YAVNE, Israel, December 5, 2017 /PRNewswire/ -- Orbotech
Ltd., (NASDAQ: ORBK) a leading global supplier of yield-enhancing
and process-enabling solutions for the manufacture of electronics
products, today announced a multi-million dollar order from
Taipei-based Career Technology
(Mfg.) Co., Ltd. a worldwide manufacturer of flexible printed
circuit (FPC) PCBs for advanced electronic devices, for Orbotech's
industry-leading Nuvogo™ for Patterning DI and Orbotech Diamond™ 8
for Solder Mask DI solutions. The solutions, which will be deployed
in Career's fabs in Taipei, Taiwan
and Kunshan, China, will be used
for flexible PCB manufacturing for next-generation smartphones.
Flexible PCBs are commonly used in smartphones to enable highly
versatile interconnects which facilitate smaller, lighter and more
functional devices.
"Orbotech was our obvious choice for this most recent expansion
of our DI capabilities as it continues to lead by its development
of innovative PCB manufacturing processes," said Mr. Rick Wu, President of Career Technology. "We
look forward to further collaboration in the future as Career
continues to grow its advanced high quality, high yield, flexible
PCB production capabilities."
"We are honored to be repeatedly selected by Career - with whom
we have enjoyed a long-term business relationship - as a partner of
choice," said Mr. Hadar Himmelman,
President of Orbotech Pacific. "Orbotech's solutions are critical
tools in advanced PCB manufacturing processes as the requirements
for advanced smartphone production become increasingly demanding,
functionality grows and form factors shrink."
About Nuvogo™
Nuvogo™ is Orbotech's industry-leading Direct Imaging (DI)
series of solutions. Utilizing a high-power laser and unique
MultiWave Laser Technology™, the Nuvogo provides maximum
flexibility on a wide range of materials and applications,
including flex, rigid-flex, HDI and advanced HDI. Incorporating
Orbotech's field-proven Large Scan Optics (LSO) Technology™ with
its high depth-of-focus, the Nuvogo is a perfect match for flex
patterning and solder mask applications that demand fine structures
on variating topography. This powerful solution is designed for
high throughput while enabling superior quality.
About Orbotech Diamond™ 8
Orbotech Diamond™ 8 is Orbotech's highly accurate
high-throughput mass production DI solution for Solder Mask.
Powered by Orbotech SolderFast Technology™, Orbotech Diamond 8 is
particularly suited for very complex designs, improving throughput,
yield and productivity. Orbotech SolderFast™ technology employs a
wide UV spectrum to ensure high throughput and superior quality on
a variety of solder resists. Patented optics and high energy
illumination enable wide DoF (depth of focus), ensuring consistent,
precise imaging quality to overcome the most challenging surface
topography variations as well as any distortions or
abnormalities.
About Career Technology Ltd.
Career Technology (Mfg.) Co., Ltd. is a Taiwan firm principally engaged in the design,
research, development, manufacture and distribution of flexible
printed circuits (FPCs) boards. The company has market cap of
$9.32 billion. The Company's primary
products include single-sided FPCs, double-sided FPCs and
multilayer FPCs boards. It has a 137.27 P/E ratio. The Company's
products are mainly used in the manufacture of smart phones,
notebook computers, mobile phones, flat panel displays and computer
peripheral products, among others. www.careergroups.com
About Orbotech Ltd.
Orbotech Ltd. is a leading global
supplier of yield-enhancing and process-enabling solutions for the
manufacture of electronics products. Orbotech provides cutting-edge
solutions for use in the manufacture of printed circuit boards
(PCBs), flat panel displays (FPDs), and semiconductor devices
(SDs), designed to enable the production of innovative,
next-generation electronic products and improve the cost
effectiveness of existing and future electronics production
processes. Orbotech's core business lies in enabling electronic
device manufacturers to inspect and understand PCBs and FPDs and to
verify their quality ('reading'); pattern the desired electronic
circuitry on the relevant substrate and perform three-dimensional
shaping of metalized circuits on multiple surfaces ('writing'); and
utilize advanced vacuum deposition and etching processes in SD and
semiconductor manufacturing ('connecting'). Orbotech refers to this
'reading', 'writing' and 'connecting' as enabling the 'Language of
Electronics'. For more information, please
visit www.orbotech.com and www.spts.com
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
Orbotech's 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, cyclicality in the industries in which the Company
operates, the Company's production capacity, timing and occurrence
of product acceptance (the Company defines 'bookings' and 'backlog'
as purchase arrangements with customers that are based on mutually
agreed terms, which, in some cases for bookings and backlog, may
still be subject to completion of written documentation and may be
changed or cancelled by the customer, often without penalty),
fluctuations in product mix, within and among divisions, 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,
including as a result of the 'Brexit' process and administration
change in the United States, 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 as well as automobiles, the Company's global
operations and its ability to comply with varying legal,
regulatory, exchange, tax and customs regimes, the timing and
outcome of tax audits, including the ongoing audit of tax years
2012-2014 in Israel and related
criminal investigation (see below), the Company's ability to
achieve strategic initiatives, including related to its acquisition
strategy, the Company's debt and corporate financing activities;
the final timing and outcome, and impact of the 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, and ongoing or increased hostilities in Israel and the surrounding areas.
