Document_and_Entity_Informatio
Document and Entity Information | 12 Months Ended |
Dec. 31, 2014 | |
Document and Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | FALSE |
Document Period End Date | 31-Dec-14 |
Entity Registrant Name | NOVA MEASURING INSTRUMENTS LTD |
Entity Central Index Key | 1109345 |
Current Fiscal Year End Date | -19 |
Document Fiscal Year Focus | 2014 |
Document Fiscal Period Focus | FY |
Entity Filer Category | Accelerated Filer |
Entity Common Stock, Shares Outstanding | 27,137,051 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS | ||
Cash and cash equivalents | $13,649 | $17,542 |
Short-term interest-bearing bank deposits | 107,289 | 79,552 |
Held for trading securities | 1,995 | |
Available for sale securities | 1,845 | |
Trade accounts receivable, net of allowance for doubtful accounts of $179 and $143, respectively | 15,566 | 27,947 |
Inventories (Note 3) | 16,107 | 18,118 |
Deferred income tax assets (Note 9) | 142 | 137 |
Other current assets | 2,928 | 3,922 |
TOTAL CURRENT ASSETS | 157,676 | 149,063 |
LONG-TERM ASSETS | ||
Long-term interest-bearing bank deposits | 750 | 750 |
Deferred income tax assets (Note 9) | 1,654 | 33 |
Other long-term assets | 169 | 197 |
Severance pay funds (Note 6) | 1,580 | 1,852 |
Total long-term assets | 4,153 | 2,832 |
FIXED ASSETS, NET (Note 4) | 11,450 | 10,382 |
TOTAL ASSETS | 173,279 | 162,277 |
CURRENT LIABILITIES | ||
Trade accounts payable | 11,568 | 15,599 |
Deferred revenues | 3,022 | 3,420 |
Other current liabilities (Note 5) | 12,606 | 11,448 |
TOTAL CURRENT LIABILITIES | 27,196 | 30,467 |
LONG-TERM LIABILITIES | ||
Liability for employee severance pay (Note 6) | 2,465 | 2,798 |
Deferred revenues | 36 | 341 |
Other long-term liability | 7 | |
TOTAL LONG TERM LIABILITIES | 2,501 | 3,146 |
COMMITMENTS AND CONTINGENCIES (Note 7) | ||
TOTAL LIABILITIES | 29,697 | 33,613 |
SHAREHOLDERS' EQUITY (Note 8) | ||
Ordinary shares, NIS 0.01 par value - authorized 40,000,000 Shares 27,137,051 shares issued and outstanding at December 31, 2014 and 27,280,521 shares issued and outstanding at December 31, 2013 | 73 | 72 |
Additional paid-in capital | 118,985 | 114,276 |
Accumulated other comprehensive income | -1,177 | 541 |
Treasury shares | -6,726 | |
Accumulated profit | 32,427 | 13,775 |
Total shareholders' equity | 143,582 | 128,664 |
Total liabilities and shareholders' equity | $173,279 | $162,277 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | USD ($) | ILS | USD ($) | ILS |
CONSOLIDATED BALANCE SHEETS [Abstract] | ||||
Trade accounts receivable, allowance for doubtful accounts | $179 | $143 | ||
Ordinary shares, par value per share | 0.01 | 0.01 | ||
Ordinary shares, shares authorized | 40,000,000 | 40,000,000 | 40,000,000 | 40,000,000 |
Ordinary shares, shares issued | 27,137,051 | 27,137,051 | 27,280,521 | 27,280,521 |
Ordinary shares, shares outstanding | 27,137,051 | 27,137,051 | 27,280,521 | 27,280,521 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
REVENUES: | |||
Products | $92,208 | $89,410 | $77,212 |
Services | 28,410 | 22,099 | 18,956 |
Total revenues | 120,618 | 111,509 | 96,168 |
COST OF REVENUES: | |||
Products | 39,784 | 37,765 | 31,734 |
Services | 17,221 | 14,673 | 13,280 |
Total cost of revenues | 57,005 | 52,438 | 45,014 |
GROSS PROFIT | 63,613 | 59,071 | 51,154 |
OPERATING EXPENSES: | |||
Research and Development expenses, net of participation by the Office of the Chief Scientist of $3,490, $1,470 and $1,679, respectively (Note 7a) | 29,498 | 29,578 | 24,594 |
Sales and marketing expenses | 12,747 | 11,963 | 11,998 |
General and administrative expenses | 4,457 | 5,197 | 3,978 |
Total operating expenses | 46,702 | 46,738 | 40,570 |
OPERATING PROFIT | 16,911 | 12,333 | 10,584 |
FINANCING INCOME, NET | 563 | 693 | 1,368 |
INCOME BEFORE INCOME TAXES | 17,474 | 13,026 | 11,952 |
INCOME TAXES EXPENSES (BENEFIT) | -1,178 | 2,511 | 124 |
NET INCOME FOR THE YEAR | $18,652 | $10,515 | $11,828 |
Earnings per share: | |||
Basic | $0.68 | $0.39 | $0.44 |
Diluted | $0.67 | $0.38 | $0.43 |
Shares used in calculation of earnings per share: | |||
Basic | 27,447 | 27,091 | 26,619 |
Diluted | 27,807 | 27,373 | 27,277 |
CONSOLIDATED_STATEMENTS_OF_OPE1
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | |||
Research and development, participation by the Office of the Chief Scientist | $3,490 | $1,470 | $1,679 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | |||
Net income for the year | $18,652 | $10,515 | $11,828 |
Other comprehensive income: | |||
Increase (decrease) in fair market value of derivatives (Note 12) | -1,718 | 92 | 851 |
Total comprehensive income for the year | $16,934 | $10,607 | $12,679 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY AND COMPREHENSIVE INCOME (USD $) | Total | Ordinary Shares [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury share [Member] | Accumulated Profit (Deficit) [Member] | Comprehensive Income (Loss) [Member] | |
In Thousands, except Share data | ||||||||
Balance at Dec. 31, 2011 | $99,906 | $72 | $108,804 | ($402) | ($8,568) | |||
Balance, shares at Dec. 31, 2011 | 26,468,000 | |||||||
Employee share-based plans | 259 | [1] | 259 | |||||
Employee share-based plans, shares | 131,922 | 132,000 | ||||||
Shares issued under employee share-based plans | [1] | |||||||
Shares issued under employee share-based plans, shares | 82,000 | |||||||
Stock based compensation | 1,927 | 1,927 | ||||||
Other comprehensive income | 851 | 851 | 851 | |||||
Net income for the year | 11,828 | 11,828 | 11,828 | |||||
Total comprehensive income | 12,679 | 12,679 | ||||||
Balance at Dec. 31, 2012 | 114,771 | 72 | 110,990 | 449 | 3,260 | |||
Balance, shares at Dec. 31, 2012 | 26,682,000 | |||||||
Employee share-based plans | 1,191 | [1] | 1,191 | |||||
Employee share-based plans, shares | 513,896 | 514,000 | ||||||
Shares issued under employee share-based plans | [1] | |||||||
Shares issued under employee share-based plans, shares | 85,000 | |||||||
Stock based compensation | 2,095 | 2,095 | ||||||
Other comprehensive income | 92 | 92 | 92 | |||||
Net income for the year | 10,515 | 10,515 | 10,515 | |||||
Total comprehensive income | 10,607 | 10,607 | ||||||
Balance at Dec. 31, 2013 | 128,664 | 72 | 114,276 | 541 | 13,775 | |||
Balance, shares at Dec. 31, 2013 | 27,280,521 | 27,281,000 | ||||||
Employee share-based plans | 2,586 | 1 | 2,585 | |||||
Employee share-based plans, shares | 473,616 | 474,000 | ||||||
Shares issued under employee share-based plans | [1] | |||||||
Shares issued under employee share-based plans, shares | 22,000 | |||||||
Stock based compensation | 2,124 | 2,124 | ||||||
Share repurchase | -6,726 | -6,726 | ||||||
Share repurchase, shares | -639,831 | -640,000 | ||||||
Other comprehensive income | -1,718 | -1,718 | -1,718 | |||||
Net income for the year | 18,652 | 18,652 | 18,652 | |||||
Total comprehensive income | 16,934 | 16,934 | ||||||
Balance at Dec. 31, 2014 | $143,582 | $73 | $118,985 | ($1,177) | ($6,726) | $32,427 | ||
Balance, shares at Dec. 31, 2014 | 27,137,051 | 27,137,000 | ||||||
[1] | Less than $1 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOWS - OPERATING ACTIVITIES | |||
Net income for the year | $18,652 | $10,515 | $11,828 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 3,951 | 3,522 | 2,783 |
Loss related to equipment and inventory damage | 148 | 509 | |
Amortization of deferred stock-based compensation | 2,124 | 2,095 | 1,927 |
Loss on securities | 175 | ||
Decrease (increase) in deferred income tax assets, net | -1,626 | 1,898 | 694 |
Increase (decrease) in liability for employee termination benefits, net | -71 | 17 | -27 |
Decrease (increase) in trade accounts receivables | 12,381 | -10,585 | -3,960 |
Decrease (increase) in inventories | 2,226 | -1,783 | -10,513 |
Decrease (increase) in other current and long term assets | 408 | -1,234 | -467 |
Increase (decrease) in trade accounts payables and other long term liabilities | -4,038 | 4,517 | 2,510 |
Increase in other current liabilities | 64 | 3,054 | 283 |
Increase (decrease) in short and long term deferred revenues | -703 | -1,173 | 2,151 |
Net cash provided by operating activities | 33,543 | 10,991 | 7,718 |
CASH FLOWS - INVESTING ACTIVITIES | |||
Increase in short-term interest-bearing bank deposits | -27,737 | -4,513 | -8,792 |
Decrease (increase) in long-term interest-bearing bank deposits | -345 | 140 | |
Proceeds from (investments in) short-term available for sale securities | 1,617 | -1,845 | |
Proceeds from short-term held for maturity securities | 1,582 | ||
Investments in short-term held for trading securities | -1,942 | ||
Reimbursement from insurance claim | 219 | ||
Purchases of fixed assets | -5,234 | -4,119 | -3,660 |
Net cash used in investing activities | -33,296 | -10,603 | -10,730 |
CASH FLOWS - FINANCING ACTIVITIES | |||
Purchases of treasury shares | -6,726 | ||
Shares issued under employee share-based plans | 2,586 | 1,191 | 259 |
Net cash provided by (used in) financing activities | -4,140 | 1,191 | 259 |
Increase (decrease) in cash and cash equivalents | -3,893 | 1,579 | -2,753 |
Cash and cash equivalents - beginning of year | 17,542 | 15,963 | 18,716 |
Cash and cash equivalents - end of year | $13,649 | $17,542 | $15,963 |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2014 | |
GENERAL [Abstract] | |
GENERAL | NOTE 1 - GENERAL |
A. Business Description: | |
Nova Measuring Instruments Ltd. (the “Company”) was incorporated in May 1993 and commenced operations in October 1993 in the design, development and production of integrated process control systems, used in the manufacturing of semiconductors. In October 1995, the Company began manufacturing and marketing its systems. In recent years, the Company expanded its product offering to include stand-alone systems. | |
The Company continues research and development for the next generation of its products and additional applications for such products. The Company operates in one operating segment. | |
The Company has wholly owned subsidiaries in the United States of America (the “U.S.”), Japan, The Netherlands, Taiwan, Korea and Germany. The subsidiaries (the “subsidiaries”) are engaged in pre-sale activities and providing technical support to customers. | |
The ordinary shares of the Company are traded on The NASDAQ Global Market since April, 2000 and on the Tel-Aviv Stock Exchange since June, 2002. | |
B. Use of Estimates in the Preparation of Financial Statements: | |
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. | |
C. Financial Statements in U.S. Dollars: | |
The currency of the primary economic environment in which the operations of the Company and its subsidiaries are conducted is the U.S. dollar (the “dollar”). Accordingly, the Company uses the dollar as its functional and reporting currency. Certain of the dollar amounts in the financial statements may represent the dollar equivalent of other currencies, including the New Israeli Shekel (“NIS”). | |
Transactions and balances denominated in dollars are presented at their dollar amounts. Non-dollar transactions and balances are remeasured into dollars in accordance with the principles set forth in Accounting Standards Codification Topic No. 830 (“ASC 830”), “Foreign Currency Translation”. Net financing income includes translation gains (losses), which were immaterial for all years presented. | |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||||||||||
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES | |||||||||
A. Principles of Consolidation and Basis of Presentation: | ||||||||||
The Company's consolidated financial statements include the financial statements of the Company and its wholly owned subsidiaries (“the Group”), after elimination of material intercompany transactions and balances. | ||||||||||
The Company's consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States of America. | ||||||||||
The following is a summary of the significant accounting policies, which were applied in the preparation of these financial statements, on a consistent basis: | ||||||||||
B. Cash and Cash Equivalents: | ||||||||||
Cash and cash equivalents are comprised of cash and demand deposits in banks and other short-term, highly liquid investments (primarily interest-bearing deposits) with maturity dates not exceeding three months from the date of deposit. | ||||||||||
