Document_and_Entity_Informatio
Document and Entity Information | 12 Months Ended |
Dec. 31, 2014 | |
Document And Entity [Abstract] | |
Document Type | 20-F |
Amendment Flag | FALSE |
Document Period End Date | 31-Dec-14 |
Entity Registrant Name | CAMTEK LTD |
Entity Central Index Key | 1109138 |
Current Fiscal Year End Date | -19 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2014 |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 30,494,522 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Current assets | ||||
Cash and cash equivalents | $18,220 | $16,495 | ||
Short-term deposits | 8,607 | 6,000 | ||
Trade accounts receivable, net | 22,341 | 27,048 | ||
Inventories | 24,650 | 17,911 | ||
Due from affiliated companies | 501 | 233 | ||
Other current assets | 2,382 | 1,913 | ||
Deferred tax asset | 858 | 938 | ||
Total current assets | 77,559 | 70,538 | ||
Property, plant and equipment, net | 13,025 | 14,481 | ||
Long-term inventory | 1,476 | [1] | 2,225 | [1] |
Long-term restricted deposit | 729 | 729 | ||
Deferred tax asset | 891 | 975 | ||
Other assets | 348 | 339 | ||
Intangible assets, net | 928 | 1,008 | ||
Goodwill | 1,555 | 1,555 | ||
Total noncurrent assets | 5,927 | 6,831 | ||
Total assets | 96,511 | 91,850 | ||
Current liabilities | ||||
Trade accounts payable | 9,490 | 7,753 | ||
Other current liabilities | 16,279 | 15,585 | ||
Total current liabilities | 25,769 | 23,338 | ||
Long-term liabilities | ||||
Liability for employee severance benefits | 860 | 858 | ||
Other long-term liabilities | 4,150 | 5,758 | ||
Total noncurrent liabilities | 5,010 | 6,616 | ||
Total liabilities | 30,779 | 29,954 | ||
Commitments and contingencies | ||||
Shareholders' equity | ||||
Ordinary shares NIS 0.01 par value, 100,000,000 shares authorized at December 31, 2014 and 2013; 32,586,898 and 32,497,902 issued shares at December 31, 2014 and 2013, respectively; 30,494,522 and 30,405,526 shares outstanding at December 31, 2014 and 2013, respectively | 134 | 134 | ||
Additional paid-in capital | 63,465 | 62,966 | ||
Retained earnings | 4,031 | 694 | ||
Total shareholders' equity before treasury stock | 67,630 | 63,794 | ||
Treasury stock, at cost (2,092,376 as of December 31, 2014 and 2013) | -1,898 | -1,898 | ||
Total shareholders' equity | 65,732 | 61,896 | ||
Total liabilities and shareholders' equity | $96,511 | $91,850 | ||
[1] | Long-term Inventory: At December 31, 2014, $1,476 of the Company's inventory is classified in long-term assets based on Management's estimate and the recent level of sales (at December 31, 2013- $2,225). Of this amount, $1,401 is comprised of spare parts (at December 31, 2013 - $1,353). The Company's policy is to keep components to provide support and service to systems sold by it to its customers over the past years (usually the support is over a period of seven to ten years) until the Company announces it will not continue to support certain systems. Therefore, this inventory is usually consumed over longer periods than inventory held for sale, and as such the respective amount that is not expected to be consumed in the next year is classified as non-current. Management believes that this amount will be utilized according to its forecasted sales. Management believes no loss will be incurred on its disposition. The remaining portion of long-term inventory consists of Functional InkJet Technology (“FIT") components and systems which in Management's estimation will not be sold during the next 12 months. Management believes that according to its forecasted sales this amount will mainly be utilized in 2016. Management believes no loss will be incurred on its disposition. |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (ILS) | Dec. 31, 2014 | Dec. 31, 2013 |
Consolidated Balance Sheets [Abstract] | ||
Common Stock, par value per share | 0.01 | 0.01 |
Common Stock, shares authorized | 100,000,000 | 100,000,000 |
Common Stock, shares issued | 32,586,898 | 32,497,902 |
Common Stock, shares outstanding | 30,494,522 | 30,405,526 |
Treasury Stock, shares | 2,092,376 | 2,092,376 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | |||
Sales of products | $71,371 | $67,864 | $66,929 |
Service fees | 16,942 | 17,541 | 17,618 |
Total revenues | 88,313 | 85,405 | 84,547 |
Cost of revenues: | |||
Cost of products sold | 35,870 | 38,692 | 35,908 |
Cost of services | 11,424 | 12,311 | 11,574 |
Total cost of revenues | 47,294 | 51,003 | 47,482 |
Gross profit | 41,019 | 34,402 | 37,065 |
Research and development costs | 14,406 | 14,370 | 12,916 |
Selling, general and administrative expenses | 21,417 | 22,362 | 21,138 |
Reorganization and impairment | 60 | -3,466 | 3,031 |
Total operating expenses | 35,883 | 33,266 | 37,085 |
Operating income (loss) | 5,136 | 1,136 | -20 |
Financial income (expenses), net | -1,220 | -1,738 | 233 |
Income (loss) before income taxes | 3,916 | -602 | 213 |
Income tax (expense) benefit | -579 | 609 | -210 |
Net income | $3,337 | $7 | $3 |
Earnings per ordinary share: | |||
Basic | $0.11 | $0 | $0 |
Diluted | $0.11 | $0 | $0 |
Weighted average number of ordinary shares outstanding: | |||
Basic | 30,464 | 30,040 | 29,849 |
Diluted | 30,545 | 30,094 | 30,013 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Ordinary Shares NIS 0.01 par value [Member] | Treasury stock [Member] | Additional paid-in capital [Member] | Retained earnings (accumulated losses) [Member] | ||
In Thousands, except Share data | |||||||
Balance, value at Dec. 31, 2011 | $59,933 | $133 | ($1,898) | $61,014 | $684 | ||
Balance, shares at Dec. 31, 2011 | 31,810,340 | -2,092,376 | |||||
Exercise of share options and RSUs, value | [1] | [1] | |||||
Exercise of share options and RSUs, shares | 178,969 | ||||||
Share-based compensation expense | 401 | 401 | |||||
Net income | 3 | 3 | |||||
Balance, value at Dec. 31, 2012 | 60,337 | 133 | -1,898 | 61,415 | 687 | ||
Balance, shares at Dec. 31, 2012 | 31,989,309 | -2,092,376 | |||||
Exercise of share options and RSUs, value | 1,172 | 1 | 1,171 | ||||
Exercise of share options and RSUs, shares | 508,593 | ||||||
Share-based compensation expense | 380 | 380 | |||||
Net income | 7 | 7 | |||||
Balance, value at Dec. 31, 2013 | 61,896 | 134 | -1,898 | 62,966 | 694 | ||
Balance, shares at Dec. 31, 2013 | 30,405,526 | 32,497,902 | -2,092,376 | ||||
Exercise of share options and RSUs, value | 191 | [1] | 191 | ||||
Exercise of share options and RSUs, shares | 88,996 | ||||||
Share-based compensation expense | 308 | 308 | |||||
Net income | 3,337 | 3,337 | |||||
Balance, value at Dec. 31, 2014 | $65,732 | $134 | ($1,898) | $63,465 | $4,031 | ||
Balance, shares at Dec. 31, 2014 | 30,494,522 | 32,586,898 | -2,092,376 | ||||
[1] | Less than $ 1 thousand |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income | $3,337 | $7 | $3 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 2,171 | 2,587 | 2,125 |
Loss on disposal of fixed assets | 867 | ||
Impairment losses | 1,708 | 3,031 | |
Deferred tax benefit | 164 | -1,439 | -232 |
Share based compensation expense | 308 | 380 | 401 |
Provision for bad debts, net | 180 | 54 | 167 |
Revaluation of liabilities and interest expense on liabilities to the OCS | 522 | -3,701 | -586 |
Changes in operating assets and liabilities: | |||
Trade accounts receivable, net | 5,173 | -3,827 | 2,270 |
Inventories | -5,908 | 5,454 | 34 |
Due from affiliated companies | -268 | 158 | -3 |
Other assets | -478 | 262 | 1,147 |
Trade accounts payable | 1,737 | 143 | 837 |
Other current liabilities | -987 | 1,852 | -5,302 |
Liability for employee severance benefits, net | 2 | 148 | 58 |
Net cash provided by operating activities | 5,953 | 4,653 | 3,950 |
Cash flows from investing activities: | |||
Investment in long-term deposit | -729 | ||
Payment of (investment in) short-term deposits | -2,607 | 1,160 | -3,060 |
Purchase of fixed assets | -563 | -1,857 | -2,035 |
Purchase of intangible assets | -154 | -142 | -222 |
Net cash used in investing activities | -3,324 | -839 | -6,046 |
Cash flows from financing activities: | |||
Increase in bank loans | 4,160 | ||
Repayment of contingent liability | -268 | -640 | -331 |
Payment to OCS | -181 | -267 | -289 |
Repayment of loans | -6,252 | -4,700 | |
Proceeds from exercise of share options and RSUs | 191 | 1,172 | |
Net cash used in financing activities | -258 | -5,987 | -1,160 |
Effect of exchange rate changes on cash | -646 | -199 | -62 |
Net (decrease) increase in cash and cash equivalents | 1,725 | -2,372 | -3,318 |
Cash and cash equivalents at beginning of the year | 16,495 | 18,867 | 22,185 |
Cash and cash equivalents at end of the year | 18,220 | 16,495 | 18,867 |
Supplementary cash flows information: | |||
Interest paid | 131 | 137 | |
Income taxes | $575 | $250 | $348 |
Nature_of_Operations
Nature of Operations | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Nature of Operations [Abstract] | ||||||||||||
Nature of Operations | Note 1 - Nature of Operations | |||||||||||
A. Camtek Ltd. (“Camtek” or “Company”), an Israeli corporation, is a majority owned (55.48%) subsidiary of Priortech Ltd. (“Parent”), an Israeli corporation listed on the Tel-Aviv Stock Exchange. Camtek designs, develops, manufactures and markets automatic optical inspection systems (“AOI systems”) and related products. Camtek's AOI systems are used for yield enhancement for various applications in the electronic supply chain industry. The main applications along this supply chain are semiconductor fabrication and the production of printed circuit boards (PCB). | ||||||||||||
B. In December 2013, the Company decided not to continue with the development of future models of its Xact product line which had been acquired as part of the acquisition of SELA – Semiconductor Engineering Laboratories Ltd. in 2009 (“SELA acquisition”). In December 2014, the Company entered into a buy-out arrangement to sell the remaining activities of the Sela division. The sale was completed in January 2015 and as part of this arrangement, Camtek will sell the Sela remaining systems in inventory, but will no longer continue to support the Sela customer base. Accordingly, during 2014 and 2013 the Company wrote off excess inventories, fixed assets, goodwill and adjusted its liabilities in respect to the SELA acquisition. | ||||||||||||
The impact of these decisions on the consolidated statement of income in the years ended December 31, 2014 and 2013 was as follows: | ||||||||||||
Year ended | Year ended | |||||||||||
December 31, | December 31, | |||||||||||
2014 | 2013 | |||||||||||
U.S. Dollars | U.S. Dollars | |||||||||||
Account | Nature of impact | (in thousands) | (in thousands) | |||||||||
Cost of Revenues | Inventory write-off | 205 | 3,052 | |||||||||
Reorganization and | Impairment charge with respect | |||||||||||
impairment | of technology, customer | |||||||||||
relationships and goodwill | - | 1,656 | ||||||||||
Reorganization and | Revaluation of liabilities in | |||||||||||
impairment | respect of SELA acquisition | (106 | ) | (5,122 | ) | |||||||
Reorganization and | Other | |||||||||||
impairment | 166 | 854 | ||||||||||
265 | 440 | |||||||||||
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | ||
Dec. 31, 2014 | |||
Significant Accounting Policies [Abstract] | |||
Significant Accounting Policies | Note 2 - Significant Accounting Policies | ||
A. Basis of preparation of the financial statements | |||
The consolidated financial statements of Camtek and its subsidiaries (collectively “the Company”) have been prepared in accordance with accounting principles generally accepted in United States of America (“US GAAP”). All amounts in the notes to the financial statements are in thousands unless otherwise stated. | |||
B. Principles of consolidation | |||
The accompanying consolidated financial statements include the accounts of Camtek and its subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation. | |||
C. Use of estimates | |||
The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. As applicable to these financial statements, the most significant estimates and assumptions relate to revenue recognition, valuation of accounts receivable, inventories, goodwill, deferred tax assets, legal contingencies, contingent consideration and share based compensation among others. These estimates and assumptions are based on management's best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. It is often difficult to accurately estimate the ultimate outcome of a contingent liability. Different variables can affect the timing and amount that management provides for certain contingent liabilities. The Company's assessments are therefore subject to estimates made by management and its legal counsel. Adverse revision in management estimates of the potential liability could materially impact the Company's financial condition, results of operations or liquidity. | |||
The Company adjusts such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. | |||
D. Foreign currency transactions | |||
The functional currency of the Company and its subsidiaries is the U.S. Dollar. Revenue generated by the Company and its subsidiaries is primarily generated outside of Israel and a majority thereof is received in U.S. Dollars. A significant portion of materials and components purchased and operating expenses incurred are either paid for in U.S. Dollars or in New Israeli Shekels (“NIS”). | |||
Transactions not denominated in U.S. Dollars are recorded upon their initial recognition according to the exchange rate in effect on the date of the transaction. Exchange rate differences arising upon the settlement of monetary items or upon reporting the Company's monetary items at exchange rates different from that by which they were initially recorded during the period, or reported in previous financial statements, are charged to financial income (expenses), net. | |||
E. Cash and cash equivalents | |||
All highly liquid investments purchased with original maturities of three months or less are considered to be cash equivalents. | |||
F. Trade accounts receivable and allowance for doubtful accounts | |||
Accounts receivable are recorded at the outstanding recognized amount and do not bear interest. The allowance for doubtful accounts represents Management's best estimate of the probable loss inherent in existing accounts receivable balances as a result of possible non-collection. In determining the appropriate allowance, Management bases its estimate on information available about specific debtors, including aging of the balance, assessment of the underlying security received, the history of write-offs, relationships with the customers and the overall creditworthiness of the customers. | |||
G. Inventories | |||
Inventories consist of completed systems, partially completed systems and components and other raw materials, and are recorded at the lower of cost or market. Cost is determined by the moving – average cost method basis. | |||
Inventory write-downs are recorded at the end of each fiscal period for damaged, obsolete, excess and slow-moving inventory. These write-downs, to the lower of cost or market value, create a new cost basis that is not subsequently marked up based on changes in underlying facts and circumstances. | |||
Management periodically evaluates its inventory composition, giving consideration to factors such as the probability and timing of anticipated usage and the physical condition of the items, and then estimates a charge (reducing the inventory) to be provided for slow moving, technological obsolete or damaged inventory. These estimates could vary significantly, from actual requirements based upon future economic conditions, customer inventory levels or competitive factors that were not foreseen or did not exist when the inventory write-downs were established. | |||
Inventory that is not expected to be converted or consumed within the next year is classified as non-current, based on Management's estimates taking into account market conditions. | |||
H. Property, plant and equipment | |||
These assets are stated at cost less accumulated depreciation, and are depreciated over their estimated useful lives on a straight-line basis. | |||
Annual rates of depreciation are as follows: | |||
Land | 1% | ||
Building | 2% | ||
Machinery and equipment | 10% - 33% | ||
Computer equipment and software | 20%-33% | ||
Office furniture and equipment | 6% - 20% | ||
Automobiles | 15% | ||
Leasehold improvements are amortized by the straight-line method over the shorter of the lease term or the estimated useful economic life of such improvements. | |||
Certain of the Company's finished goods are systems used as demonstration systems, training systems, and for product development in the Company's laboratories (“internal use”). These systems are identical to the systems that Camtek sells in its ordinary course of business. In circumstances where the Company intends to utilize such systems for its internal use, the Company transfers them from inventory to fixed assets. The rationale for the transfer is that the Company does not have the intention to sell these systems in the ordinary course of business but rather expects to use them for its internal use over their expected useful lives. These systems are recorded as fixed assets at cost and depreciated over their useful lives. | |||
I. Intangible assets | |||
Patent registration costs are recorded at cost and amortized, beginning with the first year of utilization, over its expected useful life. | |||
Intangible assets purchased as part of the business combinations were recorded at their fair value and are amortized based on their remaining estimated useful lives. Acquired in-process research and development (IPR&D) will be amortized starting at the initial date of recording revenues from the associated technology. | |||
J. Goodwill | |||
Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Goodwill is reviewed for impairment at least annually in accordance with the provisions of FASB ASC Topic 350, Intangibles - Goodwill and Other. The goodwill impairment test is a two step test. Under step one, the fair value of the reporting unit is compared with its carrying value (including goodwill). If the fair value of the reporting unit is less than its carrying value, 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 an acquisition 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 value, step two does not need to be performed. | |||
The Company has set its annual impairment testing date at December 31. As of December 31, 2014, based on the Company's annual impairment test, no impairment charge was recognized. As of December 31, 2013, based on the Company's annual impairment test, impairment charges were recognized. (See Note 9). | |||
K. Impairment of long-lived assets | |||
The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to undiscounted future cash flows expected to be generated by the asset. If the carrying amount of the long lived asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized to the extent that the asset's carrying amount exceeds its fair value (See Note 9). | |||
L. Fair values of financial instruments | |||
The carrying amounts of the Company's financial instruments, including cash and cash equivalents, short-term deposits, trade accounts receivable, trade accounts payable, and amounts from affiliates approximate fair value because of their short-term nature. | |||
The fair value of the long-term restricted deposit approximates the carrying amount, since it bears floating rate interest at the market rate. | |||
The contingent consideration liabilities relating to the Company's business combinations are measured at fair value at each balance sheet date. | |||
M. Revenue recognition | |||
The Company recognizes revenue from sales of its products when the products are installed at the customer's premises and are operating in accordance with its specifications, signed documentation of the arrangement, such as a signed contract or purchase order, has been received, the price is fixed or determinable and collectibility is reasonably assured. | |||
In the limited circumstances when the products are installed by a trained distributor acting as an end user, revenue is recognized upon delivery to the distributor assuming all other criteria for revenue recognition are met. | |||
Service revenues consist mainly of revenues from maintenance contracts and are recognized ratably over the contract period. | |||
The Company implements the provisions of ASU 2009-13, Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements, and therefore for multiple-element arrangements the overall arrangement fee is allocated to each element (both delivered and undelivered elements) based on management's best estimate of their selling price where other sources of evidence are unavailable. The revenue relating to the undelivered elements is deferred using the relative selling price method utilizing vendor-specific-objective evidence (“VSOE”) until delivery of the deferred elements. | |||
