Exhibit 99.1

ORBOTECH LTD.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

AT MARCH 31, 2016

(Unaudited)

TABLE OF CONTENTS

	Page
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS:
Balance Sheets		F-2
Statements of Operations		F-4
Statements of Comprehensive Income		F-5
Statements of Cash Flows		F-6
Notes to Condensed Consolidated Interim Financial Statements		F-8

ORBOTECH LTD.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	March 31, 2016		December 31, 2015
	U.S. dollars in thousands
Assets
CURRENT ASSETS:
Cash and cash equivalents	$	156,244	$	162,102
Restricted cash		11,374		13,617
Marketable securities		404		409
Short-term bank deposits		3,043		9,550
Accounts receivable:
Trade		288,517		284,192
Other		58,572		55,906
Inventories		135,380		133,250
Total current assets		653,534		659,026
INVESTMENTS AND OTHER NON-CURRENT ASSETS:
Marketable securities		5,716		5,637
Funds in respect of employee rights upon retirement		8,471		8,130
Deferred income taxes		20,636		20,147
Equity method investee and other receivables		10,896		10,144
		45,719		44,058
PROPERTY, PLANT AND EQUIPMENT, net		58,490		58,982
OTHER INTANGIBLE ASSETS, net		103,340		109,635
GOODWILL		170,177		170,177
Total assets	$	1,031,260	$	1,041,878

/s/ Yochai Richter	)	Active Chairman of the
Yochai Richter	)	Board of Directors
/s/ Asher Levy	)
Asher Levy	)	Chief Executive Officer

F-2

ORBOTECH LTD.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	March 31,			December 31,
	2016			2015
	U.S. dollars in thousands
Liabilities and equity
CURRENT LIABILITIES:
Current maturities of long-term loan	$	13,981		$	13,937
Accounts payable and accruals:
Trade		66,675			65,037
Other		90,458			94,930
Deferred income		30,132			29,282
Total current liabilities		201,246			203,186
LONG-TERM LIABILITIES:
Long-term loan, net		193,819			218,372
Liability for employee rights upon retirement		22,183			21,535
Deferred income taxes		16,259			16,984
Other tax liabilities		10,582			14,045
Total long-term liabilities		242,843			270,936
Total liabilities		444,089			474,122
EQUITY:
Orbotech Ltd. shareholders’ equity
Ordinary shares of NIS 0.14 par value per share (“Ordinary Shares”)
Authorized at March 31, 2016 and December 31, 2015: 80,000,000 Ordinary Shares
Issued at March 31, 2016 and December 31, 2015: 48,703,410 and 48,490,093 Ordinary Shares, respectively;
Outstanding at March 31, 2016 and December 31, 2015: 43,292,637 and 43,079,320 Ordinary Shares, respectively		2,217			2,209
Additional paid-in capital		310,359			306,612
Retained earnings		376,475			360,721
Accumulated other comprehensive loss		(1,539	)		(1,506	)
Less - treasury shares, at cost (at March 31, 2016 and December 31, 2015) - 5,410,773 Ordinary Shares		(99,539	)		(99,539	)
Total Orbotech Ltd. shareholders’ equity		587,973			568,497
Non-controlling interest		(802	)		(741	)
Total equity		587,171			567,756
Total liabilities and equity	$	1,031,260		$	1,041,878

The accompanying notes are an integral part of the condensed financial statements.

