Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document and Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2018 |
Entity Registrant Name | NOVA MEASURING INSTRUMENTS LTD |
Entity Central Index Key | 1,109,345 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | FY |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 27,917,505 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Voluntary Filer | No |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 22,877 | $ 27,697 |
Short-term interest-bearing bank deposits | 152,951 | 121,390 |
Trade accounts receivable, net of allowance for doubtful accounts of $94 and $94 at December 31, 2018 and 2017, respectively | 53,531 | 40,949 |
Inventories (Note 3) | 41,786 | 34,921 |
Other current assets | 10,432 | 6,951 |
Total current assets | 281,577 | 231,908 |
Non-Current assets | ||
Long-term interest-bearing bank deposits | 2,000 | 750 |
Deferred tax assets (Note 10) | 3,873 | 1,957 |
Other long-term assets | 529 | 362 |
Severance pay funds (Note 7) | 1,394 | 1,503 |
Property and equipment, net (Note 4) | 13,756 | 13,891 |
Intangible assets, net (Note 5) | 10,187 | 12,800 |
Goodwill (Note 5) | 20,114 | 20,114 |
Total non-current assets | 51,853 | 51,377 |
TOTAL ASSETS | 333,430 | 283,285 |
Current liabilities | ||
Trade accounts payable | 19,015 | 15,754 |
Deferred revenues | 3,984 | 10,334 |
Other current liabilities (Note 6) | 25,079 | 26,038 |
Total current liabilities | 48,078 | 52,126 |
Non-Current liabilities | ||
Accrued severance pay (Note 7) | 2,254 | 2,590 |
Other long-term liability | 2,358 | 1,833 |
Total non-current liabilities | 4,612 | 4,423 |
Commitments and contingencies (Note 8) | ||
TOTAL LIABILITIES | 52,690 | 56,549 |
SHAREHOLDERS' EQUITY (Note 9) | ||
Ordinary shares, NIS 0.01 par value - Authorized 40,000,000 shares at December 31, 2018 and 2017; Issued and Outstanding 27,917,505, and 27,898,304 at December 31, 2018 and 2017, respectively | 74 | 74 |
Additional paid-in capital | 122,312 | 122,426 |
Accumulated other comprehensive income (loss) | (188) | 112 |
Retained earnings | 158,542 | 104,124 |
Total shareholders' equity | 280,740 | 226,736 |
Total liabilities and shareholders' equity | $ 333,430 | $ 283,285 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Thousands | Dec. 31, 2018USD ($)shares | Dec. 31, 2018₪ / shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2017₪ / shares |
Statement of Financial Position [Abstract] | ||||
Trade accounts receivable, allowance for doubtful accounts | $ | $ 94 | $ 94 | ||
Ordinary shares, par value per share | ₪ / shares | ₪ 0.01 | ₪ 0.01 | ||
Ordinary shares, shares authorized | 40,000,000 | 40,000,000 | ||
Ordinary shares, shares issued | 27,917,505 | 27,898,304 | ||
Ordinary shares, shares outstanding | 27,917,505 | 27,898,304 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues: | |||
Total revenues | $ 251,134 | $ 221,992 | $ 163,903 |
Cost of revenues: | |||
Expense related to royalty buyout agreement with the Israel Innovation Authority (Note 8) | 12,875 | ||
Total cost of revenues | 105,900 | 90,805 | 88,623 |
Gross profit | 145,234 | 131,187 | 75,280 |
Operating expenses: | |||
Research and development expenses, net (Note 2m) | 45,451 | 38,956 | 34,998 |
Sales and marketing expenses | 28,847 | 24,554 | 21,523 |
General and administrative expenses | 8,735 | 8,100 | 6,835 |
Amortization of intangible assets (Note 5) | 1,759 | 1,758 | 1,758 |
Total operating expenses | 84,792 | 73,368 | 65,114 |
Operating income | 60,442 | 57,819 | 10,166 |
Financing income, net | 2,984 | 2,276 | 1,216 |
Income before tax on income | 63,426 | 60,095 | 11,382 |
Income tax expenses | 9,051 | 13,636 | 1,738 |
Net income for the year | $ 54,375 | $ 46,459 | $ 9,644 |
Earnings per share: | |||
Basic | $ 1.94 | $ 1.68 | $ 0.35 |
Diluted | $ 1.89 | $ 1.63 | $ 0.35 |
Shares used in calculation of earnings per share: | |||
Basic | 28,022,486 | 27,695,723 | 27,174,850 |
Diluted | 28,765,329 | 28,524,259 | 27,503,497 |
Product [Member] | |||
Revenues: | |||
Total revenues | $ 193,298 | $ 174,343 | $ 122,439 |
Cost of revenues: | |||
Total cost of revenues | 71,706 | 62,242 | 50,386 |
Service [Member] | |||
Revenues: | |||
Total revenues | 57,836 | 47,649 | 41,464 |
Cost of revenues: | |||
Total cost of revenues | $ 34,194 | $ 28,563 | $ 25,362 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income for the year | $ 54,375 | $ 46,459 | $ 9,644 |
Other comprehensive income (loss) ("OCI") (Note 13) related to: | |||
Unrealized gain (loss) from cash flow hedges | (489) | 863 | 114 |
Less: reclassification adjustment for net gain (loss) included in net income (loss) | 189 | (701) | (50) |
Other comprehensive income (loss) | (300) | 162 | 64 |
Total comprehensive income for the year | $ 54,075 | $ 46,621 | $ 9,708 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Ordinary Shares [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Total | |||
Balance at Dec. 31, 2015 | $ 73 | $ 112,949 | $ (114) | $ 48,152 | $ 161,060 | |||
Balance, shares at Dec. 31, 2015 | 27,093,937 | 27,093,937 | ||||||
Cumulative effect to share based compensation from adoption of a new accounting standard | 131 | (131) | ||||||
Issuance of shares in connection with employee share-based plans | $ 1 | 2,151 | $ 2,151 | |||||
Issuance of shares in connection with employee share-based plans, shares | 268,022 | 268,022 | ||||||
Issuance of shares upon exercise of options | [1] | [1] | [1] | |||||
Issuance of shares upon exercise of options, shares | 70,472 | |||||||
Share based compensation | 2,735 | 2,735 | ||||||
Share repurchase | [1] | (937) | (937) | |||||
Share repurchase, shares | (81,000) | |||||||
Other comprehensive income | 64 | 64 | ||||||
Net income for the year | 9,644 | 9,644 | ||||||
Balance at Dec. 31, 2016 | $ 74 | 117,028 | (50) | 57,665 | $ 174,717 | |||
Balance, shares at Dec. 31, 2016 | 27,351,431 | 27,351,431 | ||||||
Issuance of shares in connection with employee share-based plans | [1] | 2,619 | $ 2,619 | |||||
Issuance of shares in connection with employee share-based plans, shares | 457,810 | 458,801 | ||||||
Issuance of shares upon exercise of options | [1] | [1] | ||||||
Issuance of shares upon exercise of options, shares | 89,063 | |||||||
Share based compensation | 2,779 | $ 2,779 | ||||||
Other comprehensive income | 162 | 162 | ||||||
Net income for the year | 46,459 | 46,459 | ||||||
Balance at Dec. 31, 2017 | $ 74 | 122,426 | 112 | 104,124 | $ 226,736 | |||
Balance, shares at Dec. 31, 2017 | 27,898,304 | 27,898,304 | ||||||
Issuance of shares in connection with employee share-based plans | [1] | 361 | $ 361 | |||||
Issuance of shares in connection with employee share-based plans, shares | 99,285 | 117,185 | ||||||
Issuance of shares upon exercise of options | [1] | [1] | ||||||
Issuance of shares upon exercise of options, shares | 119,916 | |||||||
Share based compensation | 4,326 | $ 4,326 | ||||||
Share repurchase | [1] | (4,801) | (4,801) | |||||
Share repurchase, shares | (200,000) | |||||||
Cumulative effect from adoption of a new accounting standard - ASC 606 (Note 2l) | 43 | 43 | ||||||
Other comprehensive income | (300) | (300) | ||||||
Net income for the year | 54,375 | 54,375 | ||||||
Balance at Dec. 31, 2018 | $ 74 | $ 122,312 | $ (188) | $ 158,542 | $ 280,740 | |||
Balance, shares at Dec. 31, 2018 | 27,917,505 | 27,917,505 | ||||||
[1] | Less than $1 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income for the year | $ 54,375 | $ 46,459 | $ 9,644 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation | 5,071 | 3,618 | 4,049 |
Amortization of acquired intangible assets | 2,613 | 2,561 | 2,545 |
Loss related to equipment | 222 | ||
Share-based compensation | 4,326 | 2,779 | 2,735 |
Change in deferred tax assets, net | (1,916) | (31) | 633 |
Increase (decrease) in accrued severance pay, net | (227) | 94 | 38 |
Decrease (increase) in trade accounts receivables, net | (12,539) | 1,677 | (23,580) |
Increase in inventories | (8,123) | (6,858) | (1,670) |
Increase in other current and long-term assets | (3,648) | (2,245) | (2,180) |
Increase (decrease) in trade accounts payables | 3,261 | (747) | 2,123 |
Increase (decrease) in other current and long-term liabilities | (734) | 8,242 | 3,037 |
Increase (decrease) in short term deferred revenues | (6,350) | 6,262 | (1,756) |
Net cash provided by (used in) operating activities | 36,109 | 61,811 | (4,160) |
Cash flows from investment activities: | |||
Increase in short-term interest-bearing bank deposits | (31,561) | (50,844) | (1,248) |
Additions to property and equipment | (3,678) | (6,295) | (3,133) |
Net cash used in investing activities | (35,239) | (57,139) | (4,381) |
Cash flows from financing activities: | |||
Purchases of treasury shares | (4,801) | (937) | |
Shares issued under employee share-based plans | 361 | 2,619 | 2,151 |
Net cash provided by (used in) financing activities | (4,440) | 2,619 | 1,214 |
Increase (decrease) in cash and cash equivalents and restricted cash | (3,570) | 7,291 | (7,327) |
Cash, cash equivalents and restricted cash - beginning of year | 28,447 | 21,156 | 28,483 |
Cash and cash equivalents and restricted cash - end of year | 24,877 | 28,447 | 21,156 |
Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheet | |||
Cash and cash equivalents | 22,877 | 27,697 | 20,406 |
Restricted cash included in Long-term interest-bearing bank deposits | 2,000 | 750 | 750 |
Total cash, cash equivalents, and restricted cash | 28,447 | 21,156 | 28,483 |
Supplemental disclosure of cash flow information: | |||
Cash paid during the year for income taxes | $ 13,048 | $ 8,158 | $ 1,902 |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL | NOTE 1 - Business Description: Nova Measuring Instruments Ltd. (”Nova” or the “Parent Company”) was incorporated and commenced operations in 1993 in the design, development and production of process control systems, used in the manufacturing of semiconductors. Nova has wholly owned subsidiaries in the United States of America (the “U.S.”), Japan, Taiwan, Korea and Germany (together defined as the “Company”). 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. On April 2, 2015, the Company completed the acquisition of 100% shares of ReVera Inc. (hereinafter – ReVera) a privately-held U.S. company. On December 31, 2017, ReVera, merged into Nova Measuring Instruments, Inc. 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. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - 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: A. Principles of Consolidation and Basis of Presentation The Company’s consolidated financial statements include the financial statements of the Parent Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. 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. The Company's management evaluates its estimates on an ongoing basis, including those related to, but not limited to income taxes and tax uncertainties, collectability of accounts receivable, inventory accruals, fair value and useful lives of intangible assets, and revenue recognition. These estimates are based on management's knowledge about current events and expectations about actions the Company may undertake in the future. 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 re-measured into dollars in accordance with the principles set forth in ASC 830, “Foreign Currency Translation”. All transaction gains and losses of the re-measured monetary balance sheet items are reflected in the statements of operations as financial income or expenses, as appropriate. D. Cash and Cash Equivalents, and restricted cash Cash and cash equivalents represent short-term highly liquid investments (mainly interest-bearing deposits) with maturity dates not exceeding three months from the date of deposit. Certain restricted cash balances are presented within long-term interest-bearing bank deposits on the consolidated balance sheets based upon the term of the remaining restrictions. The restricted cash balance is related to lease obligations. E. Short Term Bank Deposit Short term bank deposits consist of bank deposits with original maturities of more than three months and up to twelve months. F. Allowance for Doubtful Accounts Trade accounts receivables are stated at realizable value, net of an allowance for doubtful accounts. The Company evaluates its outstanding accounts receivable and establishes an allowance for doubtful accounts according to specific identification basis, based on information available on the relevant customer credit condition, current aging, historical experience and based on Company policy. These allowances are re-evaluated and adjusted periodically as additional information is available. G. Business Combination The Company accounts for business combination in accordance with ASC No, 805, “Business Combination” (ASC 805). ASC 805 requires recognition of assets acquired and liabilities assumed at the acquisition date, measured at their fair values as of that date. Any access of the fair value of net assets acquired over purchased price and any subsequent changes in estimated contingencies are to be recorded in the consolidated statements of operations. H. Inventories Inventories are stated at the lower of cost or net realizable value. Inventory write-downs are provided to cover risks arising from slow-moving items, technological obsolescence, excess inventories, discontinued products, and for market prices lower than cost, if any. The Company periodically evaluates the quantities on hand relative to historical and projected sales volume (which is determined based on an assumption of future demand and market conditions) and the age of the inventory. At the point of the loss recognition, a new lower cost basis for that inventory is established. Any adjustments to reduce the cost of inventories to their net realizable value are recognized in earnings in the current period. Inventory includes costs of products delivered to customers and not recognized as cost of sales, where revenues in the related arrangements were not recognized. Cost is determined as follows: · Raw materials – based on the moving average cost method. · Finished goods and work in process – based on actual production cost basis (materials, labor and indirect manufacturing costs). I. Property and Equipment Property and equipment are presented at cost, net of accumulated depreciation. Annual depreciation is calculated based on the straight-line method over the estimated useful lives of the related assets. Estimated useful life, in years, is as follows: Years Electronic equipment 3-7 Office furniture and equipment 7-17 Leasehold improvements Over the shorter of the term of the lease or the useful life of the asset Depreciation methods, useful lives and residual values are reviewed at the end each reporting year and adjusted if appropriate. J. Goodwill and Intangible Assets Goodwill and other purchased intangible assets have been recorded as a result of the acquisition of ReVera. Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired, and related liabilities. Goodwill is not amortized, but rather is subject to an impairment test, in accordance with ASC 350, “Intangibles – Goodwill and Other”, at least annually (in the fourth quarter), or more frequently if events or changes in circumstances indicate that the carrying value may be impaired. The Company has an option to perform a qualitative assessment to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying value prior to performing the quantitative goodwill impairment test. The Company operates in one operating segment, and this segment comprises its only reporting unit. Following the adoption of ASU 2017-04, "Simplifying the Test for Goodwill Impairment", any excess of the carrying value of the reporting unit over its fair value is recognized as an impairment loss, and the carrying value of goodwill is written down to the fair value of the reporting unit. Intangible assets with finite life (refer to note 2T for impairment assessment of Intangible assets with finite life) are amortized over their useful lives using a method that reflects the pattern in which the economic benefits of the intangible assets are consumed or otherwise used, or, if that pattern cannot be reliably determined, using a straight-line amortization method. Weighted Average Useful Life (Years) Technology 7 Customer relationships 10 Backlog 1 IPR&D (*) (*) To be determined upon successful launch of the related product, subject to annual impairment assessment. IPR&D is tested for impairment annually or more frequently when indicators of impairment exist. The Company first assesses qualitative factors to determine if it is more likely than not that the IPR&D is impaired and whether it is necessary to perform a quantitative impairment test. The qualitative assessment considers various factors, including changes in demand, the abandonment of the IPR&D or significant economic slowdowns in the semiconductor industry and macroeconomic environment. If adverse qualitative trends are identified that could negatively impact the fair value of the asset, then quantitative impairment test is performed to compare the carrying value of the asset to its undiscounted expected future cash flows. If this test indicates that there is impairment, the impaired asset is written down to fair value, which is typically calculated using discounted expected future cash flows utilizing an appropriate discount rate. No impairment losses have been identified during 2016, 2017 and 2018 relating to goodwill and IPR&D. K. Accrued Warranty Costs Accrued warranty costs are calculated with respect to the warranty period on the Company’s products and are based on the Company’s prior experience and in accordance with management’s estimate. The estimated future warranty obligations are affected by the warranty periods, install base, labor and other related costs incurred in correcting a product failure. L. Revenue Recognition Adoption of ASC 606 Effective January 1, 2018, the Company adopted ASU No. 2014-9, “Revenue from Contracts with Customers” and the related amendments (“ASC 606”) which supersedes ASC 605, "Revenue Recognition", using the modified retrospective method. ASC 606 was applied to all uncompleted contracts as of January 1, 2018, by recognizing the cumulative effect of initially applying ASC 606 as an adjustment to the opening balance of retained earnings at January 1, 2018 and a reduction of $43 in the deferred revenues balance. As part of its assessment process, the Company identified a change in the timing of revenue recognition associated with certain transactions in which recognition was previously subject to final acceptance from the customer. Following the adoption of ASC 606, the associated revenues are recognized upon delivery. The Company applied the practical expedient for incremental costs of obtaining contracts, in which the associated asset would have been amortized over up to one year. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period have not been adjusted and continue to be reported in accordance with ASC 605 guidance. As of December 31, 2018, the balance sheet changes attributable to ASC 606 related to accounts receivable and deferred revenue were not materially different than the impact upon adoption. In addition, the application of ASC 606 did not have a material impact to either the Company's revenues, cost of sales or its operating expenses during 2018. Revenue Recognition Policy The Company enters into revenue arrangements that include products and services which are generally distinct and accounted for as separate performance obligations. The Company determines whether arrangements are distinct based on whether the customer can benefit from the product or service on its own or together with other resources that are readily available and whether the Company's commitment to transfer the product or service to the customer is separately identifiable from other obligations in the contract. The company derives revenue from sales of advanced process control systems, spare parts, labor hours (mainly related to installation) and service contracts. Revenues derived from sales of advanced process control systems, spare parts and labor hour are recognized at a point in time, when control of the promised goods or services is transferred to the customers, upon fulfillment of the contractual terms (typically upon shipment of the systems and spare parts or when the service is completed for labor hours). Revenues derived from service contracts, are recognized ratably over time in accordance with the term of the contract since the Company has a stand-ready obligation to provide the service. Such contracts generally include a fixed fee. Revenues from sales which were not yet determined to be final sales due to certain acceptance provisions are deferred. Significant Judgments - Contracts with Multiple Performance Obligations Contracts with customers may include multiple performance obligations. For such arrangements, the Company allocates revenue to each performance obligation based on its relative Standalone Selling Price (“SSP”). Judgment is required to determine the SSP for each distinct performance obligation. The Company uses a range of amounts to estimate SSP when it sells each of the products and services separately and needs to determine whether there is a discount to be allocated based on the relative SSP of the various products and services. Remaining Performance Obligations Remaining performance obligations (RPOs) represent contracted revenues that had not yet been recognized and include deferred revenues and invoices that have been issued to customers but were uncollected and have not been recognized as revenues. As of December 31, 2018, the aggregate amount of the RPOs was $7,983 comprised of $3,985 deferred revenues and $3,998 of uncollected amounts that were not recognized yet as revenues. The Company expects the RPO to be recognized as revenues over the next year. Contract Balances Contract balances are presented separately on the consolidated balance sheets. Revenues recognized during 2018 from amounts included within the deferred revenues balance at the beginning of the period amounted to $21,639. The Company’s general payment terms are less than 1 year; therefore, the company doesn’t record any financing components. For more disaggregated information of revenues refer to Note 11. M. Research and Development Research and development costs are charged to operations as incurred. Amounts received or receivable from the Government of Israel through the Israeli Innovation Authority (“IIA”, formerly known as the Office of the Chief Scientist) or from the European Community 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 revenues. During 2016 the Company entered into a royalty buyout agreement with the Israel Innovation Authority (“IIA”). Refer to note 8A for further details. Research and development grants recognized during the years ended December 31, 2018, 2017 and 2016 were $5,763, $4,634 and $4,261 respectively. N. 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. ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, requires a reporting entity to classify all deferred tax assets and liabilities as noncurrent in a classified balance sheet. O. 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. Share 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 8 2 0 1 7 2 0 1 6 Risk-free interest rate 2.79% 1.81% 1.08% Expected life of options 4.76 years 4.70 years 4.62 years Expected volatility 31.82% 28.01% 28.41% Expected dividend yield 0% 0% 0% Expected volatility was calculated based on actual historical share price movements over a term that is equivalent to the expected term of granted options. The expected term of options granted is based on historical experience and represents the period of time that options granted are expected to be outstanding. The risk-free interest rate is based on the yield from U.S. treasury bonds with an equivalent term. The Company has historically not paid dividends and has no foreseeable plans to pay dividends. The Company elected to early adopt ASU-2016-19 starting January 1, 2016 and to account for forfeitures as they occur. The net cumulative effect of this change, in a total amount of $131 thousands, was recognized as a reduction to retained earnings as of January 1, 2016. P. 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 of out of the money options amounted to 446,301 in 2018, 275,594 in 2017 and 1,134,971 in 2016. Basic earnings per share in 2018, 2017 and 2016 were $1.94, $1.68 and $0.35 respectively. Diluted earnings per share in 2018, 2017 and 2016 were $1.89, $1.63 and $0.35 respectively. Q. Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, bank deposits, trade receivables and foreign currency derivative contracts. The majority of the Company’s cash and cash equivalents and bank deposits are invested in dollar instruments with major banks in Israel. Management believes that the financial institutions that hold the Company's investments are corporations with high credit standing. Accordingly, management believes that low credit risk exists with respect to these financial investments. The trade receivables of the Company are derived from sales to customers located primarily in , and USA. The management of the Company performed risk assessment on an ongoing basis and believes it bears low risk. The Company entered into options and forward contracts to hedge against the risk of overall changes in future cash flow from payments of payroll and related expenses as well as other expenses denominated in NIS. The derivative instruments hedge a portion of the Company's non-dollar currency exposure. Counterparty to the Company’s derivative instruments is major financial institution. R. 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 Company follows the provisions of ASC No. 820, “Fair Value Measurement” (“ASC 820”), which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining a fair value, the Company uses various valuation approaches. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing an asset or liability, based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect assumptions that market participants would use in pricing an asset or liability, based on the best information available under given circumstances. The hierarchy is broken down into three levels, based on the observability of inputs and assumptions, as follows: Level 1 Level 2 Level 3 The estimated fair values of the derivative instruments are determined based on market rates to settle the instruments. 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 options contracts also includes implied volatility, which is specific to individual options and is based on rates quoted from a widely used third-party resource. S. 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 (as part of the financing income, net, in the consolidated statement of operations) during the period of change. See Note 13 for disclosure of the derivative financial instruments in accordance with such pronouncements. T. Impairment of Long-Lived Assets Long-lived assets (tangible and intangible assets with finite life), 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 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. The Company performed an impairment review and did not identify any indicators for impairment as of each of 2018, 2017 and 2016. U. New Accounting Pronouncements Recently adopted In November 2016, the FASB issued Accounting Standards Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (ASU 2016-18), which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this Update are effective for public entities for fiscal years beginning after December 15, 2017. The Company adopted the ASU in 2018. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment. Under the new standard, goodwill impairment would be measured as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying value of goodwill. This ASU eliminates existing guidance that requires an entity to determine goodwill impairment by calculating the implied fair value of goodwill by hypothetically assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. The guidance is effective for fiscal years beginning after December 15, 2019 with early adoption permitted. The Company has early adopted the new guidance on January 1, 2018. The adoption of the new guidance did not have any impact on the Company's consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, derivatives and hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, amendments to hedge accounting guidance. These amendments are intended to better align a Company’s risk management strategies and financial reporting for hedging relationships. Under the new guidance, more hedging strategies will be eligible for hedge accounting and the application of hedge accounting is simplified. In addition, the new guidance amends presentation and disclosure requirements. The guidance is effective for fiscal years beginning after December 15, 2018 with early adoption permitted. The guidance requires the use of a modified retrospective approach. The Company early adopted the new guidance on January 1, 2018. The adoption of the ASU did not have any impact on the Company's consolidated financial statements. Recently Issued In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), as amended, which generally requires lessees to recognize operating and financing lease liabilities and corresponding right-of-use assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. The Company elected to apply the new standard effective January 1, 2019 on a modified retrospective basis and will not restate comparative periods. The Company intends to elect the package of practical expedients permitted under the transition guidance, which allows it to carry forward our historical lease classification, its assessment on whether a contract is or contains a lease, and its initial direct costs for any leases that exist prior to adoption of the new standard. The Company will also elect to combine lease and non-lease components. The Company expects an amount of approximately $29,161 would be recognized as total right-of-use assets and total lease liabilities on its consolidated balance sheet as of January 1, 2019. The Company implemented internal controls and key system functionality to enable the preparation of financial information on adoption. In January 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses on Financial Instruments”, which requires that expected credit losses relating to financial assets measured on an amortized cost basis and available for sale debt securities be recorded through an allowance for credit losses. ASU 2016-13 limits the amount of credit losses to be recognized for available for sale debt securities to the amount by which carrying value exceeds fair value and also requires the reversal of previously recognized credit losses if fair value increases. The new standard will be effective for interim and annual periods beginning after January 1, 2020, and early adoption is permitted. The Company is currently evaluating the potential impact of adoption of the ASU on its consolidated financial statements. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 3 - A. Composition: As of December 31, 2 0 1 8 2 0 1 7 Raw materials $ 11,166 $ 10,634 Work in process 18,736 15,507 Finished goods 11,884 8,780 $ 41,786 $ 34,921 B. In the years ended December 31, 2018, 2017 and 2016, the Company wrote-off inventories in a total amount of $3,413, $ and $ , respectively. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 4 - As of December 31, 2 0 1 8 2 0 1 7 Cost: Electronic equipment $ 33,160 $ 29,793 Office furniture and equipment 1,557 1,980 Leasehold improvements 11,340 10,947 $ 46,057 $ 42,720 Accumulated depreciation: Electronic equipment 25,259 22,740 Office furniture and equipment 1,237 1,428 Leasehold improvements 5,805 4,661 32,301 28,829 Net book value $ 13,756 $ 13,891 Depreciation expenses amounted to $5,071, $3,618 and $4,049 for the years ended December 31, 2018, 2017 and 2016, respectively. |
GOODWILL AND INTENGABLE ASSETS
GOODWILL AND INTENGABLE ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTENGABLE ASSETS | NOTE 5 - GOODWILL AND INTENGABLE ASSETS Goodwill and Intangible assets originated from the acquisition of ReVera Inc. ("ReVera") on April 2, 2015. The following is a summary of intangible assets as of December 31, 2018 and 2017: As of December 31, 2 0 1 8 2 0 1 7 Original amount: Technology $ 12,305 $ 12,305 Customer relationships 5,191 5,191 Backlog 3,506 3,506 IPR&D 1,927 1,927 22,929 22,929 Accumulated amortization: Technology 6,592 4,834 Customer relationships 2,644 1,789 Backlog 3,506 3,506 IPR&D - - 12,742 10,129 Net book value $ 10,187 $ 12,800 Annual amortization expenses (excluding IPR&D ) are expected as follows: Year ending December 31, 2019 $ 2,625 2020 2,503 2021 2,297 2022 736 2023 84 Thereafter 15 $ 8,260 . |
OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
OTHER CURRENT LIABILITIES | NOTE 6 - A. Consists of: As of December 31, 2 0 1 8 2 0 1 7 Accrued salaries and fringe benefits $ 14,008 $ 13,522 Accrued warranty costs (See B below) 5,622 5,055 Governmental institutions 4,417 7,215 Other 1,032 246 $ 25,079 $ 26,038 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, 2018 and 2017: As of December 31, 2 0 1 8 2 0 1 7 Balance as of beginning of year $ 5,055 $ 4,358 Services provided under warranty (6,428 ) (6,189 ) Changes in provision 6,995 6,886 Balance as of end of year $ 5,622 $ 5,055 |
LIABILITY FOR EMPLOYEE SEVERANC
LIABILITY FOR EMPLOYEE SEVERANCE PAY, NET | 12 Months Ended |
Dec. 31, 2018 | |
Postemployment Benefits [Abstract] | |
LIABILITY FOR EMPLOYEE SEVERANCE PAY, NET | NOTE 7 - 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. The deposited funds include profits accumulated up to the balance sheet date. The deposited funds may be withdrawn only upon the fulfillment of the obligation pursuant to Israel's Severance Pay Law, 1963 or labor agreements. Since July 2008, the Company's agreements with new Israeli employees are under Section 14 of the Israeli Severance Pay Law, 1963. The Company's contributions for severance pay have replaced its severance obligation. Upon contribution of the full amount of the employee's monthly salary for each year of service, no additional calculations are conducted between the parties regarding the matter of severance pay and no additional payments are made by the Company to the employee. Severance pay expenses (income) for the years ended December 31, 2018, 2017 and 2016, amounted to $(161), $168 and $120, respectively (excluding the Company’s contributions to severance pay under section 14). |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 8 - A. In August 2016, the Company entered into a royalty buyout agreement ("the Agreement”) with the IIA. As part of the Agreement the Company paid $12,875 to the IIA in September 2016. The contingent net royalty liability to the IIA at the time of the settlement was $24,340. This obligation included different annual interest rates ranging up to 5%. As a result of this payment, the Company does not expect to pay royalty payments on the previous funds received from the IIA in the future. Royalty expense amounted to $13,511 ($12,875 related to the Agreement), in 2016. B. The Company rents its facilities under various operating lease agreements, which expire on various dates, the latest of which is in 2039 (including renewal options). The minimum rental payments are as follows: Year 2019 $ 3,135 2020 3,460 2021 3,436 2022 3,018 2023 3,004 Thereafter 32,489 Total $ 48,542 Rental expense for the facilities amounted to $2,431, $2,172 and $2,139 C. The Company is obligated under certain agreements with its suppliers to purchase specified items of inventory which are expected to be utilized during the years 2019-2021. As of December 31, 2018, non-cancelable purchase obligations were approximately $31,028. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 9 - 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 $12,000 shares repurchase program, which was executed in 2014, 2015 and 2016. Through December 31, 2016, the Company repurchased 1,084,778 ordinary shares for an aggregate amount of $11,965. The Company has completed the program in May 2016. On November 1, 2018, the Company announced $25,000 shares repurchase program, which is planned to be executed by the first half of 2020. Through December 31, 2018, the Company repurchased 200,000 ordinary shares for an aggregate amount of $4,801. All treasury shares have been canceled C. Equity Based Incentive Plans: The Company’s Board of directors approves, from time to time, equity-based incentive plans, the last of which was approved in August 2017. Equity based incentive plans include stock options, restricted share units and restricted stock awards to employees, officers and directors Shares Options The following table summarizes the effects of share-based compensation resulting from the application of ASC 718 included in the Statements of Operations as follows: Year ended December 31, 2 0 1 8 2 0 1 7 2 0 1 6 Cost of Revenues: Product 515 370 342 Service 414 269 218 Research and Development expenses 1,710 1,055 983 Sales and Marketing expenses 1,026 621 884 General and Administration expenses 661 464 308 Total $ 4,326 $ 2,779 $ 2,735 Share options vest over four years and their term may not exceed 10 years. During the period commencing January 1, 2016 and ending July 31, 2017, the exercise price of each option was the average market price of the underlying share during the period of 30 trade days preceding the date of each grant. Commencing August 1, 2017, the exercise price is the market price. The weighted average fair value (in dollars) of the options granted during 2018, 2017 and 2016, according to Black-Scholes option-pricing model, amounted to $8.37, $6.64 and $2.89 per option, respectively. Summary of the status of the Company’s share option plans as of December 31, 2018, as well as changes during the year then ended, is presented below: 2 0 1 8 Share Weighted Average Options Exercise Price Outstanding - beginning of year 1,417,191 14.02 Granted 371,419 26.22 Exercised 117,185 10.01 Expired and forfeited 141,352 14.25 Outstanding - year end 1,530,073 17.27 Options exercisable at year-end 728,065 12.71 The aggregate intrinsic value represents the total intrinsic value (the difference between the Company's closing share market price on the last trading day of the fiscal year and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on the last trading day of the fiscal year. This amount changes based on the fair market value of the Company's shares. The total intrinsic value of options outstanding as of December 31, 2018 and 2017 was $10,665 and $17,284, respectively. The total intrinsic value of options exercisable as of December 31, 2018 and 2017 was $7,679 and $8,254, respectively. The total intrinsic value of options exercised during the years 2018, 2017 and 2016 was $2,170, $5,170 and $1,342 respectively. The following table summarizes information about share options outstanding as of December 31, 2018: Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price (US dollars) (in years) (US dollars) (US dollars) 0.93-3.00 2,840 0.55 1.13 2,840 1.13 3.01-7.00 10,000 1.48 4.20 10,000 4.20 7.01-8.00 16,600 0.57 7.82 16,600 7.82 8.01-9.00 62,762 1.59 8.74 62,762 8.74 9.01-10.00 19,289 1.29 9.06 18,788 9.05 10.01-20.00 796,619 3.71 11.48 531,192 11.41 20.01-31.26 621,963 6.13 26.33 87,579 26.54 1,530,073 17.26 728,065 12.71 Unrecognized Compensation Expense As of December 31, 2018, there was $1,967 of total unrecognized compensation cost related to non-vested employee options and $2,359 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 such RSU grants is being recognized on a straight-line basis over the vesting period . are subject to certain performance criteria; accordingly, compensation expense is recognized for such awards when it becomes probable that the related performance condition will be satisfied. Number of RSUs Weighted average grant date fair value (USD) Unvested at January 1, 2018 292,475 17.71 Granted 173,362 24.8 Vested 99,285 Canceled 42,657 22.4 Unvested at December 31, 2018 323,895 The total intrinsic value of RSUs vested during the years 2018, 2017 and 2016 was $1,048, $989 and $927, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 10 - A. Income Tax Regulations (Rules on Bookkeeping by Foreign Invested Companies and Certain Partnerships and Determination of their Taxable Income), 1986: As a "Controlled Foreign Cooperation" (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 benefit period of the second and 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. 