ORBOTECH LTD (ORBK) has reported a 55.24 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $24.71 million, or $0.51 a share in the quarter, compared with $15.92 million, or $0.37 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $32.95 million, or $0.68 a share compared with $23.70 million or $0.55 a share, a year ago.
Revenue during the quarter grew 7.59 percent to $204.95 million from $190.50 million in the previous year period. Gross margin for the quarter expanded 162 basis points over the previous year period to 46.94 percent. Total expenses were 84.96 percent of quarterly revenues, down from 86.85 percent for the same period last year. This has led to an improvement of 189 basis points in operating margin to 15.04 percent.
Operating income for the quarter was $30.82 million, compared with $25.05 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $43.78 million compared with $37.12 million in the prior year period. At the same time, adjusted EBITDA margin improved 188 basis points in the quarter to 21.36 percent from 19.48 percent in the last year period.
Commenting on the results, Asher Levy, chief executive officer, said: “The positive business momentum we are experiencing, combined with systematic implementation of our business model, enabled the Company to post record quarterly revenues - crossing the $200 million threshold for the first time - as well as improved gross margin and adjusted EBITDA levels, achieved by leveraging our operating infrastructure. We are pleased to report record FPD division bookings of approximately $100 million during the third quarter, reflecting strong demand for our flex OLED and Gen. 10.5 solutions. Sales of new products launched during the first half of 2016, continued to ramp up in the third quarter and contributed to our growth and profitability. In significant part, these sales also reflect Orbotech’s disciplined, consistent and methodical execution on its strategy and working plans, and are the fruit of ongoing, intensive dialogue and collaboration with key customers and leading brands of electronic products, which is an important element in maintaining technological innovation.”
For the fourth-quarter, Orbotech forecasts revenue to be in the range of $805 million to $815 million. Orbotech forecasts revenue to be in the range of $805 million to $815 million for fiscal year 2016.
Operating cash flow improves
ORBOTECH LTD has generated cash of $59.29 million from operating activities during the nine month period, up 8.32 percent or $4.56 million, when compared with the last year period.
Cash flow from investing activities was $2.47 million for the nine month period, down 25.62 percent or $0.85 million, when compared with the last year period.
The company has spent $26.54 million cash to carry out financing activities during the nine month period as against cash outgo of $21.35 million in the last year period.
Cash and cash equivalents stood at $197.32 million as on Sep. 30, 2016, up 14.01 percent or $24.24 million from $173.08 million on Sep. 30, 2015.
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