ORBOTECH LTD. (NASDAQ/GSM SYMBOL: ORBK) today announced its
consolidated financial results for the fourth quarter and year
ended December 31, 2012.
Revenues for the fourth quarter of 2012 totaled $100.3 million,
compared to $98.9 million in the third quarter of 2012 and $133.3
million in the fourth quarter of 2011. GAAP net loss for the fourth
quarter of 2012 was $0.7 million, or $0.02 per share, compared to
GAAP net loss of $45.7 million, or $1.05 per share, in the third
quarter of 2012 and a GAAP net income of $2.5 million, or $0.06 per
share (diluted), in the fourth quarter of 2011. Net loss for the
fourth quarter of 2012 includes a restructuring charge of $3.2
million relating to certain measures taken to realign the Company’s
infrastructure with current revenue levels and business conditions,
including a reduction in worldwide workforce, consolidation of
certain Company facilities and other cost-cutting measures.
Commenting on the results, Asher Levy, Chief Executive Officer,
said: “2012 was an extremely challenging year for the Company,
primarily due to lower capital expenditures by LCD manufacturers
and the deferral of capital expenditures by PCB manufacturers in
response to highly uncertain global economic conditions. During the
fourth quarter, we took steps to reduce our expense structure,
which will better position us to benefit from the improvement we
are already beginning to see in the FPD industry and from the
expected growth in the PCB industry. In 2013, these measures should
result in savings of approximately $10 million in operating
expenses and will afford us significant operating leverage.
However, they will not impact our service business nor diminish our
ability to continue to develop the best solutions to meet our
customers’ needs.”
Revenues for the year ended December 31, 2012 totaled $400.7
million, compared to $565.3 million in 2011. GAAP net loss for the
year ended December 31, 2012 was $45.6 million, or $1.05 per share,
compared to a GAAP net income of $47.3 million, or $1.16 per share
(diluted), in 2011.
GAAP net loss for the year reflects: (a) an impairment charge of
$30.1 million, or $0.69 per share, relating to intangible assets
allocated to the Company’s flat panel display (“FPD”)
business, following the assessment and testing of the value of
those assets in light of the changed FPD industry and business
conditions; (b) a write-down of inventories and a provision for
non-cancelable commitments in the amount of $14.3 million, or $0.33
per share, relating primarily to components for the Company’s FPD
products, which takes into consideration the Company’s current
inventory levels and its assessment as to anticipated future demand
for its FPD products; (c) $4.0 million of net costs associated with
the previously-disclosed charges filed in Korea against the Korean
subsidiary of Orbotech Ltd. and six employees thereof (the
“Korean Matter”); and (d) $5.1 million in restructuring
charges related to the Company’s cost reduction programs.
Non-GAAP net income from continuing operations for the fourth
quarter of 2012 was $3.9 million, or $0.09 per share (diluted),
compared to non-GAAP net income from continuing operations of $6.5
million, or $0.15 per share (diluted), in the fourth quarter of
2011.
Non-GAAP net income from continuing operations for the year
ended December 31, 2012 was $2.3 million, or $0.05 per share
(diluted), compared to non-GAAP net income from continuing
operations of $62.2 million, or $1.52 per share (diluted), for the
year ended December 31, 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 printed circuit board
(“PCB”) industry were $42.2 million in the fourth quarter of
2012, compared to $42.0 million in the third quarter of 2012, and
$52.6 million in the fourth quarter of 2011. Sales of equipment to
the FPD industry were $17.6 million in the fourth quarter of 2012,
compared to $15.3 million in the third quarter of 2012, and $42.5
million in the fourth quarter of last year. In the Company’s
Recognition Software segment, sales were $2.5 million in the fourth
quarter of 2012, compared to $2.0 million in the third quarter of
2012, and $2.1 million in the fourth quarter of 2011. In addition,
service revenue for the fourth quarter of 2012 was $38.0 million,
compared to $39.6 million in the third quarter of 2012, and $36.0
million in the fourth quarter of 2011.