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 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. 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 increased effective January 1, 2014 from 15% to 20%. In 2016, most of the Company’s taxable income in Israel is attributable to Preferred Enterprises, with a related tax rate of 16%. In 2015 and 2014, most of the Company’s taxable income in Israel is attributable to Approved Enterprise programs with zero tax. C. The New Technological Enterprise Incentives Regime—Amendment 73 to the Investment Law In December 2016, the Economic Efficiency Law (Legislative Amendments for Applying the Economic Policy for the 2017 and 2018 Budget Years), 2016 which includes Amendment 73 to the Law for the Encouragement of Capital Investments ("the 2017 Amendment") was published. According to the 2017 Amendment, Technological preferred enterprise, as defined in the Law for the Encouragement of Capital Investments, 1959 ("the Encouragement Law"), with total consolidated revenues of less than NIS 10 billion, shall be subject to 12% tax rate on income deriving from intellectual property (in development area A - a tax rate of 7.5% Any dividends distributed deriving from income from the preferred technological enterprises will be subject to tax at a rate of 20%. The 2017 Amendment further provides that, in certain circumstances, a dividend distributed to a foreign corporate shareholder, would be subject to a 4% tax rate (if the percentage of foreign investors exceeds 90%). The Company assessed the criteria for qualifying to a “Preferred Technological Enterprise,” status and concluded that the Israeli entity is entitled to the above-mentioned benefits. The Company implemented the new incentives in its tax calculations starting 2017. D. The Tax Cuts and Jobs Act, 2017: On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (the “US Tax Act”) that instituted fundamental changes to the taxation of multinational corporations. The Tax Act includes significant changes to the U.S. corporate income tax system, including a Federal corporate rate reduction from 35% to 21%, limitations on the deductibility of interest expense and executive compensation, the transition of U.S. international taxation from a worldwide tax system to a territorial tax system, and foreign derived intangible income deduction. As of December 31, 2018, the Company completed its accounting of the tax effects of the US Tax Act and recorded a tax benefit of $1,534 in connection with Foreign-Derived Intangible Income. In addition, the Company recorded a tax benefit of approximately $837 due to the decrease in the Federal corporate tax rate from 35% to 21% for the year ended December 31, 2017. In December 2017, the Securities and Exchange Commission staff issued Staff Accounting Bulletin No. 118, which addresses how a company recognizes provisional estimates when a company does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete its accounting for the effect of the changes in the Tax Act. The measurement period ends when a company has obtained, prepared, and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year. The final impact of the Tax Act may differ from the above provisional estimates due to changes in interpretations of the Tax Act, any legislative action to address questions that arise because of Foreign-Derived Intangible Income The 2017 Tax Act provides tax incentives to U.S. companies to earn income from the sale, lease or license of goods and services abroad in the form of a deduction for foreign-derived intangible income (“FDII”). FDII is taxed at an effective rate of 13.1% for taxable years beginning after December 31, 2017 and at an effective rate of 16.4% for taxable years beginning after December 31, 2025. The accounting for the deduction for FDII is similar to a special deduction and should be accounted for based on the guidance in ASC 740-10-25-37. The tax benefits for special deductions ordinarily are recognized no earlier than the year in which they are deductible on a tax return. As of December 31, 2018, the Company has made sufficient progress in its calculations to reasonably estimate the effect on its estimated annual effective tax rate. Since a large portion of the US subsidiary sales are made to non-U.S. customers, this adjustment decreased the overall effective tax rate by 2.4 E. 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 deferred tax assets are as follows: As of December 31, 2 0 1 8 2 0 1 7 Net operating loss carryforwards $ 1,800 $ 2,042 Tax credits carryforward - *27 Temporary differences relating to reserve and allowances 4,234 2,602 Intangible assets (2,161 ) (2,714 ) 3,873 1,957 Valuation Allowance, net of uncertain tax positions - *- Deferred tax asset, net $ 3,873 $ 1,957 *Reclassified The Company's U.S. subsidiaries have carry-forward tax losses of approximately $4,937 to offset against future U.S. federal taxable income. Israel: As of December 31, 2 0 1 8 2 0 1 7 Long-term deferred tax assets $ 2,998 $ 1,444 $ 2,998 $ 1,444 International: As of December 31, 2 0 1 8 2 0 1 7 Long-term deferred tax assets $ 875 $ 5,338 $ 875 $ 5,338 Under ASC 740-10, deferred tax assets are to be recognized for the anticipated tax benefits associated with net operating loss and tax credits 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. F. Israel and International Components of Income before Taxes: Year ended December 31, 2 0 1 8 2 0 1 7 2 0 1 6 Israel $ 41,013 $ 51,558 $ 14,021 International (mainly US) 19,129 8,537 (2,639 ) $ 60,142 $ 60,095 $ 11,382 G. Israel and International Components of Income Taxes: Year ended December 31, 2 0 1 8 2 0 1 7 2 0 1 6 Israel $ 5,767 $ 12,043 $ 2,615 International (mainly US) 3,284 1,593 (877 ) $ 9,051 $ 13,636 $ 1,738 Current $ 10,793 $ 13,584 $ 1,105 Deferred (1,742 ) 52 633 $ 9,051 $ 13,636 $ 1,738 H . 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 8 2 0 1 7 2 0 1 6 Net income before taxes $ 63,426 $ 60,095 $ 11,382 Statutory tax expenses 8,100 7,674 1,821 Effect of non-benefited income New Technological or Approved or Preferred Enterprises statuses in Israel 172 181 136 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 578 1,451 588 Different tax rates of deferred taxes - (226 ) (104 ) Effect of foreign operations taxed at various rates 2,034 1,888 (657 ) Foreign Derived Intangible Income benefit (1,534 ) - - Tax credits 30 (1,650 ) Adjustments for previous years tax (369 ) 4,174 (135 ) Other 40 144 *89 951 5,962 (83 ) Actual tax expense (benefit) $ 9,051 $ 13,636 $ 1,738 I. Effective Tax Rates: The Company’s effective tax rates differ from the statutory rates applicable to the Company for tax year 2018 and 2017 due primarily to effect of New Technological Enterprise status and U.S. Tax Cuts and Jobs Act of 2017 and in 2016 Preferred Enterprise status. J. Tax Assessments: In 2017 the Company has received final tax assessments for the years 2012-2015 from the Israeli Tax Authorities. The net effect of the tax assessment in the amount of $3,553 is included in the Company’s statement of operations, as well as $355 of interest related to this assessment. The US subsidiary has final tax assessments through tax year 2013. The other subsidiaries received final tax assessments through tax years 2012 until 2016. K. Undistributed earnings of foreign subsidiaries: The Company considers the earnings of certain subsidiaries to be indefinitely invested outside Israel on the basis of estimates that future domestic cash generation will be sufficient to meet future domestic cash needs and the Company’s specific plans for reinvestment of those subsidiary earnings. The Company has not recorded a deferred tax liability of approximately $6,812 related to the Israel income taxes of undistributed earnings of foreign subsidiaries indefinitely invested outside Israel. Should the Company decide to repatriate the foreign earnings, the Company would need to adjust the Company’s income tax provision in the period The Company determined that the earnings will no longer be indefinitely invested outside Israel. L. 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. In addition, the Company classifies interest and penalties recognized in the financial statements relating to uncertain tax position under the income taxes line item. 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 8 2 0 1 7 Balance at the beginning of the year 1,707 $ 1,333 Decrease related to settlements with tax authorities, net - (1,142 ) Decrease related to prior year tax positions, net (164 ) - Increase related to current year tax positions 684 1,516 Balance at the end of the year $ 2,227 $ 1,707 M. Income from Other Sources in Israel: Income not eligible for benefits under the New Technological Enterprise Laws mentioned in ”D” above are taxed at the corporate tax rate of 23% in 2018, 24% in 2017 and 25% in 2016. |
GEOGRAPHIC AREAS AND MAJOR CUST
GEOGRAPHIC AREAS AND MAJOR CUSTOMERS | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
GEOGRAPHIC AREAS AND MAJOR CUSTOMERS | NOTE 11 - GEOGRAPHIC AREAS AND MAJOR CUSTOMERS A. Sales by Geographic Area (as Percentage of Total Sales): Year ended December 31, 2 0 1 8 2 0 1 7 2 0 1 6 % % % Taiwan, R.O.C. 31 31 45 USA 18 17 9 Korea 21 28 16 China 18 16 19 Other 12 8 11 Total 100 100 100 B. Sales by Major Customers (as Percentage of Total Sales): Year ended December 31, 2 0 1 8 2 0 1 7 2 0 1 6 % % % Customer A 20 23 34 Customer B 19 22 11 Customer C 14 14 11 Customer D 9 8 11 Customer E 5 8 10 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, 2018 | |
Related Party Transactions [Abstract] | |
TRANSACTIONS AND BALANCES WITH RELATED PARTIES | NOTE 12 - TRANSACTIONS AND BALANCES WITH RELATED PARTIES The total directors’ fees (including the chairman of the Board) for the year 2018 amounted to $354 (2017 - $350, 2016 - $267). The number of share options granted to directors in 2018 amounted to 138,000. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Investments, All Other Investments [Abstract] | |
FINANCIAL INSTRUMENTS | NOTE 13 - 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 mainly 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, 2018 and December 31, 2017 were $21,093, and $14,315 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, 2018 and December 31, 2017 was as follows: Derivative Assets Reported in Other Current Assets Derivative Liabilities Reported in Other Current Liabilities December 31, December 31, 2 0 1 8 2 0 1 7 2 0 1 8 2 0 1 7 Derivatives designated as hedging instruments in cash flow hedge $ - $ 138 $ 320 $ - The impact of derivative instrument on total operating expenses in the year ended December 31, 2018, 2017 and 2016 was: Year ended December 31, 2 0 1 8 2 0 1 7 2 0 1 6 Loss (gain) on derivative instruments $ (189 ) $ 701 $ 50 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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 Parent Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. |
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. The Company's management evaluates its estimates on an ongoing basis, including those related to, but not limited to income taxes and tax uncertainties, collectability of accounts receivable, inventory accruals, fair value and useful lives of intangible assets, and revenue recognition. These estimates are based on management's knowledge about current events and expectations about actions the Company may undertake in the future. 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 re-measured into dollars in accordance with the principles set forth in ASC 830, “Foreign Currency Translation”. All transaction gains and losses of the re-measured monetary balance sheet items are reflected in the statements of operations as financial income or expenses, as appropriate. |