C. Allowance for Doubtful Accounts: | ||||||||||
The allowance for doubtful accounts is computed on the specific identification basis. | ||||||||||
D. Short-Term Investments: | ||||||||||
Held to Maturity Investments | ||||||||||
Securities held to maturity include investments in debt securities that the Company has positive intent and ability to hold to maturity. Securities held to maturity are measured at amortized cost. | ||||||||||
Short-term held to maturity investments include investments in debt securities with maturities of more than three months but less than one year. | ||||||||||
Available for Sales Securities | ||||||||||
Available-for-sale financial assets are non-derivative financial assets that are designated as available-for-sale and that are not classified in any of the other categories of financial assets. Subsequent to initial recognition, they are measured at fair value and changes therein, other than impairment losses and foreign currency differences on available for sale-debt instruments are recognized in other comprehensive income and presented in the fair value reserve in equity. When an investment is derecognized, the gain or loss accumulated in equity is reclassified to the Statement of income. | ||||||||||
Held for Trading Securities | ||||||||||
A financial asset is classified at fair value through profit or loss if it is classified as held for trading or is designated as such upon initial recognition. Attributable transaction costs are recognized in profit or loss as incurred. Financial assets at fair value through profit or loss are measured at fair value, and changes therein are recognized in profit or loss. | ||||||||||
E. Inventories: | ||||||||||
Inventories are presented at the lower of cost or market. Cost is determined as follows: | ||||||||||
Raw materials-on the average cost basis. | ||||||||||
Finished goods and work in process - on actual production cost basis (materials, labor and indirect manufacturing costs). | ||||||||||
The Company writes down product inventory, based on assumptions about future demand and market conditions. | ||||||||||
F. Fixed Assets: | ||||||||||
Fixed assets are presented at cost, net of accumulated depreciation. Annual depreciation is calculated based on the straight-line method over the shorter of the estimated useful lives of the related assets. Estimated useful life, in years, is as follows: | ||||||||||
Years | ||||||||||
Electronic equipment | 7-Mar | |||||||||
Office furniture and equipment | 15-Jul | |||||||||
Leasehold improvements are amortized using the straight-line method, over the expected useful lives of the improvements. | ||||||||||
G. Accrued Warranty Costs: | ||||||||||
Accrued warranty costs are calculated in respect of the warranty period on the Company's products (generally one year) and are based on the Company's prior experience and in accordance with management's estimate. See Note 5B for disclosure with regard to accrued warranty costs. | ||||||||||
H. Revenue Recognition: | ||||||||||
Revenues from the sale of products are recognized when all the following criteria have been met: a persuasive evidence of an arrangement exists, delivery has occurred, the price is fixed or determinable, collection of resulting receivables is probable and there are no remaining significant obligations. | ||||||||||
Allocation of arrangement consideration among the separate units of accounting is based on their relative selling prices. The selling price for each unit of accounting is determined based on a selling price hierarchy using either vendor specific objective evidence (“VSOE”) of selling price, third party evidence of selling price (“TPE”) or the vendor's best estimate of estimated selling price (“ESP”) for that deliverable. Use of the residual method is prohibited. The objective of ESP is to determine the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. | ||||||||||
The adoption of this standard did not have a material impact on the Company's Consolidated Statements of Operations. | ||||||||||
Revenues from Service contracts generally specify fixed payment amounts for periods longer than one month, and are recognized on a straight line basis over the term of the contract. | ||||||||||
I. Research and Development: | ||||||||||
Research and development costs are charged to operations as incurred. Amounts received or receivable from the Government of Israel through the Office of the Chief Scientist (“OCS”) as participation in certain research and development programs are offset against research and development costs. The accrual for grants receivable is determined based on the terms of the programs, provided that the criteria for entitlement are expected to be met. Royalty expenses are determined based on actual revenues and presented in Cost of Goods Sold. | ||||||||||
J. Income Taxes: | ||||||||||
The Company accounts for income taxes utilizing the asset and liability method in accordance with ASC 740, “Income Taxes”. Current tax liabilities are recognized for the estimated taxes payable on tax returns for the current year. Deferred tax liabilities or assets are recognized for the estimated future tax effects attributable to temporary differences between the income tax bases of assets and liabilities and their reported amounts in the financial statements, and for tax loss carryforwards. Measurement of current and deferred tax liabilities and assets is based on provisions of enacted tax laws, and deferred tax assets are reduced, if necessary, by the amount of tax benefits, the realization of which is not considered more likely than not based on available evidence. | ||||||||||
ASC 740-10 requires a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. | ||||||||||
K. Share-Based Compensation: | ||||||||||
The Company accounts for equity based compensation using ASC 718-10 “Share-Based Payment,” which requires companies to recognize the cost of employee services received in exchange for awards of equity instruments based upon the grant-date fair value of those awards. | ||||||||||
Stock Options | ||||||||||
Under ASC 718, the fair market value of each option grant is estimated on the date of grant using the “Black-Scholes option pricing” method with the following weighted-average assumptions: | ||||||||||
2 0 1 4 | 2 0 1 3 | 2 0 1 2 | ||||||||
Risk-free interest rate | 1.61% | 1.35% | 0.66% | |||||||
Expected life of options | 4.75 years | 4.75 years | 4.75 years | |||||||
Expected volatility | 45.29% | 68.13% | 87.86% | |||||||
Expected dividend yield | 0% | 0% | 0% | |||||||
L. Earnings per Share: | ||||||||||
Earnings per share are presented in accordance with ASC 260-10, “Earnings per Share.” Pursuant to which, basic earnings per share excludes the dilutive effects of convertible securities and is computed by dividing income (loss) available to common shareholders by the weighted-average number of ordinary shares outstanding for the period, net of treasury shares. Diluted earnings per share reflect the potential dilutive effect of all convertible securities. The number of potentially dilutive securities excluded from diluted earnings per share due to the anti-dilutive effect amounted to 526,381 in 2014, 939,366 in 2013 and 824,664 in 2012. | ||||||||||
M. Fair Value Measurements: | ||||||||||
The fair values of the Company cash and cash equivalents, accounts receivable, and accounts payable approximate their carrying amounts due to their short-term nature. The estimated fair values of our derivative instruments are calculated based on market rates to settle the instruments. These values represent the estimated amounts the Company would receive upon sale or pay upon transfer, taking into consideration current market rates. The Company calculate derivative asset and liability amounts using a variety of valuation techniques, depending on the specific characteristics of the hedging instrument, taking into account credit risk. The fair value of the Company derivative contracts (including forwards and options) is determined using standard valuation models. The significant inputs used in these models are readily available in public markets or can be derived from observable market transactions and, therefore, the Company derivative contracts have been classified as Level 2. Inputs used in these standard valuation models include the applicable spot, forward, and discount rates. The standard valuation model for the Company option contracts also includes implied volatility, which is specific to individual options and is based on rates quoted from a widely used third-party resource. | ||||||||||
N. Derivative Financial Instruments: | ||||||||||
ASC 815 requires the presentation of all derivatives as either assets or liabilities on the balance sheet and the measurement of those instruments at fair value. | ||||||||||
For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item, if any, is recognized in current earnings during the period of change. See Note 12 for disclosure of the derivative financial instruments in accordance with such pronouncements. | ||||||||||
O. Impairment of Long-Lived Assets: | ||||||||||
Long-lived assets, held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets (or asset group) may not be recoverable. In the event that the sum of the expected future cash flows (undiscounted and without interest charges) of the long-lived assets (or asset group) is less than the carrying amount of such assets, an impairment charge would be recognized, and the assets (or asset group) would be written down to their estimated fair values. | ||||||||||
P. New Accounting Pronouncements | ||||||||||
In May 2014, the Financial Accounting Standards Board issued a new standard to achieve a consistent application of revenue recognition within the U.S., resulting in a single revenue model to be applied by reporting companies under U.S. generally accepted accounting principles. Under the new model, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new standard is effective beginning in the first quarter of 2017; early adoption is prohibited. The new standard is required to be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. The Company has not yet selected a transition method nor determined the impact of the new standard on its consolidated financial statements. | ||||||||||
On June 19, 2014, the FASB issued ASU 2014-12 in response to the EITF consensus on Issue 13-D. The ASU clarifies that entities should treat performance targets that can be met after the requisite service period of a share-based payment award as performance conditions that affect vesting. Therefore, an entity would not record compensation expense (measured as of the grant date without taking into account the effect of the performance target) related to an award for which transfer to the employee is contingent on the entity's satisfaction of a performance target until it becomes probable that the performance target will be met. The ASU does not contain any new disclosure requirements. The ASU 2014-12 is effective for annual periods and interim periods within those annual periods, beginning after December 15, 2015. An entity may apply the standards (1) prospectively to all share-based payment awards that are granted or modified on or after the effective date, or (2) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. Earlier application is permitted. The Company has not yet selected a transition method nor determined the impact of the new standard on its consolidated financial statements. | ||||||||||
