Orbotech Wins $40M Orders from China's CEC Panda for New Gen 8.6 LCD Fab

YAVNE, Israel, August 08, 2017 /PRNewswire/ -- Orbotech Ltd.,(Nasdaq: ORBK) , a leading global supplier of yield-enhancing and process-enabling solutions for the manufacture of electronics products, announced today that it has received orders totaling approximately $40 million from TFT LCD panel maker, CEC Panda LCD Technology Co., Ltd. (a China Electronics Corp. company) for phase one of CEC Panda's new Gen 8.6 fab in Chengdu, China. The orders are for a range of Orbotech's industry-leading flat panel display (FPD) inspection, testing and repair solutions, including Orbotech Quantum™, Orbotech ArrayChecker™ and Orbotech ProcessSaver™, with deliveries expected to begin during the third quarter of 2017. CEC Panda has indicated that it expects to reach a maximum capacity of 60,000 glasses per month in phase one of mass production.

"Our high-performance inspection, testing and repair solutions were first selected by CEC Panda when they were ramping up production about three years ago," commented Mr. Edu Meytal, President of Orbotech Pacific Display. "We are very excited to partner once again with CEC Panda to provide this significant support for its new Gen 8.6 fab."

About Orbotech's Quantum™ FPD 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 is an advanced repair solution that locates and repairs metal defects and for re-patterning p-Si and photo resist in the high-volume fabrication of flat panel displays (FPDs). Orbotech repair solution provides advanced laser scanning technology combined with automatic repair features and high throughput.

About CEC Panda
Based in Nanjing, China, Nanjing CEC Panda LCD Technology Co., Ltd. is a subsidiary of China Electronics Corporation (CEC), the largest state-owned IT enterprise in China. CEC-Panda is engaged in research and development, manufacture and sales of telecommunications equipment, computers and electronic equipment, as well as provision of technical services. The company possesses solid research and development capabilities and owns three state-level engineering technology development centers.

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 (SDs), 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 ('reading'); pattern the desired electronic circuitry on the relevant substrate and perform three-dimensional shaping of metalized circuits on multiple surfaces ('writing'); and utilize advanced vacuum deposition and etching processes in SD and semiconductor manufacturing ('connecting'). Orbotech refers to this 'reading', 'writing' and 'connecting' as enabling the 'Language of Electronics'. For more information, visit www.orbotech.com and www.spts.com.

Cautionary Statement Regarding Forward-Looking Statements

Except for historical information, the matters discussed in this press release are 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 the ongoing audit of tax years 2012-2014 in Israel (see below), 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.  In addition, in May 2017 the Company received a $58 million assessment from the Israel Tax Authority with respect to the ongoing tax audit in Israel.  The Company believes that it has provided adequately for any reasonably foreseeable outcomes related to the tax audit; however, future results may include unfavorable material adjustments to estimated tax liabilities in the period when the assessment is resolved or the audit is closed.  In addition, the Israel Tax Authority is investigating the Company's tax positions.  Given that the process is in its preliminary stages, the Company cannot assure the outcome or timing of completion of the assessment process or investigation, including the amount of tax ultimately payable, and additional penalties, criminal sanctions, fines and other amounts that may be imposed as a result of the assessment and investigation, which may be material in amount or in adverse impact on the Company's results of operations, financial position and reputation.  The outcome may also impact the Company's results of operations as a result of tax positions taken for subsequent fiscal years.  Furthermore, during the second quarter of 2017, the Company elected to implement certain provisions of the Israeli Law for the Encouragement of Capital Investments related to preferred enterprises in Israel.  Although the Company is unable to predict the precise impact of this tax election, it believes the tax election will be beneficial over the long term and it does not expect that the tax election will result in a material increase in its effective tax rate for 2017.  The foregoing information should be read in connection with the Company's Annual Report on Form 20-F for the year ended December 31, 2016, and subsequent SEC filings.  The Company is subject to the foregoing and other risks detailed in those reports.  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.

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.