ON TRACK INNOVATIONS
LTD.
(Name of Registrant)
Z.H.R. Industrial Zone, P.O. Box 32, Rosh-Pina, Israel, 12000
(Address of Principal
Executive Office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
If Yes is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):
6-K ITEM
This report on Form 6-K is
incorporated by reference into On Track Innovations Ltd.s Registration Statement on
Form F-3 (Registration No. 333-111770), initially filed with the Securities and Exchange
Commission (the Commission) on January 8, 2004, its Registration Statement on
Form F-3 (Registration No. 333-115953), filed with the Commission on May 27, 2004, its
Registration Statement on Form F-3 (Registration No. 333-121316), filed with the
Commission on December 16, 2004, its Registration Statement on Form F-3 (Registration No.
333-127615), initially filed with the Commission on August 17, 2005, its Registration
Statement on Form S-8 (Registration No. 333-128106), filed with the Commission on
September 6, 2005, its Registration Statement on Form F-3 (Registration No. 333-130324),
filed with the Commission on December 14, 2005, its Registration Statement on Form F-3
(Registration No. 333-135742), filed with the Commission on July 13, 2006, its
Registration Statement on Form S-8 (Registration No. 333-140786) filed with the Commission
on February 20, 2007, its Registration Statement on Form F-3 (Registration No.
333-142320), filed with the Commission on April 24, 2007, its Registration Statement on
Form S-8 (Registration No. 333-149034) filed with the Commission on February 4, 2008, its
Registration Statement on Form S-8 (Registration No. 333-149575), filed with the
Commission on March 6, 2008 and its Registration Statement on Form F-3 (Registration No.
333-153667), filed with the Commission on September 25, 2008.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
ON TRACK INNOVATIONS LTD. (Registrant) By: /s/ Oded Bashan Oded Bashan Chief Executive Officer and Chairman |
Date: August 26, 2009
2
![]() |
Press Release |
| Revenues of $16.9 million |
| Gross margin increased to 46% |
| GAAP net loss decreased by 29% compared to the first half of 2008 |
Fort Lee, NJ August 25, 2009 On Track Innovations Ltd. (OTI) (NASDAQ: OTIV), a global leader in contactless microprocessor-based smart card solutions for homeland security, payments, petroleum payments and other applications, today announced its consolidated financial results for the first half ended June 30, 2009. Following are various financial measures that compare the first half of 2009 to the first half of 2008.
| Total revenues were $16.9 million, a 17% decrease from last year. |
| Gross margin increased to 46% vs. 36% last year. |
| Gross profit was $7.7 million, a 6% increase compared to $7.2 million last year. |
| Non-GAAP operating expenses were $13.8 million, a 5% decrease compared to $14.5 million last year. GAAP operating expenses were $16.3 million, a 15% decrease compared to $19.1 million last year. |
| Non-GAAP operating loss was $6.1 million, a 17% decrease compared to $7.3 million last year. GAAP operating loss was $8.6 million, a 28% decrease compared to $11.8 million last year. |
| Non-GAAP net loss was $6.4 million, a 20% decrease compared to $8.0 million last year. GAAP net loss was $8.9 million, a 29% decrease compared to $12.5 million last year. |
| Cash, cash equivalents and short term investments were $21.9 million. |
Oded Bashan, Chairman and Chief Executive Officer of OTI, said: The first six months of 2009 presented challenges resulting from global economic crisis. It has strengthened our commitment to successfully execute our focused and clear strategy. The results show continued improvement in gross margins and further reduction in operating expenses, which have helped us to further reduce our net loss despite the lower than expected revenues.
Mr. Bashan continued: Our main and most important goal is to bring OTI to operating breakeven position as quickly as possible. We plan to get there by further reducing our operating expenses, focusing on high margin projects with recurring revenues, continuing to build strong IP portfolio and product line and focusing on successful execution of projects that will contribute to OTIs growth over the next 12-24 months.
3
Based on the higher than expected decline in revenues in the first half, which is mainly attributed to the revenue reduction in the OEM and payments business and the delays in customers projects timetables, we are updating our target revenues for this year to $34 million.
With regards to OTIs share repurchase program, OTIs Board of Directors has recently approved a detailed plan. Execution of the plan shall be subject to applicable laws.
