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 | 'ELTEK LTD |
Entity Central Index Key | '0001024672 |
Entity Current Reporting Status | 'Yes |
Entity Voluntary Filers | 'No |
Current Fiscal Year End Date | '--12-31 |
Entity Filer Category | 'Non-accelerated Filer |
Entity Well-known Seasoned Issuer | 'No |
Entity Common Stock, Shares Outstanding | 10,142,762 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Assets | ' | ' |
Cash | $2,514,000 | $1,935,000 |
Trade accounts receivable, net of allowance for doubtful accounts | 9,127,000 | 6,662,000 |
Inventories | 6,109,000 | 5,244,000 |
Prepaid expenses and other current assets | 605,000 | 417,000 |
Total current assets | 18,355,000 | 14,258,000 |
Assets held for employees' severance benefits | 53,000 | 47,000 |
Fixed assets, net | 10,108,000 | 9,075,000 |
Deferred tax assets, long-term | 2,863,000 | ' |
Goodwill | 75,000 | 69,000 |
Total assets | 31,454,000 | 23,449,000 |
Liabilities and shareholders' equity | ' | ' |
Short-term credit and current maturities of long-term debt | 1,818,000 | 5,105,000 |
Accounts payable: | ' | ' |
Trade | 9,229,000 | 6,110,000 |
Related parties | ' | 1,336,000 |
Other current liabilities | 5,311,000 | 4,419,000 |
Total current liabilities | 16,358,000 | 16,970,000 |
Long-term liabilities | ' | ' |
Long-term debt, excluding current maturities | 1,412,000 | 728,000 |
Employee severance benefits | 337,000 | 215,000 |
Total long-term liabilities | 1,749,000 | 943,000 |
Commitments and contingent liabilities | ' | ' |
Shareholders' equity | ' | ' |
Ordinary shares, NIS 0.6 par value Authorized 50,000,000 shares, issued and outstanding 10,142,762 shares as of December 31, 2013 and 6,610,107 as of December 31, 2012 | 1,985,280 | 1,384,318 |
Additional paid-in capital | 17,270,000 | 14,328,000 |
Cumulative foreign currency translation adjustments | 3,186,000 | 2,713,000 |
Capital reserves | 695,000 | 695,000 |
Accumulated deficit | -9,885,000 | -13,708,000 |
Total Eltek Ltd. shareholders' equity | 13,251,000 | 5,412,000 |
Non-controlling interest | 96,000 | 124,000 |
Total equity | 13,347,000 | 5,536,000 |
Total liabilities, shareholders' equity and non- controlling interest | $31,454,000 | $23,449,000 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Balance Sheets [Abstract] | ' | ' |
Ordinary shares, par value | $0.60 | $0.60 |
Ordinary shares, shares authorized | 50,000,000 | 50,000,000 |
Ordinary shares, shares issued | 10,142,762 | 6,610,107 |
Ordinary shares, shares outstanding | 10,142,762 | 6,610,107 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Consolidated Statements of Comprehensive Income [Abstract] | ' | ' | ' |
Revenues | $50,235 | $45,646 | $46,830 |
Cost of revenues | -42,242 | -37,836 | -38,101 |
Gross profit | 7,993 | 7,810 | 8,729 |
Operating expenses | ' | ' | ' |
Selling, general and administrative expenses | -6,722 | -6,040 | -6,155 |
Impairment of goodwill | ' | -481 | ' |
Operating profit | 1,271 | 1,289 | 2,574 |
Financial expenses, net | -439 | -543 | -740 |
Other income (loss), net | -26 | 2 | 12 |
Profit before income tax (expense) benefit | 806 | 748 | 1,846 |
Income tax (expense) benefit | 2,975 | -52 | -31 |
Net profit | 3,781 | 696 | 1,815 |
Net (profit) loss attributable to non-controlling interest | 42 | -6 | 31 |
Net profit attributable to Eltek Ltd. | 3,823 | 690 | 1,846 |
Other comprehensive income (loss): Foreign currency translation adjustments | 487 | 78 | -377 |
Comprehensive income (loss) | 4,268 | 774 | 1,438 |
Comprehensive loss attributable to non-controlling interest | -28 | -7 | -44 |
Comprehensive income attributable to Eltek Ltd. | $4,296 | $781 | $1,482 |
Basic and diluted net profit per ordinary share attributable to Eltek Ltd. shareholders | $0.53 | $0.10 | $0.28 |
Weighted average number of ordinary shares used to compute basic and diluted net profit per ordinary share attributable to Eltek Ltd. shareholders | 7,198,883 | 6,610,107 | 6,610,107 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Shareholders' Equity (USD $) | Total | Ordinary Shares [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Income [Member] | Capital Reserves [Member] | Accumulated Deficit [Member] | Equity Attributed To Eltek Ltd. And Subsidiaries [Member] | Noncontrolling Interest [Member] |
In Thousands, except Share data, unless otherwise specified | ||||||||
Balance at Dec. 31, 2010 | $3,324 | $1,384 | $14,328 | $2,986 | $695 | ($16,244) | $3,149 | $175 |
Balance, shares at Dec. 31, 2010 | ' | 6,610,107 | ' | ' | ' | ' | ' | ' |
Changes during the year | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustments | -377 | ' | ' | -364 | ' | ' | -364 | -13 |
Net profit (loss) | 1,815 | ' | ' | ' | ' | 1,846 | 1,846 | -31 |
Comprehensive income (loss) | 1,438 | ' | ' | ' | ' | ' | 1,482 | -44 |
Balance at Dec. 31, 2011 | 4,762 | 1,384 | 14,328 | 2,622 | 695 | -14,398 | 4,631 | 131 |
Balance, shares at Dec. 31, 2011 | ' | 6,610,107 | ' | ' | ' | ' | ' | ' |
Changes during the year | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustments | 78 | ' | ' | 91 | ' | ' | 91 | -13 |
Net profit (loss) | 696 | ' | ' | ' | ' | 690 | 690 | 6 |
Comprehensive income (loss) | 774 | ' | ' | ' | ' | ' | 781 | -7 |
Balance at Dec. 31, 2012 | 5,536 | 1,384 | 14,328 | 2,713 | 695 | -13,708 | 5,412 | 124 |
Balance, shares at Dec. 31, 2012 | 6,610,107 | 6,610,107 | ' | ' | ' | ' | ' | ' |
Issuance of shares, net of costs | 3,543 | 601 | 2,942 | ' | ' | ' | 3,543 | ' |
Issuance of shares, net of costs, shares | ' | 3,532,655 | ' | ' | ' | ' | ' | ' |
Changes during the year | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustments | 487 | ' | ' | 473 | ' | ' | 473 | 14 |
Net profit (loss) | 3,781 | ' | ' | ' | ' | 3,823 | 3,823 | -42 |
Comprehensive income (loss) | 4,268 | ' | ' | ' | ' | ' | 4,296 | -28 |
Balance at Dec. 31, 2013 | $13,347 | $1,985 | $17,270 | $3,186 | $695 | ($9,885) | $13,251 | $96 |
Balance, shares at Dec. 31, 2013 | 10,142,762 | 10,142,762 | ' | ' | ' | ' | ' | ' |
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 profit | $3,781 | $696 | $1,815 |
Adjustments to reconcile net profit to net cash flows provided by operating activities: | ' | ' | ' |
Depreciation and amortization of goodwill | 1,739 | 2,253 | 2,091 |
Capital loss on disposal of fixed assets, net | 26 | ' | ' |
Revaluation of long term loans | 1 | 25 | 58 |
Increase in deferred tax benefit | -3,012 | ' | ' |
Changes in employee severance benefits, net | 217 | 53 | 68 |
Decrease (increase) in trade receivables | -1,531 | 2,339 | -2,016 |
Decrease (increase) in other receivables and prepaid expenses | 46 | -58 | -68 |
Increase in inventories | -451 | -670 | -487 |
Increase in income tax payable | ' | ' | 8 |
Increase (decrease) in trade payables | 655 | -147 | 621 |
Increase in other liabilities and accrued expenses | 147 | 281 | 324 |
Net cash provided by operating activities | 1,618 | 4,772 | 2,414 |
Cash flows from investing activities: | ' | ' | ' |
Purchase of fixed assets, net | -950 | -1,234 | -882 |
Net cash used in investing activities | -950 | -1,234 | -882 |
Cash flows from financing activities: | ' | ' | ' |
Decrease in short- term credit | -2,577 | -192 | -802 |
Repayment of long-term loans | -564 | -1,149 | -1,135 |
Proceeds from long-term loans | ' | ' | 474 |
Proceeds from issuance of shares | 3,543 | ' | ' |
Repayment of credit from fixed asset payables | -515 | -1,049 | -539 |
Net cash used in financing activities | -113 | -2,390 | -2,002 |
Effect of translation adjustments | 24 | -105 | -151 |
Net increase (decrease) in cash | 579 | 1,043 | -621 |
Cash at beginning of the year | 1,935 | 892 | 1,513 |
Cash at end of the year | 2,514 | 1,935 | 892 |
Supplemental cash flow information: | ' | ' | ' |
Income tax paid | 110 | 43 | 55 |
Interest paid | 356 | 386 | 480 |
Non-cash activities: | ' | ' | ' |
Purchase of fixed assets not yet paid | $514 | $1,212 | $1,377 |
Organization_and_Summary_of_Si
Organization and Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Organization and Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||||
Organization and Summary of Significant Accounting Policies | ' | ||||||||||||
Note 1 - Organization and Summary of Significant Accounting Policies | |||||||||||||
A. General | |||||||||||||
Eltek Ltd. ("the Parent") was organized in Israel in 1970, and the Parent's shares have been publicly traded on the NASDAQ Capital Market since 1997. Eltek Ltd. and its subsidiaries (see below) are collectively referred to as "the Company". | |||||||||||||
The Company manufactures, markets and sells custom made printed circuit boards ("PCBs"), including high density interconnect, flex-rigid and multi-layered boards. The principal markets of the Company are in Israel, Europe and North America. | |||||||||||||
The Company markets its product mainly to the medical technology, defense and aerospace, industrial, telecom and networking equipment, as well as to contract electronic manufacturers, among other industries, and its business is subject to numerous risks. The major risks include, but are not limited to, (1) the impact of currency exchange rates (mainly NIS/US$), (2) the Company's success in implementing its sales and manufacturing plans, (3) the impact of competition from other companies, (4) the Company's ability to receive regulatory clearance or approval to market its products or changes in regulatory environment, (5) domestic and global economic conditions and industry conditions, and (6) compliance with environmental laws and regulations. Further, the Company's liquidity position, as well as its operating performance, may be negatively affected by other financial business factors, many of which are beyond its control. | |||||||||||||
On August 19, 2013, the Parent entered into an agreement to issue and sell 3,532,655 ordinary shares of the Parent, nominal value NIS 0.6 each, to Nistec Ltd. ("Nistec"), a private company organized under the laws of the State of Israel, for $4.2 million. Nistec is controlled by Yitzhak Nissan, who owns all of the shares of Nistec. Also on August 19, 2013, Nistec purchased 1,589,440 of the Parent's ordinary shares from Merhav M.N.F. Ltd. , a company owned by Mr. Yosef Maiman, which at the time held 24.1% of the Parent's outstanding ordinary shares. The total consideration paid by Nistec in the two transactions was $6.5 million, $2.3 directly to Merhav M.N.F Ltd. and $4.2 million to the Parent. Nistec financed a portion of those funds from a loan extended by Bank Leumi Le'Israel, and the shares that Nistec acquired constitute collateral for the loan. | |||||||||||||
As a result of these transactions, which closed on November 1, 2013, Nistec acquired 50.5% of the Parent's ordinary shares, which constitute 50.5% of the Parent's issued share capital on a fully diluted basis, and Nistec gained control of the Parent. | |||||||||||||
Kubatronik Leiterplatten GmbH | |||||||||||||
In June 2002, the Parent established a wholly-owned subsidiary, EN-Eltek Netherlands 2002 B.V. ("EN-Eltek"), for the purpose of the acquisition of Kubatronik Leiterplatten GmbH ("Kubatronik"). | |||||||||||||
On June 10, 2002, the Parent acquired 76% of the shares of Kubatronik for ˆ 2.6 million ($2.4 million as of the date of acquisition). The acquisition resulted in the recognition of goodwill in the amount of ˆ1.1 million ($1 million as of the date of acquisition) - see Note 5. | |||||||||||||
The Parent subsequently incurred a goodwill impairment of approximately $1 million and the goodwill balance as of December 31, 2013and 2012 was $75 and $69, respectively. | |||||||||||||
Pursuant to the acquisition agreement, the seller has until December 31, 2014, (at which time the period is automatically extended for additional consecutive two-year periods unless otherwise notified in writing by either party upon at least six months prior notice) the right to require the Parent to purchase ("Put Option"), and the Parent has the right to require the seller to sell to the Parent ("Call Option") the seller's remaining 24% interest in Kubatronik. In May 2012, the seller exercised his option with respect to 3% of his remaining shares of Kubatronik for approximately Euro 69 ($89) for such shares and reduced his share in Kubatronik from 24% to 21%. The exercise price for the seller's 21% interest in Kubatronik under the Put Option is Euro 483 ($665), and the exercise price for the seller's remaining holdings in Kubatronik under the Call Option is Euro 513 ($706). The fair value of the above options is calculated based on the Binomial model. Changes in fair value are recorded in the Consolidated Statement of Comprehensive income. See Note 15. | |||||||||||||
Eltek USA Inc. | |||||||||||||
In 2007, the Parent established a wholly-owned subsidiary, Eltek USA Inc. for the purpose of sales, promotion and marketing in the North American market. Eltek USA Inc. commenced operations in 2008. | |||||||||||||
Eltek Europe GmbH | |||||||||||||
In 2008, the Parent established a wholly-owned subsidiary, Eltek Europe GmbH for the purpose of sales, promotion and marketing to certain customers in Europe. Eltek Europe GmbH commenced operations in 2009. | |||||||||||||
B. Basis of presentation | |||||||||||||
The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). | |||||||||||||
The consolidated financial statements include the accounts of the Parent and its subsidiaries. | |||||||||||||
The Parent sells goods through its subsidiaries that function as distributors. | |||||||||||||
All intercompany transactions and balances were eliminated in consolidation. | |||||||||||||
C. Functional and reporting currency | |||||||||||||
The Parent's functional currency is the New Israeli Shekel ("NIS"). Transactions denominated in foreign currencies are translated into NIS using the prevailing exchange rates at the date of the transactions. Gains and losses from the translation of foreign currency transactions are recorded in financial income or expenses. | |||||||||||||
The Company's reporting currency is the U.S. dollar. Assets and liabilities are translated to the reporting currency using the exchange rate at the end of the year. Revenues and expenses are translated to the reporting currency using the average exchange rate for each quarter. Translation adjustments are reported separately as a component of accumulated other comprehensive income. | |||||||||||||
D. | Translation of foreign entity operations | ||||||||||||
The financial statements of foreign subsidiaries are translated into the Parent's functional currency as follows: | |||||||||||||
1 | Assets and liabilities are translated according to the exchange rate on the consolidated balance sheet date including goodwill arising from the acquisition of the subsidiary. | ||||||||||||
2 | Income and expense items are translated according to the weighted average exchange rate on a quarterly basis. | ||||||||||||
