Orbotech’s PCB equipment sales up in Q2

Citation

(2012), "Orbotech’s PCB equipment sales up in Q2", Circuit World, Vol. 38 No. 4. https://doi.org/10.1108/cw.2012.21738daa.005

Orbotech’s PCB equipment sales up in Q2

Article Type: Industry news From: Circuit World, Volume 38, Issue 4

Revenues for the second quarter of 2012 totalled $101.3 million, compared to $100.2 million in the first quarter of 2012 and $153.4 million in the second quarter of 2011. GAAP net loss for the second quarter of 2012 was $0.8 million, or $0.02 per share, compared to GAAP net income of $1.6 million, or $0.04 per share (diluted) for the first quarter of 2012 and GAAP net income of $18.9 million, or $0.48 per share (diluted), in the second quarter of 2011.

Revenues for the first six months of 2012 totalled $201.6 million, compared to $287.6 million recorded in the first six months of 2011. GAAP net income for the first six months of 2012 was $0.8 million, or $0.02 per share (diluted), compared to a GAAP net income of $30.1 million, or $0.80 per share (diluted), in the first six months of 2011.

Non-GAAP net income for the second quarter of 2012 was $3.1 million, or $0.07 per share (diluted), compared to non-GAAP net income of $21.8 million, or $0.56 per share (diluted), in the second quarter of 2011. Non-GAAP net income for the first six months of 2012 was $10.6 million, or $0.24 per share (diluted), compared to non-GAAP net income of $37.0 million, or $0.98 per share (diluted), in the first six months of 2011. A reconciliation of each of the company’s non-GAAP measures to the comparable GAAP measure is included at the end of this press release.

In the company’s production solutions for electronics industry segment, sales of equipment to the PCB industry were $48.6 million in the second quarter of 2012, compared to $48.5 million in the first quarter of 2012 and $58.7 million in the second quarter of 2011; and sales of equipment to the FPD industry were $12.3 million in the second quarter of 2012, compared to $11.8 million in the first quarter of 2012 and $56.7 million in the second quarter of 2011. In the company’s recognition software segment, sales were $1.7 million in the second quarter of 2012, compared to $2.0 million in the first quarter of 2012 and $1.6 million in the second quarter of 2011. In addition, service revenue for the second quarter of 2012 reached a quarterly record $38.7 million, compared to $37.9 million in the first quarter of 2012 and $36.4 million in the second quarter of 2011.

The company completed the quarter with cash, cash equivalents, short-term bank deposits, and marketable securities of approximately $279.1 million; and debt of $80 million, compared with cash, cash equivalents, short-term bank deposits and marketable securities of approximately $267.5 million; and debt of $88 million at the end of the first quarter of 2012. The company generated cash of $21.7 million from continuing operations in the second quarter of 2012.

Commenting on the quarter, Rani Cohen, President and Chief Executive Officer, said, “After a somewhat slow start to the year, in recent weeks we are seeing increased order activity related to our PCB equipment, in particular related to direct imaging systems for touch screen manufacturers, after the end of the quarter. In addition, FPD manufacturers are beginning to report higher levels of planned capital expenditures, which we believe will translate into new orders for the company in the next few months. We are pleased with our cash generation and the posting of a third successive quarter of record revenues from our customer support operations, which we look on as a vote of confidence from our expanding customer base. We continue the close monitoring of our operating expenses which – net of the Korean matter – decreased as compared with the first quarter of 2012.”

Cohen added, “Although we recently reduced our revenue guidance for the second half of 2012, we believe that global consumer demand for advanced mobile devices will create strong business conditions for Orbotech in the latter part of 2012 and in 2013. As in the past, we expect that our exceptional product portfolio will position 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.”

For further information, please visit the web site: www.orbotech.com