Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document And Entity [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2017 |
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 | 2,017 |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 35,832,131 |
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, 2017 | Dec. 31, 2016 | [1] |
Current assets | |||
Cash and cash equivalents | $ 43,744 | $ 19,740 | |
Trade accounts receivable, net | 23,153 | 22,066 | |
Inventories | 21,336 | 16,647 | |
Other current assets | 3,215 | 2,157 | |
Current assets held for sale | 25,018 | ||
Total current assets | 91,448 | 85,628 | |
Property, plant and equipment, net | 15,503 | 13,725 | |
Long-term inventory | 1,383 | 1,461 | |
Deferred tax asset | 4,067 | 4,073 | |
Other assets | 153 | 152 | |
Intangible assets, net | 482 | 519 | |
Total noncurrent assets | 6,085 | 6,205 | |
Total assets | 113,036 | 105,558 | |
Current liabilities | |||
Trade accounts payable | 10,502 | 10,304 | |
Other current liabilities | 17,395 | 14,740 | |
Current liabilities held for sale | 6,482 | ||
Total current liabilities | 27,897 | 31,526 | |
Long-term liabilities | |||
Liability for employee severance benefits | 838 | 667 | |
Total noncurrent liabilities | 838 | 667 | |
Total liabilities | 28,735 | 32,193 | |
Commitments and contingencies | |||
Shareholders' equity | |||
Ordinary shares NIS 0.01 par value, 100,000,000 shares authorized at December 31, 2017 and 2016; 37,924,507 and 37,440,552 issued shares at December 31, 2017 and 2016, respectively; 35,832,131 and 35,348,176 shares outstanding at December 31, 2017 and 2016, respectively | 149 | 148 | |
Additional paid-in capital | 78,437 | 76,463 | |
Retained earnings (accumulated losses) | 7,613 | (1,348) | |
Total shareholders' equity before treasury stock | 86,199 | 75,263 | |
Treasury stock, at cost (2,092,376 as of December 31, 2017 and 2016) | (1,898) | (1,898) | |
Total shareholders' equity | 84,301 | 73,365 | |
Total liabilities and shareholders' equity | $ 113,036 | $ 105,558 | |
[1] | Reclassified - due to presenting PCB operation as discontinued operation - See Note 19 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - ₪ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
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 | 37,924,507 | 37,440,552 |
Common Stock, shares outstanding | 35,832,131 | 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, 2017 | Dec. 31, 2016 | [1] | Dec. 31, 2015 | [1] | |
Income Statement [Abstract] | |||||
Revenues | $ 93,485 | $ 79,228 | $ 69,387 | ||
Cost of revenues | 47,966 | 41,807 | 36,508 | ||
Reorganization and impairment | 4,931 | 1,041 | |||
Total cost of revenues | 47,966 | 46,738 | 37,549 | ||
Gross profit | 45,519 | 32,490 | 31,838 | ||
Research and development costs | 13,534 | 12,630 | 11,421 | ||
Selling, general and administrative expenses | 22,022 | 21,900 | 19,255 | ||
Reorganization and impairment | (4,059) | 138 | |||
Patent litigation expense | 13,000 | 14,600 | |||
Total operating expenses | 48,556 | 30,471 | 45,414 | ||
Operating income (loss) | (3,037) | 2,019 | (13,576) | ||
Financial expenses, net | (150) | (847) | (1,312) | ||
Income (loss) from continuing operations before incomes taxes | (3,187) | 1,172 | (14,888) | ||
Income tax (expense) benefit | 4,875 | (303) | 2,072 | ||
Net income (loss) from continuing operations | 1,688 | 869 | (12,816) | ||
Income from discontinued operations | |||||
Income before income tax expense | 18,302 | 4,450 | 2,952 | ||
Income tax expense | (6,028) | (585) | (249) | ||
Net income from discontinued operations | 12,274 | 3,865 | 2,703 | ||
Net income (loss) | $ 13,962 | $ 4,734 | $ (10,113) | ||
Basic earnings (losses) from continuing operations | $ 0.05 | $ 0.02 | $ (0.38) | ||
Basic earnings from discontinued operations | 0.35 | 0.11 | 0.08 | ||
Basic net earnings (losses) | 0.40 | 0.13 | (0.30) | ||
Diluted earnings (losses) from continuing operations | 0.05 | 0.02 | (0.38) | ||
Diluted earnings from discontinued operations | 0.34 | 0.11 | 0.08 | ||
Diluted net earnings (losses) | $ 0.39 | $ 0.13 | $ (0.30) | ||
Weighted average number of ordinary shares outstanding: | |||||
Basic | 35,441 | 35,348 | 33,352 | ||
Diluted | 35,964 | 35,376 | 33,352 | ||
[1] | Reclassified - due to presenting PCB operation as discontinued operation - See Note 19 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Ordinary Shares NIS 0.01 par value [Member] | Treasury stock NIS 0.01 par value [Member] | Additional paid-in capital [Member] | Retained earnings (accumulated losses) [Member] | Total | ||
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) | |||||
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) | [2] | ||||
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) | |||||
Share-based compensation expense | 429 | 429 | |||||
Net income (loss) | 4,734 | 4,734 | [2] | ||||
Balance, value at Dec. 31, 2016 | $ 148 | $ (1,898) | 76,463 | (1,348) | $ 73,365 | [2] | |
Balance, shares at Dec. 31, 2016 | 37,440,552 | (2,092,376) | 35,348,176 | ||||
Exercise of share options and RSUs, value | $ 1 | 1,340 | $ 1,341 | ||||
Exercise of share options and RSUs, shares | 483,955 | ||||||
Share-based compensation expense | 634 | 634 | |||||
Dividend | (5,001) | (5,001) | |||||
Net income (loss) | 13,962 | 13,962 | |||||
Balance, value at Dec. 31, 2017 | $ 149 | $ (1,898) | $ 78,437 | $ 7,613 | $ 84,301 | ||
Balance, shares at Dec. 31, 2017 | 37,924,507 | (2,092,376) | 35,832,131 | ||||
[1] | Less than $ 1 thousand | ||||||
[2] | Reclassified - due to presenting PCB operation as discontinued operation - See Note 19 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Cash flows from operating activities: | ||||||
Net income (loss) | $ 13,962 | $ 4,734 | [1] | $ (10,113) | [1] | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||
Depreciation and amortization | 2,122 | 1,961 | [1] | 1,884 | [1] | |
Impairment losses | [1] | 1,595 | [1] | |||
Deferred tax expense (benefit) | 6 | (97) | [1] | (2,227) | [1] | |
Share based compensation expense | 634 | 429 | [1] | 270 | [1] | |
Provision for doubtful debts, net | (164) | [1] | 38 | [1] | ||
Revaluation of liabilities and interest expense on liabilities to the OCS | (4,774) | [1] | (919) | [1] | ||
Changes in operating assets and liabilities: | ||||||
Trade accounts receivable, net | (484) | (7,365) | [1] | (2,735) | [1] | |
Inventories | (5,323) | 1,728 | [1] | (5,080) | [1] | |
Due from related parties | (699) | 536 | [1] | (96) | [1] | |
Other assets | (378) | (1,144) | [1] | 1,040 | [1] | |
Trade accounts payable | 198 | 277 | [1] | 2,886 | [1] | |
Other current liabilities | 2,673 | 1,827 | [1] | 1,656 | [1] | |
Liability in respect of patent litigation | (14,600) | [1] | 14,600 | [1] | ||
Liability for employee severance benefits, net | 171 | 62 | [1] | (67) | [1] | |
Net cash provided by (used in) operating activities from continuing operations | 12,882 | (16,590) | [1] | 2,732 | [1] | |
Net cash used in operating activities from discontinued operations | [2] | (11,247) | (758) | [1] | (982) | [1] |
Net cash provided by (used in) operating activities | 1,635 | (17,348) | [1] | 1,750 | [1] | |
Cash flows from investing activities: | ||||||
Repayment of short-term deposits | 7,875 | [1] | 1,461 | [1] | ||
Purchase of fixed assets | (3,138) | (1,293) | [1] | (2,228) | [1] | |
Purchase of intangible assets | (84) | (183) | [1] | (71) | [1] | |
Net cash provided by (used in) investing activities from continuing operations | (3,222) | 6,399 | [1] | (838) | [1] | |
Net cash provided by (used in) investing activities from discontinued operations | [3] | 29,854 | (164) | [1] | 174 | [1] |
Net cash provided by (used in) investing activities | 26,632 | 6,235 | [1] | (664) | [1] | |
Cash flows from financing activities: | ||||||
Repayment of contingent liability | [1] | (169) | [1] | |||
Payment to OCS | (4) | [1] | (37) | [1] | ||
Share issuance, net | [1] | 11,904 | [1] | |||
Proceeds from exercise of share options and RSUs | 1,341 | [1] | 34 | [1] | ||
Dividend payment | (5,001) | [1] | [1] | |||
Net cash (used in) provided by financing activities from continuing operations | (3,660) | (4) | [1] | 11,732 | [1] | |
Net cash (used in) provided by financing activities | (3,660) | (4) | [1] | 11,732 | [1] | |
Effect of exchange rate changes on cash | (603) | 24 | [1] | (205) | [1] | |
Net (decrease) increase in cash and cash equivalents | 24,004 | (11,093) | [1] | 12,613 | [1] | |
Cash and cash equivalents at beginning of the year | [1] | 19,740 | 30,833 | 18,220 | ||
Cash and cash equivalents at end of the year | 43,744 | 19,740 | [1] | 30,833 | [1] | |
A. Cash paid during the year for: | ||||||
Interest paid | 17 | [1] | [1] | |||
Income taxes | $ 1,378 | $ 629 | [1] | $ 523 | [1] | |
[1] | Reclassified - due to presenting PCB operation as discontinued operation - See Note 19 | |||||
[2] | Including adjustment for the gain from sale of the discontinued operation in the amount of $12,807 in 2017. | |||||
[3] | Including net proceeds from the sale of the discontinued operation of $29,967 in 2017. |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2017 | |
Nature of Operations [Abstract] | |
Nature of Operations | Note 1 - Nature of Operations A. Camtek Ltd. (“Camtek” or “Company”), an Israeli corporation, is controlled by (43.73%) 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 industry. B . In September 2017, the Company completed the sale of its PCB inspection and metrology business unit. The Buyers acquired the entire assets and liabilities related to the PCB business unit, including 100% equity interests in the Company’s Chinese and Taiwanese subsidiaries. The Company received a total cash consideration of $32,000 and may receive an additional amount of up to $3,000 conditioned upon the PCB business unit's financial performance in 2018. The Company records the contingent consideration portion of the arrangement when the consideration is determined to be realizable. As of December 31, 2017, no asset with respect of contingent consideration was recognized. Due to the sale of the Company’s PCB business, the results of this unit ceased to be consolidated into these financial statements and are accounted as discontinued operations in the current period and reclassified prior periods. (See Note 19) C. During 2016 and 2015, the Company decided to re-organize its mode of operation with respect to its functional inkjet technology (FIT) activity. As part of this change, an obsolescence provision was recorded against the remaining Gryphon inventory, fixed assets and intangible assets and an adjustment was made to related liabilities. These decisions had no impact on the consolidated statement of operation in the year ended December 31, 2017. The impact of these decisions on the consolidated statement of operation in the years ended December 31, 2016 and 2015 was as follows: Year ended Year ended December 31, December 31, 2016 2015 U.S. Dollars U.S. Dollars Account Nature of impact (in thousands) (in thousands) Cost of Revenues Inventory write-off and other 4,931 1,041 Reorganization and impairment Impairment charge with respect of intangible assets - 1,595 Reorganization and impairment Revaluation of OCS liabilities *(4,962 ) (1,457 ) Reorganization and impairment Other 903 - 872 1,179 *see Note 10E |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