In November 2014, the FASB issued ASU 2014-16, the ASU states that a for hybrid financial instruments issued in the form of a share, an entity (an issuer or an investor) should determine the nature of the host contract by considering all stated and implied substantive terms and features of the hybrid financial instrument, weighing each term and feature on the basis of relevant facts and circumstances. That is, an entity should determine the nature of the host contract by considering the economic characteristics and risks of the entire hybrid financial instrument, including the embedded derivative feature that is being evaluated for separate accounting from the host contract. The ASU 2014-16 is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2015, and interim periods beginning after December 15, 2016. Early adoption, including adoption in an interim period, is permitted. If an entity early adopts the amendments in an interim period, any adjustments shall be reflected as of the beginning of the fiscal year that includes that interim period. The Company has not yet selected a transition method nor determined the impact of the new standard on its consolidated financial statements. | ||||||||||
INVENTORIES
INVENTORIES | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
INVENTORIES [Abstract] | ||||||||
INVENTORIES | NOTE 3 - INVENTORIES | |||||||
A. Composition: | ||||||||
As of December 31, | ||||||||
2 0 1 4 | 2 0 1 3 | |||||||
Raw materials | $ | 3,148 | $ | 2,032 | ||||
Work in process | 7,656 | 8,797 | ||||||
Finished goods | 5,303 | 7,289 | ||||||
$ | 16,107 | $ | 18,118 | |||||
B. Including write-off of $1,554, $1,824, and $1,399 for 2014, 2013 and 2012 respectively, presented in the consolidated statements of operations. | ||||||||
FIXED_ASSETS_NET
FIXED ASSETS, NET | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
FIXED ASSETS, NET [Abstract] | ||||||||
FIXED ASSETS, NET | NOTE 4 - FIXED ASSETS, NET | |||||||
As of December 31, | ||||||||
2 0 1 4 | 2 0 1 3 | |||||||
Cost: | ||||||||
Electronic equipment | $ | 21,716 | $ | 18,193 | ||||
Office furniture and equipment | 1,159 | 1,126 | ||||||
Leasehold improvements | 4,555 | 3,547 | ||||||
27,430 | 22,866 | |||||||
Accumulated depreciation and amortization: | ||||||||
Electronic equipment | 13,244 | 10,424 | ||||||
Office furniture and equipment | 882 | 829 | ||||||
Leasehold improvements | 1,854 | 1,231 | ||||||
15,980 | 12,484 | |||||||
Net book value | $ | 11,450 | $ | 10,382 | ||||
OTHER_CURRENT_LIABILITIES
OTHER CURRENT LIABILITIES | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
OTHER CURRENT LIABILITIES [Abstract] | |||||||
OTHER CURRENT LIABILITIES | NOTE 5 - OTHER CURRENT LIABILITIES | ||||||
A. Consists of: | |||||||
As of December 31, | |||||||
2 0 1 4 | 2 0 1 3 | ||||||
Accrued salaries and fringe benefits | $ | 6,905 | $ | 6,659 | |||
Accrued warranty costs (See B below) | 2,356 | 2,402 | |||||
Governmental institutions | 1,431 | 1,783 | |||||
Other | 1,914 | 604 | |||||
$ | 12,606 | $ | 11,448 | ||||
B. Accrued warranty costs: | |||||||
The Company provides standard warranty coverage on its systems. Parts and labor are covered under the terms of the warranty agreement. The Company accounts for the estimated warranty cost as a charge to costs of revenues when revenue is recognized. | |||||||
The following table provides the changes in the product warranty accrual for the fiscal years ended December 31, 2014 and 2013: | |||||||
As of December 31, | |||||||
2 0 1 4 | 2 0 1 3 | ||||||
Balance as of beginning of year | $ | 2,402 | $ | 1,994 | |||
Services provided under warranty | (2,428) | (2,086 | ) | ||||
Changes in provision | 2,382 | 2,494 | |||||
Balance as of end of year | $ | 2,356 | $ | 2,402 | |||
LIABILITY_FOR_EMPLOYEE_SEVERAN
LIABILITY FOR EMPLOYEE SEVERANCE PAY, NET | 12 Months Ended |
Dec. 31, 2014 | |
LIABILITY FOR EMPLOYEE SEVERANCE PAY, NET [Abstract] | |
LIABILITY FOR EMPLOYEE SEVERANCE PAY, NET | NOTE 6 - LIABILITY FOR EMPLOYEE SEVERANCE PAY, NET |
Israeli law and labor agreements determine the obligations of the Company to make severance payments to dismissed employees and to employees leaving employment under certain other circumstances. The obligation for severance pay benefits, as determined by Israeli law, is based upon length of service and the employee's most recent salary. The liability is partially covered through insurance policies purchased by the Company and deposits in a severance fund. Severance-pay expenses amounted to $6, $63 and $73 for the year 2014, 2013 and 2012, respectively. | |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
COMMITMENTS AND CONTINGENCIES [Abstract] | |||||
COMMITMENTS AND CONTINGENCIES | NOTE 7 - COMMITMENTS AND CONTINGENCIES | ||||
A. The Company has received grants in the aggregate amount of $22,940 from the OCS, as participation of up to 60% of certain development costs. In consideration for such grants, the Company has undertaken to pay royalties amounting to 3%-3.5% of the net sales of products developed, directly or indirectly, from the projects financed, not to exceed 100% of the grants received. Refund of the grants thereon is contingent on future sales and the Company has no obligation to refund grants if sufficient sales are not generated. Royalty expense amounted to $1,019, $787, and $609 for the years 2014, 2013 and 2012, respectively. The balance of the contingent liability to the OCS as of December 31, 2014 was approximately $22,605 (December 31, 2013: $21,441). | |||||
B. The Group rents its facilities under various operating lease agreements, which expire on various dates, the latest of which is in 2020.The minimum rental payments are as follows: | |||||
Year | |||||
2015 | $ | 1,361 | |||
2016 | $ | 1,305 | |||
2017 - 2020 | $ | 4,794 | |||
Rental expense for the facilities amounted to $1,594, $1,344 and $1,388 for the year 2014, 2013 and 2012, respectively. | |||||
SHAREHOLDERS_EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
SHAREHOLDERS' EQUITY [Abstract] | ||||||||||||
SHAREHOLDERS' EQUITY | NOTE 8 - SHAREHOLDERS' EQUITY | |||||||||||
A. Rights of Shares: | ||||||||||||
Holders of ordinary shares are entitled to participate equally in the payment of cash dividends and bonus shares (stock dividends) and, in the event of the liquidation of the Company, in the distribution of assets after satisfaction of liabilities to creditors. Each ordinary share is entitled to one vote on all matters to be voted on by shareholders. | ||||||||||||
B. Share Repurchase: | ||||||||||||
On March 24, 2014, the Company announced a $12 million share repurchase program, which is planned to be executed by the first half of 2015. | ||||||||||||
Through December 31, 2014, the Company repurchased 639,831 ordinary shares for an aggregate amount of $ 6,726. | ||||||||||||
C. Employee Incentive Plans: | ||||||||||||
The Company's Board of directors approves, from time to time, employee incentive plans, the last of which was approved in October 2007. Employee incentive plans include stock options, restricted stock units and restricted stock awards. | ||||||||||||
Stock Options | ||||||||||||
The following table summarizes the effects of stock-based compensation resulting from the application of ASC 718 included in the Statements of Operations as follows: | ||||||||||||
Year ended December 31, | ||||||||||||
2 0 1 4 | 2 0 1 3 | 2 0 1 2 | ||||||||||
Cost of Revenues: | ||||||||||||
Products | $ | 375 | $ | 310 | $ | 305 | ||||||
Services | 178 | 140 | 106 | |||||||||
Research and Development expenses | 870 | 881 | 923 | |||||||||
Sales and Marketing expenses | 446 | 576 | 497 | |||||||||
General and Administration expenses | 255 | 188 | 96 | |||||||||
Total | $ | 2,124 | $ | 2,095 | $ | 1,927 | ||||||
Stock options usually vest over four years and their term may not exceed 10 years. The exercise price of each option is usually the market price of the underlying share at the date of each grant. | ||||||||||||
Through December 31, 2014, 10,734,967 share options have been issued under the plans, of which 4,821,679 options have been exercised, 4,378,646 options have been cancelled, and 644,685 options were exercisable as of December 31, 2014. | ||||||||||||
The weighted average fair value (in dollars) of the options granted during 2014, 2013 and 2012, according to Black-Scholes option-pricing model, amounted to $4.31, $4.93 and $5.32 per option, respectively. Fair value was determined on the basis of the price of the Company's share. | ||||||||||||
Summary of the status of the Company's share option plans as of December 31, 2014, 2013 and 2012, as well as changes during each of the years then ended, is presented below: | ||||||||||||
2 0 1 4 | 2 0 1 3 | 2 0 1 2 | ||||||||||
Share | Weighted average exercise | Share | Weighted average exercise | Share | Weighted average exercise | |||||||
options | price | options | Price | options | price | |||||||
Outstanding - beginning of year | 1,707,702 | 7.48 | 1,844,347 | 5.75 | 1,575,814 | 4.84 | ||||||
Granted | 392,879 | 10.77 | 383,537 | 8.87 | 452,494 | 7.98 | ||||||
Exercised | 473,616 | 5.48 | 513,896 | 2.34 | 131,922 | 2.03 | ||||||
Cancelled | 92,323 | 8.09 | 6,286 | 5.73 | 52,039 | 7.1 | ||||||
Outstanding - year end | 1,534,642 | 8.9 | 1,707,702 | 7.48 | 1,844,347 | 5.75 | ||||||
Options exercisable at year-end | 644,685 | 8.11 | 738,915 | 6.35 | 867,134 | 3.86 | ||||||
The following table summarizes information about share options outstanding as of December 31, 2014: | ||||||||||||
Outstanding as of | Exercisable as of | |||||||||||
31-Dec-14 | 31-Dec-14 | |||||||||||
Weighted average remaining | Weighted average exercise | Weighted average exercise | ||||||||||
Range of exercise prices | Number outstanding | contractual life | price | Number exercisable | price | |||||||
(US dollars) | (in years) | (US dollars) | (US dollars) | |||||||||
0.93-1.25 | 19,983 | 4.37 | 1.23 | 19,983 | 1.23 | |||||||
4.20-6.70 | 79,298 | 4.8 | 5.96 | 70,531 | 5.89 | |||||||
7.40-7.91 | 288,577 | 4.63 | 7.81 | 163,166 | 7.8 | |||||||
8.38-8.89 | 609,882 | 4.81 | 8.61 | 296,413 | 8.51 | |||||||
9.04-9.58 | 62,989 | 5.15 | 9.07 | 15,429 | 9.07 | |||||||
10.08-11.67 | 473,913 | 5.94 | 10.73 | 79,163 | 10.8 | |||||||
1,534,642 | 644,685 | |||||||||||
Unrecognized compensation expense | ||||||||||||
As of December 31, 2014, there was $1,877 of total unrecognized compensation cost related to non-vested employee options and $619 of total unrecognized compensation cost related to non-vested employee RSUs. These costs are generally expected to be recognized over a period of four years. | ||||||||||||
Restricted Share Units | ||||||||||||
Restricted Share Units (“RSU”) grants are rights to receive shares of the Company's common stock on a one-for-one basis and vest 25% on each of the first, second, third and fourth anniversaries of the grant date and are not entitled to dividends or voting rights, if any, until they are vested. The fair value of the RSU awards is being recognized on a straight-line basis over vesting period. As of December 31, 2014, 451,647 RSU's, had been issued, 343,718 RSU's had been vested, 9,609 had been cancelled. As of December 31, 2013, 406,940 RSU's, had been issued, 320,973 RSU's had been vested, 5,442 had been cancelled. As of December 31, 2012, 346,619 RSU's, had been issued, 236,224 RSU's had been vested, 3,425 had been cancelled. | ||||||||||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
INCOME TAXES [Abstract] | ||||||||||||
INCOME TAXES | NOTE 9 - INCOME TAXES | |||||||||||
A. Income Tax Regulations (Rules on Bookkeeping by Foreign Invested Companies and Certain Partnerships and Determination of their Taxable Income), 1986: | ||||||||||||
As a "foreign invested company" (as defined in the Israeli Law for the Encouragement of Capital Investments-1959), the Company's management has elected to apply Income Tax Regulations (Rules for Maintaining Accounting Records of Foreign Invested Companies and Certain Partnerships and Determining Their Taxable Income) - 1986. Accordingly, its taxable income or loss is calculated in US Dollars. | ||||||||||||
B. Law for the Encouragement of Capital Investments - 1959: | ||||||||||||
Part of the Company's investment in equipment has received approvals in accordance with the Law for the Encouragement of Capital Investments, 1959 (“Approved Enterprise” status) in three separate investment plans. The Company has chosen to receive its benefits through the “Alternative Benefits” track, and, as such, is eligible for various benefits. These benefits include accelerated depreciation of fixed assets used in the investment program, as well as a full tax exemption on undistributed income in relation to income derived from the first plan for a period of 4 years and for the second and third plans for a period of 2 years. Thereafter a reduced tax rate of 25% will be applicable for an additional period of up to 3 years for the first plan and 5 years for the second and third plans, commencing with the date on which taxable income is first earned but not later than certain dates. The first and second plan benefit periods have already expired. The benefit period of the third plan have commenced. | ||||||||||||
