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ORBOTECH LTD. (NASDAQ/GSM SYMBOL: ORBK) today announced its consolidated financial results for the first quarter ended March 31, 2012.
Commenting on the quarter, Rani Cohen, President and Chief Executive Officer, said: “We are satisfied with our first quarter financial results. We are particularly pleased with the improvement in our gross margins, reflecting our operating efficiencies and favorable product mix, and the record revenues from our customer support operations, a reflection of our continued success in securing service contracts. After a somewhat slow start to the year, in recent weeks we are seeing significantly improved sales of our PCB equipment. Although capital spending in the FPD industry remains slow, we continue to believe that capital expenditure in this industry will return to higher levels as the year progresses and the current FPD cyclical downturn begins to abate. Even with some uncertainty in the FPD industry, we are leaving our previously-announced guidance unchanged and continue to expect first half 2012 revenues of approximately $200 million and full year 2012 revenues of approximately $500 million.” Mr. Cohen added: “As in the past, our exceptional product portfolio positions us well to take advantage of existing strong consumer demand for sophisticated devices such as smartphones, tablets and other electronic devices, and anticipated demand for advanced panel devices once the FPD industry begins to recover.”
Revenues for the first quarter of 2012 totaled $100.2 million, compared to $133.3 million in the fourth quarter, and $134.2 million in the first quarter, of 2011. GAAP net income for the first quarter of 2012 was $1.6 million, or $0.04 per share (diluted), compared to GAAP net income of $2.5 million, or $0.06 per share (diluted), for the fourth quarter of 2011 and GAAP net income of $11.2 million, or $0.31 per share (diluted), in the first quarter of 2011. GAAP net income for the first quarter of 2012 includes a $1.9 million restructuring charge relating to the Company’s cost reduction program. GAAP 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 the Company’s FPD products in connection with the current cyclical downturn in the FPD industry.