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. Due to presenting PCB operation as discontinued operation, all comparative information was reclassified. 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, deferred tax assets, legal contingencies 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. 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 net realizable 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. 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 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, trade accounts receivable, trade accounts payable and amounts from related parties approximate fair value because of their short-term nature. 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 collectability 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. 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 includes the foreign currency transaction gains or losses that result from re-measuring deferred taxes in income tax expense. 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. 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. 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 12C). 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. T. 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. U. 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. V. Recently adopted accounting standards Effective January 1, 2017, the Company adopted ASU No. 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory.” This simplifies subsequent measurement of inventory by having an entity measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable cost of completion, disposal, and transportation. The adoption of ASU 2015-11 did not have any impact on the Company's consolidated financial position, results of operations, and cash flows. In November 2015, the FASB issued ASU No. 2015-17, “Balance Sheet Classification of Deferred Taxes”. ASU 2015-17 requires entities to present all deferred tax assets and liabilities, along with any related valuation allowance, as non-current on the balance sheet. The guidance is effective for interim and annual periods beginning after December 15, 2016 (early adoption is permitted). Due to the implementation of ASU No. 2015-17, the Company re-classified current tax assets as of December 31, 2016, to non-current, in the amount of $894. In May 2017, the FASB issued ASU No. 2017-09, “Compensation - Stock Compensation (Topic718): Scope of Modification Accounting.” This ASU amends the scope of modification accounting for share-based payment arrangements and provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under ASC 718. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company chose to adopt ASU No. 2017-09 early and the adoption did not have any impact on the Company's consolidated financial position, results of operations, and cash flows. W. New standards not yet adopted 1. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” This ASU provides guidance on statement of cash flows presentation for eight specific cash flow issues where diversity in practice exists. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company is does not expect that the adoption of ASU No. 2016-15 will have an effect on its consolidated financial position, results of operations, and cash flows. 2. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” This ASU requires that lessees will be required to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months. ASU No. 2016-02 also will require disclosures designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative information. This ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018 with earlier adoption permitted. The expected impact for the Company is an increase in property, plant and equipment and in financial liabilities. Information on current lease agreements is disclosed in Note 10A. 3. In May 2014, the FASB issued Accounting Standards Update (“ ASU Revenue from Contracts with Customers (Topic 606) ASU 2014-09 Subsequently, the FASB issued the following standards related to ASU 2014-09: ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations ASU 2016-08 Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing ASU 2016-10 Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients ASU 2016-12 New Revenue Standards The Company adopted the New Revenue Standards in the first quarter of 2018 retrospectively with the cumulative effect recognized as of the date of adoption. The Company analyzed the impact of the New Revenue Standards on its contract portfolio by reviewing its current accounting policies and practices to identify potential differences that would result from applying the requirements of the New Revenue Standards to its revenue contracts. In addition, the Company identified and implemented appropriate changes to its business processes and related policies to support recognition and disclosure under the New Revenue Standards. The cumulative effect of adopting the New Revenue Standards on the Company’s revenues and operating income is not material, as the analysis of the Company’s contracts under the New Revenue Standards supports the recognition of revenue at a point in time for the majority of its contracts, which is consistent with its current revenue recognition model. Revenue on the majority of the Company’s contracts will continue to be recognized upon delivery because this represents the point in time at which control is transferred to the customer. Revenues derived from performance obligations such as warranty and service contracts will continue to be recognized over the period of the service. In addition, the number of the Company’s performance obligations under the New Revenue Standards is not materially different from the Company’s contract elements under the existing standard. Finally, the accounting for the estimate of variable consideration is not materially different compared to the Company’s current practice. The Company also does not expect the New Revenue Standards to have a material impact on its consolidated balance sheet. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | Note 3 - Cash and Cash Equivalents The Company’s cash and cash equivalent balance at December 31, 2017 and 2016 is denominated in the following currencies: December 31, 2017 2016 U.S. Dollars (in thousands) US Dollars 36,636 15,209 Euro 3,603 1,548 New Israeli 1,122 1,054 Other 2,383 1,929 43,744 19,740 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Inventories [Abstract] | |
Inventories | Note 4 - Inventories December 31, 2017 2016 U.S. Dollars (in thousands) Components 9,690 8,047 Work in process 6,584 5,179 Finished products * 6,445 4,882 22,719 18,108 * includes systems at customer locations not yet sold, as of December 31, 2017 and 2016, in the amount of $3,425 and $2,046 respectively. Inventories are presented in: December 31, 2017 2016 U.S. Dollars (in thousands) Current assets 21,336 16,647 Long-term assets (A) 1,383 1,461 22,719 18,108 (A) Long-term Inventory: At December 31, 2017, $1,383 of the Company's inventory is classified in long-term assets based on Management’s estimate based on the recent level of sales (at December 31, 2016- $1,461). These amounts are comprised of spare parts. 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 classified as current, 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. (B) Inventory write-down In 2017, based on Management's estimates regarding future sales, a provision of $84 was made against damaged, obsolete, excess and slow-moving inventory. In 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, against 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. |
Other Current Assets
Other Current Assets | 12 Months Ended |
Dec. 31, 2017 | |
Current assets | |
Other Current Assets | Note 5 - Other Current Assets December 31, 2017 2016 U.S. Dollars (in thousands) Due from Government institutions 607 1,741 Prepaid expenses 561 280 Deposits for operating leases 167 118 Income tax receivables 122 - Due from related parties (See Note 17) 681 - Other* 1,077 18 3,215 2,157 *Includes an amount of $571 due from sale of PCB business |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant and Equipment, Net | Note 6 - Property, Plant and Equipment, Net December 31, 2017 2016 U.S. Dollars (in thousands) Cost: Land 863 863 Building 13,307 11,109 Machinery and equipment 6,406 5,519 Office furniture and equipment 758 798 Computer equipment and software 4,310 3,748 Automobiles 87 87 Leasehold improvements 353 490 26,084 22,614 Less accumulated depreciation 10,581 8,889 15,503 13,725 Depreciation expenses for the years ended December 31, 2017, 2016 and 2015 amounted to $2,001, $1,820, and $1,757, respectively. In accordance with credit line agreements, a lien has been placed on the Company’s facility in Israel. See Note 10(D). During the years ended December 31, 2017 and 2016, the Company constructed a new factory adjacent to its headquarters. Costs incurred up to the reporting date are $2,044 (2016 - $63). |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2017 | |
Intangible Assets, Net [Abstract] | |
Intangible Assets, Net | Note 7 - Intangible Assets, Net December 31, 2017 2016 U.S. Dollars (in thousands) Patent registration costs 1,513 1,429 Accumulated amortization 1,031 910 Total intangible asset, net 482 519 Patent registration costs are amortized over their estimated useful life of 10 years. Amortization expense for the years ended December 31, 2017, 2016 and 2015 amounted to $121, $141 and $127, respectively. As of December 31, 2017, the estimated amortization expenses of intangible assets for the years 2018 to 2022 is as follows: Year ending December 31, U.S. Dollars (in thousands) 2018 73 2019 73 2020 73 2021 70 2022 59 348 |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Other Current Liabilities [Abstract] | |
Other Current Liabilities | Note 8 - Other Current Liabilities December 31, 2017 2016 U.S. Dollars (in thousands) Accrued employee compensation and related benefits 6,248 5,547 Commissions 4,204 4,177 Advances from customers and deferred revenues 3,589 1,418 Accrued expenses 1,306 1,715 Accrued warranty costs (1) 1,300 1,102 Government institutions 748 763 Due to related parties (see Note 17) - 18 17,395 14,740 (1) Changes in the accrued warranty costs are as follows: Year Ended December 31, 2017 2016 2015 U.S. Dollars (in thousands) Beginning of year 1,102 1,113 912 Accruals 2,222 1,823 1,890 Usage (2,024 ) (1,834 ) (1,689 ) Balance at end of year 1,300 1,102 1,113 |
Liability for Employee Severanc
Liability for Employee Severance Benefits | 12 Months Ended |
Dec. 31, 2017 | |
Liability for Employee Severance Benefits [Abstract] | |