On April 1, 2005, an amendment to the Investment Law came into effect (“the Amendment”) and has significantly changed the provisions of the Investment Law. The Amendment limits the scope of enterprises which may be approved by the Investment Center by setting criteria for the approval of a facility as a Privileged Enterprise, such as provisions generally requiring that at least 25% of the Privileged Enterprise's Income will be derived from export. Additionally, the Amendment enacted major changes in the manner in which tax benefits are awarded under the Investment Law so that companies no longer require Investment Center approval in order to qualify for tax benefits. However, the Investment Law provides that terms and benefits included in any certificate of approval already granted will remain subject to the provisions of the law as they were on the date of such approval. Therefore, the Israeli companies with Approved Enterprise status will generally not be subject to the provisions of the Amendment. | ||||||||||||
The entitlement to the above benefits is conditional upon the Company fulfilling the conditions stipulated by the above law, regulations published thereunder and the instruments of approval for the specific investments in "Approved Enterprises". In the event of failure to comply with these conditions, the benefits may be canceled and the Company may be required to refund the amount of the benefits, in whole or in part, including interest. | ||||||||||||
In the event of distribution by the Company of a cash dividend out of retained earnings that were tax exempt due to its Approved Enterprise status, the Company would have to pay corporate tax of 10% - 25% on the income from which the dividend was distributed based on the extent to which non-Israeli shareholders hold Company's shares. A 15% withholding tax may be deducted from dividends distributed to the recipients. | ||||||||||||
In 2008, the Company submitted a request to approve a new plan (fourth plan) as a Privileged Enterprise in accordance with the Amendment to the Investment Law. The commencing year was 2010. The expected expiration year is 2021. | ||||||||||||
The Company has not provided deferred taxes on future distributions of tax-exempt earnings, as the Company intends to reinvest any income derived from its Approved Enterprise program and not to distribute such income as a dividend. Accordingly, such earnings have been considered to be permanently reinvested. | ||||||||||||
In 2011, new legislation amending to the Investment Law was adopted. Under this new legislation, a uniform corporate tax rate will apply to all qualifying income of certain Industrial Companies (Requirement of a minimum export of 25% of the company's total turnover), as opposed to the current law's incentives, which are limited to income from Approved Enterprises during their benefits period. Under the new law, the uniform tax rate will be 10% in areas in Israel designated as Development Zone A and 15% elsewhere in Israel during 2011-2012, 7% and 12.5%, respectively, in 2013-2014, and 6% and 12%, respectively thereafter. The profits of these Industrial Companies will be freely distributable as dividends, subject to a 15% withholding tax (or lower, under an applicable tax treaty). | ||||||||||||
Under the transition provisions of the new legislation, the Company may decide to irrevocably implement the new law while waiving benefits provided under the current law or to remain subject to the current law. | ||||||||||||
In August 2013 "The Arrangements Law" (hereinafter - "the Law") was officially published. The following significant changes affecting taxation were approved: | ||||||||||||
1. The tax rate on a company in Development area A, effective January 1, 2014 is 9% (instead of 7% in 2014 and 6% in 2015 and thereafter), and the tax rate for companies in all other areas will be 16% (instead of 12.5% in 2014 and 12% in 2015 and thereafter). | ||||||||||||
2. The tax rate on dividend distributed, generated from "preferred income" or by a company that has an approved enterprise related to tourism increased effective January 1, 2014 from 15% to 20%. | ||||||||||||
Starting 2014, the Company has taxable income attributable to Approved Enterprise programs. | ||||||||||||
C. Law for the Encouragement of Industry (Taxation), 1969: | ||||||||||||
The Company is an “Industrial Company” under the Law for the Encouragement of Industry (Taxation), 1969 and, therefore, is entitled to certain tax benefits, mainly accelerated rates of depreciation. | ||||||||||||
D. Deferred Taxes: | ||||||||||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company and its subsidiary deferred tax assets are as follows: | ||||||||||||
As of December 31, | ||||||||||||
2 0 1 4 | 2 0 1 3 | |||||||||||
Israel net operating loss carry-forwards (*) | $ | - | $ | 19 | ||||||||
Temporary differences relating to reserve and allowances | 1,796 | 151 | ||||||||||
Net deferred tax asset | $ | 1,796 | $ | 170 | ||||||||
(*) | Deferred taxes were calculated based on effective tax rates. | |||||||||||
Presentation in balance sheets: | ||||||||||||
December 31, | ||||||||||||
2 0 1 4 | 2 0 1 3 | |||||||||||
Current deferred income tax | $ | 142 | $ | 137 | ||||||||
Other long term assets | 1,654 | 33 | ||||||||||
$ | 1,796 | $ | 170 | |||||||||
Under ASC 740-10, deferred tax assets are to be recognized for the anticipated tax benefits associated with net operating loss carry-forwards and deductible temporary differences; unless it is more-likely-than-not that some or all of the deferred tax assets will not be realized. | ||||||||||||
The adjustment is made by a valuation allowance. | ||||||||||||
E. Israel and International components of income profit before taxes | ||||||||||||
Year ended December 31, | ||||||||||||
2 0 1 4 | 2 0 1 3 | 2 0 1 2 | ||||||||||
Israel | $ | 16,648 | $ | 11,788 | $ | 11,425 | ||||||
International | 826 | 1,238 | 527 | |||||||||
$ | 17,474 | $ | 13,026 | $ | 11,952 | |||||||
F. Tax Reconciliation: | ||||||||||||
The following is a reconciliation of the theoretical tax expense, assuming that all income is taxed at the ordinary statutory average corporate tax rate in Israel and the actual tax expense in the statement of operations, is as follows: | ||||||||||||
Year ended December 31, | ||||||||||||
2 0 1 4 | 2 0 1 3 | 2 0 1 2 | ||||||||||
Net income before taxes | $ | 17,474 | $ | 13,026 | $ | 11,952 | ||||||
Statutory tax expenses | 4,631 | 3,256 | 2,988 | |||||||||
Effect of Approved Enterprise status | (8,639 | ) | - | - | ||||||||
Permanent differences, including difference between the basis of measurement of income reported for tax purposes and the basis of measurement of income for financial reporting purposes - net | 776 | 218 | 46 | |||||||||
Different tax rates of deferred taxes | 1,839 | (1,344 | ) | 1,901 | ||||||||
Deferred taxes on carryforward tax losses for which valuation allowance was provided | (39 | ) | - | - | ||||||||
Effect of foreign operations taxed at various rates | (31 | ) | 96 | - | ||||||||
Adjustments for previous years tax | - | 261 | - | |||||||||
Reinstate advances paid to tax authorities | - | - | (747 | ) | ||||||||
Change in valuation allowance | 42 | - | (4,080 | ) | ||||||||
Other | 243 | 24 | 16 | |||||||||
(5,809 | ) | (745 | ) | (2,864 | ) | |||||||
Actual tax expense (benefit) | $ | (1,178 | ) | $ | 2,511 | $ | 124 | |||||
G. Effective Tax Rates: | ||||||||||||
The Company's effective tax rates differ from the statutory rates applicable to the Company for tax year 2014 due primarily to effect of Approved Enterprise status and for tax years 2013 and 2012 due primarily to its tax losses carry-forward. | ||||||||||||
H. Tax Assessments: | ||||||||||||
The Company has either received final tax assessments or the applicable statute of limitations rules have become effective through tax year 2010. Two subsidiaries received final tax assessments through tax year 2012. The other subsidiaries did not receive final tax assessments since their incorporation. | ||||||||||||
I. Uncertain Tax Positions: | ||||||||||||
The taxation of the Company's business is subject to the application of multiple and sometimes conflicting tax laws and regulations as well as multinational tax conventions. The application of tax laws and regulations is subject to legal and factual interpretation, judgment and uncertainty. Tax laws themselves are subject to change as a result of changes in fiscal policy, changes in legislation and the evolution of regulations and court rulings. Consequently, taxing authorities may impose tax assessments or judgments against the Company that could materially impact its tax liability and/or its effective income tax rate. | ||||||||||||
The Company believes that it has adequately provided for any reasonably foreseeable outcomes related to tax audits and settlement. The final tax outcome of its tax audits could be different from that which is reflected in the Company's income tax provisions and accruals. Such differences could have a material effect on the Company's income tax provision and net income in the period in which such determination is made. | ||||||||||||
The following table summarizes the changes in uncertain tax positions: | ||||||||||||
As of December 31, | ||||||||||||
2 0 1 4 | 2 0 1 3 | |||||||||||
Balance at the beginning of the year | $ | 451 | $ | 255 | ||||||||
Increase (decrease) related to prior year tax positions, net | (36 | ) | 24 | |||||||||
Increase related to current year tax positions | 236 | 172 | ||||||||||
Balance at the end of the year | $ | 651 | $ | 451 | ||||||||
J. Income from other sources in Israel: | ||||||||||||
Income not eligible for benefits under the Approved Enterprise Law mentioned in A. above is taxed at the corporate tax rate of 26.5% in 2014 and 25% in 2013 and 2012 | ||||||||||||
GEOGRAPHIC_AREAS_AND_MAJOR_CUS
GEOGRAPHIC AREAS AND MAJOR CUSTOMERS | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
GEOGRAPHIC AREAS AND MAJOR CUSTOMERS [Abstract] | ||||||
GEOGRAPHIC AREAS AND MAJOR CUSTOMERS | NOTE 10 - GEOGRAPHIC AREAS AND MAJOR CUSTOMERS | |||||
A. Sales by geographic area (as percentage of total sales): | ||||||
Year ended December 31, | ||||||
2 0 1 4 | 2 0 1 3 | 2 0 1 2 | ||||
% | % | % | ||||
Taiwan, R.O.C. | 45 | 52 | 52 | |||
USA | 26 | 15 | 23 | |||
Korea | 11 | 6 | 9 | |||
Singapore | 3 | 5 | 6 | |||
China | 4 | 6 | 3 | |||
Europe | 9 | 13 | 6 | |||
Other | 2 | 3 | 1 | |||
Total | 100 | 100 | 100 | |||
B. Sales by major customers (as percentage of total sales): | ||||||
Year ended December 31, | ||||||
2 0 1 4 | 2 0 1 3 | 2 0 1 2 | ||||
% | % | % | ||||
Customer A | 4 | 4 | 7 | |||
Customer B | 4 | 4 | 10 | |||
Customer C | 36 | 44 | 41 | |||
Customer D | 1 | 1 | 5 | |||
Customer E | 9 | 5 | 6 | |||
Customer F | 21 | 14 | 11 | |||
Others | 25 | 28 | 20 | |||
Total | 100 | 100 | 100 | |||
C. Assets by location: | ||||||
Substantially all fixed assets are located in Israel. | ||||||
TRANSACTIONS_AND_BALANCES_WITH
TRANSACTIONS AND BALANCES WITH RELATED PARTIES | 12 Months Ended |
Dec. 31, 2014 | |
TRANSACTIONS AND BALANCES WITH RELATED PARTIES [Abstract] | |
TRANSACTIONS AND BALANCES WITH RELATED PARTIES | NOTE 11 - TRANSACTIONS AND BALANCES WITH RELATED PARTIES |
The total directors' fees (including the chairman of the Board) for the year 2014 amounted to $247 (2013 - $208, 2012 - $204). The number of stock options granted to directors in 2014 amounted to 135,000. | |
FINANCIAL_INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
FINANCIAL INSTRUMENTS [Abstract] | ||||||||||||||
FINANCIAL INSTRUMENTS | NOTE 12 - FINANCIAL INSTRUMENTS | |||||||||||||
A. Hedging Activities: | ||||||||||||||
