Orbotech lowers 2012 revenue guidance
Orbotech Ltd. lowered its full-year revenue forecast on Tuesday, saying the tough economy is pressuring its customers.
Shares of the Israel-based company, which makes parts for circuit boards, flat panel displays and other electronic components, fell more than 8 percent in afternoon trading.
Orbotech said that it expects to generate revenue of roughly $400 million for the year, down from its prior forecast of $430 million to $450 million. Analysts polled by FactSet were expecting $434.1 million.
The company also said it expects revenue of roughly $98 million for the third quarter; analysts were expecting $112.3 million.
Orbotech said that it saw strong sales activity during July, but its third quarter revenues from sales of equipment to the printed circuit board industry were much lower than anticipated as customers deferred some spending due to the uncertainty of the global economy.
It also said it expects the already lower spending by customers in flat panel display industry will likely continue into the first half of 2013.
Shares fell 69 cents, or 7.7 percent, to $8.30 in afternoon trading. Its shares have traded between a 52-week low of $6.43 in late June and a high for the past year of $11.85 in early April.