The Company's multiple deliverable arrangements consist of product sales and non-standard warranties. A non-standard warranty is one that is for a period longer than 12 months. Accordingly, income from a non-standard warranty is deferred as unearned revenue and is recognized ratably as revenue commencing with and over the applicable warranty term. | |||
The Company routinely evaluates its products for inclusion of any embedded software that is more than incidental thereby requiring consideration of ASC Subtopic 985-605, “Software Revenue Recognition”. Based on such evaluation, the Company has concluded that none of its products have such embedded software. | |||
N. Warranty | |||
The Company records a liability for standard product warranty obligations at the time of sale based upon historical warranty experience. The term of the warranty is generally twelve months. | |||
For the Company's treatment of non-standard warranties, see Note 2(M) – Revenue recognition. | |||
O. Income taxes | |||
The Company accounts for income taxes in accordance with the asset and liability method whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company provides a valuation allowance to reduce deferred tax assets to the amount that is more likely than not to be realized. | |||
The Company recognizes the effect of uncertain income tax positions only if those positions are more likely than not of being sustained. Recognized uncertain income tax positions are measured at the largest amount that is more than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. | |||
Deferred tax liabilities and assets are classified as current or non-current based on the classification of the related asset or liability for financial reporting or, if not related to an asset or liability for financial reporting, according to the expected reversal dates of the specific temporary differences. | |||
P. Research and development | |||
Research and development costs are expensed as incurred. | |||
Q. Earnings / loss per ordinary share | |||
Basic earnings/loss per ordinary share is calculated using only weighted average ordinary shares outstanding. Diluted earnings per share, if relevant, gives effect to dilutive potential ordinary shares outstanding during the year. Such dilutive shares consist of incremental shares, using the treasury stock method, from the assumed exercise of share options, warrants and convertible loan. | |||
For the years ended December 31, 2014, 2013 and 2012, the effect of the exercise of outstanding dilutive potential share options and Restricted Share Units ("RSUs") has been included in computing dilutive earnings per ordinary share (see Note 16). | |||
R. Share-based compensation | |||
The Company accounts for its employee share-based compensation as an expense in the financial statements. All awards are equity classified and therefore such cost is measured at the grant date fair value of the award. The Company estimates share option grant date fair value using the Black-Scholes-Merton option-pricing model. (For details see Note 15). | |||
S. Fair value measurements | |||
The Company implements the provisions of ASC Topic 820 "Fair Value Measurements and Disclosures" ("ASC 820"). ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: | |||
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. | |||
Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. | |||
Level 3 inputs are unobservable inputs for the asset or liability. (For details see Note 21). | |||
T. Derivative instruments | |||
The Company enters into option contracts and forward exchange agreements in order to reduce its exposure with respect to various commitments in currencies other than the dollar, in connection with expenses in New Israeli Shekels. | |||
The Company does not issue or hold derivative financial instruments for trading purposes, but rather to manage its foreign currency exposure. Nevertheless, these transactions do not meet all the conditions for hedge accounting and accordingly, the changes in fair value of such instruments are recorded directly to financial income (expenses), net. | |||
The Company's foreign exchange derivative contracts are marked-to-market based on the determined fair value of open contracts at period end. (See Note 14). | |||
U. Contingent liabilities | |||
A contingency (provision) in accordance with ASC Topic 450-10-05, Contingencies, is an existing condition or situation involving uncertainty as to the range of possible loss to the entity. | |||
A provision for claims is recognized if it is probable (likely to occur) that a liability has been incurred and the amount can be estimated reasonably. | |||
V. Government-sponsored research and development | |||
The Company records grants received from the Office of the Chief Scientist of the Israeli Ministry of Industry and Trade (the “OCS”) as a liability, if it is probable that the Company will have to repay the grants received. If it is not probable that the grants will be repaid, the Company records the grants as a reduction to research and development expenses. Royalties paid to the OCS are recognized as a reduction of the above-mentioned liability. | |||
The Company accounts for OCS liabilities acquired in business combinations within the confines of debt obligations and as such changes in the liability from period to period, caused by changes to the estimated timing of future repayments and accrued interest, are accounted for prospectively and recorded as financial expenses (income). (See Note 12 and Note 13F). | |||
W. Recently issued and adopted 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. The Company implemented the provisions of ASU 2013-11 as of January 1, 2014. | |||
In April 2014, the FASB issued ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. ASU 2014-08 change the requirements for reporting discontinued operations. This ASU limits discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have a major effect on an entity's operations and financial results. The Company elected to early adopt this ASU as of January 1, 2014. Accordingly, further to that mentioned in Note 1B, Sela division is not presented as a discontinued operation. | |||
X. New standards not yet adopted | |||
In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers." ASU 2014-09 is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for annual reporting periods, and interim periods within that period, beginning after December 15, 2016 and early adoption is not permitted. Companies may use either a full retrospective or a modified retrospective approach to adopt ASU 2014-09. The Company has not yet determined the potential effects of the adoption of ASU 2014-09 on its Consolidated Financial Statements. | |||
Cash_and_Cash_Equivalents
Cash and Cash Equivalents | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Cash and Cash Equivalents [Abstract] | |||||||
Cash and Cash Equivalents | Note 3 - Cash and Cash Equivalents | ||||||
December 31, | |||||||
2014 | 2013 | ||||||
U.S. Dollars | |||||||
Bank balances | 18,130 | 16,405 | |||||
Restricted cash | 90 | 90 | |||||
18,220 | 16,495 | ||||||
As of December 31, 2014 and 2013, $90 were restricted against credit lines to banking institutions in Hong Kong (denominated in Hong Kong Dollars). | |||||||
The Company's cash and cash equivalent balance at December 31, 2014 and 2013 is denominated in the following currencies: | |||||||
December 31, | |||||||
2014 | 2013 | ||||||
U.S. Dollars | |||||||
US Dollars | 9,576 | 11,015 | |||||
New Israeli Shekels | 2,569 | 1,208 | |||||
Euro | 2,033 | 1,936 | |||||
Japanese YEN | 1,825 | 489 | |||||
Chinese RMB | 1,541 | 1,101 | |||||
Other currencies | 676 | 746 | |||||
18,220 | 16,495 | ||||||
Inventories
Inventories | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Inventories [Abstract] | |||||||
Inventories | Note 4 - Inventories | ||||||
December 31, | |||||||
2014 | 2013 | ||||||
U.S. Dollars | |||||||
Components | 10,929 | 11,115 | |||||
Work in process | 5,575 | 3,795 | |||||
Finished products * | 9,622 | 5,226 | |||||
26,126 | 20,136 | ||||||
* | including systems at customer locations not yet sold, as of December 31, 2014 and 2013, in the amount of $4,532 and $2,287 respectively. | ||||||
Inventories are presented in: | |||||||
December 31, | |||||||
2014 | 2013 | ||||||
U.S. Dollars | |||||||
Current assets | 24,650 | 17,911 | |||||
Long-term assets (A) | 1,476 | 2,225 | |||||
26,126 | 20,136 | ||||||
(A) | Long-term Inventory: | ||||||
At December 31, 2014, $1,476 of the Company's inventory is classified in long-term assets based on Management's estimate and the recent level of sales (at December 31, 2013- $2,225). Of this amount, $1,401 is comprised of spare parts (at December 31, 2013 - $1,353). The Company's policy is to keep components to provide support and service to systems sold by it to its customers over the past years (usually the support is over a period of seven to ten years) until the Company announces it will not continue to support certain systems. Therefore, this inventory is usually consumed over longer periods than inventory held for sale, and as such the respective amount that is not expected to be consumed in the next year is classified as non-current. Management believes that this amount will be utilized according to its forecasted sales. Management believes no loss will be incurred on its disposition. The remaining portion of long-term inventory consists of Functional InkJet Technology (“FIT") components and systems which in Management's estimation will not be sold during the next 12 months. Management believes that according to its forecasted sales this amount will mainly be utilized in 2016. Management believes no loss will be incurred on its disposition. | |||||||
(B) Inventory write-down | |||||||
As of December 31, 2014, based on the Company's decision in December 2014 to sell the remaining activities of the Sela division, an obsolescence provision was recorded in the amount of $205 against SELA inventory (at December 31, 2013 - $3,052). | |||||||
The provision is recorded in the costs of products sold line item in the consolidated statement of operations. This provision results in a new cost basis that is not subsequently marked up based on changes in underlying facts and circumstances. | |||||||
In addition, as of December 31, 2014, based on Management's estimates regarding future sales, an additional provision of $283 was made in the costs of products sold line item in the consolidated statement of operations against damaged, obsolete, excess and slow-moving inventory (at December 31, 2013 - $540). | |||||||
As a result of the above mentioned, the total amount of the inventory write-down for the year ended December 31, 2014 is $488 (2013 - $3,592). | |||||||
Other_Current_Assets
Other Current Assets | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Other Current Assets [Abstract] | |||||||
Other Current Assets | Note 5 - Other Current Assets | ||||||
December 31, | December 31, | ||||||
2014 | 2013 | ||||||
U.S. Dollars | |||||||
Due from Government institutions | 1,013 | 424 | |||||
Prepaid expenses | 584 | 454 | |||||
Advances to suppliers | 361 | 290 | |||||
Deposits for operating leases | 113 | 69 | |||||
Other | 311 | 676 | |||||
2,382 | 1,913 | ||||||
Property_Plant_and_Equipment_N
Property, Plant and Equipment, Net | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Property, Plant and Equipment, Net [Abstract] | |||||||
Property, Plant and Equipment, Net | Note 6 - Property, Plant and Equipment, Net | ||||||
December 31, | |||||||
2014 | 2013 | ||||||
U.S. Dollars | |||||||
Cost: | |||||||
Land | 863 | 863 | |||||
Building | 10,286 | 10,245 | |||||
Machinery and equipment | 5,943 | 6,504 | |||||
Office furniture and equipment | 1,202 | 1,202 | |||||
Computer equipment and software | 4,602 | 4,566 | |||||
Automobiles | 65 | 65 | |||||
Leasehold improvements | 1,057 | 1,048 | |||||
24,018 | 24,493 | ||||||
Less accumulated depreciation | 10,993 | 10,012 | |||||
13,025 | 14,481 | ||||||
Depreciation expenses for the years ended December 31, 2014, 2013 and 2012 amounted to $1,937, $2,166, and $1,640, respectively. | |||||||
In accordance with agreements signed in August 2010 and August 2011 with Bank Leumi L'Israel and in August 2011 with Bank Mizrahi, a lien has been placed on the Company's facility in Israel. See Note 13(D) and Note 13(E). | |||||||
LongTerm_Restricted_Deposit
Long-Term Restricted Deposit | 12 Months Ended |
Dec. 31, 2014 | |
Long-Term Restricted Deposit [Abstract] | |
Long-Term Restricted Deposit | Note 7 - Long-Term Restricted Deposit |
In October 2012, the Company was required to post an appeal bond of $729 with the United States District Court for the District of Minnesota ("the Court"), in order to stay collection of the contempt judgment pending resolution of the appeal. The bond accrues interest at the US Treasury Bill daily rate. On February 9, 2015, this contempt appeal was successful, see Note 13(C). | |
Other_Assets
Other Assets | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Other Assets [Abstract] | |||||||
Other Assets | Note 8 - Other Assets | ||||||
December 31, | |||||||
2014 | 2013 | ||||||
U.S. Dollars | |||||||
Deposits for operating leases | 348 | 339 | |||||
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets, Net | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Goodwill and Intangible Assets, Net [Abstract] | |||||||
Goodwill and Intangible Assets, Net | Note 9 - Goodwill and Intangible Assets, Net | ||||||
A. Goodwill | |||||||
December 31, | |||||||
2014 | 2013 | ||||||
U.S. Dollars | |||||||
Goodwill | 3,653 | 3,653 | |||||
Accumulated impairment losses | (2,098 | ) | (2,098 | ) | |||
1,555 | 1,555 | ||||||
1. Printar | |||||||
As of December 31, 2014 and 2013, based on the Company's annual impairment tests, no impairment charge was recognized for the goodwill recorded in the Printar acquisition. | |||||||
2. SELA | |||||||
During the fourth quarter of 2013, the Company announced that it will not continue with development of future models of its Xact product line. This resulted in an impairment of the Company's remaining goodwill with respect to SELA in the amount of $24. The impairment charge was recorded in a separate line item within operating expenses in the consolidated statement of operations. See also Note 1(B). | |||||||
B. Intangible assets, net | |||||||
December 31, | |||||||
2014 | 2013 | ||||||
U.S. Dollars | |||||||
Patent registration costs | 1,959 | 1,805 | |||||
IPR&D | 1,002 | 1,002 | |||||
Technology | 2,854 | 2,854 | |||||
Customer relationships | 45 | 45 | |||||
Intangible assets at cost | 5,860 | 5,706 | |||||
Accumulated amortization and impairment | 4,932 | 4,698 | |||||
Total intangible asset, net | 928 | 1,008 | |||||
Patent registration costs are amortized over their estimated useful life of 10 years. The IPR&D is amortized over its estimated useful life of 10 years. | |||||||
Amortization expense for the years ended December 31, 2014, 2013 and 2012 amounted to $234, $421 and $485, respectively. The amortization expense for 2014 includes the write-off of patents with a net value of $37 which were abandoned (in 2013 and 2012 - $33 and $28, respectively). | |||||||
In 2013, the Company recorded an impairment charge of $1,684 with respect to the technology and customer relationships based on the annual impairment test as determined using the present value of future cash flows (see also Note 9A). The impairment charge was recorded in a separate line item within operating expenses in the consolidated statement of operations. | |||||||
As of December 31, 2014, the estimated amortization expenses of intangible assets for the years 2015 to 2019 is as follows: | |||||||
Year ending December 31, | U.S. Dollars | ||||||
2015 | 176 | ||||||
2016 | 138 | ||||||
2017 | 138 | ||||||
2018 | 138 | ||||||
2019 | 126 | ||||||
716 | |||||||
Other_Current_Liabilities
Other Current Liabilities | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Other Current Liabilities [Abstract] | |||||||||||||
Other Current Liabilities | Note 10 - Other Current Liabilities | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
U.S. Dollars | |||||||||||||
Accrued employee compensation and related benefits | 6,306 | 6,546 | |||||||||||
Accrued expenses | 2,146 | 2,291 | |||||||||||
Commissions | 2,048 | 2,040 | |||||||||||
Current maturities of contingent consideration (1) | 1,900 | 268 | |||||||||||
Advances from customers and deferred revenues | 1,416 | 1,985 | |||||||||||
Accrued warranty costs (2) | 1,151 | 1,304 | |||||||||||
Government institutions | 1,084 | 992 | |||||||||||
Current maturities of OCS liability (1) | 228 | 159 | |||||||||||
16,279 | 15,585 | ||||||||||||
-1 | See also Note 12 – Other long-term liabilities | ||||||||||||
-2 | Changes in the accrued warranty costs are as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
U.S. Dollars | |||||||||||||
Beginning of year | 1,304 | 1,150 | 1,637 | ||||||||||
New warranties | 2,152 | 2,327 | 2,159 | ||||||||||
Reductions | (2,305 | ) | (2,173 | ) | (2,646 | ) | |||||||
Balance at end of year | 1,151 | 1,304 | 1,150 |
Liability_for_Employee_Severan
Liability for Employee Severance Benefits | 12 Months Ended |
Dec. 31, 2014 | |
Liability for Employee Severance Benefits [Abstract] | |
Liability for Employee Severance Benefits | Note 11 - Liability for Employee Severance Benefits |
Under Israeli law and labor agreements the Company is required to pay severance payments to each employee who was employed by the Company for over one year and has been terminated by the Company or resigned under certain specified circumstances. The liability related to these severance payments is calculated on the basis of the latest salary of the employee multiplied by the number of years of employment as of the balance sheet date. The Company also has defined contribution plans for which it makes contributions to severance pay funds and appropriate insurance policies. Withdrawal of the reserve monies is contingent upon the fulfillment of detailed provision in the Severance Law. Under local law in various territories in which the Company operates, employees with one year or more of service are entitled to receive a lump-sum payment upon termination of their employment based on their length of service and rate of pay at the time of termination. | |
1. The liability in respect of most of its employees is discharged by participating in a defined contribution pension plan and making regular deposits with a pension fund or by individual insurance policies. The liability deposited with the pension fund is based on salary components as prescribed in the existing labor agreement. The custody and management of the amounts so deposited are independent of the companies and accordingly such amounts funded (included in expenses on an accrual basis) and related liabilities are not reflected in the balance sheet. | |
2. The liability for severance pay which is not covered by the contribution plan amounted to $860 and $858 as of December 31, 2014 and 2013, respectively. | |
3. Severance pay expenses were $1,145, $1,081, and $1,104 in 2014, 2013 and 2012, respectively. | |
Other_LongTerm_Liabilities
Other Long-Term Liabilities | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Other Long-Term Liabilities [Abstract] | ||||
Other Long-Term Liabilities | Note 12 - Other Long-Term Liabilities | |||
December 31, | ||||
2014 | 2013 | |||
U.S. Dollars | ||||
Liability for contingent consideration in respect of | ||||
business combinations (1) | - | 1,762 | ||
Liability to OCS, mainly in respect of business combinations (2) | 4,150 | 3,996 | ||
4,150 | 5,758 | |||
-1 | In accordance with ASC Topic 820 (Statement 157), the Company's liabilities for contingent consideration in respect of the acquisitions of Printar and SELA (see Note 21) are measured at fair value using Level 3 inputs. See Note 1B for the effect of the Company's decision regarding SELA's future operations. | |||
-2 | Liability to OCS is in respect of the acquisitions of Printar, SELA and new grants received in 2010 and 2009. See Note 1B for the effect of the Company's decision regarding SELA's future operations. | |||
The effective interest rate used in the capitalization of the liabilities to the OCS in respect of the acquisitions of Printar and SELA as of December 31, 2014 were 11% and 21%, respectively. (As of December 31, 2013, 10% and 21%, for Printar and SELA, respectively). | ||||
See Note 10 for current maturities of liability for contingent consideration and liability to OCS. | ||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Commitments and Contingencies [Abstract] | |||||||||||||||||
Commitments and Contingencies | Note 13 - Commitments and Contingencies | ||||||||||||||||
A. Operating leases | |||||||||||||||||
The Company's subsidiaries have entered into various non-cancelable operating lease agreements, principally for office space. In addition, in 2013, the Company entered into a new framework agreement for non-cancelable operating leases for vehicles for a period of 36 months. | |||||||||||||||||
As of December 31, 2014, minimum future rental payments under such non-cancelable operating leases are as follows: | |||||||||||||||||
Year Ending | U.S. Dollars | ||||||||||||||||
December 31, | |||||||||||||||||
