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,

2018

2017

2018

2017

Revenues 

$779,292

$643,976

$261,226

$245,664

Cost of revenues

414,620

340,224

140,385

127,652

Gross profit

364,672

303,752

120,841

118,012

Operating expenses: 

Research and development, net

104,697

90,662

36,361

31,921

Selling, general and administrative

122,097

103,019

40,864

36,563

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

(4,016)

(3,235)

(1,104)

(880)

Amortization of intangible assets

19,113

18,635

6,372

6,371

Transaction cost pending merger with KLA

4,706

944

Total operating expenses

246,597

209,081

83,437

73,975

Operating income

118,075

94,671

37,404

44,037

Financial expenses - net

4,538

4,890

2,747

1,317

Income before taxes on income

113,537

89,781

34,657

42,720

Taxes on income

18,857

14,256

5,600

6,569

Net income

94,680

75,525

29,057

36,151

Net loss attributable to non-controlling interests

(929)

(979)

(167)

(403)

Net income attributable to Orbotech Ltd. 

$95,609

$76,504

$29,224

$36,554

Basic earnings per share

$1.99

$1.60

$0.60

$0.76

Diluted earnings per share

$1.95

$1.57

$0.59

$0.75

Weighted average number of shares (in thousands)

used in computation of:

Basic earnings per share

48,140

47,914

48,611

47,995

Diluted earnings per share

49,037

48,812

49,502

48,903