Document_And_Entity_Informatio
Document And Entity Information | 12 Months Ended |
Dec. 31, 2013 | |
Document And Entity Information [Abstract] | ' |
Document Type | '20-F |
Amendment Flag | 'false |
Document Period End Date | 31-Dec-13 |
Document Fiscal Period Focus | 'FY |
Document Fiscal Year Focus | '2013 |
Entity Registrant Name | 'SILICOM LTD. |
Entity Central Index Key | '0000916793 |
Current Fiscal Year End Date | '--12-31 |
Entity Filer Category | 'Accelerated Filer |
Entity Common Stock, Shares Outstanding | 7,140,013 |
Entity Well-known Seasoned Issuer | 'No |
Entity Voluntary Filers | 'No |
Entity Current Reporting Status | 'Yes |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $12,997 | $13,306 |
Short-term bank deposits | 3,000 | 2,527 |
Marketable securities | 14,871 | 12,583 |
Accounts receivable: | ' | ' |
Trade, net | 14,482 | 12,146 |
Other | 2,460 | 2,234 |
Related parties | 384 | 245 |
Inventories | 28,778 | 14,795 |
Deferred tax assets | 274 | 47 |
Total current assets | 77,246 | 57,883 |
Marketable securities | 24,370 | 28,469 |
Assets held for employees' severance benefits | 1,543 | 1,377 |
Deferred tax assets | 439 | 114 |
Property, plant and equipment ("PPE"), net | 1,479 | 1,190 |
Intangible assets, net | 180 | ' |
Total assets | 105,257 | 89,033 |
Current liabilities | ' | ' |
Trade accounts payable | 6,764 | 7,799 |
Other accounts payable and accrued expenses | 5,134 | 3,914 |
Related parties | 50 | 76 |
Total current liabilities | 11,948 | 11,789 |
Long-term liability | ' | ' |
Liability for employees' severance benefits | 2,618 | 2,278 |
Total liabilities | 14,566 | 14,067 |
Commitments and contingencies | ' | ' |
Shareholders' equity | ' | ' |
Ordinary shares, NIS 0.01 par value; 10,000,000 shares authorized; 7,022,397 and 7,154,984 issued as at December 31, 2012 and 2013, respectively; 7,007,426 and 7,140,013 outstanding as at December 31, 2012 and 2013, respectively | 21 | 21 |
Additional paid-in capital | 38,626 | 36,065 |
Treasury shares (at cost) - 14,971 ordinary shares as at December 31, 2012 and 2013 | -38 | -38 |
Retained earnings | 52,082 | 38,918 |
Total shareholders' equity | 90,691 | 74,966 |
Total liabilities and shareholders' equity | $105,257 | $89,033 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (ILS) | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Balance Sheets [Abstract] | ' | ' |
Ordinary shares, par value | 0.01 | 0.01 |
Ordinary shares, authorized | 10,000,000 | 10,000,000 |
Ordinary shares, issued | 7,154,984 | 7,022,397 |
Ordinary shares, outstanding | 7,140,013 | 7,007,426 |
Ordinary shares, treasury shares | 14,971 | 14,971 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Consolidated Statements Of Operations [Abstract] | ' | ' | ' | |||
Sales | $73,298 | [1] | $48,729 | [1] | $39,633 | [1] |
Cost of sales | 43,865 | 28,849 | 22,430 | |||
Gross profit | 29,433 | 19,880 | 17,203 | |||
Operating expenses | ' | ' | ' | |||
Research and development | 5,465 | [2] | 4,401 | [2] | 4,165 | [2] |
Sales and marketing | 3,818 | 3,081 | 2,677 | |||
General and administrative | 2,572 | 2,369 | 1,890 | |||
Total operating expenses | 11,855 | 9,851 | 8,732 | |||
Operating income | 17,578 | 10,029 | 8,471 | |||
Financial income, net | 404 | 752 | 439 | |||
Income before income taxes | 17,982 | 10,781 | 8,910 | |||
Income taxes | 905 | 910 | 667 | |||
Net income | $17,077 | $9,871 | $8,243 | |||
Income per share: | ' | ' | ' | |||
Basic income per ordinary share (US$) | $2.40 | $1.42 | $1.20 | |||
Diluted income per ordinary share (US$) | $2.36 | $1.42 | $1.18 | |||
Weighted average number of ordinary shares used to compute basic income per share | 7,103,021 | 6,933,576 | 6,896,215 | |||
Weighted average number of ordinary shares used to compute diluted income per share | 7,246,032 | 6,968,305 | 6,994,592 | |||
[1] | Including sales to related parties in the amount of US$ 350 thousand, US$ 558 thousand and US$ 851 thousand in 2011, 2012 and 2013, respectively. | |||||
[2] | Including services from related parties in the amount of US$ 50 thousand, US$ 42 thousand and US$ 133 thousand in 2011, 2012 and 2013, respectively. |
Consolidated_Statements_of_Ope1
Consolidated Statements of Operations (Partenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Consolidated Statements Of Operations [Abstract] | ' | ' | ' |
Sales to related parties | $851 | $558 | $350 |
Services from related parties | $133 | $42 | $50 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes In Shareholders' Equity (USD $) | Total | Ordinary Shares [Member] | Additional Paid-In Capital [Member] | Treasury Shares [Member] | Retained Earnings [Member] | |
Balance at Dec. 31, 2010 | $55,430,000 | $20 | $34,644,000 | ($38,000) | $20,804,000 | |
Balance, shares at Dec. 31, 2010 | ' | 6,879,688 | ' | ' | ' | |
Exercise of options | 164,000 | ' | [1] | 164,000 | ' | ' |
Exercise of options, shares | 45,400 | 45,400 | ' | ' | ' | |
Share-based compensation | 437,000 | ' | 437,000 | ' | ' | |
Net income | 8,243,000 | ' | ' | ' | 8,243,000 | |
Balance at Dec. 31, 2011 | 64,274,000 | 20,000 | 35,245,000 | -38,000 | 29,047,000 | |
Balance, shares at Dec. 31, 2011 | ' | 6,925,088 | ' | ' | ' | |
Exercise of options | 277,000 | 1,000 | 276,000 | ' | ' | |
Exercise of options, shares | 82,338 | 82,338 | ' | ' | ' | |
Share-based compensation | 544,000 | ' | 544,000 | ' | ' | |
Net income | 9,871,000 | ' | ' | ' | 9,871,000 | |
Balance at Dec. 31, 2012 | 74,966,000 | 21,000 | 36,065,000 | -38,000 | 38,918,000 | |
Balance, shares at Dec. 31, 2012 | ' | 7,007,426 | ' | ' | ' | |
Exercise of options | 1,893,000 | ' | [1] | 1,893,000 | ' | ' |
Exercise of options, shares | 132,587 | 132,587 | ' | ' | ' | |
Share-based compensation | 668,000 | ' | 668,000 | ' | ' | |
Dividend | -3,913,000 | ' | ' | ' | -3,913,000 | |
Net income | 17,077,000 | ' | ' | ' | 17,077,000 | |
Balance at Dec. 31, 2013 | $90,691,000 | $21,000 | $38,626,000 | ($38,000) | $52,082,000 | |
Balance, shares at Dec. 31, 2013 | ' | 7,140,013 | ' | ' | ' | |
[1] | Less than 1 thousand |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes In Shareholders' Equity (Parenthetical) | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statements Of Changes In Shareholders' Equity [Abstract] | ' | ' |
Shares held by the subsidiary | 14,971 | 14,971 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities | ' | ' | ' |
Net income | $17,077 | $9,871 | $8,243 |
Adjustments required to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 659 | 454 | 379 |
Write-down of obsolete inventory | 1,926 | 873 | 768 |
Liability for employees' severance benefits, net | 174 | 23 | -42 |
Discount of marketable securities | 729 | 579 | 462 |
Share-based compensation expense | 668 | 544 | 437 |
Deferred taxes | -552 | 22 | 86 |
Capital (gain) loss | 1 | ' | -6 |
Changes in assets and liabilities: | ' | ' | ' |
Accounts receivable - trade | -2,322 | -3,741 | -1,780 |
Accounts receivable - other | -114 | -537 | -717 |
Accounts receivable - Related parties | -139 | -37 | -71 |
Inventories | -15,909 | -4,495 | -3,801 |
Trade accounts payable | -1,474 | 3,828 | 250 |
Other accounts payable and accrued expenses | 1,220 | 1,436 | 508 |
Accounts payable - Related parties | -26 | 69 | -25 |
Net cash provided by operating activities | 1,918 | 8,889 | 4,691 |
Cash flows from investing activities | ' | ' | ' |
Proceeds from (investments in) short term bank deposits, net | -473 | 2,483 | 4,199 |
Purchases of property, plant and equipment | -822 | -798 | -486 |
Investment in intangible assets | -100 | ' | ' |
Proceeds from maturity of marketable securities | 12,500 | 8,955 | 9,531 |
Purchases of marketable securities | -11,384 | -17,992 | -13,071 |
Net cash provided by (used in) investing activities | -279 | -7,352 | 173 |
Cash flows from financing activities | ' | ' | ' |
Exercise of options | 1,893 | 277 | 164 |
Dividend | -3,913 | ' | ' |
Net cash provided by (used in) financing activities | -2,020 | 277 | 164 |
Effect of exchange rate changes on cash balances held | 72 | 9 | -202 |
Increase (decrease) in cash and cash equivalents | -309 | 1,823 | 4,826 |
Cash and cash equivalents at beginning of year | 13,306 | 11,483 | 6,657 |
Cash and cash equivalents at end of year | 12,997 | 13,306 | 11,483 |
Supplementary cash flow information Non-cash transactions: | ' | ' | ' |
Investments in PPE and Intangible assets | 207 | 9 | 80 |
Supplementary cash flow information Cash paid during the year for: | ' | ' | ' |
Income taxes | $2,154 | $635 | $623 |
General
General | 12 Months Ended |
Dec. 31, 2013 | |
General [Abstract] | ' |
General | ' |
Note 1 - General | |
Silicom Ltd. is an Israeli corporation engaged in designing, manufacturing, marketing and supporting high performance networking and data infrastructure solutions for a broad range of servers, server based systems and communications devices. | |
The Company's shares have been traded in the United States on the National Association of Securities Dealers Automated Quotation System ("NASDAQ"), since February 1994 and in Israel on the Tel Aviv Stock Exchange ("TASE"), since December 2005. Since February 11, 2008, the Company's shares have been traded on the NASDAQ Global Market (prior thereto they were traded on the NASDAQ Capital Market). Since June 16, 2013 the Company's shares have been included in the Tel-Aviv 100 Index. | |
Silicom markets its products directly, through Original Equipment Manufacturers ("OEMs") which sell the Company's connectivity products under their own private labels or incorporate the Company's products into their products. | |
In these financial statements the terms "Company" or Silicom refer to Silicom Ltd. and its wholly owned subsidiary, Silicom Connectivity Solutions, Inc., whereas the term "subsidiary" refers to Silicom Connectivity Solutions, Inc. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||
Note 2 - Summary of Significant Accounting Policies | |||||||||||||
The significant accounting policies, which are applied consistently throughout the periods presented, are as follows: | |||||||||||||
A. | Financial statements in US dollars | ||||||||||||
Substantially all sales of the Company are made outside of Israel (see Note ##Note110A regarding geographical distribution), in US dollars ("dollars"). Most purchases of materials and components, and a significant part of the marketing costs are made or incurred, primarily in dollars. Therefore, the functional currency of the Company is the dollar. | |||||||||||||
Transactions and monetary balances in other currencies are translated into the functional currency using the current exchange rate. | |||||||||||||
All exchange gains and losses from remeasurement of monetary balance sheet items denominated in non-dollar currencies are reflected in earnings when they arise. | |||||||||||||
B. | Basis of presentation | ||||||||||||
The accompanying consolidated financial statements have been prepared with accounting principles generally accepted in the United States of America and include the accounts of the Company and its wholly-owned subsidiary in the United States. All intercompany balances and transactions have been eliminated in consolidation. | |||||||||||||
C. | Estimates and assumptions | ||||||||||||
The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the useful lives of PPE; allowances for doubtful accounts, deferred tax assets, inventory, investments, share-based compensation and other contingencies. | |||||||||||||
D. | Cash and cash equivalents | ||||||||||||
The Company considers highly liquid investments with original maturities of three months or less from the date of deposit to be cash equivalents. | |||||||||||||
E. | Short-term bank deposits | ||||||||||||
Short term bank deposits consist of bank deposits with original maturities of more than three months and up to twelve months. | |||||||||||||
As of December 31, 2013 the Company's short-term bank deposits consist of bank deposits in US dollars that bear fixed annual interest of 0.35% (2012 1.81%). These short-term bank deposits are held with a major Israeli bank, and their use and withdrawal are not subject to any restrictions. | |||||||||||||
F. | Marketable securities | ||||||||||||
Investment securities at December 31, 2012 and 2013 consist of corporate debt and government debt. | |||||||||||||
The Company classifies its marketable securities as held-to-maturity as they are debt securities in which the Company has the intent and ability to hold to maturity. Held-to-maturity (HTM) debt securities are recorded at amortized cost adjusted for the amortization or accretion of premiums or discounts. | |||||||||||||
Premiums and discounts on debt securities are amortized or accreted over the life of the related held-to-maturity security as an adjustment to yield using the effective interest method. Such amortization and accretion is included in the "Financial income, net" line item in the consolidated statements of operations. | |||||||||||||
When other-than-temporary impairment has occurred, the amount of the other-than-temporary impairment recognized in earnings depends on whether the Company intends to sell the security or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss. | |||||||||||||
A decline in the market value of HTM security below cost that is deemed to be other than temporary results in an impairment to reduce the carrying amount to fair value. To determine whether an impairment is other than temporary, the Company considers all available information relevant to the collectibility of the security, including past events, current conditions, and reasonable and supportable forecasts when developing estimate of cash flows expected to be collected. Evidence considered in this assessment includes the reasons for the impairment, the severity and duration of the impairment, changes in value subsequent to year end, forecasted performance of the investee, and the general market condition in the geographic area or industry the investee operates in. | |||||||||||||
If the Company intends to sell the security or it is more likely than not will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss, the other-than-temporary impairment is recognized in earnings equal to the entire difference between the investment's amortized cost basis and its fair value at the balance sheet date. If the Company does not intend to sell the security and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss, the other-than-temporary impairment is separated into the amount representing the credit loss and the amount related to all other factors. The amount of the total other-than-temporary impairment related to the credit loss is recognized in earnings. | |||||||||||||
G. | Trade accounts receivable, net | ||||||||||||
Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. The Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and its customers' financial condition, the amount of receivables in dispute, and the current receivables aging and current payment patterns. | |||||||||||||
As of December 31, 2012 and 2013, the provision for doubtful accounts receivable amounted to US$ 20 thousand. | |||||||||||||
H. | Inventories | ||||||||||||
Inventories are stated at the lower of cost or market. Cost is determined using the "weighted average-cost" method. | |||||||||||||
The Company writes down obsolete or slow moving inventory to its market value, on a quarterly basis. | |||||||||||||
