ORBOTECH LTD. (the “ Company”) (NASDAQ/GSM SYMBOL: ORBK) today announced that it is revising previously provided revenue guidance to cover a range of possible revenue outcomes. For the full year 2012, revenue guidance is revised to the range of $430 - 450 million from $500 million; however, the Company still expects to meet the previously announced first half revenue guidance of approximately $200 million.
The current low level of capital spending in the flat panel display (“FPD”) industry is expected to continue through 2012 and into the first half of 2013, as LCD manufacturers delay scheduled ‘move in’ dates for their new fabrication facilities to 2013. Lead times for delivery of the Company’s FPD products have become shorter, which has decreased the visibility into the Company’s expected business. At the same time, the level of activity in the printed circuit board (“ PCB”) industry has, and is expected, to remain consistent with 2011 levels throughout 2012.
The Company has recorded legal and other expenses in connection with the previously announced investigation in Korea in the second quarter and expects to record additional expenses in the second half of the year. As a result of this and the revised revenue expectations discussed above, the Company is withdrawing all of its previously announced 2012 earnings per share guidance, which should no longer be relied upon.
Separately, the Company today announced that it has received notification of charges filed by government officials in the Seoul Central District Court of the Republic of Korea related to the alleged acquisition and misuse of confidential customer information. The Company’s Korean subsidiary and six local employees have been indicted and the investigation into the actions of employees of the Company and its subsidiaries outside of Korea is ongoing. The Company’s Korean subsidiary continues to co-operate with the Korean authorities in this matter. The Company is disappointed by the groundless allegations made by the prosecutor and intends to defend itself and its employees vigorously. Orbotech denies any criminal intent and it has confidence in the Korean judicial system and that the applicable facts and defenses will be given full and fair consideration.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV