YAVNE, ISRAEL -- Orbotech today raised its full-year guidance after turning in strong third-quarter sales and net profits.

For the period ended Sept. 30, revenues totaled $158.1 million, up 7.8% sequentially and 42% from a year ago. GAAP net income was $16.1 million, reversing last year's loss of $5.5 million, and up 23% sequentially. The results included an impairment charge of $1.5 million (net of taxes) relating to a write-down of the remaining goodwill and intellectual property of Orbotech Medical Denmark A/S.

Sales of equipment to the PCB industry were $42.4 million, up from $41.4 million in the second quarter and $20.3 million last year.

Demand for smartphones and other handheld devices has resulted in better-than-expected orders for the company’s PCB inspection and production machines. As a result, Orbotech raised its full year guidance to $525 million from $500 million to $510 million.

In a statement, president and chief executive Rani Cohen said: “As we approach 2011, we are encouraged by the current healthy PCB and FPD business environments combined with our strong product portfolio and industry leadership position."

The company completed the quarter with cash, cash equivalents and marketable securities of approximately $176.3 million and debt of $136 million, compared with cash, cash equivalents and marketable securities of approximately $162.7 million and debt of $144 million at the end of the June quarter.