Liability for Employee Severance Benefits | Note 9 - 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 $838 and $667 as of December 31, 2017 and 2016, respectively. 3. Severance pay expenses were $1,078, $1,004, and $935 in 2017, 2016 and 2015, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 10 - Commitments and Contingencies A. Operating leases The Company’s subsidiaries have entered into various non-cancelable operating lease agreements for office space and operating leases for vehicles. As of December 31, 2017, minimum future rental payments under such non-cancelable operating leases are as follows: Year Ending December 31, U.S. Dollars (in thousands) 2018 1,070 2019 814 2020 533 Thereafter 154 2,571 Aggregate office rent expenses amounted to $523, $528, and $490 in 2017, 2016 and 2015, 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 (in thousands) 2015 725 38 - (8 ) 755 2016 755 16 (180 ) - 591 2017 591 - - - 591 C. Litigation In July 2017, the Company announced that it had reached a settlement with Rudolph Technologies Inc. (NASDAQ: RTEC) relating to pending patent lawsuits that Rudolph filed against the Company and that the Company filed against Rudolph. According to the settlement, the Company paid Rudolph $13 million and each side has dismissed their claims against each other with prejudice. The settlement further gives the Company a perpetual right to sell its existing products, the Condor, Gannet and Eagle, as well as future products, without any claim of patent infringement from any of the patent families that the Company had been sued on. The Company granted similar rights to Rudolph on Camtek's patent for Kerf inspection. In addition, the parties agreed to a quiet period of three years, during which neither party may file any action seeking damages against the other party. D. Lines of credit The Company has a credit agreement with two banks that provides for a line of credit by which it is permitted to borrow up to $4 million. As of December 31, 2017, the credit facility has not been utilized, and the Company comply with the required covenants specified in the credit line agreement. E. 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, 2017, the amount of non-repaid grants received including interest accrued amounted to $6,734 (December 31, 2016 - $6,503). 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 as detailed in Note 1C, 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. F. Settlement of a dispute with Chief Scientist In 2017, the Company resolved a dispute which had 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. In the framework of the dispute settlement, the Company repaid its entire obligation in the amount of $2.1 million and received permission from the OCS to transfer the intellectual property as part of the PCB sale. The payment was recorded as a selling, general and administrative expense in the discontinued operation. See also Note 19. G. Outstanding Purchase Orders As of December 31, 2017, the Company has purchase orders of $6,570 (2016 - $6,772) 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, 2017 | |
Concentration of Risk and Financial Instruments [Abstract] | |
Concentration of Risk and Financial Instruments | Note 11 - 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 2018. 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 2018. 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. 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 and is based on quotations from financial institutions (using Level 2 inputs). The Company does not apply hedge accounting. In 2016 and 2015 gains /losses in the consolidated statement of operations on these instruments were in the amount of ($3) and $92, respectively. As of December 31, 2017, the Company did not have any open instruments. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | Note 12 - 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. Stock Option Plan As of December 31, 2017, 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 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. As of the balance sheet date, the number of options available for grant was 2,072,553. 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 and recognized over the vesting period of four years. 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. 2017 Grant 2016 Grant 2015 Grant Valuation assumptions: Dividend yield 0 0 0 Expected volatility 66% 66% 67%-68% Risk-free interest rate 1.87% 1.38% 1.6%-2.16% Expected life (years) * 4.8 4.8 4.8 *Expected life for the periods presented was determined according to the simplified method since the Company does not have enough history to make an estimate. The total intrinsic value of outstanding options as of December 31, 2017, 2016, and 2015 is $3,450, $1,040 and $45, respectively. The total intrinsic value of vested options as of December 31, 2017, 2016, and 2015 is $1,140, $204 and $38 respectively. The total stock option compensation expense related to continued operations amounted to $634, $429, and $270 in 2017, 2016 and 2015, respectively. As of December 31, 2017, there was $870 of total unrecognized compensation cost related to non-vested share-based compensation arrangements. That cost is expected to be recognized over a weighted-average period of 1.51 years. Share option activity during the past three years is as follows: Year Ended December 31, 2017 2016 2015 Weighted Weighted Weighted Number average Number average Number average of exercise of exercise of exercise options price US$ options price US$ options price US$ Outstanding at January 1 1,653,434 2.82 1,151,121 3.28 833,799 3.34 Granted 154,600 2.75 527,500 1.92 464,335 2.99 Forfeited and cancelled (152,698 ) 2.77 (25,187 ) 5.00 (122,952 ) 2.95 Exercised (481,903 ) 2.87 - 0.00 (24,061 ) 1.40 Outstanding at year end 1,173,433 2.80 1,653,434 2.82 1,151,121 3.28 Vested at year end 490,086 3.36 725,466 3.32 461,192 3.48 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, 2017 1,173,433 2.80 4.65 3,450 Vested and expected to vest at 1,110,325 2.80 4.65 3,265 Exercisable at December 31, 2017 490,086 3.36 3.66 1,140 The following table summarizes information about share options at December 31, 2017: Weighted average Number of remaining outstanding Number contractual Exercise price US$ options exercisable life in years 0-2 680,685 89,860 5.44 3-4 492,748 400,226 3.56 1,173,433 490,086 4.65 The following table summarizes information about non-vested options at December 31, 2017: Weighted average grant- date Options fair value Balance at January 1, 2017 927,968 1.26 Granted 154,600 3.30 Vested (286,685 ) 1.54 Forfeited (112,536 ) 1.38 Balance at December 31, 2017 683,347 1.58 D. 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. In 2017, 86,500 restricted shares were awarded. The total unrecognized compensation cost amounted to $392. As of the balance sheet date the number of RSU’s available for grant was 583,629. E. Dividend On November 30, 2017, the Company paid a dividend of $0.14 per share, totaling $5 million. |
Earnings Per Ordinary Share
Earnings Per Ordinary Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Ordinary Share [Abstract] | |
Earnings Per Ordinary Share | Note 13 - 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, 2017 2016 2015 U.S. Dollars (In thousands, except per share data) Net income (loss) attributable to Ordinary Shares 13,962 4,734 (10,113 ) Weighted average number of Ordinary Shares outstanding used in basic earnings per Ordinary Share calculation 35,441 35,348 33,352 Add assumed exercise of outstanding dilutive potential Ordinary Shares 523 28 - Weighted average number of Ordinary Shares Outstanding used in diluted earnings per Ordinary Share calculation 35,964 35,376 33,352 Basic income from continuing operations (loss) per Ordinary Share 0.05 0.02 (0.38 ) Basic income from discontinued operations per Ordinary Share 0.35 0.11 0.08 Basic net income (loss) per Ordinary Share 0.40 0.13 (0.30 ) Diluted income from continuing operations (loss) per Ordinary Share 0.05 0.02 (0.38 ) Diluted income from discontinued operations per Ordinary Share 0.34 0.11 0.08 Diluted net income (loss) per Ordinary Share 0.39 0.13 (0.30 ) Number of options excluded from the diluted earnings per share calculation due to their anti-dilutive effect - 1,538 1,151 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Information [Abstract] | |
Segment Information | Note 14 - Segment Information In the consolidated financial statements as of December 31, 2016, the Company presented two operating segments. Due to the sale of the PCB business as described in Note 1, the Company has one operating segment. 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, 2017 2016 2015 U.S. Dollars (in thousands) Asia Pacific 79,105 66,275 55,990 United States 9,484 8,151 8,016 Europe 4,896 4,802 5,381 93,485 79,228 69,387 |
Selected Income Statement Data
Selected Income Statement Data | 12 Months Ended |
Dec. 31, 2017 | |
Selected Income Statement Data [Abstract] | |
Selected Income Statement Data | Note 15 - Selected Income Statement Data A. Selling, general and administrative expenses Year Ended December 31, 2017 2016 2015 U.S. Dollars (in thousands) Selling (1) 14,096 13,146 12,376 General and administrative 7,926 8,754 6,879 22,022 21,900 19,255 (1) Including shipping and handling costs 697 625 619 B. Financial income (expenses), net Year Ended December 31, 2017 2016 2015 U.S. Dollars (in thousands) Interest expense (13 ) (246 ) (323 ) Interest income 77 63 61 Re-evaluation of contingent consideration - - (437 ) Re-evaluation expense on liabilities to the OCS - (183 ) (101 ) Other, net (*) (214 ) (481 ) (512 ) (150 ) (847 ) (1,312 ) (*) Other, net includes foreign currency income (expense) resulting from transactions not denominated in U.S. Dollars amounting to $(41), $(351), and $(291) in 2017, 2016 and 2015, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Income Taxes | Note 16 - 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 2015-2017: 2015 – 26.5% 2016 – 25% 2017 – 24% 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 was granted “Approved Enterprise” and “Beneficiary Enterprise” status in accordance with the Encouragement Law. The tax benefit of the Approved Enterprise has expired and the Company has chosen 2010 as the years of election for the Beneficiary Enterprise. 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 benefit period of the Beneficiary Enterprise 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 determined 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, 2017 approximately $20,636 are tax-exempt earnings attributable to its Approved Enterprise and approximately $14,923 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, 2017, if the income attributed to the Approved Enterprise was distributed as a dividend, the Company would incur a tax of approximately $5,157. 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 $3,730. 