Orbotech Announces $24M Order from Flat Panel Display Manufacturer CHOT

YAVNE, Israel, May 30, 2017 /PRNewswire/ -- Orbotech Ltd., a leading global supplier of yield-enhancing and process-enabling solutions for the manufacture of electronics products, today announced a $24 million order with Xianyang CaiHong Optoelectronics Technology Co. Ltd., ("CHOT"), a Chinese flat panel display manufacturer and part of the China Electronics Corporation (CEC). The Orbotech solutions ordered are for phase I of CHOT's new Gen 8.6 fab in Xianyang, China, and are designed to support the manufacture of a monthly capacity of 60,000 panels. The solutions chosen include multiple Automated Optical Inspection (AOI), Array Testing and Array Repair systems for use in the production of LCD TV displays.

"As the demand for LCD televisions grows, Orbotech continues to deliver advanced solutions that improve manufacturing process efficiencies and support the industry's increasingly complex technologies," stated Mr. Edu Meytal, President of Orbotech Pacific Display. "We are honored to have been chosen by CHOT and believe that our solutions, based on our proven experience and advanced technology, will help them to rise to the forefront of the world's display technology leaders."

Orbotech's bookings for its FPD products are anticipated to reach, by the end of Q2 2017, approximately $300 million for the trailing 12 months.

"We are very pleased with the intensified demand for our innovative display solutions, particularly over the trailing 12 months," said Gil Oron, Corporate Vice President and President of the FPD Division. "This increased demand for Orbotech's LCD and OLED solutions is testament to the advanced technology of our solutions and the close cooperation with our customers which enable us to develop accurate, reliable solutions for their current and future needs."

About FPD Automated Optical Inspection (AOI)

Orbotech's Quantum™ FPD AOI system offers display manufacturers cutting edge automated inspection solutions for all types of display technologies including Flex and OLED. Orbotech FPD AOI systems increase production yields using advanced optics for image acquisition, unique image processing technologies, algorithms and data processing capabilities, microscopic video imaging, CD/Overlay measurements and automated macro (Mura) inspection to enable high-sensitivity defect detection and extremely accurate classification.

About Orbotech ArrayChecker™

The Orbotech ArrayChecker test system determines whether individual pixels or lines of pixels are functional. It also finds more subtle process defects such as variations in individual pixel voltage. Defect data are used for repair and statistical process control to decrease material costs and improve throughput.

About Orbotech ProcessSaver

The Orbotech ProcessSaver repair systems utilize multiple wavelength laser technology to repair defects in flat panel displays during and after array fabrication. The systems can use defect data files downloaded from the ArrayChecker test systems or other test and inspection systems to automatically position the panel for repair, thereby eliminating the time spent by operators locating defects.

About CHOT(Xianyang CaiHong Optoelectronics Technology Co. Ltd.)
Xianyang CaiHong Optoelectronics Technology Co., Ltd. was established in November 13, 2015, by Xianyang Financial Holdings Limited and Xianyang Zhonghua Rainbow Group Holdings Co., Ltd., who jointly funded the formation of a limited liability company.

About Orbotech Ltd.
Orbotech Ltd. is a leading global supplier of yield-enhancing and process-enabling solutions for the manufacture of electronics products. Orbotech provides cutting-edge solutions for use in the manufacture of printed circuit boards (PCBs), flat panel displays (FPDs), and semiconductor devices, designed to enable the production of innovative, next generation electronic products and improve the cost effectiveness of existing and future electronics production processes.  Orbotech's core business lies in enabling electronic device manufacturers to inspect and understand PCBs and FPDs and to verify their quality, pattern the desired electronic circuitry on the relevant substrate and perform three dimensional shaping of metalized circuits on multiple surfaces, and utilize advanced vacuum deposition and etching processes in SD and semiconductor manufacturing.  For further information, visit http://www.orbotech.com and www.spts.com

Cautionary Statement Regarding Forward-Looking Statements

This press release contains certain statements that constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements relate to, among other things, future prospects, developments and business strategies and involve certain risks and uncertainties. The words "anticipate," "believe," "could," "will," "plan," "expect" and "would" and similar terms and phrases, including references to assumptions, have been used in this press release to identify forward-looking statements. These forward-looking statements are made based on management's expectations and beliefs concerning future events affecting Orbotech and are subject to uncertainties and factors relating to Orbotech's operations and business environment, all of which are difficult to predict and many of which are beyond the Company's control. Many factors could cause the actual results to differ materially from those projected including, without limitation, cyclicality in the industries in which the Company operates, the Company's production capacity, timing and occurrence of product acceptance (the Company defines 'bookings' and 'backlog' as purchase arrangements with customers that are based on mutually agreed terms, which, in some cases for bookings and backlog, may still be subject to completion of written documentation and may be changed or cancelled by the customer, often without penalty), fluctuations in product mix, within and among divisions, worldwide economic conditions generally, especially in the industries in which the Company operates, the timing and strength of product and service offerings by the Company and its competitors, changes in business or pricing strategies, changes in the prevailing political and regulatory framework in which the relevant parties operate, including as a result of the 'Brexit' process and administration change in the United States, or in economic or technological trends or conditions, including currency fluctuations, inflation and consumer confidence, on a global, regional or national basis, the level of consumer demand for sophisticated devices such as smartphones, tablets and other electronic devices as well as automobiles, the Company's global operations and its ability to comply with varying legal, regulatory, exchange, tax and customs regimes, the timing and outcome of tax audits, including with respect to the Company's challenge to the assessment received as part of the ongoing audit of tax years 2012-2014 in Israel and the associated criminal investigation by the Israeli tax authority which may result in amounts payable in addition to the assessed amount, the harm to the Company's reputation from the criminal investigation, any potential related civil litigation and any adverse impact on its business and opportunities from any of the foregoing, the Company's ability to achieve strategic initiatives, including related to its acquisition strategy, the Company's debt and corporate financing activities; the final timing and outcome, and impact of the criminal matter and ongoing investigation in Korea, including any impact on existing or future business opportunities in Korea and elsewhere, any civil actions related to the Korean matter brought by third parties, including the Company's customers, which may result in monetary judgments or settlements, expenses associated with the Korean matter, and ongoing or increased hostilities in Israel and the surrounding areas. The Company is subject to the foregoing and other risks detailed in the Company's SEC reports, including the Company's Annual Report on Form 20-F for the year ended December 31, 2016, and subsequent SEC filings. The Company assumes no obligation to update the information in this press release to reflect new information, future events or otherwise, except as required by law.  The information on the Company's websites is not incorporated by reference herein.

ORBOTECH COMPANY CONTACTS:
Rami Rozen
Director of Investor Relations
Tel: +972-8-942-3582
Investor.relations@orbotech.com      

Tally Kaplan Porat
Director of Corporate Marketing
Tel: +972-8-942-3603
Tally-Ka@orbotech.com

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SOURCE Orbotech Ltd.