In May 2017, the Company received
a best judgment tax assessment from the Israel Tax Authority (the
"ITA") with respect to an audit of the Company for the fiscal years
2012-2014 (the "Assessment"), for an aggregate amount of tax
against the Company, after offsetting all operating losses for tax
purposes available through the end of 2014, of approximately
NIS 207 million (currently
approximately U.S. $58 million) which
amount includes related interest and linkage differentials (as of
date of the Assessment). All amounts related to the
Assessment are given after application of the Company's accumulated
losses. Approximately 80% of the amount of the Assessment,
assuming that all accumulated losses are set off against the other
matters included in the Assessment, relates to the following two
matters: (1) the use of tax exempt profits derived from the
Company's approved and benefitting enterprises under the Law for
the Encouragement of Capital Investment, 1959, in particular in its
investments in, or acquisitions of, foreign subsidiaries; and (2)
the purchase of shares of the Company by its foreign subsidiaries
during the audit period. The Company has not taken any
reserves or provisions related to these two matters because it
reasonably believes its positions are more likely than not correct
as a legal matter. The Company intends vigorously to contest
the ITA's position on both of these matters and does not anticipate
establishing a provision related to these matters. The other
significant item in the Assessment relates to the Company's
transfer pricing. As of September 30,
2017, the Company's tax provisions with respect to the audit
period cover at least a majority of the remaining 20% of the
Assessment. However, because of the ongoing criminal
investigation against the Company, certain of its employees and its
tax consultant related to tax positions taken by the Company in the
audit period as well as in prior periods, the Company has not
conducted a comprehensive independent review of the work of its
employees and tax consultant involved in evaluating and
establishing its tax positions, including with respect to this and
certain other matters that are the subject of the Assessment.
The Company expects to begin this review process in connection with
the preparation of its annual financial statements and annual
report, however it cannot assure investors of the timing or outcome
of such review.
If the Company's evaluation of its tax positions proves to be
inaccurate, it may be required to increase its provisions or take a
charge in future periods. The outcome of its review may also
impact the Company's results of operations as a result of tax
positions taken for subsequent fiscal years. The amount of
the increase and/or the charge against earnings could be material
with respect to the audit period and subsequent periods. In
addition, the Company does not have any insight into the scope or
time period of the criminal investigation or the timing of any
prosecutorial action related to the investigation which may occur
in the coming days, weeks, months or years. Although the
Company cannot predict the timing of any prosecutorial action, the
Company expects to be summoned to the prosecutor's office for a
hearing, at which it will have the opportunity to present its
positions, prior to any indictments of the Company and/or certain
of its employees and/or payment of monetary amounts in lieu of such
indictments. The Company has not conducted its own
investigation into any matters that may be the subject of such
investigation and will only do so once the criminal investigation
has been completed. The Company intends vigorously to contest
the Assessment in accordance with Israeli law as well as defend
itself and its employees in the criminal matter, but it cannot
assure investors as to the outcome or timing of completion of
either process, including the amount of tax ultimately payable
related to 2012-2014 and prior fiscal years, or any additional
taxes, penalties, criminal sanctions, indictments, fines and other
amounts or that may be imposed as a result of the Assessment and
criminal investigation, which may be material in amount or in
adverse impact on the Company's results of operations, financial
position and reputation.
The foregoing information should be read in connection with the
Company's Annual Report on Form 20-F for the year ended
December 31, 2016, and subsequent SEC
filings. The Company is subject to the foregoing and other
risks detailed in those reports. 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 COMPANY
CONTACTS:
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Rami Rozen
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Tally Kaplan
Porat
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Director of Investor
Relations
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Director of Corporate
Marketing
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Tel:
+972-8-942-3582 Investor.relations@orbotech.com
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Tel:
+972-8-942-3603 Tally-Ka@orbotech.com
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SOURCE Orbotech Ltd.