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 under local tax laws and regulations. D. Composition of income (loss) before income taxes and income tax expense (benefit) Year Ended December 31, 2017 2016 2015 U.S. Dollars (in thousands) Income (loss) before income taxes from continuing operations: Israel (4,761 ) (390 ) (15,362 ) Non-Israeli 1,574 1,562 474 (3,187 ) 1,172 (14,888 ) Income tax expense from continuing operations: Current: Israel 56 28 123 Non-Israeli 122 372 148 178 400 271 Deferred tax expense (benefit) from continuing operations: Israel (5,125 ) 620 (2,654 ) Non-Israeli 72 (717 ) 311 (5,053 ) (97 ) (2,343 ) (4,875 ) 303 (2,072 ) E. Reconciliation of income tax expense at the statutory rate to actual income tax expense 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, 2017 2016 2015 U.S. Dollars (in thousands) Income (loss) before income taxes from continuing operation (3,187 ) 1,172 (14,888 ) Statutory tax rate 24 % 25 % 26.5 % Theoretical income tax expense (benefit) (765 ) 293 (3,945 ) Increase (decrease) in income tax expense resulting from: Change in valuation allowance (185 ) (721 ) 308 Non-deductible expenses(*) 186 182 640 Differences between foreign currencies and dollar-adjusted financial statements-net (587 ) (120 ) 283 Tax rate differential 633 (57 ) (44 ) Undistributed earnings of subsidiary - - 490 Change in tax rate 182 592 - Recognition of income tax benefit with (4,929 ) - - Other (**) 590 134 196 Actual income tax expense (benefit) (4,875 ) 303 (2,072 ) (*) Including non-deductible share based compensation. (**) In 2017 mainly related to intercompany dividend distribution tax liability 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, 2017 2016 U.S. Dollars (in thousands) Deferred tax assets: Allowance for doubtful accounts 92 140 Inventory write-down 376 339 Unearned revenue 63 243 Accrued expenses 367 393 Net operating losses (NOL) and tax credit carryforwards 4,218 5,631 Other temporary differences 113 205 Total gross deferred tax assets 5,229 6,951 Valuation allowance (496 ) (2,222 ) Deferred tax asset, net of valuation allowance 4,733 4,729 Deferred tax liabilities: Property, plant and equipment (242 ) (223 ) Undistributed earnings (424 ) (433 ) (666 ) (656 ) Net deferred tax assets 4,067 4,073 Net deferred tax assets attributable to discontinued operation - 104 Deferred tax assets are recognized for the anticipated tax benefits associated with operating loss carryforwards, tax credit carryforwards and deductible temporary differences. If it is more likely than not that some or all of the deferred tax assets will not be realized, the deferred tax credits are reduced 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, 2017 and 2016 the Company had a valuation allowance of $496 and $2,222. The net change in the total valuation allowance was a decrease of $1,726, $865 and $656 for the years ended December 31, 2017, December 31, 2016 and December 31, 2015 respectively. An amount of $1,446 out of the decrease in valuation allowance in 2017 resulted from the expiration of carryforward losses due to the liquidation of two Israeli subsidiaries. As of December 31, 2017, the Company in Israel has a regular NOL aggregating approximately $46,028 and tax credit carryforwards of $496 that will not expire. Based on the earnings history of the Company’s Israeli operations in recent years, including a non-recurring loss from litigation and a non-recurring disposal gain, and Management’s expectation of continued profitability, Management believes that $3,314 of its deferred tax assets in Israel are more likely than not to be realized based on forecasts of profits over the next three years and the remainder of the Israeli deferred tax assets have been reduced by a valuation allowance. The amount of the Israeli deferred tax assets considered realizable, however, could be revised in the near term if estimates of future taxable income are changed. As of December 31, 2017, a foreign subsidiary has NOL carryforwards aggregating approximately $800 that can be carried forward indefinitely. During 2017 the Company changed its previous plans related to this subsidiary, and as a result reversed the valuation allowance on this subsidiary’s NOL in the amount of $240 thousand. G. Accounting for uncertainty in income taxes For the years ended December 31, 2017, 2016 and 2015, 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, 2017, 2016 and 2015, no interest and penalties related to income taxes have been accrued. H. Tax assessments The Company in Israel files its income tax returns in Israel while its principle foreign subsidiaries file their income tax returns in Belgium, Hong Kong, and United States of America. The Israeli tax returns of Camtek are open to examination by the Israeli Tax Authorities for the tax years beginning 2013, while the tax returns of its principal foreign subsidiaries remain subject to examination for the tax years beginning 1999 in Belgium, 2011 in Hong Kong and 2014 in the United States of America. |
Balances and Transactions with
Balances and Transactions with Related Parties | 12 Months Ended |
Dec. 31, 2017 | |
Balances and Transactions with Related Parties [Abstract] | |
Balances and Transactions with Related Parties | Note 17 - Balances and Transactions with Related Parties A. Balances with related parties: December 31, December 31, 2017 2016 U.S. Dollars (in thousands) Due from (to) related parties 681 (18 ) B. Transactions with related parties: Year Ended December 31, 2017 2016 2015 U.S. Dollars (in thousands) Purchases from related parties 15 3 43 Interest income (expense) from Parent 22 (28 ) (9 ) Unpaid balances 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 by 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) the 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 Chief Executive Officer Pursuant to employment agreement with the Chief Executive Officer ("CEO") 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 CEO receives from the Company 90% of a full time salary and is compensated directly by Amitec for the remaining 10% of his time. The CEO serves as the Chairman of Parent. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 18 - 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, 2017 and 2016, the Company did not have any assets or liabilities measured at fair value on a recurring basis. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | Note 19 – Discontinued Operations Further to that mentioned in Note 1(B), in 2017 the sale of the Company’s PCB business unit was completed. The Company received a gross amount of $ 32 million as a result of the acquisition, from which an amount of $2 million was deducted in respect of acquisition expenses and working capital adjustments. As a result of the sale the Company recognized a capital gain in the amount of $ 12.8 million. Accordingly, the assets and liabilities of the PCB business have been segregated and reclassified as held for sale in the comparative balance sheets as of December 31, 2016, and the activities of the PCB business have been segregated and reported as discontinued operations in the consolidated statements of operations for all periods presented. The following table presents a reconciliation of the carrying amounts of major classes of assets and liabilities of the discontinued operation to total assets and liabilities of the disposal group classified as held for sale in the consolidated balance sheets as of December 31, 2016: December 31, 2016 U.S. Dollars (In thousands) Assets Current assets Trade accounts receivable, net 13,934 Inventories 8,801 Due from related parties 95 Other current assets 708 Total current assets 23,538 Property, plant and equipment, net 384 Long-term inventory 646 Deferred tax asset 104 Intangible assets, net 346 1,096 Total assets 25,018 Liabilities and shareholder’s equity Current liabilities Trade accounts payable 2,679 Other current liabilities 3,600 Total current liabilities 6,279 Long-term liabilities Liability for employee severance benefits 203 203 Total liabilities 6,482 The following table presents a reconciliation of the major classes of line items constituting pretax profit from discontinued operations to after-tax profit reported in discontinued operations for the years ended December 31, 2017, 2016 and 2015: Year Ended December 31, 2017 2016 2015 U.S. Dollars (In thousands) Results of discontinued operation: Total revenues 36,447 30,295 29,888 Total cost of revenues 21,368 18,831 18,600 Research and development costs (3,228 ) (3,266 ) (3,439 ) Selling, general and administrative expenses (6,260 ) (3,601 ) (4,332 ) Financial expenses, net (96 ) (147 ) (565 ) Gain on sale of discontinued operation 12,807 - - Income from discontinued operations before taxes 18,302 4,450 2,952 Income tax expense (6,028 ) (585 ) (249 ) Net income from discontinued operations 12,274 3,865 2,703 Year Ended December 31, 2017 2016* 2015* U.S. Dollars (In thousands) Cash flows from discontinued operation Net cash (used in) operating activities * (11,247 ) (758 ) (982 ) Net cash provided by (used in) investing activities** 29,854 (164 ) 174 Net cash provided by financing activities - - - Net cash provided by (used in) discontinued operations 18,607 (922 ) (808 ) *Including adjustment for the gain from sale of the discontinued operation in the amount of $12,807 in 2017. **Including net proceeds from the sale of the discontinued operation of $29,967 in 2017. December 31, 2017 U.S. Dollars (In thousands) Effect of disposal on the financial position of the Company as at the transaction date Trade and other receivables 16,526 Inventories 11,219 Fixed and intangible assets 763 Trade payables (4,426 ) Other payables (6,922 ) Net assets and liabilities 17,160 Net cash consideration 29,967 Gain on sale of discontinued operation 12,807 |
Significant Accounting Polici26
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
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. Due to presenting PCB operation as discontinued operation, all comparative information was reclassified. |
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, deferred tax assets, legal contingencies 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. |
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 net realizable 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. |
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 |
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, trade accounts receivable, trade accounts payable and amounts from related parties approximate fair value because of their short-term nature. |
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 collectability 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. |
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 includes the foreign currency transaction gains or losses that result from re-measuring deferred taxes in income tax expense. 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. |
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. |
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 12C). |
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. |
