Page
|
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F-3
|
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F-4
|
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F-5
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F-6
|
|
F-7
|
|
F-8 - F-15
|
June 30,
2020
|
December 31,
2019
|
|||||||
Unaudited
|
Audited
|
|||||||
ASSETS
|
||||||||
Current assets
|
||||||||
Cash and cash equivalents
|
$
|
25,885
|
$
|
31,748
|
||||
Short-term interest-bearing bank deposits
|
187,535
|
154,533
|
||||||
Trade accounts receivable, net
|
44,457
|
51,603
|
||||||
Inventories
|
56,584
|
48,362
|
||||||
Other current assets
|
12,002
|
16,685
|
||||||
Total current assets
|
326,463
|
302,931
|
||||||
Non-Current assets
|
||||||||
Interest-bearing bank deposits
|
2,804
|
2,813
|
||||||
Restricted interest-bearing bank deposits
|
2,000
|
2,000
|
||||||
Deferred tax assets
|
5,100
|
4,554
|
||||||
Other long-term assets
|
381
|
437
|
||||||
Severance pay funds
|
1,181
|
1,210
|
||||||
Right of-use assets
|
27,555
|
28,256
|
||||||
Property and equipment, net
|
31,489
|
30,566
|
||||||
Intangible assets, net
|
6,310
|
7,562
|
||||||
Goodwill
|
20,114
|
20,114
|
||||||
Total non-current assets
|
96,934
|
97,512
|
||||||
TOTAL ASSETS
|
$
|
423,397
|
$
|
400,443
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
Current liabilities
|
||||||||
Trade accounts payable
|
$
|
21,716
|
$
|
20,706
|
||||
Deferred revenues
|
1,165
|
2,256
|
||||||
Operating lease current liabilities
|
1,935
|
2,236
|
||||||
Other current liabilities
|
23,161
|
21,751
|
||||||
Total current liabilities
|
47,977
|
46,949
|
||||||
Non-Current liabilities
|
||||||||
Accrued severance pay
|
2,119
|
2,120
|
||||||
Operating lease long-term liabilities
|
30,891
|
31,077
|
||||||
Other long-term liability
|
6,448
|
5,758
|
||||||
Total non-current liabilities
|
39,458
|
38,955
|
||||||
TOTAL LIABILITIES
|
87,435
|
85,904
|
||||||
SHAREHOLDERS’ EQUITY
|
||||||||
Ordinary shares, NIS 0.01 par value - Authorized 40,000,000 at June 30, 2020 (unaudited) and December 31, 2019; Issued and Outstanding 28,091,570, and 28,005,617 at
June 30, 2020 (unaudited) and December 31, 2019, respectively
|
74
|
74
|
||||||
Additional paid-in capital
|
121,213
|
120,737
|
||||||
Accumulated other comprehensive income
|
608
|
15
|
||||||
Retained earnings
|
214,067
|
193,713
|
||||||
Total shareholders’ equity
|
335,962
|
314,539
|
||||||
Total liabilities and shareholders’ equity
|
$
|
423,397
|
$
|
400,443
|
Six Months Ended June 30
|
||||||||
2 0 2 0
|
2 0 1 9
|
|||||||
Revenues:
|
||||||||
Products
|
$
|
92,822
|
$
|
81,462
|
||||
Services
|
30,786
|
26,315
|
||||||
Total revenues
|
123,608
|
107,777
|
||||||
Cost of revenues:
|
||||||||
Products
|
35,190
|
32,104
|
||||||
Services
|
17,475
|
15,979
|
||||||
Total cost of revenues
|
52,665
|
48,083
|
||||||
Gross profit
|
70,943
|
59,694
|
||||||
Operating expenses:
|
||||||||
Research and development, net
|
24,305
|
24,238
|
||||||
Sales and marketing
|
13,826
|
13,787
|
||||||
General and administrative
|
8,364
|
4,906
|
||||||
Amortization of intangible assets
|
1,252
|
1,312
|
||||||
Total operating expenses
|
47,747
|
44,243
|
||||||
Operating income
|
23,196
|
15,451
|
||||||
Financing income, net
|
1,415
|
1,365
|
||||||
Income before taxes on income
|
24,611
|
16,816
|
||||||
Income tax expenses
|
4,257
|
2,592
|
||||||
Net income
|
20,354
|
14,224
|
||||||
Earnings per share:
|
||||||||
Basic
|
$
|
0.73
|
$
|
0.51
|
||||
Diluted
|
$
|
0.70
|
$
|
0.50
|
||||
Shares used in calculation of earnings per share:
|
||||||||
Basic (in thousands)
|
28,037
|
27,898
|
||||||
Diluted (in thousands)
|
28,890
|
28,234
|
Six Months Ended June 30
|
||||||||
2 0 2 0
|
2 0 1 9
|
|||||||
Net income
|
$
|
20,354
|
$
|
14,224
|
||||
Other comprehensive income ("OCI") related to:
|
||||||||
Unrealized gain from cash flow hedges
|
641
|
218
|
||||||
Less: reclassification adjustment for net gain (loss) included in net income
|
(48
|
)
|
15
|
|||||
Other comprehensive income
|
593
|
233
|
||||||
Total comprehensive income
|
$
|
20,947
|
$
|
14,457
|
Accumulated
|
||||||||||||||||||||||||
Ordinary
|
Additional
|
Other
|
Total
|
|||||||||||||||||||||
Shares
|
Paid-in
|
Comprehensive
|
Retained
|
Shareholders’
|
||||||||||||||||||||
Number
|
Amount
|
Capital
|
Income (Loss)
|
Earnings
|
Equity
|
|||||||||||||||||||
Balance as of January 1, 2019
|
27,917,505
|
$
|
74
|
$
|
122,312
|
$
|
(188
|
)
|
$
|
158,542
|
$
|
280,740
|
||||||||||||
Issuance of shares upon exercise of options
|
66,823
|
(*
|
)
|
272
|
-
|
-
|
272
|
|||||||||||||||||
Issuance of shares upon vesting of RSU
|
20,123
|
(*
|
)
|
(*
|
)
|
-
|
-
|
-
|
||||||||||||||||
Share based compensation
|
-
|
-
|
2,298
|
-
|
-
|
2,298
|
||||||||||||||||||
Share repurchase at cost
|
(276,747
|
)
|
(*
|
)
|
(7,159
|
)
|
-
|
-
|
(7,159
|
)
|
||||||||||||||
Other comprehensive income
|
-
|
-
|
-
|
233
|
-
|
233
|
||||||||||||||||||
Net income
|
-
|
-
|
-
|
-
|
14,224
|
14,224
|
||||||||||||||||||
Balance as of June 30, 2019
|
27,727,704
|
74
|
117,723
|
45
|
172,766
|
290,608
|
||||||||||||||||||
Balance as of January 1, 2020
|
28,005,617
|
74
|
120,737
|
15
|
193,713
|
314,539
|
||||||||||||||||||
Issuance of shares upon exercise of options
|
149,302
|
(*
|
)
|
253
|
-
|
-
|
253
|
|||||||||||||||||
Issuance of shares upon vesting of RSU
|
16,507
|
(*
|
)
|
(*
|
)
|
-
|
-
|
-
|
||||||||||||||||
Share based compensation
|
-
|
2,772
|
-
|
-
|
2,772
|
|||||||||||||||||||
Share repurchase at cost
|
(79,856
|
)
|
(*
|
)
|
(2,549
|
)
|
-
|
-
|
(2,549
|
)
|
||||||||||||||
Other comprehensive income
|
-
|
-
|
-
|
593
|
-
|
593
|
||||||||||||||||||
Net income
|
-
|
-
|
-
|
-
|
20,354
|
20,354
|
||||||||||||||||||
Balance as of June 30, 2020
|
28,091,570
|
$
|
74
|
$
|
121,213
|
$
|
608
|
$
|
214,067
|
$
|
335,962
|
Six Months Ended June 30
|
||||||||
2 0 2 0
|
2 0 1 9
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
20,354
|
$
|
14,224
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation
|
2,830
|
2,761
|
||||||
Amortization of intangible assets
|
1,252
|
1,313
|
||||||
Amortization of right-of-use assets
|
701
|
1,396
|
||||||
Share-based compensation
|
2,772
|
2,298
|
||||||
Change in deferred tax assets, net
|
(546
|
)
|
(344
|
)
|
||||
Increase in accrued severance pay, net
|
28
|
27
|
||||||
Decrease in trade accounts receivables, net
|
7,146
|
5,453
|
||||||
Increase in inventories
|
(8,470
|
)
|
(7,855
|
)
|
||||
Increase in other current and long-term assets
|
4,739
|
2,580
|
||||||
Increase (decrease) in trade accounts payables
|
665
|
(2,126
|
)
|
|||||
Increase (decrease) in other current and long-term liabilities
|
2,206
|
(4,579
|
)
|
|||||
Increase (decrease) in short term deferred revenues
|
(1,091
|
)
|
1,330
|
|||||
Net cash provided by operating activities
|
32,586
|
16,478
|
||||||
Cash flows from investment activities:
|
||||||||
Increase in short-term and long-term interest-bearing bank deposits
|
(32,993
|
)
|
6,075
|
|||||
Purchase of property and equipment
|
(3,160
|
)
|
(7,693
|
)
|
||||
Net cash used in investing activities
|
(36,153
|
)
|
(1,618
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Purchases of treasury shares
|
(2,549
|
)
|
(7,159
|
)
|
||||
Shares issued upon exercise of options
|
253
|
272
|
||||||
Net cash used in financing activities
|
(2,296
|
)
|
(6,887
|
)
|
||||
Increase (decrease) in cash and cash equivalents
|
(5,863
|
)
|
7,973
|
|||||
Cash and cash equivalents - beginning of year
|
31,748
|
24,877
|
||||||
Cash and cash equivalents - end of year
|
$
|
25,885
|
$
|
32,850
|
||||
Supplemental disclosure of cash flow information:
|
||||||||
Cash paid during the period for income taxes
|
$
|
1,695
|
$
|
2,401
|
NOTE 1 | - |
GENERAL
|
NOTE 2 | - |
SIGNIFICANT ACCOUNTING POLICIES
|
A. |
Principles of Consolidation and Basis of Presentation
|
B. |
Use of Estimates in the Preparation of Financial Statements
|
NOTE 2 | - |
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
|
C. |
Revenue Recognition
|
D. |
Share-Based Compensation
|
Six Months Ended June 30
|
||||||||
2 0 2 0
|
2 0 1 9
|
|||||||
Risk-free interest rate
|
0.393%
|
|
2.045%
|
|
||||
Expected life of options
|
5.04 years
|
5.07 years
|
||||||
Expected volatility
|
36.60%
|
|
32.71%
|
|
||||
Expected dividend yield
|
0%
|
|
0%
|
|
NOTE 2 | - |
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
|
E. |
Earnings per Share
|
F. |
Fair Value Measurements
|
NOTE 2 | - |
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
|
G. |
New Accounting Pronouncements
|
NOTE 3 | - |
INVENTORIES
|
A. |
Composition:
|
June 30,
2020
|
December 31,
2019
|
|||||||
Raw materials
|
$
|
14,230
|
$
|
14,428
|
||||
Work in process
|
29,342
|
25,831
|
||||||
Finished goods
|
13,012
|
8,103
|
||||||
$
|
56,584
|
$
|
48,362
|
B. |
In the six months ended June 30, 2020 and June 30, 2019, the Company wrote down inventories in a total amount of $2,899 and $2,178, respectively.
|
NOTE 4 | - |
SHAREHOLDERS’ EQUITY
|
A. |
Rights of Shares:
|
B. |
Share Repurchase:
|
C. |
Equity Based Incentive Plans:
|
Six Months Ended June 30
|
||||||||
2 0 2 0
|
2 0 1 9
|
|||||||
Cost of Revenues:
|
||||||||
Product
|
375
|
264
|
||||||
Service
|
159
|
193
|
||||||
Research and Development
|
941
|
948
|
||||||
Sales and Marketing
|
673
|
473
|
||||||
General and Administration
|
624
|
421
|
||||||
Total
|
$
|
2,772
|
$
|
2,299
|
NOTE 5 | - |
SHAREHOLDERS’ EQUITY (Cont.)
