
|
|
123,999
|
|
|
|
|
LONG-TERM LIABILITIES:
|
|
|
|
|
|
|
|
|
Liability for employee rights upon retirement
|
|
|
24,581
|
|
|
|
25,845
|
|
Deferred income taxes
|
|
|
2,406
|
|
|
|
2,406
|
|
Other tax liabilities
|
|
|
13,664
|
|
|
|
17,178
|
|
|
|
|
|
|
|
|
|
|
Total long-term liabilities
|
|
|
40,651
|
|
|
|
45,429
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
155,949
|
|
|
|
169,428
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY:
|
|
|
|
|
|
|
|
|
Share capital
|
|
|
2,148
|
|
|
|
2,124
|
|
Additional paid-in capital
|
|
|
288,404
|
|
|
|
281,159
|
|
Retained earnings
|
|
|
283,449
|
|
|
|
268,570
|
|
Accumulated other comprehensive income (loss)
|
|
|
266
|
|
|
|
409
|
|
|
|
|
|
|
|
|
|
|
|
|
|
573,735
|
|
|
|
552,262
|
|
Less treasury shares, at cost
|
|
|
97,939
|
|
|
|
84,946
|
|
|
|
|
|
|
|
|
|
|
Total Orbotech Ltd. shareholders equity
|
|
|
475,796
|
|
|
|
467,316
|
|
Non-controlling interest
|
|
|
21
|
|
|
|
162
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
475,775
|
|
|
|
467,154
|
|
|
|
|
|
|
|
|
|
|
|
|
|
631,724
|
|
|
|
636,582
|
|
|
|
|
|
|
|
|
|
|
4
ORBOTECH LTD.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE SIX AND THREE MONTHS PERIODS ENDED JUNE 30, 2014
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6 months ended
June 30
|
|
|
3 months ended
June 30
|
|
|
12 months ended
December 31
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
2013
|
|
|
|
U.S. dollars in thousands (except per share data)
|
|
REVENUES
|
|
|
217,978
|
|
|
|
204,325
|
|
|
|
113,185
|
|
|
|
108,848
|
|
|
|
439,995
|
|
COST OF REVENUES
|
|
|
123,649
|
|
|
|
117,614
|
|
|
|
64,513
|
|
|
|
62,267
|
|
|
|
248,455
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT
|
|
|
94,329
|
|
|
|
86,711
|
|
|
|
48,672
|
|
|
|
46,581
|
|
|
|
191,540
|
|
RESEARCH AND DEVELOPMENT COSTS
- net
|
|
|
37,571
|
|
|
|
33,333
|
|
|
|
19,110
|
|
|
|
17,019
|
|
|
|
69,573
|
|
SELLING, GENERAL AND ADMINISTRATIVE
EXPENSES
|
|
|
40,166
|
|
|
|
34,784
|
|
|
|
20,574
|
|
|
|
17,522
|
|
|
|
75,948
|
|
EQUITY IN EARNINGS OF FRONTLINE
|
|
|
(3,558
|
)
|
|
|
(2,347
|
)
|
|
|
(2,054
|
)
|
|
|
(1,164
|
)
|
|
|
(5,553
|
)
|
AMORTIZATION OF INTANGIBLE ASSETS
|
|
|
2,020
|
|
|
|
2,020
|
|
|
|
1,010
|
|
|
|
1,010
|
|
|
|
4,041
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME
|
|
|
18,130
|
|
|
|
18,921
|
|
|
|
10,032
|
|
|
|
12,194
|
|
|
|
47,531
|
|
FINANCIAL EXPENSES (INCOME)
- net
|
|
|
(64
|
)
|
|
|
548
|
|
|
|
(391
|
)
|
|
|
(130
|
)
|
|
|
1,191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM OPERATIONS BEFORE TAXES ON INCOME
|
|
|
18,194
|
|
|
|
18,373
|
|
|
|
10,423
|
|
|
|
12,324
|
|
|
|
46,340
|
|
TAXES ON INCOME
|
|
|
2,991
|
|
|
|
3,135
|
|
|
|
1,641
|
|
|
|
1,971
|
|
|
|
6,927
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,203
|
|
|
|
15,238
|
|
|
|
8,782
|
|
|
|
10,353
|
|
|
|
39,413
|
|
|
|
|
|
|
|
SHARE IN LOSSES OF ASSOCIATED COMPANY
|
|
|
213
|
|
|
|
114
|
|
|
|
144
|
|
|
|
69
|
|
|
|
252
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
|
14,990
|
|
|
|
15,124
|
|
|
|
8,638
|
|
|
|
10,284
|
|
|
|
39,161
|
|
NET INCOME (LOSS) ATTRIBUTABLE TO THE NON-CONTROLLING INTEREST
|
|
|
111
|
|
|
|
(387
|
)
|
|
|
46
|
|
|
|
(216
|
)
|
|
|
(840
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME ATTRIBUTABLE TO ORBOTECH LTD.