F-3

ORBOTECH LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three months ended March 31,
	2016			2015
	U.S. dollars in thousands (except per share data)
REVENUES:
Sale of products	$	140,946		$	131,342
Services rendered		49,481			53,442
		190,427			184,784
COST OF REVENUES:
Cost of products sold		74,621			71,179
Cost of services rendered		30,203			30,528
		104,824			101,707
GROSS PROFIT		85,603			83,077
RESEARCH AND DEVELOPMENT COSTS:
Expenses incurred		27,321			26,538
Less - government participations		752			759
NET RESEARCH AND DEVELOPMENT COSTS		26,569			25,779
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		30,023			28,973
EQUITY IN EARNINGS OF FRONTLINE		(636	)		(871	)
AMORTIZATION OF INTANGIBLE ASSETS		6,295			8,918
OPERATING INCOME		23,352			20,278
FINANCIAL EXPENSES - net		4,664			6,471
INCOME BEFORE TAXES ON INCOME		18,688			13,807
TAXES ON INCOME		2,845			1,752
SHARES IN LOSS OF EQUITY METHOD INVESTEE		150			100
NET INCOME		15,693			11,955
NET GAIN (LOSS) ATTRIBUTABLE TO THE NON-CONTROLLING INTEREST		(61	)		153
NET INCOME ATTRIBUTABLE TO ORBOTECH LTD.	$	15,754		$	11,801
EARNING PER SHARE ATTRIBUTABLE TO ORBOTECH LTD.:
NET INCOME:
Basic	$	0.36		$	0.28
Diluted	$	0.36		$	0.28
WEIGHTED AVERAGE NUMBER OF SHARES USED IN COMPUTATION OF EARNING PER SHARE - IN THOUSANDS:
Basic		43,186			41,961
Diluted		44,062			42,860

The accompanying notes are an integral part of the condensed financial statements.

F-4

ORBOTECH LTD.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Three months ended March 31,
	2016			2015
	U.S. dollars in thousands
Net income	$	15,693		$	11,955
Other comprehensive income (loss):
Net change in respect of derivative instruments designated for cash flow hedge, net of tax		(62	)		(397	)
Net change in respect to available for sale securities, net of tax		29			70
Total other comprehensive income (loss)		(33	)		(327	)
Total comprehensive income		15,661			11,629
Comprehensive income (loss) attributable to the non-controlling interests		(61	)		153
Total comprehensive income attributable to Orbotech Ltd.	$	15,722		$	11,476

The accompanying notes are an integral part of the condensed financial statements.

F-5

ORBOTECH LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Three months ended March 31,
	2016			2015
	U.S. dollars in thousands
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	15,693		$	11,955
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		10,251			12,660
Compensation relating to equity awards granted to employees and others, net		1,680			889
Decrease in liability for employee rights upon retirement, net		247			176
Long term loans discount amortization		300			120
Deferred financing costs amortization		798			312
Deferred income taxes		(1,214	)		2,334
Amortization of premium and accretion of discount on marketable securities, net		66			50
Equity in earnings of Frontline, net of dividend received		189			636
Other		150			499
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable:
Trade		(4,325	)		(1,668	)
Other		(2,717	)		3,093
Increase (decrease) in accounts payable and accruals:
Trade		1,638			2,311
Deferred income		850			(846	)
Other		(5,744	)		(9,908	)
Decrease (increase) in inventories		(2,130	)		(972	)
Net cash provided by operating activities	$	15,732		$	21,641
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment		(5,757	)		(3,182	)
Withdrawal of bank deposits		6,507			2,976
Purchase of marketable securities		(1,268	)
Redemption of marketable securities		1,157
Investment in equity method investee		(1,000	)		(1,500	)
Decrease (increase) in restricted cash		2,243			(3,244	)
Decrease in funds in respect of employee rights upon retirement		60
Net cash provided by (used in) investing activities	$	1,942		$	(4,950	)

F-6

(Concluded) - 2

ORBOTECH LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Three months ended March 31,
	2016			2015
	U.S. dollars in thousands
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of long-term loans		(25,607	)		(750	)
Employee stock options exercised		2,075			2,152
Net cash provided by (used in) financing activities	$	(23,532	)	$	1,402
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(5,858	)		18,093
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		162,102			136,367
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	156,244		$	154,460

The accompanying notes are an integral part of the condensed financial statements

F-7

ORBOTECH LTD.

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

(unaudited)

NOTE 1 - BASIS OF PRESENTATION

a. General

Orbotech Ltd. (the “Company” or “Orbotech”) is an Israeli company, which, together with its subsidiaries and one joint venture, is principally engaged in the design, development, manufacture, marketing and servicing of cutting-edge solutions designed to enable the production of innovative, next generation electronic products and improve the cost effectiveness of existing and future electronics production processes.