The Company completed the quarter with cash, cash equivalents,
short-term bank deposits and marketable securities of approximately
$278.8 million; and debt of $64.0 million, compared with cash, cash
equivalents and short-term bank deposits of approximately $276.2
million; and debt of $72.0 million at the end of the third quarter
of 2012. The Company generated cash of $12.7 million from
continuing operations in the fourth quarter of 2012. Additionally,
during February 2013, the Company prepaid $32.0 million of its loan
from the Israel Discount Bank Ltd. and estimates that this will
result in a reduction of approximately $1.8 million in its
financial expenses for 2013. The remaining $32.0 million loan from
Israel Discount Bank Ltd. is due by December 21, 2013 and,
accordingly has been classified as a current liability.
To date, the Company has repurchased 429,812 of its Ordinary
Shares, at a total cost of approximately $3.74 million, under the
share repurchase program approved and announced in November 2012.
Pursuant to approval granted by its Board of Directors, the Company
will continue to repurchase shares, up to the originally approved
total of $30.0 million. Such purchases will be subject, among other
things, to the share price and market conditions and will be made
in accordance with all applicable laws and regulations.
Hearings on the Korean Matter remain ongoing, as does the
investigation by the prosecutor into the actions of employees of
the Company outside of Korea, in connection with which the
Company’s Korean subsidiary continues to co-operate with the Korean
authorities. The Company recorded $4.0 million in net costs in 2012
in connection with the Korean Matter, and expects to continue to
incur fees and expenses associated therewith.
Due to the elimination of the proportionate method of
consolidation for joint ventures under applicable Israeli GAAP,
which became effective on January 1, 2013, commencing from the
first quarter of 2013 the Company will account for its interest in
Frontline P.C.B. Solutions Limited Partnership (“Frontline”)
using the equity method and, as a result, will report its
investment as a one line item within investments and other
non-current assets in the consolidated balance sheets; and its
share of earnings on one line in the Company’s consolidated
statement of operations. This presentation will be applied in the
Company’s financial statements for all prior periods for
consistency. Accordingly, the Company’s reported financial
statements for prior periods, including the financial statements in
this press release, will change in future periods. The Company’s
share in the earnings of Frontline will be presented under
operating income since Frontline is integrated into the operations
of the Company.
The Company expects that revenues for the first quarter of 2013,
which it anticipates will be the lowest quarter for the year, will
be approximately $93 - $94 million, or about $90 million under the
new accounting treatment in connection with Frontline, as discussed
above.
An earnings conference call for the Company’s fourth quarter
2012 results is scheduled for Tuesday, February 19, 2013, at 9:00
a.m. EST. The dial-in number for the conference call is
517-308-9494, and a replay will be available on telephone number
402-220-9088 until March 5, 2013. The pass code is Q4. A live web
cast of the conference call and a replay can also be heard by
accessing the investor relations section on the Company’s website
at www.orbotech.com.
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 matter and ongoing investigation in Korea,
including any impact on existing or future business opportunities
in Korea and elsewhere, any civil actions related to the Korean
Matter brought by third parties, including the Company’s customers,
which may result in monetary judgments or settlements, expenses
associated with the Korean Matter, cyclicality in the industries in
which the Company operates, the Company’s production capacity,
timing and occurrence of product acceptance, fluctuations in
product mix, 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; and its reports on
Form 6-K filed with the SEC on May 16, June 11, June 28, August 6,
August 7 and November 6, 2012. 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.
Non-GAAP Financial
Measures
Non-GAAP net income, non-GAAP net income from continuing
operations and non-GAAP net income from continuing operations per
share detailed in the Reconciliation exclude charges, income or
losses, as applicable, related to one or more of the following: (i)
equity-based compensation expenses; (ii) certain items associated
with acquisitions, including amortization and impairment of
intangibles; (iii) discontinued operations; (iv) restructuring
charges; and/or (v) share in losses of associated company.
Management uses these non-GAAP measures to evaluate the Company’s
operating and financial performance in light of business objectives
and for planning purposes. These measures are not in accordance
with GAAP and may differ from non-GAAP methods of accounting and
reporting used by other companies. Orbotech believes that these
measures enhance investors’ ability to review the Company’s
business from the same perspective as the Company’s management and
facilitate comparisons with results for prior periods. The
presentation of this additional non-GAAP information should not be
considered in isolation or as a substitute for net income; net
income attributable to Orbotech Ltd. or earnings per share prepared
in accordance with GAAP, and should be read only in conjunction
with the Company’s consolidated financial statements prepared in
accordance with GAAP. The reasons why management uses these
measures, the usefulness of these measures and the material
limitations on the usefulness of these measures are set forth
below. For a detailed explanation of the adjustments made to
comparable GAAP measures, please see the Reconciliation.
