Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2016shares | |
Document And Entity [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2016 |
Entity Registrant Name | CAMTEK LTD |
Entity Central Index Key | 1,109,138 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2,016 |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 35,348,176 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 19,740 | $ 30,833 |
Short-term restricted deposits | 7,875 | |
Trade accounts receivable, net | 36,000 | 27,003 |
Inventories | 25,448 | 27,599 |
Due from affiliated companies | 77 | 559 |
Other current assets | 2,747 | 1,712 |
Deferred tax asset | 894 | 177 |
Total current assets | 84,906 | 95,758 |
Property, plant and equipment, net | 14,109 | 13,531 |
Long-term inventory | 2,107 | 1,979 |
Deferred tax asset | 3,283 | 3,955 |
Other assets | 270 | 248 |
Intangible assets, net | 865 | 795 |
Total noncurrent assets | 6,525 | 6,977 |
Total assets | 105,540 | 116,266 |
Current liabilities | ||
Trade accounts payable | 12,983 | 11,812 |
Other current liabilities | 18,322 | 30,712 |
Total current liabilities | 31,305 | 42,524 |
Long-term liabilities | ||
Liability for employee severance benefits | 870 | 772 |
Other long-term liabilities | 4,768 | |
Total noncurrent liabilities | 870 | 5,540 |
Total liabilities | 32,175 | 48,064 |
Commitments and contingencies | ||
Shareholders' equity | ||
Ordinary shares NIS 0.01 par value, 100,000,000 shares authorized at December 31, 2016 and 2015; 37,440,552 and 37,440,552 issued shares at December 31, 2016 and 2015, respectively; 35,348,176 and 35,348,176 shares outstanding at December 31, 2016 and 2015, respectively | 148 | 148 |
Additional paid-in capital | 76,463 | 76,034 |
Accumulated deficit | (1,348) | (6,082) |
Total shareholders' equity before treasury stock | 75,263 | 70,100 |
Treasury stock, at cost (2,092,376 as of December 31, 2016 and 2015) | (1,898) | (1,898) |
Total shareholders' equity | 73,365 | 68,202 |
Total liabilities and shareholders' equity | $ 105,540 | $ 116,266 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - ₪ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Common Stock, par value per share | ₪ 0.01 | ₪ 0.01 |
Common Stock, shares authorized | 100,000,000 | 100,000,000 |
Common Stock, shares issued | 37,440,552 | 37,440,552 |
Common Stock, shares outstanding | 35,348,176 | 35,348,176 |
Treasury Stock, shares | 2,092,376 | 2,092,376 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues: | |||
Sales of products | $ 95,748 | $ 84,059 | $ 71,371 |
Service fees | 13,775 | 15,216 | 16,942 |
Total revenues | 109,523 | 99,275 | 88,313 |
Cost of revenues: | |||
Cost of products sold | 49,399 | 44,851 | 35,870 |
Cost of services | 11,239 | 11,298 | 11,424 |
Reorganization and impairment | 4,931 | ||
Total cost of revenues | 65,569 | 56,149 | 47,294 |
Gross profit | 43,954 | 43,126 | 41,019 |
Research and development costs | 15,896 | 14,860 | 14,406 |
Selling, general and administrative expenses | 25,501 | 23,587 | 21,417 |
Reorganization and impairment | (4,059) | 138 | 60 |
Loss from litigation | 14,600 | ||
Total operating expenses | 37,338 | 53,185 | 35,883 |
Operating income (loss) | 6,616 | (10,059) | 5,136 |
Financial expenses, net | (994) | (1,877) | (1,220) |
Income (loss) before income taxes | 5,622 | (11,936) | 3,916 |
Income tax (expense) benefit | (888) | 1,823 | (579) |
Net income (loss) | $ 4,734 | $ (10,113) | $ 3,337 |
Earnings (loss) per ordinary share: | |||
Basic | $ 0.13 | $ (0.30) | $ 0.11 |
Diluted | $ 0.13 | $ (0.30) | $ 0.11 |
Weighted average number of ordinary shares outstanding (in thousands): | |||
Basic | 35,348 | 33,352 | 30,464 |
Diluted | 35,376 | 33,352 | 30,545 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Ordinary Shares NIS 0.01 par value [Member] | Treasury stock [Member] | Additional paid-in capital [Member] | Retained earnings (accumulated losses) [Member] | Total | |
Balance, value at Dec. 31, 2013 | $ 134 | $ (1,898) | $ 62,966 | $ 694 | $ 61,896 | |
Balance, shares at Dec. 31, 2013 | 32,497,902 | (2,092,376) | 30,494,522 | |||
Exercise of share options and RSUs, value | [1] | 191 | $ 191 | |||
Exercise of share options and RSUs, shares | 88,996 | |||||
Share-based compensation expense | 308 | 308 | ||||
Net income (loss) | 3,337 | 3,337 | ||||
Balance, value at Dec. 31, 2014 | $ 134 | $ (1,898) | 63,465 | 4,031 | $ 65,732 | |
Balance, shares at Dec. 31, 2014 | 32,586,898 | (2,092,376) | 30,494,522 | |||
Public offering | $ 13 | 11,891 | $ 11,904 | |||
Public offering, shares | 4,655,982 | |||||
Exercise of share options and RSUs, value | [1] | 34 | 34 | |||
Exercise of share options and RSUs, shares | 24,061 | |||||
Repayment of contingent liability | $ 1 | 374 | 375 | |||
Repayment of contingent liability, shares | 173,611 | |||||
Share-based compensation expense | 270 | 270 | ||||
Net income (loss) | (10,113) | (10,113) | ||||
Balance, value at Dec. 31, 2015 | $ 148 | $ (1,898) | 76,034 | (6,082) | $ 68,202 | |
Balance, shares at Dec. 31, 2015 | 37,440,552 | (2,092,376) | 35,348,176 | |||
Share-based compensation expense | 429 | $ 429 | ||||
Net income (loss) | 4,734 | 4,734 | ||||
Balance, value at Dec. 31, 2016 | $ 148 | $ (1,898) | $ 76,463 | $ (1,348) | $ 73,365 | |
Balance, shares at Dec. 31, 2016 | 37,440,552 | (2,092,376) | 35,348,176 | |||
[1] | Less than $ 1 thousand |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 4,734 | $ (10,113) | $ 3,337 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 2,139 | 2,060 | 2,171 |
Loss on disposal of fixed assets | 63 | ||
Impairment losses | 1,595 | ||
Deferred tax expense (benefit) | (45) | (2,383) | 164 |
Share based compensation expense | 429 | 270 | 308 |
Provision for doubtful debts, net | (234) | 74 | 180 |
Revaluation of liabilities and interest expense on liabilities to the OCS | (4,774) | (919) | 522 |
Changes in operating assets and liabilities: | |||
Trade accounts receivable, net | (8,787) | (4,531) | 5,173 |
Inventories | 813 | (4,021) | (5,908) |
Due from affiliated companies | 482 | (58) | (268) |
Other assets | (1,057) | 770 | (478) |
Trade accounts payable | 1,171 | 2,322 | 1,737 |
Other current liabilities | 2,220 | 1,951 | (987) |
Liability in respect of litigation | (14,600) | 14,600 | |
Liability for employee severance benefits, net | 98 | (88) | 2 |
Net cash (used in) provided by operating activities | (17,348) | 1,529 | 5,953 |
Cash flows from investing activities: | |||
Repayment of (investment in) short-term deposits | 7,875 | 1,461 | (2,607) |
Purchase of fixed assets | (1,335) | (1,786) | (563) |
Purchase of intangible assets | (305) | (118) | (154) |
Net cash provided by (used in) investing activities | 6,235 | (443) | (3,324) |
Cash flows from financing activities: | |||
Repayment of contingent liability (see Note 1B) | (169) | (268) | |
Payment to OCS | (4) | (37) | (181) |
Share issuance, net | 11,904 | ||
Proceeds from exercise of share options and RSUs | 34 | 191 | |
Net cash provided by (used in) financing activities | (4) | 11,732 | (258) |
Effect of exchange rate changes on cash | 24 | (205) | (646) |
Net (decrease) increase in cash and cash equivalents | (11,093) | 12,613 | 1,725 |
Cash and cash equivalents at beginning of the year | 30,833 | 18,220 | 16,495 |
Cash and cash equivalents at end of the year | 19,740 | 30,833 | 18,220 |
Supplementary cash flows information: | |||
Interest paid | |||
Income taxes | $ 629 | $ 523 | $ 575 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2016 | |
Nature of Operations [Abstract] | |
Nature of Operations | Note 1 - Nature of Operations A. Camtek Ltd. (“Camtek” or “Company”), an Israeli corporation, is controlled by (46.17%) Priortech Ltd. (“Parent”), an Israeli corporation listed on the Tel-Aviv Stock Exchange. Camtek provides automated and technologically advanced solutions dedicated to enhancing production processes, increasing products yield and reliability, enabling and supporting customers’ latest technologies in the semiconductor fabrication and Printed Circuit Boards (PCB) industries. B . In August 2016, the Company decided to re-organize its mode of operation with respect to its functional inkjet technology (FIT) activity. As part of this change, the Company ceased supporting the four Gryphon systems then installed at customer sites, and re-focused on creating the next generation of digital printer. Based on this decision, an obsolescence provision was recorded against the remaining Gryphon inventory and fixed assets and an adjustment was made to liabilities in respect of the Printar acquisition. As of December 31, 2015, based on Management's estimates regarding future sales of one-color Gryphon systems, an obsolescence provision was recorded against inventory. During 2015, delays in marketing the Gryphon system resulted in an impairment of the Company’s goodwill and IPR&D recorded in the Printar acquisition. In 2015, the Company signed an agreement with Printar, whereby its obligation to pay $2,000 – conditional on certain terms relating to the sale of machinery based on the solder mask technology, if and when the products were commercialized – was replaced and paid off with a one-time final payment of $425, which the Company paid $50 in cash and issued shares with the value of $375. In December 2014, the Company entered into a buy-out arrangement to sell the remaining activities of the Sela division. The sale was completed in January 2015 and, as part of this arrangement, in 2015 Camtek sold the Sela systems remaining in inventory, and ceased support of the Sela customer base. Accordingly, during 2014 the Company wrote off excess inventories, fixed assets, goodwill and adjusted its liabilities in respect to the SELA acquisition. The impact of these decisions on the consolidated statement of income in the years ended December 31, 2016, 2015 and 2014 was as follows: Year ended Year ended Year ended December 31, December 31, December 31, 2016 2015 2014 U.S. Dollars U.S. Dollars U.S. Dollars Account Nature of impact (in thousands) (in thousands) (in thousands) Cost of Revenues Reorganization and impairment 4,931 - - Cost of Revenues Inventory write-off - 1,041 205 Reorganization and Impairment charge with impairment respect of technology, customer relationships and goodwill - 1,595 - Reorganization and Revaluation of liabilities impairment in respect of Printar and SELA acquisition *(4,962 ) (1,457 ) (106 ) Reorganization and impairment Other 903 - 166 872 1,179 265 *see Note 13F |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 2 - Significant Accounting Policies A. Basis of preparation of the financial statements The consolidated financial statements of Camtek and its subsidiaries (collectively “the Company”) have been prepared in accordance with accounting principles generally accepted in United States of America (“US GAAP”). All amounts in the notes to the financial statements are in thousands unless otherwise stated. B. Principles of consolidation The accompanying consolidated financial statements include the accounts of Camtek and its subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation. C. Use of estimates The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. As applicable to these financial statements, the most significant estimates and assumptions relate to revenue recognition, valuation of accounts receivable, inventories, goodwill, deferred tax assets, legal contingencies, contingent consideration and share based compensation among others. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. It is often difficult to accurately estimate the ultimate outcome of a contingent liability. Different variables can affect the timing and amount that management provides for certain contingent liabilities. The Company's assessments are therefore subject to estimates made by management and its legal counsel. Adverse revision in management estimates of the potential liability could materially impact the Company's financial condition, results of operations or liquidity. The Company adjusts such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. D. Foreign currency transactions The functional currency of the Company and its subsidiaries is the U.S. Dollar. Revenue generated by the Company and its subsidiaries is primarily generated outside of Israel and a majority thereof is received in U.S. Dollars. A significant portion of materials and components purchased and operating expenses incurred are either paid for in U.S. Dollars or in New Israeli Shekels (“NIS”). Transactions not denominated in U.S. Dollars are recorded upon their initial recognition according to the exchange rate in effect on the date of the transaction. Exchange rate differences arising upon the settlement of monetary items or upon reporting the Company’s monetary items at exchange rates different from that by which they were initially recorded during the period, or reported in previous financial statements, are charged to financial income (expenses), net. E. Cash and cash equivalents All highly liquid investments purchased with original maturities of three months or less are considered to be cash equivalents. F. Trade accounts receivable and allowance for doubtful accounts Accounts receivable are recorded at the outstanding recognized amount and do not bear interest. The allowance for doubtful accounts represents Management’s best estimate of the probable loss inherent in existing accounts receivable balances as a result of possible non-collection. In determining the appropriate allowance, Management bases its estimate on information available about specific debtors, including aging of the balance, assessment of the underlying security received, the history of write-offs, relationships with the customers and the overall creditworthiness of the customers. G. Inventories Inventories consist of completed systems, partially completed systems and components and other raw materials, and are recorded at the lower of cost or market. Cost is determined by the moving – average cost method basis. Inventory write-downs are recorded at the end of each fiscal period for damaged, obsolete, excess and slow-moving inventory. These write-downs, to the lower of cost or market value, create a new cost basis that is not subsequently marked up based on changes in underlying facts and circumstances. Management periodically evaluates its inventory composition, giving consideration to factors such as the probability and timing of anticipated usage and the physical condition of the items, and then estimates a charge (reducing the inventory) to be provided for slow moving, technological obsolete or damaged inventory. These estimates could vary significantly from actual use based upon future economic conditions, customer inventory levels or competitive factors that were not foreseen or did not exist when the inventory write-downs were established. Inventory that is not expected to be converted or consumed within the next year is classified as non-current, based on Management’s estimates taking into account market conditions. H. Property, plant and equipment These assets are stated at cost less accumulated depreciation, and are depreciated over their estimated useful lives on a straight-line basis. Annual rates of depreciation are as follows: Land 1% Building 2% Machinery and equipment 10% - 33% Computer equipment and software 20%-33% Office furniture and equipment 6% - 20% Automobiles 15% Leasehold improvements are amortized by the straight-line method over the shorter of the lease term or the estimated useful economic life of such improvements. Certain of the Company’s finished goods are systems used as demonstration systems, training systems, and for product development in the Company’s laboratories (“internal use”). These systems are identical to the systems that Camtek sells in its ordinary course of business. In circumstances where the Company intends to utilize such systems for its internal use, the Company transfers them from inventory to fixed assets. The rationale for the transfer is that the Company does not have the intention to sell these systems in the ordinary course of business but rather expects to use them for its internal use over their expected useful lives. These systems are recorded as fixed assets at cost and depreciated over their useful lives. I. Intangible assets Patent registration costs are recorded at cost and amortized, beginning with the first year of utilization, over its expected useful life. Intangible assets purchased as part of the business combinations were recorded at their fair value and were amortized based on their remaining estimated useful lives. Acquired in-process research and development (IPR&D) began to be amortized upon the completion of the development of the associated technology. J. Goodwill Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Goodwill is reviewed for impairment at least annually in accordance with the provisions of FASB ASC Topic 350, Intangibles - Goodwill and Other As of December 31, 2015, based on the Company’s annual impairment test, impairment charges were recognized against the remaining goodwill. (See Note 10). K. Impairment of long-lived assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to undiscounted future cash flows expected to be generated by the asset. If the carrying amount of the long lived asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized to the extent that the asset’s carrying amount exceeds L. Fair values of financial instruments The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, short-term