2015 | 1,558 | ||||||||||||||||
2016 | 946 | ||||||||||||||||
2017 | 287 | ||||||||||||||||
Thereafter | - | ||||||||||||||||
2,791 | |||||||||||||||||
Aggregate office rent expenses amounted to $845, $1,002, and $979 in 2014, 2013 and 2012, respectively. | |||||||||||||||||
B. Allowance for doubtful debts | |||||||||||||||||
The following is a summary of the allowance for doubtful accounts related to accounts receivable for the years ended December 31: | |||||||||||||||||
Balance at | Balance at | ||||||||||||||||
beginning | Reversal of | Write-off of | end of | ||||||||||||||
of period | Provision | provision | provision | period | |||||||||||||
U.S. Dollars | |||||||||||||||||
2012 | 2,227 | 307 | -140 | -1,071 | 1,323 | ||||||||||||
2013 | 1,323 | 272 | -218 | -16 | 1,361 | ||||||||||||
2014 | 1,361 | 344 | -164 | -15 | 1,526 | ||||||||||||
C. Litigation | |||||||||||||||||
1.On July 14, 2005, a lawsuit was filed against the Company in the United States District Court for the District of Minnesota (the “Court”) by one of the Company's competitors in the field of semiconductor wafer inspection equipment, August Technology Corporation (today Rudolph Technologies Inc., hereinafter “Rudolph", after August Technology's acquisition by Rudolph). This suit alleged that the Company's Falcon inspection system infringed Rudolph's U.S. Patent No. 6,826,298 (the “'298 Patent”) and sought injunctive relief and damages. On March 6, 2009, a jury verdict in favor of Rudolph was rendered in this action, awarding Rudolph damages of approximately $6.8 million for the Company's sales of its Falcon products in the United States. On August 28, 2009, the Court entered judgment ordering the Company to pay the jury award, and an additional $1.2 million in prejudgment interest. The Court also issued an injunction (the “Injunction”) prohibiting future sales and marketing of the Falcon product in the United States. On January 7, 2011, the Court found that Rudolph was entitled to an additional supplemental award of $646 in damages for Falcon sales which occurred after the time period considered by the jury. | |||||||||||||||||
The Company appealed the Court's judgment to the United States Court of Appeals for the Federal Circuit on August 10, 2010, and posted a bond with the Court to stay collection of the judgment pending resolution of the appeal. On August 22, 2011, the Court of Appeals for the Federal Circuit found that the Court had erred in its instructions to the jury regarding the construction/meaning of a material claim term in the asserted ‘298 Patent and vacated the finding of infringement, the damages award and the Injunction. The Court of Appeals remanded the case to the Court for a limited trial based on a corrected claim construction. On February 9, 2015 a jury verdict in favor of Rudolph was rendered in this action, awarding Rudolph the previously awarded damages of $7,400 plus interest, together amounting to approximately $14,500 and also reinstating the Injunction. | |||||||||||||||||
The Company has filed its Notice of Appeal of the Court's judgment to the United States Court of Appeals for the Federal Circuit. On March 11, 2015, the Company also posted a $15,000 bond with the Court to stay collection of the judgment pending resolution of the appeal.The bond was secured by a guarantee from Bank Mizrahi in respect of which the Company was required to place $7,875 in a restricted deposit.In addition, this guarantee is secured by a lien that was previously placed on the Company's facility in Israel, in accordance with agreements signed in August 2010 and August 2011 with Bank Leumi L'Israel and in August 2011 with Bank Mizrahi. | |||||||||||||||||
Although it is difficult to predict the outcome of this patent infringement case, the Company believes that it has a strong legal position, and intends to continue to vigorously defend it in the Court and in the Court of Appeals, if required. The total range of loss for this case is between $0 to $14.5 million (excluding future interest and legal fees), with respect to which the Company has not recorded any accruals. | |||||||||||||||||
On March 9, 2011, in conjunction with the ‘298 Patent infringement case, Rudolph filed a motion for contempt seeking approximately $1.2 million and unspecified attorneys' fees for alleged contempt of the Court's Injunction due to certain post-verdict sales of Falcon systems. | |||||||||||||||||
On March 26, 2012, the Court issued an Order adopting the Magistrate Judge's Report and Recommendation issued August 11, 2011, on contempt and sanctions in a sum of $1,292. The Magistrate Judge also awarded Rudolph with $71 in attorney fees. The Court held that some of the Company's communications made during 2009 related to the eventual sale of some of its Falcon systems in Asia, were prohibited by the Injunction that was then in place (as mentioned above, the Injunction was vacated by the U.S. Court of Appeals for the Federal Circuit in August 2011). On April 10, 2012 Chief Judge Davis excused himself stating that he could no longer be "fair and impartial". On April 17, 2012 the Company filed a Rule 60 motion requesting that the contempt judgment be set aside for lack of due process. The new District Judge reduced the amount of sanctions award by half. The new judge denied the Company's request for a jury trial on contempt and sanctions. The Company has taken steps to appeal the sanctions award and submitted its opening appeal brief on November 30, 2012. On November 18, 2013 the Court of Appeals issued an opinion finding that the underlying contempt and sanctions findings were not final, appealable orders until after the resolution of the retrial of infringement of the ‘298 Patent infringement case in the Minnesota District Court. The Company deposited $729 with the Court as a bond while the appeal is pending. The jury verdict rendered February 9, 2015 in the ‘298 Patent infringement case ruled in favor of the Company in this action, and overturned the contempt findings and accordingly vacated the sanctions in the amount of $646. The Company has requested return of the deposited funds. | |||||||||||||||||
2. On December 27, 2011, Rudolph filed, but did not serve, a complaint in the Court charging the Company with infringement of Rudolph's U.S. Patent 7,779,528 (the “'528 Patent”) relating to semiconductor wafer inspection technology similar to that described in the ‘298 Patent. On January 19, 2012, the Company filed a re-examination request with the U.S Patent and Trademark Office (the "PTO") seeking re-examination of the '528 Patent. The PTO granted the re-examination request and preliminarily found that 18 claims were invalid. This PTO decision is not final and could change. On April 13, 2012, Rudolph agreed to stay the case until the completion of the re-examination. The District Court agreed to stay the case for 90 days at a time. The parties must reapply at the end of each stay period for a further stay. The case remains stayed at present. As Rudolph did not demand a specific dollar amount (but an accounting for damages and an injunction against infringing activity), the Company is unable to estimate the possible range of loss in this case and the effect on the Company's activities and results of operation, if any. The Company denies infringement and believes the claims of the ‘528 Patent are invalid. | |||||||||||||||||
3.On March 12, 2015, Rudolph filed a new lawsuit against the Company in the District Court alleging that the Eagle product infringes the ‘298 Patent. The suit does not demand a specific dollar amount but rather asks for an accounting for damages and for a preliminary and permanent injunction against infringing activity. The Company believes that its Eagle does not infringe the '298 patent and intends to aggressively defend itself from the allegations in this claim. | |||||||||||||||||
D. Agreement with Bank Leumi L'Israel (“BLL”) | |||||||||||||||||
In 2010, the Company was required to secure its obligations to BLL by a lien on its facility in Israel and a floating charge on its assets. Despite the completion of these obligations, these securities are still in place in order to facilitate the possibility of future credit. | |||||||||||||||||
E. Agreement with Bank Mizrahi | |||||||||||||||||
In July 2011 the Company signed an agreement with Bank Mizrahi for a credit facility. The Company's obligations to the Bank were secured by a lien on its facility in Israel and a floating charge on its assets. | |||||||||||||||||
As of December 31, 2014 the credit facility has not been utilized. | |||||||||||||||||
See Note 22 regarding an agreement signed with Bank Mizrahi in March 2015. | |||||||||||||||||
F. Chief Scientist | |||||||||||||||||
Through its acquisition of Printar and SELA in 2009, the Company participates in programs sponsored by the Israeli government for the support of research and development activities. The Company is committed to pay amounts to the Chief Scientist (OCS) at rates of 3.5% of the sales of products resulting from this research and development, up to an amount equal to 100% of the grants received by the Company, bearing interest at the rate of LIBOR. | |||||||||||||||||
The obligation to pay these royalties is contingent on actual sales of the products and in the absence of such sales, no payment is required. | |||||||||||||||||
As of December 31, 2014 the amount of non-repaid grants received including interest accrued, in respect of Printar and SELA, amounted to $6,029 and $2,352, respectively (December 31, 2013 - $5,810 and $2,525, respectively). The liabilities to the OCS were recorded at fair value as part of the purchase price allocation related to the acquisition of Printar and SELA and as of December 31, 2014 amounted to $3,670 and $60 , respectively (December 31, 2013 - $3,303 and $202 , respectively). (See Note 12 – Other long-term liabilities). | |||||||||||||||||
In 2009 and 2010, the Company received further grants in the amount of $598 ($648 including accrued interest) from the OCS in connection with the research and development activities related to the Printar acquisition. | |||||||||||||||||
G. Dispute with Chief Scientist | |||||||||||||||||
A dispute has arisen between the Company and the OCS in Israel in the amount of approximately $770, including accrued interest, regarding the royalty rate to be paid in respect of certain of the Company's products, the manufacturing and assembly of which has been moved to a foreign subsidiary. | |||||||||||||||||
Management, based on an opinion of its legal advisors, believes that the probability of an unfavorable resolution to this dispute is less than 50%. Accordingly, no accrual has been recorded in the financial statements in respect of this matter. | |||||||||||||||||
H. Outstanding Purchase Orders | |||||||||||||||||
As of December 31, 2014, the Company has purchase orders of $9,972 (2013 - $6,085) which mainly represent outstanding purchase commitments for inventory components ordered by the Company in the normal course of business. | |||||||||||||||||
Concentration_of_Risk_and_Fina
Concentration of Risk and Financial Instruments | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Concentration of Risk and Financial Instruments [Abstract] | |||||||||
Concentration of Risk and Financial Instruments | Note 14 - Concentration of Risk and Financial Instruments | ||||||||
Financial instruments that potentially expose the Company to concentrations of credit risk consist of cash equivalents, short-term bank deposits and trade receivables. The carrying amounts of financial instruments approximate fair value. | |||||||||
Cash and cash equivalents | |||||||||
The Company's cash equivalents are maintained with multiple high-quality institutions and the composition and maturities of investments are regularly monitored by management. | |||||||||
Trade receivable | |||||||||
The trade receivables of the Company are derived from sales to a large number of customers, primarily large industrial corporations located mainly in Asia, the United States and Europe. The Company generally does not require collateral: however, in certain circumstances, the Company may require a letter of credit, other collateral or additional guarantees. An allowance for doubtful accounts is determined with respect to those amounts that the Company has determined to be doubtful of collection. The Company performs ongoing credit evaluations of its customers. | |||||||||
Trade payable | |||||||||
The Company relies on limited source of suppliers and in some cases a sole supplier and/or subcontractors for a number of essential components and subsystems of its products. The Company does not have agreements with all of these suppliers and subcontractors for the continued supply of the components or subsystems they provide. An interruption in supply from these sources would disrupt production and adversely affect the Company's ability to deliver products to its customers, which could have an adverse effect on the Company's business, revenues and results of operations. | |||||||||
Liquidity: | |||||||||
As mentioned in Note 13C1, in March 2015, the Company posted a $15,750 bond with the United States Court of Appeals. Although the bond was posted for an undetermined period of time and will impact the Company's liquidity, the Company anticipates that its existing resources and cash flows from operations will be adequate to satisfy its liquidity requirements through calendar year 2015. If available liquidity will not be sufficient to meet the Company's operating needs, Management's plans include pursuing alternative financing arrangements or reducing expenditures as necessary to meet the Company's cash requirements. | |||||||||
Derivative Instruments | |||||||||
The Company enters into foreign exchange instruments to manage its U.S. Dollar to NIS currency exchange risks. The terms of all of these currency instruments are less than one year. The notional amounts and fair value of derivatives as of December 31, 2014 are: | |||||||||
Notional amount | Fair value | ||||||||
U.S. Dollars | |||||||||
Options | |||||||||
Buy put options (Buy dollars and Sell NIS) | 4,250 | 13 | |||||||
Sell call options (Sell dollars and Buy NIS) | 4,250 | -102 | |||||||
The fair value of the instruments generally reflects the estimated amounts that the Company would receive or pay upon termination of the contracts at the reporting date. | |||||||||
The Company's derivative instruments are measured at fair value on the measurement date using Level 2 inputs. | |||||||||
Such instruments had a combined fair value loss of $(96) and $(66) for the years ended December 31, 2014 and 2013, respectively, based on quotations from financial institutions. The Company does not apply hedge accounting. Gains /losses on these instruments are recognized in the consolidated statement of operations. | |||||||||
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Shareholders' Equity [Abstract] | ||||||||||||||||||||
Shareholders' Equity | Note 15 - Shareholders' Equity | |||||||||||||||||||
A. General | ||||||||||||||||||||
The Company shares are traded on the NASDAQ National Market under the symbol of CAMT, and also listed and traded on the Tel-Aviv stock exchange. | ||||||||||||||||||||
B. Purchase of Ordinary Shares | ||||||||||||||||||||
On September 17, 2001, the Company announced that the Board of Directors authorized a share repurchase program to acquire up to $3,000 of the Company's ordinary shares from time to time in open market transactions. During September 2001, the Company purchased 250,000 ordinary shares at a cost of $592 and during 2002 the Company purchased 761,619 ordinary shares at a total cost of $401 in connection with such program. | ||||||||||||||||||||
In 2008, the Board of Directors authorized a further share repurchase program Repurchases will not exceed a total aggregate price of $2,000. In 2008 1,080,757 shares were repurchased for an aggregate price of $905. | ||||||||||||||||||||
C. Stock Option Plan | ||||||||||||||||||||
As of December 31, 2014, the Company has six stock option plans for employees and directors. Future options will be granted only pursuant to the 2014 Share Option Plans described below. | ||||||||||||||||||||
In October 2003, the Company adopted a stock option plan (the Plan) pursuant to which the Company's Board of Directors may grant stock options to officers and key employees. The total number of options which may be granted to directors, officers, employees and consultants under this plan, is limited to 1,598,800 options. Stock options can be granted with an exercise price equal to or less than the stock's fair market value at the date of grant. All stock options have 10 year terms and vest and become fully exercisable after 4 years from the date of grant. On December 30, 2013, the Board of Directors elected to further extend the period of 2003 share option plan until June 30, 2014. | ||||||||||||||||||||
In October 2014, the Company adopted a 2014 Share Plan and its corresponding Sub-Plan for Grantees Subject to United States Taxation and Sub-Plan for Grantees Subject to Israeli Taxation which replaced the 2003 Share Option Plan. The total number of options that may be granted under the 2014 Share Option Plan is 3,000,000 options. | ||||||||||||||||||||
The fair value of each option award is estimated on the date of grant using the Black-Scholes-Merton option-pricing model that used the weighted average assumptions in the following table. The risk-free rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant. | ||||||||||||||||||||
2014 Grant | 2013 Grant | |||||||||||||||||||
Valuation assumptions: | ||||||||||||||||||||
Dividend yield | 0 | 0 | ||||||||||||||||||
Expected volatility | 64%-71% | 64%-69% | ||||||||||||||||||
Risk-free interest rate | 1.67%-2.3% | 1.74% | ||||||||||||||||||
Expected life (years) | 4.8-6.4 | 6.4 | ||||||||||||||||||
Vesting period (years) | 4 | 4 | ||||||||||||||||||
In the years ending December 31, 2014, 2013 and 2012, 296,000, 75,000 and 134,010 options were granted, respectively. | ||||||||||||||||||||
The total intrinsic value of outstanding as options as of December 31, 2014, 2013, and 2012 is $205, $813 and $42, respectively. | ||||||||||||||||||||
The total intrinsic value of vested options as of December 31, 2014 2013, and 2012 is $87, $275 and $0 respectively | ||||||||||||||||||||
The total intrinsic value of options exercised during 2014 is $190. | ||||||||||||||||||||
The total stock option compensation expense amounted to $308, $361, and $329 in 2014, 2013 and 2012, respectively. | ||||||||||||||||||||
As of December 31, 2014, there was $536 of total unrecognized compensation cost related to nonvested share-based compensation arrangements. That cost is expected to be recognized over a weighted-average period of 3.07 years. | ||||||||||||||||||||
Share option activity during the past three years is as follows: | ||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Weighted | Weighted | Weighted | ||||||||||||||||||
Number | average | Number | average | Number | average | |||||||||||||||
of | exercise | of | exercise | of | exercise | |||||||||||||||
options | price US$ | options | price US$ | options | price US$ | |||||||||||||||
Outstanding at January 1 | 735,519 | 2.99 | 1,195,085 | 3.15 | 1,234,199 | 3.31 | ||||||||||||||
Granted | 296,000 | 3.53 | 75,000 | 1.73 | 134,010 | 1.6 | ||||||||||||||
Forfeited and cancelled | (108,724 | ) | 2.47 | (174,915 | ) | 2.96 | (173,124 | ) | 3.11 | |||||||||||
Exercised | (88,996 | ) | 2.14 | (359,651 | ) | 3.26 | - | - | ||||||||||||
Outstanding at year end | 833,799 | 3.34 | 735,519 | 2.99 | 1,195,085 | 3.15 | ||||||||||||||
Vested at year end | 423,291 | 3.56 | 368,016 | 3.42 | 395,395 | 3.29 | ||||||||||||||
Weighted | Aggregate | |||||||||||||||||||
Number | Weighted | Average | intrinsic | |||||||||||||||||
of | average | Remaining | Value (in | |||||||||||||||||
options | exercise | Contractual | US$ | |||||||||||||||||
outstanding | price US$ | term (years) | thousands) | |||||||||||||||||
Outstanding as of December 31, 2014 | 833,799 | 3.34 | 0.73 | 205.66 | ||||||||||||||||
Vested and expected to vest at | ||||||||||||||||||||
31-Dec-14 | 800,958 | 3.34 | 0.73 | 189.2 | ||||||||||||||||
Exercisable at December 31, 2014 | 423,291 | 3.56 | 3 | 87.68 | ||||||||||||||||
The following table summarizes information about share options at December 31, 2014: | ||||||||||||||||||||
Weighted | ||||||||||||||||||||
average | ||||||||||||||||||||
Number of | remaining | |||||||||||||||||||
outstanding | Number | contractual | ||||||||||||||||||
Exercise price US$ | options | exercisable | life in years | |||||||||||||||||
0-2 | 155,000 | 66,248 | 7.82 | |||||||||||||||||
5-Mar | 668,799 | 347,043 | 7.19 | |||||||||||||||||
7-Jun | 10,000 | 10,000 | 1.58 | |||||||||||||||||
833,799 | 423,291 | 7.24 | ||||||||||||||||||
The following table summarizes information about nonvested options at December 31, 2014: | ||||||||||||||||||||
Weighted | ||||||||||||||||||||
average | ||||||||||||||||||||
grant- date | ||||||||||||||||||||
Options | fair value | |||||||||||||||||||
