YAVNE, ISRAEL – Orbotech Ltd., maker of automated inspection systems for PCBs and flat panel displays, has cut its 2007 revenue outlook and posted a lower-than-expected first-quarter profit of $5.6 million, compared with earnings of $14.1 million year-over-year. The company cites the delay in pick up of the flat panel display market.

Revenue in the first quarter fell to $86.1 million from $101.4 million a year ago. The company now expects 2007 revenue of about $380 to $390 million, chief executive Rani Cohen said – $10 to $20 million less than previously projected. However, the company expects second-quarter revenue to increase slightly from the first quarter.

Sales of equipment to the PCB industry fell to $35.5 million from $40.8 million year-over-year, while sales of flat panel display inspection equipment slipped to $19.1 million from $30 million, said Orbotech.