Contingent liabilities | T. 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 | U. 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. |
Recently adopted accounting standards | V. Recently adopted accounting standards Effective January 1, 2017, the Company adopted ASU No. 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory.” This simplifies subsequent measurement of inventory by having an entity measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable cost of completion, disposal, and transportation. The adoption of ASU 2015-11 did not have any impact on the Company's consolidated financial position, results of operations, and cash flows. In November 2015, the FASB issued ASU No. 2015-17, “Balance Sheet Classification of Deferred Taxes”. ASU 2015-17 requires entities to present all deferred tax assets and liabilities, along with any related valuation allowance, as non-current on the balance sheet. The guidance is effective for interim and annual periods beginning after December 15, 2016 (early adoption is permitted). Due to the implementation of ASU No. 2015-17, the Company re-classified current tax assets as of December 31, 2016, to non-current, in the amount of $894. In May 2017, the FASB issued ASU No. 2017-09, “Compensation - Stock Compensation (Topic718): Scope of Modification Accounting.” This ASU amends the scope of modification accounting for share-based payment arrangements and provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under ASC 718. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company chose to adopt ASU No. 2017-09 early and the adoption did not have any impact on the Company's consolidated financial position, results of operations, and cash flows. |
New standards not yet adopted | W. New standards not yet adopted 1. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” This ASU provides guidance on statement of cash flows presentation for eight specific cash flow issues where diversity in practice exists. This ASU is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company is does not expect that the adoption of ASU No. 2016-15 will have an effect on its consolidated financial position, results of operations, and cash flows. 2. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” This ASU requires that lessees will be required to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months. ASU No. 2016-02 also will require disclosures designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative information. This ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018 with earlier adoption permitted. The expected impact for the Company is an increase in property, plant and equipment and in financial liabilities. Information on current lease agreements is disclosed in Note 10A. 3. In May 2014, the FASB issued Accounting Standards Update (“ ASU Revenue from Contracts with Customers (Topic 606) ASU 2014-09 Subsequently, the FASB issued the following standards related to ASU 2014-09: ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations ASU 2016-08 Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing ASU 2016-10 Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients ASU 2016-12 New Revenue Standards The Company adopted the New Revenue Standards in the first quarter of 2018 retrospectively with the cumulative effect recognized as of the date of adoption. The Company analyzed the impact of the New Revenue Standards on its contract portfolio by reviewing its current accounting policies and practices to identify potential differences that would result from applying the requirements of the New Revenue Standards to its revenue contracts. In addition, the Company identified and implemented appropriate changes to its business processes and related policies to support recognition and disclosure under the New Revenue Standards. The cumulative effect of adopting the New Revenue Standards on the Company’s revenues and operating income is not material, as the analysis of the Company’s contracts under the New Revenue Standards supports the recognition of revenue at a point in time for the majority of its contracts, which is consistent with its current revenue recognition model. Revenue on the majority of the Company’s contracts will continue to be recognized upon delivery because this represents the point in time at which control is transferred to the customer. Revenues derived from performance obligations such as warranty and service contracts will continue to be recognized over the period of the service. In addition, the number of the Company’s performance obligations under the New Revenue Standards is not materially different from the Company’s contract elements under the existing standard. Finally, the accounting for the estimate of variable consideration is not materially different compared to the Company’s current practice. The Company also does not expect the New Revenue Standards to have a material impact on its consolidated balance sheet. |
Nature of Operations (Tables)
Nature of Operations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Nature of Operations [Abstract] | |
Schedule of Details of Impairment | The impact of these decisions on the consolidated statement of operation in the years ended December 31, 2016 and 2015 was as follows: Year ended Year ended December 31, December 31, 2016 2015 U.S. Dollars U.S. Dollars Account Nature of impact (in thousands) (in thousands) Cost of Revenues Inventory write-off and other 4,931 1,041 Reorganization and impairment Impairment charge with respect of intangible assets - 1,595 Reorganization and impairment Revaluation of OCS liabilities *(4,962 ) (1,457 ) Reorganization and impairment Other 903 - 872 1,179 *see Note 10E |
Significant Accounting Polici28
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents, Currencies | The Company’s cash and cash equivalent balance at December 31, 2017 and 2016 is denominated in the following currencies: December 31, 2017 2016 U.S. Dollars (in thousands) US Dollars 36,636 15,209 Euro 3,603 1,548 New Israeli 1,122 1,054 Other 2,383 1,929 43,744 19,740 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventories [Abstract] | |
Schedule of Inventories | December 31, 2017 2016 U.S. Dollars (in thousands) Components 9,690 8,047 Work in process 6,584 5,179 Finished products * 6,445 4,882 22,719 18,108 * includes systems at customer locations not yet sold, as of December 31, 2017 and 2016, in the amount of $3,425 and $2,046 respectively. |
Balance Sheet Presentation of Inventories | Inventories are presented in: December 31, 2017 2016 U.S. Dollars (in thousands) Current assets 21,336 16,647 Long-term assets (A) 1,383 1,461 22,719 18,108 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Current assets | |
Other Current Assets | December 31, 2017 2016 U.S. Dollars (in thousands) Due from Government institutions 607 1,741 Prepaid expenses 561 280 Deposits for operating leases 167 118 Income tax receivables 122 - Due from related parties (See Note 17) 681 - Other* 1,077 18 3,215 2,157 *Includes an amount of $571 due from sale of PCB business |
Property, Plant and Equipment32
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment, Net [Abstract] | |
Schedule of Property, Plant and Equipment, Net | December 31, 2017 2016 U.S. Dollars (in thousands) Cost: Land 863 863 Building 13,307 11,109 Machinery and equipment 6,406 5,519 Office furniture and equipment 758 798 Computer equipment and software 4,310 3,748 Automobiles 87 87 Leasehold improvements 353 490 26,084 22,614 Less accumulated depreciation 10,581 8,889 15,503 13,725 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Intangible Assets, Net [Abstract] | |
Intangible Assets, Net | December 31, 2017 2016 U.S. Dollars (in thousands) Patent registration costs 1,513 1,429 Accumulated amortization 1,031 910 Total intangible asset, net 482 519 |
Estimated Amortization Expense | As of December 31, 2017, the estimated amortization expenses of intangible assets for the years 2018 to 2022 is as follows: Year ending December 31, U.S. Dollars (in thousands) 2018 73 2019 73 2020 73 2021 70 2022 59 348 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Current Liabilities [Abstract] | |
Schedule of Other Current Liabilities | December 31, 2017 2016 U.S. Dollars (in thousands) Accrued employee compensation and related benefits 6,248 5,547 Commissions 4,204 4,177 Advances from customers and deferred revenues 3,589 1,418 Accrued expenses 1,306 1,715 Accrued warranty costs (1) 1,300 1,102 Government institutions 748 763 Due to related parties (see Note 17) - 18 17,395 14,740 |
Changes In Product Warranty Obligation | Year Ended December 31, 2017 2016 2015 U.S. Dollars (in thousands) Beginning of year 1,102 1,113 912 Accruals 2,222 1,823 1,890 Usage (2,024 ) (1,834 ) (1,689 ) Balance at end of year 1,300 1,102 1,113 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies [Abstract] | |
Minimum Future Rental Payments | As of December 31, 2017, minimum future rental payments under such non-cancelable operating leases are as follows: Year Ending December 31, U.S. Dollars (in thousands) 2018 1,070 2019 814 2020 533 Thereafter 154 2,571 |
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 (in thousands) 2015 725 38 - (8 ) 755 2016 755 16 (180 ) - 591 2017 591 - - - 591 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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. 2017 Grant 2016 Grant 2015 Grant Valuation assumptions: Dividend yield 0 0 0 Expected volatility 66% 66% 67%-68% Risk-free interest rate 1.87% 1.38% 1.6%-2.16% Expected life (years) * 4.8 4.8 4.8 *Expected life for the periods presented was determined according to the simplified method since the Company does not have enough history to make an estimate. |
Stock Option Activity | Share option activity during the past three years is as follows: Year Ended December 31, 2017 2016 2015 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 1,653,434 2.82 1,151,121 3.28 833,799 3.34 Granted 154,600 2.75 527,500 1.92 464,335 2.99 Forfeited and cancelled (152,698 ) 2.77 (25,187 ) 5.00 (122,952 ) 2.95 Exercised (481,903 ) 2.87 - 0.00 (24,061 ) 1.40 Outstanding at year end 1,173,433 2.80 1,653,434 2.82 1,151,121 3.28 Vested at year end 490,086 3.36 725,466 3.32 461,192 3.48 |
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, 2017 1,173,433 2.80 4.65 3,450 Vested and expected to vest at 1,110,325 2.80 4.65 3,265 Exercisable at December 31, 2017 490,086 3.36 3.66 1,140 |
Information about Share Options | The following table summarizes information about share options at December 31, 2017: Weighted average Number of remaining outstanding Number contractual Exercise price US$ options exercisable life in years 0-2 680,685 89,860 5.44 3-4 492,748 400,226 3.56 1,173,433 490,086 4.65 |
Information about Nonvested Options | The following table summarizes information about non-vested options at December 31, 2017: Weighted average grant- date Options fair value Balance at January 1, 2017 927,968 1.26 Granted 154,600 3.30 Vested (286,685 ) 1.54 Forfeited (112,536 ) 1.38 Balance at December 31, 2017 683,347 1.58 |
