Revenues for the first quarter of 2003 totaled $54.2 million, compared to the $51.1 million recorded in the first quarter a year ago. Net income for the first quarter of 2003 was $1.0 million, or $0.03 per share (diluted), compared with net loss of $2.7 million, or $0.09 per share (diluted), in the first quarter of 2002. Excluding a restructuring charge of $1.0 million, net of taxes, the reported net loss for the first quarter of 2002 was $1.7 million, or $0.05 per share (diluted).
Sales of equipment to the printed circuit board ('PCB') industry relating to bare PCBs were $17.6 million in the first quarter of 2003, compared to $19.5 million in the fourth quarter, and $17.3 million in the first quarter, of 2002. Sales of flat panel display ('FPD') inspection equipment were $14.5 million, compared to $15.0 million in the fourth quarter, and $11.2 million in the first quarter, of last year. Sales of equipment to the PCB industry relating to assembled PCBs were $4.5 million, compared to $5.3 million in the fourth quarter, and $5.0 million in the first quarter, of last year. Sales of automatic check reading products were $1.8 million in the first quarter of 2003, compared to $1.7 million in the fourth quarter, and $1.6 million in the first quarter, of 2002. In addition, service revenue for the first quarter increased to $15.8 million from $15.4 million in the fourth quarter of 2002, and decreased from $16.0 million in the first quarter of 2002.
The Company completed the quarter with cash equivalents and short-term and long-term cash investments of approximately $150 million, the same amount as at year end. The Company had a positive operating cash flow for the quarter of approximately $8.2 million. Non-operating disbursements totaled approximately $8.0 million, including $1.2 million in capital expenditures, $3.1 million in additional investments in three private Israeli technology companies and a $3.6 million loan repayment to the Government of Israel in connection with the settlement reached in 2001 with the Israeli Office of the Chief Scientist ('OCS') for the early payment of royalties arising from previous OCS grants to the Company.
Despite the continuing effects of the depressed economic activity and capacity underutilization throughout the global electronics industry, the Company returned to profitability in the quarter. The Company's ability to predict future trends in the flow of orders for its systems remains limited, and it believes that existing, very difficult conditions will continue to prevail in the near future. The Company is optimistic that demand for its products will recover, and it is confident that its continued emphasis on research and development, as well as its strong financial condition, will continue to provide a sound base for future growth.
Commenting on the results, Yochai Richter, Chief Executive Officer, said: 'Our first quarter operating results were in line with our expectations of a modest return to profitability, despite the continued, very harsh business and economic environment. We began to reap the benefits of our cost reduction program, which resulted this quarter in a 10% decrease in operating expenses as compared to the previous quarter. In addition, we continue to introduce new and innovative solutions for both PCB and FPD manufacturers, which demonstrates our ongoing commitment to technological leadership and our overall strength in the electronics industry.'
An earnings conference call is scheduled for Monday, May 12, 2003, at 9:00 a.m. EST. The dial-in number for the conference call is 773-756-4600, and a replay will be available, on telephone number 402-998-0482, until May 23, 2003. The pass code is Q1. A live web cast of the conference call and replay can also be heard by accessing the investor relations section on the Company's website at http://www.orbotech.com.
Except for historical information, the matters discussed in this press release are forward-looking statements that are subject to certain risks and uncertainties which could cause the actual results to differ materially from those projected, including industry trends, the timing and strength of product and service offerings, changes in business or pricing strategies, changes in the prevailing political and regulatory framework in which the relevant parties operate or in economic or technological trends or conditions, including currency fluctuations, inflation and consumer confidence, on a global, regional or national basis and other risks detailed from time to time in the Company's SEC reports. The Company assumes no obligation to update the information in this press release.
Orbotech is a world leader in providing yield-enhancing, production support solutions for specialized applications in the supply chain of the electronics industry, principally for printed circuit boards (PCBs) and flat panel displays (FPDs). The Company designs, develops, manufactures, markets and services automated optical inspection (AOI) systems for bare and assembled PCBs and for FPDs, and imaging solutions for PCB production. The Company's innovative AOI, imaging and computer-aided manufacturing (CAM) technologies enable customers to achieve the increased yields and throughput essential to remaining at the forefront of electronics production. Through its subsidiary, Orbograph Ltd., the Company also develops and markets automatic check reading software to banks and other check processing organizations. Of Orbotech's employees, more than one quarter are scientists and engineers, who integrate their multi-disciplinary knowledge, talents and skills to develop and provide sophisticated solutions and technologies designed to meet customers' long-term needs. Orbotech maintains its headquarters and its primary research, development and manufacturing facilities in Israel, and more than 30 offices worldwide. The Company's extensive network of marketing, sales and customer support teams throughout North America, Europe, the Pacific Rim, China and Japan deliver its knowledge and expertise directly to customers the world over. For more information visit http://www.orbotech.com.