|
June 30, 2020
|
||||||||
Share
|
Weighted Average
|
|||||||
Options
|
Exercise Price
|
|||||||
Outstanding - beginning of year
|
1,219,909
|
19.57
|
||||||
Granted
|
32,270
|
45.92
|
||||||
Exercised
|
(149,302
|
)
|
13.64
|
|||||
Expired and forfeited
|
(79,320
|
)
|
19.29
|
|||||
Outstanding - period end
|
1,023,557
|
21.29
|
||||||
Options exercisable at period end
|
527,274
|
16.87
|
Range of Exercise Prices
|
Number Outstanding
|
Weighted Average Remaining Contractual Life
|
Weighted Average Exercise Price
|
Number Exercisable
|
Weighted Average Exercise Price
|
|||||||||||||||||
(US dollars)
|
(in years)
|
(US dollars)
|
(US dollars)
|
|||||||||||||||||||
8.79-11.60
|
222,896
|
2.74
|
11.09
|
182,474
|
11.04
|
|||||||||||||||||
11.61-22.96
|
229,308
|
2.86
|
14.81
|
167,490
|
12.58
|
|||||||||||||||||
22.97-25.78
|
166,972
|
4.59
|
24.81
|
55,527
|
24.88
|
|||||||||||||||||
25.79-27.09
|
145,018
|
5.43
|
26.19
|
35,000
|
26.44
|
|||||||||||||||||
27.10-48.20
|
259,363
|
5.11
|
30.80
|
86,783
|
28.41
|
|||||||||||||||||
1,023,557
|
21.29
|
527,274
|
16.87
|
NOTE 5 | - |
SHAREHOLDERS’ EQUITY (Cont.)
|
Number of RSUs
|
Weighted average grant date fair value (USD)
|
|||||||
Unvested at December 31, 2019
|
387,218
|
26.91
|
||||||
Granted
|
29,880
|
44.69
|
||||||
Vested
|
(16,507
|
)
|
22.08
|
|||||
Canceled
|
(3,942
|
)
|
29.05
|
|||||
Unvested at June 30, 2020
|
396,649
|
28.43
|
NOTE 6 | - |
COMMITMENTS AND CONTINGENCIES
|
NOTE 7 | - |
GEOGRAPHIC AREAS AND MAJOR CUSTOMERS
|
A. |
Sales by Geographic Area (as Percentage of Total Sales):
|
Six Months Ended June 30
|
||||||||
2 0 2 0
|
2 0 1 9
|
|||||||
%
|
%
|
|||||||
Taiwan, R.O.C.
|
35
|
26
|
||||||
Korea
|
30
|
28
|
||||||
China
|
16
|
17
|
||||||
USA
|
12
|
17
|
||||||
Other
|
7
|
12
|
||||||
Total
|
100
|
100
|
B. |
Sales by Major Customers (as Percentage of Total Sales):
|
Six Months Ended June 30
|
||||||||
2 0 2 0
|
2 0 1 9
|
|||||||
%
|
%
|
|||||||
Customer A
|
31
|
19
|
||||||
Customer B
|
29
|
17
|
||||||
Customer C
|
7
|
17
|
||||||
Customer D
|
7
|
12
|
NOTE 7 | - |
GEOGRAPHIC AREAS AND MAJOR CUSTOMERS (Cont.)
|
C. |
Long-lived assets by geographic location:
|
June 30,
2020
|
December 31,
2019
|
|||||||
%
|
%
|
|||||||
Israel
|
85
|
85
|
||||||
US
|
14
|
14
|
||||||
Other
|
1
|
1
|
||||||
Total long-lived assets (*)
|
100
|
100
|
NOTE 8 | - |
FINANCIAL INSTRUMENTS
|
A. |
Hedging Activities
|
B. |
Derivative Instruments
|
Derivative Assets Reported in
Other Current Assets
|
Derivative Liabilities Reported in Other Current Liabilities
|
|||||||||||||||
June 30,
2020
|
December 31,
2019
|
June 30,
2020
|
December 31,
2019
|
|||||||||||||
Derivatives designated as hedging instruments in cash flow hedge
|
$
|
593
|
$
|
68
|
$
|
-
|
$
|
-
|
||||||||
Six Months Ended June 30
|
||||||||
2 0 2 0
|
2 0 1 9
|
|||||||
Loss (gain) on derivative instruments
|
$
|
48
|
$
|
(15
|
)
|
NOTE 9 | - |
Recent event
|