The Company’s products include: direct imaging (“DI”), automated optical inspection (“AOI”), automated optical repair (“AOR”) and production systems used in the manufacture of printed circuit boards (“PCB”s) and other electronic components; AOI, test, repair and process monitoring systems used in the manufacture of flat panel displays (“FPD”s); and etch, physical vapor deposition (“PVD”) and chemical vapor deposition (“CVD”) equipment for use in the manufacture of semiconductor devices (“SD”s) such as micro-electro-mechanical systems (“MEMS”), advanced semiconductor packaging (“Advanced Packaging”), power and radio frequency (“RF”) devices and high brightness light emitting diode (“HBLED”) devices.

Through its subsidiary, Orbotech LT Solar, LLC (“OLTS”), the Company is engaged in the research, development and marketing of products for the deposition of thin film coating of various materials on crystalline silicon photovoltaic wafers for solar energy panels, and through its subsidiary, Orbograph Ltd. (“Orbograph”), in the development and marketing of character recognition solutions to banks, financial and other payment processing institutions.

These unaudited condensed consolidated interim financial statements of Orbotech have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. Accordingly, they do not contain all information and notes required by U.S. GAAP for annual financial statements. In the opinion of management, these unaudited condensed consolidated interim financial statements reflect all adjustments, which include normal recurring adjustments, necessary for a fair statement of the Company’s consolidated financial position as of March 31, 2016, the consolidated results of operations, comprehensive income (loss) and cash flows for the three-month periods ended March 31, 2016 and 2015.

The financial data and other information disclosed in the notes to the condensed consolidated interim financial statements related to these periods are unaudited. The results for the three-month period ended March 31, 2016 are not necessarily indicative of the results to be expected for the year ending December 31, 2016.

These condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s annual report on Form 20-F for the year ended December 31, 2015. The condensed consolidated balance sheet data as of December 31, 2015 was derived from the audited consolidated financial statements for the year ended December 31, 2015, but does not include all disclosures required by U.S. GAAP.

F-8

ORBOTECH LTD.

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (continued)

(Unaudited)

NOTE 1 - BASIS OF PRESENTATION (continued)

b. New accounting pronouncements effective in the three-month period ended March 31, 2016

In April 2015, the FASB issued ASU 2015-03, simplifying the Presentation of Debt Issuance Costs. Accounting Standards Update (“ASU”) 2015-03 requires that debt issuance costs related to a recognized debt liability are presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The company adopted ASU 2015-03 in its consolidated financial statements as of January 1, 2016. The December 31, 2015 unamortized debt issuance costs balance of $5,461,000 was reclassified from non-current assets to long-term loan, net.

c. New accounting pronouncements effective in future periods

(i) In March 2016, the FASB issued ASU 2016-09, Improvement to Employee Share-Based Payment Accounting, an update to the guidance on stock-based compensation. Under the new guidance, all excess tax benefits and tax deficiencies will be recognized in the income statement as they occur. This will replace the current guidance, which requires tax benefits that exceed compensation cost (windfalls) to be recognized in equity. It will also eliminate the need to maintain a “windfall pool” and will remove the requirement to delay recognizing a windfall until it reduces current taxes payable. The new guidance will also change the cash flow presentation of excess tax benefits, classifying them as operating inflows, consistent with other cash flows related to income taxes. Currently, windfalls are classified as financing activities. Also, this will affect the dilutive effects in earnings per share, as there will no longer be excess tax benefits recognized in additional paid-in capital. Currently, excess tax benefits are included in assumed proceeds from applying the treasury stock method when computing diluted EPS. Under the amended guidance, companies will be able to make an accounting policy election to either: (i) continue to estimate forfeitures; or (ii) account for forfeitures as they occur. This updated guidance is effective for annual and interim periods beginning after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the potential impact, if any, of the adoption of the ASU on its consolidated financial statements.

