ORBOTECH LTD.

RECONCILIATION OF GAAP TO NON-GAAP RESULTS

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

 (Unaudited)

9 months ended

3 months ended

September 30

September 30

2015

2014

2015

2014

Reported operating income on GAAP basis

$70,864

$31,517

$25,047

$13,389

Equity based compensation expenses

2,597

2,370

848

817

Amortization of intangible assets

23,547

10,430

7,519

8,410

Gain from the sale of the Thermal activity

(628)

Non-GAAP operating income

$96,380

$44,317

$33,414

$22,616

Reported net income attributable to Orbotech Ltd. on GAAP basis

$40,724

$22,258

$15,919

$7,379

Equity- based compensation expenses

2,597

2,370

848

817

Amortization of intangible assets

23,547

10,430

7,519

8,410

Gain from the sale of the Thermal activity

(628)

Tax adjustments re non-GAAP adjustments

729

(888)

(782)

(888)

SPTS acquisition costs

6,821

6,821

Share in losses of associated company

415

315

200

102

Non-GAAP net income

$67,384

$41,306

$23,704

$22,641

Non-GAAP earnings per diluted share

$1.56

$0.97

$0.55

$0.53

Shares used in earnings per diluted share calculation-in thousands

43,237

42,776

43,491

42,735