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,

2018

2017

2018

2017

Revenues 

$518,066

$398,312

$267,515

$210,663

Cost of revenues

274,235

212,572

141,593

112,048

Gross profit

243,831

185,740

125,922

98,615

Operating expenses: 

Research and development, net

68,336

58,741

34,741

30,066

Selling, general and administrative

81,233

66,456

40,167

32,503

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

(2,912)

(2,355)

(1,383)

(1,305)

Amortization of intangible assets

12,741

12,264

6,370

6,371

Transaction cost pending merger with KLA

3,762

1,281

Total operating expenses

163,160

135,106

81,176

67,635

Operating income

80,671

50,634

44,746

30,980

Financial expenses - net

1,790

3,573

3,435

1,567

Income before taxes on income

78,881

47,061

41,311

29,413

Taxes on income

13,257

7,687

5,586

4,819

Net income

65,624

39,374

35,725

24,594

Net loss attributable to non-controlling interests

(762)

(576)

(394)

(436)

Net income attributable to Orbotech Ltd. 

$66,386

$39,950

$36,119

$25,030

Basic earnings per share

$1.38

$0.83

$0.74

$0.52

Diluted earnings per share

$1.35

$0.82

$0.73

$0.51

Weighted average number of shares (in thousands)

used in computation of:

Basic earnings per share

48,098

47,909

48,537

47,907

Diluted earnings per share

48,998

48,806

49,443

48,868