deposits, short-term restricted deposits, trade accounts receivable, trade accounts payable and amounts from affiliates approximate fair value because of their short-term nature. The contingent consideration liabilities relating to the Company's business combinations are measured at fair value at each balance sheet date. M. Revenue recognition The Company recognizes revenue from sales of its products when the products are installed at the customer’s premises and are operating in accordance with its specifications, signed documentation of the arrangement, such as a signed contract or purchase order, has been received, the price is fixed or determinable and collectibility is reasonably assured. In the limited circumstances when the products are installed by a trained distributor acting as an end user, revenue is recognized upon delivery to the distributor assuming all other criteria for revenue recognition are met. Service revenues consist mainly of revenues from maintenance contracts and are recognized ratably over the contract period. For multiple-element arrangements the overall arrangement fee is allocated to each element (both delivered and undelivered elements) based on management’s best estimate of their selling price where other sources of evidence are unavailable. The revenue relating to the undelivered elements is deferred using the relative selling price method utilizing vendor-specific-objective evidence (“VSOE”) until delivery of the deferred elements. The Company’s multiple deliverable arrangements consist of product sales and non-standard warranties. A non-standard warranty is one that is for a period longer than 12 months. Accordingly, income from a non-standard warranty is deferred as unearned revenue and is recognized ratably as revenue commencing with and over the applicable warranty term. The Company routinely evaluates its products for inclusion of any embedded software that is more than incidental. Based on such evaluation, the Company has concluded that none of its products have such embedded software. N. Warranty The Company records a liability for standard product warranty obligations at the time of sale based upon historical warranty experience. The term of the warranty is generally twelve months. For the Company’s treatment of non-standard warranties, see Note 2(M) – Revenue recognition. O. Income taxes The Company accounts for income taxes in accordance with the asset and liability method whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts and tax bases of assets and liabilities and are measured using the enacted tax rates and laws expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company provides a valuation allowance to reduce deferred tax assets to the amount that is more likely than not to be realized. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50 percent likely of being realized. Changes in recognition or measurement are reflected in the period in which the change occurs. Deferred tax liabilities and assets are classified as current or non-current based on the classification of the related asset or liability for financial reporting or, if not related to an asset or liability for financial reporting, according to the expected reversal dates of the specific temporary differences. P. Research and development Research and development costs are expensed as incurred. Q. Earnings / loss per ordinary share Basic earnings/loss per ordinary share is calculated using only weighted average ordinary shares outstanding. Diluted earnings per share, if relevant, gives effect to dilutive potential ordinary shares outstanding during the year. Such dilutive shares consist of incremental shares, using the treasury stock method, from the assumed exercise of share options. For the year ended December 31, 2016, the effect of the exercise of outstanding dilutive potential share options has been included in computing dilutive earnings per ordinary share. For the year ended December 31, 2015, the effect of the exercise of all outstanding share options is anti-dilutive and has not been included in computing dilutive loss per ordinary share. For the year ended December 31, 2014, the effect of the exercise of outstanding dilutive potential share options and Restricted Share Units ("RSUs") has been included in computing dilutive earnings per ordinary share (see Note 16). R. Share-based compensation The Company accounts for its employee share-based compensation as an expense in the financial statements. All awards are equity classified and therefore such cost is measured at the grant date fair value of the award. The Company estimates share option grant date fair value using the Black-Scholes-Merton option-pricing model. (For details see Note 15). S. Fair value measurements The Company implements the provisions of ASC Topic 820 " Fair Value Measurements and Disclosures Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. (For details see Note 21). T. Derivative instruments The Company enters into option contracts and forward exchange agreements in order to reduce its exposure with respect to various commitments in currencies other than the dollar and in connection with expenses in New The Company does not issue or hold derivative financial instruments for trading purposes, but rather to manage its foreign currency exposure. Nevertheless, these transactions do not meet all the conditions for hedge accounting and accordingly, the changes in fair value of such instruments are recorded directly to financial income (expenses), net. The Company’s foreign exchange derivative contracts are marked-to-market based on the determined fair value of open contracts at period end. (See Note 14). U. Contingent liabilities A contingency (provision) is an existing condition or situation involving uncertainty as to the range of possible loss to the entity. A provision for claims is recognized if it is probable (likely to occur) that a liability has been incurred and the amount can be estimated reasonably. V. Government-sponsored research and development The Company records grants received from the Office of the Chief Scientist of the Israeli Ministry of Industry and Trade (the “OCS”) as a liability, if it is probable that the Company will have to repay the grants received. If it is not probable that the grants will be repaid, the Company records the grants as a reduction to research and development expenses. Royalties paid to the OCS are recognized as a reduction of the above-mentioned liability. The Company accounts for OCS liabilities acquired in business combinations within the confines of debt obligations and as such changes in the liability from period to period, caused by changes to the estimated timing of future repayments and accrued interest, are accounted for prospectively by adjusting the effective interest rate of the obligations. Acquired liabilities to the OCS are not recognized if it is not probable that the Company will have to repay the grants received (See Note 12 and Note 13F). W. Recently issued and adopted accounting standards · In April 2014, the FASB issued ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. ASU 2014-08 changes the requirements for reporting discontinued operations. This ASU limits discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have a major effect on an entity’s operations and financial results. The Company elected to early adopt this ASU as of January 1, 2014. Accordingly, further to that mentioned in Note 1B, Sela division is not presented as a discontinued operation. X. New standards not yet adopted In May 2014, the FASB issued ASU No. 2014-09, " Revenue from Contracts with Customers In July 2015, the FASB issued ASU No. 2015-11, “Simplifying the Measurement of Inventory”. In November 2015, the FASB issued ASU No. 2015-17, “Balance Sheet Classification of Deferred Taxes” In February 2016, the FASB issued ASU No. 2016-02 “Leases” In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-1, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (viii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale. The ASU will take effect for fiscal years beginning after December 15, 2017. Management is currently assessing the potential impact of adopting this guidance on the Company’s consolidated financial statements. In March 2016, the Financial Accounting Standards Board (“FASB”) issued guidance on stock compensation. The guidance is intended to simplify several aspects of the accounting for share-based payments, including income tax consequences, classification of awards as either equity or liabilities, and classification in the statement of cash flows. The guidance will be effective for fiscal years beginning after December 15, 2016, including interim periods within that year. The Company does not expect the adoption of ASU 2016-09 will have a material effect on its Consolidated Financial Statements. In August 2016, FASB issued ASU 2016-15 “Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments”, which is intended to provide specific guidance on the certain eight cash flow classification issues included in the amendments in this Update. The guidance is effective for fiscal years beginning after December 15, 2017, and early adoption is permitted for all entities. Management is currently assessing the potential impact of adopting this guidance on the Company’s consolidated financial statements. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2016 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | Note 3 - Cash and Cash Equivalents December 31, 2016 2015 U.S. Dollars Bank 19,740 30,743 Restricted cash - 90 19,740 30,833 As of December 31, 2015, $90 were restricted against credit lines to banking institutions in Hong Kong (denominated in Hong Kong The Company’s cash and cash equivalent balance at December 31, 2016 and 2015 is denominated in the following currencies: December 31, 2016 2015 U.S. Dollars US Dollars 15,209 26,703 Euro 1,548 770 Chinese RMB 1,211 640 New Israeli 1,054 2,002 Other currencies 718 718 19,740 30,833 |
Short-term restricted deposits
Short-term restricted deposits | 12 Months Ended |
Dec. 31, 2016 | |
Short-term restricted deposits [Abstract] | |
Short-term restricted deposits | Note 4 - Short-term restricted deposits The Company’s obligations to Bank Mizrahi in connection with the issuance of the appeal bond in March 2015, were secured by restricted deposits in the amount of approximately $7,875 as well as by a lien on its facility in Israel and a floating charge on its assets. The appeal bond was due to expire in September 2016, but was cancelled, and the restrictions upon the deposits were removed, upon payment of the liability in respect of the litigation loss in August 2016. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2016 | |
Inventories [Abstract] | |
Inventories | Note 5 - Inventories December 31, 2016 2015 U.S. Dollars Components 13,995 12,739 Work in process 5,180 6,453 Finished products * 8,380 10,386 27,555 29,578 * includes systems at customer locations not yet sold, as of December 31, 2016 and 2015, in the amount of $3,109 and $4,612 respectively. Inventories are presented in: December 31, 2016 2015 U.S. Dollars Current assets 25,448 27,599 Long-term assets (A) 2,107 1,979 27,555 29,578 (A) Long-term Inventory: At December 31, 2016, $2,107 of the Company's inventory is classified in long-term assets based on Management’s estimate and the recent level of sales (at December 31, 2015- $1,979). This amount is comprised of spare parts (at December 31, 2015 - $1,326). The Company’s policy is to keep components to provide support and service to systems sold by it to its customers over the past years (usually the support is over a period of seven to ten years) until the Company announces it will not continue to support certain systems. Therefore, this inventory is usually consumed over longer periods than inventory held for sale, and as such the respective amount that is not expected to be consumed in the next year is classified as non-current. Management believes that this amount will be utilized according to its forecasted sales. Management believes no loss will be incurred on its disposition. As of December 31, 2015, the remaining portion of long-term inventory consisted of Gryphon systems which in Management's estimation would not be sold during the following 12 months. (B) Inventory write-down As of December 31, 2016, based on Management's decision to cease the marketing of the Gryphon systems, an obsolescence provision was recorded in the amount of $4,841, (2015 -$1,041) against inventory. As of December 31, 2015, based on Management's estimates regarding future sales, a provision of $133 was recorded in the costs of products sold line item in the consolidated statement of operations against damaged, obsolete, excess and slow-moving inventory. The provisions were recorded in the costs of products sold line item in the consolidated statement of operations. The provisions result in a new cost basis that is not subsequently marked up based on changes in underlying facts and circumstances. As a result of the above mentioned, the total amount of the inventory write-down for the year ended December 31, 2016 is $4,841 (2015 - $1,174). |
Other Current Assets
Other Current Assets | 12 Months Ended |
Dec. 31, 2016 | |
Current assets | |
Other Current Assets | Note 6 - Other Current Assets December 31, December 31, 2016 2015 U.S. Dollars Due from Government institutions 1,741 182 Prepaid expenses 484 600 Advances to suppliers 169 220 Deposits for operating leases 165 203 Other 188 507 2,747 1,712 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant and Equipment, Net | Note 7 - Property, Plant and Equipment, Net December 31, 2016 2015 U.S. Dollars Cost: Land 863 863 Building 11,109 10,764 Machinery and equipment 6,443 6,260 Office furniture and equipment 1,277 1,225 Computer equipment and software 4,012 4,996 Automobiles 87 87 Leasehold improvements 1,108 1,130 24,899 25,325 Less accumulated depreciation 10,790 11,794 14,109 13,531 Depreciation expenses for the years ended December 31, 2016, 2015 and 2014 amounted to $1,904, $1,849, and $1,937, respectively. In accordance with agreements signed in August 2010 and August 2011 with Bank Leumi L’Israel and in August 2011 and March 2015 with Bank Mizrahi, a lien has been placed on the Company’s facility in Israel. See Note 13(D) and Note 13(E). |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2016 | |
Other Assets [Abstract] | |
Other Assets | Note 8 - Other Assets December 31, 2016 2015 U.S. Dollars Deposits for operating leases 270 248 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets, Net [Abstract] | |
Goodwill and Intangible Assets, Net | Note 9 - Goodwill and Intangible Assets, Net A. Goodwill December 31, 2016 2015 U.S. Dollars Goodwill 2,130 3,653 Accumulated impairment losses (2,130 ) (3,653 ) - - 1. Printar During 2015, delays in marketing the Gryphon system resulted in an impairment of the Company’s goodwill and IPR&D recorded in the Printar acquisition. As of December 31, 2015, based on the Company’s annual impairment tests, an impairment charge of $1,555 was recognized for the remaining goodwill recorded in the Printar acquisition. The impairment charge was recorded in a separate line item within operating expenses in the consolidated statement of operations. See also Note 1(B). B. Intangible assets, net December 31, 2016 2015 U.S. Dollars Patent registration costs 2,382 2,077 IPR&D 1,002 1,002 Intangible assets at cost 3,384 3,079 Accumulated amortization and impairment 2,519 2,284 Total intangible asset, net 865 795 Patent registration costs are amortized over their estimated useful life of 10 years. Amortization expense for the years ended December 31, 2016, 2015 and 2014 amounted to $235, $211 and $234, respectively. The amortization expense for 2016 includes the write-off of patents with a net value of $7 which were abandoned (in 2015 and 2014 - $7 and $37, respectively). In 2015, the Company recorded an impairment charge of $40 with respect to the remaining IPR&D based on the annual impairment test as determined using the present value of future cash flows (see also Note 9A). The impairment charge was recorded in a separate line item within operating expenses in the consolidated statement of operations. As of December 31, 2016, the estimated amortization expenses of intangible assets for the years 2017 to 2021 is as follows: Year ending December 31, U.S. Dollars 2017 143 2018 143 2019 143 2020 142 2021 92 663 |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Other Current Liabilities [Abstract] | |
Other Current Liabilities | Note 10 - Other Current Liabilities December 31, 2016 2015 U.S. Dollars Accrued employee compensation and related benefits 7,071 6,634 Commissions 4,351 2,876 Advances from customers and deferred revenues 2,290 1,961 Accrued expenses 2,277 2,446 Accrued warranty costs (1) 1,459 1,448 Government institutions 874 737 Liability in respect of litigation - 14,600 Current maturities of OCS liability - 10 18,322 30,712 (1) Changes in the accrued warranty costs are as follows: Year Ended December 31, 2016 2015 2014 U.S. Dollars Beginning of year 1,448 1,151 1,304 New warranties 2,438 2,472 2,152 Reductions (2,427 ) (2,175 ) (2,305 ) Balance at end of year 1,459 1,448 1,151 |
Liability for Employee Severanc
Liability for Employee Severance Benefits | 12 Months Ended |
Dec. 31, 2016 | |
Liability for Employee Severance Benefits [Abstract] | |