Balance at January 1, 2014 | 367,503 | 1.32 | ||||||||||||||||||
Granted | 296,000 | 1.82 | ||||||||||||||||||
Vested | (164,254 | ) | 1.88 | |||||||||||||||||
Forfeited | (88,741 | ) | 1.21 | |||||||||||||||||
Balance at December 31, 2014 | 410,508 | 1.48 | ||||||||||||||||||
D. Restricted Share Unit Plan | ||||||||||||||||||||
In August 2007, the Company adopted a Restricted Share Unit (“RSU”) Plan (the “Plan”) pursuant to which the Company's Board of Directors may grant shares to officers and key employees. The total number of shares, which may be granted to directors, officers, employees and consultants under this Plan, is limited to 1,500,000 authorized but unissued Shares, after it was increased in 2009 by an additional 1,200,000 from 300,000 authorized but unissued shares. | ||||||||||||||||||||
The exercise price for each grantee shall be as determined by the Board and specified in the applicable RSU notice of grant; provided, however, that unless otherwise determined by the Board (which determination shall not require shareholder approval unless so required in order to comply with Mandatory Law), the exercise price shall be no more than the underlying share's nominal value. For the removal of any doubt, the Board is authorized (without the need for shareholder approval unless so required in order to comply with Mandatory Law) to determine that the exercise price of an RSU is to be $0.00. | ||||||||||||||||||||
Unless otherwise determined by the Board with respect to any specific grantee or to any specific grant, (which determination shall not require shareholder approval unless so required in order to comply with Mandatory Law) and provided accordingly in the applicable RSU notice of grant, the RSUs shall vest (become automatically exercised) according to the vesting schedules as determined by the Board: | ||||||||||||||||||||
Forfeited units are returned to the pool. | ||||||||||||||||||||
Total share based awards expense amounted to $0, $19, and $72 in 2014, 2013 and 2012, respectively. | ||||||||||||||||||||
The total unrecognized compensation cost amounted to $0. | ||||||||||||||||||||
As of the balance sheet date the number of RSU's available for grant was 670,129. | ||||||||||||||||||||
There was no activity under the Restricted Share Unit Plan in 2014. | ||||||||||||||||||||
Earnings_Per_Ordinary_Share
Earnings Per Ordinary Share | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Earnings Per Ordinary Share [Abstract] | ||||||
Earnings Per Ordinary Share | Note 16 - Earnings Per Ordinary Share | |||||
The following table summarizes information related to the computation of basic and diluted earnings per Ordinary Share for the years indicated: | ||||||
Year Ended December 31, | ||||||
2014 | 2013 | 2012 | ||||
U.S. Dollars (In thousands, except per share data) | ||||||
Net income attributable to Ordinary Shares | 3,337 | 7 | 3 | |||
Weighted average number of Ordinary Shares | ||||||
outstanding used in basic earnings per Ordinary | ||||||
Share calculation | 30,464 | 30,040 | 29,849 | |||
Add assumed exercise of outstanding dilutive | ||||||
potential Ordinary Shares | 81 | 54 | 164 | |||
Weighted average number of Ordinary Shares | ||||||
Outstanding used in diluted earnings per Ordinary | ||||||
Share calculation | 30,545 | 30,094 | 30,013 | |||
Basic income per Ordinary Share | 0.11 | 0 | 0 | |||
Diluted income per Ordinary Share | 0.11 | 0 | 0 | |||
Number of options excluded from the diluted | ||||||
earnings per share calculation due to their | ||||||
anti-dilutive effect | 391 | 526 | 976 | |||
Segment_Information
Segment Information | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Information [Abstract] | ||||||||||||
Segment Information | Note 17 - Segment Information | |||||||||||
Description of segments: | ||||||||||||
Until the fourth quarter of 2013, the Company operated under one reporting segment. During the first quarter of 2014, following a change in the role of the Company's chief operating decision-maker (“CODM”), the Company determined that it operates under two reportable segments. | ||||||||||||
The Company's segment information has been prepared in accordance with ASC 280, "Segment Reporting." Operating segments are defined as components of an enterprise engaging in business activities about which separate financial information is available that is evaluated regularly by the in deciding how to allocate resources and assess performance. The Company's CODM is its Active Chairman and Chief Executive Officer, who evaluates the Company's performance and allocates resources based on segment revenues and operating income. | ||||||||||||
The Company's reportable segments are as follows: semiconductor fabrication industry (“microelectronics”) and printed circuit boards industry (“PCB”). | ||||||||||||
Microelectronics - The semiconductor fabrication industry produces integrated circuits on silicon (or other semiconductor materials) wafers; each wafer contains numerous integrated circuits dices which are small block of semiconducting material on which a given functional circuit is fabricated. | ||||||||||||
PCB - A printed circuit board is the basic platform that supports and interconnects a broad range of electronic components, such as integrated circuit devices, resistors, capacitors, coils and the like, and enables them to operate as an electronic system. Printed circuit boards consist of traces, or lines, of conductive material, such as copper, laminated on either a rigid or a flexible insulating base. | ||||||||||||
Segment data: | ||||||||||||
The Company derives the results of its business segments directly from its internal management reporting system and by using certain allocation methods. The accounting policies the Company uses to derive business segment results are substantially the same as those the Company uses for consolidation of its financial statements. The CODM measures the performance of each business segment based on several metrics, including earnings from operations. CODM uses these results, in part, to evaluate the performance of, and to assign resources to, each of the business segments. The Company does not allocate to its reportable segments certain operating expenses, which it manages separately at the corporate level. | ||||||||||||
The Company does not allocate any assets to segments and, therefore, no amount of assets is reported to management and disclosed in the financial information for segments. Selected operating results information for each business segment was as follows for the year ended December 31, 2014, 2013 and 2012: | ||||||||||||
Year Ended December 31, | ||||||||||||
Revenues | Income (loss) from operations | |||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||
U.S. Dollars | U.S. Dollars | |||||||||||
PCB | 30,480 | 31,803 | 29,398 | (2,422 | ) | (1,588 | ) | * | ||||
Microelectronics | 57,833 | 53,602 | 55,149 | 9,922 | 5,605 | * | ||||||
Total | 88,313 | 85,405 | 84,547 | 7,500 | 4,017 | * | ||||||
* | It is impracticable to present 2012 income (loss) from operations by segment due to lack in internal management reporting system. | |||||||||||
The reconciliation of segment operating results information to the Company's consolidated financial information was as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | |||||||||||
U.S. Dollars | ||||||||||||
Income from operations | 7,500 | 4,017 | ||||||||||
Unallocated general and administrative expenses | 2,056 | 2,501 | ||||||||||
Share-based compensation expenses | 308 | 380 | ||||||||||
Financial expenses | 1,220 | 1,738 | ||||||||||
Consolidated income (loss) before taxes | 3,916 | -602 | ||||||||||
Substantially all fixed assets are located in Israel and substantially all revenues are derived from shipments to other countries. Revenues are attributable to geographic areas/countries based upon the destination of shipment of products and related services as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
U.S. Dollars | ||||||||||||
China and Hong Kong | 28,526 | 25,889 | 25,008 | |||||||||
Taiwan | 17,495 | 14,543 | 11,292 | |||||||||
United States | 12,518 | 11,705 | 9,482 | |||||||||
Asia- Other | 11,336 | 6,072 | 10,739 | |||||||||
Korea | 8,889 | 15,691 | 17,004 | |||||||||
Western Europe | 5,739 | 6,519 | 6,998 | |||||||||
Japan | 3,204 | 4,010 | 2,370 | |||||||||
Rest of the world | 606 | 976 | 1,654 | |||||||||
88,313 | 85,405 | 84,547 | ||||||||||
Selected_Income_Statement_Data
Selected Income Statement Data | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Selected Income Statement Data [Abstract] | |||||||||
Selected Income Statement Data | Note 18 - Selected Income Statement Data | ||||||||
A. Selling, general and administrative expenses | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
U.S. Dollars | |||||||||
Selling (1) | 14,337 | 13,906 | 13,827 | ||||||
General and administrative | 7,080 | 8,456 | 7,311 | ||||||
21,417 | 22,362 | 21,138 | |||||||
879 | 652 | 1,076 | |||||||
(1) | Including shipping and handling costs | ||||||||
B. Financial income (expenses), net | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
U.S. Dollars | |||||||||
Interest expense | -6 | -181 | -163 | ||||||
Interest income | 77 | 90 | 38 | ||||||
Re-evaluation of contingent consideration | -258 | -858 | 1,037 | ||||||
Re-evaluation expense on liabilities to the OCS | -370 | -504 | -667 | ||||||
Other, net (*) | -663 | -285 | -12 | ||||||
-1,220 | -1,738 | 233 | |||||||
(*) | Other, net includes foreign currency income (expense) resulting from transactions not denominated in U.S. Dollars amounting to $(546), $(188), and $84 in 2014, 2013 and 2012, respectively. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Taxes [Abstract] | |||||||||||||
Income Taxes | Note 19 - Income Taxes | ||||||||||||
A. Tax under various laws | |||||||||||||
The Company and its subsidiaries are assessed for tax purposes on a separate basis. Each of the subsidiaries is subject to the tax rules prevailing in the country of incorporation. | |||||||||||||
B. Details regarding the tax environment of the Israeli companies | |||||||||||||
(1) Corporate tax rate | |||||||||||||
Presented hereunder are the tax rates relevant to the Company in Israel for the years 2012-2014: | |||||||||||||
2012 – 25% | |||||||||||||
2013 – 25% | |||||||||||||
2014 – 26.5% | |||||||||||||
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, subject to the benefit under the Law for the Encouragement of Capital Investment. | |||||||||||||
(2) Benefits under the Law for the Encouragement of Capital Investments (hereinafter - “the Encouragement Law”) | |||||||||||||
(a)Beneficiary enterprise | |||||||||||||
An industrial enterprise of the Company and a certain subsidiary were granted “Beneficiary Enterprise” status in accordance with the Encouragement Law. The Company has chosen 2005 and 2010 as the years of election. | |||||||||||||
The income generated by the “Beneficiary Enterprise” is exempt from tax over a period of up to 10 years beginning with the year in which the Company first had taxable income and subject to the years of election (limited to the earlier of a maximum period of 12 years from the year of election). The tax benefit period of the beneficiary enterprise that commenced operations in 2005 and 2007 will end in 2014 and 2016, respectively, whereas the benefit period of the beneficiary enterprise that commenced operations in 2010 will end in 2021. The benefits are contingent upon compliance with the terms of the Encouragement Law, such provisions generally require that at least 25% of the Beneficiary Enterprise's income will derive from export. The Company is currently in compliance with these terms. | |||||||||||||
A company having a beneficiary enterprise that distributes a dividend from exempt income, will be required in the tax year of the dividend distribution to pay income tax on the amount of the dividend distributed at the tax rate that would have been applicable to it in the year the income was produced if it had not been exempt from tax. | |||||||||||||
(b) Amendment to the Law for the Encouragement of Capital Investments – 1959 | |||||||||||||
On December 29, 2010 the Knesset approved the Economic Policy Law for 2011-2012, which includes an amendment to the Law for the Encouragement of Capital Investments – 1959 (hereinafter – “the Amendment”). Companies could choose not to be included in the scope of the Amendment to the Encouragement Law and to stay in the scope of the law before its amendment until the end of the benefits period of its approved/beneficiary enterprise. The Company has decided not to be included in the scope of the Amendment in respect of its applicable benefit programs. | |||||||||||||
On August 5, 2013 the Knesset passed the Law for Changes in National Priorities (Legislative Amendments for Achieving Budget Objectives in the Years 2013 and 2014) – 2013, which determined that as of 2014 tax year the tax rate on preferred income will be 9% for Development Area A and 16% for the rest of the country. | |||||||||||||
(c) The Company intends to indefinitely reinvest the amount of its tax-exempt income and not distribute any amounts of its undistributed tax exempt income as dividend. Accordingly, no deferred tax liabilities have been provided on income attributable to the Company's Approved and Beneficiating Enterprise Programs. | |||||||||||||
Out of Camtek's retained earnings as of December 31, 2014 approximately $18,400 are tax-exempt earnings attributable to its Approved Enterprise and approximately $9,800 are tax-exempt earnings attributable to its Beneficiating Enterprise. The tax-exempt income attributable to the Approved and Beneficiating Enterprises cannot be distributed to shareholders without subjecting the Company to taxes. If these retained tax-exempt profits are distributed, the Company would be taxed at the reduced corporate tax rate applicable to such profits (currently - 25% pursuant to the implementation of the Investment Law). According to the Amendment, tax-exempt income generated under the Beneficiating Enterprise will be taxed upon dividend distribution or complete liquidation, whereas tax exempt income generated under the Approved Enterprise will be taxed only upon dividend distribution (but not upon complete liquidation, as the tax liability will be incurred by the shareholders). | |||||||||||||
As of December 31, 2014, if the income attributed to the Approved Enterprise was distributed as dividend, the Company would incur a tax liability of approximately $4,600. If income attributed to the Beneficiary Enterprise was distributed as dividend, or upon liquidation, the Company would incur a tax liability in the amount of approximately $2,450. These amounts will be recorded as an income tax expense in the period in which the Company declares the dividend. | |||||||||||||
C. Details regarding the tax environment of the Non Israeli companies | |||||||||||||
Non Israeli subsidiaries are taxed according to the tax laws in their countries of residence as reported in their statutory financial statement prepared under local accounting regulations. | |||||||||||||
The subsidiaries in China were entitled to 50% tax reduction from the standard tax rate of 25% for a period of time. The tax rate for both Chinese subsidiaries in 2011 was 12%-12.5%. The tax holidays ended in 2012 for Camtek Electronic Technology ("CET") and ended in 2013 for Camtek Imaging Technology ("CIT"). | |||||||||||||
As of December 31, 2014, Camtek has not provided for income taxes on the undistributed earnings of approximately $14,826 of two of its major foreign subsidiaries since these earnings are intended to be indefinitely reinvested. A deferred tax liability will be recognized when the Company no longer demonstrates that it plans to indefinitely reinvest these undistributed earnings. It is not practicable to estimate the amount of additional taxes that might be payable on such undistributed earnings. The Company's management has determined not to distribute any amounts of its undistributed income as a dividend if such distribution would result in a tax liability. | |||||||||||||
D. Composition of income (loss) before income taxes and income tax expense (benefit) | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
U.S. Dollars | |||||||||||||
Income (loss) before income taxes: | |||||||||||||
Israel | 2,975 | (2,638 | ) | (1,299 | ) | ||||||||
Non-Israeli | 941 | 2,036 | 1,512 | ||||||||||
3,916 | (602 | ) | 213 | ||||||||||
Income tax expense: | |||||||||||||
Current: | |||||||||||||
Israel | 191 | 121 | 44 | ||||||||||
Non-Israeli | 224 | 709 | 398 | ||||||||||
415 | 830 | 442 | |||||||||||
Deferred tax expense (benefit): | |||||||||||||
Israel | 38 | (1,287 | ) | - | |||||||||
Non-Israeli | 126 | (152 | ) | (232 | ) | ||||||||
164 | (1,439 | ) | (232 | ) | |||||||||
579 | (609 | ) | 210 | ||||||||||
E. Reconciliation of statutory tax expense to actual income tax | |||||||||||||
The following is a reconciliation of the theoretical income tax expense, assuming all income is taxed at the statutory tax rate applicable to Israeli companies, and the actual income tax expense: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
U.S. Dollars | |||||||||||||
Income (loss) before income taxes | 3,916 | -602 | 213 | ||||||||||
Statutory tax rate | 26.50% | 25% | 25% | ||||||||||
Theoretical income tax expense (benefit) | 1,038 | -151 | 53 | ||||||||||
Increase (decrease) in income tax expense resulting from: | |||||||||||||
Tax expense (benefits) arising from “Approved and | |||||||||||||
Beneficiating Enterprises” and preferential tax rate in China | (1,215 | ) | 711 | 492 | |||||||||
Change in valuation allowance(*) | (40 | ) | 586 | -983 | |||||||||
Non-deductible expenses(**) | 55 | 218 | 650 | ||||||||||
Differences between Israeli currency | |||||||||||||
and dollar-adjusted financial statements-net | 952 | -1,133 | 160 | ||||||||||
Purchase price adjustment for contingent liabilities | - | -580 | - | ||||||||||
Foreign tax rate differential | (13 | ) | -101 | 29 | |||||||||
Other | (198 | ) | -159 | -191 | |||||||||
Actual income tax expense (benefit) | 579 | -609 | 210 | ||||||||||
Per share effect of the tax benefits arising from | |||||||||||||
“Approved and Beneficiating Enterprises” and | |||||||||||||
preferential tax rate in China: | |||||||||||||
Basic | $ | (0.04 | ) | $ | 0 | $ | 0.02 | ||||||
Diluted | $ | (0.04 | ) | $ | 0 | $ | 0.02 | ||||||
(*) | In 2014 an amount of $616 is a decrease in valuation allowance in respect to expiration of tax losses and revaluation of the valuation allowance. In addition, Included within the change in valuation allowance are realized benefits of operating loss carryforwards of $42, $68 and $635, for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||
(**) | Including non-deductible share based compensation. | ||||||||||||
F. Deferred tax assets and liabilities | |||||||||||||
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
U.S. Dollars | |||||||||||||
Deferred tax assets: | |||||||||||||
Allowance for doubtful accounts | 136 | 96 | |||||||||||
Accrued warranty | 114 | 109 | |||||||||||
Unearned revenue | 125 | 151 | |||||||||||
Accrued expenses | 448 | 303 | |||||||||||
Net operating losses (NOL) and tax credit carryforwards | 3,761 | 4,398 | |||||||||||
Other temporary differences* | 334 | 663 | |||||||||||
Total gross deferred tax assets | 4,918 | 5,720 | |||||||||||
Valuation allowance | -2,953 | (3,609 | ) | ||||||||||
Deferred tax asset, net of valuation allowance | 1,965 | 2,111 | |||||||||||
Deferred tax liability: | |||||||||||||
Property, plant and equipment | -216 | (198 | ) | ||||||||||
Net deferred tax assets | 1,749 | 1,913 | |||||||||||
* | Other temporary differences primarily relate to research and development expenses | ||||||||||||
Deferred tax assets are to be recognized for the anticipated tax benefits associated with net operating loss carryforwards and deductible temporary differences, unless it is more likely than not that some or all of the deferred tax assets will not be realized. The adjustment is made by a valuation allowance. | |||||||||||||
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. | |||||||||||||
At December 31, 2014 and 2013 the Company had valuation allowance of $2,953 and $3,609 on certain of deferred tax assets. The net change in the total valuation allowance was a decrease of $656, $1,532 and $983 for the years ended December 31, 2014, 2013 and 2012, respectively. 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. | |||||||||||||
As of December 31, 2014, the Company and its subsidiaries in Israel have regular NOL carryforwards aggregating approximately $58,894 that will not expire. | |||||||||||||
As of December 31, 2014, the major foreign subsidiaries have NOL carryforwards aggregating approximately $1,569, of which approximately $550 can be utilized up to 20 years from the year it was established and approximately $1,009 can be carried forward indefinitely. | |||||||||||||
G. Accounting for uncertainty in income taxes | |||||||||||||