Cash and Cash Equivalents, and restricted cash | D. Cash and Cash Equivalents, and restricted cash Cash and cash equivalents represent short-term highly liquid investments (mainly interest-bearing deposits) with maturity dates not exceeding three months from the date of deposit. Certain restricted cash balances are presented within long-term interest-bearing bank deposits on the consolidated balance sheets based upon the term of the remaining restrictions. The restricted cash balance is related to lease obligations. |
Short Term Bank Deposit | E. Short Term Bank Deposit Short term bank deposits consist of bank deposits with original maturities of more than three months and up to twelve months. |
Allowance for Doubtful Accounts | F. Allowance for Doubtful Accounts Trade accounts receivables are stated at realizable value, net of an allowance for doubtful accounts. The Company evaluates its outstanding accounts receivable and establishes an allowance for doubtful accounts according to specific identification basis, based on information available on the relevant customer credit condition, current aging, historical experience and based on Company policy. These allowances are re-evaluated and adjusted periodically as additional information is available. |
Business Combination | G. Business Combination The Company accounts for business combination in accordance with ASC No, 805, “Business Combination” (ASC 805). ASC 805 requires recognition of assets acquired and liabilities assumed at the acquisition date, measured at their fair values as of that date. Any access of the fair value of net assets acquired over purchased price and any subsequent changes in estimated contingencies are to be recorded in the consolidated statements of operations. |
Inventories | H. Inventories Inventories are stated at the lower of cost or net realizable value. Inventory write-downs are provided to cover risks arising from slow-moving items, technological obsolescence, excess inventories, discontinued products, and for market prices lower than cost, if any. The Company periodically evaluates the quantities on hand relative to historical and projected sales volume (which is determined based on an assumption of future demand and market conditions) and the age of the inventory. At the point of the loss recognition, a new lower cost basis for that inventory is established. Any adjustments to reduce the cost of inventories to their net realizable value are recognized in earnings in the current period. Inventory includes costs of products delivered to customers and not recognized as cost of sales, where revenues in the related arrangements were not recognized. Cost is determined as follows: · Raw materials – based on the moving average cost method. · Finished goods and work in process – based on actual production cost basis (materials, labor and indirect manufacturing costs). |
Property and Equipment | I. Property and Equipment Property and equipment are presented at cost, net of accumulated depreciation. Annual depreciation is calculated based on the straight-line method over the estimated useful lives of the related assets. Estimated useful life, in years, is as follows: Years Electronic equipment 3-7 Office furniture and equipment 7-17 Leasehold improvements Over the shorter of the term of the lease or the useful life of the asset Depreciation methods, useful lives and residual values are reviewed at the end each reporting year and adjusted if appropriate. |
Goodwill and Intangible Assets | J. Goodwill and Intangible Assets Goodwill and other purchased intangible assets have been recorded as a result of the acquisition of ReVera. Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired, and related liabilities. Goodwill is not amortized, but rather is subject to an impairment test, in accordance with ASC 350, “Intangibles – Goodwill and Other”, at least annually (in the fourth quarter), or more frequently if events or changes in circumstances indicate that the carrying value may be impaired. The Company has an option to perform a qualitative assessment to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying value prior to performing the quantitative goodwill impairment test. The Company operates in one operating segment, and this segment comprises its only reporting unit. Following the adoption of ASU 2017-04, "Simplifying the Test for Goodwill Impairment", any excess of the carrying value of the reporting unit over its fair value is recognized as an impairment loss, and the carrying value of goodwill is written down to the fair value of the reporting unit. Intangible assets with finite life (refer to note 2T for impairment assessment of Intangible assets with finite life) are amortized over their useful lives using a method that reflects the pattern in which the economic benefits of the intangible assets are consumed or otherwise used, or, if that pattern cannot be reliably determined, using a straight-line amortization method. Weighted Average Useful Life (Years) Technology 7 Customer relationships 10 Backlog 1 IPR&D (*) (*) To be determined upon successful launch of the related product, subject to annual impairment assessment. IPR&D is tested for impairment annually or more frequently when indicators of impairment exist. The Company first assesses qualitative factors to determine if it is more likely than not that the IPR&D is impaired and whether it is necessary to perform a quantitative impairment test. The qualitative assessment considers various factors, including changes in demand, the abandonment of the IPR&D or significant economic slowdowns in the semiconductor industry and macroeconomic environment. If adverse qualitative trends are identified that could negatively impact the fair value of the asset, then quantitative impairment test is performed to compare the carrying value of the asset to its undiscounted expected future cash flows. If this test indicates that there is impairment, the impaired asset is written down to fair value, which is typically calculated using discounted expected future cash flows utilizing an appropriate discount rate. No impairment losses have been identified during 2016, 2017 and 2018 relating to goodwill and IPR&D. |
Accrued Warranty Costs | K. Accrued Warranty Costs Accrued warranty costs are calculated with respect to the warranty period on the Company’s products and are based on the Company’s prior experience and in accordance with management’s estimate. The estimated future warranty obligations are affected by the warranty periods, install base, labor and other related costs incurred in correcting a product failure. |
Revenue Recognition | L. Revenue Recognition Adoption of ASC 606 Effective January 1, 2018, the Company adopted ASU No. 2014-9, “Revenue from Contracts with Customers” and the related amendments (“ASC 606”) which supersedes ASC 605, "Revenue Recognition", using the modified retrospective method. ASC 606 was applied to all uncompleted contracts as of January 1, 2018, by recognizing the cumulative effect of initially applying ASC 606 as an adjustment to the opening balance of retained earnings at January 1, 2018 and a reduction of $43 in the deferred revenues balance. As part of its assessment process, the Company identified a change in the timing of revenue recognition associated with certain transactions in which recognition was previously subject to final acceptance from the customer. Following the adoption of ASC 606, the associated revenues are recognized upon delivery. The Company applied the practical expedient for incremental costs of obtaining contracts, in which the associated asset would have been amortized over up to one year. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period have not been adjusted and continue to be reported in accordance with ASC 605 guidance. As of December 31, 2018, the balance sheet changes attributable to ASC 606 related to accounts receivable and deferred revenue were not materially different than the impact upon adoption. In addition, the application of ASC 606 did not have a material impact to either the Company's revenues, cost of sales or its operating expenses during 2018. Revenue Recognition Policy The Company enters into revenue arrangements that include products and services which are generally distinct and accounted for as separate performance obligations. The Company determines whether arrangements are distinct based on whether the customer can benefit from the product or service on its own or together with other resources that are readily available and whether the Company's commitment to transfer the product or service to the customer is separately identifiable from other obligations in the contract. The company derives revenue from sales of advanced process control systems, spare parts, labor hours (mainly related to installation) and service contracts. Revenues derived from sales of advanced process control systems, spare parts and labor hour are recognized at a point in time, when control of the promised goods or services is transferred to the customers, upon fulfillment of the contractual terms (typically upon shipment of the systems and spare parts or when the service is completed for labor hours). Revenues derived from service contracts, are recognized ratably over time in accordance with the term of the contract since the Company has a stand-ready obligation to provide the service. Such contracts generally include a fixed fee. Revenues from sales which were not yet determined to be final sales due to certain acceptance provisions are deferred. Significant Judgments - Contracts with Multiple Performance Obligations Contracts with customers may include multiple performance obligations. For such arrangements, the Company allocates revenue to each performance obligation based on its relative Standalone Selling Price (“SSP”). Judgment is required to determine the SSP for each distinct performance obligation. The Company uses a range of amounts to estimate SSP when it sells each of the products and services separately and needs to determine whether there is a discount to be allocated based on the relative SSP of the various products and services. Remaining Performance Obligations Remaining performance obligations (RPOs) represent contracted revenues that had not yet been recognized and include deferred revenues and invoices that have been issued to customers but were uncollected and have not been recognized as revenues. As of December 31, 2018, the aggregate amount of the RPOs was $7,983 comprised of $3,985 deferred revenues and $3,998 of uncollected amounts that were not recognized yet as revenues. The Company expects the RPO to be recognized as revenues over the next year. Contract Balances Contract balances are presented separately on the consolidated balance sheets. Revenues recognized during 2018 from amounts included within the deferred revenues balance at the beginning of the period amounted to $21,639. The Company’s general payment terms are less than 1 year; therefore, the company doesn’t record any financing components. For more disaggregated information of revenues refer to Note 11. |
Research and Development | M. Research and Development Research and development costs are charged to operations as incurred. Amounts received or receivable from the Government of Israel through the Israeli Innovation Authority (“IIA”, formerly known as the Office of the Chief Scientist) or from the European Community 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 revenues. During 2016 the Company entered into a royalty buyout agreement with the Israel Innovation Authority (“IIA”). Refer to note 8A for further details. Research and development grants recognized during the years ended December 31, 2018, 2017 and 2016 were $5,763, $4,634 and $4,261 respectively. |
Income Taxes | N. 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. ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, requires a reporting entity to classify all deferred tax assets and liabilities as noncurrent in a classified balance sheet. |
Share-Based Compensation | O. 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. Share 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 8 2 0 1 7 2 0 1 6 Risk-free interest rate 2.79% 1.81% 1.08% Expected life of options 4.76 years 4.70 years 4.62 years Expected volatility 31.82% 28.01% 28.41% Expected dividend yield 0% 0% 0% Expected volatility was calculated based on actual historical share price movements over a term that is equivalent to the expected term of granted options. The expected term of options granted is based on historical experience and represents the period of time that options granted are expected to be outstanding. The risk-free interest rate is based on the yield from U.S. treasury bonds with an equivalent term. The Company has historically not paid dividends and has no foreseeable plans to pay dividends. The Company elected to early adopt ASU-2016-19 starting January 1, 2016 and to account for forfeitures as they occur. The net cumulative effect of this change, in a total amount of $131 thousands, was recognized as a reduction to retained earnings as of January 1, 2016. |