3 | The resulting exchange rate differences are classified as a separate item in shareholders' equity. | ||||||||||||
E. Exchange rates and linkage bases | |||||||||||||
1 | Balances linked to the Israeli Consumer Price Index ("CPI") are recorded pursuant to contractual linkage terms of the specific assets and liabilities. | ||||||||||||
2 | Details of the CPI and the representative exchange rates are as follows: | ||||||||||||
Israeli | Exchange rate | Exchange rate | |||||||||||
CPI | of one US dollar | of one Euro | |||||||||||
Points | NIS | NIS | |||||||||||
For the year ended: | |||||||||||||
31-Dec-13 | 220.2 | 3.471 | 4.7819 | ||||||||||
31-Dec-12 | 219.8 | 3.733 | 4.9206 | ||||||||||
31-Dec-11 | 216.26 | 3.821 | 4.938 | ||||||||||
% | % | % | |||||||||||
Changes during the year ended: | |||||||||||||
31-Dec-13 | 1.8 | (7.02 | ) | (2.82 | ) | ||||||||
31-Dec-12 | 1.6 | (2.30 | ) | (0.35 | ) | ||||||||
31-Dec-11 | 2.2 | 7.66 | 4.22 | ||||||||||
F. Use of estimates | |||||||||||||
The preparation of the consolidated financial statements in accordance with U.S. GAAP requires the management of the Company to make estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from these estimates. Significant items subject to such estimates and assumptions include the useful lives of fixed assets, allowance for doubtful accounts, valuation of derivatives, deferred tax assets, inventory, goodwill, put/call options, income tax uncertainties and other contingencies. | |||||||||||||
G. Cash and cash equivalents | |||||||||||||
Cash and cash equivalents are highly-liquid investments which include short-term bank deposits with an original maturity of three months or less from deposit date and which are not restricted by a lien. | |||||||||||||
H. Trade accounts receivable | |||||||||||||
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. | |||||||||||||
The allowance for doubtful accounts receivable is calculated on the basis of specific identification of customer balances. The allowance is determined based on management's estimate of the aged receivable balance considered uncollectible, based on historical experience, aging of the receivable and information available about specific customers, including their financial condition and volume of their operations. | |||||||||||||
The activity in the allowance for doubtful accounts for the three years ended December 31, 2013 is as follows: | |||||||||||||
Year ended December 31 | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
$ thousands | |||||||||||||
Opening balance | 95 | 93 | 340 | ||||||||||
Additions during the year | - | 1 | 14 | ||||||||||
Write off of allowance | (9 | ) | - | (263 | ) | ||||||||
Foreign currency translation adjustments | (4 | ) | 1 | 2 | |||||||||
Closing balance | 82 | 95 | 93 | ||||||||||
I. Inventories | |||||||||||||
Inventories are recorded at the lower of cost or market value. Cost is determined on the weighted average basis for raw materials. For work in progress and finished goods, the cost is determined pursuant to calculation of accumulated actual direct and indirect costs. | |||||||||||||
J. Assets held for employees' severance payments | |||||||||||||
Assets held for employees' severance payments represent contributions to insurance policies and deposits to a central severance pay fund, and are recorded at their current redemption value. | |||||||||||||
K. Fixed assets | |||||||||||||
Fixed assets are stated at cost. Depreciation is computed by the straight-line method over the estimated useful lives of the assets at the following annual rates: | |||||||||||||
% | |||||||||||||
Machinery and equipment | May-33 | ||||||||||||
Leasehold improvements | 14-Jun | ||||||||||||
Motor vehicles | 15 | ||||||||||||
Office furniture and equipment | Jun-33 | ||||||||||||
Machinery and equipment purchased under capital lease arrangements are recorded at the present value of the minimum lease payments at lease inception. Such assets and leasehold improvements are depreciated and amortized respectively, using the straight-line method over the shorter of the lease term or estimated useful life of the asset. | |||||||||||||
Long-lived assets, such as property, plant, and equipment 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 asset group 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, 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. | |||||||||||||
L. Goodwill | |||||||||||||
Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Goodwill is reviewed for impairment at least annually. In September 2011, the FASB issued ASU 2011-08, Testing Goodwill for Impairment, which provides an entity the option to perform a qualitative assessment to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount prior to performing the two-step goodwill impairment test. If this is the case, the two-step goodwill impairment test is required. If it is more-likely-than-not that the fair value of a reporting unit is greater than its carrying amount, the two-step goodwill impairment test is not required. The Company adopted this guidance in 2011. | |||||||||||||
If the two-step goodwill impairment test is required, first, the fair value of the reporting unit is compared with its carrying amount (including goodwill). If the fair value of the reporting unit is less than its carrying amount, an indication of goodwill impairment exists for the reporting unit and the entity must perform step two of the impairment test (measurement). Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit's goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation and the residual fair value after this allocation is the implied fair value of the reporting unit goodwill. Fair value of the reporting unit is determined using a discounted cash flow analysis. If the fair value of the reporting unit exceeds its carrying amount, step two does not need to be performed. | |||||||||||||
The Company performs its annual impairment review of goodwill at the beginning of the following year, and when a triggering event occurs between annual impairment tests. The Company recorded an impairment loss of $481 in 2012. See note 5. For 2013, the Company performed a qualitative assessment of goodwill and determined that it is not more likely than not that the fair values of its reporting units are less than the carrying amounts. Accordingly, no impairment loss was recorded in 2013. See Note 5. | |||||||||||||
M. Income taxes | |||||||||||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. 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 income 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. | |||||||||||||
N. Revenue recognition | |||||||||||||
The Company recognizes revenue upon shipment of the product and after the customer takes ownership and assumes risk of loss, collection of the corresponding receivable is probable, persuasive evidence of an arrangement exists, and the sales price is fixed or determinable. Commission income is accounted for on the accrual basis. | |||||||||||||
O. Earnings per ordinary share | |||||||||||||
Diluted earnings per ordinary share calculation is similar to basic earnings per share except that the weighted average of ordinary shares outstanding is increased to include the number of additional ordinary shares that would have been outstanding if the outstanding options had been exercised, to the extent that these options had a diluted effect. The Company does not presently have such dilutive instruments. | |||||||||||||
P. Derivative financial instruments | |||||||||||||
The Company utilizes derivative financial instruments principally to manage market risks and reduce its exposure resulting from fluctuations in foreign currency exchange rates. The Company holds put/call options with the minority shareholder of Kubatronik for the purchase/sale of the minority holding in Kubatronik (see Note 15). Derivatives and the put/call options are adjusted to fair value through income. | |||||||||||||
Changes in fair value are recognized in the consolidated statements of comprehensive income as a financing item. | |||||||||||||
The fair value of derivative financial instruments is determined on the basis of their market values or the quotations of financial institutions. In the absence of a market value or financial institution quotation the fair value is determined on the basis of a valuation model. | |||||||||||||
Q. Concentration of credit risk | |||||||||||||
Financial instruments that may subject the Company to significant concentrations of credit risk consist principally of cash and trade accounts receivable. Cash is deposited with major financial institutions in Israel, Europe and the United States. | |||||||||||||
The Company performs ongoing credit evaluations of the financial condition of its customers. The risk of collection associated with trade receivables is reduced by the large number and geographical dispersion of the Company's customer base, and the Company's policy of obtaining credit evaluations of the financial condition of certain customers, requiring collateral or security with respect to certain receivables, or purchase of insurance for certain other receivables. | |||||||||||||
R. Commitments and 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. | |||||||||||||
S. Fair value measurements | |||||||||||||
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 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. | ||||||||||||
See Note 15. | |||||||||||||
T. Recently issued accounting standards | |||||||||||||
In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU 2013-11 requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. ASU 2013-11 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The new standard is to be applied prospectively but retrospective application is permitted. The Company does not expect the provisions of this ASU to have a material effect on the financial statements. | |||||||||||||
Cash_and_Cash_Equivalents
Cash and Cash Equivalents | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Cash and Cash Equivalents [Abstract] | ' | ||||||||
Cash and cash equivalents | ' | ||||||||
Note 2 - Cash and Cash Equivalents | |||||||||
31-Dec | |||||||||
2013 | 2012 | ||||||||
Denominated in U.S. dollars | 886 | 431 | |||||||
Denominated in NIS | 1,304 | 872 | |||||||
Denominated in Euro | 324 | 632 | |||||||
2,514 | 1,935 |
Inventories
Inventories | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventories [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Note 3 - Inventories | |||||||||
31-Dec | |||||||||
2013 | 2012 | ||||||||
Raw materials | 2,168 | 2,078 | |||||||
Work-in-process | 2,616 | 2,270 | |||||||
Finished products | 1,325 | 896 | |||||||
6,109 | 5,244 | ||||||||
Fixed_Assets_Net
Fixed Assets, Net | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Fixed Assets, Net [Abstract] | ' | ||||||||
Fixed Assets, Net | ' | ||||||||
Note 4 - Fixed Assets, Net | |||||||||
31-Dec | |||||||||
2013 | 2012 | ||||||||
Machinery and equipment | 40,347 | 36,424 | |||||||
Leasehold improvements | 9,321 | 8,558 | |||||||
Motor vehicles | 114 | 102 | |||||||
Office furniture and equipment | 1,653 | 1,530 | |||||||
Fixed assets | 51,435 | 46,614 | |||||||
Accumulated depreciation | (41,327 | ) | (37,539 | ) | |||||
Fixed assets less accumulated depreciation | 10,108 | 9,075 | |||||||
Depreciation expense for the years ended December 31, 2013, 2012 and 2011 were $1,739, $1,772 and $2,091 respectively. | |||||||||
Goodwill
Goodwill | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Goodwill [Abstract] | ' | ||||||||
Goodwill | ' | ||||||||
Note 5 - Goodwill | |||||||||
Changes in the carrying amount of goodwill for the years ended December 31, 2013 and 2012 are as follows: | |||||||||
31-Dec | |||||||||
2013 | 2012 | ||||||||
Balance at the beginning of the year | 69 | 518 | |||||||
Increase due to increase in holding | - | 20 | |||||||
Impairment on goodwill | - | (481 | ) | ||||||
Effect of translation adjustments | 6 | 12 | |||||||
75 | 69 |
Shortterm_Credit_and_Current_M
Short-term Credit and Current Maturities of Long-term Debt | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Short-term Credit and Current Maturities of Long-term Debt[Abstract] | ' | ||||||||||||
Short-term Credit and Current Maturities of Long-term Debt | ' | ||||||||||||
Note 6 - Short-term Credit and Current Maturities of Long-term Debt | |||||||||||||
Banks | |||||||||||||
Annual | |||||||||||||
interest rate at | |||||||||||||
31-Dec | 31-Dec | ||||||||||||
2013 | 2013 | 2012 | |||||||||||
% | |||||||||||||
In NIS (linked to the Prime rate) | 5.75 - 6.75 | 1,469 | 3,774 | ||||||||||
In U.S. dollars | 3.81 - 4.41 | 110 | 110 | ||||||||||
Current maturities of long-term | |||||||||||||
debt from banks (Note 8) | 239 | 1,221 | |||||||||||
1,818 | 5,105 |
Other_Current_Liabilities
Other Current Liabilities | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Other Current Liabilities [Abstract] | ' | ||||||||
Other Current Liabilities | ' | ||||||||
Note 7 - Other Current Liabilities | |||||||||
31-Dec | |||||||||
2013 | 2012 | ||||||||
Accrued payroll and related benefits | 1,134 | 1,177 | |||||||
Provision for vacation and other employee benefits | 1,973 | 1,642 | |||||||
Net written put option (Note 1A) | 554 | 497 | |||||||
Accrued expenses | 812 | 859 | |||||||
Employees' severance benefits (Note 9D) | 115 | - | |||||||
Provision for contingent liabilities (Note 10D) | 202 | - | |||||||
Other liabilities | 521 | 244 | |||||||
5,311 | 4,419 |
LongTerm_Debt_Excluding_Curren
Long-Term Debt, Excluding Current Maturities | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Long-term Debt, Excluding Current Maturities [Abstract] | ' | ||||||||||||
Long-term Debt, Excluding Current Maturities | ' | ||||||||||||
Note 8 - Long-term Debt, Excluding Current Maturities | |||||||||||||
Banks and others | |||||||||||||
Annual | |||||||||||||
interest rate at | |||||||||||||
31-Dec | 31-Dec | ||||||||||||
2013 | 2013 | 2012 | |||||||||||
% | |||||||||||||
Linkage terms | |||||||||||||
U.S. dollar | 5.89 - 8.56 | 615 | 1,133 | ||||||||||
NIS - not linked | 6 | 225 | - | ||||||||||
Euro | 2.17 - 3.86 | 454 | 95 | ||||||||||
NIS - linked to the Prime rate | P+0.9 | 68 | 980 | ||||||||||
U.S. dollar linked to Libor | 4-4.5 | 720 | - | ||||||||||
2,082 | 2,208 | ||||||||||||
Less - current maturities (banks and others) | (670 | ) | (1,480 | ) | |||||||||
1,412 | 728 | ||||||||||||
Minimum future payments at December 31, 2013 due under the long-term debt is as follows: | |||||||||||||
Long-term | |||||||||||||
Loan | |||||||||||||
First year | 670 | ||||||||||||
Second year | 545 | ||||||||||||
Third year and thereafter | 867 | ||||||||||||
2,082 | |||||||||||||