For the years ended December 31, 2014, 2013 and 2012, the Company did not have any significant unrecognized tax benefits. In addition, the Company does not expect that the amount of unrecognized tax benefits will change significantly within the next twelve months. | |||||||||||||
The Company accounts for interest and penalties related to an underpayment of income taxes as a component of income tax expense. For the years ended December 31, 2014, 2013 and 2012, no interest and penalties related to income taxes have been accrued. | |||||||||||||
H. Tax assessments | |||||||||||||
The Company and its subsidiaries in Israel file their income tax returns in Israel while its principle foreign subsidiaries file their income tax returns in Belgium, Hong Kong, United States of America and China. The Israeli tax returns of Camtek are open to examination by the Israeli Tax Authorities for the tax years beginning in 2009, in addition, the Israeli tax returns of SELA are open to examination by the Israeli Tax Authorities for the tax years beginning in 2009, while the tax returns of its principal foreign subsidiaries remain subject to examination for the tax years beginning in 1999 in Belgium, 2007 in Hong Kong and 2010 in the United States of America. | |||||||||||||
Balances_and_Transactions_with
Balances and Transactions with Related Parties | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Balances and Transactions with Related Parties [Abstract] | ||||||
Balances and Transactions with Related Parties | Note 20 - Balances and Transactions with Related Parties | |||||
A. Balances with related parties: | ||||||
December 31, | December 31, | |||||
2014 | 2014 | |||||
U.S. Dollars | ||||||
Accounts receivable | 101 | 43 | ||||
Accounts payable | - | 6 | ||||
Due from affiliated companies | 501 | 233 | ||||
B. Transactions with related parties: | ||||||
Year Ended December 31, | ||||||
2014 | 2013 | 2012 | ||||
U.S. Dollars | ||||||
Purchases from Parent and affiliates | 93 | 57 | - | |||
Interest income from Parent | 24 | 4 | 15 | |||
Sales to Parent and affiliated companies | 297 | 347 | 142 | |||
Unpaid balances between Parent and its subsidiaries in Israel and the Company bear interest of 5.5%. | ||||||
Registration Rights Agreement with Parent | ||||||
On March 1, 2004, the Company entered into a registration rights agreement providing for the Company to register with the SEC certain of its ordinary shares held by Parent. This registration rights agreement may be used in connection with future offerings of ordinary shares, and includes, among others, the following terms: (a) Parent is entitled to make up to three demands that the Company registers its ordinary shares held by Parent, subject to delay due to market conditions; (b) Parent will be entitled to participate and sell the Company's ordinary shares in any future registration statements initiated by the Company, subject to delay due to market conditions; (c) the Company will indemnify Parent in connection with any liabilities incurred in connection with such registration statements due to any misstatements or omissions other than information provided by Parent, and Parent will indemnify the Company in connection with any liabilities incurred in connection with such registration statements due to any misstatements or omissions in written statements by Parent made for the purpose of their inclusion in such registration statements; and (d) the Company will pay all expenses related to registrations which the Company has initiated, except for certain underwriting discounts or commissions or legal fees, and Parent will pay all expenses related to a registration initiated at its demand in which the Company is not participating. | ||||||
On December 30, 2004, the Registration Rights Agreement with Parent was amended. The amendment concerns primarily the grant of unlimited shelf registration rights thereunder to Parent with respect to its holdings in the Company, and the assignability of those shelf registration rights to its transferees. | ||||||
Employment Agreements with the Active Chairman | ||||||
Pursuant to employment agreement with the Active Chairman of the Board of Directors and Chief Executive Officer ("Active Chairman") dedicates 25% of his time in providing consulting and management services for Parent through Amitec – Advanced Multilayer Interconnect Technologies Ltd. – a wholly owned subsidiary of the Parent ("Amitec"). The Active Chairman receives from the Company 75% of a full time salary and is compensated directly by Amitec for the remaining 25% of his time. | ||||||
The Active Chairman of the Board of Directors serves as the Chairman of Parent, and does not receive any additional compensation for his service as the Company's Active Chairman. | ||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Fair Value Measurements [Abstract] | ||||||||
Fair Value Measurements | Note 21 - Fair Value Measurements | |||||||
The level in the fair value hierarchy within which an asset or liability is classified is based on the lowest level input that is significant to the fair value measurement in its entirety. | ||||||||
The Company measures its foreign currency derivative contracts and its long-term liabilities with respect to contingent consideration at fair value. The Company's foreign currency derivative contracts are classified within Level 2, because they are valued utilizing market observable inputs. The long-term liabilities arising from contingent consideration are classified within Level 3 because they are valued using significant inputs that are unobservable in the market such as the Company's weighted average cost of capital. | ||||||||
The following table presents the Company's assets and liabilities measured at fair value on a recurring basis as of December 31, 2014 and December 31, 2013, aggregated by the level in the fair-value hierarchy within which those measurements fall: | ||||||||
Quoted Prices in | Significant | |||||||
Active Markets for | Significant Other | Unobservable | ||||||
December 31, | Identical Assets | Observable Inputs | Inputs | |||||
Description | 2014 | (Level 1) | (Level 2) | (Level 3) | ||||
U.S. Dollars | ||||||||
Liabilities | ||||||||
Foreign currency | ||||||||
derivative contracts | 89 | - | 89 | - | ||||
Contingent consideration | 1,900 | - | - | 1,900 | ||||
Total Liabilities | 1,989 | - | 89 | 1,900 | ||||
Quoted Prices in | Significant | |||||||
Active Markets for | Significant Other | Unobservable | ||||||
December 31, | Identical Assets | Observable Inputs | Inputs | |||||
Description | 2013 | (Level 1) | (Level 2) | (Level 3) | ||||
U.S. Dollars | ||||||||
Assets | ||||||||
Foreign currency | ||||||||
derivative contracts | 7 | - | 7 | - | ||||
Total Assets | 7 | - | 7 | - | ||||
Liabilities | ||||||||
Contingent consideration | 2,030 | - | - | 2,030 | ||||
Total Liabilities | 2,030 | - | - | 2,030 | ||||
The Company's accounting policy is to recognize transfers between levels of the fair value hierarchy on the date of the event or change in circumstances that caused the transfer. There were no transfers into or out of level 1, level 2, or level 3 for the years ended December 31, 2014 and 2013. | ||||||||
The following tables present a roll-forward of the fair value of Level 3 (significant unobservable inputs) liabilities for the year ended December 31, 2014 and 2013: | ||||||||
Level 3 | ||||||||
U.S. Dollars | ||||||||
Contingent | ||||||||
consideration | ||||||||
31-Dec-13 | 2,030 | |||||||
Settlement of liabilities | (268 | ) | ||||||
Revaluation of fair value included in statement of operations | 138 | |||||||
31-Dec-14 | 1,900 | |||||||
Level 3 | ||||||||
U.S. Dollars | ||||||||
Contingent | ||||||||
consideration | ||||||||
31-Dec-12 | 5,303 | |||||||
Settlement of liabilities | (639 | ) | ||||||
Revaluation of fair value included in statement of operations | (2,634 | ) | ||||||
31-Dec-13 | 2,030 | |||||||
The adjustments to fair value of the contingent consideration are recorded in the finance income (expense), net in the statement of operations. | ||||||||
The fair value of the contingent payment for Printar as of December 31, 2014, was based on the $2,000 outstanding of the $2,500 transaction price, discounted from the estimated payment dates to the valuation date using the weighted average cost of capital of 28%. That measure is based on significant inputs that are not observable in the market, which ASC Section 820-10-35 refers to as Level 3 inputs. Key assumptions include management's estimation about future sales. | ||||||||
The fair value of the contingent consideration arrangement for SELA as of December 31, 2014, was estimated based on future earn-out payments discounted to the valuation date using the weighted average cost of capital of 21%. That measure is based on significant inputs that are not observable in the market, which ASC Section 820-10-35 refers to as Level 3 inputs. Key assumptions include management's estimation about future sales. | ||||||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 22 - Subsequent Events |
A.See Note 13C(1) regarding the court's ruling subsequent to balance sheet date and its expected effect on the Company's resources and expected cash flows. | |
B.In connection with the issuance of the appeal bond, in March 2015 the Company signed an agreement with Bank Mizrahi, according to which the bank provided a bank guarantee in the amount of $15,750 in order to support the appeal bond, which was issued by a surety company in the United States. The Company's obligations to the bank are secured by a lien on its facility in Israel, restricted deposits in the amount of approximately $7,875 and a floating charge on its assets. In addition, the Company signed a covenant agreement with the bank which requires it to comply with certain financial | |
C.On March 12, 2015, Rudolph filed a new lawsuit against the Company. See Note 13C (3). | |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Significant Accounting Policies [Abstract] | |||
Basis of preparation of the financial statements | A. Basis of preparation of the financial statements | ||
The consolidated financial statements of Camtek and its subsidiaries (collectively “the Company”) have been prepared in accordance with accounting principles generally accepted in United States of America (“US GAAP”). All amounts in the notes to the financial statements are in thousands unless otherwise stated. | |||
Principles of consolidation | B. Principles of consolidation | ||
The accompanying consolidated financial statements include the accounts of Camtek and its subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation. | |||
Use of estimates | C. Use of estimates | ||
The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. As applicable to these financial statements, the most significant estimates and assumptions relate to revenue recognition, valuation of accounts receivable, inventories, goodwill, deferred tax assets, legal contingencies, contingent consideration and share based compensation among others. These estimates and assumptions are based on management's best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. It is often difficult to accurately estimate the ultimate outcome of a contingent liability. Different variables can affect the timing and amount that management provides for certain contingent liabilities. The Company's assessments are therefore subject to estimates made by management and its legal counsel. Adverse revision in management estimates of the potential liability could materially impact the Company's financial condition, results of operations or liquidity. | |||
The Company adjusts such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. | |||
Foreign currency transactions | D. Foreign currency transactions | ||
The functional currency of the Company and its subsidiaries is the U.S. Dollar. Revenue generated by the Company and its subsidiaries is primarily generated outside of Israel and a majority thereof is received in U.S. Dollars. A significant portion of materials and components purchased and operating expenses incurred are either paid for in U.S. Dollars or in New Israeli Shekels (“NIS”). | |||
Transactions not denominated in U.S. Dollars are recorded upon their initial recognition according to the exchange rate in effect on the date of the transaction. Exchange rate differences arising upon the settlement of monetary items or upon reporting the Company's monetary items at exchange rates different from that by which they were initially recorded during the period, or reported in previous financial statements, are charged to financial income (expenses), net. | |||
Cash and cash equivalents | E. Cash and cash equivalents | ||
All highly liquid investments purchased with original maturities of three months or less are considered to be cash equivalents. | |||
Trade accounts receivable and allowance for doubtful accounts | F. Trade accounts receivable and allowance for doubtful accounts | ||
Accounts receivable are recorded at the outstanding recognized amount and do not bear interest. The allowance for doubtful accounts represents Management's best estimate of the probable loss inherent in existing accounts receivable balances as a result of possible non-collection. In determining the appropriate allowance, Management bases its estimate on information available about specific debtors, including aging of the balance, assessment of the underlying security received, the history of write-offs, relationships with the customers and the overall creditworthiness of the customers. | |||
Inventories | G. Inventories | ||
Inventories consist of completed systems, partially completed systems and components and other raw materials, and are recorded at the lower of cost or market. Cost is determined by the moving – average cost method basis. | |||
Inventory write-downs are recorded at the end of each fiscal period for damaged, obsolete, excess and slow-moving inventory. These write-downs, to the lower of cost or market value, create a new cost basis that is not subsequently marked up based on changes in underlying facts and circumstances. | |||
Management periodically evaluates its inventory composition, giving consideration to factors such as the probability and timing of anticipated usage and the physical condition of the items, and then estimates a charge (reducing the inventory) to be provided for slow moving, technological obsolete or damaged inventory. These estimates could vary significantly, from actual requirements based upon future economic conditions, customer inventory levels or competitive factors that were not foreseen or did not exist when the inventory write-downs were established. | |||
Inventory that is not expected to be converted or consumed within the next year is classified as non-current, based on Management's estimates taking into account market conditions. | |||
Property, plant and equipment | H. Property, plant and equipment | ||
These assets are stated at cost less accumulated depreciation, and are depreciated over their estimated useful lives on a straight-line basis. | |||
Annual rates of depreciation are as follows: | |||
Land | 1% | ||
Building | 2% | ||
Machinery and equipment | 10% - 33% | ||
Computer equipment and software | 20%-33% | ||
Office furniture and equipment | 6% - 20% | ||
Automobiles | 15% | ||
Leasehold improvements are amortized by the straight-line method over the shorter of the lease term or the estimated useful economic life of such improvements. | |||
Certain of the Company's finished goods are systems used as demonstration systems, training systems, and for product development in the Company's laboratories (“internal use”). These systems are identical to the systems that Camtek sells in its ordinary course of business. In circumstances where the Company intends to utilize such systems for its internal use, the Company transfers them from inventory to fixed assets. The rationale for the transfer is that the Company does not have the intention to sell these systems in the ordinary course of business but rather expects to use them for its internal use over their expected useful lives. These systems are recorded as fixed assets at cost and depreciated over their useful lives. | |||
Intangible assets | I. Intangible assets | ||
Patent registration costs are recorded at cost and amortized, beginning with the first year of utilization, over its expected useful life. | |||
Intangible assets purchased as part of the business combinations were recorded at their fair value and are amortized based on their remaining estimated useful lives. Acquired in-process research and development (IPR&D) will be amortized starting at the initial date of recording revenues from the associated technology. | |||
Goodwill | J. Goodwill | ||
Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Goodwill is reviewed for impairment at least annually in accordance with the provisions of FASB ASC Topic 350, Intangibles - Goodwill and Other. The goodwill impairment test is a two step test. Under step one, the fair value of the reporting unit is compared with its carrying value (including goodwill). If the fair value of the reporting unit is less than its carrying value, 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 an acquisition 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 value, step two does not need to be performed. | |||
The Company has set its annual impairment testing date at December 31. As of December 31, 2014, based on the Company's annual impairment test, no impairment charge was recognized. As of December 31, 2013, based on the Company's annual impairment test, impairment charges were recognized. (See Note 9). | |||
Impairment of long-lived assets | K. Impairment of long-lived assets | ||
The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to undiscounted future cash flows expected to be generated by the asset. If the carrying amount of the long lived asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized to the extent that the asset's carrying amount exceeds its fair value (See Note 9). | |||
Fair values of financial instruments | L. Fair values of financial instruments | ||
The carrying amounts of the Company's financial instruments, including cash and cash equivalents, short-term deposits, trade accounts receivable, trade accounts payable, and amounts from affiliates approximate fair value because of their short-term nature. | |||
The fair value of the long-term restricted deposit approximates the carrying amount, since it bears floating rate interest at the market rate. | |||
The contingent consideration liabilities relating to the Company's business combinations are measured at fair value at each balance sheet date. | |||
Revenue recognition | M. Revenue recognition | ||
The Company recognizes revenue from sales of its products when the products are installed at the customer's premises and are operating in accordance with its specifications, signed documentation of the arrangement, such as a signed contract or purchase order, has been received, the price is fixed or determinable and collectibility is reasonably assured. | |||
In the limited circumstances when the products are installed by a trained distributor acting as an end user, revenue is recognized upon delivery to the distributor assuming all other criteria for revenue recognition are met. | |||
Service revenues consist mainly of revenues from maintenance contracts and are recognized ratably over the contract period. | |||
The Company implements the provisions of ASU 2009-13, Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements, and therefore for multiple-element arrangements the overall arrangement fee is allocated to each element (both delivered and undelivered elements) based on management's best estimate of their selling price where other sources of evidence are unavailable. The revenue relating to the undelivered elements is deferred using the relative selling price method utilizing vendor-specific-objective evidence (“VSOE”) until delivery of the deferred elements. | |||
The Company's multiple deliverable arrangements consist of product sales and non-standard warranties. A non-standard warranty is one that is for a period longer than 12 months. Accordingly, income from a non-standard warranty is deferred as unearned revenue and is recognized ratably as revenue commencing with and over the applicable warranty term. | |||
The Company routinely evaluates its products for inclusion of any embedded software that is more than incidental thereby requiring consideration of ASC Subtopic 985-605, “Software Revenue Recognition”. Based on such evaluation, the Company has concluded that none of its products have such embedded software. | |||
Warranty | N. Warranty | ||
The Company records a liability for standard product warranty obligations at the time of sale based upon historical warranty experience. The term of the warranty is generally twelve months. | |||
For the Company's treatment of non-standard warranties, see Note 2(M) – Revenue recognition. | |||
Income taxes | O. Income taxes | ||