I. | Assets held for employees' severance benefits | ||||||||||||
Assets held for employees' severance benefits represent contributions to severance pay funds and cash surrender value of insurance policies. The assets are recorded at their current cash redemption value. | |||||||||||||
J. | Property, plant and equipment | ||||||||||||
Property, plant and equipment are stated at cost Net of accumulated depreciation. Depreciation is calculated on the straight-line basis over the estimated useful life of the assets at the following annual rates: | |||||||||||||
% | |||||||||||||
Machinery and equipment | 15 - 33 | ||||||||||||
Office furniture and equipment | Jun-33 | ||||||||||||
Leasehold improvements | 20-Oct | ||||||||||||
Depreciation methods, useful lives and residual values are reviewed at the end of each reporting year and adjusted if appropriate. | |||||||||||||
K. | Intangible assets | ||||||||||||
In 2013, the Company acquired intellectual property (the "IP") related to a Virtualization Off-Load Engine developed by Net Perform in the amount of US$ 200 thousand. The estimated useful life is 3 years. Amortization expenses recorded on a straight-line basis. The amortization of the IP in 2013 was US$ 20 thousand and the amortized cost as of December 31, 2013 was US$ 180 thousand. | |||||||||||||
L. | Long lived assets | ||||||||||||
In accordance with Impairment or Disposal of Long-Lived Assets Subsections of FASB ASC Subtopic 360-10, Property, Plant, and Equipment - Overall long-lived assets, such as property, plant, equipment and purchase intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or an asset group to be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third party independent appraisals, as considered necessary. | |||||||||||||
M. | Revenue recognition | ||||||||||||
Revenues from sales of products are recognized upon delivery provided that the collection of the resulting receivable is reasonably assured, there is persuasive evidence of an arrangement, no significant obligations in respect of installation remain and the price is fixed or determinable. | |||||||||||||
Sales taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and, therefore, are excluded from revenues in the consolidated statements of operations. | |||||||||||||
N. | Research and development costs | ||||||||||||
Research and development costs are expensed as incurred. | |||||||||||||
O. | Royalty bearing participations | ||||||||||||
Royalty bearing participation from the Government of Israel for funding research and development activities are recognized at the time the Company is entitled to such grants based on the related cost incurred. See also Note 8A. | |||||||||||||
Royalty expenses are recognized pursuant to the sale of related products and are classified as cost of sales. | |||||||||||||
P. | Allowance for product warranty | ||||||||||||
The Company grants service warranties related to certain products to end-users. The Company estimates its obligation for such warranties to be immaterial on the basis of historical experience. Accordingly, these financial statements do not include an accrual for warranty obligations. | |||||||||||||
Q. | Treasury shares | ||||||||||||
Treasury shares are recorded at cost and presented as a reduction of shareholders' equity. | |||||||||||||
R. | Income taxes | ||||||||||||
Deferred taxes are accounted for under the asset and liability method based on the estimated future tax effects of temporary differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the consolidated statements of operations in the period that includes the enactment date. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. | |||||||||||||
S. | Share-based compensation | ||||||||||||
The Company recognizes compensation expense based on estimated grant date fair value in accordance with ASC Topic 718, Compensation -Stock Compensation as follows: | |||||||||||||
When portions of an award vest in increments during the requisite service period (graded-vesting award), the Company's accounting policy is to recognize compensation cost for the award over the requisite service period for each separately vesting portion of the award. | |||||||||||||
T. | Basic and diluted earnings per share | ||||||||||||
Basic income per ordinary share is calculated by dividing the net income attributable to ordinary shares, by the weighted average number of ordinary shares outstanding. Diluted income per ordinary share calculation is similar to basic income per ordinary share except that the weighted average of common shares outstanding is increased to include outstanding potential common shares during the period if dilutive. Potential common shares arise from stock options and the dilutive effect is reflected by the application of the treasury stock method. | |||||||||||||
The following table summarizes information related to the computation of basic and diluted income per ordinary share for the years indicated. | |||||||||||||
Year ended December 31 | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Net income attributable to ordinary shares | |||||||||||||
(US$ thousands) | 8,243 | 9,871 | 17,077 | ||||||||||
Weighted average number of ordinary shares outstanding | |||||||||||||
used in basic income per ordinary share calculation | 6,896,215 | 6,933,576 | 7,103,021 | ||||||||||
Add assumed exercise of outstanding dilutive potential | |||||||||||||
ordinary shares | 98,377 | 34,729 | 143,011 | ||||||||||
Weighted average number of ordinary shares outstanding | |||||||||||||
used in diluted income per ordinary share calculation | 6,994,592 | 6,968,305 | 7,246,032 | ||||||||||
Basic income per ordinary shares (US$) | 1.195 | 1.424 | 2.404 | ||||||||||
Diluted income per ordinary shares (US$) | 1.178 | 1.417 | 2.357 | ||||||||||
Number of options and warrants excluded | |||||||||||||
from the diluted earnings per share calculation | |||||||||||||
because of anti-dilutive effect | 135,000 | 135,000 | - | ||||||||||
U. | Comprehensive Income | ||||||||||||
For the years ended December 31, 2011, 2012 and 2013, comprehensive income equals net income. | |||||||||||||
V. | Fair Value Measurements | ||||||||||||
The Company's financial instruments include mainly cash and cash equivalents, accounts receivable, short term bank deposits, marketable securities and accounts payable. The carrying amounts of these financial instruments approximate their fair value. For marketable securities fair value see Note 4. | |||||||||||||
The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: | |||||||||||||
Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. | |||||||||||||
Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. | |||||||||||||
Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. | |||||||||||||
W. | Concentrations of risks | ||||||||||||
(1) | Credit risk | ||||||||||||
Financial instruments, which potentially subject the Company to significant concentrations of credit risk, consist principally of cash and cash equivalents, short-term bank deposits, marketable securities, trade receivables and assets held for employees' severance benefits. Cash and cash equivalents balances of the Company, which are subject to credit risk, consist of cash accounts held with major financial institutions. Short-term bank deposits balances of the Company, which are subject to credit risk, consist of short-term bank deposits held with a major Israeli Bank. Marketable securities consist of held to maturity marketable securities issued by highly rated corporations or governmental securities. As of December 31, 2012 and 2013, the ratings of the securities in the Company's portfolio were at least A. Nonetheless, these investments are subject to general credit and counterparty risks (such as that the counterparty to a financial instrument fails to meet its contractual obligations). Concentrations of credit risk with respect to trade receivables are limited due to the Company's diverse customer base and their wide geographical dispersion. The Company closely monitors extensions of credit and has never experienced significant credit losses. | |||||||||||||
(2) | Dominant customers | ||||||||||||
The Company depends on a small amount of customers for its products. The Company's top three customers accounted for approximately 50% of its revenues in 2013. The Company expects that a small number of customers will continue to account for a significant portion of its revenues for the foreseeable future. | |||||||||||||
X. | Liabilities for loss contingencies | ||||||||||||
Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. |
Cash_and_Cash_Equivalents
Cash and Cash Equivalents | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Cash and Cash Equivalents [Abstract] | ' | ||||||||
Cash and Cash Equivalents | ' | ||||||||
Note 3 - Cash and Cash Equivalents | |||||||||
31-Dec | |||||||||
2012 | 2013 | ||||||||
US$ thousands | |||||||||
Cash | 13,248 | 10,593 | |||||||
Cash equivalents * | 58 | 2,404 | |||||||
13,306 | 12,997 | ||||||||
* Comprised mainly of deposits in banks as at December 31, 2012 and 2013 carrying a weighted average interest rate of 0.11% and 0.74%, respectively. | |||||||||
Marketable_Securities
Marketable Securities | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Marketable Securities [Abstract] | ' | ||||||||||||||||||||||||
Marketable Securities | ' | ||||||||||||||||||||||||
Note 4 - Marketable Securities | |||||||||||||||||||||||||
The Company's investment in marketable securities as of December 31, 2012 and 2013 are classified as "held-to-maturity" and consist of the following: | |||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
unrealized | unrealized | ||||||||||||||||||||||||
Amortized | holding | holding | Aggregate | ||||||||||||||||||||||
cost basis** | gains | (losses) | fair value* | ||||||||||||||||||||||
US$ thousands | |||||||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||
Held to maturity: | |||||||||||||||||||||||||
Corporate debt securities and | |||||||||||||||||||||||||
government debt securities | |||||||||||||||||||||||||
Current | 15,015 | 20 | (76 | ) | 14,959 | ||||||||||||||||||||
Non-Current | 24,617 | 69 | (167 | ) | 24,519 | ||||||||||||||||||||
39,632 | 89 | (243 | ) | 39,478 | |||||||||||||||||||||
At December 31, 2012 | |||||||||||||||||||||||||
Held to maturity: | |||||||||||||||||||||||||
Corporate debt securities and | |||||||||||||||||||||||||
government debt securities | |||||||||||||||||||||||||
Current | 12,702 | 23 | (56 | ) | 12,669 | ||||||||||||||||||||
Non-Current | 28,775 | 193 | (126 | ) | 28,842 | ||||||||||||||||||||
41,477 | 216 | (182 | ) | 41,511 | |||||||||||||||||||||
* | Fair value is being determined using quoted market prices in active markets (Level 1). | ||||||||||||||||||||||||
** | Including accrued interest in the amount of $425K and $391K as of December 31, 2012 and 2013 respectively. | ||||||||||||||||||||||||
The amortized cost, gross unrealized losses and fair value of the debt securities by major interest type, mostly fixed interest, were as follows: | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Net unrealized | |||||||||||||||||||||||||
holding | |||||||||||||||||||||||||
Amortized cost | gains/(losses) | Fair value | |||||||||||||||||||||||
US$ thousands | |||||||||||||||||||||||||
Up to 2% | 34,945 | (217 | ) | 34,728 | |||||||||||||||||||||
2.05% - 2.951% | 4,687 | 63 | 4,750 | ||||||||||||||||||||||
39,632 | (154 | ) | 39,478 | ||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Net unrealized | |||||||||||||||||||||||||
holding | |||||||||||||||||||||||||
Amortized cost | gains/(losses) | Fair value | |||||||||||||||||||||||
US$ thousands | |||||||||||||||||||||||||
Up to 2% | 33,145 | (84 | ) | 33,061 | |||||||||||||||||||||
2.038% - 2.951% | 8,332 | 118 | 8,450 | ||||||||||||||||||||||
41,477 | 34 | 41,511 | |||||||||||||||||||||||
Activity in marketable securities in 2013 | US$ thousands | ||||||||||||||||||||||||
Balance at January 1, 2013 | 41,477 | ||||||||||||||||||||||||
Purchases of marketable securities | 11,384 | ||||||||||||||||||||||||
Discount of marketable securities | (729 | ) | |||||||||||||||||||||||
Proceeds from maturity of marketable securities | (12,500 | ) | |||||||||||||||||||||||
Balance at December 31, 2013 | 39,632 | ||||||||||||||||||||||||
The following table summarizes the gross unrealized losses on investment securities for which other-than-temporary impairments have not been recognized and the fair value of those securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2013: | |||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||
Held to maturity | Unrealized Losses | Fair value | Unrealized Losses | Fair value | Unrealized Losses | Fair value | |||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||||
and government debt | |||||||||||||||||||||||||
securities | (144 | ) | 19,313 | (99 | ) | 8,112 | (243 | ) | 27,425 | ||||||||||||||||
The unrealized losses on the investments were caused by interest rate increases. The Company has the ability and intent to hold these investments until maturity and it is more likely than not that the Company will not be required to sell any of the securities before recovery; therefore these investments are not considered other than temporarily impaired. |
Inventories
Inventories | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventories [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Note 5 - Inventories | |||||||||
31-Dec | |||||||||
2012 | 2013 | ||||||||
US$ thousands | |||||||||
Raw materials and components | 5,971 | 9,041 | |||||||
Products in process | 6,908 | 13,081 | |||||||
Finished products | 1,916 | 6,656 | |||||||
14,795 | 28,778 |
Property_Plant_and_Equipment_N
Property, Plant and Equipment, Net | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, Plant and Equipment, Net [Abstract] | ' | ||||||||
Property, Plant and Equipment, Net | ' | ||||||||
Note 6 - Property, Plant and Equipment, Net | |||||||||
31-Dec | |||||||||
2012 | 2013 | ||||||||
US$ thousands | |||||||||
Machinery and equipment | 3,240 | 4,028 | |||||||
Office furniture and equipment | 294 | 389 | |||||||
Leasehold improvements | 441 | 486 | |||||||
Property, plant and equipment | 3,975 | 4,903 | |||||||
Accumulated depreciation | (2,785 | ) | (3,424 | ) | |||||
Property, Plant and equipment, net | 1,190 | 1,479 | |||||||
Depreciation expense for the years ended December 31, 2011, 2012 and 2013 were US$ 379 thousand, US$ 454 thousand and US$ 639 thousand, respectively. | |||||||||
Assets_Held_and_Liability_for_
Assets Held and Liability for Employees' Severance Benefits | 12 Months Ended | ||
Dec. 31, 2013 | |||
Assets Held and Liability for Employees' Severance Benefits [Abstract] | ' | ||
Assets Held and Liability for Employees' Severance Benefits | ' | ||
Note 7 - Assets Held and Liability for Employees' Severance Benefits | |||
A. | Under Israeli law and labor agreements, Silicom is required to make severance payments to retired or dismissed employees and to employees leaving employment in certain other circumstances. | ||
In respect of the liability to the employees, individual insurance policies are purchased and deposits are made with recognized severance pay funds. | |||
The liability for severance pay is calculated on the basis of the latest salary paid to each employee multiplied by the number of years of employment. The liability is covered by the amounts deposited including accumulated income thereon as well as by the unfunded provision. | |||