Long-term debt (excluding current maturities) includes capital leases in the amounts of $892 and $650 for the years ended December 31, 2013 and 2012, respectively. | |||||||||||||
For the year ended December 31, 2013 and onward, the Company's banks require the Company to maintain certain financial covenants. In April 2014, the Company signed a new financial undertakings letter, effective for the financial statements for the year ended December 31, 2013 and onward, pursuant to which it is required to maintain: (i) adjusted shareholders' equity equal to the greater of $4.5 million or 17% of its consolidated total assets; and (ii) a debt service ratio of 1.5. For this purpose, adjusted shareholders' equity excludes certain intangible and other assets. Debt service ratio is defined as the ratio of EBITDA to current maturities of long-term debt plus interest expenses. As of December 31, 2013, the Company was in compliance with such covenants. | |||||||||||||
Financial covenants in respect of the Company's credit facilities and long-term debt with another bank require the Company to maintain the greater of shareholders' equity, excluding certain intangible assets and prepaid expenses (except insurance premiums), of NIS 10 million ($2.6 million), or 11% of the Parent's total assets (on a non-consolidated basis). As of December 31, 2013, the Company was in compliance with such covenants. | |||||||||||||
As part of the Company's discussions with the banks for obtaining new lines of credits, the financial covenants may be amended. | |||||||||||||
As to pledges securing the loans, see Note 10A. |
Employee_Severance_Benefits
Employee Severance Benefits | 12 Months Ended | ||
Dec. 31, 2013 | |||
Employee Severance Benefits [Abstract] | ' | ||
Employee Severance Benefits | ' | ||
Note 9 - Employee Severance Benefits | |||
Under Israeli law and labor agreements, the Parent is required to make severance and pension payments to their retired or dismissed employees and to employees leaving employment in certain other circumstances. | |||
A. | The Parent has an approval from the Israeli Ministry of Labor and Social Welfare, pursuant to the terms of Section 14 of the Israeli Severance Pay Law, 1963, according to which the current deposits in the pension fund and/or with the insurance company exempt it from any additional obligation to the employees for whom such depository payments were made. | ||
B. | The Parent's employees participate in a pension plan or individual insurance policies are purchased. The Parent's liability for severance obligations for the employees employed for one year or more is discharged by making regular deposits with a pension fund or the insurance policies. Under Israeli law, there is no liability for severance pay in respect of employees who have not completed one year of employment. The amount deposited with the pension fund or the insurance policies is based on salary components as prescribed in the existing labor agreement. The custody and management of the amounts so deposited are independent of the Parent and accordingly, such amounts funded and related liabilities are not reflected in the balance sheet. | ||
For the non-management employees, the Parent deposits 72% of its liability for severance obligations with a pension fund for such employees, and upon completion of one year of employment with the Parent, it makes a one-time deposit with the pension fund for the remaining balance. | |||
In 2011, the Parent made a transfer of funds from a central severance fund to individual funds in the name of the employees for the unfunded liability in respect of the employees, which pursuant to Section 14 of the Israeli Severance Pay Law, it discharged its liability in respect of such employees severance pay. As a result, the balance of assets held for employees severance pay was reduced, and the liability was reduced accordingly. | |||
C. | Kubatronik owns an insurance policy and makes regular deposits with an insurance company for securing pension rights on behalf of one of its former employees. Such amounts deposited and the related liabilities are reflected in the consolidated balance sheet. In December 2012 the employee resigned from Kubatronik, however his pension entitlement up to the end of his employment with the Company continues. | ||
In respect of its other employees, Kubatronik does not make any deposits for pension or retirement rights, since such deposits are not required under German law. | |||
D. | Total liability for employees' severance benefits as at December 31, 2013 amounted to $ 452 thousand. The current portion amounting to $115 thousand is recorded in the short-term liabilities. | ||
Expenses recorded in respect of the unfunded liability for employee severance payments for the years ended December 31, 2013, 2012, and 2011 are $231, $57 and $102, respectively. |
Commitments_and_Contingent_Lia
Commitments and Contingent Liabilities | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Commitments and Contingent Liabilities [Abstract] | ' | ||||||||
Commitments and Contingent Liabilities | ' | ||||||||
Note 10 - Commitments and Contingent Liabilities | |||||||||
A. | Pledges | ||||||||
1 | The Company has pledged certain items of its equipment and the rights to any insurance claims on such items to secure its indebtedness with banks, as well as floating liens on all of its remaining assets in favor of the banks. | ||||||||
2 | The Company has pledged certain items of its equipment as a guarantee for the implementation of its benefited enterprise. The Company has determined that it is in compliance with the conditions of the approval (see Note 14A). | ||||||||
3 | The Company has also pledged machines to secure its indebtedness to certain suppliers that provided financing to such equipment. | ||||||||
B. | Operating leases and other agreements | ||||||||
1 | The premises occupied by the Parent and Kubatronik are leased under two operating agreements that expire in February 2017 and June 2015, respectively. | ||||||||
2 | The Parent has signed several lease and maintenance agreements for production equipment with suppliers of equipment and software. Of such agreements, the main principal agreement expires in June 2017. | ||||||||
3 | Several production machines are leased by Kubatronik under operating agreements which will expire in June 2017. | ||||||||
4 | The Parent's motor vehicles are leased under operating lease agreements, mainly for three-year terms. | ||||||||
5 | Minimum future payments at December 31, 2013 due under the above agreements over the next five years and thereafter are as follows: | ||||||||
Premises | Other | ||||||||
leases | agreements | ||||||||
First year | 1,152 | 663 | |||||||
Second year | 1,099 | 424 | |||||||
Third year | 1,046 | 277 | |||||||
Fourth year | 288 | 115 | |||||||
Fifth year and thereafter | 187 | - | |||||||
3,772 | 1,479 | ||||||||
Payments required under these agreements are charged to expense by the straight-line method over the periods of the respective leases. | |||||||||
Expenses recorded under these agreements for the years ended December 31, 2013, 2012, and 2011 were $ 1,471, $1,183, and $1,519, respectively. | |||||||||
C. Indemnification agreement | |||||||||
The Parent entered into an indemnification agreement with its directors and officers and undertook to enter into the same agreement with future directors and officers, for losses incurred by a director or officer. Such indemnification amount is limited to the lesser of $2,000 or 25% of the Parent's shareholders' equity. | |||||||||
The Israeli Companies Law provides that an Israeli company cannot exculpate an officer from liability with respect to a breach of his or her duty of loyalty. If permitted by its articles of association, a company may exculpate in advance an officer from his or her liability to the company, in whole or in part, with respect to a breach of his or her duty of care. However, a company may not exculpate in advance a director from his or her liability to the company with respect to a breach of his duty of care with respect to distributions. | |||||||||
The Company's articles of association allow it to exculpate any officer from his or her liability for breach of duty of care, to the maximum extent permitted by law, before or after the occurrence giving rise to such liability. The Company provided an exemption letter to each of our directors and officers, and agreed to provide the same to future officers. | |||||||||
D. Contingent Liabilities | |||||||||
Environmental Related Matters | |||||||||
On August 25, 2009, the Parent received a notice from the Petach Tikva Municipality claiming that random automatic wastewater samplings in proximity of its plant indicate high levels of metal concentrations which exceed the amounts permitted by law. The Municipality requested an explanation of such alleged violation and further informed the Parent that its environmental department had determined to initiate procedures against any plant that is not in compliance with the permitted concentrations. On September 16, 2009, the Parent sent a letter to the Municipality explaining that it had invested significant funds and resources each year in order to comply with all environmental legal requirements. The Parent further indicated that it had been and continued to be engaged in several projects to reduce salt and metal concentrations in its plant wastewater and that it constantly updates its procedures with respect to environmental matters. In addition, the Parent proposed to collaborate with the Municipality and conduct mutual tests to ensure maximum protection of the environment. To date, the Parent has not received a response from the Municipality to its letter dated September 16, 2009. If the Parent is found to be in violation of environmental laws, it could be liable for damages and costs of remedial actions and could also be subject to revocation of the permits necessary to conduct its business. Any such liability or revocation could have a material adverse effect on the Company's business, financial condition and results of operations. | |||||||||
On May 4, 2010, the Parent received legal notice from the Magistrate's Court that the Public Council for the Prevention of Noise and Pollution in Israel (the "Public Council") had filed a lawsuit against it and certain of its directors regarding several alleged environmental damages caused by its release of industrial waste water. On May 3, 2011, the Parent and its directors entered into a settlement agreement with the Public Council. The settlement agreement recognizes the significant improvement in the quality of the Parent's wastewater and the contribution of the Public Council to this effort. The Public Council undertook not to take any action (civil, criminal, or administrative) against the Parent and its directors or file any complaint with any regulatory agency regarding the matter for a one year period from the date on which the Court approves the settlement. The Parent undertook to pay the Public Council NIS 75 ($22) (plus applicable V.A.T.) for its expenses. On May 4, 2011, the Court approved the settlement agreement and the settlement was given the effect of a judgment. | |||||||||
On January 1, 2014, the Parent received a notice dated December 31, 2013, from Meitav, the water company of the Petach Tikva municipality, requesting payment of fees totaling NIS 962 ($273) (plus applicable V.A.T.), for alleged discharges of "forbidden" industrial wastewater into the municipal sewage system, on the basis of three samplings conducted by Meitav on Eltek's premises during 2013. These samplings covered water consumption of 35,000 cubic meters of water out of 55,000 cubic meters consumed in 2013, thus the Parent may be subject to a potential payment request of approximately NIS 500 ($142). The Parent is currently reviewing and assessing the demand of payment. Based on current information, the Parent disputes the method of samplings conducted (Grab Samplings instead of Complex Samplings) and the location the samples were retrieved from. The Parent will also examine the legitimacy of Meitav's Wastewater Monitoring Plan and the legality of its execution. The Parent also believes that the new suggested Water and Sewage Corporations Rules (discharge of Industrial Wastewater into the Sewage System), 5774 - 2013 draft, published by the Water Authority, supports its argument as to the method of samplings conducted on its premises. The Parent will also exercise its right of hearing and intends to appeal, if necessary, to the proper forum. In addition, one of the remedies requested in a petition held in the Israeli Supreme Court of Justice filed by the Manufacturers Association of Israel against the Water Authority, is a cancelation of all pending demands of payment. At the same time, the Parent is involved in discussion with Meitav, presenting its plans to invest in its Wastewater Treatment Facility, in order to eliminate the demand for payment. Management believes that the Parent has good arguments against such demand for payment and believes that the Parent will not be liable to pay to Meitav any additional amounts beyond the amounts provided for in these financial statements. | |||||||||
If the Parent is found to be in violation of environmental laws, it could be liable for damages and costs of remedial actions and could also be subject to revocation of permits necessary to conduct its business or any part thereof. Any such liability or revocation could have a material adverse effect on the business, financial condition and results of operations. | |||||||||
Employee Related Matters | |||||||||
Two lawsuits have been filed in May 2008 and in March 2012 against the Parent by two employees alleging that they had suffered personal injuries during their employment with the Parent and are seeking aggregate financial compensation of approximately $180 for past damages and additional amounts for future lost income, pain and suffering as the court may determine. | |||||||||
In addition, five other employees notified the Parent between January 2011 and July 2013 that they allegedly suffered personal injuries during their employment with the Parent. Of these four employees, one is seeking compensation of $170 and the others did not state their claim amount. The Parent submitted the claims to its insurance company, which informed the Parent that it is reviewing the statements of claim without prejudicing its rights to deny coverage. | |||||||||
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Shareholders' Equity [Abstract] | ' | ||||||||||||
Shareholders' Equity | ' | ||||||||||||
Note 11 - Shareholders' Equity | |||||||||||||
Authorized, issued and outstanding share capital in historical terms is as follows: | |||||||||||||
Authorized | Issued and outstanding | ||||||||||||
