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Report Date : |
22.03.2013 |
IDENTIFICATION DETAILS
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Name : |
ORBOGRAPH LTD. |
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Registered Office : |
P.O. Box 215, Yavne (8110101), Hasanhedrin Ave., Northern Industrial
Zone, Yavne 8121501 |
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Country : |
Israel |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
02.10.1995 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Developers, marketers, and exporters of recognition software
comprising automatic check reading (handwriting and printed) and check fraud
detection products, designed for banks and other financial institutions
(through system integrators and solutions providers) |
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No. of Employees : |
25 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30th, 2012
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Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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Israel |
A2 |
A2 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
israel - ECONOMIC OVERVIEW
Israel has a technologically
advanced market economy. It depends on imports of crude oil, grains, raw
materials, and military equipment. Cut diamonds, high-technology equipment, and
agricultural products (fruits and vegetables) are the leading exports. Israel
usually posts sizable trade deficits, which are covered by tourism and other
service exports, as well as significant foreign investment inflows. The global
financial crisis of 2008-09 spurred a brief recession in Israel, but the
country entered the crisis with solid fundamentals - following years of prudent
fiscal policy and a resilient banking sector. The economy has recovered better
than most advanced, comparably sized economies. In 2010, Israel formally
acceded to the OECD. Natural gasfields discovered off Israel's coast during the
past two years have brightened Israel's energy security outlook. The Leviathan
field was one of the world's largest offshore natural gas finds this past
decade. In mid-2011, public protests arose around income inequality and rising
housing and commodity prices. The government formed committees to address some
of the grievances but has maintained that it will not engage in deficit
spending to satisfy populist demands.
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Source : CIA |
ORBOGRAPH LTD.
Telephone 972 8 932 22 57; 942
35 33
Fax 972 8 932 88 57
P.O. Box 215, Yavne (8110101)
Hasanhedrin Ave.
Northern Industrial Zone
YAVNE 8121501 ISRAEL
A private limited
company, incorporated as per file No. 51-221158-2 on the 02.10.1995.
Authorized share capital NIS 28,000.00, divided into -
2,800,000 ordinary shares of NIS
0.01 each,
of which 1,958,004
shares amounting to NIS 19,580.04 were issued.
1. ORBOTECH LTD., 91.4%, a
public limited company, whose shares are traded on the Nasdaq Stock Exchange
(Symbol ORBK) (having no controlling shareholder, shares are held by several
investment funds and the public,
2. Eliyahu Lerner, 8.6%, holding
shares on behalf of past and present employees.
1. Dr. Shimon Ullman,
2. Raanan (Rani) Cohen, General Manager of
ORBOTECH LTD.,
3. Arie Weisberg,
4. Asher Levi,CFO of ORBOTECH LTD.,
5. Amichai Steinberg.
Avikam Baltsan
Developers,
marketers, and exporters of recognition software comprising automatic check
reading (handwriting and printed) and check fraud detection products, designed
for banks and other financial institutions (through system integrators and
solutions providers). Also developers of proprietary technology for web-based,
location-independent data entry for check and forms processing.
All sales are for
export, mostly to North America.
Among
international business partners: ExactData, Fidelity National FinANCE, Jack Henry & Ass.,
Metavante, NetDeposit, Open Solutions, RP Solutions, Symco, Software Earnings, VECTOR,
WAUSAU.
Among
local suppliers: HIGHVIEW, BINA, LIVE DNS, and more.
Operating
from parent company ORBOTECH's rented headquarters of and
primary research, development and manufacturing facilities, on an area of
27,000 sq. meters, in Hasanhedrin Ave., North Industrial Zone, Yavne (to
where subject moved from 2 Haprat Street, Industrial Zone, Yavne). Also operating from offices premises in the USA.
Having
25 employees.
There
are (currently) 1,642 employees in the ORBOTECH
Group (of which 556 employees in Israel).
ORBOTECH LTD
current market value US$ 438.9million.
Subject is an
“Approved Enterprise” and as such entitled for State support, grants and tax
relief.
In December 2002
the Israeli Investment Centre (IIC) approved a US$ 500,000 investment plan for
the expansion of subject’s plant.
There are no
charges registered on the company's assets.
Financial data is
included in the consolidated B/S of parent company ORBOTECH LTD., which shows:
US$
(thousands)
ASSETS 31.12.2012 31.12.2011
Current assets:
Cash & cash equivalents 260,761 151,237
Financial assets 5,252 145,292
Accounts receivable:
Trade 164,498 196.232
Other 29,908 26,163
Other current assets 7,862 6,580
Inventories 93,854 105,109
562,135 630,613
Investments &
non-current assets 39,582 23,271
Property, plant
and equipment (net) 24,715 26,664
Goodwill 12,444 12,444
Other intangible
assets (net) 14,442 54,491
653,318 747,483
======= =======
LIABILITIES
Current
liabilities 160,870 147,857
Long term liabilities
Long-term bank loan - 64,000
Other long-term liabilities 44,935 45,494
44,935 109,494
Equity 447,513 490,132
653,318 747,483
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Subject's sales
from recognition software products (apparently representing the vast majority
of subject’s overall sales) were (data from ORBOTECH's financial statements -
recognition software products segment):
2007 sales were
US$ 16,700,000.