B. | According to Section 14 to the Severance Pay Law ("Section 14") the payment of monthly deposits by a company into recognized severance and pension funds or insurance policies releases it from any additional severance obligation to the employees that have entered into agreements with the company pursuant to such Section 14. Commencing July 1, 2008, the Company has entered into agreements with a majority of its employees in order to implement Section 14. Therefore, as of that date, the payment of monthly deposits by the Company into recognized severance and pension funds or insurance policies releases it from any additional severance obligation to those employees that have entered into such agreements and therefore the Company incurs no additional liability since that date with respect to such employees. Amounts accumulated in the pension funds or insurance policies pursuant to Section 14 are not supervised or administrated by the Company and therefore neither such amounts nor the corresponding accrual are reflected in the balance sheet. | ||
C. | Consequently, the assets held for employees' severance benefits reported on the balance sheet, in respect of deposits for those employees who have signed agreements pursuant to Section 14, represent the redemption value of deposits made through June 30, 2008. The liability for employee severance benefits, with respect to those employees, represents the liability of the Company for employees' severance benefits as of June 30, 2008. | ||
As a result of the implementation of Section 14, as described above, the liability with respect to those employees is calculated on the basis of number of years of employment as of June 30, 2008, multiplied by the latest salary paid. The liability is covered by the amounts deposited, including accumulated income thereon, as well as by the unfunded provision. Such liability will be removed, either upon termination of employment or retirement. | |||
D. | Expenses recorded with respect to employees' severance payments for the years ended December 31, 2011, 2012 and 2013 were US$ 304 thousand, US$ 382 thousand and US$ 578 thousand, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies [Abstract] | ' | ||||
Commitments and Contingencies | ' | ||||
Note 8 - Commitments and Contingencies | |||||
A. | Royalty commitments | ||||
The Company is obligated to pay royalties to the Government of Israel and the Korea Israel Industrial Research and Development Foundation on revenues from product sales related to research and development, which was undertaken with Government grants and other grants. Since January 1, 1997, royalty rates are between 2% to 5%. The royalty rates applicable for the Company's research and development projects are 2% - 3.5%, except for one project that took place in the period between July 1, 1997 - January 31, 2000, where the royalty rate is 4%. | |||||
Royalties are payable from the commencement of sales of each of these products until the cumulative amount of the royalties paid equals 100% of the dollar linked amounts of the grants received, without interest, for projects approved prior to December 31, 2000, and with LIBOR interest, for amounts received after that date. | |||||
The Company's total outstanding obligation in respect of royalty-bearing participations received or accrued, net of royalties paid or accrued before interest, amounted to approximately US$ 2,960 thousand as at December 31, 2013 (US$ 2,960 thousand as at December 31, 2012). | |||||
B. | Lease commitments | ||||
The premises and facilities occupied by the Company are leased under various operating lease agreements. Furthermore, the Company has entered into several operating lease agreements for motor vehicles in Israel. | |||||
The agreements are in New Israeli Shekel (NIS) or in NIS, linked to the Israeli Consumer Price Index. | |||||
The minimum future rental payments under the above leases at exchange rates in effect on December 31, 2013, are as follows: | |||||
US$ thousands | |||||
Year ended December 31 | |||||
2014 | 944 | ||||
2015 | 634 | ||||
2016 and on | 491 | ||||
Of the amounts above, US$12 thousand in 2014, relate to related parties. | |||||
Rental expenses under the lease agreements for the years ended December 31, 2011, 2012 and 2013 were US$ 632 thousand, US$ 676 thousand and US$ 837 thousand, respectively. | |||||
C. Credit line | |||||
The Company has one line of credit provided to it by a bank (approximately US$ 160 thousand). The bank is allowed to cancel or change the line of credit with no advance notice. As at December 31, 2013, this credit line has not been used. | |||||
D. Outstanding Legal Proceeding | |||||
On March 2, 2012 Internet Machines LLC, a Texas limited liability company filed a patent infringement lawsuit in the United States District Court for the Eastern District of Texas (the "Court") against numerous defendants (including many switch manufacturers) with respect to certain patents for switches, and included the Company's US subsidiary amongst the list of defendants named in such lawsuit. The lawsuit claims that the defendants have infringed certain patents purported to be owned by Internet Machines LLC and seeks unspecified compensation for damages as well as injunctive relief. The defendants filed answers and counterclaims to the complaint asserting that they do not infringe any claims of the asserted patents and the claims of the patents are invalid and/or unenforceable. On September 4, 2012, the Court granted the defendants' motion to stay the pending litigation. While one of the Company's switch suppliers (which is also named as a defendant in the aforesaid lawsuit) has agreed to indemnify the Company with respect to certain liabilities, there is no certainty that the Company will ultimately be able to collect all or any amounts under such indemnity should the Company be found liable under the lawsuit. The Company is unable at this time to assess the likelihood of an unfavorable outcome or range of potential loss. |
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Shareholders' Equity [Abstract] | ' | ||||||||||||||||
Shareholders' Equity | ' | ||||||||||||||||
Note 9 - Shareholders' Equity | |||||||||||||||||
Share based compensation | |||||||||||||||||
A. | On July 21, 2004, the Board resolved, subject to shareholders' approval that was given on December 30, 2004, to adopt the Share Option Plan (2004) (the "2004 Plan"). Option grants to employees under the 2004 Plan, including terms of vesting and the exercise price, are subject to the Board of Directors' approval. Option grants to directors and certain other officers are generally subject to the approvals of the Compensation Committee as well as Board of Directors, and grants to directors or a CEO will also generally have to be approved by the Shareholders. The term of the options shall not exceed 10 years from the date that the option was granted. | ||||||||||||||||
The 2004 plan initially covered up to 282,750 options and subsequent to an amendment by the board in 2007 it covered up to 582,750 options. In August 2012, the Board of Directors increased the number of the ordinary shares available for issuance under the 2004 plan by an additional 500,000. All options are at a conversion rate of 1:1. | |||||||||||||||||
On October 21, 2013 the Board resolved to adopt the Global Share Incentive Plan (2013) (the "2013 plan") and to reserve up to 500,000 ordinary shares for issuance under the Plan to employees, directors, officers and consultants of the Company or of any subsidiary or affiliate of the Company. Grants under the 2013 Plan, whether as options, restricted stock units, restricted stock or other equity based awards, including their terms, are subject to the Board of Directors' approval. Grants to directors and certain other officers are generally subject to the approvals of the Compensation Committee as well as Board of Directors, and grants to directors or a CEO (and under certain circumstances certain other officers) will also have to be approved by the Shareholders. | |||||||||||||||||
B. | No options have been granted by the Company other than to employees and directors, as mentioned above. | ||||||||||||||||
C. | Options granted to Israeli residents may be granted under Section 102 of the Israeli Income Tax Ordinance pursuant to which the awards of options, or the ordinary shares issued upon their exercise, must be deposited with a trustee for at least two years following the date of grant. Under Section 102, any tax payable by an employee from the grant or exercise of the awards is deferred until the transfer of the awards or ordinary shares by the trustee to the employee or upon the sale of the awards or ordinary shares. | ||||||||||||||||
Gains on awards granted under the plans are subjected to capital gains tax of 25% to be paid by the employee, and the Company is not entitled to a tax deduction. | |||||||||||||||||
D. | On October 15, 2008, the Company granted, in the aggregate, 200,000 options to certain of its directors and employees under the 2004 Plan. In relation to this grant: | ||||||||||||||||
1 | The exercise price for the options (per ordinary share) was US$ 3.82 and the option expiration date was the earlier to occur of: (a) October 15, 2016; and (b) the closing price of the shares falling below US$ 1.91 at any time after the date of grant. 50% of the options vest and become exercisable on the second anniversary of the date of grant and the additional 50% of the options vest and become exercisable on the third anniversary of the date of the grant. | ||||||||||||||||
2 | The Company recognizes compensation expenses on these options based on estimated grant date fair value using the Monte Carlo option-pricing model with the following assumptions: | ||||||||||||||||
Average Risk-free interest rate (a) | 3.73% | ||||||||||||||||
Expected dividend yield | 0.00% | ||||||||||||||||
Average expected volatility (b) | 112.42% | ||||||||||||||||
Termination rate | 11% | ||||||||||||||||
Suboptimal rate (c) | 3.45 | ||||||||||||||||
(a) | Risk-free interest rate represents risk free US$ zero-coupon US Government Bonds at time of grant. | ||||||||||||||||
(b) | Expected average volatility represents a weighted average standard deviation rate for the price of the Company's ordinary shares on the NASDAQ National Market. | ||||||||||||||||
(c) | Suboptimal rate represents the multiple of the increase in the market share price on the day of grant of the option which, should it come to pass, will lead to exercise of the option by the employee. It is the average suboptimal rate of the Company and similar companies. | ||||||||||||||||
3 | No expenses were incurred during the year ended December 31, 2013 in relation to this grant. As at December 31, 2013, all expenses related to this grant were recognized. | ||||||||||||||||
E. | On December 21, 2010, the Company granted, in the aggregate, 137,500 options to certain of its directors and employees under the 2004 Plan. In relation to this grant: | ||||||||||||||||
1 | The exercise price for the options (per ordinary share) was US$ 18.82 and the Option expiration date was the earlier to occur of: (a) December 21, 2018; and (b) the closing price of the shares falling below US$ 9.41 at any time after the date of grant. 50% of the options vest and become exercisable on the second anniversary of the date of grant and the additional 50% of the options vest and become exercisable on the third anniversary of the date of the grant. | ||||||||||||||||
2 | The Company recognizes compensation expenses on these options based on estimated grant date fair value using the Binomial option-pricing model with the following assumptions: | ||||||||||||||||
Average Risk-free interest rate (a) | 3.00% | ||||||||||||||||
Expected dividend yield | 0.00% | ||||||||||||||||
Average expected volatility (b) | 82.64% | ||||||||||||||||
Termination rate | 9% | ||||||||||||||||
Suboptimal rate (c) | 3.45 | ||||||||||||||||
(a) | Risk-free interest rate represents risk free US$ zero-coupon US Government Bonds at time of grant. | ||||||||||||||||
(b) | Expected average volatility represents a weighted average standard deviation rate for the price of the Company's ordinary shares on the NASDAQ National Market. | ||||||||||||||||
(c) | Suboptimal rate represents the multiple of the increase in the market share price on the day of grant of the option which, should it come to pass, will lead to exercise of the option by the employee. It is the average suboptimal rate of the Company and similar companies. | ||||||||||||||||
3 | Compensation expenses incurred during the year ended December 31, 2013 in relation to this grant were approximately US$ 149 thousand. As at December 31, 2013, all expenses related to this grant were recognized. | ||||||||||||||||
F. | On September 13, 2012, the Company granted, in the aggregate, 240,000 options to certain of its directors and employees under the 2004 Plan. In relation to this grant: | ||||||||||||||||
1 | The exercise price for the options (per ordinary share) was US$ 15.28 and the Option expiration date was the earlier to occur of: (a) September 13, 2020; and (b) the closing price of the shares falling below US$ 7.64 at any time after the date of grant. 50% of the options vest and become exercisable on the second anniversary of the date of grant and the additional 50% of the options vest and become exercisable on the third anniversary of the date of the grant. | ||||||||||||||||
2 | The Company recognizes compensation expenses on these options based on estimated grant date fair value using the Binomial option-pricing model with the following assumptions: | ||||||||||||||||
Average Risk-free interest rate (a) | 1.33% | ||||||||||||||||
Expected dividend yield | 0.00% | ||||||||||||||||
Average expected volatility (b) | 64.71% | ||||||||||||||||
Termination rate | 9% | ||||||||||||||||
Suboptimal rate (c) | 3.2 | ||||||||||||||||
(a) | Risk-free interest rate represents risk free US$ zero-coupon US Government Bonds at time of grant. | ||||||||||||||||
(b) | Expected average volatility represents a weighted average standard deviation rate for the price of the Company's ordinary shares on the NASDAQ National Market. | ||||||||||||||||
(c) | Suboptimal rate represents the multiple of the increase in the market share price on the day of grant of the option which, should it come to pass, will lead to exercise of the option by the employee. It is the average suboptimal rate of the Company and similar companies. | ||||||||||||||||
3 | Compensation expenses incurred during the year ended December 31, 2013 in relation to this grant were approximately US$ 519 thousand. As at December 31, 2013, there was approximately US$ 566 thousand of unrecognized compensation costs related to this grant to be recognized over a weighted average period of 1.19 years. | ||||||||||||||||
G. | The following table summarizes information regarding stock options as at December 31, 2013: | ||||||||||||||||
Options outstanding | Options exercisable | ||||||||||||||||
Weighted average | Weighted average | ||||||||||||||||
remaining | remaining | ||||||||||||||||
Exercise price | Number | contractual life | Number | contractual life | |||||||||||||
US$ | of options | (in years) | of options | (in years) | |||||||||||||
18.82 | 42,500 | 4.97 | 42,500 | 4.97 | |||||||||||||
15.28 | 230,250 | 6.7 | - | - | |||||||||||||
