NEW YORK -- Orbotech today revealed a revenue target exceeding $1.25 billion by 2020, resulting from organic growth opportunities driven by electronics megatrends such as connectivity (5G), automotive, artificial intelligence (AI), augmented reality (AR) and virtual reality (VR).

The new mid-term financial model was unveiled at the company's investor day in New York.

"In late 2014, we presented our current financial model and established revenue goals that we are pleased to announce we met in three years," said Asher Levy, CEO of Orbotech. "We are now introducing Orbotech's 2020 financial model, which reflects the Company's potential organic growth from the $900 million revenue target that we set in 2014, to over $1.25 billion by 2020. We believe that we will achieve this target through our technological leadership, outstanding yield-enhancing and process-enabling solutions and customer service, and because we are uniquely positioned to leverage tremendous market growth opportunities."

Under the 2020 financial model, revenues are planned to exceed $1.25 billion by 2020, with gross margins of 50%, research and development investment of 12%-14%, adjusted EBITDA margin of 27%-29% and non-GAAP net income margin of 21%-23%. For more information about these non-GAAP metrics, see below under "Non-GAAP Financial Measures."

Orbotech's third quarter results, which were announced Nov. 1, marked another record quarter for the Company in revenues and profitability metrics. Orbotech is capitalizing on the underlying strength of the industries served and is leveraging its technological and operational excellence to outperform the competition.

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