Conference call and
Webcast Information
The Company has scheduled a
conference call and simultaneous Web cast for August 25, 2009, at 9:00 AM EDT to discuss
operating results and future outlook. To participate, call:
1-888-281-1167 (U.S. toll free), 1-800-270-345 (Israel toll free). To listen to the Web cast, use the following link: http://www.otiglobal.com/content.aspx?id=226
For those unable to participate, the teleconference will be available for replay until midnight September 1st, by calling U.S.: 1-888-326-9310 on the web at: http://www.otiglobal.com/content.aspx?id=226
Use of Non-GAAP
Financial Information
In addition to reporting financial
results in accordance with generally accepted accounting principles, or GAAP, OTI uses
non-GAAP measures of gross profit, net income and earnings per share, which are
adjustments from results based on GAAP to exclude non-cash equity-based compensation
charges in accordance with SFAS 123(R) and EITF 96-18, and amortization of intangible
assets. OTI management believes the non-GAAP financial information provided in this
release provides meaningful supplemental information regarding our performance and
enhances the understanding of the Companys on-going economic performance. The
presentation of this non-GAAP financial information is not intended to be considered in
isolation or as a substitute for results prepared in accordance with GAAP. Management uses
both GAAP and non-GAAP information in evaluating and operating the business and as such
deemed it important to provide all this information to investors. Reconciliations between
GAAP measures and non-GAAP are provided later in this press release.
About OTI
Established in 1990, OTI (NASDAQ GM:
OTIV) designs, develops and markets secure contactless microprocessor-based smart card
technology to address the needs of a wide variety of markets. Applications developed by
OTI include product solutions for petroleum payment systems, homeland security solutions,
electronic passports and IDs, payments, mass transit ticketing, parking and loyalty
programs. OTI has a global network of regional offices to market and support its products.
The company was awarded the Frost & Sullivan 2005 and 2006 Company of the Year Award
in the field of smart cards.
For more information on OTI, visit www.otiglobal.com, the content of which is not part of this press release.
OTI Contact: | Investor Relations: |
Galit Mendelson | Miri Segal |
Vice President of Corporate Relations | MS-IR LLC |
201 944 5200 ext. 111 | 917-607-8654 |
galit@otiglobal.com | msegal@ms-ir.com |
(TABLES TO FOLLOW)
4
Safe Harbor for
Forward-Looking Statements:
This press release contains
forward-looking statements within the meaning of the Private Securities Litigation Reform
Act of 1995 and other Federal securities laws. Whenever we use words such as
believe, expect, anticipate, intend,
plan, estimate or similar expressions, we are making
forward-looking statements. Because such statements deal with future events and are based
on OTIs current expectations, they are subject to various risks and uncertainties
and actual results, performance or achievements of OTI could differ materially from those
described in or implied by the statements in this press release. For example,
forward-looking statements include statements regarding our goals, beliefs, future growth
strategies, objectives, plans or current expectations such as those statements regarding
our goal to bring OTI to operating breakeven position, the steps we take or intend to take
to achieve operating breakeven position and the timing for achieving it, or our statement
regarding our revenues target for 2009. Forward-looking statements could be impacted by
the effects of the protracted evaluation and validation periods in the U.S. and other
markets for contactless payment cards ,market acceptance of new and existing products and
our ability to execute production on orders, as well as the other risks and uncertainties,
including those discussed in the Risk Factors section and elsewhere in our
Annual Report on Form 20-F for the year ended December 31, 2008 and in subsequent filings
with the Securities and Exchange Commission. Although we believe that the expectations
reflected in such forward-looking statements are based on reasonable assumptions, we can
give no assurance that our expectations will be achieved. Except as otherwise required by
law, OTI disclaims any intention or obligation to update or revise any forward-looking
statements, which speak only as of the date hereof, whether as a result of new
information, future events or circumstances or otherwise.
