Orbotech Reports Q3 2018 Revenues of $261.2 Million

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Orbotech Ltd. announced its consolidated financial results for the third quarter of 2018.

During the third quarter of 2018, the Company continued to perform well and to provide its customers with innovative solutions that enable them to overcome some of the most difficult production challenges they face today. The Company expects to conclude the year with revenues of approximately $1.05 billion, reflecting a year-over-year growth rate of around 17%.

Revenues for the third quarter of 2018 totaled $261.2 million, compared with $245.7 million in the third quarter of 2017, and $267.5 million in the second quarter of 2018.

In the Company’s Production Solutions for Electronics Industry segment:

• Revenues from the Company’s printed circuit board (PCB) business were $94.7 million (including $56.7 million in equipment sales) in the third quarter of 2018. This compares to PCB revenues of $85.7 million (including $52.6 million in equipment sales) in the third quarter of 2017.
• Revenues from the Company’s flat panel display (FPD) business were $78.2 million (including $65.6 million in equipment sales) in the third quarter of 2018.This compares to FPD revenues of $76.0 million (including $64.5 million in equipment sales) in the third quarter of 2017.
• Revenues from the Company’s semiconductor device (SD) business were $79.0 million (including $62.8 million in equipment sales) in the third quarter of 2018. This compares to SD revenues of $78.6 million (including $65.9 million in equipment sales) in the third quarter of 2017.

Revenues in the company’s other segments totaled $9.3 million in the third quarter of 2018, compared with $5.4 million in the third quarter of 2017.

Service revenues for the third quarter of 2018 were $68.7 million, compared with $59.2 million in the third quarter of 2017.

Gross profit and gross margin in the third quarter of 2018 were $120.8 million and 46.3%, respectively, compared with $118.0 million and 48.0%, respectively, in the third quarter of 2017.

GAAP net income and GAAP net income margin in the third quarter of 2018 were $29.2 million and 11.2%, respectively, compared with $36.6 million and 14.9%, respectively, in the third quarter of 2017.

GAAP earnings per share (diluted) for the third quarter of 2018 were $0.59, compared with $0.75 for the third quarter of 2017.

Adjusted EBITDA and adjusted EBITDA margin for the third quarter of 2018 were $54.0 million and 20.7%, respectively, compared with $57.6 million and 23.5%, respectively, in the third quarter of 2017.

Non-GAAP net income and non-GAAP net income margin for the third quarter of 2018 were $39.3 million and 15.0%, respectively, compared with $44.7 million and 18.2%, respectively, for the third quarter of 2017.  Non-GAAP earnings per share (diluted) for the third quarter of 2018 were $0.79, compared with $0.91 per share, for the third quarter of 2017.

As of September 30, 2018, the Company had cash, cash equivalents, short term bank deposits and marketable securities of $406.2 million, and debt of $56.5 million.During the third quarter of 2018, the Company generated cash from operations of $52.9 million. As of September 30, 2018, the actual number of ordinary shares outstanding was approximately 48.6 million.

Fourth Quarter 2018 Guidance

The Company expects fourth quarter 2018 revenue to be approximately $270 million and to conclude the year with revenues of approximately $1.05 billion, reflecting a year-over-year growth rate of around 17%, based on current expectations of product mix. 

In light of the pending acquisition by KLA-Tencor Corporation, Orbotech will not provide guidance other than with respect to quarterly revenues, nor will it hold a conference call to discuss its financial results.

About Orbotech Ltd.

Orbotech Ltd. is a leading global supplier of yield-enhancing and process-enabling solutions for the manufacture of electronics products. Orbotech provides cutting-edge solutions for use in the manufacture of printed circuit boards (PCBs), flat panel displays (FPDs), and semiconductor devices (SDs), designed to enable the production of innovative, next-generation electronic products and improve the cost effectiveness of existing and future electronics production processes. Orbotech’s core business lies in enabling electronic device manufacturers to inspect and understand PCBs and FPDs and to verify their quality (reading); pattern the desired electronic circuitry on the relevant substrate and perform three-dimensional shaping of metalized circuits on multiple surfaces; and utilize advanced vacuum deposition and etching processes in SD and semiconductor manufacturing. Orbotech refers to this ‘reading’, ‘writing’ and ‘connecting’ as enabling the ‘Language of Electronics’. For more information, click here.