CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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

                                                                                        (Unaudited)

Nine months ended

Three months ended

September 30,

September 30,

2017

2016

2017

2016

Revenues

$643,976

$591,360

$245,664

$204,953

Cost of revenues

340,224

319,634

127,652

108,739

Gross profit

303,752

271,726

118,012

96,214

Operating expenses:

Research and development, net

90,662

80,049

31,921

27,345

Selling, general and administrative

103,019

92,357

36,563

31,068

Equity in earnings ofP.C.B. Solutions L.P ("Frontline")

(3,235)

(2,311)

(880)

(634)

Amortization of intangible assets

18,635

20,750

6,371

7,615

Total operating expenses

209,081

190,845

73,975

65,394

Operating income

94,671

80,881

44,037

30,820

Financial expenses - net

4,890

15,318

1,317

1,171

Income before taxes on income

89,781

65,563

42,720

29,649

Taxes on income

14,256

11,599

6,569

4,885

Share in losses of equity method investee

450

150

Net income

75,525

53,514

36,151

24,614

Net loss attributable to non-controlling interests

(979)

(293)

(403)

(99)

Net income attributable to Orbotech Ltd.

$53,807

$36,554

$24,713

Basic earnings per share

$1.60

$1.20

$0.76

$0.52

Diluted earnings per share

$1.57

$1.17

$0.75

$0.51

Weighted average number of shares (in thousands)

used in computation of:

Basic earnings per share

47,914

44,867

47,995

47,397

Diluted earnings per share

48,812

45,813

48,903

48,385