|
|
|
14,879
|
|
|
|
15,511
|
|
|
|
8,592
|
|
|
|
10,500
|
|
|
|
40,001
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM OPERATIONS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC
|
|
$
|
0.36
|
|
|
$
|
0.36
|
|
|
$
|
0.21
|
|
|
$
|
0.24
|
|
|
$
|
0.94
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED
|
|
$
|
0.35
|
|
|
$
|
0.36
|
|
|
$
|
0.20
|
|
|
$
|
0.24
|
|
|
$
|
0.92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE NUMBER OF SHARES USED IN COMPUTATION OF EARNINGS PER SHARE - IN THOUSANDS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC
|
|
|
41,781
|
|
|
|
43,106
|
|
|
|
41,721
|
|
|
|
42,891
|
|
|
|
42,571
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED
|
|
|
42,832
|
|
|
|
43,621
|
|
|
|
42,830
|
|
|
|
43,503
|
|
|
|
43,253
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5
ORBOTECH LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX AND THREE MONTHS PERIODS ENDED JUNE 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6 months ended
June 30
|
|
|
3 months ended
June 30
|
|
|
12 months ended
December 31
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
2013
|
|
|
|
U.S. dollars in thousands
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
14,990
|
|
|
|
15,124
|
|
|
|
8,638
|
|
|
|
10,284
|
|
|
|
39,161
|
|
Adjustment to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
6,842
|
|
|
|
6,134
|
|
|
|
3,371
|
|
|
|
3,322
|
|
|
|
13,261
|
|
Impairment of Intangible assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation relating to equity awards granted to employees and others - net
|
|
|
1,553
|
|
|
|
1,637
|
|
|
|
737
|
|
|
|
864
|
|
|
|
3,182
|
|
Increase (decrease) in liability for employee rights upon retirement
|
|
|
(1,264
|
)
|
|
|
(634
|
)
|
|
|
(374
|
)
|
|
|
6
|
|
|
|
624
|
|
Deferred income taxes
|
|
|
(95
|
)
|
|
|
(1,311
|
)
|
|
|
(350
|
)
|
|
|
(1,260
|
)
|
|
|
(1,558
|
)
|
Non-cash expenses in respect of restructuring
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of premium and accretion of discount on marketable Securities, net
|
|
|
504
|
|
|
|
218
|
|
|
|
347
|
|
|
|
127
|
|
|
|
554
|
|
Equity in earnings of Frontline, net of dividend received
|
|
|
(458
|
)
|
|
|
1,244
|
|
|
|
(263
|
)
|
|
|
342
|
|
|
|
446
|
|
Other
|
|
|
441
|
|
|
|
247
|
|
|
|
235
|
|
|
|
2
|
|
|
|
268
|
|
Decrease (increase) in accounts receivable:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade
|
|
|
7,029
|
|
|
|
(20,803
|
)
|
|
|
(1,148
|
)
|
|
|
(5,320
|
)
|
|
|
(33,721
|
)
|
Other
|
|
|
(2,476
|
)
|
|
|
(1,959
|
)
|
|
|
(3,082
|
)
|
|
|
(928
|
)
|
|
|
(2,954
|
)
|
Increase (decrease) in accounts payable and accruals:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade
|
|
|
(940
|
)
|
|
|
6,372
|
|
|
|
2,212
|
|
|
|
10,431
|
|
|
|
11,377
|
|
Deferred income and other
|
|
|
(8,781
|
)
|
|
|
2,958
|
|
|
|
1,935
|
|
|
|
4,318
|
|
|
|
15,511
|
|
Decrease (increase) in inventories
|
|
|
(7,682
|
)
|
|
|
2,122
|
|
|
|
(627
|
)
|
|
|
(4,129
|
)
|
|
|
(190
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
9,663
|
|
|
|
11,349
|
|
|
|
11,631
|
|
|
|
18,059
|
|
|
|
45,961
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property, plant and equipment
|
|
|
(5,932
|
)
|
|
|
(6,505
|
)
|
|
|
(2,358
|
)
|
|
|
(3,144
|
)
|
|
|
(12,978
|
)
|
Withdraw (placement) of bank deposits
|
|
|
12,074
|
|
|
|
(50,499
|
)
|
|
|
15,598
|
|
|
|
(39,513
|
)
|
|
|
(35,636
|
)
|
Purchase of marketable securities
|
|
|
(14,242
|
)
|
|
|
(1,213
|
)
|
|
|
(11,752
|
)
|
|
|
(643
|
)
|
|
|
(9,936
|
)
|
Redemption of marketable securities
|
|
|
8,838
|
|
|
|
886
|
|
|
|
6,083
|
|
|
|
580
|
|
|
|
6,037
|
|
Investment in equity method investee
|
|
|
(250
|
)
|
|
|
|
|
|
|
(250
|
)
|
|
|
|
|
|
|
(2,250
|
)
|
Proceeds from disposal of property, plant and equipment
|
|
|
15
|
|
|
|
(200
|
)
|
|
|
6
|
|
|
|
(200
|
)
|
|
|
39
|
|
Increase in funds in respect of employee rights upon retirement
|
|
|
(72
|
)
|
|
|
(124
|
)
|
|
|
(2
|
)
|
|
|
(60
|
)
|
|
|
(262
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) investing activities
|
|
|
431
|
|
|
|
(57,655
|
)
|
|
|
7,325
|
|
|
|
(42,980
|
)
|
|
|
(54,986
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repayment of long-term bank loan
|
|
|
|
|
|
|
(48,000
|
)
|
|
|
|
|
|
|
(8,000
|
)
|
|
|
(64,000
|
)
|
Employee stock options exercised
|
|
|
5,746
|
|
|
|
910
|
|
|
|
2,223
|
|
|
|
637
|
|
|
|
3,312
|
|
Acquisition of treasury shares
|
|
|
(12,993
|
)
|
|
|
(11,693
|
)
|
|
|
(8,819
|
)
|
|
|
(9,485
|
)
|
|
|
(25,795
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in financing activities
|
|
|
(7,247
|
)
|
|