Earnings Per Ordinary Share (Ta
Earnings Per Ordinary Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Ordinary Share [Abstract] | |
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, 2017 2016 2015 U.S. Dollars (In thousands, except per share data) Net income (loss) attributable to Ordinary Shares 13,962 4,734 (10,113 ) Weighted average number of Ordinary Shares outstanding used in basic earnings per Ordinary Share calculation 35,441 35,348 33,352 Add assumed exercise of outstanding dilutive potential Ordinary Shares 523 28 - Weighted average number of Ordinary Shares Outstanding used in diluted earnings per Ordinary Share calculation 35,964 35,376 33,352 Basic income from continuing operations (loss) per Ordinary Share 0.05 0.02 (0.38 ) Basic income from discontinued operations per Ordinary Share 0.35 0.11 0.08 Basic net income (loss) per Ordinary Share 0.40 0.13 (0.30 ) Diluted income from continuing operations (loss) per Ordinary Share 0.05 0.02 (0.38 ) Diluted income from discontinued operations per Ordinary Share 0.34 0.11 0.08 Diluted net income (loss) per Ordinary Share 0.39 0.13 (0.30 ) Number of options excluded from the diluted earnings per share calculation due to their anti-dilutive effect - 1,538 1,151 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Information [Abstract] | |
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, 2017 2016 2015 U.S. Dollars (in thousands) Asia Pacific 79,105 66,275 55,990 United States 9,484 8,151 8,016 Europe 4,896 4,802 5,381 93,485 79,228 69,387 |
Selected Income Statement Data
Selected Income Statement Data (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Selected Income Statement Data [Abstract] | |
Selected Selling, General and Administrative Expenses Data | Year Ended December 31, 2017 2016 2015 U.S. Dollars (in thousands) Selling (1) 14,096 13,146 12,376 General and administrative 7,926 8,754 6,879 22,022 21,900 19,255 (1) Including shipping and handling costs 697 625 619 |
Selected Financial Income (Expenses) Data | Year Ended December 31, 2017 2016 2015 U.S. Dollars (in thousands) Interest expense (13 ) (246 ) (323 ) Interest income 77 63 61 Re-evaluation of contingent consideration - - (437 ) Re-evaluation expense on liabilities to the OCS - (183 ) (101 ) Other, net (*) (214 ) (481 ) (512 ) (150 ) (847 ) (1,312 ) (*) Other, net includes foreign currency income (expense) resulting from transactions not denominated in U.S. Dollars amounting to $(41), $(351), and $(291) in 2017, 2016 and 2015, respectively. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 2015 U.S. Dollars (in thousands) Income (loss) before income taxes from continuing operations: Israel (4,761 ) (390 ) (15,362 ) Non-Israeli 1,574 1,562 474 (3,187 ) 1,172 (14,888 ) Income tax expense from continuing operations: Current: Israel 56 28 123 Non-Israeli 122 372 148 178 400 271 Deferred tax expense (benefit) from continuing operations: Israel (5,125 ) 620 (2,654 ) Non-Israeli 72 (717 ) 311 (5,053 ) (97 ) (2,343 ) (4,875 ) 303 (2,072 ) |
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, 2017 2016 2015 U.S. Dollars (in thousands) Income (loss) before income taxes from continuing operation (3,187 ) 1,172 (14,888 ) Statutory tax rate 24 % 25 % 26.5 % Theoretical income tax expense (benefit) (765 ) 293 (3,945 ) Increase (decrease) in income tax expense resulting from: Change in valuation allowance (185 ) (721 ) 308 Non-deductible expenses(*) 186 182 640 Differences between foreign currencies and dollar-adjusted financial statements-net (587 ) (120 ) 283 Tax rate differential 633 (57 ) (44 ) Undistributed earnings of subsidiary - - 490 Change in tax rate 182 592 - Recognition of income tax benefit with respect to losses related to investment in subsidiaries (4,929 ) - - Other (**) 590 134 196 Actual income tax expense (benefit) (4,875 ) 303 (2,072 ) (*) Including non-deductible share based compensation. (**) In 2017 mainly related to intercompany dividend distribution tax liability |
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, 2017 2016 U.S. Dollars (in thousands) Deferred tax assets: Allowance for doubtful accounts 92 140 Inventory write-down 376 339 Unearned revenue 63 243 Accrued expenses 367 393 Net operating losses (NOL) and tax credit carryforwards 4,218 5,631 Other temporary differences 113 205 Total gross deferred tax assets 5,229 6,951 Valuation allowance (496 ) (2,222 ) Deferred tax asset, net of valuation allowance 4,733 4,729 Deferred tax liabilities: Property, plant and equipment (242 ) (223 ) Undistributed earnings (424 ) (433 ) (666 ) (656 ) Net deferred tax assets 4,067 4,073 Net deferred tax assets attributable to discontinued operation - 104 |
Balances and Transactions wit41
Balances and Transactions with Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Balances and Transactions with Related Parties [Abstract] | |
Schedule of Related Party Balances and Transactions | A. Balances with related parties: December 31, December 31, 2017 2016 U.S. Dollars (in thousands) Due from (to) related parties 681 (18 ) B. Transactions with related parties: Year Ended December 31, 2017 2016 2015 U.S. Dollars (in thousands) Purchases from related parties 15 3 43 Interest income (expense) from Parent 22 (28 ) (9 ) |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations [Abstract] | |
Schedule of Discontinued Operation | The following table presents a reconciliation of the carrying amounts of major classes of assets and liabilities of the discontinued operation to total assets and liabilities of the disposal group classified as held for sale in the consolidated balance sheets as of December 31, 2016: December 31, 2016 U.S. Dollars (In thousands) Assets Current assets Trade accounts receivable, net 13,934 Inventories 8,801 Due from related parties 95 Other current assets 708 Total current assets 23,538 Property, plant and equipment, net 384 Long-term inventory 646 Deferred tax asset 104 Intangible assets, net 346 1,096 Total assets 25,018 Liabilities and shareholder’s equity Current liabilities Trade accounts payable 2,679 Other current liabilities 3,600 Total current liabilities 6,279 Long-term liabilities Liability for employee severance benefits 203 203 Total liabilities 6,482 The following table presents a reconciliation of the major classes of line items constituting pretax profit from discontinued operations to after-tax profit reported in discontinued operations for the years ended December 31, 2017, 2016 and 2015: Year Ended December 31, 2017 2016 2015 U.S. Dollars (In thousands) Results of discontinued operation: Total revenues 36,447 30,295 29,888 Total cost of revenues 21,368 18,831 18,600 Research and development costs (3,228 ) (3,266 ) (3,439 ) Selling, general and administrative expenses (6,260 ) (3,601 ) (4,332 ) Financial expenses, net (96 ) (147 ) (565 ) Gain on sale of discontinued operation 12,807 - - Income from discontinued operations before taxes 18,302 4,450 2,952 Income tax expense (6,028 ) (585 ) (249 ) Net income from discontinued operations 12,274 3,865 2,703 Year Ended December 31, 2017 2016* 2015* U.S. Dollars (In thousands) Cash flows from discontinued operation Net cash (used in) operating activities * (11,247 ) (758 ) (982 ) Net cash provided by (used in) investing activities** 29,854 (164 ) 174 Net cash provided by financing activities - - - Net cash provided by (used in) discontinued operations 18,607 (922 ) (808 ) *Including adjustment for the gain from sale of the discontinued operation in the amount of $12,807 in 2017. **Including net proceeds from the sale of the discontinued operation of $29,967 in 2017. December 31, 2017 U.S. Dollars (In thousands) Effect of disposal on the financial position of the Company as at the transaction date Trade and other receivables 16,526 Inventories 11,219 Fixed and intangible assets 763 Trade payables (4,426 ) Other payables (6,922 ) Net assets and liabilities 17,160 Net cash consideration 29,967 Gain on sale of discontinued operation 12,807 |
Nature of Operations (Narrative
Nature of Operations (Narrative) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 43.73% |
PCB [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 100.00% |
Cash payment to be received for sale of discontinued operations | $ 32,000 |
Additional cash payment to be received for sale of discontinued operations | $ 3,000 |
Nature of Operations (Schedule
Nature of Operations (Schedule of Details of Impairment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Impairment [Line Items] | |||||
Total | $ 872 | $ 1,179 | |||
Reorganization and impairment | (4,059) | [1] | 138 | [1] | |
Cost of Revenues | $ 47,966 | 46,738 | [1] | 37,549 | [1] |
Inventory write-off and other [Member] | |||||
Impairment [Line Items] | |||||
Cost of Revenues | 4,931 | 1,041 | |||
Impairment charge with respect of intangible assets [Member] | |||||
Impairment [Line Items] | |||||
Reorganization and impairment | 1,595 | ||||
Revaluation of OCS liabilities [Member] | |||||
Impairment [Line Items] | |||||
Reorganization and impairment | (4,962) | [2] | (1,457) | ||
Other [Member] | |||||
Impairment [Line Items] | |||||
Reorganization and impairment | $ 903 | ||||
[1] | Reclassified - due to presenting PCB operation as discontinued operation - See Note 19 | ||||
[2] | see Note 10E |
Significant Accounting Polici45
Significant Accounting Policies (Narrative) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Significant Accounting Policies [Abstract] | |
Non current tax assets | $ 894 |
Significant Accounting Polici46
Significant Accounting Policies (Annual Rates of Depreciation) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
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 (Curr
Cash and Cash Equivalents (Currencies) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | [1] | Dec. 31, 2014 | [1] | |
Cash and Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents | $ 43,744 | $ 19,740 | [1] | $ 30,833 | $ 18,220 | ||
U.S. Dollars [Member] | |||||||
Cash and Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents | 36,636 | 15,209 | |||||
Euro [Member] | |||||||
Cash and Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents | 3,603 | 1,548 | |||||
New Israeli Shekels [Member] | |||||||
Cash and Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents | 1,122 | 1,054 | |||||
Other Currencies [Member] | |||||||
Cash and Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents | $ 2,383 | $ 1,929 | |||||
[1] | Reclassified - due to presenting PCB operation as discontinued operation - See Note 19 |
Inventories (Inventories) (Deta
Inventories (Inventories) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | ||
Inventories [Abstract] | ||||
Components | $ 9,690 | $ 8,047 | ||
Work in process | 6,584 | 5,179 | ||
Finished products | [1] | 6,445 | 4,882 | |
Total inventories | 22,719 | 18,108 | ||
Current assets | 21,336 | 16,647 | [2] | |
Long term assets | $ 1,383 | $ 1,461 | [2] | |
[1] | includes systems at customer locations not yet sold, as of December 31, 2017 and 2016, in the amount of $3,425 and $2,046 respectively. | |||
