Orbotech Revises Annual Revenue Guidance and Responds to Allegations in Korea
28 Junho 2012 - 9:52AM
Business Wire
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.
Orbotech has been a world-leading supplier in the electronics
industry supply chain for over 30 years and has been operating
successfully in Korea for more than 20 years. With an extensive
customer base including all major participants in the industries it
serves, the Company has maintained a long-standing reputation for
integrity, professionalism and individual client confidentiality.
Throughout its history, Orbotech has routinely worked in close
co-operation with its customers, which necessarily involves the
confidential exchange of sensitive data, to develop and provide the
enabling production solutions and support needed to keep pace with
the rapid technological advancement in consumer and industrial
electronic devices.
Orbotech has always been uncompromisingly committed to upholding
the highest ethical standards in its workplace and business
dealings. The Company fully understands and respects the value of
intellectual property and its major significance as a core asset of
any company or country. The Company has strict policies to protect
the intellectual property of its customers and other third parties,
and takes any violation of these policies seriously. The Company
believes that all of the customer information referred to in this
matter was obtained and used solely for appropriate purposes,
including providing requested support to the customers and was not
distributed outside the Company. In addition, all technological
information at issue was already in Orbotech’s possession or was
readily available from other materials already in Orbotech’s
possession.
The Company values its customer relationships in Korea and all
of its principal business operations in Korea are continuing to
operate as usual to meet the needs of its customers. However, the
Korean matter discussed above may negatively impact sales in Korea,
including causing the Company to delay or forego existing and
future business opportunities in that country. Although the
Company’s sales and business operations in Korea relating to FPD,
PCB and service represented 16% of the Company’s total revenues in
2011, Korea was and is expected to contribute at a lower level to
the Company’s revenues in 2012; though no erosion in the Company’s
competitive position is anticipated. As previously mentioned, the
Company believes there are meritorious defenses to the charges in
Korea and intends to defend itself and its employees vigorously,
but at this time, given the preliminary stage of the matter, the
Company cannot predict the ultimate outcome of this matter on its
business in Korea.
The Company looks forward to continuing to provide best-in-class
technologies and support for the benefit of its customers
worldwide.
In addition, the Company regularly evaluates strategic business
transactions, including acquisitions of related businesses, as one
element of its corporate strategy. Although the Company is
selectively pursuing strategic opportunities, some or all of these
transactions may not be announced in the foreseeable future, or at
all, and the Company may not consummate these transactions even
following their announcement. The expense incurred in evaluating
and consummating strategic transactions could result in the Company
incurring expenses and losses even if any announced transaction
ultimately may be beneficial.
About Orbotech Ltd.
Orbotech Ltd. (NASDAQ/GSM: ORBK) has been at the cutting edge of
the electronics industry supply chain, as an innovator of enabling
technologies used in the manufacture of the world’s most
sophisticated consumer and industrial products, for over 30 years.
The Company is a leading provider of yield-enhancing and production
solutions, primarily for manufacturers of printed circuit boards,
flat panel displays and other electronic components; and today,
virtually every electronic device is produced using Orbotech
technology. The Company also applies its core expertise and
resources in other advanced technology areas, including character
recognition for check and forms processing and solar photovoltaic
manufacturing. Headquartered in Israel and operating from multiple
locations internationally, Orbotech’s highly talented and
inter-disciplinary professionals design, manufacture, sell and
service the Company’s end-to-end portfolio of solutions for the
benefit of customers the world over. For more information please
see the Company’s filings with the U.S. Securities and Exchange
Commission at www.sec.gov. and visit the Company’s corporate
website at www.orbotech.com. The corporate website is not
incorporated herein by reference and is included as an inactive
textual reference only.
Cautionary Statement Regarding
Forward-Looking Statements
Except for historical information, the matters discussed in this
press release are forward-looking statements within the meaning of
the U.S. Private Securities Litigation Reform Act of 1995. These
statements relate to, among other things, future prospects,
developments and business strategies and involve certain risks and
uncertainties. The words “anticipate,” “believe,” “could,” “will,”
“plan,” “expect” and “would” and similar terms and phrases,
including references to assumptions, have been used in this press
release to identify forward-looking statements. These
forward-looking statements are made based on management’s
expectations and beliefs concerning future events affecting
Orbotech and are subject to uncertainties and factors relating to
its operations and business environment, all of which are difficult
to predict and many of which are beyond the Company’s control. Many
factors could cause the actual results to differ materially from
those projected including, without limitation, the timing, terms
and success of any strategic transaction, the outcome and impact of
the pending criminal investigation in Korea, including any impact
on existing or future business opportunities, cyclicality in the
industries in which the Company operates, the Company’s production
capacity, timing and occurrence of product acceptance, worldwide
economic conditions generally, especially in the industries in
which the Company operates, the timing and strength of product and
service offerings by the Company and its competitors, changes in
business or pricing strategies, changes in the prevailing political
and regulatory framework in which the relevant parties operate or
in economic or technological trends or conditions, including
currency fluctuations, inflation and consumer confidence, on a
global, regional or national basis, the level of consumer demand
for sophisticated devices such as smartphones, tablets and other
electronic devices and other risks detailed in the Company’s SEC
reports, including the Company’s Annual Report on Form 20-F for the
year ended December 31, 2011. The Company assumes no obligation to
update the information in this press release to reflect new
information, future events or otherwise, except as required by
law.
Orbotech Ltd. - Ordinary Shares (NASDAQ:ORBK)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
Orbotech Ltd. - Ordinary Shares (NASDAQ:ORBK)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024