(ii) In May 2014, the FASB issued ASU 2014-09, Revenues from Contracts with Customers, Topic 606 (“Topic 606”), which was a joint project of the FASB and the International Accounting Standards Board to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and International Financial Reporting Standards. Topic 606 provides that an entity should recognize revenue in connection with the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Specifically, an entity is required to apply each of the following steps: (i) identify the contract(s) with the customer; (ii) identify the performance obligations in the contracts; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligation in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The amendments in Topic 606 are effective for annual reporting periods beginning after December 15, 2017, including interim periods within those reporting periods. Early adoption is permitted, but not earlier than 2017 for calendar fiscal year entities. The Company is currently evaluating the potential impact, if any, of the adoption of Topic 606 on its consolidated financial statements.

F-9

ORBOTECH LTD.

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (continued)

(Unaudited)

NOTE 1 - BASIS OF PRESENTATION (continued)

(iii) In March 2016, the FASB issued ASU 2016-08, Principal versus Agent Considerations. The amendment in this update does not modify the underlying principle of the guidance, but rather is intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. When another entity is involved in providing goods or services to a customer an entity is required to determine if the nature of its promise is to provide the specific goods or services itself (that is, the entity is a principal) or to arrange for those goods or services to be provided by the other party (that is, the entity is an agent). The guidance includes indicators to assist an entity in determining whether it acts as a principal or agent in a specified transaction. The amendments in this update are effective for annual reporting periods beginning after December 15, 2017, including interim periods within those reporting periods. Early adoption is permitted, but not earlier than 2017 for calendar fiscal year entities. The Company is currently evaluating the potential impact, but believes that the adoption of this new standard will not have a material impact on its consolidated financial statements.

(iv) In February 2016, the FASB issued ASU 2016-02, Leases, Topic 842 (“Topic 842”). The amendment in Topic 842 introduces a number of changes and simplifications from previous guidance, primarily the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases. Topic 842 retains the distinction between finance leases and operating leases and the classification criteria between the two types remain substantially similar. Also, lessor accounting remains largely unchanged from previous guidance; however, key aspects in Topic 842 were aligned with the revenue recognition guidance in Topic 606. Additionally, Topic 842 defines a lease as a contract, or part of a contract, that conveys the right to control the use of identified asset for a period of time in exchange for considerations. Control over the use of the identified means that the customer has both (a) the right to obtain substantially all of the economic benefits from the use of the asset and (b) the right to direct the use of the asset. The amendments in Topic 842 are effective for annual reporting periods beginning after December 15, 2018, including interim periods within those reporting periods. Early adoption is permitted. The Company is currently evaluating the potential impact of the adoption on its consolidated financial statements.

F-10

ORBOTECH LTD.

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (continued)

(Unaudited)

NOTE 2 - INVENTORIES

	March 31, 2016		December 31, 2015
	$ in thousands
Components:
For manufacturing of systems		50,468		47,328
For servicing of systems		37,053		36,539
		87,521		83,867
Work in process		18,053		19,476
Finished products		29,806		29,907
		135,380		133,250

