Orbotech Ltd (ORBK) has reported a 5.29 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $14.92 million, or $0.31 a share in the quarter, compared with $15.75 million, or $0.36 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $22.28 million, or $0.46 a share compared with $23.15 million or $0.53 a share, a year ago. Revenue during the quarter went down marginally by 1.46 percent to $187.65 million from $190.43 million in the previous year period. Gross margin for the quarter expanded 148 basis points over the previous year period to 46.43 percent. Total expenses were 89.53 percent of quarterly revenues, up from 87.74 percent for the same period last year. That has resulted in a contraction of 179 basis points in operating margin to 10.47 percent.
Operating income for the quarter was $19.65 million, compared with $23.35 million in the previous year period.
However, the adjusted operating income for the quarter stood at $27.76 million compared to $31.33 million in the prior year period. At the same time, adjusted operating margin contracted 165 basis points in the quarter to 14.80 percent from 16.45 percent in the last year period.
Commenting on the results, Asher Levy, chief executive officer, said: “Our 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 - mainly from new product sales. We see the current growth opportunities in our existing served industries, such as advanced smartphones, automotive applications and flex OLED screens, as well as the plans for additional panel fabrication capacity by Chinese FPD manufacturers, as being strongly supportive of our growth for the remainder of 2017. As we have previously indicated, 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.”
For the second-quarter, Orbotech projects revenue to be in the range of $200 million to $210 million.
Operating cash flow turns negative
Orbotech Ltd has spent $9.24 million cash to meet operating activities during the quarter as against cash inflow of $15.73 million in the last year period. The company has spent $6.54 million cash to meet investing activities during the quarter as against cash outgo of $0.30 million in the last year period.
Cash flow from financing activities was $0.67 million for the quarter as against cash outgo of $23.53 million in the last year period.
Cash and cash equivalents stood at $201.38 million as on Mar. 31, 2017, up 20.14 percent or $33.76 million from $167.62 million on Mar. 31, 2016.
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