Orbotech (ORBK) Revises FY12 Revs Outlook Lower; Cites PFD Industry Weakness
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Orbotech (Nasdaq: ORBK) is revising previously provided revenue guidance to cover a range of possible revenue outcomes. For the full year 2012, revenue guidance is revised to the range of $430 - 450 million from $500 million; however, the Company still expects to meet the previously announced first half revenue guidance of approximately $200 million.
The Street was looking for revs of $494.06 million.
The current low level of capital spending in the flat panel display (“FPD”) industry is expected to continue through 2012 and into the first half of 2013, as LCD manufacturers delay scheduled ‘move in’ dates for their new fabrication facilities to 2013. Lead times for delivery of the Company’s FPD products have become shorter, which has decreased the visibility into the Company’s expected business. At the same time, the level of activity in the printed circuit board (“PCB”) industry has, and is expected, to remain consistent with 2011 levels throughout 2012.
The Company has recorded legal and other expenses in connection with the previously announced investigation in Korea in the second quarter and expects to record additional expenses in the second half of the year. As a result of this and the revised revenue expectations discussed above, the Company is withdrawing all of its previously announced 2012 earnings per share guidance, which should no longer be relied upon.
Separately, the Company today announced that it has received notification of charges filed by government officials in the Seoul Central District Court of the Republic of Korea related to the alleged acquisition and misuse of confidential customer information. The Company’s Korean subsidiary and six local employees have been indicted and the investigation into the actions of employees of the Company and its subsidiaries outside of Korea is ongoing. The Company’s Korean subsidiary continues to co-operate with the Korean authorities in this matter. The Company is disappointed by the groundless allegations made by the prosecutor and intends to defend itself and its employees vigorously. Orbotech denies any criminal intent and it has confidence in the Korean judicial system and that the applicable facts and defenses will be given full and fair consideration.
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The Street was looking for revs of $494.06 million.
The current low level of capital spending in the flat panel display (“FPD”) industry is expected to continue through 2012 and into the first half of 2013, as LCD manufacturers delay scheduled ‘move in’ dates for their new fabrication facilities to 2013. Lead times for delivery of the Company’s FPD products have become shorter, which has decreased the visibility into the Company’s expected business. At the same time, the level of activity in the printed circuit board (“PCB”) industry has, and is expected, to remain consistent with 2011 levels throughout 2012.
The Company has recorded legal and other expenses in connection with the previously announced investigation in Korea in the second quarter and expects to record additional expenses in the second half of the year. As a result of this and the revised revenue expectations discussed above, the Company is withdrawing all of its previously announced 2012 earnings per share guidance, which should no longer be relied upon.
Separately, the Company today announced that it has received notification of charges filed by government officials in the Seoul Central District Court of the Republic of Korea related to the alleged acquisition and misuse of confidential customer information. The Company’s Korean subsidiary and six local employees have been indicted and the investigation into the actions of employees of the Company and its subsidiaries outside of Korea is ongoing. The Company’s Korean subsidiary continues to co-operate with the Korean authorities in this matter. The Company is disappointed by the groundless allegations made by the prosecutor and intends to defend itself and its employees vigorously. Orbotech denies any criminal intent and it has confidence in the Korean judicial system and that the applicable facts and defenses will be given full and fair consideration.
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