Merrill Lynch is raising several questions regarding Orbotech's (Nasdaq:ORBK) (ORBK) financial results published this week.

In a valuation announced this morning analyst Ilana Treston claims the company's assertion it will need two to three more years to sell its existing inventory is not conservative enough. Her view is that the company must write off any inventory that will not be sold this year in order to reach a more accurate valuation of the inventory. In its annual results, Orbotech reported the value of its entire inventory to be $84 million.

Treston posed another question regarding the company┬┐s policy on goodwill amortization. Orbotech currently does not significantly reduce this item, which Merrill Lynch believes should be slashed so as to reach a more appropriate value.

In the company's annual reports goodwill is valued at $10 million.

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