NOTE 3 - COMMITMENTS AND CONTINGENT LIABILITIES

In June 2012, charges were filed in the Seoul Central District Court of the Republic of Korea (the “Seoul Court”) against the Korean subsidiary of the Company and six employees thereof. These charges, as amended in September 2013, related to the alleged acquisition and misuse of confidential information of certain of the Company’s significant customers in violation of the Korean Act on Prevention of Divulgence and Protection of Industrial Technology (the “ITA”), the Korean Unfair Competition Prevention and Trade Secret Protection Act and the Criminal Code of Korea (the “CC”). The charges included (1) the unlawful acquisition of certain industrial trade secrets related to the production of active matrix OLED panels of Samsung Mobile Display Co., Ltd. and LG Display Co. Ltd., customers of the Company’s Korean subsidiary (the “Customer Technology”), (2) unlawful use of the Customer Technology by preparing certain presentation materials, (3) unlawful divulgence of the Customer Technology to other employees of the Company inside and outside of Korea, (4) breach of trust in office by acquiring and divulging the Customer Technology without the customer’s permission for financial gain, and (5) the Korean subsidiary’s vicarious liability for the conduct of its employees. In December 2013, the Company’s Korean subsidiary and five of its Korean employees were acquitted by the above court on all charges, and one Korean employee was found guilty of certain legal violations and received a criminal fine of approximately 10 thousands dollars. Following such acquittal, the prosecutor filed a notice of appeal with respect to all aspects of the decision issued by the court. The prosecutor appealed the court’s decision with respect to all the defendants on the grounds that the court’s decision contained errors of fact, errors of law and an unjust sentence. The employee of the Company’s Korean subsidiary who was found guilty of certain legal violations and who received a criminal fine also appealed the court’s decision issued in respect of him. In December 2014, the appellate panel of the Seoul Court denied all appeals and reaffirmed the trial court’s decision. Following this decision, a notice of appeal was filed by the prosecutor with respect to all aspects of the decision and with respect to all defendants. The Company’s Korean subsidiary and its employees did not appeal the appellate panel’s decision. On the basis of information and assessments provided by its legal advisors the Company is unable to estimate the outcome (expected in mid-to-late 2016) of this matter and has therefore not recorded any liability in respect of this matter. The Company and its Korean subsidiary may also become subject to civil actions brought by third parties, including the Company’s customers, which may result in monetary judgments, settlements or loss of business or which may require the Company to change its business model.

F-11

ORBOTECH LTD.

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (continued)

(Unaudited)

NOTE 4 - FINANCIAL INSTRUMENTS AND RISK MANAGEMENT:

a. General

The Company operates internationally, which gives rise to exposure to market risks, mainly from changes in foreign exchange rates. The Company uses financial instruments and derivatives in order to limit its exposure to risks arising from such changes.

The Company is exposed to losses in the event of non-performance by counterparties to financial instruments; however, as the counterparties are major Israeli, European and United States banks, the Company does not expect any counterparties to fail to meet their obligations. The Company does not require or place collateral with respect to these financial instruments. The Company does not hold or issue derivatives for trading purposes.

b. Derivative instruments

The Company enters into various types of foreign exchange derivatives in managing its foreign exchange risks. The notional amounts of these derivatives as of March 31, 2016 and December 31, 2015 were as follows:

	March 31, 2016		December 31, 2015
	$ in millions
Forward exchange contracts for conversion of:
Euros into Dollars		22.1		16.6
Japanese Yen into Dollars		100.2		63.7
Dollars into NIS		23.6		17.9
Korean Won into Dollars		18.1		18.2
Chinese Yuan into Dollars		15.2		15.6
Taiwan Dollars into Dollars		20.3		20.5
Dollars into British Pounds		115.8		90.5

F-12

ORBOTECH LTD.

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (continued)

(Unaudited)

NOTE 4 - FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (continued):

For derivative financial instruments that are designated and qualify as a cash flow hedge, the effective portions of changes in fair value of the derivative are recorded in other comprehensive income, as “gains (losses) in respect of derivative instruments designated for cash flow hedge, net of related tax” and are recognized in the statement of operations when the hedged item affects earnings. Ineffective portions of changes in the fair value of cash flow hedges are recognized immediately in the statement of operations within “financial expenses - net”. Changes in the fair value of other derivatives are recognized in the statement of operations within “financial expenses - net”.

Cash flows from derivatives that qualify as a cash flow hedge are recognized in the statement of cash flows in the same category as that of the hedged item.

c. Disclosure of Fair Value of financial instruments:

The fair value of financial instruments included in working capital is usually close or identical to their carrying amounts. The fair value of non-current other receivables and long-term liabilities, including long-term loans, also approximates the carrying amounts, since they bear interest at rates close to prevailing market rates.