2008 sales were
US$ 15,300,000.
2009 sales were
US$ 14,100,000.
2010 sales were
US$ 13,800,000.
2011 sales were
US$ 12,700,000.
2012 sales were
US$ 14,300,000.
ORBOTECH
LTD.
Consolidated
statement of income
US$
(thousands)
for
the year end in 31.12
2010 2011 2012
Sales 529,355 565,313 400,731
Gross profit 216,454 229,128 151,253
Operating income (loss) 57,687 60,061 (40,816)
Income
(loss)before taxes on income 50,403 53,510 (49,916)
Net income (loss)
34,289 47,017 (46,537)
======== ======== ========
The 2012 losses
are attributed to a significant decrease in sales.
ORBOTECH LTD.,
parent company, developers, manufacturers, marketers, and exporters of advanced
automatic optical inspection (AOI) systems, principally for printed circuit
boards (PCBs) and flat panel displays (FPDs).
Main subsidiaries
(all fully owned, except when otherwise stated):
ORBOTECH INC., USA
PHOTON DYNAMICS
INC., USA
ORBOTECH LT SOLAR
LLC, 77.6%, USA
ORBOTECH S.A.,
Belgium,
LASER IMAGING
SYSTEMS GMBH & CO. KG, Germany,
NEW SYSTEMS S.R.L,
Italy,
ORBOTECH PACIFIC
LTD.
ORBOTECH SINGAPORE
CORPORATION PTE LTD.
ORBOTECH B.V.
ORBOTECH ASIA LTD.
ORBOTECH JAPAN
LTD.
FRONTLINE P.C.B.
SOLUTIONS LTD., 50%.
FRONTLINE P.C.B.
SOLUTIONS LP.
Bank Leumi Le’Israel
Ltd., Yavne Branch, (No. 939), Yavne.
Nothing
unfavorable learned on subject.
In June 2012
ORBOTECH reported that it received notification of charges filed by government officials
in the Seoul Central District Court of the Republic of Korea related to the
alleged acquisition and misuse of confidential customer information by
subject’s Korean subsidiary and six local employees, who are accused of leaking
Korean subsidiary's client information to their competitors.
ORBOTECH Group was facing the crisis in global economic markets that
adversely affected the electronic markets in general and chips field in
particular –therefore their the sales, as reflected in ORBOTECH Group's financial results of 2008/9. Subject went through a
re-organization and streamlining measures to face the situation, including
laying-off several hundred employees. Yet, since the 2nd half of
2009 a recovery trend in the global markets which positively affected subject:
consumer demand for electronic devices, such as flat panel display television
sets, mobile phones and personal computers, was even stronger than expected. As
a result, subject experienced high demand for its PCB and FPD inspection and
production solutions, and this demand translated into increased bookings for
flat panel display equipment, mostly from large Korean manufacturers, as seen
in the 2010/2011 financial results. Yet, as seen in the recent financial
results, subject's performance has been adversely hit in 2012 due to the weakness in the company's target
markets. Also, the affair in Korea negatively affected Group's Korean
activities.
In October 2012 it
was reported that ORBOTECH is intending to lay off 5% (some 100 employees) of
its workforce.
Subject's officials refused to disclose financial data.
ORBOTECH,
established in 1981, is a veteran manufacturer on the local hi-tech industry
and world leader in the electronics industry in the field of optical inspection
systems for printed circuit boards (PCBs) and flat panel displays (FPDs) for
LCD screens.
In August 2007
ORBOTECH entered into the medical imaging field, announcing the acquisition of
3D - DANISH DIAGNOSTIC DEVELOPMENT A/S (DDD), Danish manufacturer of gamma
cameras for nuclear medicine. It is part of subject's strategy for growth and
diversification. Subject paid US$ 39 million, and further US$ 6.5 million based
on milestones.
In June 2008
ORBOTECH made its largest acquisition deal ever, acquiring its competitor in the
inspection systems for flat panel displays PHOTON DYNAMICS of the U.S.A. for
US$ 290 million (acquisition concluded October 2008). The American company,
whose shares were traded on Nasdaq, manufactures inspection systems for FPDs
(ceased to be traded due to the acquisition), however due to the global crises
ORBOTECH had to perform a US$ 87.8 million write-off on purchase.
Notwithstanding
the losses of parent company, considered good for trade engagements.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.54.28 |
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UK Pound |
1 |
Rs.82.06 |
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Euro |
1 |
Rs.70.23 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.