Liability for Employee Severance Benefits | Note 11 - Liability for Employee Severance Benefits Under Israeli law and labor agreements the Company is required to pay severance payments to each employee who was employed by the Company for over one year and has been terminated by the Company or resigned under certain specified circumstances. The liability related to these severance payments is calculated on the basis of the latest salary of the employee multiplied by the number of years of employment as of the balance sheet date. The Company also has defined contribution plans for which it makes contributions to severance pay funds and appropriate insurance policies. Withdrawal of the reserve monies is contingent upon the fulfillment of detailed provision in the Severance Law. Under local law in various territories in which the Company operates, employees with one year or more of service are entitled to receive a lump-sum payment upon termination of their employment based on their length of service and rate of pay at the time of termination. 1. The liability in respect of most of its employees is discharged by participating in a defined contribution pension plan and making regular deposits with a pension fund or by individual insurance policies. The liability deposited with the pension fund is based on salary components as prescribed in the existing labor agreement. The custody and management of the amounts so deposited are independent of the companies and accordingly such amounts funded (included in expenses on an accrual basis) and related liabilities are not reflected in the balance sheet. 2. The liability for severance pay which is not covered by the contribution plan amounted to $870 and $772 as of December 31, 2016 and 2015, respectively. 3. Severance pay expenses were $1,202, $1,104, and $1,145 in 2016, 2015 and 2014, respectively. |
Other Long-Term Liabilities
Other Long-Term Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Other Long-Term Liabilities [Abstract] | |
Other Long-Term Liabilities | Note 12 - Other Long-Term Liabilities December 31, 2016 2015 U.S. Dollars Liability to OCS, mainly in respect of business combinations (1) - 4,768 (1) Liability to OCS as of December 31, 2015 was in respect of the acquisition of Printar and new grants received in 2010 and 2009. The effective interest rate used to discount the cash flow for the liabilities to the OCS in respect of the acquisition of Printar as of December 31, 2015 was 13%. See Note 10 for current maturities of liability to OCS and Note 1B and Note 13F regarding the reorganization of the FIT activity. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 13 - Commitments and Contingencies A. Operating leases The Company’s subsidiaries have entered into various non-cancelable operating lease agreements, principally for office space. In addition, in 2013 and 2015, the Company entered into new framework agreements for non-cancelable operating leases for vehicles for periods of 36 months. As of December 31, 2016, minimum future rental payments under such non-cancelable operating leases are as follows: Year Ending December 31, U.S. Dollars 2017 1,422 2018 1,156 2019 677 Thereafter 456 3,711 Aggregate office rent expenses amounted to $966, $966, and $845 in 2016, 2015 and 2014, respectively. B. Allowance for doubtful debts The following is a summary of the allowance for doubtful accounts related to accounts receivable for the years ended December 31: Balance at Balance at beginning Reversal of Write-off of end of of period Provision provision provision period U.S. Dollars 2014 1,361 344 (164 ) (15 ) 1,526 2015 1,526 215 (141 ) (8 ) 1,592 2016 1,592 158 (392 ) - 1,358 C. Litigation 1. On July 14, 2005, Rudolph filed a lawsuit against the Company in the United States District Court for the District of Minnesota (the "Court"). This suit alleged that the Company's Falcon inspection system infringed Rudolph's U.S. Patent No. 6,826,298 (the "'298 Patent") and sought injunctive relief and damages. After the entry of a jury verdict in Rudolph’s favor and two appeals to the Federal Circuit Court of Appeals, judgment was eventually entered in favor of Rudolph on February 3, 2016 for approximately $14.5 million in damages and plus interest, together amounting to approximately $14.6 million. An injunction also issued preventing the Company from selling the Falcon or colorable imitations of it in the United States. The Company has not sold the Falcon in the United States for a number of years. In August 2016 the abovementioned amount of approximately $14.6 million was paid to Rudolph, by forfeiture of a bond that had been posted on the Company’s behalf for the appeal, and a satisfaction of judgment was filed. In connection with such satisfaction of judgment, the Israeli tax authorities contacted the Company regarding a deduction of tax at source in the amount of approximately $2.4 million. Based on the advice of its professional consultants, the Company maintains its position that no tax deduction at source was required in connection with the forfeiture of bond, and is in the process of discussing the issue with applicable Israeli tax authorities. No tax assessment was issued by the tax authorities on the matter. 2. After the first jury verdict in the ‘298 case, Rudolph filed suit in the District of Minnesota alleging that Camtek’s Condor and Gannett inspection products infringed U.S. Patent 7, '528 Patent PTO 3. On March 2015, Rudolph initiated a new lawsuit against the Company in the District Court alleging that the Eagle product infringes the '298 Patent in the United States. Rudolph sought a preliminary injunction which was denied. The parties have completed both fact and expert discovery and have numerous summary judgement and evidentiary motions set for hearing in May 2017. Rudolph is seeking lost profits and/ or reasonable royalty damages for Eagle systems sold by the Company in the United States, along with interest and a possible multiplier of up to three times for willful infringement. The Company is vigorously defending this suit and believes that it does not infringe either asserted claim. D. Agreement with Bank Leumi L’Israel (“BLL”) In 2010, the Company was required to secure its obligations to BLL by a lien on its facility in Israel and a floating charge on its assets. Despite the completion of these obligations, these securities are still in place in order to facilitate the possibility of future credit. In 2016, BLL provided a guarantee to the Israeli Ministry of Economy on behalf of the Company in the amount of NIS 50,000 in respect of construction carried out on land belonging to the Israel Land Authority. E. Agreement with Bank Mizrahi In July 2011 the Company signed an agreement with Bank Mizrahi for a credit facility. The Company’s obligations to the Bank were secured by a lien on its facility in Israel and a floating charge on its assets. As of December 31, 2016 the credit facility has not been utilized. In connection with the issuance of the appeal bond, in March 2015 the Company signed a further agreement with Bank Mizrahi, according to which the bank provided a bank guarantee in the amount of $15,750 in order to support the appeal bond, which was issued by a surety company in the United States. The Company’s obligations to the bank were secured by a lien on its facility in Israel, restricted deposits in the amount of approximately $7,875 and a floating charge on its assets. Following the payment to Rudolph in August 2016, the bank guarantee and the restricted deposits were removed. In addition, the Company signed a covenant agreement with the bank which requires it to comply with certain financial covenants. As of December 31, 2016, the Company was in full compliance with the financial covenants. F. Chief Scientist Through its acquisition of Printar, the Company participates in programs sponsored by the Israeli government for the support of research and development activities. The Company is committed to pay amounts to the Chief Scientist (OCS) at rates of 3.5% of the sales of products resulting from this research and development, up to an amount equal to 100% of the grants received by the Company, bearing interest at the rate of LIBOR. The obligation to pay these royalties is contingent on actual sales of the products and in the absence of such sales, no payment is required. As of December 31, 2016, the amount of non-repaid grants received including interest accrued in respect of Printar amounted to $6,503 (December 31, 2015 - $6,256). The liabilities to the OCS were initially recorded at fair value as part of the purchase price allocation related to the acquisition of Printar. In August 2016, pursuant to the Company’s decision to cease supporting the Gryphon system and to develop the next generation of digital printer, the Company does not expect any payments will be made in respect of the foregoing Printar related grants and accordingly all the liabilities to the OCS were written off. (December 31, 2015 - $4,130). (See Note 12 – Other long-term liabilities). In 2009 and 2010, the Company received further grants in the amount of $598 ($648 including accrued interest) from the OCS in connection with the research and development activities related to the Printar acquisition. G. Dispute with Chief Scientist A dispute has arisen between the Company and the OCS in Israel regarding the royalty rate to be paid in respect of certain of the Company’s products, the manufacturing and assembly of which has been moved to a foreign subsidiary. Management, based on an opinion of its legal advisors, believes that the probability of an unfavorable resolution to this dispute is less than 50%. Accordingly, no accrual has been recorded in the financial statements in respect of this matter. H. Outstanding Purchase Orders As of December 31, 2016, the Company has purchase orders of $10,191 (2015 - $8,959) which mainly represent outstanding purchase commitments for inventory components ordered by the Company in the normal course of business. |
Concentration of Risk and Finan
Concentration of Risk and Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Concentration of Risk and Financial Instruments [Abstract] | |
Concentration of Risk and Financial Instruments | Note 14 - Concentration of Risk and Financial Instruments Financial instruments that potentially expose the Company to concentrations of credit risk consist of cash equivalents, short-term bank deposits and trade receivables. The carrying amounts of financial instruments approximate fair value. Cash and cash equivalents The Company's cash equivalents are maintained with multiple high-quality institutions and the composition and maturities of investments are regularly monitored by management. Trade receivable The trade receivables of the Company are derived from sales to a large number of customers, primarily large industrial corporations located mainly in Asia, the United States and Europe. The Company generally does not require collateral: however, in certain circumstances, the Company may require a letter of credit, other collateral or additional guarantees. An allowance for doubtful accounts is determined with respect to those amounts that the Company has determined to be doubtful of collection. The Company performs ongoing credit evaluations of its customers. Trade payable The Company relies on limited source of suppliers and in some cases a sole supplier and/or subcontractors for a number of essential components and subsystems of its products. The Company does not have agreements with all of these suppliers and subcontractors for the continued supply of the components or subsystems they provide. An interruption in supply from these sources would disrupt production and adversely affect the Company’s ability to deliver products to its customers, which could have an adverse effect on the Company’s business, revenues and results of operations. Liquidity: The Company anticipates that its existing resources and cash flows from operations will be adequate to satisfy its liquidity requirements through calendar year 2017. If available liquidity will not be sufficient to meet the Company’s operating obligations as they come due, Management’s plans include pursuing alternative financing arrangements or reducing expenditures as necessary to meet the Company’s cash requirements throughout 2017. Derivative Instruments From time to time the Company enters into foreign exchange instruments to manage its U.S. Dollar to NIS currency exchange risks. The terms of all of these currency instruments are less than one year. As of December 31, 2016, the Company did not have any open instruments. The fair value of the instruments generally reflects the estimated amounts that the Company would receive or pay upon termination of the contracts at the reporting date. The Company’s derivative instruments are measured at fair value on the measurement date using Level 2 inputs. Such instruments had a combined fair value gain (loss) of ($3) and $92 for the years ended December 31, 2016 and 2015, respectively, based on quotations from financial institutions. The Company does not apply hedge accounting. Gains /losses on these instruments are recognized in the consolidated statement of operations. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | Note 15 - Shareholders’ Equity A. General The Company shares are traded on the NASDAQ National Market under the symbol of CAMT, and also listed and traded on the Tel-Aviv stock exchange. B. Share issues In May 2015, the Company completed a public offering of its shares on NASDAQ in which it issued 4,655,982 shares at a price of $2.85 per share, raising net proceeds of $11,904. C. Purchase of Ordinary Shares On September 17, 2001, the Company announced that the Board of Directors authorized a share repurchase program to acquire up to $3,000 of the Company's ordinary shares from time to time in open market transactions. During September 2001, the Company purchased 250,000 ordinary shares at a cost of $592 and during 2002 the Company purchased 761,619 ordinary shares at a total cost of $401 in connection with such program. In 2008, the Board of Directors authorized a further share repurchase program Repurchases will not exceed a total aggregate price of $2,000. In 2008 1,080,757 shares were repurchased for an aggregate price of $905. D. Stock Option Plan As of December 31, 2016, the Company has six stock option plans for employees and directors. Future options will be granted only pursuant to the 2014 Share Option Plans described below. In October 2003, the Company adopted a stock option plan (the Plan) pursuant to which the Company’s Board of Directors may grant stock options to officers and key employees. The total number of options which may be granted to directors, officers, employees and consultants under this plan, is limited to 1,598,800 options. Stock options can be granted with an exercise price equal to or less than the stock’s fair market value at the date of grant. All stock options have 10 year terms and vest and become fully exercisable after 4 years from the date of grant. On December 30, 2013, the Board of Directors elected to further extend the period of 2003 share option plan until June 30, 2014. In October 2014, the Company adopted a 2014 Share Plan and its corresponding Sub-Plan for Grantees Subject to United States Taxation and Sub-Plan for Grantees Subject to Israeli Taxation which replaced the 2003 Share Option Plan. The total number of options that may be granted under the 2014 Share Option Plan is 3,000,000 options. The fair value of each option award is estimated on the date of grant using the Black-Scholes-Merton option-pricing model that used the weighted average assumptions in the following table. The risk‑free rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant. 2016 Grant 2015 Grant Valuation assumptions: Dividend yield 0 0 Expected volatility 66% 67%-68% Risk-free interest rate 1.38% 1.6%-2.16% Expected life (years) 4.8 4.8 Vesting period (years) 4 4 In the years ending December 31, 2016, 2015 and 2014, 527,500, 464,335 and 296,000 options were granted, respectively. The total intrinsic value of outstanding as options as of December 31, 2016, 2015, and 2014 is $1,040, $45 and $205, respectively. The total intrinsic value of vested options as of December 31, 2016, 2015, and 2014 is $204, $38 and $87 respectively. The total stock option compensation expense amounted to $429, $270, and $308 in 2016, 2015 and 2014, respectively. As of December 31, 2016, there was $1,082 of total unrecognized compensation cost related to nonvested share-based compensation arrangements. That cost is expected to be recognized over a weighted-average period of 1.86 years. Share option activity during the past three years is as follows: Year Ended December 31, 2016 2015 2014 Weighted Weighted Weighted Number average Number average Number average of exercise of exercise of exercise options price US$ options price US$ options price US$ Outstanding at January 1 1,151,121 3.28 833,799 3.34 735,519 2.99 Granted 527,500 1.92 464,335 2.99 296,000 3.53 Forfeited and cancelled (25,187 ) 5.00 (122,952 ) 2.95 (108,724 ) 2.47 Exercised - 0.00 (24,061 ) 1.40 (88,996 ) 2.14 Outstanding at year end 1,653,434 2.82 1,151,121 3.28 833,799 3.34 Vested at year end 725,466 3.32 461,192 3.48 423,291 3.56 Weighted Aggregate Number Weighted Average intrinsic of average Remaining Value (in options exercise Contractual US$ outstanding price US$ term (years) thousands) Outstanding as of December 31, 2016 1,653,434 2.82 5.21 1,039.93 Vested and expected to vest at December 31, 2016 1,607,036 2.82 5.21 998.13 Exercisable at December 31, 2016 725,466 3.32 4.45 203.98 The following table summarizes information about share options at December 31, 2016: Weighted average Number of remaining outstanding Number contractual Exercise price US$ options exercisable life in years 0-2 597,500 62,706 6.23 3-5 1,055,934 662,760 4.64 1,653,434 725,466 5.21 The following table summarizes information about nonvested options at December 31, 2016: Weighted average grant- date Options fair value Balance at January 1, 2016 689,929 1.55 Granted 527,500 1.17 Vested (289,461 ) 1.78 Forfeited - - Balance at December 31, 2016 927,968 1.26 E. Restricted Share Unit Plan In August 2007, the Company adopted a Restricted Share Unit (“RSU”) Plan (the “Plan”) pursuant to which the Company’s Board of Directors may grant shares to officers and key employees . The exercise price for each grantee shall be as determined by the Board and specified in the applicable RSU notice of grant; provided, however, that unless otherwise determined by the Board (which determination shall not require shareholder approval unless so required in order to comply with Mandatory Law), the exercise price shall be no more than the underlying share’s nominal value. For the removal of any doubt, the Board is authorized (without the need for shareholder approval unless so required in order to comply with Mandatory Law) to determine that the exercise price of an RSU is to be $0.00. Unless otherwise determined by the Board with respect to any specific grantee or to any specific grant, (which determination shall not require shareholder approval unless so required in order to comply with Mandatory Law) and provided accordingly in the applicable RSU notice of grant, the RSUs shall vest (become automatically exercised) according to the vesting schedules as determined by the Board. Forfeited units are returned to the pool. No restricted shares were awarded in the three year period ended December 31, 2016. The total unrecognized compensation cost amounted to $0. As of the balance sheet date the number of RSU’s available for grant was 670,129. There was no activity under the Restricted Share Unit Plan in 2016. |