Earnings per Share | P. 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 of out of the money options amounted to 446,301 in 2018, 275,594 in 2017 and 1,134,971 in 2016. Basic earnings per share in 2018, 2017 and 2016 were $1.94, $1.68 and $0.35 respectively. Diluted earnings per share in 2018, 2017 and 2016 were $1.89, $1.63 and $0.35 respectively. |
Concentrations of Credit Risk | Q. Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, bank deposits, trade receivables and foreign currency derivative contracts. The majority of the Company’s cash and cash equivalents and bank deposits are invested in dollar instruments with major banks in Israel. Management believes that the financial institutions that hold the Company's investments are corporations with high credit standing. Accordingly, management believes that low credit risk exists with respect to these financial investments. The trade receivables of the Company are derived from sales to customers located primarily in , and USA. The management of the Company performed risk assessment on an ongoing basis and believes it bears low risk. The Company entered into options and forward contracts to hedge against the risk of overall changes in future cash flow from payments of payroll and related expenses as well as other expenses denominated in NIS. The derivative instruments hedge a portion of the Company's non-dollar currency exposure. Counterparty to the Company’s derivative instruments is major financial institution. |
Fair Value Measurements | R. 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 Company follows the provisions of ASC No. 820, “Fair Value Measurement” (“ASC 820”), which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining a fair value, the Company uses various valuation approaches. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing an asset or liability, based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect assumptions that market participants would use in pricing an asset or liability, based on the best information available under given circumstances. The hierarchy is broken down into three levels, based on the observability of inputs and assumptions, as follows: Level 1 Level 2 Level 3 The estimated fair values of the derivative instruments are determined based on market rates to settle the instruments. 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 options 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 | S. 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 (as part of the financing income, net, in the consolidated statement of operations) during the period of change. See Note 13 for disclosure of the derivative financial instruments in accordance with such pronouncements. |
Impairment of Long-Lived Assets | T. Impairment of Long-Lived Assets Long-lived assets (tangible and intangible assets with finite life), 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 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. The Company performed an impairment review and did not identify any indicators for impairment as of each of 2018, 2017 and 2016. |
New Accounting Pronouncements | U. New Accounting Pronouncements Recently adopted In November 2016, the FASB issued Accounting Standards Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (ASU 2016-18), which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this Update are effective for public entities for fiscal years beginning after December 15, 2017. The Company adopted the ASU in 2018. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment. Under the new standard, goodwill impairment would be measured as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying value of goodwill. This ASU eliminates existing guidance that requires an entity to determine goodwill impairment by calculating the implied fair value of goodwill by hypothetically assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. The guidance is effective for fiscal years beginning after December 15, 2019 with early adoption permitted. The Company has early adopted the new guidance on January 1, 2018. The adoption of the new guidance did not have any impact on the Company's consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, derivatives and hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, amendments to hedge accounting guidance. These amendments are intended to better align a Company’s risk management strategies and financial reporting for hedging relationships. Under the new guidance, more hedging strategies will be eligible for hedge accounting and the application of hedge accounting is simplified. In addition, the new guidance amends presentation and disclosure requirements. The guidance is effective for fiscal years beginning after December 15, 2018 with early adoption permitted. The guidance requires the use of a modified retrospective approach. The Company early adopted the new guidance on January 1, 2018. The adoption of the ASU did not have any impact on the Company's consolidated financial statements. Recently Issued In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), as amended, which generally requires lessees to recognize operating and financing lease liabilities and corresponding right-of-use assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. The Company elected to apply the new standard effective January 1, 2019 on a modified retrospective basis and will not restate comparative periods. The Company intends to elect the package of practical expedients permitted under the transition guidance, which allows it to carry forward our historical lease classification, its assessment on whether a contract is or contains a lease, and its initial direct costs for any leases that exist prior to adoption of the new standard. The Company will also elect to combine lease and non-lease components. The Company expects an amount of approximately $29,161 would be recognized as total right-of-use assets and total lease liabilities on its consolidated balance sheet as of January 1, 2019. The Company implemented internal controls and key system functionality to enable the preparation of financial information on adoption. In January 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses on Financial Instruments”, which requires that expected credit losses relating to financial assets measured on an amortized cost basis and available for sale debt securities be recorded through an allowance for credit losses. ASU 2016-13 limits the amount of credit losses to be recognized for available for sale debt securities to the amount by which carrying value exceeds fair value and also requires the reversal of previously recognized credit losses if fair value increases. The new standard will be effective for interim and annual periods beginning after January 1, 2020, and early adoption is permitted. The Company is currently evaluating the potential impact of adoption of the ASU on its consolidated financial statements. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives of Fixed Assets | Property and equipment are presented at cost, net of accumulated depreciation. Annual depreciation is calculated based on the straight-line method over the estimated useful lives of the related assets. Estimated useful life, in years, is as follows: Years Electronic equipment 3-7 Office furniture and equipment 7-17 Leasehold improvements Over the shorter of the term of the lease or the useful life of the asset |
Schedule of estimated useful lives of the intangible assets | Intangible assets with finite life (refer to note 2T for impairment assessment of Intangible assets with finite life) are amortized over their useful lives using a method that reflects the pattern in which the economic benefits of the intangible assets are consumed or otherwise used, or, if that pattern cannot be reliably determined, using a straight-line amortization method. Weighted Average Useful Life (Years) Technology 7 Customer relationships 10 Backlog 1 IPR&D (*) (*) To be determined upon successful launch of the related product, subject to annual impairment assessment. |
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 8 2 0 1 7 2 0 1 6 Risk-free interest rate 2.79% 1.81% 1.08% Expected life of options 4.76 years 4.70 years 4.62 years Expected volatility 31.82% 28.01% 28.41% Expected dividend yield 0% 0% 0% |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | As of December 31, 2 0 1 8 2 0 1 7 Raw materials $ 11,166 $ 10,634 Work in process 18,736 15,507 Finished goods 11,884 8,780 $ 41,786 $ 34,921 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | As of December 31, 2 0 1 8 2 0 1 7 Cost: Electronic equipment $ 33,160 $ 29,793 Office furniture and equipment 1,557 1,980 Leasehold improvements 11,340 10,947 $ 46,057 $ 42,720 Accumulated depreciation: Electronic equipment 25,259 22,740 Office furniture and equipment 1,237 1,428 Leasehold improvements 5,805 4,661 32,301 28,829 Net book value $ 13,756 $ 13,891 |
GOODWILL AND INTENGABLE ASSETS
GOODWILL AND INTENGABLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Intangible Assets | Goodwill and Intangible assets originated from the acquisition of ReVera Inc ("ReVera") on April 2, 2015. The following is a summary of intangible assets as of December 31, 2018 and 2017: As of December 31, 2 0 1 8 2 0 1 7 Original amount: Technology $ 12,305 $ 12,305 Customer relationships 5,191 5,191 Backlog 3,506 3,506 IPR&D 1,927 1,927 22,929 22,929 Accumulated amortization: Technology 6,592 4,834 Customer relationships 2,644 1,789 Backlog 3,506 3,506 IPR&D - - 12,742 10,129 Net book value $ 10,187 $ 12,800 |
Schedule of Annual Amortization Expenses | Annual amortization expenses (excluding IPR&D ) are expected as follows: Year ending December 31, 2019 $ 2,625 2020 2,503 2021 2,297 2022 736 2023 84 Thereafter 15 $ 8,260 |
OTHER CURRENT LIABILITIES (Tabl
OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Other Current Liabilities | As of December 31, 2 0 1 8 2 0 1 7 Accrued salaries and fringe benefits $ 14,008 $ 13,522 Accrued warranty costs (See B below) 5,622 5,055 Governmental institutions 4,417 7,215 Other 1,032 246 $ 25,079 $ 26,038 |
Changes in the Product Warranty Accrual | The following table provides the changes in the product warranty accrual for the fiscal years ended December 31, 2018 and 2017: As of December 31, 2 0 1 8 2 0 1 7 Balance as of beginning of year $ 5,055 $ 4,358 Services provided under warranty (6,428 ) (6,189 ) Changes in provision 6,995 6,886 Balance as of end of year $ 5,622 $ 5,055 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Minimum Rental Payments Under Operating Lease Agreements | The minimum rental payments are as follows: Year 2019 $ 3,135 2020 3,460 2021 3,436 2022 3,018 2023 3,004 Thereafter 32,489 Total $ 48,542 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Effects of Stock-Based Compensation in the Statements of Operations | The following table summarizes the effects of share-based compensation resulting from the application of ASC 718 included in the Statements of Operations as follows: Year ended December 31, 2 0 1 8 2 0 1 7 2 0 1 6 Cost of Revenues: Product 515 370 342 Service 414 269 218 Research and Development expenses 1,710 1,055 983 Sales and Marketing expenses 1,026 621 884 General and Administration expenses 661 464 308 Total $ 4,326 $ 2,779 $ 2,735 |
Status of the Company's Share Option Plans | Summary of the status of the Company’s share option plans as of December 31, 2018, as well as changes during the year then ended, is presented below: 2 0 1 8 Share Weighted Average Options Exercise Price Outstanding - beginning of year 1,417,191 14.02 Granted 371,419 26.22 Exercised 117,185 10.01 Expired and forfeited 141,352 14.25 Outstanding - year end 1,530,073 17.27 Vested and expected to vest at year-end 1,530,073 17.27 Options exercisable at year-end 728,065 12.71 |
Information about Share Options Outstanding | The following table summarizes information about share options outstanding as of December 31, 2018: Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price (US dollars) (in years) (US dollars) (US dollars) 0.93-3.00 2,840 0.55 1.13 2,840 1.13 3.01-7.00 10,000 1.48 4.20 10,000 4.20 7.01-8.00 16,600 0.57 7.82 16,600 7.82 8.01-9.00 62,762 1.59 8.74 62,762 8.74 9.01-10.00 19,289 1.29 9.06 18,788 9.05 10.01-20.00 796,619 3.71 11.48 531,192 11.41 20.01-31.26 621,963 6.13 26.33 87,579 26.54 1,530,073 17.26 728,065 12.71 |
Schedule of Unvested Restricted Share Units | Number of RSUs Weighted average grant date fair value (USD) Unvested at January 1, 2018 292,475 17.71 Granted 173,362 24.8 Vested 99,285 Canceled 42,657 22.4 Unvested at December 31, 2018 323,895 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Significant Components of Deferred Tax Assets | Significant components of the deferred tax assets are as follows: As of December 31, 2 0 1 8 2 0 1 7 Net operating loss carryforwards $ 1,800 $ 2,042 Tax credits carryforward - *27 Temporary differences relating to reserve and allowances 4,234 2,602 Intangible assets (2,161 ) (2,714 ) 3,873 1,957 Valuation Allowance, net of uncertain tax positions - *- Deferred tax asset, net $ 3,873 $ 1,957 *Reclassified |