[2] | Reclassified - due to presenting PCB operation as discontinued operation - See Note 19 |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Long Term Inventory [Line Items] | |||
Finished products, Systems at customer locations | $ 3,425 | $ 2,046 | |
Long-term inventory | 1,383 | 1,461 | [1] |
Spare parts included in noncurrent inventory | 1,383 | 1,461 | |
Obsolescence provision | $ 4,841 | ||
Provision for damages, obsolete, excess and slow-moving inventory | $ 84 | ||
Minimum [Member] | |||
Long Term Inventory [Line Items] | |||
Customer support, term | 7 years | ||
Maximum [Member] | |||
Long Term Inventory [Line Items] | |||
Customer support, term | 10 years | ||
[1] | Reclassified - due to presenting PCB operation as discontinued operation - See Note 19 |
Other Current Assets (Narrative
Other Current Assets (Narrative) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Current assets | |
Due from sale of PCB business | $ 571 |
Other Current Assets (Details)
Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | ||
Current assets | ||||
Due from Government institutions | $ 607 | $ 1,741 | ||
Prepaid expenses | 561 | 280 | ||
Deposits for operating leases | 167 | 118 | ||
Income tax receivable | 122 | |||
Due from related parties (See Note 17) | 681 | |||
Other | [1] | 1,077 | 18 | |
Other current assets | $ 3,215 | $ 2,157 | [2] | |
[1] | Includes an amount of $571 due from sale of PCB business | |||
[2] | Reclassified - due to presenting PCB operation as discontinued operation - See Note 19 |
Property, Plant and Equipment52
Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Gross | $ 26,084 | $ 22,614 | ||
Less accumulated depreciation | 10,581 | 8,889 | ||
Fixed assets, net | 15,503 | 13,725 | [1] | |
Depreciation expenses | 2,001 | 1,820 | $ 1,757 | |
Construction in progress | 2,044 | 63 | ||
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 | 13,307 | 11,109 | ||
Machinery and Equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Gross | 6,406 | 5,519 | ||
Office Furniture and Equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Gross | 758 | 798 | ||
Computer equipment and software [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Gross | 4,310 | 3,748 | ||
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 | $ 353 | $ 490 | ||
[1] | Reclassified - due to presenting PCB operation as discontinued operation - See Note 19 |
Intangible Assets, Net (Intangi
Intangible Assets, Net (Intangible Assets, Net) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Intangible Assets, Net [Abstract] | ||
Patent registration costs | $ 1,513 | $ 1,429 |
Accumulated amortization | 1,031 | 910 |
Total intangible asset, net | $ 482 | $ 519 |
Intangible Assets, Net (Estimat
Intangible Assets, Net (Estimated Amortization Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense related to intangible assets | $ 121 | $ 141 | $ 127 |
Write-off of patents, net value | |||
2,018 | 73 | ||
2,019 | 73 | ||
2,020 | 73 | ||
2,021 | 70 | ||
2,022 | 59 | ||
Total amortization expense | $ 348 | ||
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, 2017 | Dec. 31, 2016 | |
Other Current Liabilities [Abstract] | |||
Accrued employee compensation and related benefits | $ 6,248 | $ 5,547 | |
Commissions | 4,204 | 4,177 | |
Advances from customers and deferred revenues | 3,589 | 1,418 | |
Accrued expenses | 1,306 | 1,715 | |
Accrued warranty costs | 1,300 | 1,102 | |
Government institutions | 748 | 763 | |
Due to related parties (see Note 17) | 18 | ||
Total other current liabilities | 17,395 | 14,740 | [1] |
Conditional obligation | $ 18 | ||
[1] | Reclassified - due to presenting PCB operation as discontinued operation - See Note 19 |
Other Current Liabilities (Chan
Other Current Liabilities (Changes In Product Warranty Obligations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Current Liabilities [Abstract] | |||
Beginning of year | $ 1,102 | $ 1,113 | $ 912 |
Accruals | 2,222 | 1,823 | 1,890 |
Usage | (2,024) | (1,834) | (1,689) |
Balance at end of year | $ 1,300 | $ 1,102 | $ 1,113 |
Liability for Employee Severa57
Liability for Employee Severance Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Liability for Employee Severance Benefits [Abstract] | |||
Severance liability | $ 838 | $ 667 | |
Severance expenses | $ 1,078 | $ 1,004 | $ 935 |
Commitments and Contingencies58
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Jul. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments And Contingencies [Line Items] | |||
Outstanding purchase commitments for inventory components | $ 6,570 | $ 6,772 | |
Proceeds from bank loan | $ 4,000 | ||
Rudolph [Member] | |||
Commitments And Contingencies [Line Items] | |||
Amount of claim filed against the company | $ 13,000 | ||
OCS [Member] | |||
Commitments And Contingencies [Line Items] | |||
Percent of sales derived from research and development, committed amount payable | 3.50% | ||
Dispute settlement paid | $ 2,100 | ||
OCS [Member] | Printar [Member] | |||
Commitments And Contingencies [Line Items] | |||
Grants received including interest accrued | $ 6,734 | $ 6,503 |
Commitments and Contingencies59
Commitments and Contingencies (Minimum Future Rental Payments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies [Abstract] | |||
2,018 | $ 1,070 | ||
2,019 | 814 | ||
2,020 | 533 | ||
Thereafter | 154 | ||
Total | 2,571 | ||
Aggregate office rent expenses | $ 523 | $ 528 | $ 490 |
Commitments and Contingencies60
Commitments and Contingencies (Allowance For Doubtful Debts) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies [Abstract] | |||
Balance at beginning of period | $ 591 | $ 755 | $ 725 |
Provision | 16 | 38 | |
Reversal of provision | (180) | ||
Write-off of provision | (8) | ||
Balance at end of period | $ 591 | $ 591 | $ 755 |
Concentration of Risk and Fin61
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 | |||||
Nov. 30, 2017 | May 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
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 | 2,072,553 | ||||||
Number of shares authorized for grant | 3,000,000 | ||||||
Unrecognized share-based compensation expense | $ 870 | ||||||
Share based compensation expense | $ 634 | $ 429 | [1] | 270 | [1] | ||
Unrecognized compensation cost, recognition period | 1 year 6 months 3 days | ||||||
Aggregate intrinsic Value, Outstanding | $ 3,450 | 1,040 | 45 | ||||
Aggregate intrinsic Value, Outstanding, Vested and expected to vest | 1,140 | 204 | 38 | ||||
Dividend | $ 5,000 | $ 5,001 | |||||
Dividend paid per share | $ 0.14 | ||||||
Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares available for grant | 583,629 | ||||||
Unrecognized share-based compensation expense | $ 86,500 | ||||||
Share based compensation expense | $ 392 | ||||||
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 | $ 634 | $ 429 | $ 270 | ||||
[1] | Reclassified - due to presenting PCB operation as discontinued operation - See Note 19 |
Shareholders' Equity (Fair Valu
Shareholders' Equity (Fair Value Assumptions) (Details) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Shareholders' Equity [Abstract] | ||||
Dividend yield | 0.00% | 0.00% | 0.00% | |
Expected volatility | 66.00% | 66.00% | ||
Expected volatility, minimum | 67.00% | |||
Expected volatility, maximum | 68.00% | |||
Risk-free interest rate | 1.87% | 1.38% | ||
Risk-free interest rate, minimum | 1.60% | |||
Risk-free interest rate, maximum | 2.16% | |||
Expected life (years) | [1] | 4 years 9 months 18 days | 4 years 9 months 18 days | 4 years 9 months 18 days |
[1] | Expected life for the periods presented was determined according to the simplified method since the Company does not have enough history to make an estimate. |
Shareholders' Equity (Share Opt
Shareholders' Equity (Share Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Shareholders' Equity [Abstract] | |||
Outstanding, beginning balance | 1,653,434 | 1,151,121 | 833,799 |
Granted | 154,600 | 527,500 | 464,335 |
Forfeited and cancelled | (152,698) | (25,187) | (122,952) |
Exercised | (481,903) | (24,061) | |
Outstanding, ending balance | 1,173,433 | 1,653,434 | 1,151,121 |
Vested at year end | 490,086 | 725,466 | 461,192 |
Vested and expected to vest at December 31, 2017 | 1,110,325 | ||
Exercisable at December 31, 2017 | 490,086 | ||
Weighted average exercise price, Outstanding, beginning balance | $ 2.82 | $ 3.28 | $ 3.34 |
Weighted average exercise price, Granted | 2.75 | 1.92 | 2.99 |
Weighted average exercise price, Forfeited and cancelled | 2.77 | 5 | 2.95 |
Weighted average exercise price, Exercised | 2.87 | 0 | 1.40 |
Weighted average exercise price, Outstanding, ending balance | 2.80 | 2.82 | 3.28 |
Weighted exercise price, Vested at year end | 3.36 | $ 3.32 | $ 3.48 |
Weighted average exercise price, Vested and expected to vest at December 31, 2017 | 2.80 | ||
Weighted average exercise price, Exercisable at December 31, 2017 | $ 3.36 | ||
Weighted average Remaining Contractual term (years), Outstanding | 4 years 7 months 24 days | ||
Weighted average Remaining Contractual term (years), Vested and expected to vest | 4 years 7 months 24 days | ||
Weighted average Remaining Contractual term (years), Exercisable | 3 years 7 months 28 days | ||
Aggregate intrinsic Value, Outstanding | $ 3,450 | $ 1,040 | $ 45 |
Aggregate Intrinsic Value, Vested and Expected to Vest | 3,265 | 998 | |
Aggregate intrinsic Value, Exercisable | $ 1,140 | $ 204 | $ 38 |
Shareholders' Equity (Informati
Shareholders' Equity (Information About Share Options) (Details) | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of outstanding options | 1,173,433 |
Number exercisable | 490,086 |
Weighted average remaining contractual life in years | 4 years 7 months 24 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 | 680,685 |
Number exercisable | 89,860 |
Weighted average remaining contractual life in years | 5 years 5 months 9 days |
Exercise price 3-4 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price, minimum | $ / shares | $ 3 |
Exercise price, maximum | $ / shares | $ 4 |
Number of outstanding options | 492,748 |
Number exercisable | 400,226 |
Weighted average remaining contractual life in years | 3 years 6 months 21 days |
Shareholders' Equity (Informa66
Shareholders' Equity (Information About Nonvested Options) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Options | |||
Beginning balance | 927,968 | ||
Granted | 154,600 | 527,500 | 464,335 |
Vested | (286,685) | ||
Forfeited | (112,536) | ||
Ending balance | 683,347 | 927,968 | |
Weighted average grant- date fair value | |||
Beginning balance | $ 1.26 | ||
Granted | 3.30 | ||
Vested | 1.54 | ||
Forfeited | 1.38 | ||
Ending balance | $ 1.58 | $ 1.26 |
Earnings Per Ordinary Share (De
Earnings Per Ordinary Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Earnings Per Ordinary Share [Abstract] | |||||
Net income (loss) attributable to Ordinary Shares | $ 13,962 | $ 4,734 | [1] | $ (10,113) | [1] |