Earnings Per Ordinary Share
Earnings Per Ordinary Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings (loss) per ordinary share: | |
Earnings Per Ordinary Share | Note 16 - Earnings Per Ordinary Share The following table summarizes information related to the computation of basic and diluted earnings per Ordinary Share for the years indicated: Year Ended December 31, 2016 2015 2014 U.S. Dollars (In thousands, except per share data) Net income (loss) attributable to Ordinary Shares 4,734 (10,113 ) 3,337 Weighted average number of Ordinary Shares outstanding used in basic earnings per Ordinary Share calculation 35,348 33,352 30,464 Add assumed exercise of outstanding dilutive potential Ordinary Shares 28 - 81 Weighted average number of Ordinary Shares Outstanding used in diluted earnings per Ordinary Share calculation 35,376 33,352 30,545 Basic income (loss) per Ordinary Share 0.13 (0.30 ) 0.11 Diluted income (loss) per Ordinary Share 0.13 (0.30 ) 0.11 Number of options excluded from the diluted earnings per share calculation due to their anti-dilutive effect 1,538 1,151 391 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Information [Abstract] | |
Segment Information | Note 17 - Segment Information Description of segments: The Company's segment information has been prepared in accordance with ASC 280, "Segment Reporting." Operating segments are defined as components of an enterprise engaging in business activities about which separate financial information is available that is evaluated regularly by the CODM in deciding how to allocate resources and assess performance. The Company's CODM is its Active Chairman and Chief Executive Officer, who evaluates the Company's performance and allocates resources based on segment revenues and operating income. The Company's reportable segments are as follows: semiconductor fabrication industry (“microelectronics”) and printed circuit boards industry (“PCB”). Microelectronics - The semiconductor fabrication industry produces integrated circuits on silicon (or other semiconductor materials) wafers; each wafer contains numerous integrated circuits dices which are small block of semiconducting material on which a given functional circuit is fabricated. PCB - A printed circuit board is the basic platform that supports and interconnects a broad range of electronic components, such as integrated circuit devices, resistors, capacitors, coils and the like, and enables them to operate as an electronic system. Printed circuit boards consist of traces, or lines, of conductive material, such as copper, laminated on either a rigid or a flexible insulating base. Segment data: The Company derives the results of its business segments directly from its internal management reporting system and by using certain allocation methods. The accounting policies the Company uses to derive business segment results are substantially the same as those the Company uses for consolidation of its financial statements. The CODM measures the performance of each business segment based on several metrics, including earnings from operations. The CODM uses these results, in part, to evaluate the performance of, and to assign resources to, each of the business segments. The Company does not allocate to its reportable segments certain operating expenses, which it manages separately at the corporate level. The Company does not allocate any assets to segments and, therefore, no amount of assets is reported to management and disclosed in the financial information for segments. Selected operating results information for each business segment was as follows for the year ended December 31, 2016, 2015 and 2014: Year Ended December 31, Revenues Income (loss) from operations 2016 2015 2014 2016 2015 2014 U.S. Dollars U.S. Dollars PCB 30,476 30,138 30,480 (4,012 ) (5,902 ) (2,422 ) Microelectronics 79,047 69,137 57,833 11,942 (2,671 ) 9,922 Total 109,523 99,275 88,313 7,930 (8,573 ) 7,500 The reconciliation of segment operating results information to the Company’s consolidated financial information was as follows: Year Ended December 31, 2016 2015 2014 U.S. Dollars Income (loss) from operations 7,930 (8,573 ) 7,500 Unallocated general and administrative expenses 885 1,216 2,056 Share-based compensation expenses 429 270 308 Financial expenses 994 1,877 1,220 Consolidated income (loss) before taxes 5,622 (11,936 ) 3,916 Substantially all fixed assets are located in Israel and substantially all revenues are derived from shipments to other countries. Revenues are attributable to geographic areas/countries based upon the destination of shipment of products and related services as follows: Year Ended December 31, 2016 2015 2014 U.S. Dollars China and Hong Kong 34,276 30,158 28,526 Taiwan 27,718 24,854 17,495 Korea 16,491 13,208 8,889 Asia- Other 11,214 7,836 11,336 United States 10,563 10,219 12,518 Western Europe 5,079 5,380 5,739 Japan 4,182 7,035 3,204 Rest of the world - 585 606 109,523 99,275 88,313 |
Selected Income Statement Data
Selected Income Statement Data | 12 Months Ended |
Dec. 31, 2016 | |
Selected Income Statement Data [Abstract] | |
Selected Income Statement Data | Note 18 - Selected Income Statement Data A. Selling, general and administrative expenses Year Ended December 31, 2016 2015 2014 U.S. Dollars Selling (1) 16,575 16,208 14,337 General and administrative 8,926 7,379 7,080 25,501 23,587 21,417 (1) Including shipping and handling costs 1,034 1,014 879 B . Financial income (expenses), net Year Ended December 31, 2016 2015 2014 U.S. Dollars Interest and commission expense (288 ) (461 ) (6 ) Interest income 74 88 77 Re-evaluation of contingent consideration - (101 ) (258 ) Re-evaluation expense on liabilities to the OCS (183 ) (437 ) (370 ) Other, net (*) (597 ) (966 ) (663 ) (994 ) (1,877 ) (1,220 ) (*) Other, net includes foreign currency income (expense) resulting from transactions not denominated in U.S. Dollars amounting to $(435), $(786), and $(546) in 2016, 2015 and 2014, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | Note 19 - Income Taxes A. Tax under various laws The Company and its subsidiaries are assessed for income tax purposes on a separate basis. Each of the subsidiaries is subject to the tax rules prevailing in the country of incorporation. B. Details regarding the tax environment of the Israeli companies (1) Corporate tax rate Presented hereunder are the tax rates relevant to the Company in Israel for the years 2014-2016: 2014 – 26.5% 2015 – 26.5% 2016 – 25% On January 4, 2016 the Knesset plenum passed the Law for the Amendment of the Income Tax Ordinance (Amendment 216) - 2016, by which, inter alia, the corporate tax rate would be reduced by 1.5% to a rate of 25% as from January 1, 2016. Furthermore, on December 22, 2016 the Knesset plenum passed the Economic Efficiency Law (Legislative Amendments for Achieving Budget Objectives in the Years 2017 and 2018) – 2016, by which, inter alia, the corporate tax rate would be reduced from 25% to 23% in two steps. The first step will be to a rate of 24% as from January 2017 and the second step will be to a rate of 23% as from January 2018. Current taxes for the reported periods are calculated according to the enacted tax rates presented above, subject to the benefit under the Law for the Encouragement of Capital Investment. (2) Benefits under the Law for the Encouragement of Capital Investments (hereinafter - “the Encouragement Law”) (a) Approved and Beneficiary enterprise An industrial enterprise of the Company and a certain subsidiary were granted “Approved Enterprise” and “Beneficiary Enterprise” status in accordance with the Encouragement Law. The Company has chosen 2005 and 2010 as the years of election. The income generated by the “Beneficiary Enterprise” is exempt from tax over a period of up to 10 years beginning with the year in which the Company first had taxable income and subject to the years of election (limited to the earlier of a maximum period of 12 years from the year of election). The tax benefit of the Approved Enterprise has expired. The tax benefit period of the beneficiary enterprise that commenced operations in 2005 and 2007 ended and will end in 2014 and 2016, respectively, whereas the benefit period of the Beneficiary Enterprise that commenced operations in 2010 will end in 2021. The benefits are contingent upon compliance with the terms of the Encouragement Law, such provisions generally require that at least 25% of the Beneficiary Enterprise’s income will derive from export. The Company is currently in compliance with these terms. (b) Amendment to the Law for the Encouragement of Capital Investments – 1959 On December 29, 2010 the Knesset approved the Economic Policy Law for 2011-2012, which includes an amendment to the Law for the Encouragement of Capital Investments – 1959 (hereinafter – “the Amendment”). Companies could choose not to be included in the scope of the Amendment to the Encouragement Law and to stay in the scope of the law before its amendment until the end of the benefits period of its approved/beneficiary enterprise. On August 5, 2013 the Knesset passed the Law for Changes in National Priorities (Legislative Amendments for Achieving Budget Objectives in the Years 2013 and 2014) – 2013, which that as of 2014 tax year the tax rate on preferred income will be 9% for Development Area A in which the Company is situate and 16% for the rest of the country. On December 22, 2016, the Knesset plenum passed the Economic Efficiency Law (Legislative Amendments for Achieving Budget Objectives in the Years 2017 and 2018) – 2016, by which, inter alia, preferred enterprise in development area A will be subject to tax rate of 7.5% instead of 9% effective from January 1, 2017 and thereafter (the tax rate applicable to preferred enterprises located in other areas remains at 16%). (c) A company having a beneficiary enterprise that distributes a dividend from exempt income, will be required in the tax year of the dividend distribution to pay income tax on the amount of the dividend distributed at the tax rate that would have been applicable to it in the year the income was produced if it had not been exempt from tax. The Company intends to indefinitely reinvest the amount of its tax-exempt income and not distribute any amounts of its undistributed tax exempt income as a dividend. Accordingly, no deferred tax liabilities have been provided on income attributable to the Company's Approved and Beneficiating Enterprise Programs. Out of Camtek's retained earnings as of December 31, 2016 approximately $18,606 are tax-exempt earnings attributable to its Approved Enterprise and approximately $2,829 are tax-exempt earnings attributable to its Beneficiating Enterprise. The tax-exempt income attributable to the Approved and Beneficiating Enterprises cannot be distributed to shareholders without subjecting the Company to taxes. If these retained tax-exempt profits are distributed, the Company would be taxed at the reduced corporate tax rate applicable to such profits (currently – up to 25% pursuant to the implementation of the Investment Law). According to the Amendment, tax-exempt income generated under the Beneficiating Enterprise will be taxed upon dividend distribution or complete liquidation, whereas tax exempt income generated under the Approved Enterprise will be taxed only upon dividend distribution (but not upon complete liquidation, as the tax liability will be incurred by the shareholders). As of December 31, 2016, if the income attributed to the Approved Enterprise was distributed as a dividend, the Company would incur a tax of approximately $4,651. If income attributed to the Beneficiary Enterprise was distributed as dividend, or upon liquidation, the Company would incur a tax in the amount of approximately $707. These amounts will be recorded as an income tax expense in the period in which the Company declares the dividend. C. Details regarding the tax environment of the Non Israeli companies Non Israeli subsidiaries are taxed according to the tax laws in their countries of residence as reported in their statutory financial statement prepared under local accounting regulations. The in China is entitled to a 40% tax reduction from the standard tax rate of 25% to 15% starting January 1 2016. As of December 31, 2016, Camtek has not provided for income taxes on the undistributed earnings of approximately $12,850 of one of its major foreign subsidiaries since these earnings are intended to be indefinitely reinvested. The amount becomes taxable upon a distribution from the subsidiary or a sales of the subsidiary. A deferred tax liability will be recognized when the Company no longer demonstrates that it plans to indefinitely reinvest these undistributed earnings. It is not practicable to estimate the amount of additional taxes that might be payable on such undistributed earnings. However, liquidity deterioration in the future could require the Company to change its plans and repatriate all or a portion of these undistributed earnings, which may increase tax expenses and deferred tax liability. The Company’s management has determined not to distribute any amounts of its undistributed income from that specific subsidiary, as a dividend or otherwise, as such distribution would result in a tax liability. D. Composition of income (loss) before income taxes and income tax expense (benefit) Year Ended December 31, 2016 2015 2014 U.S. Dollars Income (loss) before income taxes: Israel 2,007 (13,807 ) 2,975 Non-Israeli 3,615 1,871 941 5,622 (11,936 ) 3,916 Income tax expense: Current: Israel 110 146 191 Non-Israeli 824 414 224 934 560 415 Deferred tax expense (benefit): Israel 620 (2,654 ) 38 Non-Israeli (666 ) 271 126 (46 ) (2,383 ) 164 888 (1,823 ) 579 E. Reconciliation of statutory tax expense to actual income tax The following is a reconciliation of the theoretical income tax expense, assuming all income is taxed at the statutory tax rate applicable to Israeli companies, and the actual income tax expense: Year Ended December 31, 2016 2015 2014 U.S. Dollars Income (loss) before income taxes 5,622 (11,936 ) 3,916 Statutory tax rate 25 % 26.5 % 26.5 % Theoretical income tax expense (benefit) 1,406 (3,163 ) 1,038 Increase (decrease) in income tax expense resulting from: Tax expense (benefits) arising from “Approved and Beneficiating Enterprises” and preferential tax rate in China (198 ) (523 ) (1,215 ) Change in valuation allowance(*) (721 ) 308 (40 ) Non-deductible expenses(**) 182 640 55 Differences between foreign currencies and dollar-adjusted financial statements-net 6 283 952 Foreign tax rate differential (63 ) (44 ) (13 ) Undistributed earnings of subsidiary - 490 - Change in tax rate 592 - - Other (316 ) 186 (198 ) Actual income tax expense (benefit) 888 (1,823 ) 579 Per share effect of the tax benefits arising from “Approved and Beneficiating Enterprises” and preferential tax rate in China: Basic $ 0.00 $ 0.00 $ (0.04 ) Diluted $ 0.00 $ 0.00 $ (0.04 ) (*) Included within the change in valuation allowance are realized benefits of operating loss carryforwards of $23, $134 and $42, for the years ended December 31, 2016, 2015 and 2014, respectively. (**) Including non-deductible share based compensation. F. Deferred tax assets and liabilities The tax effects of temporary differences and carryforwards that give rise to significant portions of the