YAVNE, Israel, Feb. 14, 2018 /PRNewswire/ -- Orbotech
Ltd., (NASDAQ: ORBK) a leading global supplier of
yield-enhancing and process-enabling solutions for the manufacture
of electronics products, announced today that LG Display, a leading
innovator of display technologies, has ordered multiple Quantum™
AOI (automated optical inspection) for Flex solutions for its new
flexible OLED Gen 6 fab in Paju, South
Korea, which is intended for flexible mobile device display
production. Delivery of Orbotech's solutions is expected to be
split between the first quarter and the second quarter of 2018.
The production process required for flexible OLED panels is more
sophisticated and complex than the traditional LCD manufacturing
process due to its reduced layer thickness and increased number of
stages. Based on Orbotech's patented multi-modality imaging (MMI)
technology, the Quantum™ AOI for Flex series is a comprehensive
yield enhancement solution for high quality inspection, detection,
classification and 3D measurement of critical defects that impact
the quality and the lifetime of the final flexible OLED
display.
"This repeat order from LG Display is testament to the high
quality of Orbotech's advanced solutions," stated Mr. Edu Meytal,
President of Orbotech Pacific Display. "Orbotech's end-to-end
advanced AOI display solutions are designed specifically to address
the unique challenges posed by flexible OLED panel production and
will enable our customers to produce the most advanced FPD products
with high yields."
About Orbotech's AOI for Flex
Series
Orbotech's Quantum™ AOI for Flex offers display
manufacturers cutting-edge automated inspection solutions for all
types of advanced display technologies, including flexible OLED.
Orbotech's display AOI solutions offers full coverage of both Micro
and Macro inspection, layer thickness, defect height measurement,
and accurate location of defects within a stack of TFE (thin-film
encapsulation) layers. The system can be operated in N2
environment.
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, visit www.orbotech.com.
Israeli Tax Matters, Audit Committee Review and Cautionary
Statement Regarding Forward-Looking Statements
As previously
reported, 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 accumulated net operating losses for tax purposes
("NOL"s) available through the end of 2014, of approximately
NIS 207 million (currently
approximately $59 million), which
amount includes related interest and linkage differentials to the
Israeli consumer price index (as of date of the Assessment).
All amounts related to the Assessment are given after application
of the Company's NOLs. Approximately 80% of the amount of the
Assessment, assuming that all NOLs are set off against the other
matters included in the Assessment, relates to the following two
matters: (i) the use of tax exempt income derived from the
Company's approved and benefited enterprises under the Law for the
Encouragement of Capital Investment, 1959, in particular in its
investments in, or acquisitions of, foreign subsidiaries; and (ii)
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 has not, as of
December 31, 2017, established, 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 with respect to certain
intercompany transactions in the Far East. As of December 31, 2017, the Company's tax provisions
with respect to the tax audit period cover a majority of the
remaining 20% of the Assessment. In light of the Assessment
and the ongoing criminal investigation in Israel, the Audit Committee of the Board of
Directors of the Company (the "Audit Committee"), with the
assistance of outside advisors, reviewed the Company's tax returns
in Israel for certain periods
since fiscal year 2009. The Audit Committee did not identify
any fraudulent or criminal activity in the course of its
review. In addition, the Audit Committee and its outside
advisors had the full cooperation of management and the Audit
Committee did not identify any 'tone at the top' issues or any
significant issues in the Company's control environment.
The evaluation of tax positions involves significant
judgment. If the Company's judgment with respect to its tax
positions proves to be inaccurate, it may be required to increase
its provisions or take a charge in future periods. The amount
of the increase and/or the charge against earnings could be
material. There is an ongoing criminal investigation in
Israel against the Company,
certain of its employees and its tax consultant related to tax
positions taken by the Company in the tax audit period as well as
in prior periods. 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 Israeli
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 fiscal years 2012-2014 and prior
fiscal years, or any additional taxes, penalties, criminal
sanctions, indictments, fines and other amounts 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.
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, the risk that the Company may not achieve its revenue
and margin expectations within and for 2018 (including, without
limitation, due to shifting move-in dates); cyclicality in the
industries in which the Company operates, the Company's supply
chain management and production capacity, order cancelation often
without penalty; 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 political uncertainty 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 Assessment process in
Israel and related criminal
investigation (see above), 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.
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:
|
|
Rami
Rozen
|
Tally Kaplan
Porat
|
Director of Investor
Relations
|
Director of Corporate
Marketing
|
Tel:
+972-8-942-3582
|
Tel:
+972-8-942-3603
|
Investor.relations@orbotech.com
|
Tally-Ka@orbotech.com
|
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SOURCE Orbotech Ltd.