The Company accounts for income taxes in accordance with the asset and liability method whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company provides a valuation allowance to reduce deferred tax assets to the amount that is more likely than not to be realized. | |||
The Company recognizes the effect of uncertain income tax positions only if those positions are more likely than not of being sustained. Recognized uncertain income tax positions are measured at the largest amount that is more than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. | |||
Deferred tax liabilities and assets are classified as current or non-current based on the classification of the related asset or liability for financial reporting or, if not related to an asset or liability for financial reporting, according to the expected reversal dates of the specific temporary differences. | |||
Research and development | P. Research and development | ||
Research and development costs are expensed as incurred. | |||
Earnings / loss per ordinary share | Q. Earnings / loss per ordinary share | ||
Basic earnings/loss per ordinary share is calculated using only weighted average ordinary shares outstanding. Diluted earnings per share, if relevant, gives effect to dilutive potential ordinary shares outstanding during the year. Such dilutive shares consist of incremental shares, using the treasury stock method, from the assumed exercise of share options, warrants and convertible loan. | |||
For the years ended December 31, 2014, 2013 and 2012, the effect of the exercise of outstanding dilutive potential share options and Restricted Share Units ("RSUs") has been included in computing dilutive earnings per ordinary share (see Note 16). | |||
Share-based compensation | R. Share-based compensation | ||
The Company accounts for its employee share-based compensation as an expense in the financial statements. All awards are equity classified and therefore such cost is measured at the grant date fair value of the award. The Company estimates share option grant date fair value using the Black-Scholes-Merton option-pricing model. (For details see Note 15). | |||
Fair value measurements | S. Fair value measurements | ||
The Company implements the provisions of ASC Topic 820 "Fair Value Measurements and Disclosures" ("ASC 820"). ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: | |||
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. | |||
Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. | |||
Level 3 inputs are unobservable inputs for the asset or liability. (For details see Note 21). | |||
Derivative instruments | T. Derivative instruments | ||
The Company enters into option contracts and forward exchange agreements in order to reduce its exposure with respect to various commitments in currencies other than the dollar, in connection with expenses in New Israeli Shekels. | |||
The Company does not issue or hold derivative financial instruments for trading purposes, but rather to manage its foreign currency exposure. Nevertheless, these transactions do not meet all the conditions for hedge accounting and accordingly, the changes in fair value of such instruments are recorded directly to financial income (expenses), net. | |||
The Company's foreign exchange derivative contracts are marked-to-market based on the determined fair value of open contracts at period end. (See Note 14). | |||
Contingent liabilities | U. Contingent liabilities | ||
A contingency (provision) in accordance with ASC Topic 450-10-05, Contingencies, is an existing condition or situation involving uncertainty as to the range of possible loss to the entity. | |||
A provision for claims is recognized if it is probable (likely to occur) that a liability has been incurred and the amount can be estimated reasonably. | |||
Government-sponsored research and development | V. Government-sponsored research and development | ||
The Company records grants received from the Office of the Chief Scientist of the Israeli Ministry of Industry and Trade (the “OCS”) as a liability, if it is probable that the Company will have to repay the grants received. If it is not probable that the grants will be repaid, the Company records the grants as a reduction to research and development expenses. Royalties paid to the OCS are recognized as a reduction of the above-mentioned liability. | |||
The Company accounts for OCS liabilities acquired in business combinations within the confines of debt obligations and as such changes in the liability from period to period, caused by changes to the estimated timing of future repayments and accrued interest, are accounted for prospectively and recorded as financial expenses (income). (See Note 12 and Note 13F). | |||
Recently issued and adopted accounting standards | W. Recently issued and adopted 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. The Company implemented the provisions of ASU 2013-11 as of January 1, 2014. | |||
In April 2014, the FASB issued ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. ASU 2014-08 change the requirements for reporting discontinued operations. This ASU limits discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have a major effect on an entity's operations and financial results. The Company elected to early adopt this ASU as of January 1, 2014. Accordingly, further to that mentioned in Note 1B, Sela division is not presented as a discontinued operation. | |||
New standards not yet adopted | X. New standards not yet adopted | ||
In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers." ASU 2014-09 is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for annual reporting periods, and interim periods within that period, beginning after December 15, 2016 and early adoption is not permitted. Companies may use either a full retrospective or a modified retrospective approach to adopt ASU 2014-09. The Company has not yet determined the potential effects of the adoption of ASU 2014-09 on its Consolidated Financial Statements. |
Nature_of_Operations_Tables
Nature of Operations (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Nature of Operations [Abstract] | ||||||||||||
Schedule of Details of Impairment | Year ended | Year ended | ||||||||||
December 31, | December 31, | |||||||||||
2014 | 2013 | |||||||||||
U.S. Dollars | U.S. Dollars | |||||||||||
Account | Nature of impact | (in thousands) | (in thousands) | |||||||||
Cost of Revenues | Inventory write-off | 205 | 3,052 | |||||||||
Reorganization and | Impairment charge with respect | |||||||||||
impairment | of technology, customer | |||||||||||
relationships and goodwill | - | 1,656 | ||||||||||
Reorganization and | Revaluation of liabilities in | |||||||||||
impairment | respect of SELA acquisition | (106 | ) | (5,122 | ) | |||||||
Reorganization and | Other | |||||||||||
impairment | 166 | 854 | ||||||||||
265 | 440 |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Significant Accounting Policies [Abstract] | |||
Annual Rates of Depreciation | Land | 1% | |
Building | 2% | ||
Machinery and equipment | 10% - 33% | ||
Computer equipment and software | 20%-33% | ||
Office furniture and equipment | 6% - 20% | ||
Automobiles | 15% |
Cash_and_Cash_Equivalents_Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Cash and Cash Equivalents [Abstract] | |||||||
Cash and Cash Equivalents | December 31, | ||||||
2014 | 2013 | ||||||
U.S. Dollars | |||||||
Bank balances | 18,130 | 16,405 | |||||
Restricted cash | 90 | 90 | |||||
18,220 | 16,495 | ||||||
Cash and Cash Equivalents, Currencies | December 31, | ||||||
2014 | 2013 | ||||||
U.S. Dollars | |||||||
US Dollars | 9,576 | 11,015 | |||||
New Israeli Shekels | 2,569 | 1,208 | |||||
Euro | 2,033 | 1,936 | |||||
Japanese YEN | 1,825 | 489 | |||||
Chinese RMB | 1,541 | 1,101 | |||||
Other currencies | 676 | 746 | |||||
18,220 | 16,495 |
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Inventories [Abstract] | |||||||
Inventories | December 31, | ||||||
2014 | 2013 | ||||||
U.S. Dollars | |||||||
Components | 10,929 | 11,115 | |||||
Work in process | 5,575 | 3,795 | |||||
Finished products * | 9,622 | 5,226 | |||||
26,126 | 20,136 | ||||||
* | including systems at customer locations not yet sold, as of December 31, 2014 and 2013, in the amount of $4,532 and $2,287 respectively. | ||||||
Inventories are presented in: | |||||||
December 31, | |||||||
2014 | 2013 | ||||||
U.S. Dollars | |||||||
Current assets | 24,650 | 17,911 | |||||
Long-term assets (A) | 1,476 | 2,225 | |||||
26,126 | 20,136 | ||||||
(A) | Long-term Inventory: | ||||||
At December 31, 2014, $1,476 of the Company's inventory is classified in long-term assets based on Management's estimate and the recent level of sales (at December 31, 2013- $2,225). Of this amount, $1,401 is comprised of spare parts (at December 31, 2013 - $1,353). The Company's policy is to keep components to provide support and service to systems sold by it to its customers over the past years (usually the support is over a period of seven to ten years) until the Company announces it will not continue to support certain systems. Therefore, this inventory is usually consumed over longer periods than inventory held for sale, and as such the respective amount that is not expected to be consumed in the next year is classified as non-current. Management believes that this amount will be utilized according to its forecasted sales. Management believes no loss will be incurred on its disposition. The remaining portion of long-term inventory consists of Functional InkJet Technology (“FIT") components and systems which in Management's estimation will not be sold during the next 12 months. Management believes that according to its forecasted sales this amount will mainly be utilized in 2016. Management believes no loss will be incurred on its disposition. | |||||||
Other_Current_Assets_Tables
Other Current Assets (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Other Current Assets [Abstract] | |||||||
Other Current Assets | December 31, | December 31, | |||||
2014 | 2013 | ||||||
U.S. Dollars | |||||||
Due from Government institutions | 1,013 | 424 | |||||
Prepaid expenses | 584 | 454 | |||||
Advances to suppliers | 361 | 290 | |||||
Deposits for operating leases | 113 | 69 | |||||
Other | 311 | 676 | |||||
2,382 | 1,913 |
Property_Plant_and_Equipment_N1
Property, Plant and Equipment, Net (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Property, Plant and Equipment, Net [Abstract] | |||||||
Schedule of Property, Plant and Equipment, Net | December 31, | ||||||
2014 | 2013 | ||||||
U.S. Dollars | |||||||
Cost: | |||||||
Land | 863 | 863 | |||||
Building | 10,286 | 10,245 | |||||
Machinery and equipment | 5,943 | 6,504 | |||||
Office furniture and equipment | 1,202 | 1,202 | |||||
Computer equipment and software | 4,602 | 4,566 | |||||
Automobiles | 65 | 65 | |||||
Leasehold improvements | 1,057 | 1,048 | |||||
24,018 | 24,493 | ||||||
Less accumulated depreciation | 10,993 | 10,012 | |||||
13,025 | 14,481 |
Other_Assets_Tables
Other Assets (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Other Assets [Abstract] | |||||||
Other Assets | December 31, | ||||||
2014 | 2013 | ||||||
U.S. Dollars | |||||||
Deposits for operating leases | 348 | 339 |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Goodwill and Intangible Assets, Net [Abstract] | |||||||
Goodwill | December 31, | ||||||
2014 | 2013 | ||||||
U.S. Dollars | |||||||
Goodwill | 3,653 | 3,653 | |||||
Accumulated impairment losses | (2,098 | ) | (2,098 | ) | |||
1,555 | 1,555 | ||||||
Intangible Assets, Net | December 31, | ||||||
2014 | 2013 | ||||||
U.S. Dollars | |||||||
Patent registration costs | 1,959 | 1,805 | |||||
IPR&D | 1,002 | 1,002 | |||||
Technology | 2,854 | 2,854 | |||||
Customer relationships | 45 | 45 | |||||
Intangible assets at cost | 5,860 | 5,706 | |||||
Accumulated amortization and impairment | 4,932 | 4,698 | |||||
Total intangible asset, net | 928 | 1,008 | |||||
Estimated Amortization Expense | Year ending December 31, | U.S. Dollars | |||||
2015 | 176 | ||||||
2016 | 138 | ||||||
2017 | 138 | ||||||
2018 | 138 | ||||||
2019 | 126 | ||||||
716 | |||||||
Other_Current_Liabilities_Tabl
Other Current Liabilities (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Other Current Liabilities [Abstract] | |||||||||||||
Schedule of Other Current Liabilities | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
U.S. Dollars | |||||||||||||
Accrued employee compensation and related benefits | 6,306 | 6,546 | |||||||||||
Accrued expenses | 2,146 | 2,291 | |||||||||||
Commissions | 2,048 | 2,040 | |||||||||||
Current maturities of contingent consideration (1) | 1,900 | 268 | |||||||||||
Advances from customers and deferred revenues | 1,416 | 1,985 | |||||||||||
Accrued warranty costs (2) | 1,151 | 1,304 | |||||||||||
Government institutions | 1,084 | 992 | |||||||||||
Current maturities of OCS liability (1) | 228 | 159 | |||||||||||
16,279 | 15,585 | ||||||||||||
-1 | See also Note 12 – Other long-term liabilities | ||||||||||||
-2 | Changes in the accrued warranty costs are as follows: | ||||||||||||
Changes In Product Warranty Obligation | Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
U.S. Dollars | |||||||||||||
Beginning of year | 1,304 | 1,150 | 1,637 | ||||||||||
New warranties | 2,152 | 2,327 | 2,159 | ||||||||||
Reductions | (2,305 | ) | (2,173 | ) | (2,646 | ) | |||||||
Balance at end of year | 1,151 | 1,304 | 1,150 |
Other_LongTerm_Liabilities_Tab
Other Long-Term Liabilities (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Other Long-Term Liabilities [Abstract] | ||||
Schedule of Other Long-Term Liabilities | December 31, | |||
2014 | 2013 | |||
U.S. Dollars | ||||
Liability for contingent consideration in respect of | ||||
business combinations (1) | - | 1,762 | ||
Liability to OCS, mainly in respect of business combinations (2) | 4,150 | 3,996 | ||
4,150 | 5,758 | |||
-1 | In accordance with ASC Topic 820 (Statement 157), the Company's liabilities for contingent consideration in respect of the acquisitions of Printar and SELA (see Note 21) are measured at fair value using Level 3 inputs. See Note 1B for the effect of the Company's decision regarding SELA's future operations. | |||
-2 | Liability to OCS is in respect of the acquisitions of Printar, SELA and new grants received in 2010 and 2009. See Note 1B for the effect of the Company's decision regarding SELA's future operations. | |||
The effective interest rate used in the capitalization of the liabilities to the OCS in respect of the acquisitions of Printar and SELA as of December 31, 2014 were 11% and 21%, respectively. (As of December 31, 2013, 10% and 21%, for Printar and SELA, respectively). | ||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Commitments and Contingencies [Abstract] | |||||||||||||||||
Minimum Future Rental Payments | |||||||||||||||||
Year Ending | U.S. Dollars | ||||||||||||||||
December 31, | |||||||||||||||||
2015 | 1,558 | ||||||||||||||||
2016 | 946 | ||||||||||||||||
2017 | 287 | ||||||||||||||||
Thereafter | - | ||||||||||||||||
2,791 | |||||||||||||||||
Allowance for Doubtful Accounts | Balance at | Balance at | |||||||||||||||
beginning | Reversal of | Write-off of | end of | ||||||||||||||
of period | Provision | provision | provision | period | |||||||||||||
U.S. Dollars | |||||||||||||||||
2012 | 2,227 | 307 | -140 | -1,071 | 1,323 | ||||||||||||
2013 | 1,323 | 272 | -218 | -16 | 1,361 | ||||||||||||
2014 | 1,361 | 344 | -164 | -15 | 1,526 | ||||||||||||
Concentration_of_Risk_and_Fina1
Concentration of Risk and Financial Instruments (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Concentration of Risk and Financial Instruments [Abstract] | |||||||||
Derivative Instruments | Notional amount | Fair value | |||||||
U.S. Dollars | |||||||||
Options | |||||||||
Buy put options (Buy dollars and Sell NIS) | 4,250 | 13 | |||||||
Sell call options (Sell dollars and Buy NIS) | 4,250 | -102 |
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Shareholders' Equity [Abstract] | ||||||||||||||||||||
Fair Value Assumptions | 2014 Grant | 2013 Grant | ||||||||||||||||||
Valuation assumptions: | ||||||||||||||||||||
Dividend yield | 0 | 0 | ||||||||||||||||||
Expected volatility | 64%-71% | 64%-69% | ||||||||||||||||||
Risk-free interest rate | 1.67%-2.3% | 1.74% | ||||||||||||||||||
Expected life (years) | 4.8-6.4 | 6.4 | ||||||||||||||||||
Vesting period (years) | 4 | 4 | ||||||||||||||||||
Stock Option Activity | ||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Weighted | Weighted | Weighted | ||||||||||||||||||
Number | average | Number | average | Number | average | |||||||||||||||
of | exercise | of | exercise | of | exercise | |||||||||||||||
options | price US$ | options | price US$ | options | price US$ | |||||||||||||||
Outstanding at January 1 | 735,519 | 2.99 | 1,195,085 | 3.15 | 1,234,199 | 3.31 | ||||||||||||||
Granted | 296,000 | 3.53 | 75,000 | 1.73 | 134,010 | 1.6 | ||||||||||||||
Forfeited and cancelled | (108,724 | ) | 2.47 | (174,915 | ) | 2.96 | (173,124 | ) | 3.11 | |||||||||||
Exercised | (88,996 | ) | 2.14 | (359,651 | ) | 3.26 | - | - | ||||||||||||
Outstanding at year end | 833,799 | 3.34 | 735,519 | 2.99 | 1,195,085 | 3.15 | ||||||||||||||
Vested at year end | 423,291 | 3.56 | 368,016 | 3.42 | 395,395 | 3.29 | ||||||||||||||
Weighted | Aggregate | |||||||||||||||||||
Number | Weighted | Average | intrinsic | |||||||||||||||||
of | average | Remaining | Value (in | |||||||||||||||||
options | exercise | Contractual | US$ | |||||||||||||||||
outstanding | price US$ | term (years) | thousands) | |||||||||||||||||
Outstanding as of December 31, 2014 | 833,799 | 3.34 | 0.73 | 205.66 | ||||||||||||||||
Vested and expected to vest at | ||||||||||||||||||||
31-Dec-14 | 800,958 | 3.34 | 0.73 | 189.2 | ||||||||||||||||
Exercisable at December 31, 2014 | 423,291 | 3.56 | 3 | 87.68 | ||||||||||||||||
Information about Share Options | ||||||||||||||||||||
Weighted | ||||||||||||||||||||
average | ||||||||||||||||||||
Number of | remaining | |||||||||||||||||||
outstanding | Number | contractual | ||||||||||||||||||
Exercise price US$ | options | exercisable | life in years | |||||||||||||||||
0-2 | 155,000 | 66,248 | 7.82 | |||||||||||||||||
5-Mar | 668,799 | 347,043 | 7.19 | |||||||||||||||||
7-Jun | 10,000 | 10,000 | 1.58 | |||||||||||||||||
833,799 | 423,291 | 7.24 | ||||||||||||||||||
Information about Nonvested Options | ||||||||||||||||||||
Weighted | ||||||||||||||||||||
average | ||||||||||||||||||||
grant- date | ||||||||||||||||||||
Options | fair value | |||||||||||||||||||
Balance at January 1, 2014 | 367,503 | 1.32 | ||||||||||||||||||
Granted | 296,000 | 1.82 | ||||||||||||||||||
Vested | (164,254 | ) | 1.88 | |||||||||||||||||
Forfeited | (88,741 | ) | 1.21 | |||||||||||||||||
Balance at December 31, 2014 | 410,508 | 1.48 | ||||||||||||||||||
Earnings_Per_Ordinary_Share_Ta
Earnings Per Ordinary Share (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Earnings Per Ordinary Share [Abstract] | ||||||
Computation of Basic and Diluted Earnings (Loss) Per Ordinary Share | Year Ended December 31, | |||||
2014 | 2013 | 2012 | ||||
U.S. Dollars (In thousands, except per share data) | ||||||
Net income attributable to Ordinary Shares | 3,337 | 7 | 3 | |||
Weighted average number of Ordinary Shares | ||||||
outstanding used in basic earnings per Ordinary | ||||||
Share calculation | 30,464 | 30,040 | 29,849 | |||
Add assumed exercise of outstanding dilutive | ||||||
potential Ordinary Shares | 81 | 54 | 164 | |||
Weighted average number of Ordinary Shares | ||||||
Outstanding used in diluted earnings per Ordinary | ||||||
Share calculation | 30,545 | 30,094 | 30,013 | |||
Basic income per Ordinary Share | 0.11 | 0 | 0 | |||
Diluted income per Ordinary Share | 0.11 | 0 | 0 | |||
Number of options excluded from the diluted | ||||||
earnings per share calculation due to their | ||||||
anti-dilutive effect | 391 | 526 | 976 | |||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Information [Abstract] | ||||||||||||
Summary of operating results information for each business segment | Year Ended December 31, | |||||||||||
Revenues | Income (loss) from operations | |||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||
U.S. Dollars | U.S. Dollars | |||||||||||
PCB | 30,480 | 31,803 | 29,398 | (2,422 | ) | (1,588 | ) | * | ||||
Microelectronics | 57,833 | 53,602 | 55,149 | 9,922 | 5,605 | * | ||||||
Total | 88,313 | 85,405 | 84,547 | 7,500 | 4,017 | * | ||||||
* | It is impracticable to present 2012 income (loss) from operations by segment due to lack in internal management reporting system. | |||||||||||
Summary of reconciliation of segment operating results | Year Ended December 31, | |||||||||||
2014 | 2013 | |||||||||||
U.S. Dollars | ||||||||||||
Income from operations | 7,500 | 4,017 | ||||||||||
Unallocated general and administrative expenses | 2,056 | 2,501 | ||||||||||
Share-based compensation expenses | 308 | 380 | ||||||||||
Financial expenses | 1,220 | 1,738 | ||||||||||
Consolidated income (loss) before taxes | 3,916 | -602 | ||||||||||
Schedule of Revenues by Geographic Area | Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | ||||||||||
U.S. Dollars | ||||||||||||
China and Hong Kong | 28,526 | 25,889 | 25,008 | |||||||||
