YAVNE, ISRAEL -- Orbotech lowered its full-year revenue guidance by some 10% to 14% even while the AOI maker struggles to contain accusations that it sold customers' secrets to competitors.

The company said it still expects to meet its previously announced first-half revenue of approximately $200 million. However, results through year-end could be hampered by weaker demand for flat panel displays.

Orbotech had sales of $565 million in 2011, and had previously forecast revenue of $500 million for 2012. It now expects revenue of $430 million to $450 million for the year.

The forecast drop, however, is taking a backseat to the unfolding scandal in Korea, where the company is under investigation for allegedly stealing OLED secrets at customers LG and Samsung and selling them to BOE and others.

In a statement, Orbotech "The company has recorded legal and other expenses in connection with the previously announced investigation in Korea in the second quarter and expects to record additional expenses in the second half of the year. As a result of this and the revised revenue expectations, the company is withdrawing all of its previously announced 2012 earnings per share guidance, which should no longer be relied upon."

The company acknowledged it has received notification of charges filed by government officials in Seoul related to the alleged acquisition and misuse of confidential customer information. The company’s Korean subsidiary and six local employees have been indicted and the investigation is ongoing. Orbotech said it is cooperating with Korean authorities, and called the allegations "groundless."