ORBOTECH LTD.

RECONCILIATION OF GAAP TO NON-GAAP RESULTS

U.S. dollars in thousands (except per share data)

 (Unaudited)

Three months ended

Year ended

March 31,

December 31,

2017

2016

2016

Reported operating income on GAAP basis

$19,654

$23,352

$116,945

Equity-based compensation expenses

2,218

1,680

6,356

Amortization of intangible assets

5,893

6,295

27,456

Non-GAAP operating income

$27,765

$31,327

$150,757

Reported net income attributable to Orbotech Ltd. on GAAP basis

$14,920

$15,754

$79,438

Equity-based compensation expenses

2,218

1,680

6,356

Amortization of intangible assets

5,893

6,295

27,456

Tax effect of non-GAAP adjustments

(748)

(729)

(3,205)

Share in losses of equity method investee 

150

600

Charges associated with the retirement of the 2014 Credit Agreement

6,228

Non-GAAP net income

$22,283

$23,150

$116,873

GAAP earnings per diluted share

$0.31

$0.36

$1.71

Non-GAAP earnings per diluted share

$0.46

$0.53

$2.52

Shares used in earnings per diluted share computation- in thousands

48,768

44,062

46,461