5
ON TRACK INNOVATIONS LTD.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except share and per share data)
Six months ended June 30 |
Three months ended June 30 |
|||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2009 |
2008 |
2009 |
2008 | |||||||||||
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) | |||||||||||
Revenues | ||||||||||||||
Sales | $ | 15,687 | $ | 18,948 | $ | 6,807 | $ | 10,202 | ||||||
Licensing and transaction fees | 1,200 | 1,338 | 743 | 763 | ||||||||||
Total revenues | 16,887 | 20,286 | 7,550 | 10,965 | ||||||||||
Cost of revenues | ||||||||||||||
Cost of sales | 9,197 | 13,041 | 4,191 | 6,703 | ||||||||||
Total cost of revenues | 9,197 | 13,041 | 4,191 | 6,703 | ||||||||||
Gross profit | 7,690 | 7,245 | 3,359 | 4,262 | ||||||||||
Operating expenses | ||||||||||||||
Research and development | 4,553 | 5,901 | 2,337 | 2,904 | ||||||||||
Selling and marketing | 6,182 | 5,175 | 2,813 | 2,798 | ||||||||||
General and administrative | 5,002 | 7,349 | 2,456 | 3,755 | ||||||||||
Amortization of intangible assets | 515 | 658 | 251 | 329 | ||||||||||
Total operating expenses | 16,252 | 19,083 | 7,857 | 9,786 | ||||||||||
Operating loss | (8,562 | ) | (11,838 | ) | (4,498 | ) | (5,524 | ) | ||||||
Financial expense, net | (378 | ) | (566 | ) | (585 | ) | (90 | ) | ||||||
Loss before taxes on income | (8,940 | ) | (12,404 | ) | (5,083 | ) | (5,614 | ) | ||||||
Taxes on income | 42 | 122 | 19 | 59 | ||||||||||
Equity in loss of affiliate | - | (250 | ) | - | (127 | ) | ||||||||
Net loss | (8,898 | ) | (12,532 | ) | (5,064 | ) | (5,682 | ) | ||||||
Net loss attributable to noncontrolling interest | 141 | - | 97 | - | ||||||||||
Net loss attributable to shareholders | (8,757 | ) | (12,532 | ) | (4,967 | ) | (5,682 | ) | ||||||
Basic and diluted net loss attributable to | ||||||||||||||
shareholders per ordinary share | $ | (0.40 | ) | $ | (0.64 | ) | $ | (0.22 | ) | $ | (0.29 | ) | ||
Weighted average number of ordinary | ||||||||||||||
shares used in computing basic | ||||||||||||||
and diluted net loss per ordinary share | 22,027,070 | 19,708,825 | 22,266,869 | 19,861,051 | ||||||||||
6
ON TRACK INNOVATIONS LTD.
RECONCILIATION BETWEEN GAAP TO NON-GAAP
UNAUDITIED STATEMENT OF OPERATIONS
(In thousands, except share and per share data)
GAAP |
Six months ended June 30, 2009 Adjustments |
Non-GAAP | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Revenues | |||||||||||
Sales | $ | 15,687 | - | $ | 15,687 | ||||||
Licensing and transaction fees | 1,200 | - | 1,200 | ||||||||
Total revenues | 16,887 | 16,887 | |||||||||
Cost of Revenues | |||||||||||
Cost of sales | 9,197 | (28 | )(a) | 9,169 | |||||||
Total cost of revenues | 9,197 | (28 | ) | 9,169 | |||||||
Gross profit | 7,690 | 28 | 7,718 | ||||||||
Operating Expenses | |||||||||||
Research and development | 4,553 | (1,141 | )(a) | 3,412 | |||||||
Selling and marketing | 6,182 | (351 | )(a) | 5,831 | |||||||
General and administrative | 5,002 | (468 | )(a) | 4,534 | |||||||
Amortization of intangible assets | 515 | (515 | )(b) | - | |||||||
Total operating expenses | 16,252 | (2,475 | ) | 13,777 | |||||||
Operating loss | (8,562 | ) | 2,503 | (6,059 | ) | ||||||
Financial expenses, net | (378 | ) | - | (378 | ) | ||||||
Loss before taxes on income | (8,940 | ) | 2,503 | (6,437 | ) | ||||||
Taxes on income | 42 | - | 42 | ||||||||
Net loss | $ | (8,898 | ) | $ | 2,503 | $ | (6,395 | ) | |||
Net loss attributable to noncontrolling interest | 141 | - | 141 | ||||||||
Net loss attributable to shareholders | $ | (8,757 | ) | $ | 2,503 | $ | (6,254 | ) | |||
Basic and diluted net loss attributable to | |||||||||||
shareholders per ordinary share | $ | (0.40 | ) | $ | 0.12 | $ | (0.28 | ) | |||
Weighted average number of ordinary shares used | |||||||||||
in computing basic and diluted net loss per | |||||||||||
ordinary share | 22,027,070 | 22,027,070 | |||||||||
(a) | The effect of stock-based compensation in accordance with SFAS 123(R) and EITF 96-18. |
(b) | The effect of amortization of intangible assets. |
7
ON TRACK INNOVATIONS LTD.