31-Dec | 31-Dec | 31-Dec | |||||||||||
2012 and 2013 | 2013 | 2012 | |||||||||||
Number of shares: | |||||||||||||
Ordinary shares of par value NIS 0.6 each | 50,000,000 | 10,142,762 | 6,610,107 | ||||||||||
Amount in US$ | |||||||||||||
Ordinary shares of par value NIS 0.6 each | 1,985,280 | 1,384,318 | |||||||||||
Revenues
Revenues | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Revenues [Abstract] | ' | ||||||||||||
Revenues | ' | ||||||||||||
Note 12 - Revenues | |||||||||||||
A. Customers who accounted for over 10% of the total consolidated revenues: | |||||||||||||
Year ended December 31 | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Customer A - Sales of | |||||||||||||
manufactured products | 18.4 | % | 17.2 | % | 14.9 | % | |||||||
B. Revenues by geographic areas | |||||||||||||
Year ended December 31 | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Israel | 27,992 | 21,965 | 22,866 | ||||||||||
Europe | 10,623 | 11,583 | 13,400 | ||||||||||
North America | 6,227 | 7,664 | 5,400 | ||||||||||
Rest of the world | 5,393 | 4,434 | 5,164 | ||||||||||
50,235 | 45,646 | 46,830 | |||||||||||
C. Fixed assets, net by geographic areas | |||||||||||||
Year ended December 31 | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Israel | 9,534 | 8,617 | 7,233 | ||||||||||
Europe | 561 | 445 | 503 | ||||||||||
North America | 13 | 13 | 10 | ||||||||||
10,108 | 9,075 | 7,746 |
Financial_Expenses_Net
Financial Expenses, Net | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Financial Expenses, Net [Abstract] | ' | ||||||||||||
Financial Expenses, Net | ' | ||||||||||||
Note 13 - Financial Expenses, Net | |||||||||||||
Year ended December 31 | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Interest and exchange rate expenses on | |||||||||||||
long-term loans | 106 | 126 | 166 | ||||||||||
Expenses on short-term credit and bank | |||||||||||||
charges | 284 | 281 | 464 | ||||||||||
Effect of exchange rate differences on other | |||||||||||||
expenses and net loss from derivative | |||||||||||||
instruments | 19 | 137 | 110 | ||||||||||
Other financing expenses (income), net | 30 | (1 | ) | - | |||||||||
439 | 543 | 740 | |||||||||||
The Company uses forward contracts and options to manage some of its foreign exchange rate exposures. Such transactions were not designated as hedging instruments for accounting purposes. | |||||||||||||
Taxes_on_Income
Taxes on Income | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Taxes on Income [Abstract] | ' | ||||||||||||
Taxes on Income | ' | ||||||||||||
Note 14 - Taxes on Income | |||||||||||||
A. | Tax benefits under the Israeli Law for the Encouragement of Capital Investments, 1959 (the "Law") | ||||||||||||
1. Beneficiary enterprise | |||||||||||||
The Parent has production facilities in Israel qualified as "Beneficiary Enterprises" in accordance with the Law, as amended in 2005, which provides certain tax benefits to investment programs of an "Approved Enterprise" or "Beneficiary Enterprise." The Parent's first Beneficiary Enterprise was converted from a previously "Approved Enterprise" program pursuant to the approval of the Israel Tax Authority that the Parent received in September 2006. In the past certain of the Parent's production facilities were granted approved enterprise status pursuant to the Law; however, the benefit periods for such approved enterprises expired in 2005. Additionally, the Parent has elected 2012 as the year of election. | |||||||||||||
The income generated by the "Beneficiary Enterprise" is exempt from tax over a period of two years, beginning with the year in which the Parent first had taxable income. The period of tax benefit of the first Beneficiary Enterprise has not yet commenced and will expire not later than 2016. The period of tax benefit of the second beneficiary enterprise has not yet commenced and will expire not later than 2023. The benefits are contingent upon compliance with the terms of the Encouragement Law (export rate, etc.). The Parent is currently in compliance with these terms. | |||||||||||||
A company having a Beneficiary Enterprise that distributes a dividend from exempt income, will be required in the tax year of the dividend distribution to pay company tax on the amount of the dividend distributed (including the company tax required as a result of the distribution) at the tax rate that would have been applicable to it in the year the income was produced if it had not been exempt from tax. The Parent did not have exempt income from the above "Beneficiary Enterprise". | |||||||||||||
2 | Amendment 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"). The Amendment is effective from January 1, 2011 and its provisions apply to preferred income derived or accrued in 2011 and thereafter by a preferred company, per the definition of these terms in the Amendment. | |||||||||||||
Companies can choose not to be included in the scope of the amendment to the Encouragement Law and to stay in the scope of the law before its amendment until the end of the benefits period of its approved/beneficiary enterprise. The 2012 tax year was the last year companies could have chosen 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. 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. | |||||||||||||
The Amendment also provides that no income 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 Parent 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 Parent intends to implement the Amendment in future tax years. Therefore, the deferred tax balance as of December 31, 2013 was calculated based on the rate provided by the Amendment. | |||||||||||||
B. Corporate tax rate | |||||||||||||
Presented hereunder are the tax rates relevant to the Parent 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. | |||||||||||||
Current taxes for the reported periods are calculated according to the tax rates presented above. | |||||||||||||
C. | Tax losses and tax credits carryforwards | ||||||||||||
As of December 31, 2013, the Parent's tax loss carryforwards were approximately $15.9 million operating losses and $4.4 million capital losses and Kubatronik's tax loss carryforwards were Euro 840 ($1.2 million) for corporate tax and Euro 775 ($1.1 million) for municipal corporate tax. Additionally, the Parent's tax credits carryforward was $952. | |||||||||||||
The Parent's tax loss carryforward and tax credits carryforward do not have expiration dates. Kubatronik's tax loss carryforward may be subject to restrictions if a change of control in Kubatronik occurs. | |||||||||||||
D. | Income tax assessments | ||||||||||||
The Parent files its income tax return in Israel, Kubatronik and Eltek Europe file their income tax returns in Germany and Eltek USA files its income tax return in the United States. | |||||||||||||
In Israel, the Parent has received final tax assessments through the 1995 tax year. Assessments through the 2008 tax year are considered final due to statute of limitations. The Israeli tax returns of the Parent may be audited by the Israeli Tax Authorities for the tax years beginning in 2009. | |||||||||||||
Kubatronik and Eltek Europe have received final tax assessments through the 2010 tax year. The tax returns of Kubatronik and Eltek Europe remain subject to audit for the tax years beginning in 2011. The tax returns of Eltek USA remain subject to audit for the tax years beginning in 2009. | |||||||||||||
The Parent's other foreign subsidiaries have not yet received any final tax assessments since their incorporation. | |||||||||||||
E. | Profit before tax and income tax expense (benefit) included in the consolidated statements of comprehensive income | ||||||||||||
Year ended | Year ended | Year ended | |||||||||||
31-Dec | 31-Dec | 31-Dec | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Profit before income tax expense: | |||||||||||||
Israel | 782 | 495 | 1,867 | ||||||||||
Foreign jurisdictions | 24 | 253 | (21 | ) | |||||||||
806 | 748 | 1,846 | |||||||||||
Current tax expense (benefit): | |||||||||||||
Israel | (41 | ) | - | - | |||||||||
Foreign jurisdictions | 78 | 52 | 31 | ||||||||||
37 | 52 | 31 | |||||||||||
Deferred taxes: | |||||||||||||
Israel | (3,079 | ) | - | - | |||||||||
Foreign jurisdictions | 67 | - | - | ||||||||||
(3,012 | ) | - | - | ||||||||||
Income tax expense (benefit) | (2,975 | ) | 52 | 31 | |||||||||
The deferred tax assets utilized in 2012 and 2011 were $1.1 million and $2.7 million respectively. | |||||||||||||
F. | Reconciliation of the theoretical income tax expense (benefit) to the actual income tax expense | ||||||||||||
A reconciliation of the theoretical income tax expense (benefit), assuming all income is taxable at the statutory rates applicable in Israel, and the actual income tax expense, is as follows: | |||||||||||||
Year ended | Year ended | Year ended | |||||||||||
31-Dec | 31-Dec | 31-Dec | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Profit before income tax expense (benefit) as | |||||||||||||
reported in the consolidated | |||||||||||||
statements of comprehensive income | 806 | 748 | 1,846 | ||||||||||
Statutory tax rates | 25 | % | 25 | % | 24 | % | |||||||
Theoretical tax expense calculated | 202 | 187 | 443 | ||||||||||
Other | (118 | ) | 15 | 14 | |||||||||
Changed in liability for undistributed income of subsidiaries | 132 | - | - | ||||||||||
Change in valuation allowance | (2,540 | ) | 1,095 | (492 | ) | ||||||||
Loss on investment in subsidiaries | - | (1,098 | ) | - | |||||||||
Adjustment to net loss carryforward | 142 | ||||||||||||
Change in effective corporate tax | |||||||||||||
rates | (757 | ) | - | 287 | |||||||||
Tax benefit arising from | |||||||||||||
"Beneficiating and Preferred | |||||||||||||
enterprises" (*) | (70 | ) | (146 | ) | (229 | ) | |||||||
Foreign tax rate differential in | |||||||||||||
subsidiaries | 34 | (1 | ) | 8 | |||||||||
Total | (3,177 | ) | (135 | ) | (412 | ) | |||||||
Income tax expense (benefit) | (2,975 | ) | 52 | 31 | |||||||||
(*) Net earnings per share - amounts of the benefit resulting from the Approved and Preferred Enterprises: 2013- $0.01, 2012- $0.02, 2011- $0.03 | |||||||||||||
G. | Deferred tax assets and liabilities | ||||||||||||
Deferred taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and such amounts for income tax purposes. Significant components of the Company's deferred tax liabilities and assets are as follows: | |||||||||||||
31-Dec | 31-Dec | ||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Net operating loss carryforwards (in Israel) | 2,543 | 1,865 | |||||||||||
Net operating loss carryforwards (outside Israel) | 343 | 485 | |||||||||||
Capital loss carryforwards (in Israel) | 1,252 | 1,098 | |||||||||||
Severance benefits | 32 | 8 | |||||||||||
Provision for vacation pay | 280 | 174 | |||||||||||
Tax credit carryforward | 952 | 840 | |||||||||||
Allowance for doubtful accounts | 13 | 11 | |||||||||||
Total gross deferred tax assets | 5,415 | 4,481 | |||||||||||
Less valuation allowance | (1,595 | ) | (4,135 | ) | |||||||||
Net deferred tax assets | 3,820 | 346 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Undistributed income of subsidiaries | (134 | ) | - | ||||||||||
Fixed assets - differences in depreciation | (635 | ) | (346 | ) | |||||||||
Total gross deferred tax liabilities | (769 | ) | (346 | ) | |||||||||
Net deferred tax assets | 3,051 | - | |||||||||||
Deferred tax assets, short-term (in other current assets) | 188 | - | |||||||||||
Deferred tax assets, long-term | 2,863 | - | |||||||||||
Despite the Company's accumulated profits in Israel during the years ended December 31, 2012 and 2011, the Company recorded a full valuation allowance for deferred tax assets with respect to its deferred tax assets in Israel due to uncertainty about its ability to utilize such losses in the future. | |||||||||||||
During the year, the Parent determined that the deferred tax assets were more likely than not to be realized in future years, based on three years of consistent profits. Accordingly, the Company reversed the valuation allowance, in the amount of $2.5 million. The amount of the deferred tax asset considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carryforward period are reduced. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which those temporary differences are deductible. Management considers the scheduled reversal of deferred tax liabilities, projected taxable income, and tax-planning strategies in making this assessment. The valuation allowance for deferred tax assets as of December 31, 2013 and 2012, was $1,595 and $4,135 respectively. The net change in the total valuation allowance for each of the years ended December 31, 2013, 2012 and 2011, was an increase (decrease) of $(2,540), $ 1,095 and $(492), respectively. | |||||||||||||
Certain comparative figures in note 14F and 14G have been changed to reflect changes in the deferred tax assets and liabilities and related valuation allowance. | |||||||||||||
H. Accounting for uncertainty in income taxes | |||||||||||||
For the twelve-month periods ended December 31, 2013, 2012 and 2011, the Company did not have any unrecognized tax benefits and thus, no interest and penalties related to unrecognized tax benefits were recognized. In addition, the Company does not expect that the amount of unrecognized tax benefits will change significantly within the next twelve months. | |||||||||||||
Financial_Instruments_and_Risk
Financial Instruments and Risk Management | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Financial Instruments and Risk Management [Abstract] | ' | ||||||||||||||||||||
Financial Instruments and Risk Management | ' | ||||||||||||||||||||
Note 15 - Financial Instruments and Risk Management | |||||||||||||||||||||
The Company measures its long-term bank loans and net written put option (see Note 1A) at fair value. In accordance with ASC 820-10, the Company's long-term bank loans and foreign currency derivative contracts are classified within Level 2, because they are valued utilizing market observable inputs. The net written put option is classified within Level 3 because it is valued using a Binomial model which utilizes significant inputs that are unobservable in the market such as expected stock price volatility, risk-free interest rate and the dividend yield, and remaining period of time the options will be outstanding before they expire. | |||||||||||||||||||||
The following table presents the Company's assets and liabilities measured at fair value on a recurring basis as of December 31, 2013 and 2012, aggregated by the level in the fair-value hierarchy within which those measurements fall: | |||||||||||||||||||||
Quoted prices | Significant | ||||||||||||||||||||
December 31, | December 31, | in active | other | Significant | |||||||||||||||||
2013 | 2013 | markets for | observable | unobservable | |||||||||||||||||
