Orbotech clocks disappointing Q3, NI tumbles 97%
Shares of Orbotech Ltd. (Nasdaq: ORBK) are treading in the red this morning after the provider of production support for the electronics industry’s supply chain reported its net income for the quarter fell a disappointing 97%.
For the three months ended Sept. 30, the Israeli small cap recorded net income for the third quarter of $0.4 million, or $0.01 per share, compared with net income of $16.2 million, or $0.49 per share, in the third quarter of 2006. Eight analysts polled by Thomson Financial were expecting earnings of $0.13 per share on average.
Net income for the third quarter is attributed to $2.3 million in amortization of intangible assets from the firm’s acquisitions of 3 D - Danish Diagnostic Development A/S and New System Srl made earlier this year. The bottom-line also includes $1.4 million of share-based compensation expenses in the third quarter without a reduction in income taxes.
Revenues for the third quarter declined 23% to $82.3 million, compared with $106.9 million booked in the third quarter last year. The consensus of five analysts surveyed by Thomson Financial was for revenues of $87.44 million.
Shares of Orbotech (ORBK) slipped 12.82%, or $2.71, to $18.43 in pre-market trading. Shares of Orbotech have been trading in the range of $18.25 to $26.00 for the past 52 weeks.
