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Report No. : |
334765 |
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Report Date : |
07.08.2015 |
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) : |
30.06.2015 |
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Date of Incorporation : |
02.10.1995 |
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Com. Reg. No.: |
51-221158-2 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Subject is 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) as well as in healthcare
revenue cycle management (RCM). Also developers of proprietary technology for
web-based, location-independent data entry for check and forms processing |
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No. of Employee : |
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 : |
No complaints |
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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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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Israel |
B1 |
B1 |
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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. Cut diamonds, high-technology equipment, and pharmaceuticals are among the leading exports. Its major imports include crude oil, grains, raw materials, and military equipment. Israel usually posts sizable trade deficits, which are covered by tourism and other service exports, as well as significant foreign investment inflows. Between 2004 and 2013, growth averaged nearly 5% per year, led by exports. 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. Israel's economy also has weathered the Arab Spring because strong trade ties outside the Middle East have insulated the economy from spillover effects. Slowing demand domestically and internationally and reduced investment due to uncertainties caused by the Gaza conflict in summer 2014 have reduced GDP growth to about 2% during 2014. Natural gas fields discovered off Israel's coast since 2009 have brightened Israel's energy security outlook. The Tamar and Leviathan fields were some of the world's largest offshore natural gas finds this past decade. The massive Leviathan field is expected to come online no sooner than 2017, but production from Tamar provided a one percentage point boost to Israel's GDP in 2013 and a 0.5% boost in 2014. In mid-2011, public protests arose around income inequality and rising housing and commodity prices. Israel's income inequality and poverty rates are among the highest of OECD countries and there is a broad perception among the public that a small number of "tycoons" have a cartel-like grip over the major parts of the economy. The government formed committees and has started splitting up the oligopolies to address some of the grievances but has maintained that it will not engage in deficit spending to satisfy populist demands. Over the long term, Israel faces structural issues, including low labor participation rates for its fastest growing social segments - the ultra-orthodox and Arab-Israeli communities. Also, Israel's progressive, globally competitive, knowledge-based technology sector employs only 9% of the workforce, with the rest employed in manufacturing and services - sectors which face downward wage pressures from global competition.
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Source
: CIA |
ORBOGRAPH LTD.
Telephone 972 8 932 22 57; 942 35 33
Fax 972 8 932 88 57
Email: info@Orbograph.com
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., ~ 94%,
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, ~ 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) as well as in healthcare revenue cycle management (RCM).
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.
Subject is part
(main company) of ORBOTECH's Recognition Software Products Segment.
Among
international business partners: ExactData, Fidelity National FinANCE, Jack Henry &
Ass., Metavante, NetDeposit, Open Solutions, RP Solutions, Symco, Software
Earnings, VECTOR, WAUSAU, South Nassau Communities Hospital, .
Among
local suppliers: HIGHVIEW, BINA, LIVE DNS, and more.
Operating
from facilities at 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 (Billerica, MA).
Had
25 employees in subject in 2013.
There
are 2,212 employees in ORBOTECH Group, of which 671 employees in Israel (had 1,675 employees in the end of 2013, of which 640
in Israel). The increse in employee
number is due to the acquisition of SPTS TECHNOLOGIES.
On 31.05.2011
ORBOTECH completed public offering of 7,705,000 ordinary shares on the NASDAQ,
raising US$ 96.25 million.
ORBOTECH LTD
current market value US$ 810.7 million.
Subject is an
“Approved Enterprise” and as such entitled for State support, grants and tax
relief.
In 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 30.06.2015 31.12.2014
Current assets:
Cash & cash equivalents 168,797 136,367
Financial assets 21,514 20,000
Accounts receivable:
Trade 241,567 248,071
Other 49,957 39,076
Other current assets 7,124 8,213
Inventories 142,250 157,030
631,209 608,757
Investments &
non-current assets 43,440 45,108
Property, plant
and equipment (net) 52,055 55,580
Goodwill 170,177 179,445
Other intangible
assets (net) 123,830 145,082
1,020,711 1,033,972
======== ========
LIABILITIES
Current
liabilities 167,538 187,074
Long term
liabilities 320,656 350,017
Equity 532,517 496,881
1,020,711 1,033,972
======== ========
Subject's revenues
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):
2008 revenues were
US$ 15,300,000.
2009 revenues were
US$ 14,100,000.
2010 revenues were
US$ 13,800,000.
2011 revenues were
US$ 12,700,000.
2012 revenues were
US$ 14,302,000.
2013 revenues were
US$ 13,209,000.
2014 revenues were
US$ 13,227,000.
ORBOTECH
LTD.
Consolidated
statement of income
US$
(thousands)
for
the year end in 31.12
2014 2013 2012
Revenues 582,746 439,995 387,008
Gross profit 253,193 191,540 139,306
Operating income (loss) 48,146 47,531 (40,796)
Income
(loss) before income taxes 39,100 46,340 (45,916)
Net income 35,264 39,161 (45,579)
======= ======= =======
The 2012 losses
are attributed to a significant decrease in sales.
Consolidated first 6 months of 2015 revenues
were US$ 373,779,000 (71.5% increase from the parallel period in 2014), making
gross profit of
US$ 168,841,000, operating income of US$
45,817,000, and net income of
US$ 24,805,000.
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, ~81%, USA
ORBOTECH S.A.,
Belgium
LASER IMAGING
SYSTEMS GMBH & CO. KG, Germany
NEW SYSTEMS S.R.L,
Italy
ORBOTECH PACIFIC
LTD., Hong Kong
ORBOTECH SINGAPORE
CORPORATION PTE LTD., Singapore
ORBOTECH B.V.,
Holland
ORBOTECH ASIA
LTD., Hong Kong
ORBOTECH JAPAN
LTD., Japan
FRONTLINE P.C.B.
