ORBOTECH LTD.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

U.S. dollars in thousands (except per share data)

 (Unaudited)

Six months ended

Three months ended

June 30,

June 30,

2017

2016

2017

2016

Revenues

$398,312

$386,407

$210,663

$195,980

Cost of revenues

212,572

210,895

112,048

106,071

Gross profit

185,740

175,512

98,615

89,909

Operating expenses:

Research and development, net

58,741

52,704

30,066

26,135

Selling, general and administrative

66,456

61,289

32,503

31,266

Equity in earnings of Frontline

(2,355)

(1,677)

(1,305)

(1,041)

Amortization of intangible assets

12,264

13,135

6,371

6,840

Total operating expenses

135,106

125,451

67,635

63,200

Operating income

50,634

50,061

30,980

26,709

Financial expenses - net

3,573

14,147

1,567

9,483

Income before taxes on income

47,061

35,914

29,413

17,226

Taxes on income

7,687

6,714

4,819

3,869

Share in losses of equity method investee

300

150

Net income

39,374

28,900

24,594

13,207

Net loss attributable to non-controlling interests

(576)

(194)

(436)

(133)

Net income attributable to Orbotech Ltd.

$39,950

$29,094

$25,030

$13,340

Basic earnings per share

$0.83

$0.67

$0.52

$0.30

Diluted earnings per share

$0.82

$0.65

$0.51

$0.30

Weighted average number (in thousands) of shares

used in computation of:

Basic earnings per share

47,909

43,603

47,907

44,019

Diluted earnings per share

48,806

44,527

48,868

44,992