|
(58,783
|
)
|
|
|
(6,596
|
)
|
|
|
(16,848
|
)
|
|
|
(86,483
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
|
2,847
|
|
|
|
(105,089
|
)
|
|
|
12,360
|
|
|
|
(41,769
|
)
|
|
|
(95,508
|
)
|
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
|
|
161,155
|
|
|
|
256,663
|
|
|
|
151,642
|
|
|
|
193,343
|
|
|
|
256,663
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
|
|
164,002
|
|
|
|
151,574
|
|
|
|
164,002
|
|
|
|
151,574
|
|
|
|
161,155
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6
ORBOTECH LTD.
RECONCILIATION OF GAAP TO NON-GAAP RESULTS FROM CONTINUING OPERATIONS
FOR THE SIX AND THREE MONTH PERIODS ENDED JUNE 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6 months ended
June 30
|
|
|
3 months ended
June 30
|
|
|
12 months ended
December 31
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
2013
|
|
|
|
U.S. dollars in thousands
(except per share data)
|
|
|
|
|
|
|
|
Reported operating income on GAAP basis
|
|
|
18,130
|
|
|
|
18,921
|
|
|
|
10,032
|
|
|
|
12,194
|
|
|
|
47,531
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity based compensation expenses
|
|
|
1,553
|
|
|
|
1,637
|
|
|
|
751
|
|
|
|
864
|
|
|
|
3,182
|
|
Amortization of intangible assets
|
|
|
2,020
|
|
|
|
2,020
|
|
|
|
1,010
|
|
|
|
1,010
|
|
|
|
4,041
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating income
|
|
|
21,703
|
|
|
|
22,578
|
|
|
|
11,793
|
|
|
|
14,068
|
|
|
|
54,754
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net income attributable to Orbotech Ltd. on GAAP basis
|
|
|
14,879
|
|
|
|
15,511
|
|
|
|
8,592
|
|
|
|
10,500
|
|
|
|
40,001
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity based compensation expenses
|
|
|
1,553
|
|
|
|
1,637
|
|
|
|
751
|
|
|
|
864
|
|
|
|
3,182
|
|
Amortization of intangible assets
|
|
|
2,020
|
|
|
|
2,020
|
|
|
|
1,010
|
|
|
|
1,010
|
|
|
|
4,041
|
|
Share in losses of associated company
|
|
|
213
|
|
|
|
114
|
|
|
|
144
|
|
|
|
69
|
|
|
|
252
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income from operations
|
|
|
18,665
|
|
|
|
19,282
|
|
|
|
10,497
|
|
|
|
12,443
|
|
|
|
47,476
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP earnings per diluted share
|
|
$
|
0.44
|
|
|
$
|
0.44
|
|
|
$
|
0.25
|
|
|
$
|
0.29
|
|
|
$
|
1.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in earnings per diluted share calculation-in thousands
|
|
|
42,832
|
|
|
|
43,621
|
|
|
|
42,830
|
|
|
|
43,503
|
|
|
|
43,253
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7
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 Companys 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 Companys business from the same perspective as the Companys 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 Companys 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 Companys 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 Companys 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 Companys consolidated financial statements prepared in accordance with GAAP. Management regularly utilizes supplemental non-GAAP financial measures internally to
understand, manage and evaluate the Companys 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 Companys Annual Report on Form 20-F filed with the SEC for the year ended December 31, 2013.
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COMPANY CONTACTS:
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Adrian Auman
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Ann Michael
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Corporate Vice President Investor Relations
and
Special Projects
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Senior Corporate Marketing Communications Manager Orbotech Ltd.
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Orbotech Ltd.
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Tel: +972-8-942-3148
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+972-8-942-3560
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Ann Michael
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8
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
ORBOTECH LTD.
(Registrant)
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By:
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/s/ Doron Abramovitch
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Doron Abramovitch
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Corporate Vice President and
Chief Financial
Officer
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Date: August 5, 2014
Orbotech Ltd. - Ordinary Shares (NASDAQ:ORBK)
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