YAVNE, ISRAEL – Orbotech reported a third-quarter net loss of $43.1 million on revenues of $94.8 million. It also announced plans to drop out of the PCB AOI equipment business and reduce its workforce by 15%.

For the September period, sales dropped 10% sequentially, even though they were up 15% year-over-year. The company, which makes AOI equipment for bare boards and assemblies, reported net income of $5.3 million in the second quarter and net income of $400,000 last year.

The company took one-time charges of $38.5 million to write-down of substantially all the goodwill and intellectual property of Orbotech Medical Denmark, $5.4 million to write-off remaining goodwill within its PCB assembly business, and $3.7 million in restructuring charges. An additional restructuring charge will be recorded in the fourth quarter, the company said.

Bare board equipment sales were $27.7 million in the quarter, down 25.5% over last year. Flat panel display inspection equipment sales rose 339% to $31.7 million. Assembled PCB equipment sales were down 31.6% to $3.9 million.

Starting in the third quarter, the company began scaling back its activities in the assembled PCB business. By yearend, the company will no longer develop and market assembled PCB equipment, but will continue to service its installed base of products.

Orbotech also announced plans to cut about 15% of its worldwide workforce in the third and fourth quarters, a 15% reduction in corporate management salaries, smaller reductions in other salaries, and other cost-cutting measures.

At quarter’s end, Orbotech had cash and cash equivalents of about $181.6 million, down about $14 million sequentially.