Taiwan | 17,495 | 14,543 | 11,292 | |||||||||
United States | 12,518 | 11,705 | 9,482 | |||||||||
Asia- Other | 11,336 | 6,072 | 10,739 | |||||||||
Korea | 8,889 | 15,691 | 17,004 | |||||||||
Western Europe | 5,739 | 6,519 | 6,998 | |||||||||
Japan | 3,204 | 4,010 | 2,370 | |||||||||
Rest of the world | 606 | 976 | 1,654 | |||||||||
88,313 | 85,405 | 84,547 | ||||||||||
Selected_Income_Statement_Data1
Selected Income Statement Data (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Selected Income Statement Data [Abstract] | |||||||||
Selected Income Statement Data | A. Selling, general and administrative expenses | ||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
U.S. Dollars | |||||||||
Selling (1) | 14,337 | 13,906 | 13,827 | ||||||
General and administrative | 7,080 | 8,456 | 7,311 | ||||||
21,417 | 22,362 | 21,138 | |||||||
879 | 652 | 1,076 | |||||||
(1) | Including shipping and handling costs | ||||||||
B. Financial income (expenses), net | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
U.S. Dollars | |||||||||
Interest expense | -6 | -181 | -163 | ||||||
Interest income | 77 | 90 | 38 | ||||||
Re-evaluation of contingent consideration | -258 | -858 | 1,037 | ||||||
Re-evaluation expense on liabilities to the OCS | -370 | -504 | -667 | ||||||
Other, net (*) | -663 | -285 | -12 | ||||||
-1,220 | -1,738 | 233 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Taxes [Abstract] | |||||||||||||
Composition of Income (Loss) Before Income Taxes and Income Tax Expense (Benefit) | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
U.S. Dollars | |||||||||||||
Income (loss) before income taxes: | |||||||||||||
Israel | 2,975 | (2,638 | ) | (1,299 | ) | ||||||||
Non-Israeli | 941 | 2,036 | 1,512 | ||||||||||
3,916 | (602 | ) | 213 | ||||||||||
Income tax expense: | |||||||||||||
Current: | |||||||||||||
Israel | 191 | 121 | 44 | ||||||||||
Non-Israeli | 224 | 709 | 398 | ||||||||||
415 | 830 | 442 | |||||||||||
Deferred tax expense (benefit): | |||||||||||||
Israel | 38 | (1,287 | ) | - | |||||||||
Non-Israeli | 126 | (152 | ) | (232 | ) | ||||||||
164 | (1,439 | ) | (232 | ) | |||||||||
579 | (609 | ) | 210 | ||||||||||
Reconciliation of The Theoretical Income Tax Expense (Benefit) | Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
U.S. Dollars | |||||||||||||
Income (loss) before income taxes | 3,916 | -602 | 213 | ||||||||||
Statutory tax rate | 26.50% | 25% | 25% | ||||||||||
Theoretical income tax expense (benefit) | 1,038 | -151 | 53 | ||||||||||
Increase (decrease) in income tax expense resulting from: | |||||||||||||
Tax expense (benefits) arising from “Approved and | |||||||||||||
Beneficiating Enterprises” and preferential tax rate in China | (1,215 | ) | 711 | 492 | |||||||||
Change in valuation allowance(*) | (40 | ) | 586 | -983 | |||||||||
Non-deductible expenses(**) | 55 | 218 | 650 | ||||||||||
Differences between Israeli currency | |||||||||||||
and dollar-adjusted financial statements-net | 952 | -1,133 | 160 | ||||||||||
Purchase price adjustment for contingent liabilities | - | -580 | - | ||||||||||
Foreign tax rate differential | (13 | ) | -101 | 29 | |||||||||
Other | (198 | ) | -159 | -191 | |||||||||
Actual income tax expense (benefit) | 579 | -609 | 210 | ||||||||||
Per share effect of the tax benefits arising from | |||||||||||||
“Approved and Beneficiating Enterprises” and | |||||||||||||
preferential tax rate in China: | |||||||||||||
Basic | $ | (0.04 | ) | $ | 0 | $ | 0.02 | ||||||
Diluted | $ | (0.04 | ) | $ | 0 | $ | 0.02 | ||||||
(*) | In 2014 an amount of $616 is a decrease in valuation allowance in respect to expiration of tax losses and revaluation of the valuation allowance. In addition, Included within the change in valuation allowance are realized benefits of operating loss carryforwards of $42, $68 and $635, for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||
(**) | Including non-deductible share based compensation. | ||||||||||||
Schedule of Deferred Tax Assets and Liabilities | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
U.S. Dollars | |||||||||||||
Deferred tax assets: | |||||||||||||
Allowance for doubtful accounts | 136 | 96 | |||||||||||
Accrued warranty | 114 | 109 | |||||||||||
Unearned revenue | 125 | 151 | |||||||||||
Accrued expenses | 448 | 303 | |||||||||||
Net operating losses (NOL) and tax credit carryforwards | 3,761 | 4,398 | |||||||||||
Other temporary differences* | 334 | 663 | |||||||||||
Total gross deferred tax assets | 4,918 | 5,720 | |||||||||||
Valuation allowance | -2,953 | (3,609 | ) | ||||||||||
Deferred tax asset, net of valuation allowance | 1,965 | 2,111 | |||||||||||
Deferred tax liability: | |||||||||||||
Property, plant and equipment | -216 | (198 | ) | ||||||||||
Net deferred tax assets | 1,749 | 1,913 | |||||||||||
* | Other temporary differences primarily relate to research and development expenses |
Balances_and_Transactions_with1
Balances and Transactions with Related Parties (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Balances and Transactions with Related Parties [Abstract] | ||||||
Schedule of Related Party Balances and Transactions | A. Balances with related parties: | |||||
December 31, | December 31, | |||||
2014 | 2014 | |||||
U.S. Dollars | ||||||
Accounts receivable | 101 | 43 | ||||
Accounts payable | - | 6 | ||||
Due from affiliated companies | 501 | 233 | ||||
B. Transactions with related parties: | ||||||
Year Ended December 31, | ||||||
2014 | 2013 | 2012 | ||||
U.S. Dollars | ||||||
Purchases from Parent and affiliates | 93 | 57 | - | |||
Interest income from Parent | 24 | 4 | 15 | |||
Sales to Parent and affiliated companies | 297 | 347 | 142 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Fair Value Measurements [Abstract] | ||||||||
Schedule of Recurring Fair Value Measurements | Quoted Prices in | Significant | ||||||
Active Markets for | Significant Other | Unobservable | ||||||
December 31, | Identical Assets | Observable Inputs | Inputs | |||||
Description | 2014 | (Level 1) | (Level 2) | (Level 3) | ||||
U.S. Dollars | ||||||||
Liabilities | ||||||||
Foreign currency | ||||||||
derivative contracts | 89 | - | 89 | - | ||||
Contingent consideration | 1,900 | - | - | 1,900 | ||||
Total Liabilities | 1,989 | - | 89 | 1,900 | ||||
Quoted Prices in | Significant | |||||||
Active Markets for | Significant Other | Unobservable | ||||||
December 31, | Identical Assets | Observable Inputs | Inputs | |||||
Description | 2013 | (Level 1) | (Level 2) | (Level 3) | ||||
U.S. Dollars | ||||||||
Assets | ||||||||
Foreign currency | ||||||||
derivative contracts | 7 | - | 7 | - | ||||
Total Assets | 7 | - | 7 | - | ||||
Liabilities | ||||||||
Contingent consideration | 2,030 | - | - | 2,030 | ||||
Total Liabilities | 2,030 | - | - | 2,030 | ||||
Roll-Forward of The Fair Value of Level 3 Liabilities | ||||||||
Level 3 | ||||||||
U.S. Dollars | ||||||||
Contingent | ||||||||
consideration | ||||||||
31-Dec-13 | 2,030 | |||||||
Settlement of liabilities | (268 | ) | ||||||
Revaluation of fair value included in statement of operations | 138 | |||||||
31-Dec-14 | 1,900 | |||||||
Level 3 | ||||||||
U.S. Dollars | ||||||||
Contingent | ||||||||
consideration | ||||||||
31-Dec-12 | 5,303 | |||||||
Settlement of liabilities | (639 | ) | ||||||
Revaluation of fair value included in statement of operations | (2,634 | ) | ||||||
31-Dec-13 | 2,030 | |||||||
Nature_of_Operations_Schedule_
Nature of Operations (Schedule of Details of Impairment) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Impairment [Line Items] | |||
Total | $265 | $440 | |
Reorganization and impairment | 60 | -3,466 | 3,031 |
Cost of Revenues | 47,294 | 51,003 | 47,482 |
Inventory write-off [Member] | |||
Impairment [Line Items] | |||
Cost of Revenues | 205 | 3,052 | |
Impairment charge [Member] | |||
Impairment [Line Items] | |||
Reorganization and impairment | 1,656 | ||
Revaluation of Liabilities [Member] | |||
Impairment [Line Items] | |||
Reorganization and impairment | -106 | -5,122 | |
Other (mainly open orders to suppliers and disposal of fixed asset) | |||
Impairment [Line Items] | |||
Reorganization and impairment | $166 | $854 |
Nature_of_Operations_Narrative
Nature of Operations (Narrative) (Details) (Camtek [Member]) | Dec. 31, 2014 |
Camtek [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 55.48% |
Significant_Accounting_Policie3
Significant Accounting Policies (Annual Rates of Depreciation) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Land [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual rate of depreciation | 1.00% |
Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual rate of depreciation | 2.00% |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual rate of depreciation | 10.00% |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual rate of depreciation | 33.00% |
Computer equipment and software [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual rate of depreciation | 20.00% |
Computer equipment and software [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual rate of depreciation | 33.00% |
Office Furniture and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual rate of depreciation | 6.00% |
Office Furniture and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual rate of depreciation | 20.00% |
Automobiles [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual rate of depreciation | 15.00% |
Cash_and_Cash_Equivalents_Cash
Cash and Cash Equivalents (Cash and Cash Equivalents) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Cash and Cash Equivalents [Line Items] | ||
Cash | $18,220 | $16,495 |
Bank balances [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Cash | 18,130 | 16,405 |
Restricted cash [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Cash | $90 | $90 |
Cash_and_Cash_Equivalents_Curr
Cash and Cash Equivalents (Currencies) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $18,220 | $16,495 | $18,867 | $22,185 |
U.S. Dollars [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 9,576 | 11,015 | ||
New Israeli Shekels [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 2,569 | 1,208 | ||
Euro [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 2,033 | 1,936 | ||
Japanese YEN [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 1,825 | 489 | ||
Chinese RMB [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 1,541 | 1,101 | ||
Other Currencies [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $676 | $746 |
Inventories_Inventories_Detail
Inventories (Inventories) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Inventories [Abstract] | ||||
Components | $10,929 | $11,115 | ||
Work in process | 5,575 | 3,795 | ||
Finished products | 9,622 | [1] | 5,226 | [1] |
Total inventories | 26,126 | 20,136 | ||
Current assets | 24,650 | 17,911 | ||
Long term assets | $1,476 | [2] | $2,225 | [2] |
[1] | including systems at customer locations not yet sold, as of December 31, 2014 and 2013, in the amount of $4,532 and $2,287 respectively. | |||
[2] | Long-term Inventory: At December 31, 2014, $1,476 of the Company's inventory is classified in long-term assets based on Management's estimate and the recent level of sales (at December 31, 2013- $2,225). Of this amount, $1,401 is comprised of spare parts (at December 31, 2013 - $1,353). The Company's policy is to keep components to provide support and service to systems sold by it to its customers over the past years (usually the support is over a period of seven to ten years) until the Company announces it will not continue to support certain systems. Therefore, this inventory is usually consumed over longer periods than inventory held for sale, and as such the respective amount that is not expected to be consumed in the next year is classified as non-current. Management believes that this amount will be utilized according to its forecasted sales. Management believes no loss will be incurred on its disposition. The remaining portion of long-term inventory consists of Functional InkJet Technology (“FIT") components and systems which in Management's estimation will not be sold during the next 12 months. Management believes that according to its forecasted sales this amount will mainly be utilized in 2016. Management believes no loss will be incurred on its disposition. |
Inventories_Narrative_Details
Inventories (Narrative) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Long Term Inventory [Line Items] | ||||
Finished products, Systems at customer locations | $4,532 | $2,287 | ||
Long-term inventory | 1,476 | [1] | 2,225 | [1] |
Spare parts included in noncurrent inventory | 1,401 | 1,353 | ||
Obsolescence provision | 205 | 3,052 | ||
Provision for damages, obsolete, excess and slow-moving inventory | 283 | 540 | ||
Amount of inventory write-down | $488 | $3,592 | ||
Minimum [Member] | ||||
Long Term Inventory [Line Items] | ||||
Customer support, term | 7 years | |||
Maximum [Member] | ||||
Long Term Inventory [Line Items] | ||||
Customer support, term | 10 years | |||
[1] | Long-term Inventory: At December 31, 2014, $1,476 of the Company's inventory is classified in long-term assets based on Management's estimate and the recent level of sales (at December 31, 2013- $2,225). Of this amount, $1,401 is comprised of spare parts (at December 31, 2013 - $1,353). The Company's policy is to keep components to provide support and service to systems sold by it to its customers over the past years (usually the support is over a period of seven to ten years) until the Company announces it will not continue to support certain systems. Therefore, this inventory is usually consumed over longer periods than inventory held for sale, and as such the respective amount that is not expected to be consumed in the next year is classified as non-current. Management believes that this amount will be utilized according to its forecasted sales. Management believes no loss will be incurred on its disposition. The remaining portion of long-term inventory consists of Functional InkJet Technology (“FIT") components and systems which in Management's estimation will not be sold during the next 12 months. Management believes that according to its forecasted sales this amount will mainly be utilized in 2016. Management believes no loss will be incurred on its disposition. |
Other_Current_Assets_Details
Other Current Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Current Assets [Abstract] | ||
Due from Government institutions | $1,013 | $424 |
Prepaid expenses | 584 | 454 |
Advances to suppliers | 361 | 290 |
Deposits for operating leases | 113 | 69 |
Other | 311 | 676 |
Other current assets | $2,382 | $1,913 |
Property_Plant_and_Equipment_N2
Property, Plant and Equipment, Net (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $24,018 | $24,493 | |
Less accumulated depreciation | 10,993 | 10,012 | |
Fixed assets, net | 13,025 | 14,481 | |
Depreciation expenses | 1,937 | 2,166 | 1,640 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 863 | 863 | |
Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 10,286 | 10,245 | |
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 5,943 | 6,504 | |
Office Furniture and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 1,202 | 1,202 | |
Computer equipment and software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 4,602 | 4,566 | |
Automobiles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 65 | 65 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $1,057 | $1,048 |
LongTerm_Restricted_Deposit_De
Long-Term Restricted Deposit (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 31, 2012 |
In Thousands, unless otherwise specified | |||
Long-Term Restricted Deposit [Abstract] | |||
Appeal bond, amount | $729 | $729 | $729 |
Other_Assets_Details
Other Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Assets [Abstract] | ||
Deposits for operating leases | $348 | $339 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets, Net (Goodwill) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill [Line Items] | ||
Goodwill | $3,653 | $3,653 |
Accumulated impairment losses | -2,098 | -2,098 |
Net goodwill | 1,555 | 1,555 |
SELA [Member] | ||
Goodwill [Line Items] | ||
Impairment loss on goodwill | 24 | |
Printar [Member] | ||
Goodwill [Line Items] | ||
Impairment loss on goodwill |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets, Net (Intangible Assets, Net) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill and Intangible Assets, Net [Abstract] | ||
Patent registration costs | $1,959 | $1,805 |
IPR&D | 1,002 | 1,002 |
Technology | 2,854 | 2,854 |
Customer relationships | 45 | 45 |
Intangible assets at cost | 5,860 | 5,706 |
Accumulated amortization and impairment | 4,932 | 4,698 |
Total intangible assets, net | $928 | $1,008 |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets, Net (Estimated Amortization Expense) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense related to intangible assets | $234 | $421 | $485 |
Write-off of patents, net value | 37 | 33 | 28 |
2015 | 176 | ||
2016 | 138 | ||
2017 | 138 | ||
2018 | 138 | ||
2019 | 126 | ||
Total amortization expense | 716 | ||
Impairment of intangible assets | $1,684 | ||
Patent Registration Costs [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated Useful life | 10 years | ||
IP R&D [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated Useful life | 10 years |
Other_Current_Liabilities_Othe
Other Current Liabilities (Other Current Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Other Current Liabilities [Abstract] | ||||
Accrued employee compensation and related benefits | $6,306 | $6,546 | ||
Accrued expenses | 2,146 | 2,291 | ||
Commissions | 2,048 | 2,040 | ||
Current maturities of contingent consideration | 1,900 | [1] | 268 | [1] |
Advances from customers and deferred revenues | 1,416 | 1,985 | ||
Accrued warranty costs | 1,151 | [2] | 1,304 | [2] |
Government institutions | 1,084 | 992 | ||
Current maturities of OCS liability | 228 | [1] | 159 | [1] |
Total other current liabilities | $16,279 | $15,585 | ||
[1] | See also Note 12 – Other long-term liabilities | |||
[2] | Changes in the accrued warranty costs are as follows: |
Other_Current_Liabilities_Chan
Other Current Liabilities (Changes In Product Warranty Obligations) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Current Liabilities [Abstract] | |||
Beginning of year | $1,304 | $1,150 | $1,637 |
New warranties | 2,152 | 2,327 | 2,159 |
Reductions | -2,305 | -2,173 | -2,646 |
Balance at end of year | $1,151 | $1,304 | $1,150 |
Liability_for_Employee_Severan1
Liability for Employee Severance Benefits (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Liability for Employee Severance Benefits [Abstract] | |||
Severance liability | $860 | $858 | |
Severance expenses | $1,145 | $1,081 | $1,104 |
Other_LongTerm_Liabilities_Det
Other Long-Term Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Other Long Term Liabilities [Line Items] | ||||
Liability for contingent consideration in respect of business combinations | [1] | $1,762 | [1] | |
Total other long-term liabilities | 4,150 | 5,758 | ||
OCS [Member] | ||||
Other Long Term Liabilities [Line Items] | ||||
Liability for contingent consideration in respect of business combinations | $4,150 | [2] | $3,996 | [2] |
Sela Acquisition [Member] | OCS [Member] | ||||
Other Long Term Liabilities [Line Items] | ||||
Effective interest rate used in the capitalization of the liabilities to the OCS | 21.00% | 21.00% | ||
Printar [Member] | OCS [Member] | ||||
Other Long Term Liabilities [Line Items] | ||||
Effective interest rate used in the capitalization of the liabilities to the OCS | 11.00% | 10.00% | ||
[1] | In accordance with ASC Topic 820 (Statement 157), the Company's liabilities for contingent consideration in respect of the acquisitions of Printar and SELA (see Note 21) are measured at fair value using Level 3 inputs. See Note 1B for the effect of the Company's decision regarding SELA's future operations. | |||
[2] | Liability to OCS is in respect of the acquisitions of Printar, SELA and new grants received in 2010 and 2009. See Note 1B for the effect of the Company's decision regarding SELA's future operations. The effective interest rate used in the capitalization of the liabilities to the OCS in respect of the acquisitions of Printar and SELA as of December 31, 2014 were 11% and 21%, respectively. (As of December 31, 2013, 10% and 21%, for Printar and SELA, respectively). |
Commitments_and_Contingencies_1
Commitments and Contingencies (Narrative) (Details) (USD $) | 1 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||||
Mar. 26, 2012 | Jan. 31, 2011 | Aug. 28, 2009 | Mar. 31, 2009 | Mar. 11, 2015 | Feb. 09, 2015 | Mar. 31, 2015 | Mar. 31, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 31, 2012 | Aug. 22, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | |
Commitments And Contingencies [Line Items] | ||||||||||||||
Appeal bond, amount | $729,000 | $729,000 | $729,000 | |||||||||||
Liabilities recorded at fair value | 1,989,000 | 2,030,000 | ||||||||||||
Outstanding purchase commitments for inventory components | 9,972,000 | 6,085,000 | ||||||||||||