Weighted average number of Ordinary Shares outstanding used in basic earnings per Ordinary Share calculation | 35,441 | 35,348 | [1] | 33,352 | [1] |
Add assumed exercise of outstanding dilutive potential Ordinary Shares | 523 | 28 | |||
Weighted average number of Ordinary Shares outstanding used in diluted earnings per Ordinary Share calculation | 35,964 | 35,376 | [1] | 33,352 | [1] |
Basic income from continuing operations (loss) per Ordinary Share | $ 0.05 | $ 0.02 | [1] | $ (0.38) | [1] |
Basic income from discontinued operations per Ordinary Share | 0.35 | 0.11 | [1] | 0.08 | [1] |
Basic net earnings (losses) | 0.40 | 0.13 | [1] | (0.30) | [1] |
Diluted income from continuing operations (loss) per Ordinary Share | 0.05 | 0.02 | [1] | (0.38) | [1] |
Diluted income from discontinued operations per Ordinary Share | 0.34 | 0.11 | [1] | 0.08 | [1] |
Diluted net earnings (losses) | $ 0.39 | $ 0.13 | [1] | $ (0.30) | [1] |
Number of options excluded from the diluted earnings per share calculation due to their anti-dilutive effect | 1,538 | 1,151 | |||
[1] | Reclassified - due to presenting PCB operation as discontinued operation - See Note 19 |
Segment Information (Schedule o
Segment Information (Schedule of Revenues by Geographic Area) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | $ 93,485 | $ 79,228 | [1] | $ 69,387 | [1] |
Asia Pacific [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 79,105 | 66,275 | 55,990 | ||
United States [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 9,484 | 8,151 | 8,016 | ||
Europe [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | $ 4,896 | $ 4,802 | $ 5,351 | ||
[1] | Reclassified - due to presenting PCB operation as discontinued operation - See Note 19 |
Selected Income Statement Dat69
Selected Income Statement Data (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Selected Income Statement Data [Abstract] | ||||||
Selling | [1] | $ 14,096 | $ 13,146 | $ 12,376 | ||
General and administrative | 7,926 | 8,754 | 6,879 | |||
Total selling, general and administrative expenses | 22,022 | 21,900 | [2] | 19,255 | [2] | |
Shipping and handling costs | 697 | 625 | 619 | |||
Interest expense | (13) | (246) | (323) | |||
Interest income | 77 | 63 | 61 | |||
Re-evaluation of contingent consideration | (437) | |||||
Re-evaluation expense on liabilities to the OCS | (183) | (101) | ||||
Other, net | [3] | (214) | (481) | (512) | ||
Financial income (expenses), net | (150) | (847) | [2] | (1,312) | [2] | |
Foreign currency income (expense), transactions not denominated in U.S. Dollars | $ (41) | $ (351) | $ (291) | |||
[1] | Including shipping and handling costs | |||||
[2] | Reclassified - due to presenting PCB operation as discontinued operation - See Note 19 | |||||
[3] | Other, net includes foreign currency income (expense) resulting from transactions not denominated in U.S. Dollars amounting to $(41), $(351), and $(291) in 2017, 2016 and 2015, respectively. |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | |||
Deferred tax assets valuation allowance | $ 496 | $ 2,222 | |
Net change in total valuation allowance | 1,726 | 865 | $ 656 |
Major foreign subsidiaries NOL | $ 800 | ||
The Company and its subsidiaries in Israel NOL carryforwards, aggregate amount | $ 46,028 | ||
Effective income tax rate | 24.00% | 25.00% | 26.50% |
Corporate statutory tax rate on 2018 and thereafter | 23.00% | ||
Corporate statutory tax rate on 2017 | 24.00% | ||
Deferred tax assets | $ 4,733 | $ 4,729 | |
Israel [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforwards | 496 | ||
Deferred tax assets | 3,314 | ||
Beneficiating Enterprise [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax-exempt earnings | 14,923 | ||
Contingent income tax liabilities, Dividend distribution | 3,730 | ||
Approved Enterprise [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax-exempt earnings | 20,636 | ||
Contingent income tax liabilities, Dividend distribution | $ 5,157 | ||
Subsidiary [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred tax assets valuation allowance | 240 | ||
Net change in total valuation allowance | $ 1,446 |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Income Taxes [Abstract] | |||||
Income (loss) before income taxes from continuing operations: Israel | $ (4,761) | $ (390) | $ (15,362) | ||
Income (loss) before income taxes from continuing operations: Non-Israeli | 1,574 | 1,562 | 474 | ||
Income (loss) from continuing operations before incomes taxes | (3,187) | 1,172 | [1] | (14,888) | [1] |
Income tax expense from continuing operations, Current: Israel | 56 | 28 | 123 | ||
Income tax expense from continuing operations, Current: Non-Israeli | 122 | 372 | 148 | ||
Current Income tax expense from continuing operations, Total | 178 | 400 | 271 | ||
Deferred tax expense (benefit) from continuing operations: Israel | (5,125) | 620 | (2,654) | ||
Deferred tax expense (benefit) from continuing operations: Non-Israeli | 72 | (717) | 311 | ||
Deferred tax expense (benefit) from continuing operations, Total | (5,053) | (97) | (2,343) | ||
Actual income tax expense (benefit) | $ (4,875) | $ 303 | [1] | $ (2,072) | [1] |
[1] | Reclassified - due to presenting PCB operation as discontinued operation - See Note 19 |
Income Taxes (Income Taxes Incl
Income Taxes (Income Taxes Included in The Statement of Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Income Taxes [Abstract] | ||||||
Income (loss) before income taxes from continuing operation | $ (3,187) | $ 1,172 | $ (14,888) | |||
Statutory tax rate | 24.00% | 25.00% | 26.50% | |||
Theoretical income tax expense (benefit) | $ (765) | $ 293 | $ (3,945) | |||
Change in valuation allowance | (185) | (721) | 308 | |||
Non-deductible expenses | [1] | 186 | 182 | 640 | ||
Differences between foreign currencies and dollar-adjusted financial statements-net | (587) | (120) | 283 | |||
Tax rate differential | 633 | (57) | (44) | |||
Undistributed earnings of subsidiary | 490 | |||||
Change in tax rate | 182 | 592 | ||||
Recognition of income tax benefit with respect to losses related to investment in subsidiaries | (4,929) | |||||
Other | [2] | 590 | 134 | 196 | ||
Actual income tax expense (benefit) | $ (4,875) | $ 303 | [3] | $ (2,072) | [3] | |
[1] | Including non-deductible share based compensation. | |||||
[2] | In 2017 mainly related to intercompany dividend distribution tax liability | |||||
[3] | Reclassified - due to presenting PCB operation as discontinued operation - See Note 19 |
Income Taxes (Income Taxes In73
Income Taxes (Income Taxes Included in The Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Allowance for doubtful accounts | $ 92 | $ 140 |
Inventory write-down | 376 | 339 |
Unearned revenue | 63 | 243 |
Accrued expenses | 367 | 393 |
Net operating losses (NOL) and tax credit carryforwards | 4,218 | 5,631 |
Other temporary differences | 113 | 205 |
Total gross deferred tax assets | 5,229 | 6,951 |
Valuation allowance | (496) | (2,222) |
Deferred tax asset, net of valuation allowance | 4,733 | 4,729 |
Deferred tax liabilities: | ||
Property, plant and equipment | (242) | (223) |
Undistributed earnings | (424) | (433) |
Deferred tax liabilities | (666) | (656) |
Net deferred tax assets | 4,067 | 4,073 |
Net deferred tax assets attributable to discontinued operation | $ 104 |
Balances and Transactions wit74
Balances and Transactions with Related Parties (Details) - Affiliated Entity [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Due from (to) related parties | $ 681 | $ (18) | |
Purchases from related parties | 15 | 3 | $ 43 |
Interest (expense) from Parent | $ 22 | $ (28) | $ (9) |
Interest rate, related party | 5.50% | 5.50% | 5.50% |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Gain on sale of discontinued operation | $ 12,807 | ||
PCB business [Member] | |||
Gross proceeds from sale of discontinued operations | 32,000 | ||
Acquisition expense deducted from gross proceeds from sale of discontinued operations | $ 2,000 |
Discontinued Operations (Schedu
Discontinued Operations (Schedule of Discontinued Operation Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Current assets | |||
Trade accounts receivable, net | $ 16,526 | $ 13,934 | |
Inventories | 8,801 | ||
Due from related parties | 95 | ||
Other current assets | 708 | ||
Total current assets | 23,538 | ||
Property, plant and equipment, net | 384 | ||
Long-term inventory | 646 | ||
Deferred tax asset | 104 | ||
Intangible assets, net | 346 | ||
Total non current assets | 1,096 | ||
Total assets | 25,018 | ||
Current liabilities | |||
Trade accounts payable | 2,679 | ||
Other current liabilities | 3,600 | ||
Total current liabilities | 6,279 | ||
Long-term liabilities | |||
Liability for employee severance benefits | 203 | ||
Total liabilities | $ 6,482 | [1] | |
[1] | Reclassified - due to presenting PCB operation as discontinued operation - See Note 19 |
Discontinued Operations (Sche77
Discontinued Operations (Schedule of Discontinued Operation Revenue) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Discontinued Operations [Abstract] | |||||
Total revenues | $ 36,447 | $ 30,295 | $ 29,888 | ||
Total cost of revenues | 21,368 | 18,800 | 18,600 | ||
Research and development costs | (3,228) | (3,266) | (3,439) | ||
Selling, general and administrative expenses | (6,260) | (3,601) | (4,332) | ||
Financial expenses, net | (96) | (147) | (565) | ||
Gain on sale of discontinued operation | 12,807 | ||||
Income from discontinued operations before taxes | 18,302 | 4,450 | [1] | 2,952 | [1] |
Income tax expense | (6,028) | (585) | [1] | (249) | [1] |
Net income from discontinued operations | $ 12,274 | $ 3,865 | [1] | $ 2,703 | [1] |
[1] | Reclassified - due to presenting PCB operation as discontinued operation - See Note 19 |
Discontinued Operations (Sche78
Discontinued Operations (Schedule of Discontinued Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Cash flows from discontinued operation | ||||||
Net cash (used in) operating activities | [1] | $ (11,247) | $ (758) | [2] | $ (982) | [2] |
Net cash provided by (used in) investing activities | [3] | 29,854 | (164) | [2] | 174 | [2] |
Net cash provided by financing activities | ||||||
Net cash provided by (used in) discontinued operations | $ 18,607 | $ (922) | $ (808) | |||
[1] | Including adjustment for the gain from sale of the discontinued operation in the amount of $12,807 in 2017. | |||||
[2] | Reclassified - due to presenting PCB operation as discontinued operation - See Note 19 | |||||
[3] | Including net proceeds from the sale of the discontinued operation of $29,967 in 2017. |
Discontinued Operations (Sche79
Discontinued Operations (Schedule of Discontinued Operation Financial Position) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Discontinued Operations [Abstract] | |||
Trade and other receivables | $ 16,526 | $ 13,934 | |
Inventories | 11,219 | ||
Fixed and intangible assets | 763 | ||
Trade payables | (4,426) | ||
Other payables | (6,922) | ||
Net assets and liabilities | 17,160 | ||
Net cash consideration | 29,967 | ||
Gain on sale of discontinued operation | $ 12,807 |