ON TRACK INNOVATIONS LTD.
(Registrant)
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By:
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/s/ David Bar-Yosef | |
David Bar-Yosef, Advocate | |||
General Counsel | |||
● Better Than Expected Revenues of $26.7Million
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● Gross Margin of 50%
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● Strong Balance Sheet with $33.1 Million in Cash, Cash Equivalents and Short Term Investments
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Total revenues of $26.7 million, a 4% decrease compared to $27.8 million last year.
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Revenues from Licensing and Transaction Fees of $2.7 million, a 49% increase compared to $1.8 million last year.
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Gross margin of 50% for the first half of 2011.
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Non-GAAP operating expenses of $15.0 million, a 16% increase compared to $13.0 million last year. GAAP operating expenses of $16.4 million, a 9% increase compared to $15.1 million last year.
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Non-GAAP operating loss of $1.6 million, compared to non-GAAP operating profit of $2.2 million last year. GAAP operating loss was $3.1 million, compared to GAAP operating profit of $27,000 last year.
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Strong balance sheet with cash, cash equivalents and short-term investments of $33.1 million as of June 30, 2011.
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OTI Contact:
Galit Mendelson
Vice President of Corporate Relations
732 429 1900 ext. 111
galit@otiglobal.com
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Investor Relations:
Miri Segal
MS-IR LLC
917-607-8654
msegal@ms-ir.com
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June 30
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December 31
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|||||||
2011
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2010
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(Unaudited)
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(Audited)
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Assets
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Current assets
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Cash and cash equivalents
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$ | 24,759 | $ | 15,409 | ||||
Short-term investments
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8,335 | 8,594 | ||||||
Trade receivables (net of allowance for doubtful
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accounts of $298 and $2,832 as of June 30, 2011
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and December 31, 2010, respectively)
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7,881 | 5,072 | ||||||
Receivables from sale of operation
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1,267 | 2,336 | ||||||
Other receivables and prepaid expenses
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2,400 | 1,532 | ||||||
Inventories
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8,875 | 8,448 | ||||||
Total current assets
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53,517 | 41,391 | ||||||
Severance pay deposits fund
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1,372 | 1,355 | ||||||
Property, plant and equipment, net
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15,439 | 14,826 | ||||||
Intangible assets, net
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843 | 942 | ||||||
Goodwill
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485 | - | ||||||
Total Assets
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$ | 71,656 | $ | 58,514 |
June 30
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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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$ | 5,403 | $ | 6,881 | ||||
Trade payables
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8,808 | 6,874 | ||||||
Other current liabilities
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7,137 | 8,954 | ||||||
Total current liabilities
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21,348 | 22,709 | ||||||
Long-Term Liabilities
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Long-term loans, net of current maturities
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4,344 | 5,189 | ||||||
Accrued severance pay
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4,125 | 3,727 | ||||||
Deferred tax liability
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71 | 84 | ||||||
Total long-term liabilities
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8,540 | 9,000 | ||||||
Total Liabilities
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29,888 | 31,709 | ||||||
Liabilities related to discontinued operation
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458 | 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 June 30, 2011 and
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December 31, 2010; issued: 32,043,649 and 25,384,010
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shares as of June 30, 2011 and December 31, 2010,
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respectively; outstanding: 31,481,174 and 24,821,535 shares
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as of June 30, 2011 and December 31, 2010, respectively
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802 | 610 | ||||||
Additional paid-in capital
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209,101 | 190,933 | ||||||
Treasury shares at cost –562,475 shares as of June 30, 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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636 | 645 | ||||||
Accumulated deficit
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(167,899 | ) | (164,812 | ) | ||||
Shareholder’s equity
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41,504 | 26,240 | ||||||
Non-controlling interest
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(194 | ) | (124 | ) | ||||
Total Equity
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41,310 | 26,116 | ||||||
