ORBOTECH LTD.

RECONCILIATION OF GAAP TO NON-GAAP RESULTS

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

 (Unaudited)

12 months ended

3 months ended

December 31

December 31

2015

2014

2015

2014

Reported operating income on GAAP basis

$94,704

$48,146

$23,841

$16,629

Equity based compensation expenses

3,816

3,192

1,219

822

Amortization of intangible assets

30,224

19,235

6,677

8,805

Gain from the sale of the Thermal activity

(628)

Non-GAAP operating income

$128,116

$70,573

$31,737

$26,256

Reported net income attributable to Orbotech Ltd. on GAAP basis

$56,771

$35,380

$16,047

$13,122

Equity- based compensation expenses

3,816

3,192

1,219

822

Amortization of intangible assets

30,224

19,235

6,677

8,805

Gain from the sale of the Thermal activity, net of tax effect

(628)

Tax adjustments re non-GAAP adjustments

(46)

(1,823)

(775)

(935)

SPTS acquisition costs

6,761

0

Share in losses of associated company

615

417

200

102

Non-GAAP net income

$90,752

$63,162

$23,368

$21,916

Non-GAAP earnings per diluted share

$2.09

$1.48

$0.54

$0.51

Shares used in earnings per diluted share calculation-in thousands

43,322

42,757

43,575

42,626