Orbotech Reports First Quarter 2015 Results

(PRNewswire) —

2015 first quarter highlights

  • Revenues of $185 million, compared with $105 million in the first quarter of 2014
  • Gross margin of 45.0% compared with 43.6% in the first quarter of 2014
  • Adjusted EBITDA margin of 18.3% compared with 11.8% in the first quarter of 2014
  • Non-GAAP EPS of $0.48 (diluted); GAAP EPS of $0.28 (diluted)
  • Cash generated from operations of $21.6 million

2015 second quarter guidance

  • Revenues range: $185 million to $193 million
  • Gross margin: approximately 45%.

ORBOTECH LTD. (NASDAQ: ORBK) today announced its consolidated financial results for the quarter ended March 31, 2015.

Commenting on the results, Asher Levy, Chief Executive Officer, said: "We have begun 2015 with strong revenues, profitability and cash generation. Our larger scale of operations, as well as our enhanced diversification across businesses, end markets, products and customers, has enabled us to exceed most of the revenue and profitability targets we had set ourselves for the quarter."

Mr. Levy added: "Our flat panel display business and semiconductor device division continued to perform strongly, reflecting healthy demand trends across product lines and customer segments.  Consumer electronics is becoming an increasingly indispensable part of modern life, requiring ever smaller, thinner, faster, more flexible and even wearable devices. This inevitably gives rise to escalating manufacturing challenges, which Orbotech's solutions are designed to solve, supporting both our customers and leading consumer electronics designers. The breadth and depth of our product offering, especially after the SPTS acquisition, enables us to benefit from the continually evolving and complex world of electronics."

Revenues for the first quarter of 2015 totaled $184.8 million, compared with $104.8 million in the first quarter of 2014.  Revenues for the quarter excluding the Company's semiconductor business totaled $123.4 million, up 17.7% from $104.8 million in the first quarter of 2014.

In the Company's Production Solutions for Electronics Industry segment:

- Revenues from the printed circuit board ("PCB") industry were $58.0 million, including $31.3 million in equipment sales, in the first quarter of 2015. This compares to PCB revenues of $68.6 million (including $41.5 million in equipment sales) in the first quarter of 2014.

- Revenues from the flat panel display industry ("FPD") were $57.4 million, including $47.3 million in equipment sales, in the first quarter of 2015. This compares to FPD revenues of $31.5 million (including $23.1 million in equipment sales) in the first quarter of 2014.

- Revenues from the semiconductor industry were $61.4 million, including $46.6 million in equipment sales, in the first quarter of 2015.  

In the Company's other segments, revenues totaled $8.0 million in the first quarter of 2015, compared with $4.7 million in the first quarter of 2014.

Service revenues for the first quarter of 2015 were $53.4 million, compared to $37.0 million in the first quarter of 2014.

Gross profit and gross margin in the first quarter of 2015 were $83.1 million and 45.0%, respectively, compared with $45.7 million and 43.6%, respectively, in the first quarter of 2014.  

GAAP net income for the first quarter of 2015 was $11.8 million, or $0.28 per share (diluted), up from $6.3 million, or $0.15 per share (diluted), for the first quarter of 2014.

Adjusted EBITDA and adjusted EBITDA margin for the first quarter of 2015 were $33.8 million and 18.3%, respectively, up from $12.4 million and 11.8%, respectively, for the first quarter of 2014.  

Non-GAAP net income and Non-GAAP net income margin for the first quarter of 2015 were $20.8 million and 11.2%, respectively, compared with $8.2 million and 7.8%, for the first quarter of 2014.

Non-GAAP earnings per share (diluted) for the first quarter of 2015 were $0.48, compared with $0.19 per share (diluted), for the first quarter of 2014.

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 (the "Reconciliation").

As of March 31, 2015, the Company had cash, cash equivalents, short-term bank deposits and marketable securities of approximately $180.6 million, and debt of $298.5 million.  The Company generated cash from operations of $21.6 million in the first quarter of 2015.

As a result of the Company's cash position, it intends to pay ahead of schedule $20 million on its term loan during the second quarter. 

Second Quarter Guidance

The Company expects that revenues for the second quarter of 2015 will be in the range of $185 million to $193 million and gross margin will be approximately 45%.  

Conference Call

An earnings conference call for the Company's first quarter 2015 results is scheduled for today, April 30, 2015 at 9:00 a.m. EDT. The dial-in number for the conference call is 1-517-308-9019 or (US toll-free) 800-857-6263, and a replay will be available on telephone number +1- 203-369-0510 or (US toll-free) 866-396-4184 until May 13, 2015.  The pass code is Q1. A live webcast of the conference call can also be heard by accessing the Company's website here: http://investors.orbotech.com/phoenix.zhtml?c=71865&p=irol-EventDetails&EventId=5188420.  

The webcast will remain available for 12 months at: http://investors.orbotech.com/phoenix.zhtml?c=71865&p=irol-audioArchives

About Orbotech Ltd.

Orbotech Ltd. (NASDAQ: ORBK) is a global innovator of enabling technologies used in the manufacture of the world's most sophisticated consumer and industrial products throughout the electronics and adjacent industries.  The Company is a leading provider of yield enhancement and production solutions for electronics reading, writing and connecting, used by manufacturers of printed circuit boards, flat panel displays, advanced packaging, micro-electro-mechanical systems and other electronic components.  Today, virtually every electronic device is produced using Orbotech technology.  For more information visit www.orbotech.com .  The corporate website is not incorporated herein by reference and is included as an inactive textual reference only.

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