Total Liabilities and Equity
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$ | 71,656 | $ | 58,514 |
Six months ended June 30
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Three months ended June 30
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2011
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2010
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2011
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2010
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(Unaudited)
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(Unaudited)
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(Unaudited)
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(Unaudited)
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Revenues
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Sales
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$ | 23,998 | $ | 26,001 | $ | 13,128 | $ | 12,461 | ||||||||
Licensing and transaction fees
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2,682 | 1,799 | 1,529 | 925 | ||||||||||||
Total revenues
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26,680 | 27,800 | 14,657 | 13,386 | ||||||||||||
Cost of revenues
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Cost of sales
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13,343 | 12,665 | 7,635 | 6,507 | ||||||||||||
Total cost of revenues
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13,343 | 12,665 | 7,635 | 6,507 | ||||||||||||
Gross profit
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13,337 | 15,135 | 7,022 | 6,879 | ||||||||||||
Operating expenses
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Research and development
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4,521 | 4,017 | 2,324 | 1,969 | ||||||||||||
Selling and marketing
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6,903 | 6,657 | 4,062 | 2,924 | ||||||||||||
General and administrative
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4,720 | 4,147 | 2,465 | 1,891 | ||||||||||||
Amortization of intangible assets
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284 | 287 | 133 | 143 | ||||||||||||
Total operating expenses
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16,428 | 15,108 | 8,984 | 6,927 | ||||||||||||
Operating profit (loss)
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(3,091 | ) | 27 | (1,962 | ) | (48 | ) | |||||||||
Financial income (expense), net
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23 | (575 | ) | (26 | ) | (30 | ) | |||||||||
Loss before taxes on income
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(3,068 | ) | (548 | ) | (1,988 | ) | (78 | ) | ||||||||
Taxes on income
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(84 | ) | (155 | ) | (19 | ) | (73 | ) | ||||||||
Net loss from continuing operations
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(3,152 | ) | (703 | ) | (2,007 | ) | (151 | ) | ||||||||
Net loss from discontinued operations
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- | (1,921 | ) | - | (1,980 | ) | ||||||||||
Net loss
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(3,152 | ) | (2,624 | ) | (2,007 | ) | (2,131 | ) | ||||||||
Net loss attributable to noncontrolling interest
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65 | 47 | 32 | 38 | ||||||||||||
Net loss attributable to shareholders
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$ | (3,087 | ) | $ | (2,577 | ) | $ | (1,975 | ) | $ | (2,093 | ) | ||||
Basic and diluted net loss attributable to
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shareholders per ordinary share
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From continuing operations
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$ | (0.10 | ) | $ | (0.03 | ) | $ | (0.06 | ) | $ | (0.01 | ) | ||||
From discontinued operations
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$ | - | $ | (0.08 | ) | $ | - | $ | (0.08 | ) | ||||||
$ | (0.10 | ) | $ | (0.11 | ) | $ | (0.06 | ) | $ | (0.09 | ) | |||||
Weighted average number of ordinary
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shares used in computing basic and
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diluted net loss per ordinary share
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30,825,506 | 24,310,558 | 32,156,165 | 24,465,199 |
Six months ended June 30
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Three months ended June 30
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2011
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2010
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2011
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2010
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(Unaudited)
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(Unaudited)
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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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16,428 | 15,108 | 8,984 | 6,927 | ||||||||||||
Less:
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Stock based compensation expenses
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(1,181 | ) | (1,867 | ) | (650 | ) | (891 | ) | ||||||||
Amortization of intangible assets
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(284 | ) | (287 | ) | (133 | ) | (143 | ) | ||||||||
Non GAAP Operating expenses
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$ | 14,963 | $ | 12,954 | $ | 8,201 | $ | 5,893 | ||||||||
OPERATING PROFIT (LOSS)
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GAAP Operating profit (loss)
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(3,091 | ) | 27 | (1,962 | ) | (48 | ) | |||||||||
Plus:
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Stock based compensation expenses
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1,184 | 1,878 | 651 | 896 | ||||||||||||
Amortization of intangible assets
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284 | 287 | 133 | 143 | ||||||||||||
Non GAAP Operating profit (loss)
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$ | (1,623 | ) | $ | 2,192 | $ | (1,178 | ) | $ | 991 | ||||||
NET PROFIT (LOSS) ATTRIBUTABLE TO SHAREHOLDERS