deferred tax assets and liabilities are presented below: December 31, 2016 2015 U.S. Dollars Deferred tax assets: Allowance for doubtful accounts 161 184 Accrued warranty 89 87 Unearned revenue 243 165 Accrued expenses 427 493 Net operating losses (NOL) and tax credit carryforwards 5,631 6,823 Other temporary differences * 504 197 Total gross deferred tax assets 7,055 7,949 Valuation allowance (2,222 ) (3,087 ) Deferred tax asset, net of valuation allowance 4,833 4,862 Deferred tax liability: Property, plant and equipment (223 ) (240 ) Undistributed earnings (433 ) (490 ) Net deferred tax assets 4,177 4,132 Other temporary differences in 2016 primarily relate to inventory write off provision Deferred tax assets are to be recognized for the anticipated tax benefits associated with net operating loss carryforwards and deductible temporary differences, unless it is more likely than not that some or all of the deferred tax assets will not be realized. The adjustment is made by a valuation allowance. In assessing the realizability of deferred tax assets, Management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. At December 31, 2016 and 2015 the Company had valuation allowance of $2,222 and $3,087 on certain of deferred tax assets. The net change in the total valuation allowance was a decrease of $865 for the year ended December 31, 2016, an increase of $134 for the year ended December 31, 2015 and a decrease of $656, for the years ended 2014, respectively. Included in the net change in the valuation allowance for the year ended December 31, 2015, is a reduction of $174 for a valuation allowance that was included in the net assets of a foreign subsidiary that was sold. The amount of the deferred tax asset considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carryforward period are reduced. As of December 31, 2016, the Company and its subsidiaries in Israel have regular NOL aggregating approximately $63,429 that will not expire. Included in this amount are NOLs of $17,819 that were generated from the Company filing separate tax returns from its domestic subsidiaries. Based on the earnings history of the Company’s operations in recent years, other than the loss from litigation, and Management’s expectation of continued profitability, Management believes that these losses will be utilized. As of December 31, 2016, the major foreign subsidiaries have NOL carryforwards aggregating approximately $946 that can be carried forward indefinitely. G. Accounting for uncertainty in income taxes For the years ended December 31, 2016, 2015 and 2014, the Company did not have any significant unrecognized tax benefits. In addition, the Company does not expect that the amount of unrecognized tax benefits will change significantly within the next twelve months. The Company accounts for interest and penalties related to an underpayment of income taxes as a component of income tax expense. For the years ended December 31, 2016, 2015 and 2014, no interest and penalties related to income taxes have been accrued. H. Tax assessments The Company and its subsidiaries in Israel file their income tax returns in Israel while its principle foreign subsidiaries file their income tax returns in Belgium, Hong Kong, United States of America and China. The Israeli tax returns of Camtek are open to examination by the Israeli Tax Authorities for the tax years beginning in 2011, in addition, the Israeli tax returns of SELA are open to examination by the Israeli Tax Authorities for the tax years beginning in 2012, while the tax returns of its principal foreign subsidiaries remain subject to examination for the tax years beginning in 1999 in Belgium, 2010 in Hong Kong and 2013 in the United States of America. |
Balances and Transactions with
Balances and Transactions with Related Parties | 12 Months Ended |
Dec. 31, 2016 | |
Balances and Transactions with Related Parties [Abstract] | |
Balances and Transactions with Related Parties | Note 20 - Balances and Transactions with Related Parties A. Balances with related parties: December 31, December 31, 2016 2015 U.S. Dollars Accounts receivable 20 79 Due from affiliated companies 77 559 B. Transactions with related parties: Year Ended December 31, 2016 2015 2014 U.S. Dollars Purchases from Parent and affiliates 3 43 93 Interest income (expense) from Parent (28 ) (9 ) 24 Sales to Parent and affiliated companies 145 109 297 Unpaid between Parent and its subsidiaries in Israel and the Company bear interest of 5.5%. Registration Rights Agreement with Parent On March 1, 2004, the Company entered into a registration rights agreement providing for the Company to register with the SEC certain of its ordinary shares held by Parent. This registration rights agreement may be used in connection with future offerings of ordinary shares, and includes, among others, the following terms: (a) Parent is entitled to make up to three demands that the Company registers its ordinary shares held Parent, subject to delay due to market conditions; (b) Parent will be entitled to participate and sell the Company’s ordinary shares in any future registration statements initiated by the Company, subject to delay due to market conditions; (c) the Company will indemnify Parent in connection with any liabilities incurred in connection with such registration statements due to any misstatements or omissions other than information provided by Parent, and Parent will indemnify the Company in connection with any liabilities incurred in connection with such registration statements due to any misstatements or omissions in written statements by Parent made for the purpose of their inclusion in such registration statements; and (d) Company will pay all expenses related to registrations which the Company has initiated, except for certain underwriting discounts or commissions or legal fees, and Parent will pay all expenses related to a registration initiated at its demand in which the Company is not participating. On December 30, 2004, the Registration Rights Agreement with Parent was amended. The amendment concerns primarily the grant of unlimited shelf registration rights thereunder to Parent with respect to its holdings in the Company, and the assignability of those shelf registration rights to its On May 13, 2015, following the approval of our Audit Committee and Board of Directors the Registration Rights Agreement with Priortech was renewed for an additional 5 year period effective as of December 31, 2014. Employment Agreements with the Active Chairman Pursuant to employment agreement with the Active Chairman of the Board of Directors and Chief Executive Officer ("Active Chairman") dedicates 10% of his time in providing consulting and management services for Parent through Amitec – Advanced Multilayer Interconnect Technologies Ltd. – a wholly owned subsidiary of the Parent ("Amitec"). The Active Chairman receives from the Company 90% of a time salary and is compensated directly by Amitec for the remaining 10% of his time. The Active Chairman of the Board of Directors serves as the Chairman of Parent, and does not receive any additional compensation for his service as the Company’s Active Chairman. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 21 - Fair Value Measurements The level in the fair value hierarchy within which an asset or liability is classified is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company measures its foreign currency derivative contracts and its long-term liabilities with respect to contingent consideration at fair value. The Company’s foreign currency derivative contracts are classified within Level 2, because they are valued utilizing market observable inputs. The long-term liabilities arising from contingent consideration are classified within Level 3 because they are valued using significant inputs that are unobservable in the market such as the Company’s weighted average cost of capital. As of December 31, 2016, the Company did not have any assets or liabilities measured at fair value on a recurring basis. The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2015, aggregated by the level in the fair-value hierarchy within which those measurements fall: Quoted Prices in Significant Active Markets for Significant Other Unobservable December 31, Identical Assets Observable Inputs Inputs Description 2015 (Level 1) (Level 2) (Level 3) U.S. Dollars Assets Foreign currency derivative contracts 3 - 3 - Total Assets 3 - 3 - The Company’s accounting policy is to recognize transfers between levels of the fair value hierarchy on the date of the event or change in circumstances that caused the transfer. There were no transfers into or out of level 1, level 2, or level 3 for the years ended December 31, 2016 and 2015. The following table present a roll-forward of the fair value of Level 3 (significant unobservable inputs) liabilities for the year ended December 31, 2015: Level 3 U.S. Dollars Contingent consideration December 31, 2014 1,900 Settlement of liabilities (2,001 ) Revaluation of fair value included in statement of operations 101 December 31, 2015 - The adjustments to fair value of the contingent consideration are recorded in the finance income (expense), net in the statement of operations. The fair value of the contingent payment for Printar as of December 31, 2014, was based on the $2,000 outstanding of the $2,500 transaction price, discounted from the estimated payment dates to the valuation date using the weighted average cost of capital of 28%. That measure is based on significant inputs that are not observable in the market, which ASC Section 820-10-35 refers to as Level 3 inputs. Key assumptions include management’s estimation about future sales. |
Significant Accounting Polici28
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Significant Accounting Policies [Abstract] | |
Basis of preparation of the financial statements | A. Basis of preparation of the financial statements The consolidated financial statements of Camtek and its subsidiaries (collectively “the Company”) have been prepared in accordance with accounting principles generally accepted in United States of America (“US GAAP”). All amounts in the notes to the financial statements are in thousands unless otherwise stated. |
Principles of consolidation | B. Principles of consolidation The accompanying consolidated financial statements include the accounts of Camtek and its subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation. |
Use of estimates | C. Use of estimates The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. As applicable to these financial statements, the most significant estimates and assumptions relate to revenue recognition, valuation of accounts receivable, inventories, goodwill, deferred tax assets, legal contingencies, contingent consideration and share based compensation among others. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. It is often difficult to accurately estimate the ultimate outcome of a contingent liability. Different variables can affect the timing and amount that management provides for certain contingent liabilities. The Company's assessments are therefore subject to estimates made by management and its legal counsel. Adverse revision in management estimates of the potential liability could materially impact the Company's financial condition, results of operations or liquidity. The Company adjusts such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. |
Foreign currency transactions | D. Foreign currency transactions The functional currency of the Company and its subsidiaries is the U.S. Dollar. Revenue generated by the Company and its subsidiaries is primarily generated outside of Israel and a majority thereof is received in U.S. Dollars. A significant portion of materials and components purchased and operating expenses incurred are either paid for in U.S. Dollars or in New Israeli Shekels (“NIS”). Transactions not denominated in U.S. Dollars are recorded upon their initial recognition according to the exchange rate in effect on the date of the transaction. Exchange rate differences arising upon the settlement of monetary items or upon reporting the Company’s monetary items at exchange rates different from that by which they were initially recorded during the period, or reported in previous financial statements, are charged to financial income (expenses), net. |
Cash and cash equivalents | E. Cash and cash equivalents All highly liquid investments purchased with original maturities of three months or less are considered to be cash equivalents. |
Trade accounts receivable and allowance for doubtful accounts | F. Trade accounts receivable and allowance for doubtful accounts Accounts receivable are recorded at the outstanding recognized amount and do not bear interest. The allowance for doubtful accounts represents Management’s best estimate of the probable loss inherent in existing accounts receivable balances as a result of possible non-collection. In determining the appropriate allowance, Management bases its estimate on information available about specific debtors, including aging of the balance, assessment of the underlying security received, the history of write-offs, relationships with the customers and the overall creditworthiness of the customers. |
Inventories | G. Inventories Inventories consist of completed systems, partially completed systems and components and other raw materials, and are recorded at the lower of cost or market. Cost is determined by the moving – average cost method basis. Inventory write-downs are recorded at the end of each fiscal period for damaged, obsolete, excess and slow-moving inventory. These write-downs, to the lower of cost or market value, create a new cost basis that is not subsequently marked up based on changes in underlying facts and circumstances. Management periodically evaluates its inventory composition, giving consideration to factors such as the probability and timing of anticipated usage and the physical condition of the items, and then estimates a charge (reducing the inventory) to be provided for slow moving, technological obsolete or damaged inventory. These estimates could vary significantly from actual use based upon future economic conditions, customer inventory levels or competitive factors that were not foreseen or did not exist when the inventory write-downs were established. Inventory that is not expected to be converted or consumed within the next year is classified as non-current, based on Management’s estimates taking into account market conditions. |
Property, plant and equipment | H. Property, plant and equipment These assets are stated at cost less accumulated depreciation, and are depreciated over their estimated useful lives on a straight-line basis. Annual rates of depreciation are as follows: Land 1% Building 2% Machinery and equipment 10% - 33% Computer equipment and software 20%-33% Office furniture and equipment 6% - 20% Automobiles 15% Leasehold improvements are amortized by the straight-line method over the shorter of the lease term or the estimated useful economic life of such improvements. Certain of the Company’s finished goods are systems used as demonstration systems, training systems, and for product development in the Company’s laboratories (“internal use”). These systems are identical to the systems that Camtek sells in its ordinary course of business. In circumstances where the Company intends to utilize such systems for its internal use, the Company transfers them from inventory to fixed assets. The rationale for the transfer is that the Company does not have the intention to sell these systems in the ordinary course of business but rather expects to use them for its internal use over their expected useful lives. These systems are recorded as fixed assets at cost and depreciated over their useful lives. |
Intangible assets | I. Intangible assets Patent registration costs are recorded at cost and amortized, beginning with the first year of utilization, over its expected useful life. Intangible assets purchased as part of the business combinations were recorded at their fair value and were amortized based on their remaining estimated useful lives. Acquired in-process research and development (IPR&D) began to be amortized upon the completion of the development of the associated technology. |
Goodwill | J. Goodwill Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Goodwill is reviewed for impairment at least annually in accordance with the provisions of FASB ASC Topic 350, Intangibles - Goodwill and Other As of December 31, 2015, based on the Company’s annual impairment test, impairment charges were recognized against the remaining goodwill. (See Note 10). |
Impairment of long-lived assets | K. Impairment of long-lived assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to undiscounted future cash flows expected to be generated by the asset. If the carrying amount of the long lived asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized to the extent that the asset’s carrying amount exceeds |
Fair values of financial instruments | L. Fair values of financial instruments The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, short-term deposits, short-term restricted deposits, trade accounts receivable, trade accounts payable and amounts from affiliates approximate fair value because of their short-term nature. The contingent consideration liabilities relating to the Company's business combinations are measured at fair value at each balance sheet date. |