RECONCILIATION BETWEEN GAAP TO NON-GAAP
UNAUDITIED STATEMENT OF OPERATIONS
(In thousands, except share and per share data)
GAAP |
Three months ended June 30, 2009 Adjustments |
Non-GAAP | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Revenues | |||||||||||
Sales | $ | 6,807 | - | $ | 6,807 | ||||||
Licensing and transaction fees | 743 | - | 743 | ||||||||
Total revenues | 7,550 | 7,550 | |||||||||
Cost of Revenues | |||||||||||
Cost of sales | 4,191 | (13 | )(a) | 4,178 | |||||||
Total cost of revenues | 4,191 | (13 | ) | 4,178 | |||||||
Gross profit | 3,359 | 13 | 3,372 | ||||||||
Operating Expenses | |||||||||||
Research and development | 2,337 | (558 | )(a) | 1,779 | |||||||
Selling and marketing | 2,813 | (209 | )(a) | 2,604 | |||||||
General and administrative | 2,456 | (254 | )(a) | 2,202 | |||||||
Amortization of intangible assets | 251 | (251 | )(b) | - | |||||||
Total operating expenses | 7,857 | (1,272 | ) | 6,585 | |||||||
Operating loss | (4,498 | ) | 1,285 | (3,213 | ) | ||||||
Financial expenses, net | (585 | ) | - | (585 | ) | ||||||
Loss before taxes on income | (5,083 | ) | 1,285 | (3,798 | ) | ||||||
Taxes on income | 19 | - | 19 | ||||||||
Net loss | $ | (5,064 | ) | $ | 1,285 | $ | (3,779 | ) | |||
Net loss attributable to noncontrolling interest | 97 | - | 97 | ||||||||
Net loss attributable to shareholders | $ | (4,967 | ) | $ | 1,285 | $ | (3,682 | ) | |||
Basic and diluted net loss attributable to | |||||||||||
shareholders per ordinary share | $ | (0.22 | ) | $ | 0.05 | $ | (0.17 | ) | |||
Weighted average number of ordinary shares used | |||||||||||
in computing basic and diluted net loss per | |||||||||||
ordinary share | 22,266,869 | 22,266,869 | |||||||||
(a) | The effect of stock-based compensation in accordance with SFAS 123(R) and EITF 96-18. |
(b) | The effect of amortization of intangible assets. |
8
ON TRACK INNOVATIONS LTD
RECONCILIATION BETWEEN GAAP TO NON-GAAP
UNAUDITIED STATEMENT OF OPERATIONS
(In thousands, except share and per share data)
GAAP |
Six months ended June 30, 2008 Adjustments |
Non-GAAP | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Revenues | |||||||||||
Sales | $ | 18,948 | - | $ | 18,948 | ||||||
Licensing and transaction fees | 1,338 | - | 1,338 | ||||||||
Total revenues | 20,286 | 20,286 | |||||||||
Cost of Revenues | |||||||||||
Cost of sales | 13,041 | (30 | )(a) | 13,011 | |||||||
Total cost of revenues | 13,041 | (30 | ) | 13,011 | |||||||
Gross profit | 7,245 | 30 | 7,275 | ||||||||
Operating Expenses | |||||||||||
Research and development | 5,901 | (1,735 | )(a) | 4,166 | |||||||
Selling and marketing | 5,175 | (925 | )(a) | 4,250 | |||||||
General and administrative | 7,349 | (1,225 | )(a) | 6,124 | |||||||
Amortization of intangible assets | 658 | (658 | )(b) | - | |||||||
Total operating expenses | 19,083 | (4,543 | ) | 14,540 | |||||||
Operating loss | (11,838 | ) | 4,573 | (7,265 | ) | ||||||
Financial expenses, net | (566 | ) | - | (566 | ) | ||||||
Loss before taxes on income and minority interests | (12,404 | ) | 4,573 | (7,831 | ) | ||||||
Taxes on income | 122 | - | 122 | ||||||||
Equity in loss of affiliate | (250 | ) | - | (250 | ) | ||||||
Net loss | $ | (12,532 | ) | $ | 4,573 | $ | (7,959 | ) | |||
Net loss attributable to noncontrolling interest | - | - | - | ||||||||
Net loss attributable to shareholders | $ | (12,532 | ) | $ | 4,573 | $ | (7,959 | ) | |||