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GAAP Net loss attributable to shareholders
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$ | (3,087 | ) | $ | (2,577 | ) | $ | (1,975 | ) | $ | (2,093 | ) | ||||
Plus:
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Stock based compensation expenses
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1,184 | 1,878 | 651 | 896 | ||||||||||||
Amortization of intangible assets
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284 | 287 | 133 | 143 | ||||||||||||
Net loss from discontinued operations
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- | 1,921 | - | 1,980 | ||||||||||||
Non GAAP net profit (loss) attributable to shareholders
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$ | (1,619 | ) | $ | 1,509 | $ | (1,191 | ) | $ | 926 | ||||||
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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$ | (0.10 | ) | $ | (0.11 | ) | $ | (0.06 | ) | $ | (0.09 | ) | ||||
Plus:
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Stock based compensation expenses
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0.04 | 0.08 | 0.02 | 0.04 | ||||||||||||
Amortization of intangible assets
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0.01 | 0.01 | 0.00 | 0.01 | ||||||||||||
Net loss from discontinued operations
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- | 0.08 | - | 0.08 | ||||||||||||
Non GAAP Basic net profit (loss) attributable to shareholders per ordinary share
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$ | (0.05 | ) | $ | 0.06 | $ | (0.04 | ) | $ | 0.04 |
Six months ended June 30
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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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$ | (3,152 | ) | $ | (703 | ) | ||
Adjustments required to reconcile net loss to
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net cash provide 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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1,184 | 1,878 | ||||||
Gain on sale of property and equipment
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(4 | ) | (11 | ) | ||||
Amortization of intangible assets
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284 | 287 | ||||||
Depreciation
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836 | 727 | ||||||
Changes in operation assets and liabilities:
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Accrued severance pay, net
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381 | 47 | ||||||
Accrued interest and linkage differences on long-term loans
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(206 | ) | 115 | |||||
Decrease in deferred tax liability
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(13 | ) | (18 | ) | ||||
Linkage differences on receivable from sale of operation
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(187 | ) | - | |||||
Decrease (increase) in trade receivables, net
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(2,752 | ) | 2,584 | |||||
Decrease (increase) in other receivables and prepaid expenses
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(849 | ) | 290 | |||||
Increase in inventories
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(189 | ) | (4,298 | ) | ||||
Increase in trade payables
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1,498 | 1,363 | ||||||
Increase (decrease) in other current liabilities
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(1,915 | ) | 1,458 | |||||
Net cash provided by (used in) continuing operating activities
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(5,084 | ) | 3,719 | |||||
Cash flows from investing activities
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Purchase of property and equipment
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(786 | ) | (1,275 | ) | ||||
Purchase of available-for-sale securities
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(3,492 | ) | (3,543 | ) | ||||
Acquisition of business operation
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(400 | ) | - | |||||
Proceeds from maturity and sale of available-for-sale securities
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3,886 | 1,185 | ||||||
Other, net
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7 | 10 | ||||||
Net cash used in continuing investing activities
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(785 | ) | (3,623 | ) | ||||
Cash flows from financing activities
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Decrease in short-term bank credit, net
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(1,937 | ) | (533 | ) | ||||
Proceeds from long-term bank loans
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151 | 3,616 | ||||||
Repayment of long-term bank loans
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(937 | ) | (454 | ) | ||||
Proceeds from issuance of shares, net of issuance expenses
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16,619 | - | ||||||
Payments to acquire treasury shares
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- | (497 | ) | |||||
Proceeds from exercise of options and warrants, net
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195 | 26 | ||||||
Net cash provided by continuing financing activities
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14,091 | 2,158 | ||||||
Cash flows from discontinued operations
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Net cash used in discontinued operating activities
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(231 | ) | (1,600 | ) | ||||
Net cash provided by discontinued investing activities
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1,256 | 1,121 | ||||||
Total net cash provided by (used in) discontinued activities
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1,025 | (479 | ) | |||||
Effect of exchange rate changes on cash
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103 | (285 | ) | |||||
Increase in cash and cash equivalents
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9,350 | 1,490 | ||||||
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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$ | 24,759 | $ | 28,374 |