ORBOTECH LTD. has announced its consolidated financial results for the first quarter ended March 31, 2014. Revenues for the first quarter of 2014 totaled $104.8 million, compared to $122.2 million in the fourth quarter, and $95.5 million in the first quarter, of 2013. GAAP net income for the first quarter of 2014 was $6.3 million, or $0.15 per share (diluted), compared to GAAP net income of $12.6 million, or $0.30 per share (diluted), in the fourth quarter of 2013 and GAAP net income of $5.0 million, or $0.11 per share (diluted), in the first quarter of 2013.
Commenting on the results, Asher Levy, CEO, said, “We are pleased to report a good opening to 2014. While the PCB industry experienced a low level of production utilization in certain segments during the first quarter, our FPD business experienced a very strong quarter, with over $65 million in new bookings for our recently introduced products, expected to be delivered mainly in late 2014 and early 2015. This was driven, in turn, by large planned investments in China for anticipated demand for small to midsize electronic devices and a consumer trend towards larger LCD television screens. We expect this FPD booking trend to continue into the second quarter. During the quarter, we also recorded initial revenues from our plasma-enhanced chemical vapor deposition (PECVD) tool for the recovering solar energy industry, which we believe continues to offer a significant opportunity for Orbotech."
Levy added, “In terms of the company’s capital allocation, during the quarter we announced, and commenced, a new share repurchase program in the amount of $30 million. At the same time, we are continuing to pursue additional opportunities within the electronic component manufacturing and other adjacent industries.”
Non-GAAP net income for the first quarter of 2014 was $8.2 million, or $0.19 per share (diluted), compared to non-GAAP net income of $6.8 million, or $0.16 per share (diluted), in the first quarter of 2013. 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 industry were $41.5 million in the first quarter of 2014, compared to $45.3 million in the fourth quarter, and $47.4 million in the first quarter, of 2013; and sales of equipment to the flat panel display industry were $23.1 million in the first quarter of 2014, compared to $37.2 million in the fourth quarter, and $13.2 million in the first quarter, of 2013. In the company’s Recognition Software segment, sales were $1.4 million in the first quarter of 2014, compared to $1.7 million in the fourth quarter, and $1.8 million in the first quarter, of 2013; and the company also recorded initial revenues of $1.8 million in the first quarter of 2014 in its Solar Energy segment.
In addition, service revenue for the first quarter of 2014 was $37.0 million, compared to $38.0 million in the fourth quarter, and $33.1 million in the first quarter, of 2013.
The company completed the first quarter of 2014 with cash, cash equivalents, short-term bank deposits and marketable securities of approximately $211.6 million.
To date, the company has repurchased approximately 520,000 of its Ordinary Shares, at a cost of approximately $7.7 million, under the new share repurchase program approved by the Board of Directors and announced and commenced in the first quarter of 2014. Pursuant to this program, the company will continue to repurchase shares up to the approved total of $30 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. To date, under the current repurchase program and the repurchase program approved in November 2012, the company has repurchased an aggregate amount of approximately 2,960,000 of its Ordinary Shares, at a total cost of approximately $35.5 million.
The Company continues to remain focused on enhancing long-term shareholder value.