Basic and diluted net loss attributable to | |||||||||||
shareholders per ordinary share | $ | (0.64 | ) | $ | 0.24 | $ | (0.40 | ) | |||
Weighted average number of ordinary shares used | |||||||||||
in computing basic and diluted net loss per | |||||||||||
ordinary share | 19,708,825 | 19,708,825 | |||||||||
(a) | The effect of stock-based compensation in accordance with SFAS 123(R) and EITF 96-18. |
(b) | The effect of amortization of intangible assets. |
9
ON TRACK INNOVATIONS LTD
RECONCILIATION BETWEEN GAAP TO NON-GAAP
UNAUDITIED STATEMENT OF OPERATIONS
(In thousands, except share and per share data)
GAAP |
Three months ended June 30, 2008 Adjustments |
Non-GAAP | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Revenues | |||||||||||
Sales | $ | 10,202 | - | $ | 10,202 | ||||||
Licensing and transaction fees | 763 | - | 763 | ||||||||
Total revenues | 10,965 | 10,965 | |||||||||
Cost of Revenues | |||||||||||
Cost of sales | 6,703 | (15 | )(a) | 6,688 | |||||||
Total cost of revenues | 6,703 | (15 | ) | 6,688 | |||||||
Gross profit | 4,262 | 15 | 4,277 | ||||||||
Operating Expenses | |||||||||||
Research and development | 2,904 | (930 | )(a) | 1,974 | |||||||
Selling and marketing | 2,798 | (635 | )(a) | 2,163 | |||||||
General and administrative | 3,755 | (651 | )(a) | 3,104 | |||||||
Amortization of intangible assets | 329 | (329 | )(b) | - | |||||||
Total operating expenses | 9,786 | (2,545 | ) | 7,241 | |||||||
Operating loss | (5,524 | ) | 2,560 | (2,964 | ) | ||||||
Financial expenses, net | (90 | ) | - | (90 | ) | ||||||
Loss before taxes on income and minority interests | (5,614 | ) | 2,560 | (3,054 | ) | ||||||
Taxes on income | 59 | - | 59 | ||||||||
Equity in loss of an affiliate | (127 | ) | - | (127 | ) | ||||||
Net loss | $ | (5,682 | ) | $ | 2,560 | $ | (3,122 | ) | |||
Net loss attributable to noncontrolling interest | - | - | - | ||||||||
Net loss attributable to shareholders | $ | (5,682 | ) | $ | 2,560 | $ | (3,122 | ) | |||
Basic and diluted net loss | |||||||||||
per ordinary share | $ | (0.29 | ) | $ | 0.13 | $ | (0.16 | ) | |||
Weighted average number of ordinary shares used | |||||||||||
in computing basic and diluted net loss per | |||||||||||
ordinary share | 19,861,051 | 19,861,051 | |||||||||
(a) | The effect of stock-based compensation in accordance with SFAS 123(R) and EITF 96-18. |
(b) | The effect of amortization of intangible assets. |
10
ON TRACK INNOVATIONS LTD.
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands, except share and per share data)
June 30 2009 |
December 31 2008 | |||||||
---|---|---|---|---|---|---|---|---|
(Unaudited) |
(Audited) | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 21,863 | $ | 27,196 | ||||
Short-term investments | 46 | 904 | ||||||
Trade receivables (net of allowance for doubtful | ||||||||
accounts of $3,313 and $3,315 as of June 30, 2009 | ||||||||
And December 31, 2008, respectively) | 4,742 | 4,567 | ||||||
Other receivables and prepaid expenses | 3,928 | 2,994 | ||||||
Inventories | 12,771 | 12,343 | ||||||
Total current assets | 43,350 | 48,004 | ||||||
Severance pay deposits fund | 1,166 | 1,189 | ||||||
Investment in an affiliated company | - | - | ||||||
Property, plant and equipment, net | 18,169 | 18,613 | ||||||
Intangible assets, net | 1,989 | 2,503 | ||||||
Goodwill | - | - | ||||||
Total assets | $ | 64,674 | $ | 70,309 | ||||
11
ON TRACK INNOVATIONS LTD.