Revenue recognition | M. Revenue recognition The Company recognizes revenue from sales of its products when the products are installed at the customer’s premises and are operating in accordance with its specifications, signed documentation of the arrangement, such as a signed contract or purchase order, has been received, the price is fixed or determinable and collectibility is reasonably assured. In the limited circumstances when the products are installed by a trained distributor acting as an end user, revenue is recognized upon delivery to the distributor assuming all other criteria for revenue recognition are met. Service revenues consist mainly of revenues from maintenance contracts and are recognized ratably over the contract period. For multiple-element arrangements the overall arrangement fee is allocated to each element (both delivered and undelivered elements) based on management’s best estimate of their selling price where other sources of evidence are unavailable. The revenue relating to the undelivered elements is deferred using the relative selling price method utilizing vendor-specific-objective evidence (“VSOE”) until delivery of the deferred elements. The Company’s multiple deliverable arrangements consist of product sales and non-standard warranties. A non-standard warranty is one that is for a period longer than 12 months. Accordingly, income from a non-standard warranty is deferred as unearned revenue and is recognized ratably as revenue commencing with and over the applicable warranty term. The Company routinely evaluates its products for inclusion of any embedded software that is more than incidental. Based on such evaluation, the Company has concluded that none of its products have such embedded software. |
Warranty | N. Warranty The Company records a liability for standard product warranty obligations at the time of sale based upon historical warranty experience. The term of the warranty is generally twelve months. For the Company’s treatment of non-standard warranties, see Note 2(M) – Revenue recognition. |
Income taxes | O. Income taxes The Company accounts for income taxes in accordance with the asset and liability method whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts and tax bases of assets and liabilities and are measured using the enacted tax rates and laws expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company provides a valuation allowance to reduce deferred tax assets to the amount that is more likely than not to be realized. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50 percent likely of being realized. Changes in recognition or measurement are reflected in the period in which the change occurs. Deferred tax liabilities and assets are classified as current or non-current based on the classification of the related asset or liability for financial reporting or, if not related to an asset or liability for financial reporting, according to the expected reversal dates of the specific temporary differences. |
Research and development | P. Research and development Research and development costs are expensed as incurred. |
Earnings / loss per ordinary share | Q. Earnings / loss per ordinary share Basic earnings/loss per ordinary share is calculated using only weighted average ordinary shares outstanding. Diluted earnings per share, if relevant, gives effect to dilutive potential ordinary shares outstanding during the year. Such dilutive shares consist of incremental shares, using the treasury stock method, from the assumed exercise of share options. For the year ended December 31, 2016, the effect of the exercise of outstanding dilutive potential share options has been included in computing dilutive earnings per ordinary share. For the year ended December 31, 2015, the effect of the exercise of all outstanding share options is anti-dilutive and has not been included in computing dilutive loss per ordinary share. For the year ended December 31, 2014, the effect of the exercise of outstanding dilutive potential share options and Restricted Share Units ("RSUs") has been included in computing dilutive earnings per ordinary share (see Note 16). |
Share-based compensation | R. Share-based compensation The Company accounts for its employee share-based compensation as an expense in the financial statements. All awards are equity classified and therefore such cost is measured at the grant date fair value of the award. The Company estimates share option grant date fair value using the Black-Scholes-Merton option-pricing model. (For details see Note 15). |
Fair value measurements | S. Fair value measurements The Company implements the provisions of ASC Topic 820 " Fair Value Measurements and Disclosures Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. (For details see Note 21). |
Derivative instruments | T. Derivative instruments The Company enters into option contracts and forward exchange agreements in order to reduce its exposure with respect to various commitments in currencies other than the dollar and in connection with expenses in New The Company does not issue or hold derivative financial instruments for trading purposes, but rather to manage its foreign currency exposure. Nevertheless, these transactions do not meet all the conditions for hedge accounting and accordingly, the changes in fair value of such instruments are recorded directly to financial income (expenses), net. The Company’s foreign exchange derivative contracts are marked-to-market based on the determined fair value of open contracts at period end. (See Note 14). |
Contingent liabilities | U. Contingent liabilities A contingency (provision) is an existing condition or situation involving uncertainty as to the range of possible loss to the entity. A provision for claims is recognized if it is probable (likely to occur) that a liability has been incurred and the amount can be estimated reasonably. |
Government-sponsored research and development | V. Government-sponsored research and development The Company records grants received from the Office of the Chief Scientist of the Israeli Ministry of Industry and Trade (the “OCS”) as a liability, if it is probable that the Company will have to repay the grants received. If it is not probable that the grants will be repaid, the Company records the grants as a reduction to research and development expenses. Royalties paid to the OCS are recognized as a reduction of the above-mentioned liability. The Company accounts for OCS liabilities acquired in business combinations within the confines of debt obligations and as such changes in the liability from period to period, caused by changes to the estimated timing of future repayments and accrued interest, are accounted for prospectively by adjusting the effective interest rate of the obligations. Acquired liabilities to the OCS are not recognized if it is not probable that the Company will have to repay the grants received (See Note 12 and Note 13F). |
Recently issued and adopted accounting standards | W. Recently issued and adopted accounting standards · In April 2014, the FASB issued ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. ASU 2014-08 changes the requirements for reporting discontinued operations. This ASU limits discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have a major effect on an entity’s operations and financial results. The Company elected to early adopt this ASU as of January 1, 2014. Accordingly, further to that mentioned in Note 1B, Sela division is not presented as a discontinued operation. |
New standards not yet adopted | X. New standards not yet adopted In May 2014, the FASB issued ASU No. 2014-09, " Revenue from Contracts with Customers In July 2015, the FASB issued ASU No. 2015-11, “Simplifying the Measurement of Inventory”. In November 2015, the FASB issued ASU No. 2015-17, “Balance Sheet Classification of Deferred Taxes” In February 2016, the FASB issued ASU No. 2016-02 “Leases” In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-1, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (viii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale. The ASU will take effect for fiscal years beginning after December 15, 2017. Management is currently assessing the potential impact of adopting this guidance on the Company’s consolidated financial statements. In March 2016, the Financial Accounting Standards Board (“FASB”) issued guidance on stock compensation. The guidance is intended to simplify several aspects of the accounting for share-based payments, including income tax consequences, classification of awards as either equity or liabilities, and classification in the statement of cash flows. The guidance will be effective for fiscal years beginning after December 15, 2016, including interim periods within that year. The Company does not expect the adoption of ASU 2016-09 will have a material effect on its Consolidated Financial Statements. In August 2016, FASB issued ASU 2016-15 “Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments”, which is intended to provide specific guidance on the certain eight cash flow classification issues included in the amendments in this Update. The guidance is effective for fiscal years beginning after December 15, 2017, and early adoption is permitted for all entities. Management is currently assessing the potential impact of adopting this guidance on the Company’s consolidated financial statements. |
Nature of Operations (Tables)
Nature of Operations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Nature of Operations [Abstract] | |
Schedule of Details of Impairment | The impact of these decisions on the consolidated statement of income in the years ended December 31, 2016, 2015 and 2014 was as follows: Year ended Year ended Year ended December 31, December 31, December 31, 2016 2015 2014 U.S. Dollars U.S. Dollars U.S. Dollars Account Nature of impact (in thousands) (in thousands) (in thousands) Cost of Revenues Reorganization and impairment 4,931 - - Cost of Revenues Inventory write-off - 1,041 205 Reorganization and Impairment charge with impairment respect of technology, customer relationships and goodwill - 1,595 - Reorganization and Revaluation of liabilities impairment in respect of Printar and SELA acquisition *(4,962 ) (1,457 ) (106 ) Reorganization and impairment Other 903 - 166 872 1,179 265 *see Note 13F |
Significant Accounting Polici30
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Significant Accounting Policies [Abstract] | |
Annual Rates of Depreciation | Annual rates of depreciation are as follows: Land 1% Building 2% Machinery and equipment 10% - 33% Computer equipment and software 20%-33% Office furniture and equipment 6% - 20% Automobiles 15% |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | December 31, 2016 2015 U.S. Dollars Bank 19,740 30,743 Restricted cash - 90 19,740 30,833 |
Cash and Cash Equivalents, Currencies | The Company’s cash and cash equivalent balance at December 31, 2016 and 2015 is denominated in the following currencies: December 31, 2016 2015 U.S. Dollars US Dollars 15,209 26,703 Euro 1,548 770 Chinese RMB 1,211 640 New Israeli 1,054 2,002 Other currencies 718 718 19,740 30,833 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventories [Abstract] | |
Schedule of Inventories | December 31, 2016 2015 U.S. Dollars Components 13,995 12,739 Work in process 5,180 6,453 Finished products * 8,380 10,386 27,555 29,578 * includes systems at customer locations not yet sold, as of December 31, 2016 and 2015, in the amount of $3,109 and $4,612 respectively. |
Balance Sheet Presentation of Inventories | Inventories are presented in: December 31, 2016 2015 U.S. Dollars Current assets 25,448 27,599 Long-term assets (A) 2,107 1,979 27,555 29,578 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Current assets | |
Other Current Assets | December 31, December 31, 2016 2015 U.S. Dollars Due from Government institutions 1,741 182 Prepaid expenses 484 600 Advances to suppliers 169 220 Deposits for operating leases 165 203 Other 188 507 2,747 1,712 |
Property, Plant and Equipment34
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment, Net [Abstract] | |
Schedule of Property, Plant and Equipment, Net | December 31, 2016 2015 U.S. Dollars Cost: Land 863 863 Building 11,109 10,764 Machinery and equipment 6,443 6,260 Office furniture and equipment 1,277 1,225 Computer equipment and software 4,012 4,996 Automobiles 87 87 Leasehold improvements 1,108 1,130 24,899 25,325 Less accumulated depreciation 10,790 11,794 14,109 13,531 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Assets [Abstract] | |
Other Assets | December 31, 2016 2015 U.S. Dollars Deposits for operating leases 270 248 |
Goodwill and Intangible Asset36
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets, Net [Abstract] | |
Goodwill | December 31, 2016 2015 U.S. Dollars Goodwill 2,130 3,653 Accumulated impairment losses (2,130 ) (3,653 ) - - |
Intangible Assets, Net | December 31, 2016 2015 U.S. Dollars Patent registration costs 2,382 2,077 IPR&D 1,002 1,002 Intangible assets at cost 3,384 3,079 Accumulated amortization and impairment 2,519 2,284 Total intangible asset, net 865 795 |
Estimated Amortization Expense | As of December 31, 2016, the estimated amortization expenses of intangible assets for the years 2017 to 2021 is as follows: Year ending December 31, U.S. Dollars 2017 143 2018 143 2019 143 2020 142 2021 92 663 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Current Liabilities [Abstract] | |
Schedule of Other Current Liabilities | December 31, 2016 2015 U.S. Dollars Accrued employee compensation and related benefits 7,071 6,634 Commissions 4,351 2,876 Advances from customers and deferred revenues 2,290 1,961 Accrued expenses 2,277 2,446 Accrued warranty costs (1) 1,459 1,448 Government institutions 874 737 Liability in respect of litigation - 14,600 Current maturities of OCS liability - 10 18,322 30,712 |
Changes In Product Warranty Obligation | Year Ended December 31, 2016 2015 2014 U.S. Dollars Beginning of year 1,448 1,151 1,304 New warranties 2,438 2,472 2,152 Reductions (2,427 ) (2,175 ) (2,305 ) Balance at end of year 1,459 1,448 1,151 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Long-Term Liabilities [Abstract] | |
Schedule of Other Long-Term Liabilities | December 31, 2016 2015 U.S. Dollars Liability to OCS, mainly in respect of business combinations (1) - 4,768 (1) Liability to OCS as of December 31, 2015 was in respect of the acquisition of Printar and new grants received in 2010 and 2009. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies [Abstract] | |
Minimum Future Rental Payments | As of December 31, 2016, minimum future rental payments under such non-cancelable operating leases are as follows: Year Ending December 31, U.S. Dollars 2017 1,422 2018 1,156 2019 677 Thereafter 456 3,711 |
Allowance For Doubtful Accounts | The following is a summary of the allowance for doubtful accounts related to accounts receivable for the years ended December 31: Balance at Balance at beginning Reversal of Write-off of end of of period Provision provision provision period U.S. Dollars 2014 1,361 344 (164 ) (15 ) 1,526 2015 1,526 215 (141 ) (8 ) 1,592 2016 1,592 158 (392 ) - 1,358 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Shareholders' Equity [Abstract] | |
Fair Value Assumptions | The risk‑free rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant. 2016 Grant 2015 Grant Valuation assumptions: Dividend yield 0 0 Expected volatility 66% 67%-68% Risk-free interest rate 1.38% 1.6%-2.16% Expected life (years) 4.8 4.8 Vesting period (years) 4 4 |
Stock Option Activity | Share option activity during the past three years is as follows: Year Ended December 31, 2016 2015 2014 Weighted Weighted Weighted Number average Number average Number average of exercise of exercise of exercise options price US$ options price US$ options price US$ Outstanding at January 1 1,151,121 3.28 833,799 3.34 735,519 2.99 Granted 527,500 1.92 464,335 2.99 296,000 3.53 Forfeited and cancelled (25,187 ) 5.00 (122,952 ) 2.95 (108,724 ) 2.47 Exercised - 0.00 (24,061 ) 1.40 (88,996 ) 2.14 Outstanding at year end 1,653,434 2.82 1,151,121 3.28 833,799 3.34 Vested at year end 725,466 3.32 461,192 3.48 423,291 3.56 |
Schedule of Options Outstanding | Weighted Aggregate Number Weighted Average intrinsic of average Remaining Value (in options exercise Contractual US$ outstanding price US$ term (years) thousands) Outstanding as of December 31, 2016 1,653,434 2.82 5.21 1,039.93 Vested and expected to vest at December 31, 2016 1,607,036 2.82 5.21 998.13 Exercisable at December 31, 2016 725,466 3.32 4.45 203.98 |
Information about Share Options | The following table summarizes information about share options at December 31, 2016: Weighted average Number of remaining outstanding Number contractual Exercise price US$ options exercisable life in years 0-2 597,500 62,706 6.23 3-5 1,055,934 662,760 4.64 1,653,434 725,466 5.21 |
Information about Nonvested Options | The following table summarizes information about nonvested options at December 31, 2016: Weighted average grant- date Options fair value Balance at January 1, 2016 689,929 1.55 Granted 527,500 1.17 Vested (289,461 ) 1.78 Forfeited - - Balance at December 31, 2016 927,968 1.26 |
Earnings Per Ordinary Share (Ta
Earnings Per Ordinary Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings (loss) per ordinary share: | |