The Company enters into forward contracts, and currency options to hedge its balance sheet exposure as well as certain future cash flows in connection with certain operating expenses (mainly payroll expense) and forecast transactions which are expected to be denominated in New Israeli Shekel ("NIS"). | ||||||||||||||
The Company is exposed to losses in the event of non-performance by counterparties to financial instruments; however, as the counterparties are major Israeli banks, credit risk is considered immaterial. The Company does not hold or issue derivatives for trading purposes. | ||||||||||||||
The notional amounts of the hedging instruments as of December 31, 2014 and December 31, 2013 were $59,475, and $16,612 respectively. The terms of all of these currency derivatives are less than one year. | ||||||||||||||
B. Derivative Instruments | ||||||||||||||
The fair value of derivative contracts as of December 31, 2014 and December 31, 2013 was as follows: | ||||||||||||||
Derivative Assets Reported in Other | Derivative Liabilities Reported in Other | |||||||||||||
Current Assets | Current Liabilities | |||||||||||||
December 31, | December 31, | |||||||||||||
2 0 1 4 | 2 0 1 3 | 2 0 1 4 | 2 0 1 3 | |||||||||||
Derivatives designated as hedging instruments in cash flow hedge | $ | - | $ | 541 | $ | 1,177 | $ | - | ||||||
The following table represents the balance of derivative instruments as of December 31, 2014 and 2013, and their impact on accumulated other comprehensive income (“OCI”) for the year ended December 31, 2014: | ||||||||||||||
Balance at December 31,2013 | $ | 541 | ||||||||||||
Amount of loss recognized in OCI | (1,844) | |||||||||||||
Amount of loss reclassified from OCI to income | 126 | |||||||||||||
Balance at December 31,2014 | $ | (1,177) | ||||||||||||
The impact of derivative instrument on total operating expenses in the year ended December 31, 2014, 2013 and 2012 was: | ||||||||||||||
Year ended December 31, | ||||||||||||||
2 0 1 4 | 2 0 1 3 | 2 0 1 2 | ||||||||||||
Gain (loss) on derivative instruments | $ | (126) | $ | 1,181 | $ | -116 | ||||||||
GENERAL_Policies
GENERAL (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
GENERAL [Abstract] | |
Business Description: | A. Business Description: |
Nova Measuring Instruments Ltd. (the “Company”) was incorporated in May 1993 and commenced operations in October 1993 in the design, development and production of integrated process control systems, used in the manufacturing of semiconductors. In October 1995, the Company began manufacturing and marketing its systems. In recent years, the Company expanded its product offering to include stand-alone systems. | |
The Company continues research and development for the next generation of its products and additional applications for such products. The Company operates in one operating segment. | |
The Company has wholly owned subsidiaries in the United States of America (the “U.S.”), Japan, The Netherlands, Taiwan, Korea and Germany. The subsidiaries (the “subsidiaries”) are engaged in pre-sale activities and providing technical support to customers. | |
The ordinary shares of the Company are traded on The NASDAQ Global Market since April, 2000 and on the Tel-Aviv Stock Exchange since June, 2002. | |
Use of Estimates in the Preparation of Financial Statements: | B. Use of Estimates in the Preparation of Financial Statements: |
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. | |
Financial Statements in U.S. Dollars: | C. Financial Statements in U.S. Dollars: |
The currency of the primary economic environment in which the operations of the Company and its subsidiaries are conducted is the U.S. dollar (the “dollar”). Accordingly, the Company uses the dollar as its functional and reporting currency. Certain of the dollar amounts in the financial statements may represent the dollar equivalent of other currencies, including the New Israeli Shekel (“NIS”). | |
Transactions and balances denominated in dollars are presented at their dollar amounts. Non-dollar transactions and balances are remeasured into dollars in accordance with the principles set forth in Accounting Standards Codification Topic No. 830 (“ASC 830”), “Foreign Currency Translation”. Net financing income includes translation gains (losses), which were immaterial for all years presented. | |
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||||||||||
Principles of Consolidation and Basis of Presentation: | A. Principles of Consolidation and Basis of Presentation: | |||||||||
The Company's consolidated financial statements include the financial statements of the Company and its wholly owned subsidiaries (“the Group”), after elimination of material intercompany transactions and balances. | ||||||||||
The Company's consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States of America. | ||||||||||
The following is a summary of the significant accounting policies, which were applied in the preparation of these financial statements, on a consistent basis: | ||||||||||
Cash and Cash Equivalents: | B. Cash and Cash Equivalents: | |||||||||
Cash and cash equivalents are comprised of cash and demand deposits in banks and other short-term, highly liquid investments (primarily interest-bearing deposits) with maturity dates not exceeding three months from the date of deposit. | ||||||||||
Allowance for Doubtful Accounts: | C. Allowance for Doubtful Accounts: | |||||||||
The allowance for doubtful accounts is computed on the specific identification basis. | ||||||||||
Short-Term Investments: | D. Short-Term Investments: | |||||||||
Held to Maturity Investments | ||||||||||
Securities held to maturity include investments in debt securities that the Company has positive intent and ability to hold to maturity. Securities held to maturity are measured at amortized cost. | ||||||||||
Short-term held to maturity investments include investments in debt securities with maturities of more than three months but less than one year. | ||||||||||
Available for Sales Securities | ||||||||||
Available-for-sale financial assets are non-derivative financial assets that are designated as available-for-sale and that are not classified in any of the other categories of financial assets. Subsequent to initial recognition, they are measured at fair value and changes therein, other than impairment losses and foreign currency differences on available for sale-debt instruments are recognized in other comprehensive income and presented in the fair value reserve in equity. When an investment is derecognized, the gain or loss accumulated in equity is reclassified to the Statement of income. | ||||||||||
Held for Trading Securities | ||||||||||
A financial asset is classified at fair value through profit or loss if it is classified as held for trading or is designated as such upon initial recognition. Attributable transaction costs are recognized in profit or loss as incurred. Financial assets at fair value through profit or loss are measured at fair value, and changes therein are recognized in profit or loss. | ||||||||||
Inventories: | E. Inventories: | |||||||||
Inventories are presented at the lower of cost or market. Cost is determined as follows: | ||||||||||
Raw materials-on the average cost basis. | ||||||||||
Finished goods and work in process - on actual production cost basis (materials, labor and indirect manufacturing costs). | ||||||||||
The Company writes down product inventory, based on assumptions about future demand and market conditions. | ||||||||||
Fixed Assets: | F. Fixed Assets: | |||||||||
Fixed assets are presented at cost, net of accumulated depreciation. Annual depreciation is calculated based on the straight-line method over the shorter of the estimated useful lives of the related assets. Estimated useful life, in years, is as follows: | ||||||||||
Years | ||||||||||
Electronic equipment | 7-Mar | |||||||||
Office furniture and equipment | 15-Jul | |||||||||
Leasehold improvements are amortized using the straight-line method, over the expected useful lives of the improvements. | ||||||||||
Accrued Warranty Costs: | G. Accrued Warranty Costs: | |||||||||
Accrued warranty costs are calculated in respect of the warranty period on the Company's products (generally one year) and are based on the Company's prior experience and in accordance with management's estimate. See Note 5B for disclosure with regard to accrued warranty costs. | ||||||||||
Revenue Recognition: | H. Revenue Recognition: | |||||||||
Revenues from the sale of products are recognized when all the following criteria have been met: a persuasive evidence of an arrangement exists, delivery has occurred, the price is fixed or determinable, collection of resulting receivables is probable and there are no remaining significant obligations. | ||||||||||
Allocation of arrangement consideration among the separate units of accounting is based on their relative selling prices. The selling price for each unit of accounting is determined based on a selling price hierarchy using either vendor specific objective evidence (“VSOE”) of selling price, third party evidence of selling price (“TPE”) or the vendor's best estimate of estimated selling price (“ESP”) for that deliverable. Use of the residual method is prohibited. The objective of ESP is to determine the price at which the Company would transact a sale if the product or service were sold on a stand-alone basis. | ||||||||||
The adoption of this standard did not have a material impact on the Company's Consolidated Statements of Operations. | ||||||||||
Revenues from Service contracts generally specify fixed payment amounts for periods longer than one month, and are recognized on a straight line basis over the term of the contract. | ||||||||||
Research and Development: | I. Research and Development: | |||||||||
Research and development costs are charged to operations as incurred. Amounts received or receivable from the Government of Israel through the Office of the Chief Scientist (“OCS”) as participation in certain research and development programs are offset against research and development costs. The accrual for grants receivable is determined based on the terms of the programs, provided that the criteria for entitlement are expected to be met. Royalty expenses are determined based on actual revenues and presented in Cost of Goods Sold. | ||||||||||
Income Taxes: | J. Income Taxes: | |||||||||
The Company accounts for income taxes utilizing the asset and liability method in accordance with ASC 740, “Income Taxes”. Current tax liabilities are recognized for the estimated taxes payable on tax returns for the current year. Deferred tax liabilities or assets are recognized for the estimated future tax effects attributable to temporary differences between the income tax bases of assets and liabilities and their reported amounts in the financial statements, and for tax loss carryforwards. Measurement of current and deferred tax liabilities and assets is based on provisions of enacted tax laws, and deferred tax assets are reduced, if necessary, by the amount of tax benefits, the realization of which is not considered more likely than not based on available evidence. | ||||||||||
ASC 740-10 requires a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. | ||||||||||
Share-Based Compensation: | K. Share-Based Compensation: | |||||||||
The Company accounts for equity based compensation using ASC 718-10 “Share-Based Payment,” which requires companies to recognize the cost of employee services received in exchange for awards of equity instruments based upon the grant-date fair value of those awards. | ||||||||||
Stock Options | ||||||||||
Under ASC 718, the fair market value of each option grant is estimated on the date of grant using the “Black-Scholes option pricing” method with the following weighted-average assumptions: | ||||||||||
2 0 1 4 | 2 0 1 3 | 2 0 1 2 | ||||||||
Risk-free interest rate | 1.61% | 1.35% | 0.66% | |||||||
Expected life of options | 4.75 years | 4.75 years | 4.75 years | |||||||
Expected volatility | 45.29% | 68.13% | 87.86% | |||||||
Expected dividend yield | 0% | 0% | 0% | |||||||
Earnings per Share: | L. Earnings per Share: | |||||||||
