Orbotech Ltd. (Nasdaq: ORBK) today published one of its last quarterly financial reports as an independent company before its acquisition by KLA Tencor is completed this year. Orbotech outperformed the analysts' forecasts for the first quarter, while its guidance for the second quarter was about the same as the market's forecasts. Orbotech also reported receiving orders totaling $50 million for its production solutions for advanced smartphone electronics.
Orbotech, managed by CEO Asher Levy, provides technologies for use in advanced electronics production processes. The company has three primary markets: flat panel displays (FPDs), printed circuit boards (PCBs) and semiconductor devices (SDs). KLA Tencor acquired Orbotech in a deal worth $3.4 billion on day it was reported, at a price of $69.02 per Orbotech share. The deal includes a share component; due to the decline in KLA Tencor's share price since the deal was announced, Orbotech's share price has dropped 5% to $65.54 (it will be finally set on the day the deal is completed), reflecting a $3.2 billion market cap.
Orbotech's revenue totaled $251 million in the first quarter, 33.5% more than in the first quarter of 2017. Revenue rose for all of Orbotech's production lines, with PCB revenue up 12.4% to $87.1 million, FPD revenue up 50.7% to $80.5 million, SD revenue up 49.7% to $78.6 million, and revenue from customer service up 15.1% to $58.6 million.
Net profit according to GAAP accounting standards more than doubled to $30.3 million, and non-GAAP (net profit (excluding some accounting items) soared 84.4% to $41.1 million. Orbotech recognized $2.5 million in expenses in respect of the merger with KLA Tencor. Net profit per share was $0.83, $0.08 more than the analysts' forecasts.
EBITDA was up 63.2% to $53.1 million in the quarter. Cash flow from activity was minus $20.4 million, and the company had $302 million in cash at the end of the first quarter.
The company provided revenue guidance of $250-265 million for the second quarter, 18.5-25.6% more than in the first quarter of 2017, while the analysts predicted $257 million.
Published by Globes [online], Israel business news - www.globes-online.com - on May 8, 2018
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