Computation of Basic and Diluted Earnings (Loss) Per Ordinary Share | The following table summarizes information related to the computation of basic and diluted earnings per Ordinary Share for the years indicated: Year Ended December 31, 2016 2015 2014 U.S. Dollars (In thousands, except per share data) Net income (loss) attributable to Ordinary Shares 4,734 (10,113 ) 3,337 Weighted average number of Ordinary Shares outstanding used in basic earnings per Ordinary Share calculation 35,348 33,352 30,464 Add assumed exercise of outstanding dilutive potential Ordinary Shares 28 - 81 Weighted average number of Ordinary Shares Outstanding used in diluted earnings per Ordinary Share calculation 35,376 33,352 30,545 Basic income (loss) per Ordinary Share 0.13 (0.30 ) 0.11 Diluted income (loss) per Ordinary Share 0.13 (0.30 ) 0.11 Number of options excluded from the diluted earnings per share calculation due to their anti-dilutive effect 1,538 1,151 391 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Information [Abstract] | |
Summary of operating results information for each business segment | Selected operating results information for each business segment was as follows for the year ended December 31, 2016, 2015 and 2014: Year Ended December 31, Revenues Income (loss) from operations 2016 2015 2014 2016 2015 2014 U.S. Dollars U.S. Dollars PCB 30,476 30,138 30,480 (4,012 ) (5,902 ) (2,422 ) Microelectronics 79,047 69,137 57,833 11,942 (2,671 ) 9,922 Total 109,523 99,275 88,313 7,930 (8,573 ) 7,500 |
Summary of reconciliation of segment operating results | The reconciliation of segment operating results information to the Company’s consolidated financial information was as follows: Year Ended December 31, 2016 2015 2014 U.S. Dollars Income (loss) from operations 7,930 (8,573 ) 7,500 Unallocated general and administrative expenses 885 1,216 2,056 Share-based compensation expenses 429 270 308 Financial expenses 994 1,877 1,220 Consolidated income (loss) before taxes 5,622 (11,936 ) 3,916 |
Schedule of Revenues by Geographic Area | Revenues are attributable to geographic areas/countries based upon the destination of shipment of products and related services as follows: Year Ended December 31, 2016 2015 2014 U.S. Dollars China and Hong Kong 34,276 30,158 28,526 Taiwan 27,718 24,854 17,495 Korea 16,491 13,208 8,889 Asia- Other 11,214 7,836 11,336 United States 10,563 10,219 12,518 Western Europe 5,079 5,380 5,739 Japan 4,182 7,035 3,204 Rest of the world - 585 606 109,523 99,275 88,313 |
Selected Income Statement Data
Selected Income Statement Data (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Selected Income Statement Data [Abstract] | |
Selected Selling, General and Administrative Expenses Data | Year Ended December 31, 2016 2015 2014 U.S. Dollars Selling (1) 16,575 16,208 14,337 General and administrative 8,926 7,379 7,080 25,501 23,587 21,417 (1) Including shipping and handling costs 1,034 1,014 879 |
Selected Financial Income (Expenses) Data | Year Ended December 31, 2016 2015 2014 U.S. Dollars Interest and commission expense (288 ) (461 ) (6 ) Interest income 74 88 77 Re-evaluation of contingent consideration - (101 ) (258 ) Re-evaluation expense on liabilities to the OCS (183 ) (437 ) (370 ) Other, net (*) (597 ) (966 ) (663 ) (994 ) (1,877 ) (1,220 ) (*) Other, net includes foreign currency income (expense) resulting from transactions not denominated in U.S. Dollars amounting to $(435), $(786), and $(546) in 2016, 2015 and 2014, respectively. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Composition of Income (Loss) Before Income Taxes and Income Tax Expense (Benefit) | Composition of income (loss) before income taxes and income tax expense (benefit) Year Ended December 31, 2016 2015 2014 U.S. Dollars Income (loss) before income taxes: Israel 2,007 (13,807 ) 2,975 Non-Israeli 3,615 1,871 941 5,622 (11,936 ) 3,916 Income tax expense: Current: Israel 110 146 191 Non-Israeli 824 414 224 934 560 415 Deferred tax expense (benefit): Israel 620 (2,654 ) 38 Non-Israeli (666 ) 271 126 (46 ) (2,383 ) 164 888 (1,823 ) 579 |
Reconciliation of The Theoretical Income Tax Expense (Benefit) | The following is a reconciliation of the theoretical income tax expense, assuming all income is taxed at the statutory tax rate applicable to Israeli companies, and the actual income tax expense: Year Ended December 31, 2016 2015 2014 U.S. Dollars Income (loss) before income taxes 5,622 (11,936 ) 3,916 Statutory tax rate 25 % 26.5 % 26.5 % Theoretical income tax expense (benefit) 1,406 (3,163 ) 1,038 Increase (decrease) in income tax expense resulting from: Tax expense (benefits) arising from “Approved and Beneficiating Enterprises” and preferential tax rate in China (198 ) (523 ) (1,215 ) Change in valuation allowance(*) (721 ) 308 (40 ) Non-deductible expenses(**) 182 640 55 Differences between foreign currencies and dollar-adjusted financial statements-net 6 283 952 Foreign tax rate differential (63 ) (44 ) (13 ) Undistributed earnings of subsidiary - 490 - Change in tax rate 592 - - Other (316 ) 186 (198 ) Actual income tax expense (benefit) 888 (1,823 ) 579 Per share effect of the tax benefits arising from “Approved and Beneficiating Enterprises” and preferential tax rate in China: Basic $ 0.00 $ 0.00 $ (0.04 ) Diluted $ 0.00 $ 0.00 $ (0.04 ) (*) Included within the change in valuation allowance are realized benefits of operating loss carryforwards of $23, $134 and $42, for the years ended December 31, 2016, 2015 and 2014, respectively. (**) Including non-deductible share based compensation. |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences and carryforwards that give rise to significant portions of the deferred tax assets and liabilities are presented below: December 31, 2016 2015 U.S. Dollars Deferred tax assets: Allowance for doubtful accounts 161 184 Accrued warranty 89 87 Unearned revenue 243 165 Accrued expenses 427 493 Net operating losses (NOL) and tax credit carryforwards 5,631 6,823 Other temporary differences * 504 197 Total gross deferred tax assets 7,055 7,949 Valuation allowance (2,222 ) (3,087 ) Deferred tax asset, net of valuation allowance 4,833 4,862 Deferred tax liability: Property, plant and equipment (223 ) (240 ) Undistributed earnings (433 ) (490 ) Net deferred tax assets 4,177 4,132 |
Balances and Transactions wit45
Balances and Transactions with Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Balances and Transactions with Related Parties [Abstract] | |
Schedule of Related Party Balances and Transactions | A. Balances with related parties: December 31, December 31, 2016 2015 U.S. Dollars Accounts receivable 20 79 Due from affiliated companies 77 559 B. Transactions with related parties: Year Ended December 31, 2016 2015 2014 U.S. Dollars Purchases from Parent and affiliates 3 43 93 Interest income (expense) from Parent (28 ) (9 ) 24 Sales to Parent and affiliated companies 145 109 297 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Measurements [Abstract] | |
Schedule of Recurring Fair Value Measurements | The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2015, aggregated by the level in the fair-value hierarchy within which those measurements fall: Quoted Prices in Significant Active Markets for Significant Other Unobservable December 31, Identical Assets Observable Inputs Inputs Description 2015 (Level 1) (Level 2) (Level 3) U.S. Dollars Assets Foreign currency derivative contracts 3 - 3 - Total Assets 3 - 3 - |
Roll-Forward of The Fair Value of Level 3 Liabilities | The following table present a roll-forward of the fair value of Level 3 (significant unobservable inputs) liabilities for the year ended December 31, 2015: Level 3 U.S. Dollars Contingent consideration December 31, 2014 1,900 Settlement of liabilities (2,001 ) Revaluation of fair value included in statement of operations 101 December 31, 2015 - |
Nature of Operations (Narrative
Nature of Operations (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 46.17% | |
Shares issued to repay obligation | $ 375 | |
Printar [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Conditional obligation | 2,000 | |
Total repayment | 425 | |
Cash paid to settle obligation | 50 | |
Shares issued to repay obligation | $ 375 |
Nature of Operations (Schedule
Nature of Operations (Schedule of Details of Impairment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Impairment [Line Items] | ||||
Total | $ 872 | $ 1,179 | $ 265 | |
Reorganization expense (benefit) and impairment | (4,059) | 138 | 60 | |
Cost of Revenues | 65,569 | 56,149 | 47,294 | |
Reorganization and impairment [Member] | ||||
Impairment [Line Items] | ||||
Cost of Revenues | 4,931 | |||
Inventory write-off [Member] | ||||
Impairment [Line Items] | ||||
Cost of Revenues | 1,041 | 205 | ||
Impairment charge with respect of technology, customer relationships and goodwill [Member] | ||||
Impairment [Line Items] | ||||
Reorganization expense (benefit) and impairment | 1,595 | |||
Revaluation of liabilities in respect of Printar and SELA acquisitions [Member] | ||||
Impairment [Line Items] | ||||
Reorganization expense (benefit) and impairment | (4,962) | [1] | (1,457) | (106) |
Other impairment [Member] | ||||
Impairment [Line Items] | ||||
Reorganization expense (benefit) and impairment | $ 903 | $ 166 | ||
[1] | see Note 13F |
Significant Accounting Polici49
Significant Accounting Policies (Annual Rates of Depreciation) (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Land [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual rate of depreciation | 1.00% |
Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual rate of depreciation | 2.00% |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual rate of depreciation | 10.00% |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual rate of depreciation | 33.00% |
Computer equipment and software [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual rate of depreciation | 20.00% |
Computer equipment and software [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual rate of depreciation | 33.00% |
Office Furniture and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual rate of depreciation | 6.00% |
Office Furniture and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual rate of depreciation | 20.00% |
Automobiles [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual rate of depreciation | 15.00% |
Cash and Cash Equivalents (Cash
Cash and Cash Equivalents (Cash and Cash Equivalents) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Cash and Cash Equivalents [Line Items] | ||
Cash | $ 19,740 | $ 30,833 |
Bank balances [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Cash | 19,740 | 30,743 |
Restricted [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Cash | $ 90 |
Cash and Cash Equivalents (Curr
Cash and Cash Equivalents (Currencies) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 19,740 | $ 30,833 | $ 18,220 | $ 16,495 |
U.S. Dollars [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 15,209 | 26,703 | ||
Euro [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 1,548 | 770 | ||
Chinese RMB [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 1,211 | 640 | ||
New Israeli Shekels [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 1,054 | 2,002 | ||
Other Currencies [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 718 | $ 718 |
Short-term restricted deposits
Short-term restricted deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Short-term restricted deposits [Abstract] | ||
Restricted deposits | $ 7,875 |
Inventories (Inventories) (Deta
Inventories (Inventories) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Inventories [Abstract] | |||
Components | $ 13,995 | $ 12,739 | |
Work in process | 5,180 | 6,453 | |
Finished products | [1] | 8,380 | 10,386 |
Total inventories | 27,555 | 29,578 | |
Current assets | 25,448 | 27,599 | |
Long term assets | $ 2,107 | $ 1,979 | |
[1] | includes systems at customer locations not yet sold, as of December 31, 2016 and 2015, in the amount of $3,109 and $4,612 respectively. |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Long Term Inventory [Line Items] | ||
Finished products, Systems at customer locations | $ 3,109 | $ 4,612 |
Long-term inventory | 2,107 | 1,979 |
Spare parts included in noncurrent inventory | 1,326 | |
Obsolescence provision | 4,841 | 1,041 |
Provision for damages, obsolete, excess and slow-moving inventory | 133 | |
Amount of inventory write-down | $ 4,841 | $ 1,174 |
Minimum [Member] | ||
Long Term Inventory [Line Items] | ||
Customer support, term | 7 years | |
Maximum [Member] | ||
Long Term Inventory [Line Items] | ||
Customer support, term | 10 years |
Other Current Assets (Details)
Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets | ||
Due from Government institutions | $ 1,741 | $ 182 |
Prepaid expenses | 484 | 600 |
Advances to suppliers | 169 | 220 |
Deposits for operating leases | 165 | 203 |
Other | 188 | 507 |
Other current assets | $ 2,747 | $ 1,712 |
Property, Plant and Equipment56
Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 24,899 | $ 25,325 | |
Less accumulated depreciation | 10,790 | 11,794 | |
Fixed assets, net | 14,109 | 13,531 | |
Depreciation expenses | 1,904 | 1,849 | $ 1,937 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 863 | 863 | |
Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 11,109 | 10,764 | |
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 6,443 | 6,260 | |
Office Furniture and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 1,277 | 1,225 | |
Computer equipment and software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 4,012 | 4,996 | |
Automobiles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 87 | 87 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 1,108 | $ 1,130 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Other Assets [Abstract] | ||
Deposits for operating leases | $ 270 | $ 248 |
Goodwill and Intangible Asset58
Goodwill and Intangible Assets, Net (Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2016 | |
Goodwill [Line Items] | ||
Goodwill | $ 3,653 | $ 2,130 |
Accumulated impairment losses | (3,653) | (2,130) |
Net goodwill | ||
Printar [Member] | ||
Goodwill [Line Items] | ||
Impairment loss on goodwill | $ 1,555 |
Goodwill and Intangible Asset59
Goodwill and Intangible Assets, Net (Intangible Assets, Net) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Goodwill and Intangible Assets, Net [Abstract] | ||
Patent registration costs | $ 2,382 | $ 2,077 |
IPR&D | 1,002 | 1,002 |
Intangible assets at cost | 3,384 | 3,079 |
Accumulated amortization and impairment | 2,519 | 2,284 |
Total intangible assets, net | $ 865 | $ 795 |
Goodwill and Intangible Asset60
Goodwill and Intangible Assets, Net (Estimated Amortization Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense related to intangible assets | $ 235 | $ 211 | $ 234 |
Write-off of patents, net value | 7 | 7 | $ 37 |
2,017 | 143 | ||
2,018 | 143 | ||
2,019 | 143 | ||
2,020 | 142 | ||
2,021 | 92 | ||
Total amortization expense | $ 663 | ||
Impairment of intangible assets | $ 40 | ||
Patents [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated Useful life | 10 years |
Other Current Liabilities (Othe
Other Current Liabilities (Other Current Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Other Current Liabilities [Abstract] | ||
Accrued employee compensation and related benefits | $ 7,071 | $ 6,634 |
Commissions | 4,351 | 2,876 |
Advances from customers and deferred revenues | 2,290 | 1,961 |
Accrued expenses | 2,277 | 2,446 |
Accrued warranty costs | 1,459 | 1,448 |
Government institutions | 874 | 737 |
Liability in respect of litigation | 14,600 | |
Current maturities of OCS liability | 10 | |
Total other current liabilities | $ 18,322 | $ 30,712 |
Other Current Liabilities (Chan
Other Current Liabilities (Changes In Product Warranty Obligations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Current Liabilities [Abstract] | |||
Beginning of year | $ 1,448 | $ 1,151 | $ 1,304 |
New warranties | 2,438 | 2,472 | 2,152 |
Reductions | (2,427) | (2,175) | (2,305) |
Balance at end of year | $ 1,459 | $ 1,448 | $ 1,151 |
Liability for Employee Severa63
Liability for Employee Severance Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Liability for Employee Severance Benefits [Abstract] | |||
Severance liability | $ 870 | $ 772 | |
Severance expenses | $ 1,202 | $ 1,104 | $ 1,145 |
Other Long-Term Liabilities (De
Other Long-Term Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Long Term Liabilities [Line Items] | |||
Total other long-term liabilities | $ 4,768 | ||
OCS [Member] | |||
Other Long Term Liabilities [Line Items] | |||
Liability for contingent consideration in respect of business combinations | [1] | $ 4,768 | |
OCS [Member] | Printar [Member] | |||
Other Long Term Liabilities [Line Items] | |||
Effective interest rate used in the capitalization of the liabilities to the OCS | 13.00% | ||
[1] | Liability to OCS as of December 31, 2015 was in respect of the acquisition of Printar and new grants received in 2010 and 2009. |
Commitments and Contingencies65
Commitments and Contingencies (Narrative) (Details) - USD ($) | Feb. 03, 2016 | Aug. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2010 | Dec. 31, 2009 |
Commitments And Contingencies [Line Items] | |||||||
Outstanding purchase commitments for inventory components | $ 10,191,000 | $ 8,959,000 | |||||
"BLL" [Member] | |||||||
Commitments And Contingencies [Line Items] | |||||||
Bank guarantee | $ 50,000 | ||||||
Rudolph [Member] | |||||||
Commitments And Contingencies [Line Items] | |||||||
Litigation awarded value | $ 14,600,000 | $ 15,750,000 | |||||