To supplement the Company’s financial results presented on a
GAAP basis, the Company uses the non-GAAP measures indicated in the
Reconciliation, which exclude equity based compensation expenses,
amortization of intangible assets, in-process research and
development charges, share in losses/profits of associated
companies and impairment and restructuring charges, as well as
certain financial expenses and non-recurring income items that are
believed to be helpful in understanding and comparing past
operating and financial performance with current results. However,
the non-GAAP measures presented are subject to limitations as an
analytical tool because they exclude recurring items (such as
equity compensation and amortization of intangible assets) as
described below and because they do not reflect certain cash
expenditures that are required to operate the Company’s business,
such as interest expense and taxes. Accordingly, these non-GAAP
financial measures are not meant to be considered in isolation or
as a substitute for comparable GAAP measures and should be read
only in conjunction with the Company’s consolidated financial
statements prepared in accordance with GAAP. Management regularly
utilizes supplemental non-GAAP financial measures internally to
understand, manage and evaluate the Company’s business and make
operating decisions. These non-GAAP measures are among the primary
factors management uses in planning for and forecasting future
periods. Non-GAAP financial measures reflect adjustments based on
the following items, as well as the related income tax effects.
The effect of equity-based compensation expenses has been
excluded from the non-GAAP measures. Although equity-based
compensation is a key incentive offered to employees, and the
Company believes such compensation contributed to the revenues
earned during the periods presented and also believes it will
contribute to the generation of future period revenues, the Company
continues to evaluate its business performance excluding equity
based compensation expenses. Equity-based compensation expenses
will recur in future periods.
The effects of amortization of intangible assets have also been
excluded from the measures. This item is inconsistent in amount and
frequency and is significantly affected by the timing and size of
acquisitions. Investors should note that the use of intangible
assets contributed to revenues earned during the periods presented
and will contribute to future period revenues as well. Amortization
of intangible assets will recur in future periods and the Company
may be required to record additional impairment charges in the
future. The Company believes that it is useful for investors to
understand the effects of these items on total operating expenses.
For more information about these items, see the Reconciliation and
the Company’s Annual Report on Form 20-F filed with the SEC for the
year ended December 31, 2011.
ORBOTECH LTD. CONDENSED CONSOLIDATED BALANCE SHEETS
AT DECEMBER 31, 2012
December 31 December 31
2012
2011
U.S. dollars in thousands
Assets
CURRENT
ASSETS:
Cash and cash equivalents 260,761 151,237 Short-term bank deposits
3,014 145,292 Marketable securities 2,238 Accounts receivable:
Trade 164,498 196,232 Other 29,908 26,163 Deferred income taxes
7,862 6,580 Inventories 93,854 105,109
Total current assets
562,135 630,613
INVESTMENTS AND
NON-CURRENT ASSETS:
Marketable securities 12,788 Funds in respect of employee rights
upon retirement 11,280 11,846 Deferred income taxes 13,634 8,999
Other long-term investments 1,880 2,426 39,582
23,271
PROPERTY, PLANT AND
EQUIPMENT, net
24,715 26,664
GOODWILL
12,444 12,444
OTHER INTANGIBLE
ASSETS, net
14,442 54,491 653,318 747,483
Liabilities and
equity
CURRENT
LIABILITIES:
Current maturities of long-term bank loan 64,000 32,000 Accounts
payable and accruals: Trade 27,587 32,357 Other 51,895 57,590
Deferred income 17,388 25,910
Total current liabilities
160,870 147,857
LONG-TERM
LIABILITIES:
Long-term bank loan 64,000 Liability for employee rights upon
retirement 26,221 26,797 Deferred income taxes 2,236 1,759 Other
tax liabilities 16,478 16,938
Total long-term liabilities
44,935 109,494
Total liabilities
205,805 257,351
EQUITY:
Share capital 2,102 2,092 Additional paid-in capital 274,856
270,966 Retained earnings 228,569 274,148 Accumulated other
comprehensive income (loss) 628 (1,460 ) 506,155 545,746
Less treasury shares, at cost (59,151 ) (57,192 )
Total Orbotech Ltd. shareholders'
equity
447,004 488,554 Non-controlling interest 509 1,578
Total equity
447,513 490,132 653,318 747,483
ORBOTECH LTD. CONDENSED CONSOLIDATED
STATEMENTS OF INCOME FOR THE YEAR AND THREE MONTHS ENDED
DECEMBER 31, 2012
12 months ended
3 months ended
December 3 1 December 3 1 2 0 1 2 2 0 1 1 2 0 1 2
2 0 1 1 U.S. dollars in
thousands (except per share data)
REVENUES
400,731 565,313 100,301 133,333
COST OF
REVENUES
235,223 329,442 60,977 78,037
WRITE- DOWN OF
INVENTORIES
14,255 6,743
6,743
GROSS
PROFIT
151,253 229,128 39,324 48,553
RESEARCH AND
DEVELOPMENT COSTS - net
71,815 84,180 17,752 21,598
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES
75,142 72,583 17,982 18,894
AMORTIZATION OF
INTANGIBLE ASSETS
9,907 12,304 991 3,091
RESTRUCTURING
CHARGES
5,063 3,145
IMPAIRMENT OF
INTANGIBLE ASSETS
30,142 162
OPERATING INCOME
(LOSS)
(40,816 ) 60,061 (708 ) 4,970
FINANCIAL EXPENSES
(INCOME)- net
5,100 6,551 (146 ) 845
INCOME (LOSS) FROM
CONTINUING OPERATIONS BEFORE TAXES ON INCOME
(45,916 ) 53,510 (562 ) 4,125
TAXES ON
INCOME
456 7,677 234 1,855 (46,372 ) 45,833
(796 ) 2,270
SHARE IN LOSSES OF
ASSOCIATED COMPANY
165 179 50 70
NET INCOME (LOSS)
FROM CONTINUING OPERATIONS
(46,537 ) 45,654 (846 ) 2,200
INCOME FROM
DISCONTINUED OPERATIONS, NET OF TAX
1,363
NET INCOME
(LOSS)
(46,537 ) 47,017 (846 ) 2,200
NET LOSS
ATTRIBUTABLE TO NON-CONTROLLING INTERESTS
(958 ) (322 ) (112 ) (347 )
NET INCOME (LOSS)
ATTRIBUTABLE TO ORBOTECH LTD.
(45,579 ) 47,339 (734 ) 2,547
AMOUNTS ATTRIBUTABLE
TO ORBOTECH LTD.:
INCOME (LOSS) FROM
CONTINUING OPERATIONS
(45,579 ) 45,976 (734 ) 2,547
INCOME FROM
DISCONTINUED OPERATIONS, NET OF TAX
1,363
NET INCOME (LOSS)
ATTRIBUTABLE TO ORBOTECH LTD.
(45,579 ) 47,339 (734 ) 2,547
EARNINGS PER
SHARE:
INCOME (LOSS) FROM
CONTINUING OPERATIONS:
BASIC
($1.05 ) $ 1.15 ($0.02 ) $ 0.06
DILUTED
($1.05 ) $ 1.13 ($0.02 ) $ 0.06
NET INCOME (LOSS)
ATTRIBUTABLE TO ORBOTECH LTD.:
BASIC
($1.05 ) $ 1.19 ($0.02 ) $ 0.06
DILUTED
($1.05 ) $ 1.16 ($0.02 ) $ 0.06
WEIGHTED AVERAGE
NUMBER OF SHARES USED IN COMPUTATION OF EARNINGS PER
SHARE - IN THOUSANDS:
BASIC
43,501 39,909 43,537 43,261
DILUTED
43,501 40,816 43,537 43,966
ORBOTECH LTD. CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS FOR THE YEAR AND THREE MONTHS ENDED
DECEMBER 31, 2012
12 months ended
3 months ended
December 31
December 31
2 0 1 2 2 0 1 1 2 0 1 2 2 0 1 1 U.S.
