CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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

 (Unaudited)

Three months ended

Year ended

March 31,

December 31,

2017

2016

2016

Revenues 

$187,649

$190,427

$806,402

Cost of revenues

100,524

104,824

433,995

Gross profit

87,125

85,603

372,407

Operating expenses: 

Research and development, net

28,675

26,569

107,095

Selling, general and administrative

33,953

30,023

124,356

Equity in earnings of Frontline

(1,050)

(636)

(3,445)

Amortization of intangible assets

5,893

6,295

27,456

Total operating expenses

67,471

62,251

255,462

Operating income

19,654

23,352

116,945

Financial expenses - net

2,006

4,664

21,042

Income before taxes on income

17,648

18,688

95,903

Taxes on income

2,868

2,845

16,308

Share in losses of equity method investee

150

600

Net income

14,780

15,693

78,995

Net loss attributable to the non-controlling interests

(140)

(61)

(443)

Net income attributable to Orbotech Ltd. 

$15,754

$79,438

Basic earnings per share

$0.31

$0.36

$1.74

Diluted earnings per share

$0.31

$0.36

$1.71

Weighted average number of shares (in thousands)

used in computation of:

Basic earnings per share

47,839

43,186

45,534

Diluted earnings per share

48,768

44,062

46,461