Rudolph [Member] | ||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||
Litigation awarded value | 1,292,000 | |||||||||||||
Damages paid, value | 646,000 | 6,800,000 | ||||||||||||
Attorney fees | 71,000 | |||||||||||||
Prejudgment interest paid, amount | 1,200,000 | |||||||||||||
Possible range of loss, minimum | 0 | |||||||||||||
Possible range of loss, maximum | 14,500,000 | |||||||||||||
Rudolph [Member] | Subsequent Event [Member] | ||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||
Litigation awarded value | 15,000,000 | 14,500,000 | 15,750,000 | |||||||||||
Litigation previously awarded value | 7,400,000 | |||||||||||||
Damages paid, value | 646,000 | |||||||||||||
Appeal bond, amount | 7,875,000 | 7,875,000 | ||||||||||||
Rudolph [Member] | Unspecified Attorney Fees [Member] | ||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||
Amount of claim filed against the company | 1,200,000 | |||||||||||||
OCS [Member] | ||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||
Percent of sales derived from research and development, committed amount payable | 3.50% | |||||||||||||
Accrued interest | 770,000 | 648,000 | 648,000 | |||||||||||
OCS [Member] | Printar [Member] | ||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||
Grants received including interest accrued | 6,029,000 | 5,810,000 | 598,000 | 598,000 | ||||||||||
Liabilities recorded at fair value | 3,670,000 | 3,303,000 | ||||||||||||
OCS [Member] | Sela Acquisition [Member] | ||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||
Grants received including interest accrued | 2,352,000 | 2,525,000 | ||||||||||||
Liabilities recorded at fair value | $60,000 | $202,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Minimum Future Rental Payments) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments and Contingencies [Abstract] | |||
2015 | $1,558 | ||
2016 | 946 | ||
2017 | 287 | ||
Thereafter | |||
Total | 2,791 | ||
Aggregate office rent expenses | $845 | $1,002 | $979 |
Commitments_and_Contingencies_3
Commitments and Contingencies (Allowance For Doubtful Debts) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments and Contingencies [Abstract] | |||
Balance at beginning of period | $1,361 | $1,323 | $2,227 |
Provision | 344 | 272 | 307 |
Reversal of provision | -164 | -218 | -140 |
Write-off of provision | -15 | -16 | -1,071 |
Balance at end of period | $1,526 | $1,361 | $1,323 |
Concentration_of_Risk_and_Fina2
Concentration of Risk and Financial Instruments (Options) (Details) (USD $) | 12 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 26, 2012 | Mar. 11, 2015 | Feb. 09, 2015 | Mar. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||||||
Loss from derivatives not designated as hedging instruments | ($96) | ($66) | ||||
Rudolph [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Litigation awarded value | 1,292 | |||||
Rudolph [Member] | Subsequent Event [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Litigation awarded value | 15,000 | 14,500 | 15,750 | |||
Foreign Exchange Buy Put Option [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, Notional Amount | 4,250 | |||||
Derivative, Fair Value, Net | 13 | |||||
Foreign Exchange Sell Call Options [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, Notional Amount | 4,250 | |||||
Derivative, Fair Value, Net | ($102) |
Shareholders_Equity_Narrative_
Shareholders' Equity (Narrative) (Details) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2002 | Sep. 30, 2001 | Dec. 31, 2008 | Dec. 31, 2009 | Aug. 31, 2007 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares available for grant | 1,598,800 | |||||||
Vesting period (years) | 4 years | 4 years | ||||||
Stock option terms, years | 10 years | |||||||
Number of shares authorized for grant | 3,000,000 | |||||||
Granted | 296,000 | 75,000 | 134,010 | |||||
Unrecognized share-based compensation expense | $536,000 | |||||||
Share based compensation expense | 308,000 | 380,000 | 401,000 | |||||
Unrecognized compensation cost, recognition period | 3 years 25 days | |||||||
The intrinsic value of options exercised | 190,000 | |||||||
Aggregate intrinsic Value, Outstanding | 205,660 | 813,000 | 42,000 | |||||
Aggregate intrinsic Value, Outstanding, Vested and expected to vest | 87,680 | 275,000 | 0 | |||||
Treasury stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock Repurchase Program, Authorized Amount | 3,000,000 | 2,000,000 | ||||||
Treasury Stock, Shares, Retired | 761,619 | 250,000 | 1,080,757 | |||||
Treasury Stock, Retired, Cost Method, Amount | 401,000 | 592,000 | 905,000 | |||||
Restricted Stock Units (RSUs) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares available for grant | 670,129 | 1,500,000 | 300,000 | |||||
Additional options available for grant | 1,200,000 | |||||||
Share based compensation expense | 0 | 19,000 | 72,000 | |||||
Weighted average grant- date fair value, Vested | $0 | |||||||
Stock Compensation Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share based compensation expense | $308,000 | $361,000 | $329,000 |
Shareholders_Equity_Fair_Value
Shareholders' Equity (Fair Value Assumptions) (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 0.00% | 0.00% |
Expected volatility, minimum | 64.00% | 64.00% |
Expected volatility, maximum | 71.00% | 69.00% |
Risk free interest rate | 1.74% | |
Risk-free interest rate, minimum | 1.67% | |
Risk-free interest rate, maximum | 2.30% | |
Expected life (years) | 6 years 4 months 24 days | |
Vesting period (years) | 4 years | 4 years |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life (years) | 4 years 9 months 18 days | |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life (years) | 6 years 4 months 24 days |
Shareholders_Equity_Share_Opti
Shareholders' Equity (Share Option Activity) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Shareholders' Equity [Abstract] | |||
Outstanding, beginning balance | 735,519 | 1,195,085 | 1,234,199 |
Granted | 296,000 | 75,000 | 134,010 |
Forfeited and cancelled | -108,724 | -174,915 | -173,124 |
Exercised | -88,996 | -359,651 | |
Outstanding, ending balance | 833,799 | 735,519 | 1,195,085 |
Vested at year end | 423,291 | 368,016 | 395,395 |
Vested and expected to vest at December 31, 2014 | 800,958 | ||
Exercisable at December 31, 2014 | 423,291 | ||
Weighted average exercise price, Outstanding, beginning balance | $2.99 | $3.15 | $3.31 |
Weighted average exercise price, Granted | $3.53 | $1.73 | $1.60 |
Weighted average exercise price, Forfeited and cancelled | $2.47 | $2.96 | $3.11 |
Weighted average exercise price, Exercised | $2.14 | $3.26 | |
Weighted average exercise price, Outstanding, ending balance | $3.34 | $2.99 | $3.15 |
Weighted exercise price, Vested at year end | $3.56 | $3.42 | $3.29 |
Weighted average exercise price, Vested and expected to vest at December 31, 2014 | $3.34 | ||
Weighted average exercise price, Exercisable at December 31, 2014 | $3.56 | ||
Weighted average Remaining Contractual term (years), Outstanding | 8 months 23 days | ||
Weighted average Remaining Contractual term (years), Vested and expected to vest | 8 months 23 days | ||
Weighted average Remaining Contractual term (years), Exercisable | 3 years | ||
Aggregate intrinsic Value, Outstanding | $205,660 | $813,000 | $42,000 |
Aggregate intrinsic Value, Outstanding, Vested and expected to vest | 189,200 | ||
Aggregate intrinsic Value, Exercisable | $87,680 | $275,000 | $0 |
Shareholders_Equity_Informatio
Shareholders' Equity (Information About Share Options) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of outstanding options | 833,799 |
Number exercisable | 423,291 |
Weighted average remaining contractual life in years | 7 years 2 months 26 days |
Exercise price 0-2 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price, minimum | 0 |
Exercise price, maximum | 2 |
Number of outstanding options | 155,000 |
Number exercisable | 66,248 |
Weighted average remaining contractual life in years | 7 years 9 months 25 days |
Exercise price 3-5 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price, minimum | 3 |
Exercise price, maximum | 5 |
Number of outstanding options | 668,799 |
Number exercisable | 347,043 |
Weighted average remaining contractual life in years | 7 years 2 months 8 days |
Exercise price 6-7 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price, minimum | 6 |
Exercise price, maximum | 7 |
Number of outstanding options | 10,000 |
Number exercisable | 10,000 |
Weighted average remaining contractual life in years | 1 year 6 months 29 days |
Shareholders_Equity_Informatio1
Shareholders' Equity (Information About Nonvested Options) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Options | |||
Beginning balance | 367,503 | ||
Granted | 296,000 | 75,000 | 134,010 |
Vested | -164,254 | ||
Forfeited | -88,741 | ||
Ending balance | 410,508 | 367,503 | |
Weighted average grant- date fair value | |||
Beginning balance | $1.32 | ||
Granted | $1.82 | ||
Vested | $1.88 | ||
Forfeited | $1.21 | ||
Ending balance | $1.48 | $1.32 |
Earnings_Per_Ordinary_Share_De
Earnings Per Ordinary Share (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Ordinary Share [Abstract] | |||
Net income attributable to Ordinary Shares | $3,337 | $7 | $3 |
Weighted average number of Ordinary Shares outstanding used in basic earnings per Ordinary Share calculation | 30,464 | 30,040 | 29,849 |
Add assumed exercise of outstanding dilutive potential Ordinary Shares | 81 | 54 | 164 |
Weighted average number of Ordinary Shares outstanding used in diluted earnings per Ordinary Share calculation | 30,545 | 30,094 | 30,013 |
Basic income per Ordinary Share | $0.11 | $0 | $0 |
Diluted income per Ordinary Share | $0.11 | $0 | $0 |
Number of options excluded from the diluted earnings per share calculation due to their anti-dilutive effect | 391 | 526 | 976 |
Segment_Information_Narrative_
Segment Information (Narrative) (Details) | 3 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2013 | |
item | item | |
Segment Information [Abstract] | ||
Number of reporting segments | 2 | 1 |
Segment_Information_Summary_of
Segment Information (Summary of operating results of business segment) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Segment Reporting Information | ||||
Revenues | $88,313 | $85,405 | $84,547 | |
Income (loss) from operations | 5,136 | 1,136 | -20 | |
Operating Segment [Member] | ||||
Segment Reporting Information | ||||
Revenues | 88,313 | 85,405 | 84,547 | |
Income (loss) from operations | 7,500 | 4,017 | [1] | |
PCB [Member] | Operating Segment [Member] | ||||
Segment Reporting Information | ||||
Revenues | 30,480 | 31,803 | 29,398 | |
Income (loss) from operations | -2,422 | -1,588 | [1] | |
Microelectronics [Member] | Operating Segment [Member] | ||||
Segment Reporting Information | ||||
Revenues | 57,833 | 53,602 | 55,149 | |
Income (loss) from operations | $9,922 | $5,605 | [1] | |
[1] | It is impracticable to present 2012 income (loss) from operations by segment due to lack in internal management reporting system. |
Segment_Information_Summary_of1
Segment Information (Summary of reconciliation of segment operating results) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income from operations | $5,136 | $1,136 | ($20) | |
Share-based compensation expenses | 308 | 380 | 401 | |
Consolidated income (loss) before taxes | 3,916 | -602 | 213 | |
Operating Segment [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income from operations | 7,500 | 4,017 | [1] | |
Unallocated general and administrative expenses | 2,056 | 2,501 | ||
Share-based compensation expenses | 308 | 380 | ||
Financial expenses | 1,220 | 1,738 | ||
Consolidated income (loss) before taxes | $3,916 | ($602) | ||
[1] | It is impracticable to present 2012 income (loss) from operations by segment due to lack in internal management reporting system. |
Segment_Information_Schedule_o
Segment Information (Schedule of Revenues by Geographic Area) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $88,313 | $85,405 | $84,547 |
China and Hong Kong [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 28,526 | 25,889 | 25,008 |
Taiwan [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 17,495 | 14,543 | 11,292 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 12,518 | 11,705 | 9,482 |
Asia-Other [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 11,336 | 6,072 | 10,739 |
Western Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 5,739 | 6,519 | 6,998 |
Japan [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 3,204 | 4,010 | 2,370 |
Rest of the world [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 606 | 976 | 1,654 |
Korea [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $8,889 | $15,691 | $17,004 |
Selected_Income_Statement_Data2
Selected Income Statement Data (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Selected Income Statement Data [Line Items] | ||||||
Selling | $14,337 | [1] | $13,906 | [1] | $13,827 | [1] |
General and administrative | 7,080 | 8,456 | 7,311 | |||
Total selling, general and administrative expenses | 21,417 | 22,362 | 21,138 | |||
Shipping and handling costs | 879 | 652 | 1,076 | |||
Interest expense | -6 | -181 | -163 | |||
Interest income | 77 | 90 | 38 | |||
Re-evaluation of contingent consideration | -258 | -858 | 1,037 | |||
Re-evaluation expense on liabilities to the OCS | -370 | -504 | -667 | |||
Other, net | -663 | [2] | -285 | [2] | -12 | [2] |
Financial income (expenses), net | -1,220 | -1,738 | 233 | |||
Foreign currency income (expense), transactions not denominated in U.S. Dollars | ($546) | ($188) | $84 | |||
[1] | Including shipping and handling costs | |||||
[2] | Other, net includes foreign currency income (expense) resulting from transactions not denominated in U.S. Dollars amounting to $(546), $(188), and $84 in 2014, 2013 and 2012, respectively. |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Loss Carryforwards [Line Items] | |||
Deferred tax assets valuation allowance | $2,953 | $3,609 | |
Net change in total valuation allowance | -656 | -1,532 | -983 |
Major foreign subsidiaries NOL | 1,569 | ||
The Company and its subsidiaries in Israel NOL carryforwards, aggregate amount | 58,894 | ||
Deferred tax assets relating to net operating losses and other carryforwards, not subject to expiration | 1,009 | ||
Deferred tax assets relating to net operating losses and other carryforwards, subject to expiration | 550 | ||
Maximum period for which NOL carryforwards can be utilized | 20 years | ||
Effective income tax rate | 26.50% | 25.00% | 25.00% |
Undistributed earnings of foreign subsidiaries | 14,826 | ||
Approved Enterprise [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax-exempt earnings | 18,400 | ||
Contingent income tax liabilities, Dividend distribution | 4,600 | ||
Beneficiating Enterprise [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax-exempt earnings | 9,800 | ||
Contingent income tax liabilities, Dividend distribution | $2,450 |
Income_Taxes_Composition_of_In
Income Taxes (Composition of Income (Loss) Before Income Taxes and Income Tax Expense (Benefit)) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Abstract] | |||
Income (loss) before income taxes: Israel | $2,975 | ($2,638) | ($1,299) |
Income (loss) before income taxes: Non-Israeli | 941 | 2,036 | 1,512 |
Income (loss) before income taxes | 3,916 | -602 | 213 |
Income tax expense, Current: Israel | 191 | 121 | 44 |
Income tax expense, Current: Non-Israeli | 224 | 709 | 398 |
Current Income Tax Expense, Total | 415 | 830 | 442 |
Deferred tax expense (benefit): Israel | 38 | -1,287 | |
Deferred tax expense (benefit): Non-Israeli | 126 | -152 | -232 |
Deferred Income Tax Expense (Benefit), Total | 164 | -1,439 | -232 |
Actual income tax expense (benefit) | $579 | ($609) | $210 |
Income_Taxes_Income_Taxes_Incl
Income Taxes (Income Taxes Included in The Statement of Operations) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Income Taxes [Abstract] | ||||||
Statutory tax rate | 26.50% | 25.00% | 25.00% | |||
Theoretical income tax expense (benefit) | $1,038 | ($151) | $53 | |||
Tax expense (benefits) arising from ''Approved and Beneficiating Enterprises'' and preferential tax rate in China | -1,215 | 711 | 492 | |||
Change in valuation allowance | -40 | [1] | 586 | [1] | -983 | [1] |
Non-deductible expenses | 55 | [2] | 218 | [2] | 650 | [2] |
Differences between Israeli currency and dollar-adjusted financial statements-net | 952 | -1,133 | 160 | |||
Purchase price adjustment for contingent liabilities | -580 | |||||
Foreign tax rate differential | -13 | -101 | 29 | |||
Other | -198 | -159 | -191 | |||
Actual income tax expense (benefit) | 579 | -609 | 210 | |||
Per share effect of the tax benefits arising from ''Approved and Beneficiating Enterprises'' and preferential tax rate in China: Basic | ($0.04) | $0 | $0.02 | |||
Per share effect of the tax benefits arising from ''Approved and Beneficiating Enterprises'' and preferential tax rate in China: Diluted | ($0.04) | $0 | $0.02 | |||
Decrease in tax expense in respect to a change in the effective tax rate from Beneficiary enterprise | 616 | |||||
Net operating loss carry forwards | $42 | $68 | $635 | |||
[1] | In 2014 an amount of $616 is a decrease in valuation allowance in respect to expiration of tax losses and revaluation of the valuation allowance. In addition, Included within the change in valuation allowance are realized benefits of operating loss carryforwards of $42, $68 and $635, for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||
[2] | Including non-deductible share based compensation. |
Income_Taxes_Income_Taxes_Incl1
Income Taxes (Income Taxes Included in The Balance Sheet) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Deferred tax assets: | ||||
Allowance for doubtful accounts | $136 | $96 | ||
Accrued warranty | 114 | 109 | ||
Unearned revenue | 125 | 151 | ||
Accrued expenses | 448 | 303 | ||
Net operating losses (NOL) and tax credit carryforwards | 3,761 | 4,398 | ||
Other temporary differences | 334 | [1] | 663 | [1] |
Total gross deferred tax assets | 4,918 | 5,720 | ||
Valuation allowance | -2,953 | -3,609 | ||
Deferred tax asset, net of valuation allowance | 1,965 | 2,111 | ||
Deferred tax liability: | ||||
Property, plant and equipment | -216 | -198 | ||
Net deferred tax assets | $1,749 | $1,913 | ||
[1] | Other temporary differences primarily relate to research and development expenses |
Balances_and_Transactions_with2
Balances and Transactions with Related Parties (Details) (Affiliated Entity [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Affiliated Entity [Member] | |||
Related Party Transaction [Line Items] | |||
Accounts receivable | $101 | $43 | |
Accounts payable | 6 | ||
Due from affiliated companies | 501 | 233 | |
Purchases from Parent and affiliates | 93 | 57 | |
Interest income from Parent | 24 | 4 | 15 |
Sales to Parent and affiliated companies | $297 | $347 | $142 |
Interest rate, related party | 5.50% | 5.50% | 5.50% |
Fair_Value_Measurements_Assets
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivative contracts | $7 | |
Total Assets | 7 | |
Foreign currency derivative contracts | 89 | |
Contingent consideration | 1,900 | 2,030 |
Total Liabilities | 1,989 | 2,030 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivative contracts | ||
Total Assets | ||
Foreign currency derivative contracts | ||
Contingent consideration | ||
Total Liabilities | ||
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivative contracts | 7 | |
Total Assets | 7 | |
Foreign currency derivative contracts | 89 | |
Contingent consideration | ||
Total Liabilities | 89 | |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivative contracts | ||
Total Assets | ||
Foreign currency derivative contracts | ||
Contingent consideration | 1,900 | 2,030 |
Total Liabilities | $1,900 | $2,030 |
Fair_Value_Measurements_RollFo
Fair Value Measurements (Roll-Forward of The Fair Value of Level 3 Liabilities) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Level 3 Liabilities, Beginning Balance | $2,030 | $5,303 |
Settlement of liabilities | -268 | -639 |
Revaluation of fair value included in statement of operations | 138 | -2,634 |
Level 3 Liabilities, Ending Balance | 1,900 | 2,030 |
Printar [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Weighted average cost of capital, percent | 28.00% | |
Contingent consideration | 2,000 | |
Total purchase consideration | $2,500 | |
Sela Acquisition [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Weighted average cost of capital, percent | 21.00% |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 1 Months Ended | 0 Months Ended | 1 Months Ended | ||||
In Thousands, unless otherwise specified | Mar. 26, 2012 | Mar. 11, 2015 | Feb. 09, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 31, 2012 |
Subsequent Event [Line Items] | |||||||
Appeal bond, amount | $729 | $729 | $729 | ||||
Rudolph [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Litigation awarded value | 1,292 | ||||||
Subsequent Event [Member] | Rudolph [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Litigation awarded value | 15,000 | 14,500 | 15,750 | ||||
Appeal bond, amount | $7,875 | $7,875 |