SOLUTIONS LTD., 50%
FRONTLINE P.C.B.
SOLUTIONS LP, 50%
ORBOTECH HOLDING
U.K. LIMITED, UK
SPTS TECHNOLOGIES
GROUP LIMITED, UK
Bank Leumi Le’Israel
Ltd., Yavne Branch, (No. 939), Yavne.
Nothing
unfavorable learned on subject (please refer to NOTE below).
Despite our efforts, we were unable to speak with subject's officials,
as they were always unavailable.
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
ORBOTECH’s Korean subsidiary and six local employees, who are accused of
leaking Korean subsidiary's client information to their competitors. In
December 2013, ORBOTECH's Korean subsidiary and five of its Korean employees
were acquitted by the Seoul Court on all charges (one employee was convicted
and fined US$ 10,000). Although being acquitted, ORBOTECH stated that, this
matter has adversely impacted its FPD business in Korea and harmed its
reputation and may continue to do so.
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.
ORBOTECH Group got badly hit by the crisis in global markets in 2008/9, but
managed to recover (after going re-organization and streamlining measures, including
laying-off several hundred employees) since the 2nd half of 2009,
mostly from large Korean manufacturers. As seen in the financial results,
ORBOTECH's performance was adversely hit in 2012 due to the weakness in the
company's target markets. Also, a/m affair in Korea negatively affected Group's
Korean activities. Yet, once again, ORBOTECH crossed the tough period
successfully.
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 acquired 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. In December 2014 subsidiary
ORBOTECH LT SOLAR received continuing orders from solar panels manufacturers in
volume of US$ 15 million.
In August 2014
ORBOTECH acquired SPTS TECHNOLOGIES for
US$ 375.1 million. SPTS designs, develops, manufactures, sells and supports
industry leading etch, PVD, CVD and thermal processing equipment and solutions,
and had some 480 employees.
The acquisition
carried out via own resources of US$ 100 million and the rest via a loan by
J.P. MORGAN CHASE BANK.
According
to the Israel Association of Electronics & Software, Hi-Tech industries
sales in 2013 summed up to US$ 27.3 billion, over 6% rise from 2012 (then sales
were US$ 25.6 billion, up from US$ 24.8 billion in 2011 and US$ 23.5 billion in
2010). 2013 sales divided into export of US$ 22.86 billion (US$ 21.48 billion,
US$ 20.99 billion & US$ 19.87 billion in 2012, 2011 & 2010,
respectively) and US$ 4.4 billion of sales to the local market (US$ 4.1
billion, US$ 3.9 billion & US$ 3.6 billion in 2012, 2011 & 2010,
respectively).
The division of Israel's Hi-Tech companies by
production in 2011: 34% Software, 30% Industrial Equipment & Components, 19%
Civilian Communications & Telecommunications, 10% Defense Systems, 8%
Medical Systems.
Breakdown
of export in 2011 showed 3.4% increase in Electronic Components &
Computers, and 3.9% increase in Communications, Medical & Scientific
Equipment.
According
to the Central Bureau of Statistics (CBS) sales for export from the manufacture
of computers, electronic & optical products in 2014 were US$ 11,328
million, compared to US$ 11,636 million in 2013 and US$ 10,986 million in 2012.
Division of export was: 50% to Asia, 20% to USA, 15% - EU, 15% to the rest of
the world.
According
to the CBS, import of raw materials for the local Machine and
Electronics Manufacturing in 2014 climbed 2.2%, reaching US$ 10,058 million
(rose by 1.5% in local NIS currency), reversing the trend in 2013 when import
fell by 1.3% from 2012, and returning to the growth trend by 8.5%, 12% and 20%
in 2012, 2011 and 2010 (in US$ terms), respectively. Import continued to rise
in the first 5 months of 2015, by 1.7% compared to the parallel period in 2014.
Investments
(capital formation) in imported machinery and other equipment (M&E) by the
hi-tech industries in the branches of computers, electronic and optical
production increased in 2014 by 9.4% from the previous year reaching NIS
2,840.5 million. That represents a reverse from the negative trend in 2013 and
2012, where import fell by 54% and by 30.5%, respectively from the previous
year.
Notwithstanding
the lack of updated data from subject's officials, considered good for trade
engagements.
1. According
to the Registrar of Companies subject has a "Law Violating Company"
Status.
As part of the Registrar efforts in the last period to collect fees and
supervision on meeting all duties by Companies’ law, such status notes have
been added to the registry. Registration as a "Law Violating
Company" is done due certain violation by the subject company for not
meeting the Registrar of Companies regulations promptly, mainly for not
paying Registrar fees, and/or not submitting annual reports on time. The
sanctions and penalties against the company in such case include fines up to
NIS 250,000, not allowing the company to register new charges on its favor, not
allow registration a charge on its assets (which may deprive the company from
taking new loans at their banks), cannot make changes in the Registrar, and
more.
It should be noted that this may not necessarily be connected to the
company's business activities and financial standing (although in many cases
there is a connection, it is most likely not so in subject's case;
It is also possible that there is a technical or administrative problem, as
such things also happen).
2. Since February 2013 Israel
Post has started using a new area code method of 7 digits (the old method of 5 digits
is no longer valid).
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.63.76 |
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|
1 |
Rs.99.60 |
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Euro |
1 |
Rs.69.71 |
INFORMATION DETAILS
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Analysis Done by
: |
TRI |
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Report Prepared
by : |
ASH |
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
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.