Litigation previously awarded value | $ 14,500,000 | ||||||
Litigation settlement amount paid by forfeiture of bond | $ 14,600,000 | ||||||
Amount of tax deduction relating to judgement awarded challenged by Israeli Tax Authority | $ 2,400,000 | ||||||
Appeal bond, amount | $ 7,875,000 | ||||||
OCS [Member] | |||||||
Commitments And Contingencies [Line Items] | |||||||
Percent of sales derived from research and development, committed amount payable | 3.50% | ||||||
Accrued interest | $ 648,000 | $ 648,000 | |||||
OCS [Member] | Printar [Member] | |||||||
Commitments And Contingencies [Line Items] | |||||||
Grants received including interest accrued | $ 6,503,000 | 6,256,000 | $ 598,000 | $ 598,000 | |||
Liabilities recorded at fair value | $ 4,130,000 |
Commitments and Contingencies66
Commitments and Contingencies (Minimum Future Rental Payments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies [Abstract] | |||
2,017 | $ 1,422 | ||
2,018 | 1,156 | ||
2,019 | 677 | ||
Thereafter | 456 | ||
Total | 3,711 | ||
Aggregate office rent expenses | $ 966 | $ 966 | $ 845 |
Commitments and Contingencies67
Commitments and Contingencies (Allowance For Doubtful Debts) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies [Abstract] | |||
Balance at beginning of period | $ 1,592 | $ 1,526 | $ 1,361 |
Provision | 158 | 215 | 344 |
Reversal of provision | (392) | (141) | (164) |
Write-off of provision | (8) | (15) | |
Balance at end of period | $ 1,358 | $ 1,592 | $ 1,526 |
Concentration of Risk and Fin68
Concentration of Risk and Financial Instruments (Options) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Concentration of Risk and Financial Instruments [Abstract] | ||
Gain (loss) from derivatives not designated as hedging instruments | $ (3) | $ 92 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
May 31, 2015 | Sep. 30, 2002 | Sep. 30, 2001 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2009 | Dec. 31, 2008 | Aug. 31, 2007 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Public offering | $ 11,904 | $ 11,904 | |||||||
Public offering, price per share | $ 2.85 | ||||||||
Public offering, shares | 4,655,982 | ||||||||
Shares available for grant | 1,598,800 | ||||||||
Vesting period (years) | 4 years | 4 years | |||||||
Stock option terms, years | 10 years | ||||||||
Number of shares authorized for grant | 3,000,000 | ||||||||
Granted | 527,500 | 464,335 | 296,000 | ||||||
Unrecognized share-based compensation expense | $ 1,082 | ||||||||
Share based compensation expense | $ 429 | $ 270 | $ 308 | ||||||
Unrecognized compensation cost, recognition period | 1 year 10 months 10 days | ||||||||
Aggregate intrinsic Value, Outstanding | $ 1,040 | 45 | 205 | ||||||
Aggregate intrinsic Value, Outstanding, Vested and expected to vest | $ 204 | 38 | 87 | ||||||
Treasury stock [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock Repurchase Program, Authorized Amount | $ 3,000 | $ 2,000 | |||||||
Treasury Stock, Shares, Retired | 761,619 | 250,000 | 1,080,757 | ||||||
Treasury Stock, Retired, Cost Method, Amount | $ 401 | $ 592 | $ 905 | ||||||
Restricted Stock Units (RSUs) [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares available for grant | 670,129 | 1,500,000 | 300,000 | ||||||
Additional shares available for grant | 1,200,000 | ||||||||
Share based compensation expense | $ 0 | ||||||||
Weighted average grant- date fair value, Vested | $ 0 | ||||||||
Stock Compensation Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share based compensation expense | $ 429 | $ 270 | $ 308 |
Shareholders' Equity (Fair Valu
Shareholders' Equity (Fair Value Assumptions) (Details) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Shareholders' Equity [Abstract] | ||
Dividend yield | 0.00% | 0.00% |
Expected volatility | 66.00% | |
Expected volatility, minimum | 67.00% | |
Expected volatility, maximum | 68.00% | |
Risk free interest rate | 1.38% | |
Risk-free interest rate, minimum | 1.60% | |
Risk-free interest rate, maximum | 2.16% | |
Expected life (years) | 4 years 9 months 18 days | 4 years 9 months 18 days |
Vesting period (years) | 4 years | 4 years |
Shareholders' Equity (Share Opt
Shareholders' Equity (Share Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Shareholders' Equity [Abstract] | |||
Outstanding, beginning balance | 1,151,121 | 833,799 | 735,519 |
Granted | 527,500 | 464,335 | 296,000 |
Forfeited and cancelled | (25,187) | (122,952) | (108,724) |
Exercised | (24,061) | (88,996) | |
Outstanding, ending balance | 1,653,434 | 1,151,121 | 833,799 |
Vested at year end | 725,466 | 461,192 | 423,291 |
Vested and expected to vest at December 31, 2016 | 1,607,036 | ||
Exercisable at December 31, 2016 | 725,466 | ||
Weighted average exercise price, Outstanding, beginning balance | $ 3.28 | $ 3.34 | $ 2.99 |
Weighted average exercise price, Granted | 1.92 | 2.99 | 3.53 |
Weighted average exercise price, Forfeited and cancelled | 5 | 2.95 | 2.47 |
Weighted average exercise price, Exercised | 0 | 1.4 | 2.14 |
Weighted average exercise price, Outstanding, ending balance | 2.82 | 3.28 | 3.34 |
Weighted exercise price, Vested at year end | 3.32 | $ 3.48 | $ 3.56 |
Weighted average exercise price, Vested and expected to vest at December 31, 2016 | 2.82 | ||
Weighted average exercise price, Exercisable at December 31, 2016 | $ 3.32 | ||
Weighted average Remaining Contractual term (years), Outstanding | 5 years 2 months 16 days | ||
Weighted average Remaining Contractual term (years), Vested and expected to vest | 5 years 2 months 16 days | ||
Weighted average Remaining Contractual term (years), Exercisable | 4 years 5 months 12 days | ||
Aggregate intrinsic Value, Outstanding | $ 1,040 | $ 45 | $ 205 |
Aggregate Intrinsic Value, Vested and Expected to Vest | 998 | ||
Aggregate intrinsic Value, Exercisable | $ 204 | $ 38 | $ 87 |
Shareholders' Equity (Informati
Shareholders' Equity (Information About Share Options) (Details) | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of outstanding options | 1,653,434 |
Number exercisable | 725,466 |
Weighted average remaining contractual life in years | 5 years 2 months 16 days |
Exercise price 0-2 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price, minimum | $ / shares | $ 0 |
Exercise price, maximum | $ / shares | $ 2 |
Number of outstanding options | 597,500 |
Number exercisable | 62,706 |
Weighted average remaining contractual life in years | 6 years 2 months 23 days |
Exercise price 3-5 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price, minimum | $ / shares | $ 3 |
Exercise price, maximum | $ / shares | $ 5 |
Number of outstanding options | 1,055,934 |
Number exercisable | 662,760 |
Weighted average remaining contractual life in years | 4 years 7 months 21 days |
Shareholders' Equity (Informa73
Shareholders' Equity (Information About Nonvested Options) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Options | |||
Beginning balance | 689,929 | ||
Granted | 527,500 | 464,335 | 296,000 |
Vested | (289,461) | ||
Forfeited | |||
Ending balance | 927,968 | 689,929 | |
Weighted average grant- date fair value | |||
Beginning balance | $ 1.55 | ||
Granted | 1.17 | ||
Vested | 1.78 | ||
Forfeited | |||
Ending balance | $ 1.26 | $ 1.55 |
Earnings Per Ordinary Share (De
Earnings Per Ordinary Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings (loss) per ordinary share: | |||
Net income (loss) attributable to Ordinary Shares | $ 4,734 | $ (10,113) | $ 3,337 |
Weighted average number of Ordinary Shares outstanding used in basic earnings per Ordinary Share calculation | 35,348 | 33,352 | 30,464 |
Add assumed exercise of outstanding dilutive potential Ordinary Shares | 28 | 81 | |
Weighted average number of Ordinary Shares outstanding used in diluted earnings per Ordinary Share calculation | 35,376 | 33,352 | 30,545 |
Basic income (loss) per Ordinary Share | $ 0.13 | $ (0.30) | $ 0.11 |
Diluted income (loss) per Ordinary Share | $ 0.13 | $ (0.30) | $ 0.11 |
Number of options excluded from the diluted earnings per share calculation due to their anti-dilutive effect | 1,538 | 1,151 | 391 |
Segment Information (Summary of
Segment Information (Summary of operating results of business segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 109,523 | $ 99,275 | $ 88,313 |
Income (loss) from operations | 6,616 | (10,059) | 5,136 |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 109,523 | 99,275 | 88,313 |
Income (loss) from operations | 7,930 | (8,573) | 7,500 |
Operating Segments [Member] | Printed Circuit Boards [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 30,476 | 30,138 | 30,480 |
Income (loss) from operations | (4,012) | (5,902) | (2,422) |
Operating Segments [Member] | Microelectronics [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 79,047 | 69,137 | 57,833 |
Income (loss) from operations | $ 11,942 | $ (2,671) | $ 9,922 |
Segment Information (Summary 76
Segment Information (Summary of reconciliation of segment operating results) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Income (loss) from operations | $ 6,616 | $ (10,059) | $ 5,136 |
Share-based compensation expenses | 429 | 270 | 308 |
Consolidated income (loss) before taxes | 5,622 | (11,936) | 3,916 |
Operating Segments [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Income (loss) from operations | 7,930 | (8,573) | 7,500 |
Unallocated general and administrative expenses | 885 | 1,216 | 2,056 |
Share-based compensation expenses | 429 | 270 | 308 |
Financial expenses | 994 | 1,877 | 1,220 |
Consolidated income (loss) before taxes | $ 5,622 | $ (11,936) | $ 3,916 |
Segment Information (Schedule o
Segment Information (Schedule of Revenues by Geographic Area) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 109,523 | $ 99,275 | $ 88,313 |
China and Hong Kong [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 34,276 | 30,158 | 28,526 |
Taiwan [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 27,718 | 24,854 | 17,495 |
Korea [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 16,491 | 13,208 | 8,889 |
Asia Other [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 11,214 | 7,836 | 11,336 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 10,563 | 10,219 | 12,518 |
Western Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 5,079 | 5,380 | 5,739 |
Japan [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 4,182 | 7,035 | 3,204 |
Rest of the world [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 585 | $ 606 |
Selected Income Statement Dat78
Selected Income Statement Data (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Selected Income Statement Data [Abstract] | ||||
Selling | [1] | $ 16,575 | $ 16,208 | $ 14,337 |
General and administrative | 8,926 | 7,379 | 7,080 | |
Total selling, general and administrative expenses | 25,501 | 23,587 | 21,417 | |
Shipping and handling costs | 1,034 | 1,014 | 879 | |
Interest and commission expense | (288) | (461) | (6) | |
Interest income | 74 | 88 | 77 | |
Re-evaluation of contingent consideration | (101) | (258) | ||
Re-evaluation expense on liabilities to the OCS | (183) | (437) | (370) | |
Other, net | [2] | (597) | (966) | (663) |
Financial income (expenses), net | (994) | (1,877) | (1,220) | |
Foreign currency income (expense), transactions not denominated in U.S. Dollars | $ (435) | $ (786) | $ (546) | |
[1] | Including shipping and handling costs | |||
[2] | Other, net includes foreign currency income (expense) resulting from transactions not denominated in U.S. Dollars amounting to $(435), $(786), and $(546) in 2016, 2015 and 2014, respectively. |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Loss Carryforwards [Line Items] | |||
Deferred tax assets valuation allowance | $ 2,222 | $ 3,087 | |
Net change in total valuation allowance | (865) | $ 134 | $ (656) |
Major foreign subsidiaries NOL | 946 | ||
The Company and its subsidiaries in Israel NOL carryforwards, aggregate amount | $ 63,429 | ||
Effective income tax rate | 25.00% | 26.50% | 26.50% |
Undistributed earnings of foreign subsidiaries | $ 12,850 | ||
Corporate statutory tax rate on 2018 and thereafter | 23.00% | ||
Corporate statutory tax rate on 2017 | 24.00% | ||
Beneficiating Enterprise [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax-exempt earnings | $ 2,829 | ||
Contingent income tax liabilities, Dividend distribution | 707 | ||
Approved Enterprise [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax-exempt earnings | 18,606 | ||
Contingent income tax liabilities, Dividend distribution | 4,651 | ||
Subsidiary [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net change in total valuation allowance | $ (174) | ||
The Company and its subsidiaries in Israel NOL carryforwards, aggregate amount | $ 17,819 |
Income Taxes (Composition of In
Income Taxes (Composition of Income (Loss) Before Income Taxes and Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Abstract] | |||
Income (loss) before income taxes: Israel | $ 2,007 | $ (13,807) | $ 2,975 |
Income (loss) before income taxes: Non-Israeli | 3,615 | 1,871 | 941 |
Income (loss) before income taxes | 5,622 | (11,936) | 3,916 |
Income tax expense, Current: Israel | 110 | 146 | 191 |
Income tax expense, Current: Non-Israeli | 824 | 414 | 224 |
Current Income Tax Expense, Total | 934 | 560 | 415 |
Deferred tax expense (benefit): Israel | 620 | (2,654) | 38 |
Deferred tax expense (benefit): Non-Israeli | (666) | 271 | 126 |
Deferred Income Tax Expense (Benefit), Total | (46) | (2,383) | 164 |
Actual income tax expense (benefit) | $ 888 | $ (1,823) | $ 579 |
Income Taxes (Income Taxes Incl
Income Taxes (Income Taxes Included in The Statement of Operations) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Income Taxes [Abstract] | ||||
Income (loss) before income taxes | $ 5,622 | $ (11,936) | $ 3,916 | |
Statutory tax rate | 25.00% | 26.50% | 26.50% | |
Theoretical income tax expense (benefit) | $ 1,406 | $ (3,163) | $ 1,038 | |
Tax expense (benefits) arising from ''Approved and Beneficiating Enterprises'' and preferential tax rate in China | (198) | (523) | (1,215) | |
Change in valuation allowance | [1] | (721) | 308 | (40) |
Non-deductible expenses | [2] | 182 | 640 | 55 |
Differences between foreign currencies and dollar-adjusted financial statements-net | 6 | 283 | 952 | |
Foreign tax rate differential | (63) | (44) | (13) | |
Undistributed earnings of subsidiary | 490 | |||
Change in tax rate | 592 | |||
Other | (316) | 186 | (198) | |
Actual income tax expense (benefit) | $ 888 | $ (1,823) | $ 579 | |
Per share effect of the tax benefits arising from ''Approved and Beneficiating Enterprises'' and preferential tax rate in China: Basic | $ 0 | $ 0 | $ (0.04) | |
Per share effect of the tax benefits arising from ''Approved and Beneficiating Enterprises'' and preferential tax rate in China: Diluted | $ 0 | $ 0 | $ (0.04) | |
Net operating loss carry forwards | $ 23 | $ 134 | $ 42 | |
[1] | Included within the change in valuation allowance are realized benefits of operating loss carryforwards of $23, $134 and $42, for the years ended December 31, 2016, 2015 and 2014, respectively. | |||
[2] | Including non-deductible share based compensation. |
Income Taxes (Income Taxes In82
Income Taxes (Income Taxes Included in The Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Deferred tax assets: | |||
Allowance for doubtful accounts | $ 161 | $ 184 | |
Accrued warranty | 89 | 87 | |
Unearned revenue | 243 | 165 | |
Accrued expenses | 427 | 493 | |
Net operating losses (NOL) and tax credit carryforwards | 5,631 | 6,823 | |
Other temporary differences | 504 | [1] | 197 |
Total gross deferred tax assets | 7,055 | 7,949 | |
Valuation allowance | (2,222) | (3,087) | |
Deferred tax asset, net of valuation allowance | 4,833 | 4,862 | |
Deferred tax liability: | |||
Property, plant and equipment | (223) | (240) | |
Undistributed earnings | (433) | (490) | |
Net deferred tax assets | $ 4,177 | $ 4,132 | |
[1] | Other temporary differences in 2016 primarily relate to inventory write off provision |
Balances and Transactions wit83
Balances and Transactions with Related Parties (Details) - Affiliated Entity [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||
Accounts receivable | $ 20 | $ 79 | |
Due from affiliated companies | 77 | 559 | |
Purchases from Parent and affiliates | 3 | 43 | $ 93 |
Interest income from Parent | 24 | ||
Interest (expense) from Parent | (28) | (9) | |
Sales to Parent and affiliated companies | $ 145 | $ 109 | $ 297 |
Interest rate, related party | 5.50% | 5.50% | 5.50% |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Foreign currency derivative contracts | $ 3 |
Total Assets | 3 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Foreign currency derivative contracts | |
Total Assets | |
Significant Other Observable Inputs (Level 2) [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Foreign currency derivative contracts | 3 |
Total Assets | 3 |
Significant Unobservable Inputs (Level 3) [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Foreign currency derivative contracts | |
Total Assets |
Fair Value Measurements (Roll-F
Fair Value Measurements (Roll-Forward of The Fair Value of Level 3 Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Level 3 Liabilities, Beginning Balance | $ 1,900 | |
Settlement of liabilities | (2,001) | |
Revaluation of fair value included in statement of operations | 101 | |
Level 3 Liabilities, Ending Balance | $ 1,900 | |
Printar [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Weighted average cost of capital, percent | 28.00% | |
Contingent consideration | $ 2,000 | |
Total purchase consideration | $ 2,500 |