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Orbotech Ltd. has unveiled a new mid-term financial model at the Company’s Investor Day in New York. Orbotech’s model targets revenues exceeding $1.25 billion by 2020, resulting from organic growth opportunities driven by electronics megatrends such as connectivity (5G), automotive, artificial intelligence (AI), augmented reality (AR) and virtual reality (VR).
“In late 2014, we presented our current financial model and established revenue goals that we are pleased to announce we met in three years,” said Asher Levy, CEO of Orbotech. “We are now introducing Orbotech’s 2020 financial model, which reflects the Company’s potential organic growth from the $900 million revenue target that we set in 2014, to over $1.25 billion by 2020. We believe that we will achieve this target through our technological leadership, outstanding yield-enhancing and process-enabling solutions and customer service, and because we are uniquely positioned to leverage tremendous market growth opportunities.”
Under the 2020 financial model, revenues are planned to exceed $1.25 billion by 2020, with gross margins of 50%, research and development investment of 12%-14%, adjusted EBITDA margin of 27%-29% and non-GAAP net income margin of 21%-23%. For more information about these non-GAAP metrics, see below under “Non-GAAP Financial Measures.”
Orbotech’s Q3 results, which were announced on November 1, 2017, marked another record quarter for the Company in revenues and profitability metrics. Orbotech is capitalizing on the underlying strength of the industries served and is leveraging its technological and operational excellence to outperform the competition.
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, click here.