Carrying | identical assets | inputs | inputs | ||||||||||||||||||
Amount | Fair value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
Liabilities : | |||||||||||||||||||||
Long-term debt | 788 | 704 | - | 704 | - | ||||||||||||||||
Net written put option | 554 | 554 | - | - | 554 | ||||||||||||||||
Total | 1,342 | 1,258 | - | 704 | 554 | ||||||||||||||||
Quoted prices | Significant | ||||||||||||||||||||
December 31, | December 31, | in active | other | Significant | |||||||||||||||||
2012 | 2012 | markets for | observable | unobservable | |||||||||||||||||
Carrying | identical assets | inputs | inputs | ||||||||||||||||||
Amount | Fair value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
Liabilities : | |||||||||||||||||||||
Long-term debt | 1,296 | 1,271 | - | 1,271 | - | ||||||||||||||||
Net written put | |||||||||||||||||||||
option | 497 | 497 | - | - | 497 | ||||||||||||||||
Total | 1,793 | 1,768 | - | 1,271 | 497 | ||||||||||||||||
In addition to the above, the Company's financial instruments at December 31, 2013 and 2012, consisted of cash and cash equivalents, bank deposits, trade and other accounts receivable, other current assets, short-term credit provided by financial institutions, and trade and other payables. The carrying amounts of all the aforementioned financial instruments, at face value or cost plus accrued interest, approximate fair value due to the short maturity of these instruments. | |||||||||||||||||||||
The changes in the Company's liabilities measured at fair value using significant unobservable inputs (Level 3), during the years ended December 31, 2013 and 2012 were changes in the fair value of the net written put option charged to financial expense in the Consolidated Statement of Comprehensive Income of $35 and $135, respectively, and translation adjustments included in financial income in the Consolidated Statement of Comprehensive Income $(15) and $9, respectively. | |||||||||||||||||||||
These Consolidated Financial Statements do not include any nonrecurring fair value measurements relating to assets and liabilities for which the Company has adopted the provisions of ASC Topic 820. |
Related_Party_Balances_and_Tra
Related Party Balances and Transactions | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Related Party Balances and Transactions [Abstract] | ' | ||||||||||||
Related Party Balances and Transactions | ' | ||||||||||||
Note 16 - Related Party Balances and Transactions | |||||||||||||
The Company carries out transactions with related parties as detailed below. Until November 2013, the Company's principal shareholder was also the principal shareholder of an affiliated supplier. | |||||||||||||
One of the Company's customers, Nistec, became a related party in November 2013. The Company sells products to Nistec and pays management fees to Nistec. | |||||||||||||
The Company's transactions with its related parties were carried out on an arm's-length basis. | |||||||||||||
A. Balances with related parties | |||||||||||||
31-Dec | |||||||||||||
2013 | 2012 | ||||||||||||
Trade accounts receivable | 26 | - | |||||||||||
Trade accounts payable | - | 1,336 | |||||||||||
B. Transactions with related parties | |||||||||||||
Year ended December 31 | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Cost of revenues (*) | 3,402 | 3,287 | 2,674 | ||||||||||
Selling, general and administrative expenses | 52 | - | - | ||||||||||
(*) | The Company's purchases from such supplier accounted for 23.1%, 24.5% and 18.4% of its raw material costs in 2013, 2012 and 2011, respectively. | ||||||||||||
Organization_and_Summary_of_Si1
Organization and Summary of Significant Accounting Policies (Policy) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Organization and Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||||
General | ' | ||||||||||||
General | |||||||||||||
Eltek Ltd. ("the Parent") was organized in Israel in 1970, and the Parent's shares have been publicly traded on the NASDAQ Capital Market since 1997. Eltek Ltd. and its subsidiaries (see below) are collectively referred to as "the Company". | |||||||||||||
The Company manufactures, markets and sells custom made printed circuit boards ("PCBs"), including high density interconnect, flex-rigid and multi-layered boards. The principal markets of the Company are in Israel, Europe and North America. | |||||||||||||
The Company markets its product mainly to the medical technology, defense and aerospace, industrial, telecom and networking equipment, as well as to contract electronic manufacturers, among other industries, and its business is subject to numerous risks. The major risks include, but are not limited to, (1) the impact of currency exchange rates (mainly NIS/US$), (2) the Company's success in implementing its sales and manufacturing plans, (3) the impact of competition from other companies, (4) the Company's ability to receive regulatory clearance or approval to market its products or changes in regulatory environment, (5) domestic and global economic conditions and industry conditions, and (6) compliance with environmental laws and regulations. Further, the Company's liquidity position, as well as its operating performance, may be negatively affected by other financial business factors, many of which are beyond its control. | |||||||||||||
On August 19, 2013, the Parent entered into an agreement to issue and sell 3,532,655 ordinary shares of the Parent, nominal value NIS 0.6 each, to Nistec Ltd. ("Nistec"), a private company organized under the laws of the State of Israel, for $4.2 million. Nistec is controlled by Yitzhak Nissan, who owns all of the shares of Nistec. Also on August 19, 2013, Nistec purchased 1,589,440 of the Parent's ordinary shares from Merhav M.N.F. Ltd. , a company owned by Mr. Yosef Maiman, which at the time held 24.1% of the Parent's outstanding ordinary shares. The total consideration paid by Nistec in the two transactions was $6.5 million, $2.3 directly to Merhav M.N.F Ltd. and $4.2 million to the Parent. Nistec financed a portion of those funds from a loan extended by Bank Leumi Le'Israel, and the shares that Nistec acquired constitute collateral for the loan. | |||||||||||||
As a result of these transactions, which closed on November 1, 2013, Nistec acquired 50.5% of the Parent's ordinary shares, which constitute 50.5% of the Parent's issued share capital on a fully diluted basis, and Nistec gained control of the Parent. | |||||||||||||
Kubatronik Leiterplatten GmbH | |||||||||||||
In June 2002, the Parent established a wholly-owned subsidiary, EN-Eltek Netherlands 2002 B.V. ("EN-Eltek"), for the purpose of the acquisition of Kubatronik Leiterplatten GmbH ("Kubatronik"). | |||||||||||||
On June 10, 2002, the Parent acquired 76% of the shares of Kubatronik for ˆ 2.6 million ($2.4 million as of the date of acquisition). The acquisition resulted in the recognition of goodwill in the amount of ˆ1.1 million ($1 million as of the date of acquisition) - see Note 5. | |||||||||||||
The Parent subsequently incurred a goodwill impairment of approximately $1 million and the goodwill balance as of December 31, 2013and 2012 was $75 and $69, respectively. | |||||||||||||
Pursuant to the acquisition agreement, the seller has until December 31, 2014, (at which time the period is automatically extended for additional consecutive two-year periods unless otherwise notified in writing by either party upon at least six months prior notice) the right to require the Parent to purchase ("Put Option"), and the Parent has the right to require the seller to sell to the Parent ("Call Option") the seller's remaining 24% interest in Kubatronik. In May 2012, the seller exercised his option with respect to 3% of his remaining shares of Kubatronik for approximately Euro 69 ($89) for such shares and reduced his share in Kubatronik from 24% to 21%. The exercise price for the seller's 21% interest in Kubatronik under the Put Option is Euro 483 ($665), and the exercise price for the seller's remaining holdings in Kubatronik under the Call Option is Euro 513 ($706). The fair value of the above options is calculated based on the Binomial model. Changes in fair value are recorded in the Consolidated Statement of Comprehensive income. See Note 15. | |||||||||||||
Eltek USA Inc. | |||||||||||||
In 2007, the Parent established a wholly-owned subsidiary, Eltek USA Inc. for the purpose of sales, promotion and marketing in the North American market. Eltek USA Inc. commenced operations in 2008. | |||||||||||||
Eltek Europe GmbH | |||||||||||||
In 2008, the Parent established a wholly-owned subsidiary, Eltek Europe GmbH for the purpose of sales, promotion and marketing to certain customers in Europe. Eltek Europe GmbH commenced operations in 2009. | |||||||||||||
Basis of presentation | ' | ||||||||||||
Basis of presentation | |||||||||||||
The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). | |||||||||||||
The consolidated financial statements include the accounts of the Parent and its subsidiaries. | |||||||||||||
The Parent sells goods through its subsidiaries that function as distributors. | |||||||||||||
All intercompany transactions and balances were eliminated in consolidation. | |||||||||||||
Functional and reporting currency | ' | ||||||||||||
Functional and reporting currency | |||||||||||||
The Parent's functional currency is the New Israeli Shekel ("NIS"). Transactions denominated in foreign currencies are translated into NIS using the prevailing exchange rates at the date of the transactions. Gains and losses from the translation of foreign currency transactions are recorded in financial income or expenses. | |||||||||||||
The Company's reporting currency is the U.S. dollar. Assets and liabilities are translated to the reporting currency using the exchange rate at the end of the year. Revenues and expenses are translated to the reporting currency using the average exchange rate for each quarter. Translation adjustments are reported separately as a component of accumulated other comprehensive income. | |||||||||||||
Translation of foreign entity operations | ' | ||||||||||||
Translation of foreign entity operations | |||||||||||||
The financial statements of foreign subsidiaries are translated into the Parent's functional currency as follows: | |||||||||||||
1 | Assets and liabilities are translated according to the exchange rate on the consolidated balance sheet date including goodwill arising from the acquisition of the subsidiary. | ||||||||||||
2 | Income and expense items are translated according to the weighted average exchange rate on a quarterly basis. | ||||||||||||
3 | The resulting exchange rate differences are classified as a separate item in shareholders' equity. | ||||||||||||
Exchange rates and linkage bases | ' | ||||||||||||
Exchange rates and linkage bases | |||||||||||||
1 | Balances linked to the Israeli Consumer Price Index ("CPI") are recorded pursuant to contractual linkage terms of the specific assets and liabilities. | ||||||||||||
2 | Details of the CPI and the representative exchange rates are as follows: | ||||||||||||
Israeli | Exchange rate | Exchange rate | |||||||||||
CPI | of one US dollar | of one Euro | |||||||||||
Points | NIS | NIS | |||||||||||
For the year ended: | |||||||||||||
31-Dec-13 | 220.2 | 3.471 | 4.7819 | ||||||||||
31-Dec-12 | 219.8 | 3.733 | 4.9206 | ||||||||||
31-Dec-11 | 216.26 | 3.821 | 4.938 | ||||||||||
% | % | % | |||||||||||
Changes during the year ended: | |||||||||||||
31-Dec-13 | 1.8 | (7.02 | ) | (2.82 | ) | ||||||||
31-Dec-12 | 1.6 | (2.30 | ) | (0.35 | ) | ||||||||
31-Dec-11 | 2.2 | 7.66 | 4.22 | ||||||||||
Use of estimates | ' | ||||||||||||
Use of estimates | |||||||||||||
The preparation of the consolidated financial statements in accordance with U.S. GAAP requires the management of the Company to make estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from these estimates. Significant items subject to such estimates and assumptions include the useful lives of fixed assets, allowance for doubtful accounts, valuation of derivatives, deferred tax assets, inventory, goodwill, put/call options, income tax uncertainties and other contingencies. | |||||||||||||
Cash and cash equivalents | ' | ||||||||||||
Cash and cash equivalents | |||||||||||||
Cash and cash equivalents are highly-liquid investments which include short-term bank deposits with an original maturity of three months or less from deposit date and which are not restricted by a lien. | |||||||||||||
Trade accounts receivable | ' | ||||||||||||
Trade accounts receivable | |||||||||||||
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. | |||||||||||||
The allowance for doubtful accounts receivable is calculated on the basis of specific identification of customer balances. The allowance is determined based on management's estimate of the aged receivable balance considered uncollectible, based on historical experience, aging of the receivable and information available about specific customers, including their financial condition and volume of their operations. | |||||||||||||
The activity in the allowance for doubtful accounts for the three years ended December 31, 2013 is as follows: | |||||||||||||
Year ended December 31 | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
$ thousands | |||||||||||||
Opening balance | 95 | 93 | 340 | ||||||||||
Additions during the year | - | 1 | 14 | ||||||||||
Write off of allowance | (9 | ) | - | (263 | ) | ||||||||
Foreign currency translation adjustments | (4 | ) | 1 | 2 | |||||||||
Closing balance | 82 | 95 | 93 | ||||||||||
Inventories | ' | ||||||||||||
Inventories | |||||||||||||
Inventories are recorded at the lower of cost or market value. Cost is determined on the weighted average basis for raw materials. For work in progress and finished goods, the cost is determined pursuant to calculation of accumulated actual direct and indirect costs. | |||||||||||||
Assets held for employees' severance payments | ' | ||||||||||||
Assets held for employees' severance payments | |||||||||||||
Assets held for employees' severance payments represent contributions to insurance policies and deposits to a central severance pay fund, and are recorded at their current redemption value. | |||||||||||||
Fixed assets | ' | ||||||||||||
Fixed assets | |||||||||||||
Fixed assets are stated at cost. Depreciation is computed by the straight-line method over the estimated useful lives of the assets at the following annual rates: | |||||||||||||
% | |||||||||||||
Machinery and equipment | May-33 | ||||||||||||
Leasehold improvements | 14-Jun | ||||||||||||
Motor vehicles | 15 | ||||||||||||
Office furniture and equipment | Jun-33 | ||||||||||||