272,750 | 42,500 | ||||||||||||||||
The aggregate intrinsic value of options outstanding as of December 31, 2012 and 2013 is US$ 1,199 thousand and US$ 8,152 thousand, respectively. | |||||||||||||||||
The aggregate intrinsic value of options exercisable as of December 31, 2012 and 2013 is US$ 566 thousand and US$ 1,143 thousand, respectively. | |||||||||||||||||
The total intrinsic value of options exercised during the year ended December 31, 2012 and 2013, is US$ 1,191 thousand and US$ 1,119 thousand, respectively. | |||||||||||||||||
The intrinsic value of the options at the date of grant is zero. | |||||||||||||||||
H. | The stock option activity under the abovementioned plans is as follows: | ||||||||||||||||
Weighted | |||||||||||||||||
Weighted | average | ||||||||||||||||
Number | average | grant date | |||||||||||||||
of options | exercise price | fair value | |||||||||||||||
US$ | US$ | ||||||||||||||||
Balance at January 1, 2011 | 305,825 | ||||||||||||||||
Exercised | (45,400 | ) | 3.62 | 1.75 | |||||||||||||
Forfeited | (3,000 | ) | 16.32 | 7.54 | |||||||||||||
Balance at December 31, 2011 | 257,425 | ||||||||||||||||
Granted | 240,000 | 15.28 | 6.54 | ||||||||||||||
Exercised | (82,338 | ) | 3.35 | 1.81 | |||||||||||||
Forfeited | (2,000 | ) | 15.28 | 6.54 | |||||||||||||
Balance at December 31, 2012 | 413,087 | ||||||||||||||||
Exercised | (132,587 | ) | 14.28 | 6.61 | |||||||||||||
Forfeited | (7,750 | ) | 15.28 | 6.54 | |||||||||||||
Balance at December 31, 2013 | 272,750 | ||||||||||||||||
Exercisable at December 31, 2013 | 42,500 | ||||||||||||||||
I. | During 2011, 2012 and 2013, the Company recorded share-based compensation expenses. The following summarizes the allocation of the stock-based compensation expenses: | ||||||||||||||||
Year ended December 31 | |||||||||||||||||
2011 | 2012 | 2013 | |||||||||||||||
US$ thousands | US$ thousands | US$ thousands | |||||||||||||||
Cost of sales | 24 | 46 | 103 | ||||||||||||||
Research and development costs | 96 | 130 | 193 | ||||||||||||||
Selling and marketing expenses | 134 | 159 | 177 | ||||||||||||||
General and administrative expenses | 183 | 209 | 195 | ||||||||||||||
437 | 544 | 668 |
Sales
Sales | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Sales [Abstract] | ' | ||||||||||||
Sales | ' | ||||||||||||
Note 10 - Sales | |||||||||||||
A. | Information on sales by geographic distribution: | ||||||||||||
The Company has one operating segment. | |||||||||||||
Sales are attributed to geographic distribution based on the location of the customer. | |||||||||||||
Year ended December 31 | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
US$ thousands | |||||||||||||
North America | 29,627 | 33,606 | 55,655 | ||||||||||
Europe | 5,174 | 7,277 | 9,257 | ||||||||||
Rest of the world | 4,832 | 7,846 | 8,386 | ||||||||||
39,633 | 48,729 | 73,298 | |||||||||||
All property, plant and equipment are located in Israel. | |||||||||||||
B. | Sales to single customers exceeding 10% of sales (US$ thousands): | ||||||||||||
Year ended December 31 | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
US$ thousands | |||||||||||||
Customer "A" | 4,882 | 10,809 | 24,512 | ||||||||||
Customer "B" | 4,195 | 8,714 | * | ||||||||||
* | Less than 10% of sales. |
Financial_Income_Expenses_Net
Financial Income (Expenses), Net | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Financial Income (Expenses), Net [Abstract] | ' | ||||||||||||
Financial Income (Expenses), Net | ' | ||||||||||||
Note 11 - Financial Income (Expenses), Net | |||||||||||||
Year ended December 31 | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
US$ thousands | |||||||||||||
Interest income | 1,292 | 1,360 | 1,290 | ||||||||||
Interest expenses | (499 | ) | (561 | ) | (643 | ) | |||||||
Exchange rate differences, net | (231 | ) | 96 | (89 | ) | ||||||||
Bank charges | (123 | ) | (143 | ) | (154 | ) | |||||||
439 | 752 | 404 |
Taxes_on_Income
Taxes on Income | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Taxes on Income [Abstract] | ' | ||||||||||||
Taxes on Income | ' | ||||||||||||
Note 12 - Taxes on Income | |||||||||||||
A. | Measurement of results for tax purposes under the Israeli Income Tax Regulations (Rules for Maintaining Accounting Records of Foreign Invested Companies and Certain Partnerships and Determining Their Taxable Income) - 1986 | ||||||||||||
As a "foreign invested company" (as defined in the Israeli Law for the Encouragement of Capital Investments-1959), the Company's management has elected to apply Income Tax Regulations (Rules for Maintaining Accounting Records of Foreign Invested Companies and Certain Partnerships and Determining Their Taxable Income) - 1986 from January 1, 2002. Accordingly, its taxable income or loss is calculated in US Dollars. | |||||||||||||
B. | Israel tax reform | ||||||||||||
Presented hereunder are the tax rates relevant to the Company in the years 2011-2013: | |||||||||||||
2011 - 24% | |||||||||||||
2012 - 25% | |||||||||||||
2013 - 25% | |||||||||||||
On August 5, 2013 the Knesset passed the Law for Changes in National Priorities (Legislative Amendments for Achieving Budget Objectives in the Years 2013 and 2014) - 2013, by which, inter alia, the corporate tax rate would be raised by 1.5% to a rate of 26.5% as from 2014. | |||||||||||||
C. | Tax benefits under the Israeli Law for the Encouragement of Capital Investments, 1959 (hereinafter - the "Law") | ||||||||||||
1. | Rates | ||||||||||||
a. | The Company has elected to be taxed under the alternative benefits method, whereby the Company waives grants in return for tax exemptions. For the manufacturing plant in Yokneam the Company is entitled to an exemption from tax on its taxable income for a period of ten years beginning from the year of election; For the research and development center the Company is entitled to an exemption from tax on its taxable income for two years beginning from the year of election, and not more than 25%, on its taxable income in the next eight years. | ||||||||||||
b. | In the event of distribution by the Company of cash dividends out of its retained earnings that were tax exempt due to the "Approved Enterprise" or "Benefited Enterprise" (See Note 12C 4) status, the Company would be subjected to a maximum of 25% corporate tax on the amount distributed, and a further 15% withholding tax would be deducted from the amounts distributed to the shareholders. | ||||||||||||
Out of the Company's retained earnings as of December 31, 2013 and 2012, approximately US$ 50,683 thousand and US$ 30,779 thousand are tax-exempt respectively, due to "Approved Enterprise" and "Benefited Enterprise" status. If such tax-exempt income is distributed by cash dividend (including a liquidation dividend), it would be taxed at the reduced corporate tax rate applicable to such profits (up to 25%) and an income tax liability of up to approximately US$ 12,671 thousand and US$ 7,695 thousand would be incurred as of December 31, 2013 and 2012, respectively. The Company anticipates that any future dividends distributed pursuant to its dividend policy, will be distributed from income sources which will not impose additional tax liabilities on the company. The Company intends to reinvest the amount of its tax-exempt income. Accordingly, no deferred income taxes have been provided on income attributable to the Company's "Approved Enterprise" or "Benefited Enterprise" as the undistributed tax exempt income is essentially permanent in duration. | |||||||||||||
c. | Should the Company derive income from sources other than the "Approved Enterprise" or "Benefited Enterprise" during the relevant period of benefits, such income will be taxable at the regular corporate tax rates for the applicable year. | ||||||||||||
2 | Accelerated depreciation | ||||||||||||
The Company is entitled to claim accelerated depreciation for a period of five years in respect of property, plant and equipment of an "Approved Enterprise"and "Benefited Enterprise". The Company has not utilized this benefit to date. | |||||||||||||
3 | Conditions for entitlement to the tax benefits | ||||||||||||
Entitlement to the tax benefits of the Company's "Approved Enterprise"and "Benefited Enterprise" is dependent upon the Company fulfilling the conditions stipulated by the Law and the regulations published thereunder, as well as the criteria set forth in the approval for the specific investment in the Company's "Approved Enterprise". | |||||||||||||
In the event of failure to comply with these conditions, the tax benefits may be canceled, and the Company may be required to refund the amount of the cancelled benefits, with the addition of linkage differences and interest. As of the date of these financial statements, the Company meets the compliance with these conditions. | |||||||||||||
4. | Amendments to the Law | ||||||||||||
On March 30, 2005, the Israeli Parliament approved a reform of the above Law. The primary changes are as follows: | |||||||||||||
(a) | Companies that meet the criteria of the "Benefited Enterprise" (formerly known as Alternative Path of "Approved Enterprise") benefits will receive those benefits without prior approval. In addition, there will be no requirement to file reports with the Investment Center. Companies will be required to notify the Israeli Tax Authorities regarding the implementation of the "Benefited Enterprise". Audits will take place via the Israeli Income Tax Authorities as part of the tax audits. Request for pre-ruling is possible. | ||||||||||||
(b) | Tax benefits of the "Benefited Enterprise" comparing to regular corporate tax regulations, include lower tax rates or no tax depending on the area and the path chosen, lower tax rates on dividend income and accelerated tax depreciation. The tax benefits do not differ from those prior the amendment. | ||||||||||||
(c) | In order to receive the tax benefits in the Grant Path or the "Benefited Enterprise", the "Industrial Company" must contribute to the economic independence of Israel's economy in one of the following ways: | ||||||||||||
1 | Its primary activity is in the Biotechnology or Nanotechnology fields and pre-approval is received from the head of research and development at the Office of the Chief Scientist; | ||||||||||||
2 | Its revenue from a specific country is not greater than 75% of its total revenues that year; | ||||||||||||
3 | 25% or more of its revenues are derived from a specific foreign market of at least 14 million residents. | ||||||||||||
(d) | Upon the establishment of a "Benefited Enterprise", an investment of at least NIS 300 thousand in production machinery and equipment within three years is required. | ||||||||||||
(e) | For an expansion, a company is required to invest within three years the higher of NIS 300 thousand in production machinery and equipment or a certain percentage of its existing production machinery and equipment. | ||||||||||||
The amendments to the Law do not retroactively apply for investment programs having an "Approved Enterprise" approval certificate from the Investment Center issued up to December 31, 2004. Therefore, the amendments do not impact an existing "Approved Enterprise" that received prior written approval. The new tax regime shall apply for a new "Approved Enterprise" and for an "Approved Enterprise" expansion for which the elected year is 2004 onwards. | |||||||||||||
In respect to the abovementioned amendments to the Law, the Company selected the tax years 2004, 2006, 2009 and 2012 as the years of election. The Israeli Tax Authorities, in a pre-ruling issued to the Company, have established a formula for the allocation of the Company's taxable income that will be subject to the relevant different tax rates as permitted under the amendments to the Law. | |||||||||||||
On December 29, 2010 the Knesset approved the Economic Policy Law for 2011-2012, which includes an amendment to the Law for the Encouragement of Capital Investments - 1959 (hereinafter - "the Amendment to the Law"). The Amendment to the Law is effective from January 1, 2011 and its provisions will apply to preferred income derived or accrued in 2011 and thereafter by a Preferred Company, per the definition of these terms in the Amendment to the Law. | |||||||||||||
Companies can choose to not be included in the scope of the Amendment to the Law and to stay in the scope of the law before its amendment until the end of the benefits period. The 2012 tax year is the last year companies can choose as the year of election, providing that the minimum qualifying investment began in 2010. | |||||||||||||
The Amendment provides that only companies in Development Area A will be entitled to the grants track and that they will be entitled to receive benefits under this track and under the tax benefits track at the same time. In addition, the existing tax benefit tracks were eliminated (the tax exempt track, the "Ireland track" and the "Strategic" track) and two new tax tracks were introduced in their place, a "Preferred Enterprise" and a "Special Preferred Enterprise", which mainly provide a uniform and reduced tax rate for all the company's income entitled to benefits, such as: for a "Preferred Enterprise" - in the 2011-2012 tax years - a tax rate of 10% for Development Area A and of 15% for the rest of the country, in the 2013-2014 tax years - a tax rate of 7% for Development Area A and of 12.5% for the rest of the country, and as from the 2015 tax year - 6% for Development Area A and 12% for the rest of the country. Furthermore, an enterprise that meets the definition of a "Special Preferred Enterprise" is entitled to benefits for a period of 10 consecutive years and a reduced tax rate of 5% if it is located in Development Area A or of 8% if it is located in a different area. | |||||||||||||
On August 5, 2013 the Knesset passed the Law for Changes in National Priorities (Legislative Amendments for Achieving Budget Objectives in the Years 2013 and 2014) - 2013, which cancelled the planned tax reduction so that as from the 2014 tax year the tax rate on preferred income will be 9% for Development Area A and 16% for the rest of the country. Furthermore, an enterprise that meets the definition of a "Special Preferred Enterprise" is entitled to benefits for a period of 10 consecutive years and a reduced tax rate of 5% if it is located in Development Area A or of 8% if it is located in a different area. | |||||||||||||
The Amendment also provides that no tax will apply to a dividend distributed out of preferred income to a shareholder that is a company, for both the distributing company and the shareholder. A tax rate of 15% shall apply to a dividend distributed out of preferred income to an individual shareholder or foreign resident, subject to double taxation prevention treaties. The Law for Changes in National Priorities (Legislative Amendments for Achieving Budget Objectives in the Years 2013 and 2014) - 2013 raised to 20% the tax rate on a dividend distributed to an individual and foreign resident out of preferred income as from January 1, 2014. | |||||||||||||
Furthermore, the Amendment provides relief with respect to the non-payment of tax on a dividend received by an Israeli company from profits of an approved/alternative/beneficiary enterprise that accrued in the benefits period according to the version of the law before its amendment, if the company distributing the dividend notifies the tax authorities by June 30, 2015 that it is applying the provisions of the Amendment and the dividend is distributed after the date of the notice (hereinafter - "the relief"). Furthermore, a distribution from profits of the exempt enterprise will be subject to tax by the distributing company. | |||||||||||||