Schedule of Presentation in Balance Sheets for Deferred Taxes | Israel: As of December 31, 2 0 1 8 2 0 1 7 Long-term deferred tax assets $ 2,998 $ 1,444 $ 2,998 $ 1,444 International: As of December 31, 2 0 1 8 2 0 1 7 Long-term deferred tax assets $ 875 $ 5,338 $ 875 $ 5,338 |
Schedule of Israel and International Components of Income before Taxes | Year ended December 31, 2 0 1 8 2 0 1 7 2 0 1 6 Israel $ 41,013 $ 51,558 $ 14,021 International (mainly US) 19,129 8,537 (2,639 ) $ 60,142 $ 60,095 $ 11,382 |
Schedule of Israel and International Components of Income Taxes | Year ended December 31, 2 0 1 8 2 0 1 7 2 0 1 6 Israel $ 5,767 $ 12,043 $ 2,615 International (mainly US) 3,284 1,593 (877 ) $ 9,051 $ 13,636 $ 1,738 Current $ 10,793 $ 13,584 $ 1,105 Deferred (1,742 ) 52 633 $ 9,051 $ 13,636 $ 1,738 |
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 8 2 0 1 7 2 0 1 6 Net income before taxes $ 63,426 $ 60,095 $ 11,382 Statutory tax expenses 8,100 7,674 1,821 Effect of non-benefited income New Technological or Approved or Preferred Enterprises statuses in Israel 172 181 136 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 578 1,451 588 Different tax rates of deferred taxes - (226 ) (104 ) Effect of foreign operations taxed at various rates 2,034 1,888 (657 ) Foreign Derived Intangible Income benefit (1,534 ) - - Tax credits 30 (1,650 ) Adjustments for previous years tax (369 ) 4,174 (135 ) Other 40 144 *89 951 5,962 (83 ) Actual tax expense (benefit) $ 9,051 $ 13,636 $ 1,738 |
Schedule of Uncertain Tax Positions | The following table summarizes the changes in uncertain tax positions: As of December 31, 2 0 1 8 2 0 1 7 Balance at the beginning of the year 1,707 $ 1,333 Decrease related to settlements with tax authorities, net - (1,142 ) Decrease related to prior year tax positions, net (164 ) - Increase related to current year tax positions 684 1,516 Balance at the end of the year $ 2,227 $ 1,707 |
GEOGRAPHIC AREAS AND MAJOR CU_2
GEOGRAPHIC AREAS AND MAJOR CUSTOMERS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Sales by Geographic Area as Percentage of Total Sales | Year ended December 31, 2 0 1 8 2 0 1 7 2 0 1 6 % % % Taiwan, R.O.C. 31 31 45 USA 18 17 9 Korea 21 28 16 China 18 16 19 Other 12 8 11 Total 100 100 100 |
Sales by Major Customers as Percentage of Total Sales | Year ended December 31, 2 0 1 8 2 0 1 7 2 0 1 6 % % % Customer A 20 23 34 Customer B 19 22 11 Customer C 14 14 11 Customer D 9 8 11 Customer E 5 8 10 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments, All Other Investments [Abstract] | |
Fair Value of Derivative Contracts | The fair value of derivative contracts as of December 31, 2018 and December 31, 2017 was as follows: Derivative Assets Reported in Other Current Assets Derivative Liabilities Reported in Other Current Liabilities December 31, December 31, 2 0 1 8 2 0 1 7 2 0 1 8 2 0 1 7 Derivatives designated as hedging instruments in cash flow hedge $ - $ 138 $ 320 $ - |
Impact of Derivative Instruments on Total Operating Expenses | The impact of derivative instrument on total operating expenses in the year ended December 31, 2018, 2017 and 2016 was: Year ended December 31, 2 0 1 8 2 0 1 7 2 0 1 6 Loss (gain) on derivative instruments $ (189 ) $ 701 $ 50 |
GENERAL (Details)
GENERAL (Details) | Apr. 02, 2015 |
Revera Inc [Member] | |
Business Acquisition [Line Items] | |
Percentage of shares acquired | 100.00% |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | |
Number of Operating Segments | 1 | ||
Impairment losses on goodwill and intangible assets | |||
Research and development grants recognized | $ 5,763 | $ 4,634 | $ 4,261 |
Uncertain tax position, likelihood of being sustained, threshold for recognition | 50.00% | ||
Dilutive securities excluded from diluted earnings per share | shares | 446,301 | 275,594 | 1,134,971 |
Basic earnings per share (in dollars per share) | $ / shares | $ 1.94 | $ 1.68 | $ 0.35 |
Diluted earnings per share (in dollars per share) | $ / shares | $ 1.89 | $ 1.63 | $ 0.35 |
Cumulative effect from adoption of a new accounting standard (Note 2P) | |||
Total amount expected to be recognized as total right-of-use assets and total lease liabilities on consolidated balance sheet as of January 1, 2019 | $ 29,161 | ||
Reduction in deferred revenues | 43 | ||
Remaining Performance Obligations | 7,983 | ||
Deferred revenues | 3,985 | ||
Uncollected amounts of deferred revenue | 3,998 | ||
Contract liabilities | $ 21,639 | ||
Additional Paid-in Capital [Member] | |||
Cumulative effect from adoption of a new accounting standard (Note 2P) | $ 131 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES (Estimated Useful Lives of Property and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
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 | 17 years |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES (Estimated Useful Lives of Intangible Assets) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Impairment losses on intangible assets | ||
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life | 7 years | |
Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life | 10 years | |
Backlog [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life | 1 year | |
IPR&D [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life | To be determined upon successful launch of the related product, subject to annual impairment assessment. |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES (Weighted-Average Assumptions Used in Determinig Fair Market Value of Options) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Risk-free interest rate | 2.79% | 1.81% | 1.08% |
Expected life of options | 4 years 9 months 3 days | 4 years 8 months 12 days | 4 years 7 months 13 days |
Expected volatility | 31.82% | 28.01% | 28.41% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 11,166 | $ 10,634 | |
Work in process | 18,736 | 15,507 | |
Finished goods | 11,884 | 8,780 | |
Inventories | 41,786 | 34,921 | |
Write-offs | $ 3,413 | $ 3,418 | $ 4,038 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Cost: | $ 46,057 | $ 42,720 | |
Accumulated depreciation: | 32,301 | 28,829 | |
Net book value | 13,756 | 13,891 | |
Depreciation expense | 5,071 | 3,618 | $ 4,049 |
Electronic Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost: | 33,160 | 29,793 | |
Accumulated depreciation: | 25,259 | 22,740 | |
Office Furniture and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost: | 1,557 | 1,980 | |
Accumulated depreciation: | 1,237 | 1,428 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost: | 11,340 | 10,947 | |
Accumulated depreciation: | $ 5,805 | $ 4,661 |
GOODWILL AND INTENGABLE ASSET_2
GOODWILL AND INTENGABLE ASSETS (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Original amount | $ 22,929 | $ 22,929 |
Accumulated amortization | 12,742 | 10,129 |
Net book value | 10,187 | 12,800 |
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original amount | 12,305 | 12,305 |
Accumulated amortization | 6,592 | 4,834 |
Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original amount | 5,191 | 5,191 |
Accumulated amortization | 2,644 | 1,789 |
Backlog [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original amount | 3,506 | 3,506 |
Accumulated amortization | 3,506 | 3,506 |
IPR&D [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original amount | 1,927 | 1,927 |
Accumulated amortization |
GOODWILL AND INTENGABLE ASSET_3
GOODWILL AND INTENGABLE ASSETS (Schedule of Annual Amortization Expenses) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Year ending December 31 | ||
2,019 | $ 2,625 | |
2,020 | 2,503 | |
2,021 | 2,297 | |
2,022 | 736 | |
2,023 | 84 | |
Thereafter | 15 | |
Net book value | 8,260 | |
Goodwill amount | $ 20,114 | $ 20,114 |
OTHER CURRENT LIABILITIES (Sche
OTHER CURRENT LIABILITIES (Schedule of Other Current Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | |||
Accrued salaries and fringe benefits | $ 14,008 | $ 13,522 | |
Accrued warranty costs (See B below) | 5,622 | 5,055 | $ 4,358 |
Governmental institutions | 4,417 | 7,215 | |
Other | 1,032 | 246 | |
Other current liabilities | $ 25,079 | $ 26,038 |
OTHER CURRENT LIABILITIES (Chan
OTHER CURRENT LIABILITIES (Changes in the Product Warranty Accrual) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Payables and Accruals [Abstract] | ||
Balance as of beginning of year | $ 5,055 | $ 4,358 |
Services provided under warranty | (6,428) | (6,189) |
Changes in provision | 6,995 | 6,886 |
Balance as of end of year | $ 5,622 | $ 5,055 |
LIABILITY FOR EMPLOYEE SEVERA_2
LIABILITY FOR EMPLOYEE SEVERANCE PAY, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Postemployment Benefits [Abstract] | |||
Severance-pay expenses | $ (161) | $ 168 | $ 120 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2018 | Aug. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | ||||||
Royalty rates for current and fiscal year onward | 5.00% | |||||
Royalties paid or accrued to IIA | $ 12,875 | |||||
Royalty expense | $ 12,875 | $ 13,511 | ||||
Contingent liability | $ 24,340 | |||||
Lien amount | $ 2,000 | |||||
Non-cancelable purchase obligations amount | $ 31,028 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Minimum Rental Payments Under Operating Lease Agreements) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
2,019 | $ 3,135 | ||
2,020 | 3,460 | ||
2,021 | 3,436 | ||
2,022 | 3,018 | ||
2,023 | 3,004 | ||
Thereafter | 32,489 | ||
Total | 48,542 | ||
Rental expense | $ 2,431 | $ 2,172 | $ 2,139 |
SHAREHOLDERS' EQUITY (Narrative
SHAREHOLDERS' EQUITY (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | 33 Months Ended | 57 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2018 | Nov. 30, 2018 | Mar. 24, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Weighted-average fair value of options granted | $ 8.37 | $ 6.64 | $ 2.89 | ||||
Options issued | 371,419 | 290,597 | 434,571 | ||||
Options exercised | 117,185 | 458,801 | 268,022 | ||||
Options cancelled | 141,352 | 193,470 | 144,854 | ||||
Share repurchase program | $ 25,000 | $ 12,000 | |||||
Ordinary share repurchased, shares | 1,084,778 | 200,000 | |||||
Ordinary share repurchased | $ 11,965 | $ 4,801 | |||||
Total intrinsic value of options outstanding | $ 10,665 | $ 17,284 | 10,665 | ||||
Options exercisable at year-end | 7,679 | 8,254 | 7,679 | ||||
Total intrinsic value of options exercised | $ 2,170 | $ 5,170 | $ 1,342 | ||||
Employee Stock Option [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 | $ 1,967 | 1,967 | |||||
Unrecognized compensation cost, recognition period | 4 years | ||||||
Employee Stock Option [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options term | 10 years | ||||||
Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 3 years | ||||||
Unrecognized compensation cost related to non-vested employee options | $ 2,359 | $ 2,359 | |||||
Unrecognized compensation cost, recognition period | 4 years | ||||||
Options issued | 173,362 | ||||||
Options cancelled | 22.4 | ||||||
RSUs issued | 173,362 | ||||||
Weighted average fair values at grant date | $ 24.8 | ||||||
Total intrinsic value of RSU's vested | $ 1,048 | $ 989 | $ 927 | ||||
Restricted Stock Units (RSUs) [Member] | Share-based Compensation Award, Tranche One [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 25.00% | ||||||
Restricted Stock Units (RSUs) [Member] | Share-based Compensation Award, Tranche Two [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 25.00% | ||||||
Restricted Stock Units (RSUs) [Member] | Share-based Compensation Award, Tranche Three [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 25.00% | ||||||
Restricted Stock Units (RSUs) [Member] | Share Based Compensation Award Tranche Four [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 25.00% |
SHAREHOLDERS' EQUITY (Effects o
SHAREHOLDERS' EQUITY (Effects of Stock-Based Compensation in the Statements of Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation | $ 4,326 | $ 2,779 | $ 2,735 |
Product [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation | 515 | 370 | 342 |
Service [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation | 414 | 269 | 218 |
Research and Development expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation | 1,710 | 1,055 | 983 |
Sales and Marketing expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation | 1,026 | 621 | 884 |
General and Administration expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation | $ 661 | $ 464 | $ 308 |
SHAREHOLDERS' EQUITY (Status of
SHAREHOLDERS' EQUITY (Status of the Company's Share Option Plans) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share Options | |||
Outstanding - beginning of year | 1,417,191 | ||
Granted | 371,419 | 290,597 | 434,571 |
Exercised | 117,185 | 458,801 | 268,022 |
Expired and forfeited | 141,352 | 193,470 | 144,854 |
Outstanding - year end | 1,530,073 | 1,417,191 | |
Vested and expected to vest at year-end | 1,530,073 | ||
Options exercisable at year-end | 728,065 | ||
Weighted Average Exercise Price | |||
Outstanding - beginning of year | $ 14.02 | ||
Granted | 26.22 | ||
Exercised | 10.01 | ||
