Orbotech Ltd. Enters into Senior Secured Credit Agreement
Aug 7 14
On August 7, 2014, Orbotech Ltd. and its wholly owned subsidiary Orbotech, Inc. entered into a senior secured credit agreement with JPMorgan Chase Bank, N.A., as administrative agent, and a syndicate of lenders. Under the Credit Agreement, the Borrower borrowed $300.0 million aggregate principal amount of senior secured term loans on August 7, 2014. The proceeds of the Term Loans were used by the Borrower on August 7, 2014, together with approximately $100 million of cash available to the Company, directly or indirectly, (a) to pay the cash consideration in respect of the acquisition of SPTS Group Technologies Limited, a company organized under the laws of England and Wales, (b) to repay indebtedness outstanding under the Senior Facilities Agreement dated as of May 31, 2012, by and among SPTS, Barclays Bank PLC, HSBC Bank PLC and the other parties thereto, (c) to redeem outstanding notesof a subsidiary of SPTS and (d) to pay transaction costs associated with the foregoing. The Term Loans bear interest at a floating rate. The Company expects the Term Loans to have an actual interest rate of 5.00% (without giving effect to hedging) for the foreseeable future. In the future, the Company may elect a floating rate equal to, at its option, either (a) a base rate determined by reference to the high of (1) the interest rate announced from time to time by JPMorgan Chase Bank, N.A. as its prime rate, (2) the federal funds effective rate plus 1/2 of 1% and (3) a LIBO rate determined by reference to the costs of funds for U.S. dollar deposits for a one-month interest period adjusted for certain additional costs plus 1% or (b) a LIBO rate determined by reference to the costs of funds for U.S. dollar deposits for the interest period relevant to such borrowing adjusted for certain additional costs, in each case plus an applicable margin. For purpose of determining the interest rate payable on loans under the Term Loans under clauses (a) and (b) of the immediately preceding sentence, the LIBO rate will in no event be less than 1.0%. The applicable interest rate margin will be 3.0% with respect to base rate borrowings and 4.0% with respect to LIBO rate borrowings. The Term Loans will mature on August 7, 2020. The Term Loans will have limited amortization for the first three years. The Company will be required to make amortization payments in quarterly installments, commencing on December 31, 2014. The amount of the quarterly installments will be equal to $750,000 for the first 12 quarterly amortization payments. After that, the amount of the quarterly amortization payments will be $5.625 million for the next 11 quarterly amortization payments, and the balance of the principal amount will be due at final maturity. All prepayments of principal on the Term Loans will reduce the remaining amortization payments on a dollar-for-dollar basis. The Borrower will be permitted to repay outstanding Term Loans at any time without premium or penalty. Notwithstanding the foregoing, if any Term Loans are prepaid prior to the first anniversary of the funding date thereof with the proceeds of debt having an effective yield lower than the initial effective yield of the Term Loans (taking into account LIBOR floors and original issue discount), then such prepayment will be accompanied by a prepayment fee equal to 1.0% of the loans so prepaid.
Orbotech Ltd. Announces Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2014; Provides Revenue Guidance for the Third Quarter and Second Half of 2014
Aug 4 14
Orbotech Ltd. announced consolidated earnings results for the second quarter and six months ended June 30, 2014. For the six months, the company's revenues were $217.98 million compared with $204.3 million a year ago. Operating income was $18.1 million compared with $18.9 million a year ago. Income from operations before taxes on income was $18.2 million compared with $18.4 million a year ago. Net income was $14.99 million compared with $15.1 million a year ago. Net income attributable to the company was $14.9 million or $0.35 per diluted share compared with $15.5 million or $0.36 per diluted share a year ago. Net cash provided by operating activities was $9.66 million compared with $11.35 million a year ago. Purchase of property, plant and equipment was $5.93 million compared with $6.51 million a year ago. Non-GAAP operating income was $21.7 million compared with $22.6 million a year ago. Non-GAAP net income from operations was $18.7 million or $0.44 per diluted share compared with $19.3 million or $0.44 per diluted share a year ago.
For the quarter, the company's revenues were $113.2 million compared with $108.8 million a year ago. Operating income was $10.0 million compared with $12.2 million a year ago. Income from operations before taxes on income was $10.4 million compared with $12.3 million a year ago. Net income was $8.6 million compared with $10.3 million a year ago. Net income attributable to the company was $8.6 million or $0.20 per diluted share compared with $10.5 million or $0.24 per diluted share a year ago. Net cash provided by operating activities was $11.6 million compared with $18.1 million a year ago. Purchase of property, plant and equipment was $2.4 million compared with $3.1 million a year ago. Non-GAAP operating income was $11.8 million compared with $14.1 million a year ago. Non-GAAP net income from operations was $10.5 million or $0.25 per diluted share compared with $12.44 million or $0.29 per diluted share a year ago.
The company expects revenues on a stand-alone basis in the second half of 2014 to be approximately $260 million, with the third quarter expected to be in the range of $118 million - $123 million. SPTS is expected, on a stand-alone basis under U.K. GAAP, to generate revenues of approximately $100 million in the second half of 2014.
Orbotech to Support CEC Panda's New Gen 8.5 Fab in a $55 Million Deal
Jul 24 14
Orbotech Ltd. announced that TFT LCD panel maker Nanjing CEC Panda LCD Technology Co. Ltd. has selected Orbotech as the inspection, testing and repair equipment vendor for its new Gen 8.5 fab in Nanjing, China. During the first and second quarters of 2014, Nanjing CEC Panda placed orders totaling approximately $55 million for Orbotech's newly introduced systems. Installation is expected to commence in the fourth quarter of 2014 and to continue throughout the first half of 2015. Orbotech was chosen for the high-performance capabilities of its recently launched inspection, repair and testing products, which are able to support the complex requirements of CEC Panda. In its new Gen 8.5 Fab, which is slated to be one of the most advanced in the world, CEC Panda has decided to install: The Orbotech QuantumTM automated optical inspection system - offers multi-modal detection capabilities for performing multiple inspections and detecting previously undetectable defects, enabling production of superior quality products at higher yields. Orbotech's Process Saver - with its highly specialized short pulse laser and FSM (fast steering mirror) technology, enables small devices to be repaired and restored to full functionality, thereby improving yield and minimizing product costs. The Array Checker 6088 - the latest model of Orbotech's leading array testing products, designed to support fabs that manufacture a wide range of products by offering a powerful combination of resolution and speed using a new large area VIOS (voltage imaging optical system) that contains a custom-designed high resolution sensor.