Weak quarter for Orbotech: 5.8% drop in profit

3 May, 2017

Total sales reached $187.6 million. Orbotech expects stronger than usual Q2 results. Among the 2017 growth engines it mentions the ongoing growth of the Chinese Flat Panel Display Industry

Orbotech from Yavne, Israel, reported today revenues of $187.6 million in the fist quarter of 2017. It is about a $3 million down compared to $190.4 million in the first quarter of 2017, and far more than the $215.0 million in the fourth quarter of 2016. GAAP net income in the first quarter of 2017 was $14.9 million, down 5.8% fron the $15.8 million in the first quarter of 2016. For the second quarter of the year Orbotech forecast revenues in the range of $200-$210 million – better than $196 million in q2 2016.

2017 should pose growth

Asher Levy, Chief Executive Officer of Orbotech, said the results for the first quarter of 2017 reflect a solid start to the year, “and are marked by particularly strong execution in our PCB division.   We anticipate that our 2017 results will be more backend loaded than previous years, and we expect to post revenue growth and ongoing profitability improvement during the year.” He mentioned growth opportunities in advanced smartphones, automotive applications and flex OLED screens.

In the Company’s Production Solutions for Electronics Industry segment: Revenues from semiconductor device business were $52.5 million, compares to $72.5 million in the first quarter of 2016. Revenues from the Printed Circuit Board business were $77.5 million, compares to $68.0 million last year. Revenues from the Flat Panel Display business were $53.4 million, compares to $44.7 million in the first quarter of 2016. The Company had cash, cash equivalents and marketable securities of $222.3 million, and debt of $88.5 million. During the first quarter of 2017, the Company utilized cash from operations of $9.2 million.

Orbotech grows with china

Asher Levy noted one more growth engine: “Plans for additional panel fabrication capacity by Chinese FPD manufacturers.” According to a new report made by ResearchInChina, the Chinese automated optical inspection (AOI) equipment market reached $1.28 billion in 2016, an 18.4% rise over the previous year and 20.1% of global AOI market, and is expected to present a CAGR of 9.6% during 2016-2021. Chinese AOI equipment market remains dominated by foreign players represented mainly by Orbotech (Israel), Screen (Japan), and Koh Young Technology (South Korea)

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