Earnings per share are presented in accordance with ASC 260-10, “Earnings per Share.” Pursuant to which, basic earnings per share excludes the dilutive effects of convertible securities and is computed by dividing income (loss) available to common shareholders by the weighted-average number of ordinary shares outstanding for the period, net of treasury shares. Diluted earnings per share reflect the potential dilutive effect of all convertible securities. The number of potentially dilutive securities excluded from diluted earnings per share due to the anti-dilutive effect amounted to 526,381 in 2014, 939,366 in 2013 and 824,664 in 2012. | ||||||||||
Fair Value Measurements: | M. Fair Value Measurements: | |||||||||
The fair values of the Company cash and cash equivalents, accounts receivable, and accounts payable approximate their carrying amounts due to their short-term nature. The estimated fair values of our derivative instruments are calculated based on market rates to settle the instruments. These values represent the estimated amounts the Company would receive upon sale or pay upon transfer, taking into consideration current market rates. The Company calculate derivative asset and liability amounts using a variety of valuation techniques, depending on the specific characteristics of the hedging instrument, taking into account credit risk. The fair value of the Company derivative contracts (including forwards and options) is determined using standard valuation models. The significant inputs used in these models are readily available in public markets or can be derived from observable market transactions and, therefore, the Company derivative contracts have been classified as Level 2. Inputs used in these standard valuation models include the applicable spot, forward, and discount rates. The standard valuation model for the Company option contracts also includes implied volatility, which is specific to individual options and is based on rates quoted from a widely used third-party resource. | ||||||||||
Derivative Financial Instruments: | N. Derivative Financial Instruments: | |||||||||
ASC 815 requires the presentation of all derivatives as either assets or liabilities on the balance sheet and the measurement of those instruments at fair value. | ||||||||||
For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item, if any, is recognized in current earnings during the period of change. See Note 12 for disclosure of the derivative financial instruments in accordance with such pronouncements. | ||||||||||
Impairment of Long-Lived Assets: | O. Impairment of Long-Lived Assets: | |||||||||
Long-lived assets, held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets (or asset group) may not be recoverable. In the event that the sum of the expected future cash flows (undiscounted and without interest charges) of the long-lived assets (or asset group) is less than the carrying amount of such assets, an impairment charge would be recognized, and the assets (or asset group) would be written down to their estimated fair values. | ||||||||||
New Accounting Pronouncements: | P. New Accounting Pronouncements | |||||||||
In May 2014, the Financial Accounting Standards Board issued a new standard to achieve a consistent application of revenue recognition within the U.S., resulting in a single revenue model to be applied by reporting companies under U.S. generally accepted accounting principles. Under the new model, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new standard is effective beginning in the first quarter of 2017; early adoption is prohibited. The new standard is required to be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. The Company has not yet selected a transition method nor determined the impact of the new standard on its consolidated financial statements. | ||||||||||
On June 19, 2014, the FASB issued ASU 2014-12 in response to the EITF consensus on Issue 13-D. The ASU clarifies that entities should treat performance targets that can be met after the requisite service period of a share-based payment award as performance conditions that affect vesting. Therefore, an entity would not record compensation expense (measured as of the grant date without taking into account the effect of the performance target) related to an award for which transfer to the employee is contingent on the entity's satisfaction of a performance target until it becomes probable that the performance target will be met. The ASU does not contain any new disclosure requirements. The ASU 2014-12 is effective for annual periods and interim periods within those annual periods, beginning after December 15, 2015. An entity may apply the standards (1) prospectively to all share-based payment awards that are granted or modified on or after the effective date, or (2) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. Earlier application is permitted. The Company has not yet selected a transition method nor determined the impact of the new standard on its consolidated financial statements. | ||||||||||
In November 2014, the FASB issued ASU 2014-16, the ASU states that a for hybrid financial instruments issued in the form of a share, an entity (an issuer or an investor) should determine the nature of the host contract by considering all stated and implied substantive terms and features of the hybrid financial instrument, weighing each term and feature on the basis of relevant facts and circumstances. That is, an entity should determine the nature of the host contract by considering the economic characteristics and risks of the entire hybrid financial instrument, including the embedded derivative feature that is being evaluated for separate accounting from the host contract. The ASU 2014-16 is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2015, and interim periods beginning after December 15, 2016. Early adoption, including adoption in an interim period, is permitted. If an entity early adopts the amendments in an interim period, any adjustments shall be reflected as of the beginning of the fiscal year that includes that interim period. The Company has not yet selected a transition method nor determined the impact of the new standard on its consolidated financial statements. |
SIGNIFICANT_ACCOUNTING_POLICIE2
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||||||||||
Estimated Useful Lives of Fixed Assets | Estimated useful life, in years, is as follows: | |||||||||
Years | ||||||||||
Electronic equipment | 7-Mar | |||||||||
Office furniture and equipment | 15-Jul | |||||||||
Weighted Average Assumptions Used in Determining Fair Market Value of Options | Under ASC 718, the fair market value of each option grant is estimated on the date of grant using the “Black-Scholes option pricing” method with the following weighted-average assumptions: | |||||||||
2 0 1 4 | 2 0 1 3 | 2 0 1 2 | ||||||||
Risk-free interest rate | 1.61% | 1.35% | 0.66% | |||||||
Expected life of options | 4.75 years | 4.75 years | 4.75 years | |||||||
Expected volatility | 45.29% | 68.13% | 87.86% | |||||||
Expected dividend yield | 0% | 0% | 0% |
INVENTORIES_Tables
INVENTORIES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
INVENTORIES [Abstract] | ||||||||
Inventories | As of December 31, | |||||||
2 0 1 4 | 2 0 1 3 | |||||||
Raw materials | $ | 3,148 | $ | 2,032 | ||||
Work in process | 7,656 | 8,797 | ||||||
Finished goods | 5,303 | 7,289 | ||||||
$ | 16,107 | $ | 18,118 |
FIXED_ASSETS_NET_Tables
FIXED ASSETS, NET (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
FIXED ASSETS, NET [Abstract] | ||||||||
Schedule of Fixed Assets, Net | As of December 31, | |||||||
2 0 1 4 | 2 0 1 3 | |||||||
Cost: | ||||||||
Electronic equipment | $ | 21,716 | $ | 18,193 | ||||
Office furniture and equipment | 1,159 | 1,126 | ||||||
Leasehold improvements | 4,555 | 3,547 | ||||||
27,430 | 22,866 | |||||||
Accumulated depreciation and amortization: | ||||||||
Electronic equipment | 13,244 | 10,424 | ||||||
Office furniture and equipment | 882 | 829 | ||||||
Leasehold improvements | 1,854 | 1,231 | ||||||
15,980 | 12,484 | |||||||
Net book value | $ | 11,450 | $ | 10,382 | ||||
OTHER_CURRENT_LIABILITIES_Tabl
OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
OTHER CURRENT LIABILITIES [Abstract] | |||||||
Schedule of Other Current Liabilities | As of December 31, | ||||||
2 0 1 4 | 2 0 1 3 | ||||||
Accrued salaries and fringe benefits | $ | 6,905 | $ | 6,659 | |||
Accrued warranty costs (See B below) | 2,356 | 2,402 | |||||
Governmental institutions | 1,431 | 1,783 | |||||
Other | 1,914 | 604 | |||||
$ | 12,606 | $ | 11,448 | ||||
Changes in the Product Warranty Accrual | The following table provides the changes in the product warranty accrual for the fiscal years ended December 31, 2014 and 2013: | ||||||
As of December 31, | |||||||
2 0 1 4 | 2 0 1 3 | ||||||
Balance as of beginning of year | $ | 2,402 | $ | 1,994 | |||
Services provided under warranty | (2,428) | (2,086 | ) | ||||
Changes in provision | 2,382 | 2,494 | |||||
Balance as of end of year | $ | 2,356 | $ | 2,402 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
COMMITMENTS AND CONTINGENCIES [Abstract] | |||||
Minimum Rental Payments Under Operating Lease Agreements | The minimum rental payments are as follows: | ||||
Year | |||||
2015 | $ | 1,361 | |||
2016 | $ | 1,305 | |||
2017 - 2020 | $ | 4,794 | |||
SHAREHOLDERS_EQUITY_Tables
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
SHAREHOLDERS' EQUITY [Abstract] | ||||||||||||
Effects of Stock-Based Compensation in the Statements of Operations | The following table summarizes the effects of stock-based compensation resulting from the application of ASC 718 included in the Statements of Operations as follows: | |||||||||||
Year ended December 31, | ||||||||||||
2 0 1 4 | 2 0 1 3 | 2 0 1 2 | ||||||||||
Cost of Revenues: | ||||||||||||
Products | $ | 375 | $ | 310 | $ | 305 | ||||||
Services | 178 | 140 | 106 | |||||||||
Research and Development expenses | 870 | 881 | 923 | |||||||||
Sales and Marketing expenses | 446 | 576 | 497 | |||||||||
General and Administration expenses | 255 | 188 | 96 | |||||||||
Total | $ | 2,124 | $ | 2,095 | $ | 1,927 | ||||||
Status of the Company's Share Option Plans | Summary of the status of the Company's share option plans as of December 31, 2014, 2013 and 2012, as well as changes during each of the years then ended, is presented below: | |||||||||||
2 0 1 4 | 2 0 1 3 | 2 0 1 2 | ||||||||||
Share | Weighted average exercise | Share | Weighted average exercise | Share | Weighted average exercise | |||||||
options | price | options | Price | options | price | |||||||
Outstanding - beginning of year | 1,707,702 | 7.48 | 1,844,347 | 5.75 | 1,575,814 | 4.84 | ||||||
Granted | 392,879 | 10.77 | 383,537 | 8.87 | 452,494 | 7.98 | ||||||
Exercised | 473,616 | 5.48 | 513,896 | 2.34 | 131,922 | 2.03 | ||||||
Cancelled | 92,323 | 8.09 | 6,286 | 5.73 | 52,039 | 7.1 | ||||||
Outstanding - year end | 1,534,642 | 8.9 | 1,707,702 | 7.48 | 1,844,347 | 5.75 | ||||||
Options exercisable at year-end | 644,685 | 8.11 | 738,915 | 6.35 | 867,134 | 3.86 | ||||||
Information about Share Options Outstanding | The following table summarizes information about share options outstanding as of December 31, 2014: | |||||||||||
Outstanding as of | Exercisable as of | |||||||||||
31-Dec-14 | 31-Dec-14 | |||||||||||
Weighted average remaining | Weighted average exercise | Weighted average exercise | ||||||||||
Range of exercise prices | Number outstanding | contractual life | price | Number exercisable | price | |||||||
(US dollars) | (in years) | (US dollars) | (US dollars) | |||||||||
0.93-1.25 | 19,983 | 4.37 | 1.23 | 19,983 | 1.23 | |||||||
4.20-6.70 | 79,298 | 4.8 | 5.96 | 70,531 | 5.89 | |||||||
7.40-7.91 | 288,577 | 4.63 | 7.81 | 163,166 | 7.8 | |||||||
8.38-8.89 | 609,882 | 4.81 | 8.61 | 296,413 | 8.51 | |||||||
9.04-9.58 | 62,989 | 5.15 | 9.07 | 15,429 | 9.07 | |||||||
10.08-11.67 | 473,913 | 5.94 | 10.73 | 79,163 | 10.8 | |||||||
1,534,642 | 644,685 | |||||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
INCOME TAXES [Abstract] | ||||||||||||
Significant Components of Deferred Tax Assets | Significant components of the Company and its subsidiary deferred tax assets are as follows: | |||||||||||
As of December 31, | ||||||||||||
2 0 1 4 | 2 0 1 3 | |||||||||||
Israel net operating loss carry-forwards (*) | $ | - | $ | 19 | ||||||||