Expired and forfeited | 14.25 | ||
Outstanding - year end | 17.27 | $ 14.02 | |
Vested and expected to vest at year-end | 17.27 | ||
Options exercisable at year-end | $ 12.71 |
SHAREHOLDERS' EQUITY (Informati
SHAREHOLDERS' EQUITY (Information About Share Options Outstanding) (Details) | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number Outstanding | shares | 1,530,073 |
Weighted Average Exercise Price, Outstanding | $ 17.26 |
Number Exercisable, Exercisable | shares | 728,065 |
Weighted Average Exercise Price, Exercisable | $ 12.71 |
0.93-3.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Prices, minimum | 0.93 |
Exercise Prices, maximum | $ 3 |
Number Outstanding | shares | 2,840 |
Weighted Average Remaining Contractual Life (in years), Outstanding | 6 months 18 days |
Weighted Average Exercise Price, Outstanding | $ 1.13 |
Number Exercisable, Exercisable | shares | 2,840 |
Weighted Average Exercise Price, Exercisable | $ 1.13 |
3.01-7.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Prices, minimum | 3.01 |
Exercise Prices, maximum | $ 7 |
Number Outstanding | shares | 10,000 |
Weighted Average Remaining Contractual Life (in years), Outstanding | 1 year 5 months 23 days |
Weighted Average Exercise Price, Outstanding | $ 4.20 |
Number Exercisable, Exercisable | shares | 10,000 |
Weighted Average Exercise Price, Exercisable | $ 4.20 |
7.01-8.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Prices, minimum | 7.01 |
Exercise Prices, maximum | $ 8 |
Number Outstanding | shares | 16,600 |
Weighted Average Remaining Contractual Life (in years), Outstanding | 6 months 25 days |
Weighted Average Exercise Price, Outstanding | $ 7.82 |
Number Exercisable, Exercisable | shares | 16,600 |
Weighted Average Exercise Price, Exercisable | $ 7.82 |
8.01-9.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Prices, minimum | 8.01 |
Exercise Prices, maximum | $ 9 |
Number Outstanding | shares | 62,762 |
Weighted Average Remaining Contractual Life (in years), Outstanding | 1 year 7 months 2 days |
Weighted Average Exercise Price, Outstanding | $ 8.74 |
Number Exercisable, Exercisable | shares | 62,762 |
Weighted Average Exercise Price, Exercisable | $ 8.74 |
9.01-10.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Prices, minimum | 9.01 |
Exercise Prices, maximum | $ 10 |
Number Outstanding | shares | 19,289 |
Weighted Average Remaining Contractual Life (in years), Outstanding | 1 year 3 months 15 days |
Weighted Average Exercise Price, Outstanding | $ 9.06 |
Number Exercisable, Exercisable | shares | 18,788 |
Weighted Average Exercise Price, Exercisable | $ 9.05 |
10.01-20.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Prices, minimum | 10.01 |
Exercise Prices, maximum | $ 20 |
Number Outstanding | shares | 796,619 |
Weighted Average Remaining Contractual Life (in years), Outstanding | 3 years 8 months 16 days |
Weighted Average Exercise Price, Outstanding | $ 11.48 |
Number Exercisable, Exercisable | shares | 531,192 |
Weighted Average Exercise Price, Exercisable | $ 11.41 |
20.01-31.26 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Prices, minimum | 20.01 |
Exercise Prices, maximum | $ 31.26 |
Number Outstanding | shares | 621,963 |
Weighted Average Remaining Contractual Life (in years), Outstanding | 6 years 1 month 16 days |
Weighted Average Exercise Price, Outstanding | $ 26.33 |
Number Exercisable, Exercisable | shares | 87,579 |
Weighted Average Exercise Price, Exercisable | $ 26.54 |
SHAREHOLDERS' EQUITY (Schedule
SHAREHOLDERS' EQUITY (Schedule of Unvested Restricted Share Units) (Details) - Restricted Stock Units (RSUs) [Member] | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Number of RSUs | |
Unvested - beginning of year | 292,475 |
Granted | 173,362 |
Vested | 99,285 |
Canceled | 42,657 |
Unvested - year end | 323,895 |
Weighted average grant date fair value | |
Unvested - beginning of year | $ / shares | $ 17.71 |
Granted | $ / shares | 24.8 |
Canceled | $ / shares | 22.4 |
Unvested - year end | $ / shares |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2025 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Required income from exports, percent | 25.00% | |||
Withholding tax rate | 15.00% | |||
Tax benefit (expense) | $ 837 | |||
Accumulated losses for income tax purposes | 4,937 | |||
Tax assessment amount | 3,553 | |||
Interest expense related to tax assessment | $ 355 | |||
Corporate tax rate | 23.00% | 24.00% | 25.00% | |
Taxable income in Israel is attributable to Preferred Enterprises tax rate | 16.00% | |||
Unrecognized deferred tax liability related to the Israel income taxes of undistributed earnings of foreign subsidiaries indefinitely invested outside the Israel | $ 6,812 | |||
Minimum [Member] | ||||
Corporate tax on income if approved enterprise status earnings are distributed | 10.00% | |||
Permanent reduction in corporate tax rate | 21.00% | |||
Decrease in federal corporate tax rate | 21.00% | |||
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% | |||
Permanent reduction in corporate tax rate | 35.00% | |||
Decrease in federal corporate tax rate | 35.00% | |||
Tax rate on dividend distributed generated from preferred income | 20.00% | |||
Development Area A [Member] | Minimum [Member] | ||||
Taxable income in Israel is attributable to Preferred Enterprises tax rate | 9.00% | |||
Development Area A [Member] | Maximum [Member] | ||||
Taxable income in Israel is attributable to Preferred Enterprises tax rate | 7.50% | |||
Foreign-Derived Intangible Income [Member] | ||||
Tax benefit (expense) | $ 1,534 | |||
Corporate tax rate | 2.40% | 13.10% | ||
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 | |||
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% | |||
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% | |||
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% | |||
Tax rate on dividend distributed generated from preferred income | 20.00% | |||
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% | |||
Taxable income in Israel is attributable to Preferred Enterprises tax rate | 16.00% | |||
Preferred Technological Enterprises [Member] | ||||
Total consolidated revenues of preferred technological enterprise | $ 10,000,000 | |||
Technological preferred enterprise subject tax rate | 12.00% | |||
Foreign Corporate [Member] | ||||
Tax rate on dividend distributed generated from preferred income | 4.00% | |||
Foreign Investors [Member] | ||||
Tax rate on dividend distributed generated from preferred income | 90.00% | |||
Subsequent Event [Member] | Foreign-Derived Intangible Income [Member] | ||||
Corporate tax rate | 16.40% |
INCOME TAXES (Significant Compo
INCOME TAXES (Significant Components of Deferred Tax Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Net operating loss carry-forwards | $ 1,800 | $ 2,042 | |
Tax credits carryforward | 27 | [1] | |
Temporary differences relating to reserve and allowances | 4,234 | 2,602 | |
Intangible assets | (2,161) | (2,714) | |
Total net deferred tax asset before valuation allowance | 3,873 | 1,957 | |
Valuation Allowance, net of uncertain tax positions | [1] | ||
Deferred tax asset, net | $ 3,873 | $ 1,957 | |
[1] | Reclassified |
INCOME TAXES (Schedule of Balan
INCOME TAXES (Schedule of Balance Sheet Presentation of Deferred Taxes) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Income Taxes [Line Items] | ||
Net deferred tax asset | $ 3,873 | $ 1,957 |
Israel [Member] | ||
Income Taxes [Line Items] | ||
Long-term deferred tax assets | 2,998 | 1,444 |
Net deferred tax asset | 2,998 | 1,444 |
International [Member] | ||
Income Taxes [Line Items] | ||
Long-term deferred tax assets | 875 | 5,338 |
Net deferred tax asset | $ 875 | $ 5,338 |
INCOME TAXES (Schedule of Israe
INCOME TAXES (Schedule of Israel and International Components of Income before taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Income Before Income Tax Domestic and Foreign [Line Items] | |||
Net income before taxes | $ 63,426 | $ 60,095 | $ 11,382 |
Israel [Member] | |||
Schedule of Income Before Income Tax Domestic and Foreign [Line Items] | |||
Net income before taxes | 41,013 | 51,558 | 14,021 |
International [Member] | |||
Schedule of Income Before Income Tax Domestic and Foreign [Line Items] | |||
Net income before taxes | $ 19,129 | $ 8,537 | $ (2,639) |
INCOME TAXES (Israel and Intern
INCOME TAXES (Israel and International Components of Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Israel | $ 5,767 | $ 12,043 | $ 2,615 |
International (mainly US) | 3,284 | 1,593 | (877) |
Income tax expenses (benefit) | 9,051 | 13,636 | 1,738 |
Current and deferred: | |||
Current | 10,793 | 13,584 | 1,105 |
Deferred | (1,916) | (31) | 633 |
Income tax expenses (benefit) | $ 9,051 | $ 13,636 | $ 1,738 |
INCOME TAXES (Reconciliation of
INCOME TAXES (Reconciliation of the Theoretical and Actual Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Income Tax Disclosure [Abstract] | ||||
Net income before taxes | $ 63,426 | $ 60,095 | $ 11,382 | |
Statutory tax expenses | 8,100 | 7,674 | 1,821 | |
Effect of non-benefited income New Technological or Approved or Preferred Enterprises statuses in Israel | 172 | 181 | 136 | |
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 | 578 | 1,451 | 588 | |
Different tax rates of deferred taxes | (226) | (104) | ||
Effect of foreign operations taxed at various rates | 2,034 | 1,888 | (657) | |
Foreign Derived Intangible Income benefit | (1,534) | |||
Tax credits | 30 | (1,650) | ||
Adjustments for previous years tax | (369) | 4,174 | (135) | |
Other | 40 | 144 | 89 | [1] |
Total reconciling items | 951 | 5,962 | (83) | |
Income tax expenses (benefit) | $ 9,051 | $ 13,636 | $ 1,738 | |
[1] | Reclassified |
INCOME TAXES (Schedule of Unrec
INCOME TAXES (Schedule of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Balance at the beginning of the year | $ 1,707 | $ 1,333 |
Decrease related to settlements with tax authorities, net | (1,142) | |
Decrease related to prior year tax positions, net | (164) | |
Increase related to current year tax positions | 684 | 1,516 |
Balance at the end of the year | $ 2,227 | $ 1,707 |
GEOGRAPHIC AREAS AND MAJOR CU_3
GEOGRAPHIC AREAS AND MAJOR CUSTOMERS (Sales by Geographic Area as Percentage of Total Sales) (Details) - Sales [Member] | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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) | 31.00% | 31.00% | 45.00% |
USA [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales by geographic area (as percentage of total sales) | 18.00% | 17.00% | 9.00% |
Korea [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales by geographic area (as percentage of total sales) | 21.00% | 28.00% | 16.00% |
China [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales by geographic area (as percentage of total sales) | 18.00% | 16.00% | 19.00% |
Other [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales by geographic area (as percentage of total sales) | 12.00% | 8.00% | 11.00% |
GEOGRAPHIC AREAS AND MAJOR CU_4
GEOGRAPHIC AREAS AND MAJOR CUSTOMERS (Sales by Major Customers as Percentage of Total Sales) (Details) - Sales [Member] | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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) | 20.00% | 23.00% | 34.00% |
Customer B [Member] | |||
Revenue, Major Customer [Line Items] | |||
Sales by major customers (as percentage of total sales) | 19.00% | 22.00% | 11.00% |
Customer C [Member] | |||
Revenue, Major Customer [Line Items] | |||
Sales by major customers (as percentage of total sales) | 14.00% | 14.00% | 11.00% |
Customer D [Member] | |||
Revenue, Major Customer [Line Items] | |||
Sales by major customers (as percentage of total sales) | 9.00% | 8.00% | 11.00% |
Customer E [Member] | |||
Revenue, Major Customer [Line Items] | |||
Sales by major customers (as percentage of total sales) | 5.00% | 8.00% | 10.00% |
TRANSACTIONS AND BALANCES WIT_2
TRANSACTIONS AND BALANCES WITH RELATED PARTIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||
Options granted | 371,419 | 290,597 | 434,571 |
Directors [Member] | |||
Related Party Transaction [Line Items] | |||
Directors' fees | $ 354 | $ 350 | $ 267 |
Options granted | 138,000 |
FINANCIAL INSTRUMENTS (Narrativ
FINANCIAL INSTRUMENTS (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Investments, All Other Investments [Abstract] | ||
Notional amount of the hedging instruments | $ 21,093 | $ 14,315 |
FINANCIAL INSTRUMENTS (Fair Val
FINANCIAL INSTRUMENTS (Fair Value of Derivative Contracts) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative Assets Reported in Other Current Assets [Member] | ||
Derivative [Line Items] | ||
Derivatives designated as hedging instruments in cash flow hedge | $ 138 | |
Derivative Liabilities Reported in Other Current Liabilities [Member] | ||
Derivative [Line Items] | ||
Derivatives designated as hedging instruments in cash flow hedge | $ 320 |
FINANCIAL INSTRUMENTS (Impact o
FINANCIAL INSTRUMENTS (Impact of Derivative Instruments on Total Operating Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments, All Other Investments [Abstract] | |||
Loss (gain) on derivative instruments | $ (189) | $ 701 | $ 50 |