Machinery and equipment purchased under capital lease arrangements are recorded at the present value of the minimum lease payments at lease inception. Such assets and leasehold improvements are depreciated and amortized respectively, using the straight-line method over the shorter of the lease term or estimated useful life of the asset. | |||||||||||||
Long-lived assets, such as property, plant, and equipment 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 asset group 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, 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. | |||||||||||||
Goodwill | ' | ||||||||||||
Goodwill | |||||||||||||
Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Goodwill is reviewed for impairment at least annually. In September 2011, the FASB issued ASU 2011-08, Testing Goodwill for Impairment, which provides an entity the option to perform a qualitative assessment to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount prior to performing the two-step goodwill impairment test. If this is the case, the two-step goodwill impairment test is required. If it is more-likely-than-not that the fair value of a reporting unit is greater than its carrying amount, the two-step goodwill impairment test is not required. The Company adopted this guidance in 2011. | |||||||||||||
If the two-step goodwill impairment test is required, first, the fair value of the reporting unit is compared with its carrying amount (including goodwill). If the fair value of the reporting unit is less than its carrying amount, an indication of goodwill impairment exists for the reporting unit and the entity must perform step two of the impairment test (measurement). Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit's goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation and the residual fair value after this allocation is the implied fair value of the reporting unit goodwill. Fair value of the reporting unit is determined using a discounted cash flow analysis. If the fair value of the reporting unit exceeds its carrying amount, step two does not need to be performed. | |||||||||||||
The Company performs its annual impairment review of goodwill at the beginning of the following year, and when a triggering event occurs between annual impairment tests. The Company recorded an impairment loss of $481 in 2012. See note 5. For 2013, the Company performed a qualitative assessment of goodwill and determined that it is not more likely than not that the fair values of its reporting units are less than the carrying amounts. Accordingly, no impairment loss was recorded in 2013. See Note 5. | |||||||||||||
Income taxes | ' | ||||||||||||
Income taxes | |||||||||||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. 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 income 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. | |||||||||||||
Revenue recognition | ' | ||||||||||||
Revenue recognition | |||||||||||||
The Company recognizes revenue upon shipment of the product and after the customer takes ownership and assumes risk of loss, collection of the corresponding receivable is probable, persuasive evidence of an arrangement exists, and the sales price is fixed or determinable. Commission income is accounted for on the accrual basis. | |||||||||||||
Earnings per ordinary share | ' | ||||||||||||
Earnings per ordinary share | |||||||||||||
Diluted earnings per ordinary share calculation is similar to basic earnings per share except that the weighted average of ordinary shares outstanding is increased to include the number of additional ordinary shares that would have been outstanding if the outstanding options had been exercised, to the extent that these options had a diluted effect. The Company does not presently have such dilutive instruments. | |||||||||||||
Derivative financial instruments | ' | ||||||||||||
Derivative financial instruments | |||||||||||||
The Company utilizes derivative financial instruments principally to manage market risks and reduce its exposure resulting from fluctuations in foreign currency exchange rates. The Company holds put/call options with the minority shareholder of Kubatronik for the purchase/sale of the minority holding in Kubatronik (see Note 15). Derivatives and the put/call options are adjusted to fair value through income. | |||||||||||||
Changes in fair value are recognized in the consolidated statements of comprehensive income as a financing item. | |||||||||||||
The fair value of derivative financial instruments is determined on the basis of their market values or the quotations of financial institutions. In the absence of a market value or financial institution quotation the fair value is determined on the basis of a valuation model. | |||||||||||||
Concentration of credit risk | ' | ||||||||||||
Concentration of credit risk | |||||||||||||
Financial instruments that may subject the Company to significant concentrations of credit risk consist principally of cash and trade accounts receivable. Cash is deposited with major financial institutions in Israel, Europe and the United States. | |||||||||||||
The Company performs ongoing credit evaluations of the financial condition of its customers. The risk of collection associated with trade receivables is reduced by the large number and geographical dispersion of the Company's customer base, and the Company's policy of obtaining credit evaluations of the financial condition of certain customers, requiring collateral or security with respect to certain receivables, or purchase of insurance for certain other receivables. | |||||||||||||
Commitments and contingencies | ' | ||||||||||||
Commitments and 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. | |||||||||||||
Fair value measurements | ' | ||||||||||||
Fair value measurements | |||||||||||||
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 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. | ||||||||||||
See Note 15. | |||||||||||||
Recently issued accounting standards | ' | ||||||||||||
Recently issued accounting standards | |||||||||||||
In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU 2013-11 requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. ASU 2013-11 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The new standard is to be applied prospectively but retrospective application is permitted. The Company does not expect the provisions of this ASU to have a material effect on the financial statements. | |||||||||||||
Organization_and_Summary_of_Si2
Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Organization and Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||||
Exchange Rates And Linkage Bases | ' | ||||||||||||
Details of the CPI and the representative exchange rates are as follows: | |||||||||||||
Israeli | Exchange rate | Exchange rate | |||||||||||
CPI | of one US dollar | of one Euro | |||||||||||
Points | NIS | NIS | |||||||||||
For the year ended: | |||||||||||||
31-Dec-13 | 220.2 | 3.471 | 4.7819 | ||||||||||
31-Dec-12 | 219.8 | 3.733 | 4.9206 | ||||||||||
31-Dec-11 | 216.26 | 3.821 | 4.938 | ||||||||||
% | % | % | |||||||||||
Changes during the year ended: | |||||||||||||
31-Dec-13 | 1.8 | (7.02 | ) | (2.82 | ) | ||||||||
31-Dec-12 | 1.6 | (2.30 | ) | (0.35 | ) | ||||||||
31-Dec-11 | 2.2 | 7.66 | 4.22 | ||||||||||
Activity In The Allowance For Doubtful Accounts | ' | ||||||||||||
The activity in the allowance for doubtful accounts for the three years ended December 31, 2013 is as follows: | |||||||||||||
Year ended December 31 | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
$ thousands | |||||||||||||
Opening balance | 95 | 93 | 340 | ||||||||||
Additions during the year | - | 1 | 14 | ||||||||||
Write off of allowance | (9 | ) | - | (263 | ) | ||||||||
Foreign currency translation adjustments | (4 | ) | 1 | 2 | |||||||||
Closing balance | 82 | 95 | 93 | ||||||||||
Fixed Assets Depreciation Rates | ' | ||||||||||||
Depreciation is computed by the straight-line method over the estimated useful lives of the assets at the following annual rates: | |||||||||||||
% | |||||||||||||
Machinery and equipment | May-33 | ||||||||||||
Leasehold improvements | 14-Jun | ||||||||||||
Motor vehicles | 15 | ||||||||||||
Office furniture and equipment | Jun-33 |
Cash_and_Cash_Equivalents_Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Cash and Cash Equivalents [Abstract] | ' | ||||||||
Schedule Of Cash and Cash Equivalents | ' | ||||||||
31-Dec | |||||||||
2013 | 2012 | ||||||||
Denominated in U.S. dollars | 886 | 431 | |||||||
Denominated in NIS | 1,304 | 872 | |||||||
Denominated in Euro | 324 | 632 | |||||||
2,514 | 1,935 |
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventories [Abstract] | ' | ||||||||
Schedule Of Inventories | ' | ||||||||
31-Dec | |||||||||
2013 | 2012 | ||||||||
Raw materials | 2,168 | 2,078 | |||||||
Work-in-process | 2,616 | 2,270 | |||||||
Finished products | 1,325 | 896 | |||||||
6,109 | 5,244 | ||||||||
Fixed_Assets_Net_Tables
Fixed Assets, Net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Fixed Assets, Net [Abstract] | ' | ||||||||
Schedule Of Net Fixed Assets | ' | ||||||||
31-Dec | |||||||||
2013 | 2012 | ||||||||
Machinery and equipment | 40,347 | 36,424 | |||||||
Leasehold improvements | 9,321 | 8,558 | |||||||
Motor vehicles | 114 | 102 | |||||||
Office furniture and equipment | 1,653 | 1,530 | |||||||
Fixed assets | 51,435 | 46,614 | |||||||
Accumulated depreciation | (41,327 | ) | (37,539 | ) | |||||
Fixed assets less accumulated depreciation | 10,108 | 9,075 |
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Goodwill [Abstract] | ' | ||||||||
Schedule Of Goodwill | ' | ||||||||
Changes in the carrying amount of goodwill for the years ended December 31, 2013 and 2012 are as follows: | |||||||||
31-Dec | |||||||||
2013 | 2012 | ||||||||
Balance at the beginning of the year | 69 | 518 | |||||||
Increase due to increase in holding | - | 20 | |||||||
Impairment on goodwill | - | (481 | ) | ||||||
Effect of translation adjustments | 6 | 12 | |||||||
75 | 69 |
Shortterm_Credit_and_Current_M1
Short-term Credit and Current Maturities of Long-term Debt (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Short-term Credit and Current Maturities of Long-term Debt[Abstract] | ' | ||||||||||||
Schedule Of Short-Term Credit And Current Maturities Of Long-Term Debt | ' | ||||||||||||
Banks | |||||||||||||
Annual | |||||||||||||
interest rate at | |||||||||||||
31-Dec | 31-Dec | ||||||||||||
2013 | 2013 | 2012 | |||||||||||
% | |||||||||||||
In NIS (linked to the Prime rate) | 5.75 - 6.75 | 1,469 | 3,774 | ||||||||||
In U.S. dollars | 3.81 - 4.41 | 110 | 110 | ||||||||||
Current maturities of long-term | |||||||||||||
debt from banks (Note 8) | 239 | 1,221 | |||||||||||
1,818 | 5,105 |
Other_Current_Liabilities_Tabl
Other Current Liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Other Current Liabilities [Abstract] | ' | ||||||||
Schedule Of Other Current Liabilities | ' | ||||||||
31-Dec | |||||||||
2013 | 2012 | ||||||||
Accrued payroll and related benefits | 1,134 | 1,177 | |||||||
Provision for vacation and other employee benefits | 1,973 | 1,642 | |||||||
Net written put option (Note 1A) | 554 | 497 | |||||||
Accrued expenses | 812 | 859 | |||||||
Employees' severance benefits (Note 9D) | 115 | - | |||||||
Provision for contingent liabilities (Note 10D) | 202 | - | |||||||
Other liabilities | 521 | 244 | |||||||
5,311 | 4,419 |
Recovered_Sheet1
Long-term Debt, Excluding Current Maturities (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Long-term Debt, Excluding Current Maturities [Abstract] | ' | ||||||||||||
Schedule Of Long-Term Debt | ' | ||||||||||||
Banks and others | |||||||||||||
Annual | |||||||||||||
interest rate at | |||||||||||||
31-Dec | 31-Dec | ||||||||||||
2013 | 2013 | 2012 | |||||||||||
% | |||||||||||||
Linkage terms | |||||||||||||
U.S. dollar | 5.89 - 8.56 | 615 | 1,133 | ||||||||||
NIS - not linked | 6 | 225 | - | ||||||||||
Euro | 2.17 - 3.86 | 454 | 95 | ||||||||||
NIS - linked to the Prime rate | P+0.9 | 68 | 980 | ||||||||||
U.S. dollar linked to Libor | 4-4.5 | 720 | - | ||||||||||
2,082 | 2,208 | ||||||||||||
Less - current maturities (banks and others) | (670 | ) | (1,480 | ) | |||||||||
1,412 | 728 | ||||||||||||
Schedule Of Maturities Of Long-Term Debt | ' | ||||||||||||
Minimum future payments at December 31, 2013 due under the long-term debt is as follows: | |||||||||||||
Long-term | |||||||||||||
Loan | |||||||||||||
First year | 670 | ||||||||||||
Second year | 545 | ||||||||||||
Third year and thereafter | 867 | ||||||||||||
2,082 |
Commitments_and_Contingent_Lia1
Commitments and Contingent Liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Commitments and Contingent Liabilities [Abstract] | ' | ||||||||
Schedule Of Minimum Future Payments Due Under Operating Leases | ' | ||||||||
Minimum future payments at December 31, 2013 due under the above agreements over the next five years and thereafter are as follows: | |||||||||
Premises | Other | ||||||||
leases | agreements | ||||||||
First year | 1,152 | 663 | |||||||
Second year | 1,099 | 424 | |||||||
Third year | 1,046 | 277 | |||||||
Fourth year | 288 | 115 | |||||||
Fifth year and thereafter | 187 | - | |||||||
3,772 | 1,479 |
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Shareholders' Equity [Abstract] | ' | ||||||||||||
Authorized, Issued And Outstanding Share Capital | ' | ||||||||||||
Authorized, issued and outstanding share capital in historical terms is as follows: | |||||||||||||
Authorized | Issued and outstanding | ||||||||||||
31-Dec | 31-Dec | 31-Dec | |||||||||||
2012 and 2013 | 2013 | 2012 | |||||||||||
Number of shares: | |||||||||||||
Ordinary shares of par value NIS 0.6 each | 50,000,000 | 10,142,762 | 6,610,107 | ||||||||||
Amount in US$ | |||||||||||||
Ordinary shares of par value NIS 0.6 each | 1,985,280 | 1,384,318 | |||||||||||
Revenues_Tables
Revenues (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Revenues [Abstract] | ' | ||||||||||||
Customers Who Accounted For Over 10% Of The Total Consolidated Revenues | ' | ||||||||||||
Customers who accounted for over 10% of the total consolidated revenues: | |||||||||||||
Year ended December 31 | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Customer A - Sales of | |||||||||||||
manufactured products | 18.4 | % | 17.2 | % | 14.9 | % | |||||||
Revenues By Geographic Areas | ' | ||||||||||||
Revenues by geographic areas | |||||||||||||
Year ended December 31 | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Israel | 27,992 | 21,965 | 22,866 | ||||||||||
Europe | 10,623 | 11,583 | 13,400 | ||||||||||
North America | 6,227 | 7,664 | 5,400 | ||||||||||
Rest of the world | 5,393 | 4,434 | 5,164 | ||||||||||
50,235 | 45,646 | 46,830 | |||||||||||
Assets By Geographic Areas | ' | ||||||||||||
Fixed assets, net by geographic areas | |||||||||||||