Temporary differences relating to reserve and allowances | 1,796 | 151 | ||||||||||
Net deferred tax asset | $ | 1,796 | $ | 170 | ||||||||
Schedule of Presentation in Balance Sheets for Deferred Taxes | Presentation in balance sheets: | |||||||||||
December 31, | ||||||||||||
2 0 1 4 | 2 0 1 3 | |||||||||||
Current deferred income tax | $ | 142 | $ | 137 | ||||||||
Other long term assets | 1,654 | 33 | ||||||||||
$ | 1,796 | $ | 170 | |||||||||
Schedule of Israel and International components of income profit before taxes | ||||||||||||
Year ended December 31, | ||||||||||||
2 0 1 4 | 2 0 1 3 | 2 0 1 2 | ||||||||||
Israel | $ | 16,648 | $ | 11,788 | $ | 11,425 | ||||||
International | 826 | 1,238 | 527 | |||||||||
$ | 17,474 | $ | 13,026 | $ | 11,952 | |||||||
Reconciliation of Theoretical and Actual Tax Expense | The following is a reconciliation of the theoretical tax expense, assuming that all income is taxed at the ordinary statutory average corporate tax rate in Israel and the actual tax expense in the statement of operations, is as follows: | |||||||||||
Year ended December 31, | ||||||||||||
2 0 1 4 | 2 0 1 3 | 2 0 1 2 | ||||||||||
Net income before taxes | $ | 17,474 | $ | 13,026 | $ | 11,952 | ||||||
Statutory tax expenses | 4,631 | 3,256 | 2,988 | |||||||||
Effect of Approved Enterprise status | (8,639 | ) | - | - | ||||||||
Permanent differences, including difference between the basis of measurement of income reported for tax purposes and the basis of measurement of income for financial reporting purposes - net | 776 | 218 | 46 | |||||||||
Different tax rates of deferred taxes | 1,839 | (1,344 | ) | 1,901 | ||||||||
Deferred taxes on carryforward tax losses for which valuation allowance was provided | (39 | ) | - | - | ||||||||
Effect of foreign operations taxed at various rates | (31 | ) | 96 | - | ||||||||
Adjustments for previous years tax | - | 261 | - | |||||||||
Reinstate advances paid to tax authorities | - | - | (747 | ) | ||||||||
Change in valuation allowance | 42 | - | (4,080 | ) | ||||||||
Other | 243 | 24 | 16 | |||||||||
(5,809 | ) | (745 | ) | (2,864 | ) | |||||||
Actual tax expense (benefit) | $ | (1,178 | ) | $ | 2,511 | $ | 124 | |||||
Schedule of Uncertain Tax Positions | The following table summarizes the changes in uncertain tax positions: | |||||||||||
As of December 31, | ||||||||||||
2 0 1 4 | 2 0 1 3 | |||||||||||
Balance at the beginning of the year | $ | 451 | $ | 255 | ||||||||
Increase (decrease) related to prior year tax positions, net | (36 | ) | 24 | |||||||||
Increase related to current year tax positions | 236 | 172 | ||||||||||
Balance at the end of the year | $ | 651 | $ | 451 | ||||||||
GEOGRAPHIC_AREAS_AND_MAJOR_CUS1
GEOGRAPHIC AREAS AND MAJOR CUSTOMERS (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
GEOGRAPHIC AREAS AND MAJOR CUSTOMERS [Abstract] | ||||||
Sales by Geographic Area as Percentage of Total Sales | Sales by geographic area (as percentage of total sales): | |||||
Year ended December 31, | ||||||
2 0 1 4 | 2 0 1 3 | 2 0 1 2 | ||||
% | % | % | ||||
Taiwan, R.O.C. | 45 | 52 | 52 | |||
USA | 26 | 15 | 23 | |||
Korea | 11 | 6 | 9 | |||
Singapore | 3 | 5 | 6 | |||
China | 4 | 6 | 3 | |||
Europe | 9 | 13 | 6 | |||
Other | 2 | 3 | 1 | |||
Total | 100 | 100 | 100 | |||
Sales by Major Customers as Percentage of Total Sales | Sales by major customers (as percentage of total sales): | |||||
Year ended December 31, | ||||||
2 0 1 4 | 2 0 1 3 | 2 0 1 2 | ||||
% | % | % | ||||
Customer A | 4 | 4 | 7 | |||
Customer B | 4 | 4 | 10 | |||
Customer C | 36 | 44 | 41 | |||
Customer D | 1 | 1 | 5 | |||
Customer E | 9 | 5 | 6 | |||
Customer F | 21 | 14 | 11 | |||
Others | 25 | 28 | 20 | |||
Total | 100 | 100 | 100 | |||
FINANCIAL_INSTRUMENTS_Tables
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
FINANCIAL INSTRUMENTS [Abstract] | ||||||||||||||
Fair Value of Derivative Contracts | The fair value of derivative contracts as of December 31, 2014 and December 31, 2013 was as follows: | |||||||||||||
Derivative Assets Reported in Other | Derivative Liabilities Reported in Other | |||||||||||||
Current Assets | Current Liabilities | |||||||||||||
December 31, | December 31, | |||||||||||||
2 0 1 4 | 2 0 1 3 | 2 0 1 4 | 2 0 1 3 | |||||||||||
Derivatives designated as hedging instruments in cash flow hedge | $ | - | $ | 541 | $ | 1,177 | $ | - | ||||||
Balance of Derivative Instruments and Impact on Accumulated Other Comprehensive Income | The following table represents the balance of derivative instruments as of December 31, 2014 and 2013, and their impact on accumulated other comprehensive income (“OCI”) for the year ended December 31, 2014: | |||||||||||||
Balance at December 31,2013 | $ | 541 | ||||||||||||
Amount of loss recognized in OCI | (1,844) | |||||||||||||
Amount of loss reclassified from OCI to income | 126 | |||||||||||||
Balance at December 31,2014 | $ | (1,177) | ||||||||||||
Impact of Derivative Instruments on Total Operating Expenses | The impact of derivative instrument on total operating expenses in the year ended December 31, 2014, 2013 and 2012 was: | |||||||||||||
Year ended December 31, | ||||||||||||||
2 0 1 4 | 2 0 1 3 | 2 0 1 2 | ||||||||||||
Gain (loss) on derivative instruments | $ | (126) | $ | 1,181 | $ | -116 | ||||||||
SIGNIFICANT_ACCOUNTING_POLICIE3
SIGNIFICANT ACCOUNTING POLICIES (Narrative)(Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||
Uncertain tax position, likelihood of being sustained, threshold for recognition | 50.00% | ||
Dilutive securities excluded from diluted earnings per share | 526,381 | 939,366 | 824,664 |
SIGNIFICANT_ACCOUNTING_POLICIE4
SIGNIFICANT ACCOUNTING POLICIES (Estimated Useful Lives of Fixed Assets)(Details) | 12 Months Ended |
Dec. 31, 2014 | |
Electronic equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Electronic equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 7 years |
Office furniture and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 7 years |
Office furniture and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 15 years |
SIGNIFICANT_ACCOUNTING_POLICIE5
SIGNIFICANT ACCOUNTING POLICIES (Weighted-Average Assumptions Used in Determinig Fair Market Value of Options)(Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||
Risk-free interest rate | 1.61% | 1.35% | 0.66% |
Expected life of options | 4 years 9 months | 4 years 9 months | 4 years 9 months |
Expected volatility | 45.29% | 68.13% | 87.86% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
INVENTORIES [Abstract] | |||
Raw materials | $3,148 | $2,032 | |
Work in process | 7,656 | 8,797 | |
Finished goods | 5,303 | 7,289 | |
Inventories | 16,107 | 18,118 | |
Write-offs | $1,554 | $1,824 | $1,399 |
FIXED_ASSETS_NET_Details
FIXED ASSETS, NET (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Cost | $27,430 | $22,866 |
Accumulated depreciation amortization | 15,980 | 12,484 |
Net book value | 11,450 | 10,382 |
Electronic equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 21,716 | 18,193 |
Accumulated depreciation amortization | 13,244 | 10,424 |
Office furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 1,159 | 1,126 |
Accumulated depreciation amortization | 882 | 829 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 4,555 | 3,547 |
Accumulated depreciation amortization | $1,854 | $1,231 |
OTHER_CURRENT_LIABILITIES_Sche
OTHER CURRENT LIABILITIES (Schedule of Other Current Liabilities)(Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
OTHER CURRENT LIABILITIES [Abstract] | |||
Accrued salaries and fringe benefits | $6,905 | $6,659 | |
Accrued warranty costs (See B below) | 2,356 | 2,402 | 1,994 |
Governmental institutions | 1,431 | 1,783 | |
Other | 1,914 | 604 | |
Other current liabilities | $12,606 | $11,448 |
OTHER_CURRENT_LIABILITIES_Chan
OTHER CURRENT LIABILITIES (Changes in the Product Warranty Accrual)(Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
OTHER CURRENT LIABILITIES [Abstract] | ||
Balance as of beginning of year | $2,402 | $1,994 |
Services provided under warranty | -2,428 | -2,086 |
Changes in provision | 2,382 | 2,494 |
Balance as of end of year | $2,356 | $2,402 |
LIABILITY_FOR_EMPLOYEE_SEVERAN1
LIABILITY FOR EMPLOYEE SEVERANCE PAY, NET (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
LIABILITY FOR EMPLOYEE SEVERANCE PAY, NET [Abstract] | |||
Severance-pay expenses | $6 | $63 | $73 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Narrative)(Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
COMMITMENTS AND CONTINGENCIES [Abstract] | |||
Aggregate research and development participation | $22,940 | ||
Participation rate | 60.00% | ||
Royalty expense | 1,019 | 787 | 609 |
Contingent liability | $22,605 | $21,441 | |
Minimum [Member] | |||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Royalty rates | 3.00% | ||
Maximum [Member] | |||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Royalty rates | 3.50% | ||
Royalties payable, percent of grants received | 100.00% |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Minimum Rental Payments Under Operating Lease Agreements)(Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
COMMITMENTS AND CONTINGENCIES [Abstract] | |||
2015 | $1,361 | ||
2016 | 1,305 | ||
2017 - 2020 | 4,794 | ||
Rental expense | $1,594 | $1,344 | $1,388 |
SHAREHOLDERS_EQUITY_NarrativeD
SHAREHOLDERS' EQUITY (Narrative)(Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 24, 2014 | |
SHAREHOLDERS' EQUITY [Abstract] | ||||
Share repurchase program, to be executed by the first half of 2015 | $12,000,000 | |||
Ordinary share repurchased, shares | 639,831 | |||
Ordinary share repurchased | 6,726,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average fair value of options granted | $4.31 | $4.93 | $5.32 | |
RSU [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Vesting percentage | 25.00% | |||
Unrecognized compensation cost related to unvested restricted shares | 619,000 | |||
Unrecognized compensation cost, recognition period | 4 years | |||
RSUs issued | 451,647 | 406,940 | 346,619 | |
RSUs vested | 343,718 | 320,973 | 236,224 | |
RSUs cancelled | 9,609 | 5,442 | 3,425 | |
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Unrecognized compensation cost related to non-vested employee options | $1,877,000 | |||
Unrecognized compensation cost, recognition period | 4 years | |||
Maximum [Member] | Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options term | 10 years |
SHAREHOLDERS_EQUITY_Effects_of
SHAREHOLDERS' EQUITY (Effects of Stock-Based Compensation in the Statements of Operations)(Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation | $2,124 | $2,095 | $1,927 |
Products [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation | 375 | 310 | 305 |
Services [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation | 178 | 140 | 106 |
Research and Development expenses [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation | 870 | 881 | 923 |
Sales and Marketing expenses [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation | 446 | 576 | 497 |
General and Administration expenses [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation | $255 | $188 | $96 |
SHAREHOLDERS_EQUITY_Status_of_
SHAREHOLDERS' EQUITY (Status of the Company's Share Option Plans)(Details) (USD $) | 12 Months Ended | 260 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | |
Share options | ||||
Outstanding - beginning of year | 1,707,702 | 1,844,347 | 1,575,814 | |
Options granted | 392,879 | 383,537 | 452,494 | 10,734,967 |
Options exercised | 473,616 | 513,896 | 131,922 | 4,821,679 |
Cancelled | 92,323 | 6,286 | 52,039 | 4,378,646 |
Outstanding - year end | 1,534,642 | 1,707,702 | 1,844,347 | 1,534,642 |
Options exercisable at year-end | 644,685 | 738,915 | 867,134 | 644,685 |
Weighted average exercise price | ||||
Outstanding - beginning of year | $7.48 | $5.75 | $4.84 | |
Granted | $10.77 | $8.87 | $7.98 | |
Exercised | $5.48 | $2.34 | $2.03 | |
Cancelled | $8.09 | $5.73 | $7.10 | |
Outstanding - year end | $8.90 | $7.48 | $5.75 | $8.90 |
Options exercisable at year-end | $8.11 | $6.35 | $3.86 | $8.11 |
SHAREHOLDERS_EQUITY_Informatio
SHAREHOLDERS' EQUITY (Information About Share Options Outstanding)(Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number outstanding, Outstanding | 1,534,642 |