The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis at March 31, 2016 and December 31, 2015, consistent with the fair value hierarchy provisions:

	Level 1		Level 2		Total
	$ in thousands
March 31, 2016:
Assets:
Marketable securities		6,120				6,120
Derivative assets designated as hedging instruments				201		201
Derivative assets not designated as hedging instruments				114		114
Liabilities:
Derivative liabilities designated as hedging instruments				1,893		1,893
Derivative liabilities not designated as hedging instruments				2,306		2,306
December 31, 2015:
Assets:
Marketable securities		6,046				6,046
Derivative assets not designated as hedging instruments				288		288
Liabilities:
Derivative liabilities designated as hedging instruments				1,486		1,486
Derivative liabilities not designated as hedging instruments				457		457

F-13

ORBOTECH LTD.

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (continued)

(Unaudited)

NOTE 4 - FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (continued):

1. Level 1 - Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access.

2. Level 2 - Valuations based on quoted prices in markets that are not active but for which all significant inputs are observable, either directly or indirectly. Derivatives, as described in Note 4b above, are of value primarily based on observable inputs including interest rate curves and both forward and spot prices for currencies and the Company is therefore able to perform independent verification in order to validate quotations obtained.

3. Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. These estimated fair values are subject to uncertainties that are difficult to predict.

NOTE 5 – LONG-TERM LOAN

	March 31, 2016		December 31, 2015
	$ in thousands
Long-term loans		212,463		237,770
Less - deferred financing cost		4,663		5,461
Less - current maturities		13,981		13,937
Net long-term loan		193,819		218,372

The average interest rate of the long-term loan was 5% in all periods presented.

The Credit Agreement requires the Company and its subsidiaries on a consolidated basis to maintain compliance with a minimum liquidity amount (as defined) of $40 million tested as of the last day of each month, and places certain restrictions on the ability of the Company or certain of the Company’s subsidiaries to, among other things, incur debt and liens; merge, consolidate or liquidate; make investments; dispose of assets; enter into sale and leaseback transactions; pay dividends and make other restricted payments; undertake transactions with affiliates; enter into restrictive agreements on their ability to grant liens, make dividends and other distributions; amend material documents, change fiscal periods; and designate unrestricted subsidiaries. As of March 31, 2016, the Company was in compliance with all covenants in the Credit Agreement.

F-14

ORBOTECH LTD.

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (continued)

(Unaudited)

NOTE 6 - SUPPLEMENTARY BALANCE SHEET INFORMATION:

a. Accounts payable and accruals - other

	March 31, 2016		December 31, 2015
	$ in thousands
Employees and employee institutions		28,641		33,784
Government departments and agencies		18,469		21,922
Derivative liabilities		4,199		1,943
Accrued expenses		39,149		37,270
Sundry		—		11
		90,458		94,930

b. Deferred income

	March 31, 2016		December 31, 2015
	$ in thousands
Deferred income relating to warranty and installations commitments		23,678		22,221
Deferred income		6,454		7,061
		30,132		29,282

F-15

ORBOTECH LTD.

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (continued)

(Unaudited)

NOTE 7 – SEGMENT AND GEOGRAPHICAL INFORMATION:

a. Financial data relating to reportable segments:

	Production solutions for the electronics industry		Solar energy			Recognition software			Total
	$ in thousands
Three months ended March 31, 2016:
Revenues from unaffiliated customers:
Sales of products		138,022		1,345			1,579			140,946
Services rendered		47,101		812			1,568			49,481
Total revenues		185,123		2,157			3,147			190,427
Operating income (loss)		*23,907		(406	)		(149	)		23,352
Assets (At the end of period)		986,657		7,850			11,125			1,005,632
Expenditures for segment assets		5,709					48			5,757
Depreciation and amortization		10,206					45			10,251
Three months ended March 31, 2015:
Revenues from unaffiliated customers:
Sales of products		125,233		4,340			1,769			131,342
Services rendered		51,563		323			1,556			53,442
Total revenues		176,796		4,663			3,325			184,784
Operating income (loss)		*19,614		233			431			20,278
Assets (At the end of period)		995,374		8,358			11,081			1,014,814
Expenditures for segment assets		3,182								3,182
Depreciation and amortization		12,637					23			12,660

* Including share in net income of Frontline

1. Following is a reconciliation of the operating income of the reportable segments to the data included in the statements of operations:

	Three months ended March 31,
	2016		2015
	$ in thousands
Operating income:
Total operating income of reportable segments		23,352		20,278
Financials expenses, net		4,664		6,471
Income before taxes on income		18,688		13,807

F-16

ORBOTECH LTD.

