ORBOTECH LTD. (NASDAQ/GSM SYMBOL: ORBK) today announced its consolidated financial results for the fourth quarter and year ended December 31, 2011; and is providing preliminary guidance for 2012.
Commenting on the results, Rani Cohen, President and Chief Executive Officer, said: “With the posting of our fourth quarter results we are pleased to report record annual revenues for Orbotech in 2011, as well as strong cash flow and net income. During the year we saw healthy growth in the global demand for sophisticated devices such as smartphones, tablets and other mobile connected devices. This trend helped us achieve 30% year over year growth in our PCB business, including touch screen and other electronics component manufacturing which has added considerably to our total available market, confirming our industry leadership. Orbotech enters 2012 with an outstanding product portfolio and we believe we are well positioned to capitalize on the continuing upswing in these industries, where our equipment is becoming increasingly critical to manufacturers. At the same time, capital expenditure in the FPD industry is in the midst of a significant downturn; however, we expect that it will improve in the latter part of 2012 and have taken steps to align our infrastructure accordingly, which will result in a charge of approximately $2 million in the first quarter of 2012. Overall, we look forward to a gradual recovery in the FPD industry during 2012 and to continued improvement in our PCB and electronics component manufacturing business.”
Revenues for the fourth quarter of 2011 totaled $133.3 million, compared to $144.4 million in the third quarter of 2011 and $128.4 million in the fourth quarter of 2010. GAAP net income for the fourth quarter of 2011 was $2.5 million, or $0.06 per share (diluted), compared to GAAP net income of $14.7 million, or $0.34 per share (diluted), for the third quarter of 2011 and GAAP net income of $4.0 million, or $0.11 per share (diluted), in the fourth quarter of 2010. Net income for the fourth quarter of 2011 includes a write-down of $6.7 million of inventories relating primarily to excess inventories of components for certain of our FPD products in connection with the current cyclical downturn in the FPD industry.