The Company complies with the conditions provided in the amendment to the Law for the Encouragement of Capital Investments for inclusion in the scope of the tax benefits track. The Company intends to implement the Amendment as from the 2014 tax year. Therefore, the deferred tax balances as at December 31, 2013 were adjusted by the amount of US$ 399 thousand. | |||||||||||||
D. | Tax benefits under the Israeli Law for Encouragement of Industry (Taxes), 1969 | ||||||||||||
The Company considers that it currently qualifies as an "Industrial Company" under the above Law. As such, it is entitled to certain tax benefits, mainly the right to deduct share issuance costs over three years for tax purposes in the event of a public offering. | |||||||||||||
E. | Taxation of the subsidiary | ||||||||||||
The subsidiary files tax returns to US Federal tax authorities and to state tax authorities in the states of New Jersey and California. | |||||||||||||
F. | Tax assessments | ||||||||||||
For the Israeli jurisdiction the Company has final tax assessments for all years up to and including the tax year ended December 31, 2012. For the US Federal jurisdictions, the subsidiary has final tax assessments for all years up to and including the tax year ended December 31, 2009. For the New-Jersey state jurisdiction, the subsidiary has final tax assessments for all years up to and including the tax year ended December 31, 2008. For the California state jurisdiction, the subsidiary has open tax assessments for 2011 through 2013. | |||||||||||||
G. | Income before income taxes and income taxes expense (benefit) included in the consolidated statements of operations | ||||||||||||
Year ended December 31 | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
US$ thousands | |||||||||||||
Income before income taxes: | |||||||||||||
Israel | 8,899 | 10,086 | 16,857 | ||||||||||
Foreign jurisdiction | 11 | 695 | 1,125 | ||||||||||
8,910 | 10,781 | 17,982 | |||||||||||
Current taxes: | |||||||||||||
Israel | 619 | 784 | 949 | ||||||||||
Foreign jurisdiction | - | 116 | 479 | ||||||||||
619 | 900 | 1,428 | |||||||||||
Tax (benefits) expenses relating to prior years: | |||||||||||||
Israel | (38 | ) | (12 | ) | 29 | ||||||||
Deferred taxes: | |||||||||||||
Israel | 73 | (3 | ) | (552 | ) | ||||||||
Foreign jurisdiction | 13 | 25 | - | ||||||||||
86 | 22 | (552 | ) | ||||||||||
Income tax expense | 667 | 910 | 905 | ||||||||||
H. | Deferred income taxes | ||||||||||||
The tax effects of significant items comprising the Company's deferred tax assets are as follows: | |||||||||||||
31-Dec | 31-Dec | ||||||||||||
2012 | 2013 | ||||||||||||
US$ thousands | US$ thousands | ||||||||||||
Deferred tax assets: | |||||||||||||
Accrued employee benefits | 147 | 248 | |||||||||||
Research and development costs | 8 | 458 | |||||||||||
PPE | 5 | 5 | |||||||||||
Other | 1 | 2 | |||||||||||
Total gross deferred tax assets | 161 | 713 | |||||||||||
Net deferred tax assets | 161 | 713 | |||||||||||
Current | 47 | 274 | |||||||||||
Non-current | 114 | 439 | |||||||||||
Total | 161 | 713 | |||||||||||
I. | Reconciliation of the statutory tax expense to actual tax expense | ||||||||||||
Year ended December 31 | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
US$ thousands | |||||||||||||
Income before income taxes | 8,910 | 10,781 | 17,982 | ||||||||||
Statutory tax rate in Israel | 24 | % | 25 | % | 25 | % | |||||||
2,138 | 2,695 | 4,496 | |||||||||||
Increase (decrease) in taxes resulting from: | |||||||||||||
Non-deductible operating expenses | 123 | 159 | 205 | ||||||||||
Prior year adjustments | (38 | ) | (12 | ) | 29 | ||||||||
Change in valuation allowance | 12 | (63 | ) | - | |||||||||
Tax effect due to "Approved Enterprise" status | (1,640 | ) | (2,063 | ) | (4,396 | ) | |||||||
Taxes related to foreign jurisdictions | - | 30 | 198 | ||||||||||
Changes in tax rate | 65 | (58 | ) | 399 | |||||||||
Other | 7 | 222 | (26 | ) | |||||||||
Income tax expense | 667 | 910 | 905 | ||||||||||
J. | Accounting for uncertainty in income taxes | ||||||||||||
ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements. This standard prescribes a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. ASC 740-10 requires significant judgment in determining what constitutes an individual tax position as well as assessing the outcome of each tax position. | |||||||||||||
During 2011, 2012 and 2013 the Company and its subsidiary did not have any unrecognized tax benefits and thus, no related interest and penalties were accrued. | |||||||||||||
In addition, the Company and its subsidiary do not expect that the amount of unrecognized tax benefits will change significantly within the next twelve months. | |||||||||||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2013 | |
Fair Value of Financial Instruments [Abstract] | ' |
Fair Value of Financial Instruments | ' |
Note 13 - Fair Value of Financial Instruments | |
The Company's financial instruments consist of cash and cash equivalents, short-term deposits, marketable securities, trade and other receivables and trade accounts payable. The carrying amounts of these financial instruments, except for marketable securities, approximate fair value because of the short maturity of these investments. Assets held for severance benefits are recorded at their current cash redemption value. | |
The fair value of marketable securities is presented in Note 4 to these consolidated financial statements. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Note 14 - Subsequent Events | |
On March 18, 2014 Silicom's Board of Directors declared a dividend of US $1.00 per share payable on April 17, 2014 to shareholders of record as of April 3, 2014, and in the aggregate amount of approximately US $7.2 million for 2013. | |
Since January 2, 2014 the company's shares have been traded on the NASDAQ Global Select Market (prior thereto they were traded on the NASDAQ Global Market). |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policy) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||||
Financial Statements in US Dollars | ' | ||||||||||||
A. | Financial statements in US dollars | ||||||||||||
Substantially all sales of the Company are made outside of Israel (see Note ##Note110A regarding geographical distribution), in US dollars ("dollars"). Most purchases of materials and components, and a significant part of the marketing costs are made or incurred, primarily in dollars. Therefore, the functional currency of the Company is the dollar. | |||||||||||||
Transactions and monetary balances in other currencies are translated into the functional currency using the current exchange rate. | |||||||||||||
All exchange gains and losses from remeasurement of monetary balance sheet items denominated in non-dollar currencies are reflected in earnings when they arise. | |||||||||||||
Basis of Presentation | ' | ||||||||||||
B. | Basis of presentation | ||||||||||||
The accompanying consolidated financial statements have been prepared with accounting principles generally accepted in the United States of America and include the accounts of the Company and its wholly-owned subsidiary in the United States. All intercompany balances and transactions have been eliminated in consolidation. | |||||||||||||
Estimates and Assumptions | ' | ||||||||||||
C. | Estimates and assumptions | ||||||||||||
The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the useful lives of PPE; allowances for doubtful accounts, deferred tax assets, inventory, investments, share-based compensation and other contingencies. | |||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||
D. | Cash and cash equivalents | ||||||||||||
The Company considers highly liquid investments with original maturities of three months or less from the date of deposit to be cash equivalents. | |||||||||||||
Short-Term Bank Deposits | ' | ||||||||||||
E. | Short-term bank deposits | ||||||||||||
Short term bank deposits consist of bank deposits with original maturities of more than three months and up to twelve months. | |||||||||||||
As of December 31, 2013 the Company's short-term bank deposits consist of bank deposits in US dollars that bear fixed annual interest of 0.35% (2012 1.81%). These short-term bank deposits are held with a major Israeli bank, and their use and withdrawal are not subject to any restrictions. | |||||||||||||
Marketable Securities | ' | ||||||||||||
F. | Marketable securities | ||||||||||||
Investment securities at December 31, 2012 and 2013 consist of corporate debt and government debt. | |||||||||||||
The Company classifies its marketable securities as held-to-maturity as they are debt securities in which the Company has the intent and ability to hold to maturity. Held-to-maturity (HTM) debt securities are recorded at amortized cost adjusted for the amortization or accretion of premiums or discounts. | |||||||||||||
Premiums and discounts on debt securities are amortized or accreted over the life of the related held-to-maturity security as an adjustment to yield using the effective interest method. Such amortization and accretion is included in the "Financial income, net" line item in the consolidated statements of operations. | |||||||||||||
When other-than-temporary impairment has occurred, the amount of the other-than-temporary impairment recognized in earnings depends on whether the Company intends to sell the security or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss. | |||||||||||||
A decline in the market value of HTM security below cost that is deemed to be other than temporary results in an impairment to reduce the carrying amount to fair value. To determine whether an impairment is other than temporary, the Company considers all available information relevant to the collectibility of the security, including past events, current conditions, and reasonable and supportable forecasts when developing estimate of cash flows expected to be collected. Evidence considered in this assessment includes the reasons for the impairment, the severity and duration of the impairment, changes in value subsequent to year end, forecasted performance of the investee, and the general market condition in the geographic area or industry the investee operates in. | |||||||||||||
If the Company intends to sell the security or it is more likely than not will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss, the other-than-temporary impairment is recognized in earnings equal to the entire difference between the investment's amortized cost basis and its fair value at the balance sheet date. If the Company does not intend to sell the security and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss, the other-than-temporary impairment is separated into the amount representing the credit loss and the amount related to all other factors. The amount of the total other-than-temporary impairment related to the credit loss is recognized in earnings. | |||||||||||||
Trade Accounts Receivable, Net | ' | ||||||||||||
G. | Trade accounts receivable, net | ||||||||||||
Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. The Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and its customers' financial condition, the amount of receivables in dispute, and the current receivables aging and current payment patterns. | |||||||||||||
As of December 31, 2012 and 2013, the provision for doubtful accounts receivable amounted to US$ 20 thousand. | |||||||||||||
Inventories | ' | ||||||||||||
H. | Inventories | ||||||||||||
Inventories are stated at the lower of cost or market. Cost is determined using the "weighted average-cost" method. | |||||||||||||
The Company writes down obsolete or slow moving inventory to its market value, on a quarterly basis. | |||||||||||||
Assets Held for Employees' Severance Benefits | ' | ||||||||||||
I. | Assets held for employees' severance benefits | ||||||||||||
Assets held for employees' severance benefits represent contributions to severance pay funds and cash surrender value of insurance policies. The assets are recorded at their current cash redemption value. | |||||||||||||
Property, Plant and Equipment | ' | ||||||||||||
J. | Property, plant and equipment | ||||||||||||
Property, plant and equipment are stated at cost Net of accumulated depreciation. Depreciation is calculated on the straight-line basis over the estimated useful life of the assets at the following annual rates: | |||||||||||||
% | |||||||||||||
Machinery and equipment | 15 - 33 | ||||||||||||
Office furniture and equipment | Jun-33 | ||||||||||||
Leasehold improvements | 20-Oct | ||||||||||||
Depreciation methods, useful lives and residual values are reviewed at the end of each reporting year and adjusted if appropriate. | |||||||||||||
Long Lived Assets | ' | ||||||||||||
K. | Intangible assets | ||||||||||||
In 2013, the Company acquired intellectual property (the "IP") related to a Virtualization Off-Load Engine developed by Net Perform in the amount of US$ 200 thousand. The estimated useful life is 3 years. Amortization expenses recorded on a straight-line basis. The amortization of the IP in 2013 was US$ 20 thousand and the amortized cost as of December 31, 2013 was US$ 180 thousand. | |||||||||||||
Revenue Recognition | ' | ||||||||||||
M. | Revenue recognition | ||||||||||||
Revenues from sales of products are recognized upon delivery provided that the collection of the resulting receivable is reasonably assured, there is persuasive evidence of an arrangement, no significant obligations in respect of installation remain and the price is fixed or determinable. | |||||||||||||
Sales taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and, therefore, are excluded from revenues in the consolidated statements of operations. | |||||||||||||
Research and Development Costs | ' | ||||||||||||
N. | Research and development costs | ||||||||||||
Research and development costs are expensed as incurred. | |||||||||||||
Royalty Bearing Participations | ' | ||||||||||||
O. | Royalty bearing participations | ||||||||||||
Royalty bearing participation from the Government of Israel for funding research and development activities are recognized at the time the Company is entitled to such grants based on the related cost incurred. See also Note 8A. | |||||||||||||
Royalty expenses are recognized pursuant to the sale of related products and are classified as cost of sales. | |||||||||||||
Allowance for Product Warranty | ' | ||||||||||||
P. | Allowance for product warranty | ||||||||||||
The Company grants service warranties related to certain products to end-users. The Company estimates its obligation for such warranties to be immaterial on the basis of historical experience. Accordingly, these financial statements do not include an accrual for warranty obligations. | |||||||||||||
Treasury Shares | ' | ||||||||||||
Q. | Treasury shares | ||||||||||||
Treasury shares are recorded at cost and presented as a reduction of shareholders' equity. | |||||||||||||
Income Taxes | ' | ||||||||||||
R. | Income taxes | ||||||||||||
