ON TRACK INNOVATIONS LTD.
(Registrant)
By /s/ Oded Bashan
Oded Bashan
Chief Executive Officer and Chairman
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Press Release
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● Revenues of $12 Million
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● Gross Margin of 53%
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● Strong Balance Sheet with $37.2 Million in Cash, Cash Equivalents and Short Term Investments
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Total revenues of $12 million, a 17% decrease compared to $14.4 million last year.
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Revenues from Licensing and Transaction Fees of $1.2 million, a 32% increase compared to $874,000 last year.
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Gross margin was 53% for the first quarter of 2011.
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Non-GAAP operating expenses of $6.8 million, a 4% decrease compared to $7.1 million last year. GAAP operating expenses of $7.4 million, a 9% decrease compared to $8.2 million last year.
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Non-GAAP operating loss of $445,000, compared to non-GAAP operating profit of $1.2 million last year. GAAP operating loss was $1.1 million, compared to GAAP operating profit of $75,000 last year.
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Strong balance sheet with cash, cash equivalents and short-term investments of $37.2 million as of March 31, 2011.
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OTI Contact:
Galit Mendelson
Vice President of Corporate Relations
732 429 1900 ext. 111
galit@otiglobal.com
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Investor Relations:
Miri Segal
MS-IR LLC
917-607-8654
msegal@ms-ir.com
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March 31
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December 31
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2011
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2010
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(Unaudited) |
(Audited)
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Assets
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Current assets
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Cash and cash equivalents
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$ | 26,286 | $ | 15,409 | ||||
Short-term investments
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10,880 | 8,594 | ||||||
Trade receivables (net of allowance for doubtful
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accounts of $263 and $2,832 as of March 31, 2011
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||||||||
and December 31, 2010, respectively)
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9,031 | 5,072 | ||||||
Receivables from sale of operation
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1,864 | 2,336 | ||||||
Other receivables and prepaid expenses
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2,164 | 1,532 | ||||||
Inventories
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9,036 | 8,448 | ||||||
Total current assets
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59,261 | 41,391 | ||||||
Severance pay deposits fund
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1,384 | 1,355 | ||||||
Property, plant and equipment, net
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15,450 | 14,826 | ||||||
Intangible assets, net
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996 | 942 | ||||||
Goodwill
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465 | - | ||||||
Total Assets
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$ | 77,556 | $ | 58,514 |
March 31
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December 31
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|||||||
2011
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2010
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(Unaudited)
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(Audited)
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Liabilities and Equity
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Current Liabilities
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Short-term bank credit and current maturities
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of long-term bank loans
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$ | 5,493 | $ | 6,881 | ||||
Trade payables
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8,713 | 6,874 | ||||||
Other current liabilities
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11,033 | 8,954 | ||||||
Total current liabilities
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25,239 | 22,709 | ||||||
Long-Term Liabilities
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Long-term loans, net of current maturities
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4,841 | 5,189 | ||||||
Accrued severance pay
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3,927 | 3,727 | ||||||
Deferred tax liability
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74 | 84 | ||||||
Total long-term liabilities
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8,842 | 9,000 | ||||||
Total Liabilities
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34,081 | 31,709 | ||||||
Liabilities related to discontinued operation
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567 | 689 | ||||||
Commitments and Contingencies
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Equity
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Shareholders' Equity
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Ordinary shares of NIS 0.1 par value: Authorized –
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50,000,000 shares as of March 31, 2011 and
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December 31, 2010; issued: 31,705,166 and 25,384,010
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shares as of March 31, 2011 and December 31, 2010,
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respectively; outstanding: 31,142,691 and 24,821,535 shares
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as of March 31, 2011 and December 31, 2010, respectively
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792 | 610 | ||||||
Additional paid-in capital
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208,479 | 190,933 | ||||||
Treasury shares at cost –562,475 shares as of March 31, 2011
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and December 31, 2010.
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(1,136 | ) | (1,136 | ) | ||||
Accumulated other comprehensive income
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856 | 645 | ||||||
Accumulated deficit
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(165,924 | ) | (164,812 | ) | ||||
Shareholder’s equity
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43,067 | 26,240 | ||||||
Non-controlling interest
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(159 | ) | (124 | ) | ||||
Total Equity
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42,908 | 26,116 | ||||||
Total Liabilities and Equity
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$ | 77,556 | $ | 58,514 |
Three months ended March 31
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2011
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2010
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(Unaudited)
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(Unaudited)
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Revenues
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Sales
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$ | 10,870 | $ | 13,540 | ||||
Licensing and transaction fees
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1,153 | 874 | ||||||
Total revenues
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12,023 | 14,414 | ||||||
Cost of revenues
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Cost of sales
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5,708 | 6,158 | ||||||
Total cost of revenues
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5,708 | 6,158 | ||||||
Gross profit
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6,315 | 8,256 | ||||||
Operating expenses
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Research and development
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2,197 | 2,048 | ||||||
Selling and marketing
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2,841 | 3,733 | ||||||
General and administrative
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2,255 | 2,256 | ||||||
Amortization of intangible assets
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151 | 144 | ||||||
Total operating expenses
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7,444 | 8,181 | ||||||
Operating profit (loss)
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(1,129 | ) | 75 | |||||
Financial income (expense), net
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49 | (545 | ) | |||||
Loss before taxes on income
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(1,080 | ) | (470 | ) | ||||
Taxes on income
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(65 | ) | (82 | ) | ||||
Net loss from continuing operations
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(1,145 | ) | (552 | ) | ||||
