ORBOTECH LTD.

RECONCILIATION OF GAAP TO NON-GAAP RESULTS

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

 (Unaudited)

Nine months ended

Three months ended

September 30,

September 30,

2018

2017

2018

2017

Reported operating income on GAAP basis

118,075

94,671

37,404

44,037

Equity-based compensation expenses

10,015

6,982

3,822

2,480

Amortization of intangible assets

19,113

18,635

6,372

6,371

Transaction cost pending merger with KLA

4,706

944

Non-GAAP operating income

$151,909

$120,288

$48,542

$52,888

Reported net income attributable to Orbotech Ltd. on GAAP basis

$95,609

$76,504

$29,224

$36,554

Equity-based compensation expenses

10,015

6,982

3,822

2,480

Amortization of intangible assets

19,113

18,635

6,372

6,371

Tax effect of non-GAAP adjustments

(3,383)

(2,244)

(1,083)

(748)

Transaction cost pending merger with KLA

4,706

944

Non-GAAP net income

$126,060

$99,877

$39,279

$44,657

GAAP earnings per diluted share

$1.95

$1.57

$0.59

$0.75

Non-GAAP earnings per diluted share

$2.57

$2.05

$0.79

$0.91

Shares used in earnings per diluted share computation - in thousands

49,037

48,812

49,502

48,903