The Company completed the quarter with cash, cash equivalents, short-term bank deposits and marketable securities of approximately $195.1 million and debt of $120 million, compared with cash, cash equivalents and marketable securities of approximately $184.8 million and debt of $128 million at the end of the fourth quarter of 2010. The Company generated cash of $7.9 million from continuing operations in the first quarter of 2011.
In April 2011, the Company entered into a conditional agreement for a management buyout of Orbotech Medical Denmark A/S. As a result of the Company’s earlier commitment to divest this entity by the end of 2011, which culminated in this agreement, and of the previously announced agreement for the sale of the assets of Orbotech Medical Solutions Ltd., both of these companies had been classified as discontinued operations. This is reflected in the financial data for the first quarter of 2011, as well as in certain financial data for previous fiscal years provided in the Company’s 2010 Annual Report and Financial Statements, which were re-cast accordingly. These transactions are not expected to impact the Company’s cash flow from operating activities in any material respect.
The Company is also pleased to announce the appointment of Mr. Doron Abramovitch to the position of Corporate Vice President and Chief Financial Officer, effective as of May 1, 2011. Commenting on this appointment, Rani Cohen said: “Doron brings to Orbotech extensive experience in both finance and operations and will be a very strong addition to the Company’s management team.”
To date, there has not been any impact on the Company’s business as a result of the recent events in Japan, although there may be in the future, and the Company will continue to monitor this closely.An earnings conference call for the Company’s first quarter 2011 results is scheduled for Thursday, May 12, 2011, at 9:00 a.m. EST. The dial-in number for the conference call is 212-287-1850, and a replay will be available on telephone number 203-369-1832 until May 27 2011. 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 and flat panel displays; and 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 visit www.orbotech.com. Cautionary Statement Regarding Forward-Looking Statements and Non-GAAP Financial Measures 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, cyclicality in the industries in which the Company operates, the Company’s production capacity, timing and occurrence of product acceptance, 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 impact of the recent events in Japan 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, 2010. 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.