Number exercisable, Exercisable | 644,685 |
0.93-1.25 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Prices, minimum | $0.93 |
Exercise Prices, maximum | $1.25 |
Number outstanding, Outstanding | 19,983 |
Weighted average remaining contractual life (in years), Outstanding | 4 years 4 months 13 days |
Weighted average exercise price, Outstanding | $1.23 |
Number exercisable, Exercisable | 19,983 |
Weighted average exercise price, Exercisable | $1.23 |
4.20-6.70 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Prices, minimum | $4.20 |
Exercise Prices, maximum | $6.70 |
Number outstanding, Outstanding | 79,298 |
Weighted average remaining contractual life (in years), Outstanding | 4 years 9 months 18 days |
Weighted average exercise price, Outstanding | $5.96 |
Number exercisable, Exercisable | 70,531 |
Weighted average exercise price, Exercisable | $5.89 |
7.40-7.91 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Prices, minimum | $7.40 |
Exercise Prices, maximum | $7.91 |
Number outstanding, Outstanding | 288,577 |
Weighted average remaining contractual life (in years), Outstanding | 4 years 7 months 17 days |
Weighted average exercise price, Outstanding | $7.81 |
Number exercisable, Exercisable | 163,166 |
Weighted average exercise price, Exercisable | $7.80 |
8.38-8.89 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Prices, minimum | $8.38 |
Exercise Prices, maximum | $8.89 |
Number outstanding, Outstanding | 609,882 |
Weighted average remaining contractual life (in years), Outstanding | 4 years 9 months 22 days |
Weighted average exercise price, Outstanding | $8.61 |
Number exercisable, Exercisable | 296,413 |
Weighted average exercise price, Exercisable | $8.51 |
9.04-9.58 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Prices, minimum | $9.04 |
Exercise Prices, maximum | $9.58 |
Number outstanding, Outstanding | 62,989 |
Weighted average remaining contractual life (in years), Outstanding | 5 years 1 month 24 days |
Weighted average exercise price, Outstanding | $9.07 |
Number exercisable, Exercisable | 15,429 |
Weighted average exercise price, Exercisable | $9.07 |
10.08-11.67 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Prices, minimum | $10.08 |
Exercise Prices, maximum | $11.67 |
Number outstanding, Outstanding | 473,913 |
Weighted average remaining contractual life (in years), Outstanding | 5 years 11 months 8 days |
Weighted average exercise price, Outstanding | $10.73 |
Number exercisable, Exercisable | 79,163 |
Weighted average exercise price, Exercisable | $10.80 |
INCOME_TAXES_NarrativeDetails
INCOME TAXES (Narrative)(Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Required income from exports, percent | 25.00% | ||
Withholding tax rate | 15.00% | ||
Corporate tax rate | 26.50% | 25.00% | 25.00% |
Minimum [Member] | |||
Corporate tax on income if approved enterprise status earnings are distributed | 10.00% | ||
Tax rate on dividend distributed generated from preferred income | 15.00% | ||
Maximum [Member] | |||
Corporate tax on income if approved enterprise status earnings are distributed | 25.00% | ||
Tax rate on dividend distributed generated from preferred income | 20.00% | ||
Law for the Encouragement of Capital Investments Investment First Plan [Member] | |||
Period of full tax exemption | 4 years | ||
Tax rate after full exemption period | 25.00% | ||
Post exemption period | 3 years | ||
Law for the Encouragement of Capital Investments Investment Plan Second and Third Plans [Member] | |||
Period of full tax exemption | 2 years | ||
Tax rate after full exemption period | 25.00% | ||
Post exemption period | 5 years | ||
Preferred Area A [Member] | |||
Withholding tax rate | 15.00% | ||
Tax rate applicable to approved industrial enterprise, 2015 and after | 6.00% | ||
Required percentage of export of company' s total turnover | 25.00% | ||
Tax rate applicable to approved industrial enterprise, 2011-2012 | 10.00% | ||
Tax rate applicable to approved industrial enterprise, 2013-2014 | 7.00% | ||
Outside Preferred Area A [Member] | |||
Withholding tax rate | 15.00% | ||
Tax rate applicable to approved industrial enterprise, 2015 and after | 12.00% | ||
Required percentage of export of company' s total turnover | 25.00% | ||
Tax rate applicable to approved industrial enterprise, 2011-2012 | 15.00% | ||
Tax rate applicable to approved industrial enterprise, 2013-2014 | 12.50% | ||
Development area A [Member] | |||
Tax rate applicable to approved industrial enterprise, 2015 and after | 6.00% | ||
Tax rate applicable to approved industrial enterprise, 2013-2014 | 7.00% | ||
Corporate tax rate | 9.00% | ||
Outside development area A [Member] | |||
Tax rate applicable to approved industrial enterprise, 2015 and after | 12.00% | ||
Tax rate applicable to approved industrial enterprise, 2013-2014 | 12.50% | ||
Corporate tax rate | 16.00% |
INCOME_TAXES_Significant_Compo
INCOME TAXES (Significant Components of Deferred Tax Assets)(Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
INCOME TAXES [Abstract] | ||||
Israel net operating loss carry-forwards | [1] | $19 | [1] | |
Temporary differences relating to reserve and allowances | 1,796 | 151 | ||
Net deferred tax asset | $1,796 | $170 | ||
[1] | Deferred taxes were calculated based on effective tax rates. |
INCOME_TAXES_Schedule_of_Balan
INCOME TAXES (Schedule of Balance Sheet Presentation of Deferred Taxes) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
INCOME TAXES [Abstract] | ||
Current deferred income tax | $142 | $137 |
Other long term assets | 1,654 | 33 |
Net deferred tax asset | $1,796 | $170 |
INCOME_TAXES_Schedule_of_Israe
INCOME TAXES (Schedule of Israel and International components of income profit before taxes) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Income Before Income Tax Domestic and Foreign [Line Items] | |||
Net income before taxes | $17,474 | $13,026 | $11,952 |
Israel [Member] | |||
Schedule of Income Before Income Tax Domestic and Foreign [Line Items] | |||
Net income before taxes | 16,648 | 11,788 | 11,425 |
International [Member] | |||
Schedule of Income Before Income Tax Domestic and Foreign [Line Items] | |||
Net income before taxes | $826 | $1,238 | $527 |
INCOME_TAXES_Reconciliation_of
INCOME TAXES (Reconciliation of the Theoretical and Actual Tax Expense)(Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
INCOME TAXES [Abstract] | |||
Net income before taxes | $17,474 | $13,026 | $11,952 |
Statutory tax expenses | 4,631 | 3,256 | 2,988 |
Effect of Approved Enterprise status | -8,639 | ||
Permanent differences, including difference between the basis of measurement of income reported for tax purposes and the basis of measurement of income for financial reporting purposes - net | 776 | 218 | 46 |
Different tax rates of deferred taxes | 1,839 | -1,344 | 1,901 |
Deferred taxes on carryforward tax losses for which valuation allowance was provided | -39 | ||
Effect of foreign operations taxed at various rates | -31 | 96 | |
Adjustments for previous years tax | 261 | ||
Reinstate advances paid to tax authorities | -747 | ||
Change in valuation allowance | 42 | -4,080 | |
Other | 243 | 24 | 16 |
Total reconciling items | -5,809 | -745 | -2,864 |
Actual tax expense (benefit) | ($1,178) | $2,511 | $124 |
INCOME_TAXES_Schedule_of_Unrec
INCOME TAXES (Schedule of Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
INCOME TAXES [Abstract] | ||
Balance at the beginning of the year | $451 | $255 |
Increase (decrease) related to prior year tax positions, net | -36 | 24 |
Increase related to current year tax positions | 236 | 172 |
Balance at the end of the year | $651 | $451 |
GEOGRAPHIC_AREAS_AND_MAJOR_CUS2
GEOGRAPHIC AREAS AND MAJOR CUSTOMERS (Sales by Geographic Area as Percentage of Total Sales)(Details) (Sales [Member]) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Revenue from External Customer [Line Items] | |||
Sales by geographic area (as percentage of total sales) | 100.00% | 100.00% | 100.00% |
Taiwan, R.O.C. [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales by geographic area (as percentage of total sales) | 45.00% | 52.00% | 52.00% |
USA [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales by geographic area (as percentage of total sales) | 26.00% | 15.00% | 23.00% |
Korea [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales by geographic area (as percentage of total sales) | 11.00% | 6.00% | 9.00% |
Singapore [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales by geographic area (as percentage of total sales) | 3.00% | 5.00% | 6.00% |
China [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales by geographic area (as percentage of total sales) | 4.00% | 6.00% | 3.00% |
Europe [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales by geographic area (as percentage of total sales) | 9.00% | 13.00% | 6.00% |
Other [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales by geographic area (as percentage of total sales) | 2.00% | 3.00% | 1.00% |
GEOGRAPHIC_AREAS_AND_MAJOR_CUS3
GEOGRAPHIC AREAS AND MAJOR CUSTOMERS (Sales by Major Customers as Percentage of Total Sales)(Details) (Sales [Member]) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Revenue, Major Customer [Line Items] | |||
Sales by major customers (as percentage of total sales) | 100.00% | 100.00% | 100.00% |
Customer A [Member] | |||
Revenue, Major Customer [Line Items] | |||
Sales by major customers (as percentage of total sales) | 4.00% | 4.00% | 7.00% |
Customer B [Member] | |||
Revenue, Major Customer [Line Items] | |||
Sales by major customers (as percentage of total sales) | 4.00% | 4.00% | 10.00% |
Customer C [Member] | |||
Revenue, Major Customer [Line Items] | |||
Sales by major customers (as percentage of total sales) | 36.00% | 44.00% | 41.00% |
Customer D [Member] | |||
Revenue, Major Customer [Line Items] | |||
Sales by major customers (as percentage of total sales) | 1.00% | 1.00% | 5.00% |
Customer E [Member] | |||
Revenue, Major Customer [Line Items] | |||
Sales by major customers (as percentage of total sales) | 9.00% | 5.00% | 6.00% |
Customer F [Member] | |||
Revenue, Major Customer [Line Items] | |||
Sales by major customers (as percentage of total sales) | 21.00% | 14.00% | 11.00% |
Others [Member] | |||
Revenue, Major Customer [Line Items] | |||
Sales by major customers (as percentage of total sales) | 25.00% | 28.00% | 20.00% |
TRANSACTIONS_AND_BALANCES_WITH1
TRANSACTIONS AND BALANCES WITH RELATED PARTIES (Details) (USD $) | 12 Months Ended | 260 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
Related Party Transaction [Line Items] | ||||
Options granted | 392,879 | 383,537 | 452,494 | 10,734,967 |
Directors [Member] | ||||
Related Party Transaction [Line Items] | ||||
Directors' fees | 247 | 208 | 204 | |
Options granted | 135,000 |
FINANCIAL_INSTRUMENTS_Narrativ
FINANCIAL INSTRUMENTS (Narrative) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
FINANCIAL INSTRUMENTS [Abstract] | ||
Notional amount of the hedging instruments | $59,475 | $16,612 |
FINANCIAL_INSTRUMENTS_Fair_Val
FINANCIAL INSTRUMENTS (Fair Value of Derivative Contracts)(Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivative Assets Reported in Other Current Assets [Member] | ||
Derivative [Line Items] | ||
Derivatives designated as hedging instruments in cash flow hedge | $541 | |
Derivative Liabilities Reported in Other Current Liabilities [Member] | ||
Derivative [Line Items] | ||
Derivatives designated as hedging instruments in cash flow hedge | $1,177 |
FINANCIAL_INSTRUMENTS_Balance_
FINANCIAL INSTRUMENTS (Balance of Derivative Instruments and Impact on Accumulated Other Comprehensive Income)(Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
FINANCIAL INSTRUMENTS [Abstract] | |
Balance at December 31, 2013 | $541 |
Amount of loss recognized in OCI | -1,844 |
Amount of loss reclassified from OCI to income | 126 |
Balance at December 31, 2014 | ($1,177) |
FINANCIAL_INSTRUMENTS_Impact_o
FINANCIAL INSTRUMENTS (Impact of Derivative Instruments on Total Operating Expenses)(Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
FINANCIAL INSTRUMENTS [Abstract] | |||
Gain (loss) on derivative instruments | ($126) | $1,181 | ($116) |