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (continued)

(Unaudited)

NOTE 7 – SEGMENT AND GEOGRAPHICAL INFORMATION (continued):

2. Following is a reconciliation of the assets of the reportable segments to the data included in the consolidated balance sheets:

	Three months ended March 31,
	2016		2015
	$ in thousands
Total assets of reportable segments at end of year		1,005,632		1,014,814
Assets not allocated to segments		25,628		23,109
Consolidated assets at end of year		1,031,260		1,037,923

b. Geographical information:

	Three months ended March 31,
	2016		2015
	$ in thousands
Revenues - classified by geographical area (based on the location of customers):
China		59,727		53,030
Taiwan		54,500		30,700
North America		23,700		32,786
Korea		13,900		25,603
Europe		12,400		27,020
Japan		12,100		5,505
Other (*)		14,100		10,140
Total revenues		190,427		184,784

(*) mainly in the Far East.

F-17

ORBOTECH LTD.

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (continued)

(Unaudited)

NOTE 7 – SEGMENT AND GEOGRAPHICAL INFORMATION (continued):

Revenues by operating segments are as follows:

	Three months ended March 31,
	2016		2015
	$ in thousands
PCB		67,987		57,996
FPD		44,660		57,374
SD		72,475		61,425
OTHER		5,305		7,989
Total revenues		190,427		184,784

NOTE 8 – MAJOR CUSTOMERS

Revenues recognized from major customers are as below:

	Three months ended March 31,
	2016	2015
	% of revenues
Customer A	13.5%		*
Customer B	10.3%		*

* Less than 10% of the Company’s revenues

All such revenues are related to the Production Solutions for the Electronics Industry segment.

No customer accounted for more than 10% of the Company’s total revenues during the three months ended March 31, 2015 and the year ended December 31, 2015.

F-18

ORBOTECH LTD.

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (continued)

(Unaudited)

NOTE 9- FINANCIAL EXPENSES – NET

	Three months ended March 31,
	2016			2015
	$ in thousands
Income:
Interest:
In respect of bank deposits and marketable securities		167			132
Expenses:
Interest:
Term loans		4,127			4,178
Costs relating to factoring of letters of credits and promissory notes		105			60
Marketable securities and bonds premium/discount amortization		66			50
Foreign currency exchange losses - net		346			1,986
Bank charges and other		187			329
		4,831			6,603
		(4,664	)		(6,471	)

NOTE 10– EARNINGS PER SHARE

Following are data relating to the weighted average number of shares for the purpose of computing earnings per share:

	Three months ended March 31,
	2016		2015
	$ in thousands
Weighted average number of shares issued and outstanding (net of treasury shares) - used in computation of basic earnings per share		43,186		41,961
Add - incremental shares from assumed exercise of options and RSUs		876		899
Weighted average number of shares used in computation of diluted earnings per share		44,062		42,860

Diluted earnings per share for the three-month period ended March 31, 2016 and 2015 do not reflect “out-of-the-money” options to purchase aggregate amounts of 0 and 26,460 Ordinary Shares, respectively, due to their anti-dilutive effect.

F-19

ORBOTECH LTD.

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (continued)

(Unaudited)

NOTE 11– RELATED PARTIES

	Three months ended March 31,
	2016		2015
	$ in thousands
Related parties transactions included in:
Cost of goods sold		84		160
Selling, general and administrative		685		768

	March 31,		December 31,
	2016		2015
	$ in thousands
Balances with related parties (included in trade payables)		3,118		5,553

F-20