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands, except share and per share data)
June 30 2009 |
December 31 2008 | |||||||
---|---|---|---|---|---|---|---|---|
(Unaudited) |
(Audited) | |||||||
Liabilities and Shareholders' Equity | ||||||||
Current Liabilities | ||||||||
Short-term bank credit and current maturities | ||||||||
of long-term bank loans | $ | 5,994 | $ | 4,984 | ||||
Trade payables | 7,646 | 8,071 | ||||||
Other current liabilities | 3,720 | 3,517 | ||||||
Total current liabilities | 17,360 | 16,572 | ||||||
Long-Term Liabilities | ||||||||
Long-term loans, net of current maturities | 1,859 | 1,762 | ||||||
Accrued severance pay | 3,419 | 3,672 | ||||||
Deferred tax liability | 159 | 202 | ||||||
Total long-term liabilities | 5,437 | 5,636 | ||||||
Total liabilities | 22,797 | 22,208 | ||||||
Commitments and Contingencies | ||||||||
Equity | ||||||||
Shareholders' Equity | ||||||||
Ordinary shares of NIS 0.1 par value: Authorized - | ||||||||
50,000,000 shares as of June 30, 2009 and | ||||||||
December 31, 2008; issued 22,874,684 and 21,534,788 | ||||||||
shares as of June 31, 2009 and December 31, 2008, | ||||||||
respectively; outstanding 22,874,684 and 21,495,409 shares | ||||||||
as of June 30, 2009 and December 31, 2008, respectively | 542 | 508 | ||||||
Additional paid-in capital | 185,236 | 182,944 | ||||||
Accumulated other comprehensive loss | 26 | (325 | ) | |||||
Accumulated deficit | (144,198 | ) | (135,441 | ) | ||||
Shareholder's equity | 41,606 | 47,686 | ||||||
Noncontrolling interest | 271 | 415 | ||||||
Total equity | 41,877 | 48,101 | ||||||
Total liabilities and shareholders' equity | $ | 64,674 | $ | 70,309 | ||||
12
ON TRACK INNOVATIONS LTD.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(In thousands, except share and per share data)
Six months ended June 30 |
||||||||
---|---|---|---|---|---|---|---|---|
2009 |
2008 | |||||||
(Unaudited) |
(Unaudited) | |||||||
Cash flows from operating activities | ||||||||
Net loss | $ | (8,898 | ) | $ | (12,532 | ) | ||
Adjustments required to reconcile net loss to net cash used in | ||||||||
operating activities: | ||||||||
Stock-based compensation related to options and shares issued | ||||||||
to employees and others | 1,988 | 3,916 | ||||||
Equity in loss of affiliate | - | 250 | ||||||
Amortization of intangible assets | 515 | 658 | ||||||
Depreciation | 1,293 | 1,707 | ||||||
Accrued severance pay, net | (230 | ) | 390 | |||||
Decrease in deferred tax liabilities | (43 | ) | (125 | ) | ||||
Decrease (increase) in trade receivables | (122 | ) | 1,328 | |||||
Increase in other receivables and prepaid expenses | (877 | ) | (248 | ) | ||||
Decrease (increase) in inventories | (257 | ) | 403 | |||||
Decrease in trade payables | (553 | ) | (2,713 | ) | ||||
Increase (decrease) in other current liabilities | 206 | (206 | ) | |||||
Other, net | (11 | ) | 34 | |||||
Net cash used in operating activities | (6,989 | ) | (7,138 | ) | ||||
Cash flows from investing activities | ||||||||
Acquisition of a consolidated subsidiary, net of cash acquired | - | (565 | ) | |||||
Proceeds from maturity of available -for sale securities | 1,372 | 4,290 | ||||||
Purchase of available-for sale securities | (514 | ) | (20,097 | ) | ||||
Purchase of property and equipment | (553 | ) | (643 | ) | ||||
Other, net | - | 21 | ||||||
Net cash provided by (used in) investing activities | 305 | (16,994 | ) | |||||
Cash flows from financing activities | ||||||||
Increase in short-term bank credit, net | 936 | 594 | ||||||
Proceeds from long-term bank loans | 368 | - | ||||||
Repayment of long-term bank loans | (257 | ) | (214 | ) | ||||
Exercise of options and warrants | 250 | 388 | ||||||
Net cash provided by financing activities | 1,297 | 768 | ||||||
Effect of exchange rate changes on cash | 54 | 25 | ||||||
Decrease in cash and cash equivalents | (5,333 | ) | (23,339 | ) | ||||
Cash and cash equivalents at the beginning of the period | 27,196 | 35,470 | ||||||
Cash and cash equivalents at the end of the period | $ | 21,863 | $ | 12,131 | ||||
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