Deferred taxes are accounted for under the asset and liability method based on the estimated future tax effects of temporary differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the consolidated statements of operations in the period that includes the enactment date. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. | |||||||||||||
Share-Based Compensation | ' | ||||||||||||
S. | Share-based compensation | ||||||||||||
The Company recognizes compensation expense based on estimated grant date fair value in accordance with ASC Topic 718, Compensation -Stock Compensation as follows: | |||||||||||||
When portions of an award vest in increments during the requisite service period (graded-vesting award), the Company's accounting policy is to recognize compensation cost for the award over the requisite service period for each separately vesting portion of the award. | |||||||||||||
Income Per Ordinary Share | ' | ||||||||||||
T. | Basic and diluted earnings per share | ||||||||||||
Basic income per ordinary share is calculated by dividing the net income attributable to ordinary shares, by the weighted average number of ordinary shares outstanding. Diluted income per ordinary share calculation is similar to basic income per ordinary share except that the weighted average of common shares outstanding is increased to include outstanding potential common shares during the period if dilutive. Potential common shares arise from stock options and the dilutive effect is reflected by the application of the treasury stock method. | |||||||||||||
The following table summarizes information related to the computation of basic and diluted income per ordinary share for the years indicated. | |||||||||||||
Year ended December 31 | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Net income attributable to ordinary shares | |||||||||||||
(US$ thousands) | 8,243 | 9,871 | 17,077 | ||||||||||
Weighted average number of ordinary shares outstanding | |||||||||||||
used in basic income per ordinary share calculation | 6,896,215 | 6,933,576 | 7,103,021 | ||||||||||
Add assumed exercise of outstanding dilutive potential | |||||||||||||
ordinary shares | 98,377 | 34,729 | 143,011 | ||||||||||
Weighted average number of ordinary shares outstanding | |||||||||||||
used in diluted income per ordinary share calculation | 6,994,592 | 6,968,305 | 7,246,032 | ||||||||||
Basic income per ordinary shares (US$) | 1.195 | 1.424 | 2.404 | ||||||||||
Diluted income per ordinary shares (US$) | 1.178 | 1.417 | 2.357 | ||||||||||
Number of options and warrants excluded | |||||||||||||
from the diluted earnings per share calculation | |||||||||||||
because of anti-dilutive effect | 135,000 | 135,000 | - | ||||||||||
Comprehensive Income | ' | ||||||||||||
U. | Comprehensive Income | ||||||||||||
For the years ended December 31, 2011, 2012 and 2013, comprehensive income equals net income. | |||||||||||||
Fair Value Measurements | ' | ||||||||||||
V. | Fair Value Measurements | ||||||||||||
The Company's financial instruments include mainly cash and cash equivalents, accounts receivable, short term bank deposits, marketable securities and accounts payable. The carrying amounts of these financial instruments approximate their fair value. For marketable securities fair value see Note 4. | |||||||||||||
The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: | |||||||||||||
Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. | |||||||||||||
Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. | |||||||||||||
Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. | |||||||||||||
Concentrations of Risks | ' | ||||||||||||
W. | Concentrations of risks | ||||||||||||
(1) | Credit risk | ||||||||||||
Financial instruments, which potentially subject the Company to significant concentrations of credit risk, consist principally of cash and cash equivalents, short-term bank deposits, marketable securities, trade receivables and assets held for employees' severance benefits. Cash and cash equivalents balances of the Company, which are subject to credit risk, consist of cash accounts held with major financial institutions. Short-term bank deposits balances of the Company, which are subject to credit risk, consist of short-term bank deposits held with a major Israeli Bank. Marketable securities consist of held to maturity marketable securities issued by highly rated corporations or governmental securities. As of December 31, 2012 and 2013, the ratings of the securities in the Company's portfolio were at least A. Nonetheless, these investments are subject to general credit and counterparty risks (such as that the counterparty to a financial instrument fails to meet its contractual obligations). Concentrations of credit risk with respect to trade receivables are limited due to the Company's diverse customer base and their wide geographical dispersion. The Company closely monitors extensions of credit and has never experienced significant credit losses. | |||||||||||||
(2) | Dominant customers | ||||||||||||
The Company depends on a small amount of customers for its products. The Company's top three customers accounted for approximately 50% of its revenues in 2013. The Company expects that a small number of customers will continue to account for a significant portion of its revenues for the foreseeable future. | |||||||||||||
Liabilities for Loss Contingenices | ' | ||||||||||||
X. | Liabilities for loss contingencies | ||||||||||||
Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||||
Depreciation of Property, Plant and Equipment | ' | ||||||||||||
Depreciation is calculated on the straight-line basis over the estimated useful life of the assets at the following annual rates: | |||||||||||||
% | |||||||||||||
Machinery and equipment | 15 - 33 | ||||||||||||
Office furniture and equipment | Jun-33 | ||||||||||||
Leasehold improvements | 20-Oct | ||||||||||||
Computation of Basic and Diluted Income Per Ordinary Share | ' | ||||||||||||
The following table summarizes information related to the computation of basic and diluted income per ordinary share for the years indicated. | |||||||||||||
Year ended December 31 | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
Net income attributable to ordinary shares | |||||||||||||
(US$ thousands) | 8,243 | 9,871 | 17,077 | ||||||||||
Weighted average number of ordinary shares outstanding | |||||||||||||
used in basic income per ordinary share calculation | 6,896,215 | 6,933,576 | 7,103,021 | ||||||||||
Add assumed exercise of outstanding dilutive potential | |||||||||||||
ordinary shares | 98,377 | 34,729 | 143,011 | ||||||||||
Weighted average number of ordinary shares outstanding | |||||||||||||
used in diluted income per ordinary share calculation | 6,994,592 | 6,968,305 | 7,246,032 | ||||||||||
Basic income per ordinary shares (US$) | 1.195 | 1.424 | 2.404 | ||||||||||
Diluted income per ordinary shares (US$) | 1.178 | 1.417 | 2.357 | ||||||||||
Number of options and warrants excluded | |||||||||||||
from the diluted earnings per share calculation | |||||||||||||
because of anti-dilutive effect | 135,000 | 135,000 | - | ||||||||||
Cash_and_Cash_Equivalents_Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Cash and Cash Equivalents [Abstract] | ' | ||||||||
Cash and Cash Equivalents | ' | ||||||||
31-Dec | |||||||||
2012 | 2013 | ||||||||
US$ thousands | |||||||||
Cash | 13,248 | 10,593 | |||||||
Cash equivalents * | 58 | 2,404 | |||||||
13,306 | 12,997 | ||||||||
* Comprised mainly of deposits in banks as at December 31, 2012 and 2013 carrying a weighted average interest rate of 0.11% and 0.74%, respectively. |
Marketable_Securities_Tables
Marketable Securities (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Marketable Securities [Abstract] | ' | ||||||||||||||||||||||||
Held-to-Maturity Securities | ' | ||||||||||||||||||||||||
The Company's investment in marketable securities as of December 31, 2012 and 2013 are classified as "held-to-maturity" and consist of the following: | |||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
unrealized | unrealized | ||||||||||||||||||||||||
Amortized | holding | holding | Aggregate | ||||||||||||||||||||||
cost basis** | gains | (losses) | fair value* | ||||||||||||||||||||||
US$ thousands | |||||||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||
Held to maturity: | |||||||||||||||||||||||||
Corporate debt securities and | |||||||||||||||||||||||||
government debt securities | |||||||||||||||||||||||||
Current | 15,015 | 20 | (76 | ) | 14,959 | ||||||||||||||||||||
Non-Current | 24,617 | 69 | (167 | ) | 24,519 | ||||||||||||||||||||
39,632 | 89 | (243 | ) | 39,478 | |||||||||||||||||||||
At December 31, 2012 | |||||||||||||||||||||||||
Held to maturity: | |||||||||||||||||||||||||
Corporate debt securities and | |||||||||||||||||||||||||
government debt securities | |||||||||||||||||||||||||
Current | 12,702 | 23 | (56 | ) | 12,669 | ||||||||||||||||||||
Non-Current | 28,775 | 193 | (126 | ) | 28,842 | ||||||||||||||||||||
41,477 | 216 | (182 | ) | 41,511 | |||||||||||||||||||||
* | Fair value is being determined using quoted market prices in active markets (Level 1). | ||||||||||||||||||||||||
** | Including accrued interest in the amount of $425K and $391K as of December 31, 2012 and 2013 respectively. | ||||||||||||||||||||||||
Schedule of Debt Securities by Major Interest Type | ' | ||||||||||||||||||||||||
The amortized cost, gross unrealized losses and fair value of the debt securities by major interest type, mostly fixed interest, were as follows: | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Net unrealized | |||||||||||||||||||||||||
holding | |||||||||||||||||||||||||
Amortized cost | gains/(losses) | Fair value | |||||||||||||||||||||||
US$ thousands | |||||||||||||||||||||||||
Up to 2% | 34,945 | (217 | ) | 34,728 | |||||||||||||||||||||
2.05% - 2.951% | 4,687 | 63 | 4,750 | ||||||||||||||||||||||
39,632 | (154 | ) | 39,478 | ||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Net unrealized | |||||||||||||||||||||||||
holding | |||||||||||||||||||||||||
Amortized cost | gains/(losses) | Fair value | |||||||||||||||||||||||
US$ thousands | |||||||||||||||||||||||||
Up to 2% | 33,145 | (84 | ) | 33,061 | |||||||||||||||||||||
2.038% - 2.951% | 8,332 | 118 | 8,450 | ||||||||||||||||||||||
41,477 | 34 | 41,511 | |||||||||||||||||||||||
Schedule of Reconciliation of Marketable Securities | ' | ||||||||||||||||||||||||
Activity in marketable securities in 2013 | US$ thousands | ||||||||||||||||||||||||
Balance at January 1, 2013 | 41,477 | ||||||||||||||||||||||||
Purchases of marketable securities | 11,384 | ||||||||||||||||||||||||
Discount of marketable securities | (729 | ) | |||||||||||||||||||||||
Proceeds from maturity of marketable securities | (12,500 | ) | |||||||||||||||||||||||
Balance at December 31, 2013 | 39,632 | ||||||||||||||||||||||||
Summary of Investment Securities in an Unrealized Loss Position | ' | ||||||||||||||||||||||||
The following table summarizes the gross unrealized losses on investment securities for which other-than-temporary impairments have not been recognized and the fair value of those securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2013: | |||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||
Held to maturity | Unrealized Losses | Fair value | Unrealized Losses | Fair value | Unrealized Losses | Fair value | |||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||||
and government debt | |||||||||||||||||||||||||
securities | (144 | ) | 19,313 | (99 | ) | 8,112 | (243 | ) | 27,425 |
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventories [Abstract] | ' | ||||||||
Summary of Inventories | ' | ||||||||
31-Dec | |||||||||
2012 | 2013 | ||||||||
US$ thousands | |||||||||
Raw materials and components | 5,971 | 9,041 | |||||||
Products in process | 6,908 | 13,081 | |||||||
Finished products | 1,916 | 6,656 | |||||||
14,795 | 28,778 |
Property_Plant_and_Equipment_N1
Property, Plant and Equipment, Net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, Plant and Equipment, Net [Abstract] | ' | ||||||||
Summary of Property, Plant and Equipment, Net | ' | ||||||||
31-Dec | |||||||||
2012 | 2013 | ||||||||
US$ thousands | |||||||||
Machinery and equipment | 3,240 | 4,028 | |||||||
Office furniture and equipment | 294 | 389 | |||||||
Leasehold improvements | 441 | 486 | |||||||
Property, plant and equipment | 3,975 | 4,903 | |||||||
Accumulated depreciation | (2,785 | ) | (3,424 | ) | |||||
Property, Plant and equipment, net | 1,190 | 1,479 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies [Abstract] | ' | ||||
Minimum Future Rental Payments | ' | ||||
The minimum future rental payments under the above leases at exchange rates in effect on December 31, 2013, are as follows: | |||||
US$ thousands | |||||
Year ended December 31 | |||||
2014 | 944 | ||||
2015 | 634 | ||||
2016 and on | 491 |
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||||||
Stock Option Summary | ' | ||||||||||||||||
The following table summarizes information regarding stock options as at December 31, 2013: | |||||||||||||||||
Options outstanding | Options exercisable | ||||||||||||||||
Weighted average | Weighted average | ||||||||||||||||
remaining | remaining | ||||||||||||||||
Exercise price | Number | contractual life | Number | contractual life | |||||||||||||
US$ | of options | (in years) | of options | (in years) | |||||||||||||
18.82 | 42,500 | 4.97 | 42,500 | 4.97 | |||||||||||||
15.28 | 230,250 | 6.7 | - | - | |||||||||||||
272,750 | 42,500 | ||||||||||||||||
Stock Option Activity | ' | ||||||||||||||||
The stock option activity under the abovementioned plans is as follows: | |||||||||||||||||
Weighted | |||||||||||||||||
Weighted | average | ||||||||||||||||
Number | average | grant date | |||||||||||||||
of options | exercise price | fair value | |||||||||||||||
US$ | US$ | ||||||||||||||||
Balance at January 1, 2011 | 305,825 | ||||||||||||||||
Exercised | (45,400 | ) | 3.62 | 1.75 | |||||||||||||
Forfeited | (3,000 | ) | 16.32 | 7.54 | |||||||||||||
Balance at December 31, 2011 | 257,425 | ||||||||||||||||
Granted | 240,000 | 15.28 | 6.54 | ||||||||||||||
Exercised | (82,338 | ) | 3.35 | 1.81 | |||||||||||||
Forfeited | (2,000 | ) | 15.28 | 6.54 | |||||||||||||
Balance at December 31, 2012 | 413,087 | ||||||||||||||||
Exercised | (132,587 | ) | 14.28 | 6.61 | |||||||||||||
Forfeited | (7,750 | ) | 15.28 | 6.54 | |||||||||||||
Balance at December 31, 2013 | 272,750 | ||||||||||||||||
Exercisable at December 31, 2013 | 42,500 | ||||||||||||||||
Summary of Allocation of the Stock-Based Compensation Expenses | ' | ||||||||||||||||
During 2011, 2012 and 2013, the Company recorded share-based compensation expenses. The following summarizes the allocation of the stock-based compensation expenses: | |||||||||||||||||
Year ended December 31 | |||||||||||||||||
2011 | 2012 | 2013 | |||||||||||||||
US$ thousands | US$ thousands | US$ thousands | |||||||||||||||
Cost of sales | 24 | 46 | 103 | ||||||||||||||
Research and development costs | 96 | 130 | 193 | ||||||||||||||
Selling and marketing expenses | 134 | 159 | 177 | ||||||||||||||
General and administrative expenses | 183 | 209 | 195 | ||||||||||||||
437 | 544 | 668 | |||||||||||||||
$3.82 [Member] | ' | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||||||
Fair Value Assumptions | ' | ||||||||||||||||
The Company recognizes compensation expenses on these options based on estimated grant date fair value using the Monte Carlo option-pricing model with the following assumptions: | |||||||||||||||||