Year ended December 31 | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Israel | 9,534 | 8,617 | 7,233 | ||||||||||
Europe | 561 | 445 | 503 | ||||||||||
North America | 13 | 13 | 10 | ||||||||||
10,108 | 9,075 | 7,746 |
Financial_Expenses_Net_Tables
Financial Expenses, Net (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Financial Expenses, Net [Abstract] | ' | ||||||||||||
Schedule Of Financial Expenses, Net | ' | ||||||||||||
Year ended December 31 | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Interest and exchange rate expenses on | |||||||||||||
long-term loans | 106 | 126 | 166 | ||||||||||
Expenses on short-term credit and bank | |||||||||||||
charges | 284 | 281 | 464 | ||||||||||
Effect of exchange rate differences on other | |||||||||||||
expenses and net loss from derivative | |||||||||||||
instruments | 19 | 137 | 110 | ||||||||||
Other financing expenses (income), net | 30 | (1 | ) | - | |||||||||
439 | 543 | 740 |
Taxes_on_Income_Tables
Taxes on Income (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Taxes on Income [Abstract] | ' | ||||||||||||
Profit (Loss) Before Income Tax Expense Included In The Statement Of Operations | ' | ||||||||||||
Profit before tax and income tax expense (benefit) included in the consolidated statements of comprehensive income | |||||||||||||
Year ended | Year ended | Year ended | |||||||||||
31-Dec | 31-Dec | 31-Dec | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Profit before income tax expense: | |||||||||||||
Israel | 782 | 495 | 1,867 | ||||||||||
Foreign jurisdictions | 24 | 253 | (21 | ) | |||||||||
806 | 748 | 1,846 | |||||||||||
Current tax expense (benefit): | |||||||||||||
Israel | (41 | ) | - | - | |||||||||
Foreign jurisdictions | 78 | 52 | 31 | ||||||||||
37 | 52 | 31 | |||||||||||
Deferred taxes: | |||||||||||||
Israel | (3,079 | ) | - | - | |||||||||
Foreign jurisdictions | 67 | - | - | ||||||||||
(3,012 | ) | - | - | ||||||||||
Income tax expense (benefit) | (2,975 | ) | 52 | 31 | |||||||||
Reconciliation Of The Theoretical Income Tax Expense To The Actual Income Tax Expense | ' | ||||||||||||
A reconciliation of the theoretical income tax expense (benefit), assuming all income is taxable at the statutory rates applicable in Israel, and the actual income tax expense, is as follows: | |||||||||||||
Year ended | Year ended | Year ended | |||||||||||
31-Dec | 31-Dec | 31-Dec | |||||||||||
2013 | 2012 | 2011 | |||||||||||
Profit before income tax expense (benefit) as | |||||||||||||
reported in the consolidated | |||||||||||||
statements of comprehensive income | 806 | 748 | 1,846 | ||||||||||
Statutory tax rates | 25 | % | 25 | % | 24 | % | |||||||
Theoretical tax expense calculated | 202 | 187 | 443 | ||||||||||
Other | (118 | ) | 15 | 14 | |||||||||
Changed in liability for undistributed income of subsidiaries | 132 | - | - | ||||||||||
Change in valuation allowance | (2,540 | ) | 1,095 | (492 | ) | ||||||||
Loss on investment in subsidiaries | - | (1,098 | ) | - | |||||||||
Adjustment to net loss carryforward | 142 | ||||||||||||
Change in effective corporate tax | |||||||||||||
rates | (757 | ) | - | 287 | |||||||||
Tax benefit arising from | |||||||||||||
"Beneficiating and Preferred | |||||||||||||
enterprises" (*) | (70 | ) | (146 | ) | (229 | ) | |||||||
Foreign tax rate differential in | |||||||||||||
subsidiaries | 34 | (1 | ) | 8 | |||||||||
Total | (3,177 | ) | (135 | ) | (412 | ) | |||||||
Income tax expense (benefit) | (2,975 | ) | 52 | 31 | |||||||||
(*) Net earnings per share - amounts of the benefit resulting from the Approved and Preferred Enterprises: 2013- $0.01, 2012- $0.02, 2011- $0.03 | |||||||||||||
Deferred Tax Assets And Liabilities | ' | ||||||||||||
Significant components of the Company's deferred tax liabilities and assets are as follows: | |||||||||||||
31-Dec | 31-Dec | ||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Net operating loss carryforwards (in Israel) | 2,543 | 1,865 | |||||||||||
Net operating loss carryforwards (outside Israel) | 343 | 485 | |||||||||||
Capital loss carryforwards (in Israel) | 1,252 | 1,098 | |||||||||||
Severance benefits | 32 | 8 | |||||||||||
Provision for vacation pay | 280 | 174 | |||||||||||
Tax credit carryforward | 952 | 840 | |||||||||||
Allowance for doubtful accounts | 13 | 11 | |||||||||||
Total gross deferred tax assets | 5,415 | 4,481 | |||||||||||
Less valuation allowance | (1,595 | ) | (4,135 | ) | |||||||||
Net deferred tax assets | 3,820 | 346 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Undistributed income of subsidiaries | (134 | ) | - | ||||||||||
Fixed assets - differences in depreciation | (635 | ) | (346 | ) | |||||||||
Total gross deferred tax liabilities | (769 | ) | (346 | ) | |||||||||
Net deferred tax assets | 3,051 | - | |||||||||||
Deferred tax assets, short-term (in other current assets) | 188 | - | |||||||||||
Deferred tax assets, long-term | 2,863 | - | |||||||||||
Financial_Instruments_and_Risk1
Financial Instruments and Risk Management (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Financial Instruments and Risk Management [Abstract] | ' | ||||||||||||||||||||
Assets And Liabilities Measured At Fair Value On A Recurring Basis | ' | ||||||||||||||||||||
The following table presents the Company's assets and liabilities measured at fair value on a recurring basis as of December 31, 2013 and 2012, aggregated by the level in the fair-value hierarchy within which those measurements fall: | |||||||||||||||||||||
Quoted prices | Significant | ||||||||||||||||||||
December 31, | December 31, | in active | other | Significant | |||||||||||||||||
2013 | 2013 | markets for | observable | unobservable | |||||||||||||||||
Carrying | identical assets | inputs | inputs | ||||||||||||||||||
Amount | Fair value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
Liabilities : | |||||||||||||||||||||
Long-term debt | 788 | 704 | - | 704 | - | ||||||||||||||||
Net written put option | 554 | 554 | - | - | 554 | ||||||||||||||||
Total | 1,342 | 1,258 | - | 704 | 554 | ||||||||||||||||
Quoted prices | Significant | ||||||||||||||||||||
December 31, | December 31, | in active | other | Significant | |||||||||||||||||
2012 | 2012 | markets for | observable | unobservable | |||||||||||||||||
Carrying | identical assets | inputs | inputs | ||||||||||||||||||
Amount | Fair value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
Liabilities : | |||||||||||||||||||||
Long-term debt | 1,296 | 1,271 | - | 1,271 | - | ||||||||||||||||
Net written put | |||||||||||||||||||||
option | 497 | 497 | - | - | 497 | ||||||||||||||||
Total | 1,793 | 1,768 | - | 1,271 | 497 |
Related_Party_Balances_and_Tra1
Related Party Balances and Transactions (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Related Party Balances and Transactions [Abstract] | ' | ||||||||||||
Related Party Balances And Transactions | ' | ||||||||||||
A. Balances with related parties | |||||||||||||
31-Dec | |||||||||||||
2013 | 2012 | ||||||||||||
Trade accounts receivable | 26 | - | |||||||||||
Trade accounts payable | - | 1,336 | |||||||||||
B. Transactions with related parties | |||||||||||||
Year ended December 31 | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Cost of revenues (*) | 3,402 | 3,287 | 2,674 | ||||||||||
Selling, general and administrative expenses | 52 | - | - | ||||||||||
(*) | The Company's purchases from such supplier accounted for 23.1%, 24.5% and 18.4% of its raw material costs in 2013, 2012 and 2011, respectively. | ||||||||||||
Organization_and_Summary_of_Si3
Organization and Summary of Significant Accounting Policies (Narrative) (Details) | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Apr. 30, 2012 | Jan. 31, 2012 | Jan. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
USD ($) | USD ($) | USD ($) | Kubatronik [Member] | Kubatronik [Member] | Kubatronik [Member] | Kubatronik [Member] | Kubatronik [Member] | Nistec [Member] | Nistec [Member] | |
USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | Merhav M.N.F. Ltd. [Member] | |||||
USD ($) | ||||||||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition date | ' | ' | ' | ' | ' | ' | 10-Jun-02 | 10-Jun-02 | ' | ' |
Business acquisition, Percentage acquired | ' | ' | ' | ' | ' | ' | 76.00% | 76.00% | 50.50% | 24.10% |
Business acquisition, Consideration transferred | $6,500 | ' | ' | ' | $89 | € 69 | $2,400 | € 2,600 | $4,200 | $2,300 |
Shares issued in consideration of acquisition | ' | ' | ' | ' | ' | ' | ' | ' | 3,532,655 | 1,589,440 |
Purchase price per share | ' | ' | ' | ' | ' | ' | ' | ' | $0.60 | ' |
Increase due to increase in holding | ' | 20 | ' | ' | ' | ' | 1,000 | 1,100 | ' | ' |
Cumulative impairment of goodwill | ' | ' | ' | ' | ' | ' | 1,000 | ' | ' | ' |
Impairment on goodwill | ' | 481 | ' | ' | ' | ' | 481 | ' | ' | ' |
Goodwill | 75 | 69 | 518 | ' | ' | ' | 69 | 89 | ' | ' |
Automatic consecutive extension period for put and call options, years | ' | ' | ' | ' | ' | ' | '2 years | '2 years | ' | ' |
Prior notice cancellation period for put and call options, months | ' | ' | ' | ' | ' | ' | '6 months | '6 months | ' | ' |
Remaining interest of seller, percentage | ' | ' | ' | 24.00% | ' | ' | 21.00% | 21.00% | ' | ' |
Put option aggregate exercise price | ' | ' | ' | ' | ' | ' | 665 | 483 | ' | ' |
Call option aggregate exercise price | ' | ' | ' | ' | ' | ' | $706 | € 513 | ' | ' |
Call option, Exercise notice to sell remaining interest, percentage | ' | ' | ' | ' | 3.00% | 3.00% | ' | ' | ' | ' |
Income tax position measurement and recognition, Likelihood of position being realized, Minimum percentage | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Organization_and_Summary_of_Si4
Organization and Summary of Significant Accounting Policies (Exchange Rates And Linkage Bases) (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Exchange Rate [Line Items] | ' | ' | ' |
Israeli CPI Points | 220.2 | 219.8 | 216.26 |
Israeli CPI Points, Change in period | 1.8 | 1.6 | 2.2 |
US Dollar To NIS [Member] | ' | ' | ' |
Exchange Rate [Line Items] | ' | ' | ' |
Exchange rate | 3.471 | 3.733 | 3.821 |
Exchange rate, Change in period | -7.02% | -2.30% | 7.66% |
Euro To NIS [Member] | ' | ' | ' |
Exchange Rate [Line Items] | ' | ' | ' |
Exchange rate | 4.7819 | 4.9206 | 4.938 |
Exchange rate, Change in period | -2.82% | -0.35% | 4.22% |
Organization_and_Summary_of_Si5
Organization and Summary of Significant Accounting Policies (Activity In The Allowance For Doubtful Accounts) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Organization and Summary of Significant Accounting Policies [Abstract] | ' | ' | ' |
Opening balance | $95 | $93 | $340 |
Additions during the year | ' | 1 | 14 |
Write off of allowance | -9 | ' | -263 |
Foreign currency translation adjustments | -4 | 1 | 2 |
Closing balance | $82 | $95 | $93 |
Organization_and_Summary_of_Si6
Organization and Summary of Significant Accounting Policies (Annual Rates Of Depreciation Of Fixed Assets) (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Motor Vehicles [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Fixed assets depreciation, Annual percentage rate | 15.00% |
Minimum [Member] | Machinery And Equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Fixed assets depreciation, Annual percentage rate | 5.00% |
Minimum [Member] | Leasehold Improvements [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Fixed assets depreciation, Annual percentage rate | 6.00% |
Minimum [Member] | Office Furniture And Equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Fixed assets depreciation, Annual percentage rate | 6.00% |
Maximum [Member] | Machinery And Equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Fixed assets depreciation, Annual percentage rate | 33.00% |
Maximum [Member] | Leasehold Improvements [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Fixed assets depreciation, Annual percentage rate | 14.00% |
Maximum [Member] | Office Furniture And Equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Fixed assets depreciation, Annual percentage rate | 33.00% |
Cash_and_Cash_Equivalents_Deta
Cash and Cash Equivalents (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Cash and Cash Equivalents [Line Items] | ' | ' | ' | ' |
Cash | $2,514 | $1,935 | $892 | $1,513 |
Denominated In USD [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents [Line Items] | ' | ' | ' | ' |
Cash | 886 | 431 | ' | ' |
Denominated In NIS [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents [Line Items] | ' | ' | ' | ' |
Cash | 1,304 | 872 | ' | ' |
Denominated In EUR [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents [Line Items] | ' | ' | ' | ' |
Cash | $324 | $632 | ' | ' |
Inventories_Details
Inventories (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventories [Abstract] | ' | ' |
Raw materials | $2,168 | $2,078 |
Work-in-process | 2,616 | 2,270 |
Finished products | 1,325 | 896 |
Total inventories | $6,109 | $5,244 |
Fixed_Assets_Net_Details
Fixed Assets, 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] | ' | ' | ' |
Fixed assets | $51,435 | $46,614 | ' |
Accumulated depreciation | -41,327 | -37,539 | ' |
Fixed assets less accumulated depreciation | 10,108 | 9,075 | 7,746 |
Depreciation expense | 1,739 | 1,772 | 2,091 |
Machinery And Equipment [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Fixed assets | 40,347 | 36,424 | ' |
Leasehold Improvements [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Fixed assets | 9,321 | 8,558 | ' |
Motor Vehicles [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Fixed assets | 114 | 102 | ' |
Office Furniture And Equipment [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Fixed assets | $1,653 | $1,530 | ' |
Goodwill_Details
Goodwill (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Goodwill [Abstract] | ' | ' | ' |
Balance at the begiinning of the year | $69 | $518 | ' |
Increase due to increase in holding | ' | 20 | ' |
Impairment of goodwill | ' | -481 | ' |
Effect of translation adjustments | 6 | 12 | ' |
Balance at the end of the year | $75 | $69 | $518 |
Shortterm_Credit_and_Current_M2
Short-term Credit and Current Maturities of Long-term Debt (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Short-term Debt [Line Items] | ' | ' |
Short-term credit and current maturities of long-term debt | $1,818 | $5,105 |
NIS - linked to the Prime rate [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Short-term credit and current maturities of long-term debt | 1,469 | 3,774 |
Annual interest rate, minimum | 5.75% | ' |
Annual interest rate, maximum | 6.75% | ' |
In U.S. Dollars [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Short-term credit and current maturities of long-term debt | 110 | 110 |
Annual interest rate, minimum | 3.81% | ' |
Annual interest rate, maximum | 4.41% | ' |
