Orbotech (ORBK) Cuts FY12 Outlook; Cites PCB Sales Weakness
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Orbotech Ltd (Nasdaq: ORBK) announced that it is further revising its revenue guidance for 2012 in light of the current economic environment and its effects on the Company’s business. The Company expects that revenues levels in the third quarter of 2012 will be approximately $98 million, and for the full year 2012 will be approximately $400 million, revised from the previously announced range of $430 - 450 million.
The Street sees Q3 revs of $117.9 million and FY12 revs of $455.2 million.
Despite strong sales activity during the month of July, third quarter revenues from sales of equipment to the printed circuit board “(PCB”) industry were significantly lower than anticipated. While PCB plant utilization levels - particularly for high-end PCB products - continue to improve, PCB customers have deferred capital expenditure decisions citing uncertainty in overall global economic conditions.
In addition, as previously disclosed, the low level of capital spending in the flat panel display (“FPD”) industry is expected to continue throughout 2012 and into the first half of 2013. Lead times for delivery of the Company’s FPD products have become shorter, which has also reduced the visibility into the Company’s expected business.
Given these changes in business conditions, the Company is adopting certain measures designed to realign its infrastructure, while at the same time continuing to invest in research and development programs to enhance future growth and improve its technological leadership, and improving its worldwide customer service and support infrastructure.
The Street sees Q3 revs of $117.9 million and FY12 revs of $455.2 million.
Despite strong sales activity during the month of July, third quarter revenues from sales of equipment to the printed circuit board “(PCB”) industry were significantly lower than anticipated. While PCB plant utilization levels - particularly for high-end PCB products - continue to improve, PCB customers have deferred capital expenditure decisions citing uncertainty in overall global economic conditions.
In addition, as previously disclosed, the low level of capital spending in the flat panel display (“FPD”) industry is expected to continue throughout 2012 and into the first half of 2013. Lead times for delivery of the Company’s FPD products have become shorter, which has also reduced the visibility into the Company’s expected business.
Given these changes in business conditions, the Company is adopting certain measures designed to realign its infrastructure, while at the same time continuing to invest in research and development programs to enhance future growth and improve its technological leadership, and improving its worldwide customer service and support infrastructure.
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