Average Risk-free interest rate (a) | 3.73% | ||||||||||||||||
Expected dividend yield | 0.00% | ||||||||||||||||
Average expected volatility (b) | 112.42% | ||||||||||||||||
Termination rate | 11% | ||||||||||||||||
Suboptimal rate (c) | 3.45 | ||||||||||||||||
(a) | Risk-free interest rate represents risk free US$ zero-coupon US Government Bonds at time of grant. | ||||||||||||||||
(b) | Expected average volatility represents a weighted average standard deviation rate for the price of the Company's ordinary shares on the NASDAQ National Market. | ||||||||||||||||
(c) | Suboptimal rate represents the multiple of the increase in the market share price on the day of grant of the option which, should it come to pass, will lead to exercise of the option by the employee. It is the average suboptimal rate of the Company and similar companies. | ||||||||||||||||
$18.82 [Member] | ' | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||||||
Fair Value Assumptions | ' | ||||||||||||||||
The Company recognizes compensation expenses on these options based on estimated grant date fair value using the Binomial option-pricing model with the following assumptions: | |||||||||||||||||
Average Risk-free interest rate (a) | 3.00% | ||||||||||||||||
Expected dividend yield | 0.00% | ||||||||||||||||
Average expected volatility (b) | 82.64% | ||||||||||||||||
Termination rate | 9% | ||||||||||||||||
Suboptimal rate (c) | 3.45 | ||||||||||||||||
(a) | Risk-free interest rate represents risk free US$ zero-coupon US Government Bonds at time of grant. | ||||||||||||||||
(b) | Expected average volatility represents a weighted average standard deviation rate for the price of the Company's ordinary shares on the NASDAQ National Market. | ||||||||||||||||
(c) | Suboptimal rate represents the multiple of the increase in the market share price on the day of grant of the option which, should it come to pass, will lead to exercise of the option by the employee. It is the average suboptimal rate of the Company and similar companies. | ||||||||||||||||
$15.28 [Member] | ' | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ||||||||||||||||
Fair Value Assumptions | ' | ||||||||||||||||
The Company recognizes compensation expenses on these options based on estimated grant date fair value using the Binomial option-pricing model with the following assumptions: | |||||||||||||||||
Average Risk-free interest rate (a) | 1.33% | ||||||||||||||||
Expected dividend yield | 0.00% | ||||||||||||||||
Average expected volatility (b) | 64.71% | ||||||||||||||||
Termination rate | 9% | ||||||||||||||||
Suboptimal rate (c) | 3.2 | ||||||||||||||||
(a) | Risk-free interest rate represents risk free US$ zero-coupon US Government Bonds at time of grant. | ||||||||||||||||
(b) | Expected average volatility represents a weighted average standard deviation rate for the price of the Company's ordinary shares on the NASDAQ National Market. | ||||||||||||||||
(c) | Suboptimal rate represents the multiple of the increase in the market share price on the day of grant of the option which, should it come to pass, will lead to exercise of the option by the employee. It is the average suboptimal rate of the Company and similar companies. |
Sales_Tables
Sales (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Sales [Abstract] | ' | ||||||||||||
Sales by Geographic Region | ' | ||||||||||||
Sales are attributed to geographic distribution based on the location of the customer. | |||||||||||||
Year ended December 31 | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
US$ thousands | |||||||||||||
North America | 29,627 | 33,606 | 55,655 | ||||||||||
Europe | 5,174 | 7,277 | 9,257 | ||||||||||
Rest of the world | 4,832 | 7,846 | 8,386 | ||||||||||
39,633 | 48,729 | 73,298 | |||||||||||
Sales to Single Customers Exceeding 10% of Sales | ' | ||||||||||||
Sales to single customers exceeding 10% of sales (US$ thousands): | |||||||||||||
Year ended December 31 | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
US$ thousands | |||||||||||||
Customer "A" | 4,882 | 10,809 | 24,512 | ||||||||||
Customer "B" | 4,195 | 8,714 | * | ||||||||||
* | Less than 10% of sales. | ||||||||||||
Financial_Income_Expenses_Net_
Financial Income (Expenses), Net (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Financial Income (Expenses), Net [Abstract] | ' | ||||||||||||
Financial Income (Expenses), Net | ' | ||||||||||||
Year ended December 31 | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
US$ thousands | |||||||||||||
Interest income | 1,292 | 1,360 | 1,290 | ||||||||||
Interest expenses | (499 | ) | (561 | ) | (643 | ) | |||||||
Exchange rate differences, net | (231 | ) | 96 | (89 | ) | ||||||||
Bank charges | (123 | ) | (143 | ) | (154 | ) | |||||||
439 | 752 | 404 |
Taxes_on_Income_Tables
Taxes on Income (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Taxes on Income [Abstract] | ' | ||||||||||||
Income Before Income Taxes and Income Taxes Expense (Benefit) Included in The Consolidated Statements of Operations | ' | ||||||||||||
Year ended December 31 | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
US$ thousands | |||||||||||||
Income before income taxes: | |||||||||||||
Israel | 8,899 | 10,086 | 16,857 | ||||||||||
Foreign jurisdiction | 11 | 695 | 1,125 | ||||||||||
8,910 | 10,781 | 17,982 | |||||||||||
Current taxes: | |||||||||||||
Israel | 619 | 784 | 949 | ||||||||||
Foreign jurisdiction | - | 116 | 479 | ||||||||||
619 | 900 | 1,428 | |||||||||||
Tax (benefits) expenses relating to prior years: | |||||||||||||
Israel | (38 | ) | (12 | ) | 29 | ||||||||
Deferred taxes: | |||||||||||||
Israel | 73 | (3 | ) | (552 | ) | ||||||||
Foreign jurisdiction | 13 | 25 | - | ||||||||||
86 | 22 | (552 | ) | ||||||||||
Income tax expense | 667 | 910 | 905 | ||||||||||
Deferred Income Taxes | ' | ||||||||||||
The tax effects of significant items comprising the Company's deferred tax assets are as follows: | |||||||||||||
31-Dec | 31-Dec | ||||||||||||
2012 | 2013 | ||||||||||||
US$ thousands | US$ thousands | ||||||||||||
Deferred tax assets: | |||||||||||||
Accrued employee benefits | 147 | 248 | |||||||||||
Research and development costs | 8 | 458 | |||||||||||
PPE | 5 | 5 | |||||||||||
Other | 1 | 2 | |||||||||||
Total gross deferred tax assets | 161 | 713 | |||||||||||
Net deferred tax assets | 161 | 713 | |||||||||||
Current | 47 | 274 | |||||||||||
Non-current | 114 | 439 | |||||||||||
Total | 161 | 713 | |||||||||||
Reconciliation of the Statutory Tax Expense to Actual Tax Expense | ' | ||||||||||||
Reconciliation of the statutory tax expense to actual tax expense | |||||||||||||
Year ended December 31 | |||||||||||||
2011 | 2012 | 2013 | |||||||||||
US$ thousands | |||||||||||||
Income before income taxes | 8,910 | 10,781 | 17,982 | ||||||||||
Statutory tax rate in Israel | 24 | % | 25 | % | 25 | % | |||||||
2,138 | 2,695 | 4,496 | |||||||||||
Increase (decrease) in taxes resulting from: | |||||||||||||
Non-deductible operating expenses | 123 | 159 | 205 | ||||||||||
Prior year adjustments | (38 | ) | (12 | ) | 29 | ||||||||
Change in valuation allowance | 12 | (63 | ) | - | |||||||||
Tax effect due to "Approved Enterprise" status | (1,640 | ) | (2,063 | ) | (4,396 | ) | |||||||
Taxes related to foreign jurisdictions | - | 30 | 198 | ||||||||||
Changes in tax rate | 65 | (58 | ) | 399 | |||||||||
Other | 7 | 222 | (26 | ) | |||||||||
Income tax expense | 667 | 910 | 905 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Narrative) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of Significant Accounting Policies [Abstract] | ' | ' |
Fixed annual interest rate of short-term bank deposits | 0.35% | 1.81% |
Provision for doubtful accounts | $20 | $20 |
Number of major customers | 3 | ' |
Percentage of revenue contributed by major customers | 50.00% | ' |
Intellectual property | 200 | ' |
Estimated useful life | '3 years | ' |
Amortization expense | 20 | ' |
Amortized cost | $180 | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Depreciation of Property, Plant and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Machinery and Equipment [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Straight-line depreciation rate | 15.00% |
Machinery and Equipment [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Straight-line depreciation rate | 33.00% |
Office Furniture and Equipment [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Straight-line depreciation rate | 6.00% |
Office Furniture and Equipment [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Straight-line depreciation rate | 33.00% |
Leasehold Improvements [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Straight-line depreciation rate | 10.00% |
Leasehold Improvements [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Straight-line depreciation rate | 20.00% |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Computation of Basic and Diluted Income Per Ordinary Share) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Summary of Significant Accounting Policies [Abstract] | ' | ' | ' |
Net income attributable to ordinary shares (US$ thousands) | $17,077 | $9,871 | $8,243 |
Weighted average number of ordinary shares outstanding used in basic income per ordinary share calculation | 7,103,021 | 6,933,576 | 6,896,215 |
Add assumed exercise of outstanding dilutive potential ordinary shares | 143,011 | 34,729 | 98,377 |
Weighted average number of ordinary shares outstanding used in diluted income per ordinary share calculation | 7,246,032 | 6,968,305 | 6,994,592 |
Basic income per ordinary share (US$) | $2.40 | $1.42 | $1.20 |
Diluted income per ordinary share (US$) | $2.36 | $1.42 | $1.18 |
Number of options and warrants excluded from the diluted earnings per share calculation because of anti-dilutive effect | ' | 135,000 | 135,000 |
Cash_and_Cash_Equivalents_Deta
Cash and Cash Equivalents (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | ||
Cash and Cash Equivalents [Abstract] | ' | ' | ' | ' | ||
Cash | $10,593 | $13,248 | ' | ' | ||
Cash equivalents | 2,404 | [1] | 58 | [1] | ' | ' |
Cash and cash equivalents | $12,997 | $13,306 | $11,483 | $6,657 | ||
Weighted average interest rate of cash on deposit | 0.74% | 0.11% | ' | ' | ||
[1] | Comprised mainly of deposits in banks as at December 31, 2012 and 2013 carrying a weighted average interest rate of 0.11% and 0.74%, respectively. |
Marketable_Securities_HeldToMa
Marketable Securities (Held-To-Maturity Securities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Schedule of Held-to-maturity Securities [Line Items] | ' | ' | ||
Amortized cost | $39,632 | [1] | $41,477 | [1] |
Gross unrealized holding gains | 89 | 216 | ||
Gross unrealized holding (losses) | -243 | -182 | ||
Aggregate fair value | 39,478 | [2] | 41,511 | [2] |
Accrued interest on securities | 391 | 425 | ||
Current [Member] | ' | ' | ||
Schedule of Held-to-maturity Securities [Line Items] | ' | ' | ||
Amortized cost | 15,015 | [1] | 12,702 | [1] |
Gross unrealized holding gains | 20 | 23 | ||
Gross unrealized holding (losses) | -76 | -56 | ||
Aggregate fair value | 14,959 | [2] | 12,669 | [2] |
Non Current [Member] | ' | ' | ||
Schedule of Held-to-maturity Securities [Line Items] | ' | ' | ||
Amortized cost | 24,617 | [1] | 28,775 | [1] |
Gross unrealized holding gains | 69 | 193 | ||
Gross unrealized holding (losses) | -167 | -126 | ||
Aggregate fair value | $24,519 | [2] | $28,842 | [2] |
[1] | Including accrued interest in the amount of $425K and $391K as of December 31, 2012 and 2013 respectively. | |||
[2] | Fair value is being determined using quoted market prices in active markets (Level 1). |
Marketable_Securities_Schedule
Marketable Securities (Schedule of Debt Securities by Major Interest Type) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | Up To 2% [Member] | Up To 2% [Member] | 2.05% - 2.951% [Member] | 2.05% - 2.951% [Member] | 2.05% - 2.951% [Member] | Up to 2% [Member] | Up to 2% [Member] | 2.038% - 2.951% [Member] | 2.038% - 2.951% [Member] | 2.038% - 2.951% [Member] | ||||
Maximum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | |||||||||
Schedule of Held-to-maturity Securities [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Amortized cost | $39,632 | [1] | $41,477 | [1] | $34,945 | ' | $4,687 | ' | ' | $33,145 | ' | $8,332 | ' | ' |
Net unrealized holding gains/(losses) | -154 | 34 | -217 | ' | 63 | ' | ' | -84 | ' | 118 | ' | ' | ||
Aggregate fair value | $39,478 | [2] | $41,511 | [2] | $34,728 | ' | $4,750 | ' | ' | $33,061 | ' | $8,450 | ' | ' |
Interest rate | ' | ' | ' | 2.00% | ' | 2.05% | 2.95% | ' | 2.00% | ' | 2.04% | 2.95% | ||
[1] | Including accrued interest in the amount of $425K and $391K as of December 31, 2012 and 2013 respectively. | |||||||||||||
[2] | Fair value is being determined using quoted market prices in active markets (Level 1). |
Marketable_Securities_Schedule1
Marketable Securities (Schedule of Reconciliation of Marketable Securities) (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Marketables Securities [Abstract] | ' | ' | ' | ||
Balance at January 1, 2013 | $41,477 | [1] | ' | ' | |
Purchases of marketable securities | 11,384 | 17,992 | 13,071 | ||
Discount of marketable securities | -729 | -579 | -462 | ||
Proceeds from maturity of marketable securities | -12,500 | -8,955 | -9,531 | ||
Balance at December 31, 2013 | $39,632 | [1] | $41,477 | [1] | ' |
[1] | Including accrued interest in the amount of $425K and $391K as of December 31, 2012 and 2013 respectively. |
Marketable_Securities_Summary_
Marketable Securities (Summary of Investment Securities in an Unrealized Loss Position) (Details) (Corporate Debt Securities And Government Debt Securities [Member], USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Corporate Debt Securities And Government Debt Securities [Member] | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' |
Unrealized losses, less than 12 months | ($144) |
Unrealized losses, 12 months or more | -99 |
Unrealized losses, total | -243 |
Fair Value, Less than 12 months | 19,313 |
Fair Value,12 months or more | 8,112 |
Fair Value, Total | $27,425 |
Inventories_Details
Inventories (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventories [Abstract] | ' | ' |
Raw materials and components | $9,041 | $5,971 |
Products in process | 13,081 | 6,908 |
Finished products | 6,656 | 1,916 |
Inventories | $28,778 | $14,795 |
Property_Plant_and_Equipment_N2
Property, Plant and Equipment, Net (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, plant and equipment | $4,903 | $3,975 | ' |
Accumulated depreciation | -3,424 | -2,785 | ' |
Property, plant and equipment, net | 1,479 | 1,190 | ' |
Depreciation | 639 | 454 | 379 |
Machinery and Equipment [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, plant and equipment | 4,028 | 3,240 | ' |
Office Furniture and Equipment [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, plant and equipment | 389 | 294 | ' |
Leasehold Improvements [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, plant and equipment | $486 | $441 | ' |
Assets_Held_and_Liability_for_1
Assets Held and Liability for Employees' Severance Benefits (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Assets Held and Liability for Employees' Severance Benefits [Abstract] | ' | ' | ' |
Severance costs | $578 | $382 | $304 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Loss Contingencies [Line Items] | ' | ' | ' |