Net profit from discontinued operations
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- | 59 | ||||||
Net loss
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(1,145 | ) | (493 | ) | ||||
Net loss attributable to noncontrolling interest
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33 | 9 | ||||||
Net loss attributable to shareholders
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$ | (1,112 | ) | $ | (484 | ) |
Basic and diluted net profit (loss) attributable to shareholders per ordinary share
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From continuing operations
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$ | (0.04 | ) | $ | (0.02 | ) | ||
From discontinued operations
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$ | - | $ | 0.00 | ||||
$ | (0.04 | ) | $ | (0.02 | ) | |||
Weighted average number of ordinary shares used in
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computing basic net profit (loss) per ordinary share
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29,494,848 | 24,155,916 | ||||||
Weighted average number of ordinary shares used in
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computing diluted net profit (loss) per ordinary share
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29,494,848 | 26,865,470 |
Three months ended December 31
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2011
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2010
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(Unaudited)
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(Unaudited)
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OPERATING EXPENSES
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GAAP operating expenses
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$ | 7,444 | $ | 8,181 | ||||
Less:
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Stock based compensation expenses
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(531 | ) | (976 | ) | ||||
Amortization of intangible assets
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(151 | ) | (144 | ) | ||||
Non GAAP Operating expenses
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$ | 6,762 | $ | 7,061 | ||||
OPERATING PROFIT (LOSS)
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GAAP Operating profit (loss)
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$ | (1,129 | ) | $ | 75 | |||
Plus:
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Stock based compensation expenses
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533 | 982 | ||||||
Amortization of intangible assets
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151 | 144 | ||||||
Non GAAP Operating profit (loss)
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$ | (445 | ) | $ | 1,201 | |||
NET PROFIT (LOSS) ATTRIBUTABLE TO SHAREHOLDERS
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GAAP Net loss attributable to shareholders
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$ | (1,112 | ) | $ | (484 | ) | ||
Plus:
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Stock based compensation expenses
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533 | 982 | ||||||
Amortization of intangible assets
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151 | 144 | ||||||
Net profit from discontinued operations
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- | (59 | ) | |||||
Non GAAP net profit (loss) attributable to shareholders
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$ | (428 | ) | $ | 583 | |||
BASIC NET PROFIT (LOSS) ATTRIBUTABLE TO SHAREHOLDERS PER ORDINARY SHARE
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GAAP Basic net loss attributable to shareholders per ordinary share
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$ | (0.04 | ) | $ | (0.02 | ) | ||
Plus:
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Stock based compensation expenses
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0.02 | 0.04 | ||||||
Amortization of intangible assets
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0.01 | 0.00 | ||||||
Net profit from discontinued operations
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- | 0.00 | ||||||
Non GAAP Basic net profit (loss) attributable to shareholders per ordinary share
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$ | (0.01 | ) | $ | 0.02 |
Three months ended March 31
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2011
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2010
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(Unaudited)
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(Unaudited)
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Cash flows from operating activities
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Net loss from continuing operations
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$ | (1,145 | ) | $ | (552 | ) | ||
Adjustments required to reconcile net loss to
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net cash provided by (used in) operating activities:
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Stock-based compensation related to options and shares issued
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to employees and others
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533 | 982 | ||||||
Gain on sale of property and equipment
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(4 | ) | (6 | ) | ||||
Amortization of intangible assets
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151 | 144 | ||||||
Depreciation
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429 | 370 | ||||||
Accrued severance pay, net
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171 | 78 | ||||||
Accrued interest and linkage differences on long-term loans
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47 | 14 | ||||||
Decrease in deferred tax liability
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(10 | ) | (9 | ) | ||||
linkage differences on receivable from sale of operation
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(151 | ) | - | |||||
Decrease (increase) in trade receivables, net
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(3,896 | ) | 2,217 | |||||
Increase in other receivables and prepaid expenses
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(614 | ) | (68 | ) | ||||
Increase in inventories
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(351 | ) | (2,804 | ) | ||||
Increase (decrease) in trade payables
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1,569 | (1,543 | ) | |||||
Increase in other current liabilities
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2,010 | 10,664 | ||||||
Net cash provided by (used in) continuing operating activities
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(1,261 | ) | 9,487 | |||||
Cash flows from investing activities
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Purchase of property and equipment
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(582 | ) | (179 | ) | ||||
Purchase of available-for-sale securities
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(2,449 | ) | (2,830 | ) | ||||
Acquisition of business operation
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(400 | ) | - | |||||
Proceeds from maturity and sale of available-for-sale securities
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178 | 984 | ||||||
Other, net
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7 | 6 | ||||||
Net cash used in continuing investing activities
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(3,246 | ) | (2,019 | ) | ||||
Cash flows from financing activities
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Decrease in short-term bank credit, net
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(1,852 | ) | (972 | ) | ||||
Proceeds from long-term bank loans
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151 | 419 | ||||||
Repayment of long-term bank loans
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(336 | ) | (110 | ) | ||||
Proceeds from issuance of shares, net of issuance expenses
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16,644 | - | ||||||
Proceeds from exercise of options and warrants, net
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189 | 18 | ||||||
Net cash provided by (used in) continuing financing activities
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14,796 | (645 | ) | |||||
Cash flows from discontinued operations
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Net cash used in discontinued operating activities
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(122 | ) | (306 | ) | ||||
Net cash provided by discontinued investing activities
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623 | - | ||||||
Total net cash provided by (used in) discontinued activities
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501 | (306 | ) | |||||
Effect of exchange rate changes on cash
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87 | (15 | ) | |||||
Increase in cash and cash equivalents
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10,877 | 6,502 | ||||||
Cash and cash equivalents at the beginning of the period
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15,409 | 26,884 | ||||||
Cash and cash equivalents at the end of the period
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$ | 26,286 | $ | 33,386 |