Current Maturities Of Long-Term Debt From Banks [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Short-term credit and current maturities of long-term debt | $239 | $1,221 |
Other_Current_Liabilities_Deta
Other Current Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Other Current Liabilities [Abstract] | ' | ' |
Accrued payroll and related benefits | $1,134 | $1,177 |
Provision for vacation and other employee benefits | 1,973 | 1,642 |
Net written put option (Note 1A) | 554 | 497 |
Accrued expenses | 812 | 859 |
Employees' severance benefits (Note 9D) | 115 | ' |
Provision for contingent liabilities (Note 10D) | 202 | ' |
Other liabilities | 521 | 244 |
Other Current Liabilities | $5,311 | $4,419 |
LongTerm_Debt_Excluding_Curren1
Long-Term Debt, Excluding Current Maturities (Narrative) (Details) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | USD ($) | USD ($) | Creditor Bank One [Member] | Creditor Bank Two [Member] | Creditor Bank Two [Member] |
USD ($) | USD ($) | ILS | |||
Capital leases | $892 | $650 | ' | ' | ' |
Minimum shareholder's equity to be maintained under debt covenants | ' | ' | $4,500 | $2,600 | 10,000 |
Ratio of shareholders' equity to total assets required to be maintained under debt covenants | ' | ' | 17.00% | 11.00% | 11.00% |
Debt service ratio required to be maintained under debt covenants | ' | ' | 1.5 | ' | ' |
Recovered_Sheet2
Long-term Debt, Excluding Current Maturities (Schedule Of Long-Term Debt) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | $2,082 | $2,208 |
Less - current maturities | -670 | -1,480 |
Long-term debt, excluding current maturities | 1,412 | 728 |
U.S. Dollar [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | 615 | 1,133 |
Annual interest rate, minimum | 5.89% | ' |
Annual interest rate, maximum | 8.56% | ' |
NIS - Not Linked [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | 225 | ' |
Annual interest rate, minimum | 6.00% | ' |
Annual interest rate, maximum | 6.00% | ' |
Euro [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | 454 | 95 |
Annual interest rate, minimum | 2.17% | ' |
Annual interest rate, maximum | 3.86% | ' |
NIS - linked to the Prime rate [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | 68 | 980 |
Annual interest rate, minimum | 5.75% | ' |
Annual interest rate, maximum | 6.75% | ' |
Annual interest rate above prime, minimum | 0.90% | ' |
Annual interest rate above prime, maximum | 0.90% | ' |
US Dollar Linked To Libor [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | $720 | ' |
Annual interest rate, minimum | 4.00% | ' |
Annual interest rate, maximum | 4.50% | ' |
LongTerm_Debt_Excluding_Curren2
Long-Term Debt, Excluding Current Maturities (Maturities Of Long-Term Debt) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Long-term Debt, Excluding Current Maturities [Abstract] | ' | ' |
First year | $670 | $1,480 |
Second year | 545 | ' |
Third year and thereafter | 867 | ' |
Total long-term debt | $2,082 | $2,208 |
Employee_Severance_Benefits_De
Employee Severance Benefits (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employee Severance Benefits [Abstract] | ' | ' | ' |
Minimum employment period for severance benefit eligibility, years | '1 year | ' | ' |
Percentage of liability for severance obligations deposited with pension fund | 72.00% | ' | ' |
Unfunded liability for employee severance payments, period expense | $231 | $57 | $102 |
Total Liability for Employees? severance benefits | 452 | ' | ' |
Employees? severance benefits current | $115 | ' | ' |
Commitments_and_Contingent_Lia2
Commitments and Contingent Liabilities (Narrative) (Details) | 0 Months Ended | 12 Months Ended | ||||||
In Thousands, unless otherwise specified | 4-May-11 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
USD ($) | ILS | USD ($) | USD ($) | Other Employees [Member] | Meitav [Member] | Meitav [Member] | ||
USD ($) | USD ($) | ILS | ||||||
Number of premises operating leases | ' | 2 | 2 | ' | ' | ' | ' | ' |
Term of leases of motor vehicles | ' | '3 years | '3 years | ' | ' | ' | ' | ' |
Operating leases expense | ' | $1,471 | ' | $1,183 | $1,519 | ' | ' | ' |
Indemnification agreement limit | ' | 2,000 | ' | ' | ' | ' | ' | ' |
Indemnification agreement limit as a percentage of shareholders' equity | ' | 25.00% | 25.00% | ' | ' | ' | ' | ' |
Period following settlement during which Public Council may not take action against Parent | '1 year | ' | ' | ' | ' | ' | ' | ' |
Payment of settlement | ' | 22 | 75 | ' | ' | ' | 273 | 962 |
Potential amount of settlement | ' | ' | ' | ' | ' | ' | 142 | 500 |
Number of lawsuits | ' | 2 | 2 | ' | ' | ' | ' | ' |
Number of current employees filing lawsuits | ' | 2 | 2 | ' | ' | 5 | ' | ' |
Financial compensation sought for past damages plus additional amounts for future lost income and pain and suffering | ' | $180 | ' | ' | ' | $170 | ' | ' |
Commitments_and_Contingent_Lia3
Commitments and Contingent Liabilities (Schedule Of Minimum Future Payments Due Under Operating Leases) (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Premises Leases [Member] | ' |
First year | $1,152 |
Second year | 1,099 |
Third year | 1,046 |
Fourth year | 288 |
Fifth year and thereafter | 187 |
Total minimum future payments | 3,772 |
Other Agreements [Member] | ' |
First year | 663 |
Second year | 424 |
Third year | 277 |
Fourth year | 115 |
Fifth year and thereafter | ' |
Total minimum future payments | $1,479 |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Shareholders' Equity [Abstract] | ' | ' |
Ordinary shares, par value | $0.60 | $0.60 |
Number of shares, Authorized | 50,000,000 | 50,000,000 |
Number of shares, Issued | 10,142,762 | 6,610,107 |
Number of shares, Outstanding | 10,142,762 | 6,610,107 |
Ordinary shares, Amount | $1,985,280 | $1,384,318 |
Revenues_Customers_Who_Account
Revenues (Customers Who Accounted For Over 10% Of The Total Consolidated Revenues) (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Revenues [Abstract] | ' | ' | ' |
Customer A - Sales of manufactured products | 18.40% | 17.20% | 14.90% |
Revenues_Revenues_By_Geographi
Revenues (Revenues By Geographic Areas) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues | $50,235 | $45,646 | $46,830 |
Israel [Member] | ' | ' | ' |
Revenues | 27,992 | 21,965 | 22,866 |
Europe [Member] | ' | ' | ' |
Revenues | 10,623 | 11,583 | 13,400 |
North America [Member] | ' | ' | ' |
Revenues | 6,227 | 7,664 | 5,400 |
Rest Of The World [Member] | ' | ' | ' |
Revenues | $5,393 | $4,434 | $5,164 |
Revenues_Assets_By_Geographic_
Revenues (Assets By Geographic Areas) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Fixed assets, net | $10,108 | $9,075 | $7,746 |
Israel [Member] | ' | ' | ' |
Fixed assets, net | 9,534 | 8,617 | 7,233 |
Europe [Member] | ' | ' | ' |
Fixed assets, net | 561 | 445 | 503 |
North America [Member] | ' | ' | ' |
Fixed assets, net | $13 | $13 | $10 |
Financial_Expenses_Net_Details
Financial Expenses, Net (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Financial Expenses, Net [Abstract] | ' | ' | ' |
Interest and exchange rate expenses on long-term loans | $106 | $126 | $166 |
Expenses on short-term credit and bank charges | 284 | 281 | 464 |
Effect of exchange rate differences on other expenses and net loss from derivative instruments | 19 | 137 | 110 |
Other financing expenses (income), net | 30 | -1 | ' |
Financial expenses, net | $439 | $543 | $740 |
Taxes_on_Income_Narrative_Deta
Taxes on Income (Narrative) (Details) | 12 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
USD ($) | USD ($) | USD ($) | Kubatronik [Member] | Kubatronik [Member] | Kubatronik [Member] | Kubatronik [Member] | Zone B [Member] | Zone C [Member] | Minimum [Member] | Maximum [Member] | |
USD ($) | EUR (€) | Municipal [Member] | Municipal [Member] | ||||||||
USD ($) | EUR (€) | ||||||||||
Limited corporate tax rate | 11.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax exemption period on undistributed income, years | ' | ' | ' | ' | ' | ' | ' | '6 years | '2 years | ' | ' |
Maximum beneficial tax rate for qualified foreign companies | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Withholding tax on dividends and distributions out of income | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum period for which tax is applicable | '12 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum percentage of share capital owned of foreign investor companies by non-residents | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduced corporate tax rate if foreign investment ownership threshold is reached or exceeded | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | 20.00% |
Preferred company, minimum percentage of annual revenue from export | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduced corporate tax rate in current and next fiscal year | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduced corporate tax rate in current and next fiscal year if located in certain development zone | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduced corporate tax rate in fiscal years two and three after current year | 12.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduced corporate tax rate in fiscal years two and three after current year if located in certain development zone | 7.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduced corporate tax rate in fiscal years four and thereafter after current year | 12.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduced corporate tax rate in fiscal years four and thereafter after current year if located in certain development zone | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Withholding tax on dividends distributed out of income for Preferred Enterprises | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Statutory company tax rate in next fiscal year | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax loss carryforwards | $15,900 | ' | ' | $1,200 | € 840 | $1,100 | € 775 | ' | ' | ' | ' |
Capital losses | 4,400 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Valuation allowance for deferred tax assets | 1,595 | 4,135 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net change in deferred tax asset valuation allowance | 2,540 | -1,095 | 492 | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred tax assets utilized | ' | 1,100 | 2,700 | ' | ' | ' | ' | ' | ' | ' | ' |
Net earnings per share amounts of the benefit resulting from the Approved and Preferred Enterprises | $0.01 | $0.02 | $0.03 | ' | ' | ' | ' | ' | ' | ' | ' |
Tax credit carryforward | $952 | $840 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Taxes_on_Income_Profit_Loss_Be
Taxes on Income (Profit (Loss) Before Income Tax Expense Included In The Statement Of Operations) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Profit before income tax expense | $806 | $748 | $1,846 |
Current tax expense (benefit) | 37 | 52 | 31 |
Deferred taxes | -3,012 | ' | ' |
Income tax expense (benefit) | -2,975 | 52 | 31 |
Israel [Member] | ' | ' | ' |
Profit before income tax expense | 782 | 495 | 1,867 |
Current tax expense (benefit) | -41 | ' | ' |
Deferred taxes | -3,079 | ' | ' |
Foreign Jurisdictions [Member] | ' | ' | ' |
Profit before income tax expense | 24 | 253 | -21 |
Current tax expense (benefit) | 78 | 52 | 31 |
Deferred taxes | $67 | ' | ' |
Taxes_on_Income_Reconciliation
Taxes on Income (Reconciliation Of The Theoretical Income Tax Expense To The Actual Income 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] | ' | ' | ' |
Profit before income tax expense (benefit) as reported in the consolidated statements of comprehensive income | $806 | $748 | $1,846 |
Statutory tax rates | 25.00% | 25.00% | 24.00% |
Theoretical tax benefit calculated | 202 | 187 | 443 |
Other | -118 | 15 | 14 |
Changed in liability for undistributed income of subsidiaries | 132 | ' | ' |
Change in valuation allowance | -2,540 | 1,095 | -492 |
Loss on investment in subsidiaries | ' | -1,098 | ' |
Adjustment to net loss carryforward | 142 | ' | ' |
Change in effective corporate tax rates | -757 | ' | 287 |
Tax benefit arising from "Beneficiating and Preferred" Enterprises | -70 | -146 | -229 |
Foreign tax rate differential in subsidiaries | 34 | -1 | 8 |
Total | -3,177 | -135 | -412 |
Income tax expense (benefit) | ($2,975) | $52 | $31 |
Taxes_on_Income_Deferred_Tax_A
Taxes on Income (Deferred Tax Assets And Liabilities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Taxes on Income [Abstract] | ' | ' |
Net operating loss carryforwards (in Israel) | $2,543 | $1,865 |
Net operating loss carryforwards (outside Israel) | 343 | 485 |
Capital loss carryforwards (in Israel) | 1,252 | 1,098 |
Severance benefits | 32 | 8 |
Provision for vacation pay | 280 | 174 |
Tax credit carryforward | 952 | 840 |
Allowance for doubtful accounts | 13 | 11 |
Total gross deferred tax assets | 5,415 | 4,481 |
Less valuation allowance | -1,595 | -4,135 |
Net deferred tax assets | 3,820 | 346 |
Undistributed income of subsidiaries | -134 | ' |
Fixed assets - differences in depreciation | -635 | -346 |
Total gross deferred tax liabilities | -769 | -346 |
Net deferred tax assets | 3,051 | ' |
Deferred tax assets, short-term (in other current assets) | 188 | ' |
Deferred tax assets, long Term | $2,863 | ' |
Financial_Instruments_and_Risk2
Financial Instruments and Risk Management (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Changes in the fair value of the net written put option | $35 | $135 |
Currency translation adjustments included in financial income | -15 | 9 |
Carrying Amount [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Long-term debt | 788 | 1,296 |
Net written put option | 554 | 497 |
Total liabilities | 1,342 | 1,793 |
Fair Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Long-term debt | 704 | 1,271 |
Net written put option | 554 | 497 |
Total liabilities | 1,258 | 1,768 |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Long-term debt | ' | ' |
Net written put option | ' | ' |
Total liabilities | ' | ' |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Long-term debt | 704 | 1,271 |
Net written put option | ' | ' |
Total liabilities | 704 | 1,271 |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Long-term debt | ' | ' |
Net written put option | 554 | 497 |
Total liabilities | $554 | $497 |
Related_Party_Balances_and_Tra2
Related Party Balances and Transactions (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Related Party Balances and Transactions [Abstract] | ' | ' | ' | |||
Trade accounts receivable | $26 | ' | ' | |||
Trade accounts payable | ' | 1,336 | ' | |||
Cost of revenues | 3,402 | [1] | 3,287 | [1] | 2,674 | [1] |
Selling, general and administrative expenses | $52 | ' | ' | |||
Percentage of raw material costs | 23.10% | 24.50% | 18.40% | |||
[1] | The Company's purchases from such supplier accounted for 23.1%, 24.5% and 18.4% of its raw material costs in 2013, 2012 and 2011, respectively. |