Percent of royalties paid must equal the dollar linked amount of the grants received | 100.00% | ' | ' |
Total commitment in respect of royalty-bearing participations | $2,960 | $2,960 | ' |
Rental expenses under the lease agreements | 837 | 676 | 632 |
Line of credit | $160 | ' | ' |
Minimum [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Royalty rates | 2.00% | ' | ' |
Maximum [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Royalty rates | 5.00% | ' | ' |
Silicom Research and Development [Member] | Minimum [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Royalty rates | 2.00% | ' | ' |
Silicom Research and Development [Member] | Maximum [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Royalty rates | 3.50% | ' | ' |
July 1, 1997 - January 31, 2000 Project [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Royalty rates | 4.00% | ' | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies (Minimum Future Rental Payments) (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Operating Leased Assets [Line Items] | ' |
2014 | $944 |
2015 | 634 |
2016 and on | 491 |
Related Party [Member] | ' |
Operating Leased Assets [Line Items] | ' |
2014 | $12 |
Shareholders_Equity_Narrative_
Shareholders' Equity (Narrative) (Details) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2007 | Jul. 31, 2004 | Dec. 31, 2013 | Oct. 31, 2013 | Oct. 15, 2008 | Dec. 31, 2013 | Dec. 21, 2010 | Dec. 31, 2013 | Sep. 13, 2012 | Dec. 31, 2013 |
Share Option Plan (2004) [Member] | Share Option Plan (2004) [Member] | Share Option Plan (2004) [Member] | Share Option Plan (2004) [Member] | 2013 Plan [Member] | 2013 Plan [Member] | $3.82 [Member] | $3.82 [Member] | $18.82 [Member] | $18.82 [Member] | $15.28 [Member] | $15.28 [Member] | ||||
Share Option Plan (2004) [Member] | Share Option Plan (2004) [Member] | Share Option Plan (2004) [Member] | Share Option Plan (2004) [Member] | Share Option Plan (2004) [Member] | Share Option Plan (2004) [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares authorized | ' | ' | ' | ' | ' | ' | 282,750 | 500,000 | 500,000 | ' | ' | ' | ' | ' | ' |
Additional shares authorized | ' | ' | ' | 500,000 | ' | 582,750 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | 137,500 | ' | 240,000 | ' |
Exercise price of options | ' | $15.28 | ' | ' | ' | ' | ' | ' | ' | $3.82 | ' | $18.82 | ' | $15.28 | ' |
Expiration date | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15-Oct-16 | ' | 21-Dec-18 | ' | 13-Sep-20 | ' |
Closing price to determine expiration date | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.91 | ' | $9.41 | ' | $7.64 | ' |
Percentage of options that vest and become exercisable on the second anniversary of the grant date | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | 50.00% | ' | 50.00% | ' |
Percentage of options that vest and become exercisable on the third anniversary of the grant date | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | 50.00% | ' | 50.00% | ' |
Aggregate intrinsic value of options outstanding | $8,152 | $1,199 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value of options exercisable | 1,143 | 566 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total intrinsic value of options exercised | 1,119 | 1,191 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intrinsic value of options at the date of grant | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expense related to grant | 668 | 544 | 437 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 149 | ' | 519 |
Unrecognized compensation costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $566 |
Weighted average period for grant to be recognized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year 2 months 9 days |
Option expiration term | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion rate | ' | ' | ' | ' | '1:1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital gains tax | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shareholders_Equity_Fair_Value
Shareholders' Equity (Fair Value Assumptions) (Details) | 0 Months Ended | 1 Months Ended | 0 Months Ended | |||
Oct. 15, 2008 | Dec. 21, 2010 | Sep. 13, 2012 | ||||
$3.82 [Member] | $18.82 [Member] | $15.28 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | |||
Average risk-free interest rate | 3.73% | [1] | 3.00% | [1] | 1.33% | [1] |
Expected dividend yield | 0.00% | 0.00% | 0.00% | |||
Average expected volatility | 112.42% | [2] | 82.64% | [2] | 64.71% | [2] |
Termination rate | 11.00% | 9.00% | 9.00% | |||
Suboptimal rate | 3.45% | [3] | 3.45% | [3] | 3.20% | [3] |
[1] | Risk-free interest rate represents risk free US$ zero-coupon US Government Bonds at time of grant. | |||||
[2] | Expected average volatility represents a weighted average standard deviation rate for the price of the Company's ordinary shares on the NASDAQ National Market. | |||||
[3] | Suboptimal rate represents the multiple of the increase in the market share price on the day of grant of the option which, should it come to pass, will lead to exercise of the option by the employee. It is the average suboptimal rate of the Company and similar companies. |
Shareholders_Equity_Stock_Opti
Shareholders' Equity (Stock Option Summary) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 |
$18.82 [Member] | $15.28 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Exercise price US$ | ' | ' | ' | ' | $18.82 | $15.28 |
Options outstanding, number of options | 272,750 | 413,087 | 257,425 | 305,825 | 42,500 | 230,250 |
Options outstanding, weighted average remaining contractual life (in years) | ' | ' | ' | ' | '4 years 11 months 19 days | '6 years 8 months 12 days |
Options exercisable, number of options | 42,500 | ' | ' | ' | 42,500 | ' |
Options exercisable, weighted average remaining contractual life (in years) | ' | ' | ' | ' | '4 years 11 months 19 days | ' |
Shareholders_Equity_Stock_Opti1
Shareholders' Equity (Stock Option Activity) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Shareholders' Equity [Abstract] | ' | ' | ' |
Options, beginning balance | 413,087 | 257,425 | 305,825 |
Options, granted | ' | 240,000 | ' |
Options, exercised | -132,587 | -82,338 | -45,400 |
Options, forfeited | -7,750 | -2,000 | -3,000 |
Options, ending balance | 272,750 | 413,087 | 257,425 |
Options, exercisable | 42,500 | ' | ' |
Weighted average exercise price, granted | ' | $15.28 | ' |
Weighted average exercise price, exercised | $14.28 | $3.35 | $3.62 |
Weighted average exercise price, forfeited | $15.28 | $15.28 | $16.32 |
Weighted average grant date fair value, granted | ' | $6.54 | ' |
Weighted average grant date fair value, exercised | $6.61 | $1.81 | $1.75 |
Weighted average grant date fair value, forfeited | $6.54 | $6.54 | $7.54 |
Shareholders_Equity_Summary_of
Shareholders' Equity (Summary of Allocation of Stock-Based Compensation Expenses) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation expense | $668 | $544 | $437 |
Cost of Sales [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation expense | 103 | 46 | 24 |
Research and Development Costs [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation expense | 193 | 130 | 96 |
Selling and Marketing Expenses [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation expense | 177 | 159 | 134 |
General and Administrative Expenses [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation expense | $195 | $209 | $183 |
Sales_Sales_By_Geographic_Regi
Sales (Sales By Geographic Region) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Sales attributable based on geographic location | $73,298 | [1] | $48,729 | [1] | $39,633 | [1] |
North America [Member] | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Sales attributable based on geographic location | 55,655 | 33,606 | 29,627 | |||
Europe [Member] | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Sales attributable based on geographic location | 9,257 | 7,277 | 5,174 | |||
Rest Of The World [Member] | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | |||
Sales attributable based on geographic location | $8,386 | $7,846 | $4,832 | |||
[1] | Including sales to related parties in the amount of US$ 350 thousand, US$ 558 thousand and US$ 851 thousand in 2011, 2012 and 2013, respectively. |
Sales_Sales_to_Single_Customer
Sales (Sales to Single Customers Exceeding 10% of Sales) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Revenue, Major Customer [Line Items] | ' | ' | ' | |||
Sales | $73,298 | [1] | $48,729 | [1] | $39,633 | [1] |
Customer "A" [Member] | ' | ' | ' | |||
Revenue, Major Customer [Line Items] | ' | ' | ' | |||
Sales | 24,512 | 10,809 | 4,882 | |||
Customer "B" [Member] | ' | ' | ' | |||
Revenue, Major Customer [Line Items] | ' | ' | ' | |||
Sales | ' | [2] | $8,714 | $4,195 | ||
[1] | Including sales to related parties in the amount of US$ 350 thousand, US$ 558 thousand and US$ 851 thousand in 2011, 2012 and 2013, respectively. | |||||
[2] | Less than 10% of sales. |
Financial_Income_Expenses_Net_1
Financial Income (Expenses), Net (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Financial Income (Expenses), Net [Abstract] | ' | ' | ' |
Interest income | $1,290 | $1,360 | $1,292 |
Interest expenses | -643 | -561 | -499 |
Exchange rate differences, net | -89 | 96 | -231 |
Bank charges | -154 | -143 | -123 |
Financial income, net | $404 | $752 | $439 |
Taxes_on_Income_Narrative_Deta
Taxes on Income (Narrative) (Details) | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Aug. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
USD ($) | USD ($) | USD ($) | Beneficial Enterprise [Member] | Beneficial Enterprise [Member] | Preferred Enterprise [Member] | Special Preferred Enterprise [Member] | Israel Tax Reform [Member] | Manufacturing Plant [Member] | Research and Development Center [Member] | Development Area A [Member] | Development Area A [Member] | Development Area A [Member] | Rest of Country [Member] | Rest of Country [Member] | Rest of Country [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | |
USD ($) | USD ($) | Preferred Enterprise [Member] | Preferred Enterprise [Member] | Special Preferred Enterprise [Member] | Preferred Enterprise [Member] | Preferred Enterprise [Member] | Special Preferred Enterprise [Member] | Beneficial Enterprise [Member] | Expansion [Member] | Specific Foreign Market [Member] | Beneficial Enterprise [Member] | Expansion [Member] | Specific Foreign Market [Member] | |||||||||
ILS | ILS | Beneficial Enterprise [Member] | Beneficial Enterprise [Member] | |||||||||||||||||||
Income Tax Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax rate | 25.00% | 25.00% | 24.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | 8.00% | ' | ' | ' | ' | ' | ' |
Number of years of tax exemption | ' | ' | ' | ' | ' | ' | '10 years | ' | '10 years | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax rate increase | ' | ' | ' | ' | ' | ' | ' | 1.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum percent of taxable income for the plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax exemption | ' | ' | ' | $50,683,000 | $30,779,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax liability | ' | ' | ' | 12,671,000 | 7,695,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of years of benefited tax rate under the alternative benefits method for the research and development center | ' | ' | ' | ' | ' | ' | ' | ' | ' | '8 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Corporate tax on cash dividends distributed from exempted profits | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Withholding tax deduction from cash dividends distributed from benefited profits | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Corporate tax on cash dividends distributed from exempted profits as of 2014 | ' | ' | ' | ' | ' | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of revenue from one country to receive tax benefits | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | 75.00% |
Market size criteria to receive tax benefits, number of residents (people) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,000,000 | ' | ' | ' |
Required investment in production machinery and equipment to receive tax benefits | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300 | 300 | ' | ' | ' | ' |
Time allowed to meet investment in production machinery and equipment to receive tax benefits | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '3 years | ' |
Tax rate in 2011-2012 tax years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | 15.00% | ' | ' | ' | ' | ' | ' | ' |
Tax rate in 2013-2014 tax years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.00% | ' | ' | 12.50% | ' | ' | ' | ' | ' | ' | ' |
Tax rate 2014 and thereafter | ' | ' | ' | ' | ' | ' | ' | 26.50% | ' | ' | 9.00% | ' | 5.00% | 16.00% | ' | 8.00% | ' | ' | ' | ' | ' | ' |
Tax rate as from 2015 tax year for maximum of 10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.00% | ' | ' | 12.00% | ' | ' | ' | ' | ' | ' | ' |
Adjustment to deferred tax balance relating to changes in tax rate | $399,000 | ($58,000) | $65,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Taxes_on_Income_Income_Before_
Taxes on Income (Income Before Income Taxes and Income Taxes Expense (Benefit) Included in the Consolidated Statements of Operations) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Taxes on Income [Abstract] | ' | ' | ' |
Income before income taxes, Israel | $16,857 | $10,086 | $8,899 |
Income before income taxes, foreign jurisdiction | 1,125 | 695 | 11 |
Income before income taxes | 17,982 | 10,781 | 8,910 |
Current taxes, Israel | 949 | 784 | 619 |
Current taxes, foreign jurisdiction | 479 | 116 | ' |
Current taxes | 1,428 | 900 | 619 |
Tax (benefits) expenses relating to prior years, Israel | 29 | -12 | -38 |
Deferred taxes, Israel | -552 | -3 | 73 |
Deferred taxes, foreign jurisdiction | ' | 25 | 13 |
Deferred taxes | -552 | 22 | 86 |
Income tax expense | $905 | $910 | $667 |
Taxes_on_Income_Deferred_Incom
Taxes on Income (Deferred Income Taxes) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Taxes on Income [Abstract] | ' | ' |
Accrued employee benefits | $248 | $147 |
Research and development costs | 458 | 8 |
PPE | 5 | 5 |
Other | 2 | 1 |
Total gross deferred tax assets | 713 | 161 |
Net deferred tax assets | 713 | 161 |
Current | 274 | 47 |
Non-current | $439 | $114 |
Taxes_on_Income_Reconciliation
Taxes on Income (Reconciliation of Statutory Tax Expense To Actual Tax Expense) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Taxes on Income [Abstract] | ' | ' | ' |
Income before income taxes | $17,982 | $10,781 | $8,910 |
Statutory tax rate in Israel | 25.00% | 25.00% | 24.00% |
Computed expected tax | 4,496 | 2,695 | 2,138 |
Non-deductible operating expenses | 205 | 159 | 123 |
Prior year adjustments | 29 | -12 | -38 |
Change in valuation allowance | ' | -63 | 12 |
Tax effect due to "Approved Enterprise" status | -4,396 | -2,063 | -1,640 |
Taxes related to foreign jurisdictions | 198 | 30 | ' |
Changes in tax rate | 399 | -58 | 65 |
Other | -26 | 222 | 7 |
Income tax expense | $905 | $910 | $667 |
Subsequent_Events_Details
Subsequent Events (Details) (Subsequent Event [Member], USD $) | 12 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 |
Subsequent Event [Member] | ' |
Subsequent Event [Line Items] | ' |
Dividend declaration date | 18-Mar-14 |
Dividend declared aggegate amount | $7.20 |
Dividend declared per share | $1 |
Dividend, date payable | 17-Apr-14 |
Dividend payable, date of record | 3-Apr-14 |