Automated optical inspection technology developer Orbotech Ltd. (Nasdaq: ORBK) reported third quarter financial results that beat its guidance. CEO Rani Cohen said, “Business conditions are generally continuing to improve and the industries that we serve are beginning to revert to ‘investment mode’."
The company reported third quarter revenue of $92.3 million, higher than the $85 million it had guided toward when it issued its previous quarter results. Analysts had expected closer to $80 million for the quarter.
Net profit, on a non-GAAP (generally accepted accounting principles) basis, was $1.1 million ($0.03 per share), compared with net profit of $800,000 ($0.02 per share) in the corresponding quarter of 2008.
Sales of equipment to the printed circuit board (PCB) industry were $20.3 million in the third quarter, compared to $31.6 million in the third quarter of 2008. Sales of equipment to the flat panel display (FPD) industry were $37.6 million, lower than the $41.4 million recorded in the second quarter, but higher than the $31.7 million in the third quarter of last year.
Orbotech said that FPD fabrication facilities have recently been running at close to full capacity utilization. The company said that growth in this industry is being driven by higher demand from China and emerging economies, and it expects that this will lead to greater capital expenditure in the FPD industry during the latter part of 2010, and continuing into 2011.
Orbotech deputy CEO Amichai Steinberg said, "The company's customers Samsung, Sharp, LG, and others - announced investment plans that add up to a combined $20 billion over the next three years. According to our estimates, the carrying out of these investment plans will be realized at the end of 2010."
Sales of character recognition products were $2.4 million in the third quarter, and sales of medical imaging equipment were $4.1 million.
In October, 2008, Orbotech bought Photon Dynamics, Inc. (PDI), but the financial data, including revenue data, presented for the third quarter of 2008 does not include results related to its business.
The company expects revenue of $95-100 million in the fourth quarter. Referring to the Photon acquisition, Steinberg said, "One year after the merger, we can say that the integration process ended in success. Today we have a strong product portfolio, both in PCBs and in FPDs.
Shares in Orbotech rose about 1.3% on Monday, closing at $9.42. The share rose another 1.3% in after hours trading.
Published by Globes [online], Israel business news - www.globes-online.com - on November 2, 2009
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