dollars in thousands
CASH FLOWS FROM
OPERATING ACTIVITIES:
Net income (loss) (46,537 ) 47,017 (846 ) 2,200
Adjustment to reconcile net income to net
cash provided by operating activities:
Income from discontinued operations (1,363 ) Depreciation and
amortization 17,964 19,958 3,240 4,885 Impairment of Intangible
assets 30,142
162
Compensation relating to equity awards
granted to employees and others
3,070 3,728 784 813
Decrease in liability for employee rights
upon retirement
(576 ) (704 ) (1,296 ) (650 ) Deferred income taxes (5,440 ) 2,584
(1,770 ) 249 Non-cash expenses in respect of restructuring 601
Loss from sales and write down of marketable securities 395
Amortization of premium and accretion of
discount on marketable Securities, net
588 151 Other, including capital loss (gain) 1,455 1,224 315 155
Decrease (increase) in accounts receivable: Trade 31,734 (42,714 )
14,936 771 Other (2,743 ) 2,698 (883 ) 1,577 Increase (decrease) in
accounts payable and accruals: Trade (4,770 ) 5,822 (7,147 ) (7,449
) Deferred income and other (14,484 ) 6,105 676 352
Decrease in inventories
11,925 6,870 4,351 14,986 Net cash
provided by operating activities - continuing operations 22,929
51,620 12,673 17,889 Net cash used in operating activities -
discontinued operations (787 ) (47 )
Net cash
provided by operating activities 22,929
50,833 12,673 17,842
CASH FLOWS FROM
INVESTING ACTIVITIES:
Purchase of property, plant and equipment (9,611 ) (7,554 )
(3,053 ) (2,366 ) Withdraw (placement) of bank deposits 142,278
(142,325 ) 26,694 (15,025 ) Redemption (purchase) of marketable
securities (15,614 ) 1,967 (242 ) Other investment (2,810 ) (500 )
Proceeds from disposal of property, plant and equipment 3,036 35
3,038
Decrease (increase) in funds in respect of
employee rights upon retirement
(254 ) 331 (64 ) 344 Net cash provided by (used in)
investing activities - continuing operations 119,835 (150,356 )
26,373 (17,547 ) Net cash provided by investing activities -
discontinued operations 9,155
Net
cash provided by (used in) investing activities 119,835
(141,201 ) 26,373 (17,547
)
CASH FLOWS FROM
FINANCING ACTIVITIES:
Repayment of long-term bank loan (32,000 ) (32,000 ) (8,000
) (8,000 ) Employee stock options exercised 719 2,063 57 414
Issuance of shares, net 90,683 Acquisition of treasury shares
(1,959 ) (1,959 )
Net cash provided by (used in)
financing activities (33,240 ) 60,746
(9,902 ) (7,586 ) NET
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 109,524
(29,622 ) 29,144 (7,291 )
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 151,237
180,859 231,617 158,528
CASH AND
CASH EQUIVALENTS AT END OF PERIOD 260,761
151,237 260,761 151,237
ORBOTECH LTD. RECONCILIATION OF GAAP TO NON-GAAP
RESULTS FROM CONTINUING OPERATIONS FOR THE YEAR AND THREE
MONTHS ENDED DECEMBER 31, 2012
12 months ended
3 months ended
December 3 1 December 3 1 2 0 1 2 2 0 1 1 2 0 1 2 2 0 1 1
U.S. dollars in thousands (except per share data)
Reported operating
income (loss) on GAAP basis
(40,816 ) 60,061 (708 ) 4,970
Equity based compensation expenses 3,070 3,728 784 813
Restructuring charges, net of tax credit 4,593 2,675 Impairment of
Intangible assets 30,142 162 Amortization of intangible assets
9,907 12,304 991
3,091 Non-GAAP operating income 6,896 76,093
3,904 8,874
Reported net income
(loss) attributable to Orbotech Ltd. on GAAP basis
(45,579 ) 47,339 (734 ) 2,547
Equity based compensation expenses 3,070 3,728 784 813
Amortization of intangible assets 9,907 12,304 991 3,091 Income
from discontinued operations (1,363 ) Restructuring charges, net of
tax credit 4,593 2,675 Impairment of Intangible assets 30,142 162
Share in losses of associated company 165 179 50 70
Non-GAAP net income
from continuing operations
2,298 62,187 3,928
6,521 Non-GAAP earnings per diluted share $ 0.05 $
1.52 $ 0.09 $ 0.15 Shares used in earnings per
diluted share calculation-in thousands 44,071
40,816 44,107 43,966
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